Arms Deal offsets a giant rip off - David Maynier

DA MP says DTI report shows that of the promised R110bn in investments only R6bn materialised

DTI reveals Arms Deal offset rip off

The Democratic Alliance (DA) believes that the Minister of Trade and Industry, Rob Davies, should receive full credit for agreeing to carry out comprehensive review of the all arms deal offsets implemented under the National Industrial Participation Programme.

This morning the Department of Trade and Industry (DTI), finally provided Parliament with a detailed report on arms deal offsets under the National Industrial Participation Programme. This brings to end a more than decade long struggle to access information on arms deal offsets.

The arms deal was supposed to generate roughly R110 billion in investments and 65 000 jobs.

However, the figures revealed today show that the arms deal actually generated roughly R6 billion in actual investment and 13 690 new jobs.

The report is further evidence that the arms deal offset programme was a monstrous political fraud.

The department provided detailed information on the performance of each consortium or company summarized as follows:

Name of Consortium

Actual Obligation

Actual Investment

New Jobs Created


(Gripen/Hawk Fighter Aircraft)

US$ 7 200 000 000

US$ 398 910 686

7 474

German Frigate Consortium

(Meko A200 Frigates)

US$ 2 047 600 000

US$  44  433 395


German Submarine Consortium

(Class 209 Submarines)

Euro 2852 460 454

Euro 69 795 413

2 202


(Combat Suite)

US$ 652 408 990

US$ 139 656 198



(Light Utility Helicopter)

US $767 930 000

US$ 70 932 466



(Maritime Helicopter)

GBP108 644 495

GBP 18 748 560


The gaping hole between what was promised and what was delivered is explained by the complex system of "multipliers" to calculate the final arms deal offset credits of each consortium or company.

The DTI concede that mistakes were made and that lessons must be learned.

The DA therefore welcomes the announcement that the DTI will conduct a comprehensive review of the arms deal offsets under the National Industrial Participation Programme.

Statement issued by David Maynier MP, DA Shadow Minister of Defence & Military Veterans, April 17 2012

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