Publication: Business Report Issued: Date: 2007-10-31 Reporter:

Feinstein is Still Seeking Honest Answers from BAE

 

Publication 

Business Report

Date 2007-10-31

Web Link

www.busrep.co.za

 


Former ANC MP Andrew Feinstein, who is now a London businessman, writes in After the Party, his book mainly about the arms deal, that the Campaign Against the Arms Trade bought him a share in BAE Systems to enable him to attend the company's annual general meeting (AGM) in 2002, a year after he had resigned as an MP.

This enabled Feinstein to be acknowledged by then BAE chairman Richard Evans, so he could ask whether the board "didn't feel it was ever so slightly unethical" to provide a R5 million donation to a charitable trust, of which South Africa's then defence minister, Joe Modise, was life president, at the time when tenders for fighter and trainer jets were being considered. BAE won the contract with Saab.

Evans responded that he knew nothing about the donation.

A year later, in the Guardian newspaper, BAE admitted to funding the MK Military Veterans Association "to demonstrate that we wish to be good corporate citizens *1 doing business in South Africa".

At the AGM last June, Feinstein asked what a £75 million (R1 billion) entry for commissions was used for. New chairman Dick Olver refused to give an assurance that money had not found its way into the hands of any South African defence department official, politician or political party *2.

Feinstein suggests there was nothing wrong with making significant sums of money, but the public sector "is not the place to do it". It was also inappropriate for President Thabo Mbeki to praise Modise - who took over the chairmanship of Conlog, which benefited within weeks from the arms deal - at his funeral. It sent the wrong message.

Where does this leave us? While Feinstein left parliament due to reasons of conscience, his questions outside of the institution are still valuable, and pertinent. But it is unlikely that his advice will be heeded, especially as he is now outside of the body where a difference can be made.

It's a bit like the day after a party: one feels a little fuzzy about whether Feinstein's book will make much difference *2. Business will probably go on as usual, with firms arguing that they are doing all the things they do *1 "as good corporate citizens".

With acknowledgements to Business Report.



*1       "Good" corporate citizens filling the feed troughs for the *2 department official, politician and/or political party.


*2      It will make a difference if every right thinking South African, plus a few Britains, plus a few Swedes, plus a few Germans (is it too much to expect a few French), buy Feinstein's book, reads it and gets thoroughly upset - and then gives their vote to a political party which is not entirely convoluted in corruption.