In 1999 the government sold its purchase of R30bn of military hardware to the South African public on the basis of the ‘offset’ benefits accompanying its deal with international arms suppliers. The public were told that the deal would bring R110bn in direct foreign investment and 65 000 jobs. The Coega Project, to establish an Industrial Development Zone in the Eastern Cape, was held to be the biggest single beneficiary of this deal. Two years down the line not a cent has been invested in Coega as a result of the arms deal. Instead the South African tax-payer will foot the bill for the construction of a R4.5bn harbour in Coega.
PSAM Press Release - 24 July 2001
The government has now established a private company, the Coega Development
Corporation (CDC), to push ahead with the construction of the Coega Project
regardless of its economic viability. Despite its lack of constitutional or
legal mandate the CDC has been allocated R185million by the Eastern Cape
department of Finance this year alone. CDC cannot be held accountable to
Parliament and does not have to comply with the Public Finance Management
Act or State Tender Board regulations.
The PSAM has established that the CDC has awarded a number of contracts to
companies which are connected with members of its own board of directors. It
has also awarded contracts to a company connected with an ex-Cabinet
Minister who was intimately involved with the decision making process during
the arms deal.
For a full analysis, and a chronology of connections between Coega and the
Arms Deal, please visit www.psam.ru.ac.za click current cases then click
Finance…
To learn more about the Coega project watch Special Assignment tonight at
9.30pm on SABC 3.
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