The Cape High Court will hear an application in March by the South African branch of Economists Allied for Arms Reduction (ECAAR-SA) for nullification of the loan agreements signed by Finance Minister Trevor Manuel which gives effect to the arms deal.

The case would be heard in the Cape High Court on March 19 and 20, ECAAR-SA representative Terry Crawford-Browne said on Monday.

ECAAR-SA has argued that the multi-billion arms deal is strategically, economically and financially irrational, and is therefore unconstitutional.

It failed the tests set out in Sections 195 and 217 governing public administration and procurements, Crawford-Browne said.

The deal also limited the ability of the government to meet the commitments to social and economic rights established in chapter two of the Constitution, as the costs of the deal had already escalated from R30-billion to a recent estimate of R67-billion.

With acknowledgements to Sapa and www.iafrica.co.za