Chippy probed over R20marms deal contract kickback

Shamin 'Chippy' Shaik. Armscor. Pic: Raymond Preston. 23/07/1997. © Sunday Times
Shamin 'Chippy' Shaik. Armscor. Pic: Raymond Preston. 23/07/1997. © Sunday Times

Waghied Misbach

Waghied Misbach

A German magazine has alleged that Shamin "Chippy" Shaik - brother of convicted arms-deal fraudster Schabir Shaik - received a $3 million (about R21 million) bribe from German industrial giant ThyssenKrupp to help it win part of South Africa's multibillion rand arms deal.

The information is contained in a Der Spiegel article which was unveiled to the media in parliament yesterday by Independent Democrats' leader Patricia de Lille and Judge Willem Heath, the former head of South Africa's special investigating unit.

The magazine said the information had been gleaned from internal papers of ThyssenKrupp.

Heath said yesterday that the German authorities were drawing up an application to request assistance from the South African investigating authorities with the case.

ThyssenKrupp won a R7 billion deal to supply corvettes to South Africa.

Shaik is the former chief of acquisitions for the defence force. He was also embroiled in controversy because his brother Schabir was involved in getting business out of the deal.

Der Spiegel alleges that Shaik approached a ThyssenKrupp representative in December 1998. The deal was allegedly concluded in 1999 and the money paid to him in April 2000 through a "postbox" company, Merian.

The German National Prosecuting Authority is currently investigating allegations that ThyssenKrupp officials were involved in paying bribes to secure contracts in South Africa and other foreign nations, and had set aside $25 million for that purpose.

The company's offices were raided on June 19 last year.

ThyssenKrupp led the consortium which won the corvette contract.

The other members of the consortium include the French multinational Thomson-CSF, now known as Thint.