Saab denies wrongdoing in fighter jet deal

Saab denies wrongdoing in fighter jet deal
Swedish defense group Saab said Friday an ongoing probe into reports it had secretly paid millions of euros to ensure South Africa did not back out of a deal to buy 26 fighter jets had turned up no evidence of wrongdoing.

“Our investigations are continuing, but nothing has emerged so far in the

numerous investigations previously carried out by the Public Prosecution

Authority to prove that anything illegal took place,” Saab president and chief

executive Håkan Buskhe said in a statement.

“Saab has a zero-tolerance policy regarding bribery,” the company insisted.

The comments came just days after an investigative news programme on

commercial TV4 said it had new evidence of corruption connected to Saab’s 1999 deal to sell 28 — later reduced to 26 — JAS Gripen fighter jets to South


The programme published what it said was a 2003 contract between Saab

subsidiary Sanip and Fana Hlongwane, the advisor to the South African defence

minister at the time, promising to pay him millions of euros in bonuses if South Africa did not back out of the Gripen deal.

The document showed Sanip had agreed to pay Hlongwane over 50 million

kronor (5.6 million euros, $7.9 million) between 2003 and 2005, and that a

further 30 million was scheduled to be paid later this year.

“We take the accusations very seriously and have therefore conducted our

own enquiries in order to investigate what took place,” Buskhe said in

Friday’s statement.

“Our investigations so far show that there has not been any payments made

by Sanip to the consulting firm (of Hlongwane). Nor did Saab know anything

about the contract and did not sanction it,” he insisted.

He went on to acknowledge that “in hindsight, we can state that Saab should

have had greater control over Sanip’s operations, (but) at the same time,

there is nothing in the published contract to show that any irregularities

were committed.”

The TV4 corruption allegations, which came as Buskhe and Swedish Prime

Minister Fredrik Reinfeldt were in Brazil where Saab is in the running for a

multi-billion-dollar contract for 36 new fighter jets, are not new.

Saab’s Gripen jet sale to South Africa and its cooperation with shareholder

BAE Systems have already faced several probes in Sweden, South Africa and

Britain, but no wrongdoing has ever been proven.

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