Armscor project leader stands his ground

Armscor’s project leader for submarines, Rob Vermeulen, stood by his statement describing the preferred German bidder to supply South Africa with modern submarines as a cost-effective contract during his cross-examination at the Seriti commission of inquiry on Monday.

Researcher Paul Holden, who co-authored with Hennie van Vuuren the book, The Devil in the Detail: How the Arms Deal Changed Everything, questioned Mr Vermeulen about being supportive of the bidder when there were three others (Italian, French and Swedish bidders) who had scored even higher. Mr Vermeulen was emphatic that his opinion took into consideration the value-add that he was later able to negotiate, including a considerable increase in spare parts.

Mr Vermeulen argued that prices had already been agreed to by the Cabinet and that all he needed to do was to see how much more the bidder would be prepared to add for services, training and spare parts.

Mr Holden argued that the fact that South Africa decided to buy three submarines instead of four, which was what the bidders were asked to compete for, meant a new tender process should have been begun. South Africa signed for three submarines with an option to purchase the fourth at the later stage but did not take up the offer within two years. While Mr Vermeulen accepted his point, he said that no procedure was necessarily breached.

Judge Willie Seriti protected Mr Vermeulen on several occasions, including when he was asked to comment on a document drafted by retired R-Adm Antony Howell and Capt Andrew Reed in which scores of bidders for submarines were changed. Judge Seriti said the evidence leaders had made attempts to get R-Adm Howell to come to testify, so questions should be asked directly of him when he took the stand instead of calling for speculation.

Lawyers for Human Rights is representing Mr Holden, Mr van Vuuren and Andrew Feinstein, a former African National Congress MP and author of two books - After the Party: A Personal and Political Journey Inside the ANC; and The Shadow World: Inside the Global Arms Trade.

Mr Holden unsuccessfully tried to show inconsistencies in Mr Vermeulen’s evidence. However, he who was always able to explain the background and phase in the strategic defence procurement process when things were done. He could not explain decisions taken by committees above the one in which he participated, including Cabinet’s decision on prices.

However, he argued further that after political leaders made the decision and chose the preferred bidder, the ball was back in his court to negotiate the finer details within the stipulated price in terms of staff training for sailors, technicians and engineers, including requesting that simulators be brought to South Africa to be used to train people at home.

The hearing continues.