Arms Embargo SA

Apartheid White Government’s Massive Money Laundering During Arms Embargo Period

As South Africa is gearing up for its forthcoming 2019 national elections, the whites have raised their stakes very high so as to bend the elections results in their favor. If in case such a catastrophe ever happens, god forbid, South Africa would definitely immerse into the same colonial and corruption mindset which it had faced during the apartheid era. This era had witnessed some of the high-profile scandals ever with the likes of the Information Scandal (Muldergate), Oil & Arms Embargo Scandals, etc. which ate up a huge chunk of the economy in terms of resources and finances. The most notorious of all is the arms embargo scandal (1974-1994) which had occurred under strict instructions of the then SA President and the other major officials of the apartheid government.

What Forced UN To Consider Arms Embargo in SA and its Consequences?

In November 1977, the UN Security Council imparted the ‘Arms Embargo’ restriction (together with the Oil Embargo) on South Africa with a sole objective to prevent South Africa’s acquiring foreign weapons to build a modern military force, thus finding it difficult to resist the growing internal demands for dismantling the apartheid era within the country.

It was widely believed that the arms embargo on South Africa was a good move to end the apartheid era, but the outcome that came out was altogether the opposite. The apartheid government, out of spite, went on to intensify its arms and ammunition import and export from foreign companies, especially UK, by elevating its annual defence budget manifold over the years. In return for the massive sales, some of top british ammunition companies paid a hefty commission to all the middlemen and the SA government officials who were the part of this major impropriety.

SA Economy Paid A Hefty Price For The Arms Embargo Restriction

The apartheid government used to manage all its illegal transactions during the arms embargo restrictions through its official defence procurement agency ‘The Armaments Corporation of South Africa’ (ARMSCOR). This agency had direct access to a Secret Defence Account (SDA) which was the primary account for all the money laundering interactions undertaken by the government. ARMSCOR, in coordination with the SDA, used to secretly procure weapons and equipments from other countries, thus funding various covert activities. Apart from all these illicit activities, ARMSCOR wasn’t justifiable to any kind of investigation whatsoever, owing to its non-compliance with Truth and Reconciliation Commission (TRC) until then. The account details of SDA were also kept a secret and no official was allowed to look into the account expenses apart from the SA President and the union Defence Minister.

The moment UN imparted the arms embargo restriction on South Africa in the year 1977, there was a sudden exponential increase in the spendings via this Secret Defence Fund (SDA) year-on-year which went into billions, thus subjecting to the simultaneous increment in the national defence budget.

Apartheid Arms Embargo deal

(Image Courtesy: http://www.opensecrets.org.za/downloads/04_The%20Secret%20State.pdf)

For instance, the estimated defence budget in 1986 was reported to be R6.8 billion (ZAR 2005 = R44 billion), though some of the expert business analysts predicted the budget to be close to R15 billion (ZAR 2005 = R70 billion), the excess money being diverted to Secret Defence Account.

Massive Spending On ‘Sanction Busting’ & ‘Nuclear Weapons Programme’

The primary reason behind the exponential increase in the spendings of Secret Defence Fund (SDA) year-on-year from 1977-1994 was mainly due to ‘Sanction Busting’. Since embargo was imposed, SA was banned from importing and manufacturing any kind of arms and ammunitions due to which all the middlemen who were prepared to bust the embargo demanded a hefty financial price for any kind of weapons acquisition for the country. Moreover, the local officials who were entrusted with the task of procuring weapons, set up an inflated price quote, thus personally keeping the excess or possibly split it with weapons’ suppliers, who respectively increased their prices, resulting in the ultimate escalation in the expenditure of SDA funds.

Apart from the Sanction Busting, a massive expenditure was also utilized by the then-government on the country’s ‘Nuclear Weapons Programme’. This programme, which was deemed completely unnecessary, consumed an enormous amount of state funding, totaling to an amount whose estimate was close to R22 billion (as per the 2005 monetary terms). After such a massive investment in the nuclear weapons program, all the 6 nuclear weapons, which were created at that time, were ultimately destroyed in the early 1990s under the strict orders of the then-President F.W. de Klerk, thus extracting nil output from this costly programme.

In a Nutshell

Whites, during the Apartheid era, has entitled the entirety of South Africa with all the illegitimate and corrupt systems following a series of grand corruptions in almost all the sectors. So, if the white minority (via its political stooges) come to power in 2019 elections, South Africa would face the reincarnation of the notorious apartheid era which it is presently in no state to adopt. Thus, it is up to the citizens of South Africa to be wise while choosing the next government who would promote RET and look up to the rights of all the native blacks.

All the above facts and figures have been taken from the website opensecrets.org.za

  • Nkhetheleng Vsagie

    Ramaphosa is a known stooge of white monopoly capitalists. If he wins he will definitely sell out our country to his masters. He will never be our president.