UK Audit firm launches new arms deal probe
Politicians, business leaders set to be named
Nov 7, 2010 12:00 AM, TimesLive
Subashni Naidoo & Monica Laganparsad
South African politicians and businessmen who pocketed R1-billion from the arms deal are set to be named in a new investigation by Britain's auditing watchdog.
The Accountancy and Actuarial Discipline Board (AADB) is to investigate KPMG, which advised BAE Systems on offshore companies that were used to pay "commissions" to influence the awarding of lucrative contracts in South Africa's R47.4-billion defence procurement package.
Controversial businessman Fana Hlongwane, who was an adviser to then-defence minister Joe Modise when the arms deal was initiated, will be a key figure in the latest probe.
It follows an investigation in the UK and Liechtenstein into alleged payments of more than R200-million by BAE to him.
The company, which has also been under investigation by Britain's Serious Fraud Office (SFO) since 2007 for issuing bribes in South Africa, recently "settled" a £286-million fine for failing to comply with global anti-bribery rules.
The boardhas initiated the latest probe after corruption cases related to the arms deal were mysteriously dropped by South Africa's Hawks unit in September.
The audit, which will involve scrutiny of KPMG's confidential records, is set to reveal substantial financial evidence - and disclose the names of influential individuals - who, in exchange for cash, helped BAE supply Hawk trainer aircraft and Gripen fighter jets to South Africa for $2.1-billion.
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