Publication: Business Day Issued: Date: 2003-11-11 Reporter: Chantelle Benjamin

Arms Case Threat to SA Navy's Corvette Tests



Business Day

Date 2003-11-11


Chantelle Benjamin

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Losing arms-deal bidder Richard Young will launch an urgent application in the Cape High Court today to prevent the installation in a new navy corvette of radar equipment which he claims he has not been paid for in full.

Young's company, CI, sold the equipment to Reutech Radar Systems . If his application is successful, the testing of the new corvette will be delayed and Reutech's efforts to break into the global market may be delayed.

Reutech, a joint venture between Reunert, DaimlerChrysler Aerospace and Kgorong Investment Holdings, won a R230m contract to install radar tracking systems in the navy's new corvettes, which were acquired as part of the controversial arms deal. The first of the vessels arrived in SA last week, and will now start being fitted out with combat and radar systems.

CI won a contract from Reutech to design, construct, test and deliver "subsystems" consisting of eight tracker consoles and the software to operate them.

In papers before the court, Young said his company would lose its claim to ownership of the products once they had been installed in the corvettes.

"Once the consoles and their firing pedals are installed on the corvettes the said products will adhere to the vessels and CI's right to assert its right as owner will be frustrated."

Young is also suing government for R150m after he lost a subcontract for combat suites.

With acknowledgements to Chantelle Benjamin and the Business Day.