A Durban-based clothing company alleged to be the secret conduit of funds in respect of arms-deal corruption claims, on Tuesday placed a newspaper advertisement in a bid to clear its name. 

"There is no truth or substance in these allegations which are vexatious and mischievous in the extreme," the AM Moolla/Kingsgate Clothing group advertisement states. "The company's auditors and bankers have carried out independent investigations and reported in writing that no such movement of funds through the books or bank account of the company has ever taken place." 

Sad and Disappointing 

It was sad and disappointing that a company with a 47-year history in the clothing industry should become the target of vicious rumours which were devoid of truth and foundation, the advertisement says. 

"The company obviously reserves its rights to seek the necessary redress in the appropriate courts of law in respect of any and all damages that it has suffered arising from such allegations." 

It has been alleged that former defence minister Joe Modise had money transferred from Mozambique to his bank account via the AM Moolla account. Modise has also denied involvement in any corruption, and has threatened legal action. 

His lawyers are trying to get an apology and retraction from Noseweek, which last year published that Modise, now a businessman, received an "interest-free" loan of R40-million from a friend in Germany soon after he retired as defence minister on June 16 1999. 

Do everything in his power to defend his reputation

Noseweek alleged Modise used it to buy shares in Conlog, "a company with extensive interests in the overall armaments package". 

Modise, who signed a draft agreement with a German consortium to supply three submarines three days before stepping down as minister, is now the chairperson of Conlog, and a black empowerment company, Labat. 

Modise has dismissed the allegations against him as "lies and gossip". 

Meanwhile, the Business Day reported on Tuesday that lawyers representing Water Affairs Minister Ronnie Kasrils - who it said was among six high-ranking ANC members under investigation for arms-deal irregularities - had established that Kasrils was not being investigated. 

Former ANC chief whip and Denel deputy CEO Max Sisulu, who was also named as among those under investigation, also denied the allegations. Sisulu, who was overseas at the time the claims were published, told the newspaper on Tuesday these were baseless. 

He would do everything in his power to defend his reputation. 

"I have not spent my whole life in the struggle against injustice to now engage in activities that would besmirch the reputation, integrity and achievements of the ANC, our democratic government and the family to which I belong," he said. - Sapa 

With acknowledgement to Angela Quintal, Sapa and Business Day.