Loopy da Duisberg loop

This week I read the Sunday Times story, “Another bomb drops on the dodgy arms deal”, I assimilated and digested but didn’t seem to learn anything.

I discovered a few new titbits, but learn, nope?

That got me thinking, what’s the purpose of reading all these damned depressing news articles or the papers at all?

I decided to justify the sheer waste of my remaining time on earth to try justifying what has always been a favourite pastime, reading the papers, by trying at least to suck some juice from the information I was “assimilating”.

According to the prescient article, in terms of the strategic defence package signed on December 3, 1999, BAE/Saab incurred an offset obligation under NIPP.

The NIPP programme, administered by the dti, required any state purchase in excess of US10 million from firms selling foreign products to effectively reinvest in South Africa.

BAE/Saab, who supplied the 24 Hawk and 26 Gripen fighter jets, were obliged, in terms of the contract, to reinvest a total of US7.2 billion in South Africa by 2011.

Apparently the dti is responsible for monitoring the NIPP.

Two reports commissioned by the dti suggested that there were problems relating to BAE/Saab's compliance with the NIPP.

A report, prepared by SAB&T Chartered Accountants, relating to BAE/Saab's involvement in a defence department demilitarisation project, found that 'government was not getting ‘optimal value', while another report, prepared by NAD Auditors, relating to BAE/Saab's involvement in Denel Saab Aerostructures, suggests that there was a failure to meet 'key performance areas'."

I guess this is information designed to inform, not to instruct or teach.

Usually one needs to be kept informed to enable objective decision making, assuming a decision is expected or required.

When it comes to the arms deal I’m not sure what the point is because there has been neither decisive expectation nor requirement it seems, from Government at least and more than half the South African population?

I figure if BAE/Saab, who were obliged, in terms of the contract, to reinvest a total of US7.2 billion in South Africa there must be some evidence of this and visited the BAE website in search of some information in this regard.

I found an article, a Press Release, “The BAE Systems-Aerosud strategic alliance forms part of the reciprocal Industrial Participation programme flowing directly from South Africas procurement of Hawk and Gripen fighters from the UK defence and aerospace group and its Swedish partner, Saab.”

Ah, evidence of the much vaunted NIPP, yes.

Aerosud, a South African company were involved in manufacturing the Rooivalk attack helicopter and hold deals worth hundreds of millions from various foreign defence companies.

Airbus Military spokesman Linden Birns confirmed that Aerosud, along with Denel-SAAB Aerostructures are full industrial partners in the A400M project.

ANC heavyweight and Speaker of the National Assembly Max Sisulu held shares in a multimillion-rand defence and aerospace company which is set to make a killing out of the controversial R47-billion deal to purchase eight Airbus A400M transport planes.

Sisulu, along with Jackie Mufamadi, “the wife of the former local government minister”, and Herman Mashaba, a tycoon entrepeneur are listed as shareholders of the company along with Foreign Affairs spokesman Ronnie Mamoepa and Titus Mafolo (Thabo Mbeki’s former presidential adviser).

These esteemed leaders held the shares in Aerosud through a company called Phatsima Aviation.

The Chairman of Aerosud is none other than Defence Minister Joe Modise’s wife.

The Industrial Development Corporation acquired the shares in 2003 when they injected capital into Aerosud.

Shakeel Meer, IDC divisional executive: industrial sectors is quoted as confirming that the shares the corporation had transferred to Phatsima in 2005 had been warehoused for Aerosud, as part of an agreement that the company would undergo a BEE restructuring. 

He said that the IDC did provide funding for the transaction, but said this money was put up by Aerosud. 

So the question is, were these Politicians doled out free shares in arms deal companies on the back of the arms deal?

Maybe they paid for them?

Strange though that the NIPP programme is administered by the dti, and that Phatsima Aviation address happens to be Berea Terrace Office Park, 3 Berea Terrace, Berea 5201, PO Box 19376, Tecoma, East London 5214?

Strange because this is also the address of a company called True Group Investment Holdings (Pty) Ltd, a company that targets and provides funding to the niche middle-to upper segment of the SME market.

Strange because Khula Enterprise Finance (Ltd) lists True Group Investment Holdings (Pty) Ltd as a Retail Financial Intermediary on their behalf?

Strange because Khula Enterprise Finance (Ltd) is a dti entity?

What’s not so strange is the fact that Aerosud is a cash cow, that in discovered documents in the International Tax Law Institute (ITLI) vs FirstRand matter, Aerosud’s CEO Pierre Dippenaar relied on his boet Laurie’s company to invest some of his moola in a Duisberg loop in the Caymans.

So what does this week’s column have to do with IT?

It was made possible by Google.