UK investigators probe S.Africa-BAE arms deal-report

By Staff
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Google Oneindia News

LONDON, Jan 6 (Reuters) Britain's Serious Fraud Office (SFO) is investigating payments made by BAE Systems (BA.L) to a South African defence ministry official over a 1.5-billion-pound contract won by the arms maker in 1999, the Guardian reported today.

The newspaper said South Africa's organised crime unit, the Scorpions, was handling an SFO request to investigate Fana Hlongwane's financial accounts over the deal.

Hlongwane is a former special adviser to the then South African defence minister, Joe Modise, who died in 2001.

The supply of Hawk jets in 1999 was part of a 4.7-billion-dollar South African re-armament programme that has been dogged by corruption allegations.

In the past, South Africa's government and ruling African National Congress has rejected allegations of corruption over the contract to supply the Hawk jets.

In December a two-year SFO corruption inquiry into a multi-billion-pound defence deal with Saudi Arabia was dropped after the British government warned the investigation could undermine national security.

It followed reports that Saudi Arabia had warned Britain it might cancel an order for 72 Eurofighter Typhoon jets from BAE Systems over the inquiry into past dealings involving Saudi officials and people working on behalf of BAE.

The British government's top lawyer, Lord Goldsmith, had said there was no guarantee the investigation, which would take another 18 months to complete, would lead to prosecution.

REUTERS AB KP1810

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