Business Maverick, Africa, Politics

BAE Systems to court for corruption

By Branko Brkic 2 October 2009

The tantalising prospect that the truth about the SA arms deal will finally become known took a tiny step closer yesterday, with the decision by British prosecutors to file corruption charges against BAE Systems.

The decision follows what appears to have been stand-off between the UK’s Serious Fraud Office (SFO) and BAE Systems, Europe’s biggest weapons maker, after the company rejected a plea bargain to resolve allegations it paid bribes in Eastern Europe and Africa to win contracts.

BAE Systems has in the past, like many other arms companies, adopted a kind of “lock-down” policy, in which it admits nothing and attempts to ride out the allegations – often a very successful strategy. In the rare situations prosecutions actually loom, frantic lobbying of politicians is the normal tactic, and that often works too.

BAE used this tactic successfully when Tony Blair’s government forced the SFO to halt its investigation into BAE’s Saudi arms deals. But this time the characters have changed, and there is much more pressure on the UK.

Since the Organisation for Economic Co-operation and Development Anti-Bribery Convention came into force in 1999, the US has brought 103 cases, Germany more than 40, France 19. But the UK has brought just one.

The SFO director Richard Alderman is now reportedly in more determined mood, but Alderman needs the formal assent of the attorney general Lady Scotland, although by chance, her power to make this decision is due to be scrapped.

The SFO began investigating payments made by BAE to a South African defence ministry official Fana Hlongwane, over the roughly R10-billion Hawk programme. Hlongwane was a former special adviser to the then South African defense minister, Joe Modise, who has since died. The supply of Hawk jets in 1999 was part of a $4.7-billion South African re-armament program.

Read more: Guardian, Daily Telegraph, BBC News

Gallery

Watch Pauli van Wyk’s Cat Play The Piano Here!

No, not really. But now that we have your attention, we wanted to tell you a little bit about what happened at SARS.

Tom Moyane and his cronies bequeathed South Africa with a R48-billion tax shortfall, as of February 2018. It's the only thing that grew under Moyane's tenure... the year before, the hole had been R30.7-billion. And to fund those shortfalls, you know who has to cough up? You - the South African taxpayer.

It was the sterling work of a team of investigative journalists, Scorpio’s Pauli van Wyk and Marianne Thamm along with our great friends at amaBhungane, that caused the SARS capturers to be finally flushed out of the system. Moyane, Makwakwa… the lot of them... gone.

But our job is not yet done. We need more readers to become Maverick Insiders, the friends who will help ensure that many more investigations will come. Contributions go directly towards growing our editorial team and ensuring that Daily Maverick and Scorpio have a sustainable future. We can’t rely on advertising and don't want to restrict access to only those who can afford a paywall subscription. Membership is about more than just contributing financially – it is about how we Defend Truth, together.

So, if you feel so inclined, and would like a way to support the cause, please join our community of Maverick Insiders.... you could view it as the opposite of a sin tax. And if you are already Maverick Insider, tell your mother, call a friend, whisper to your loved one, shout at your boss, write to a stranger, announce it on your social network. The battle for the future of South Africa is on, and you can be part of it.


Comments

Please note you must be a Maverick Insider to comment. Sign up here or if you are already an Insider.

BUSINESS MAVERICK - HEALTH

High noon for Tiger Brands as summons issued in listeriosis class action lawsuit

By Ray Mahlaka