AM Moolla Denies Link to Arms Deal
|Reporter||Farouk Chothia, Sapa|
DURBAN-based AM Moolla Group CEO Yusuf Vahed has vehemently denied that Kingsgate Clothing was used to siphon money to politicians involved in the multibillion-rand arms deal.
Vahed said yesterday his company had asked its auditors earlier to check allegations which appeared in Noseweek magazine. They found there was "no trace of any receipts originating from Maputo, nor payments relating to Conlog or (former defence minister) Joe Modise". Business Day reported yesterday that Modise and Water Affairs and Forestry Minister Ronnie Kasrils are among six high-ranking ANC members being investigated over alleged irregularities in the arms deal.
It is understood that the other four being investigated are Denel deputy CEO and former ANC chief whip Max Sisulu; current chief whip Tony Yengeni; the chairman of Parliament's defence committee, Ntsiki Mashimbye; and defence department arms procurement chief Chippy Shaik.
Noseweek claimed that Modise borrowed R40m from a friend in Germany to buy shares in Conlog, which had "interests" in the arms package. It said the friend sent the money "via Mozambique to Kingsgate Clothing rather than to Modise's account".
Modise said the allegations were "gossip". Kasrils and Yengeni have denied involvement in any irregularities. Kingsgate's bankers agreed "no money went through" its accounts in relation to the arms deal.
With acknowledgement to Farouk Chothia, Sapa and Business Day.