Publication: Business Day Issued: Date: 2001-11-27 Reporter: Linda Ensor Editor:

Fakie has Explaining to do in Parliament


Publication  Business Day
Date 2001-11-27
Reporter Linda Ensor
Web Link


Cape Town - Auditor-general Shauket Fakie will face a barrage of opposition party questions when he appears before Parliament's public accounts committee meeting with the other agencies involved in the arms deal probe next week.

Fakie is alleged to have accepted changes to the wording of his review of the special defence package that was suggested by the suspended defence force acquisitions chief, Chippy Shaik.

The special review, which was tabled in Parliament last year, was the basis on which the public accounts committee decided to institute a further investigation into the arms deal.

According to the Mail & Guardian, Fakie, in compliance with the Special Defence Account Act, showed a draft copy of the review to the executive. He did the same with the draft report of the investigating agencies.

However, Fakie allegedly also showed Shaik a copy of the draft audit review. Shaik is said to have requested that the sentence, "The SA navy expressed its preference for the CI (system)" be altered to "Although the SA navy appreciated the technical potential offered by the CI system, this was outweighed by the risk-driven cost".

Fakie allegedly complied in large measure with this request.

The investigating agencies found that Shaik had acted out of conflict of interest in awarding the contract to Detexis, in which his brother, Shabir Shaik, had indirect interests, rather than to CI.

Public accounts committee chairman Gavin Woods found the allegations "very alarming" and said Fakie had to explain to Parliament and the public why Shaik was shown the review.

With acknowledgement to Linda Ensor and Business Day.