President Thabo Mbeki will not launch a judicial commission of inquiry into the blighted "arms deal", despite new revelations of kickbacks.
The scandal has now assumed global proportions.
Mbeki's spokesman Mukoni Ratshitanga said yesterday that the multibillion-rand scandal had already been investigated in 2001.
Reports at the weekend in The Guardia n newspaper in London said that businessman Fana Hlongwane, a special adviser to the late Defence Minister Joe Modise, was being investigated for receiving payments from the British arms company BAE.
Modise was named in allegations about corruption, having allegedly taken a bribe from BAE and from a German consortium that signed a contract to sell submarines.