Review of arms deal spin-offs stays under wraps

A recent survey of benefits South Africa may have gained through the offsets, or non-military industrial investments by successful bidders in the multibillion-rand arms deal, will remain under wraps, according to Trade and Industry Minister Rob Davies.

He claimed the matter was sub judice as a commission of inquiry under Judge Willie Seriti probing possible fraud, corruption, impropriety and irregularities in the strategic arms procurement package was under way.

“The Department of Trade and Industry will therefore not table this matter before the parliamentary portfolio committee until such time that it is legally possible to do so,” Davies wrote to DA MP David Maynier, who had requested a copy of the review.

The department’s project-by-project performance review of potential positive spin-offs of the deal started last year amid pressure in the parliamentary committee about the actual benefits of such spin-offs.

It was meant to be completed at the end of September and tabled in Parliament.

Since President Jacob Zuma established the commission into the arms deal in September 2011, costs have ballooned from the initial R29.9 billion in 1999 to R43bn in 2001 and an estimated R70bn today – after a constitutional challenge by anti-armaments campaigner Terry Crawford-Browne.

The commission has been slow and controversial amid claims that senior officials resigned over undue influence.

Questions about the actual benefits from industrial investments – at one stage proposals included a condom factory, alongside tens of thousands of new jobs – were raised soon after the arms deal was signed.

Maynier said on Tuesday it had already emerged that only 13 690 new jobs had been created, not the promised 65 000, and that investment of just R6bn, rather than the promised R110bn, had materialised.

”The minister seems to have got cold feet and has now effectively buried the final report at the Arms Procurement Commission.”He would write to Judge Seriti to find out if the DTI had submitted its performance review to the commission.

“It is imperative to access the final report, not least to assist in the cross-examination of… officials who were responsible for implementing the arms deal offset programme at the DTI,” said Maynier, who has been subpoenaed to appear before the arms deal commission.

The department did not respond to requests for comment.

The issue of job creation and investment spin-offs from the arms deal is controversial.

During a parliamentary trade and industry committee meeting in March last year, it emerged several arms deal contractors fell far short of their investment obligations.