SA arms deal to cost R70bn: report

2011-04-10 15:21

Johannesburg - By the end of the year, South Africa's arms deal will have cost taxpayers R70bn, according to a City Press report.

This exceeded what government had been telling the public.

New information obtained was being published in a forthcoming book by former ANC MP and arms deal activist Andrew Feinstein showed that the country paid more than R70bn to buy warships, fighter jets and other arms equipment.

Lead researcher on the book, Paul Holden, told the newspaper that the figure was calculated by using the defence department's budget vote of 2008, which provided a breakdown of costs to date, as well as projected future costs of the deal until 2011.

"At the time, the stated cost to 2008 was R43bn, with a further R4.3bn to be sent by 2011.

"Unfortunately, the R4.3bn is not set in stone due to exchange rate fluctuations," Holden said.

Taking this into consideration, the cost was adjusted to R47.8bn by this year.

Holden said this was only the "stated cost" and did not include the series of "hidden costs associated with the particular, this figure did not include the financing costs.

In January Defence Minister Lindiwe Sisulu told parliament that the deal would cost a total of R47.2bn but this excluded the financing costs.

Holden said the total amount could still increase if the value of the maintenance contracts for the jets, ships, submarines and helicopters were calculated.

"Taking this into account, we can see why the defence budget has been creaking so much recently," he said.

Sisulu's department was not immediately available for comment.

  • Shumba - 2011-04-10 13:40

    What the hell does SA possibly need submarines for? honestly?

      8TcH - 2011-04-13 15:51

      so that da minister can get commision! That and shooting the bastards stealing our feeesh!

  • BigMoose - 2011-04-10 14:19

    This does not include the repairs to the cooked electrical system on the submarine SAS Manthatisi.

  • louis - 2011-04-10 14:26


  • semaj - 2011-04-10 14:28

    Financing charges? sounds more like backhand handouts to me

  • Nasdaq7 - 2011-04-10 14:35

    And how much money did we get back in investment?

  • GT - 2011-04-10 14:35

    The Germans, Brits, Shaik bros and Fana Hlogwane are all slapping their chubby little thighs whilst rolling around in the piles of cash extorted from this country. Siphiwe Nyanda has still not been charged for corruption even though clear evidence of bribery has been presented. Stinks, all of it. To the core. You can smell it from anywhere. FROM THE MG "Since the late 1990s, Fana Hlongwane has gorged himself on the delights of the arms deal. The defence minister's special adviser-turned-middleman for arms supplier BAE Systems received over R200-million in "consultancy" fees, but he could not retrieve tens of millions from Liechtenstein, where it had been frozen in the course of international bribery investigations. Hlongwane was given the opportunity to dig into the cookie jar in March this year when national prosecutions boss Menzi Simelane controversially ordered the Asset Forfeiture Unit to abandon a preservation order that would have allowed authorities in Liechtenstein to maintain the freeze pending further investigation."

      Nkunzi - 2011-04-10 21:27

      Fana Hlongwane - now there's a name we haven't heard for a while! I do wonder what he's been up to, apart from creating those false companies with 'real bank accounts' and 'crony directors' in tax havens around the world. The fat cats sure owe him a lot! Untraceable billions! I'm afraid the case might as well be closed...........

  • kidblack - 2011-04-10 15:16

    how can you entrust a billion rand defense budget to people who cannot even string a basic equation together?

  • dachshund118 - 2011-04-10 15:55

    Adieu, Republica Banania!!! Goodbye Banana Republic!!!

  • edvermaak - 2011-04-10 15:56

    More lies by the ANC - nothing left in them to trust I guess.

  • The Wonderer - 2011-04-10 16:07

    I would love to know about the "hidden" costs...?? The fine print that's not printed but spoken amongst those involved in the procurement of the deal...

  • Vaal Donkie - 2011-04-10 16:15

    You'd think a country that works so hard to disarm its people won't need arms deals.

  • Jeff - 2011-04-10 16:24

    Africa doing what it does best war, corruption, poverty....

  • bb - 2011-04-10 17:44

    That money could have fed a few hungry children.

  • Glad - 2011-04-10 20:22

    Wait for our good neighbor Mugabe to come knocking, then you will be very happy we do have them, with a growing nation, you need a growing army, healthcare, infrastructure, education (schools), etc. It is part of planning for the growth of a nation, this subject matter will be debatable until we die. If you wish to debate this subject, you would need a more focused platform. Now those contracts for all areas would be half of what they are stated as now, if the cost of paying off gatekeepers was not included.

  • nonduplume - 2011-04-10 23:18

    People need to band together and institute a class action agains this gov. Not by any stretch of the imagination is it doing what is was elected to do. Corruption is rife in any dept you pick. Defence - R800m om jets for Very Important Pricks. Social Welfare - BOSSASA. Home Affairs - Robert Gumede. Police - Shabanga Roux. Traditional Affairs - minister visits chick in Switzeralnd at taxpayers expense. Education - dodgy textbook deal. Etc etc etc!

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