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Africa's oil wealth boosts arms sales

French probe claims graft in Malaysia deal
Kuala Lumpur, Malaysia (UPI) Apr 30, 2010 -Malaysia's government moved to downplay a French investigation into allegations that shipbuilders DCN paid kickbacks to a friend of the Malaysian prime minister in connection with a $1.1. billion submarine deal. The beleaguered government said there was "no case" to answer to as opposition political parties encouraged the probe, calling it the "tip of the iceberg" of nefarious defense contracts in Malaysia. The case, concerning the 2002 sale of two Scorpene submarines made by the French shipbuilder DCN was brought to fore by a Malaysia rights group that claimed the French company paid $150 million in kickbacks to a company called Perimekar.

Malaysia took delivery of the first submarine last year, with the second expected from France next month. Perimekar is owned by the wife of Abdul Razak Baginda, a former aide and close friend of the Malaysian Prime Minister Najib Tun Razak. The local rights group Suaram filed two complaints with French prosecutors in connection with the allegations. "It is their right to investigate but, for us, there is no case," a Malaysian government spokesman was quoted as saying by Defense News. "This is not a new issue. It is a concerted and continued effort by the opposition to discredit the premier."

It wasn't immediately clear whether the Malaysian authorities and government would cooperate with the French probe. Baginda, the defense minister at the time that the controversial deal was sealed, has been acquitted of charges of abetting the 2006 killing of his mistress. He has repeatedly denied any criminal wrongdoing. Still, the latest probe could embarrass the country's prime minister as he struggles to consolidate his power a year after taking office. The investigation is the first legal action linked to the controversial submarine deal despite a tirade of criticism and allegation of corruption launched by opposition political parties.

The French probe was launched on grounds that "Perimekar was formed only a few months before the contract was inked, had no track record in submarine services and didn't have the financial ability to support the contract," Taiwan News reported. The probe was opened as part on an ongoing investigation against DCN over a string of defense deals in Pakistan and Taiwan. The Malaysian government has spurned allegations of paying Perimekar any commission but that the company has a 6-year contract to provide support services for the submarines.
by Staff Writers
Nairobi, Kenya (UPI) Apr 30, 2010
Kenya, which faces being dragged into the war in neighboring Somalia, is seeking to buy arms from Israel in hopes of securing the support of the Jewish state's military expertise in countering the jihadist threat.

That fits in neatly with Israel's own efforts to boost military sales in strife-torn Africa, particularly among the energy-rich states such as Nigeria and Angola.

Connecticut-based Forecast International, which provides market intelligence on the defense and aerospace sectors, noted in a December analysis that these days Africa "is host to a dynamic arms market polarized by broad economic disparities and myriad security challenges.

"Burgeoning energy economies have fueled significant market growth in recent years but a new wave of economic challenges threatens to slow this expansion," Forecast International said.

Still, Forecast International said that the northern tier of African states, particularly Algeria, have eclipsed South Africa as "the region's most active and thus most lucrative, arms market."

African states spent around $18 billion on defense in 2008, a 7.7 percent increase over 2007, the consultancy said.

However, the North African states, overwhelmingly Muslim and opposed to Israel, are, of course, not open to the Jewish state. It is focusing largely on the sub-Saharan states like Angola and Nigeria, the region's leading oil producers, as customers for its high-tech defense industry.

In September, Israel's hawkish Foreign Minister Avigdor Lieberman toured nine African states accompanied by a large entourage of arms dealers and defense industry executives from companies such as the flagship Israel Aerospace Industries, Israel Military Industries, Elbit Systems, Israel Shipyards and others.

There was also a delegation from Sibat, the Defense Ministry department that oversees Israel arms sales and military assistance and Israel's intelligence community, including the Mossad, the foreign intelligence service that has long operated in Africa.

No arms deals were signed during the tour, which included Ethiopia, Kenya, Nigeria, Ghana and Uganda. But Israeli Foreign Ministry officials estimated Africa's business potential at $1 billion. They noted some countries, such as Nigeria, were considered important markets for Israeli arms.

The Kenyans have given no public indication of what kind of weapons systems they want from Israel but they are likely to include counterinsurgency systems and unmanned aerial vehicles for border surveillance.

Israeli drones have been sold to Angola, the Ivory Coast and other countries to protect oil installations and other facilities.

Kenyan Internal Security Minister George Saitoti met his Israeli counterpart, Yitzhak Aharonovich, in Jerusalem Feb. 11 and, according to the Israeli media, told him, "The jihad is taking over Somalia and threatening to take over Kenya and all of Africa."

Israel's interest in Kenya fits in with wider concerns that the Jewish state has with the Horn of Africa in general, given growing Iranian interest in shipping arms to the Palestinian Hamas movement in the Gaza Strip and to Hezbollah in Lebanon via the Red Sea.

The Israelis are also keen on developing intelligence links with Eritrea, which lies on the southwestern coast of the Red Sea, from where the Israelis could keep tabs on al-Qaida in Yemen across the Red Sea.

Eritrea's rival, Ethiopia, with which Israel has long had intelligence links, also is seen as a potential market for weapons.

But Israel is also interested in rebuilding widespread contacts it had across Africa, built up in the 1950s and '60s to bolster its diplomatic support.

In recent years, Iran has been making serious inroads into Africa to garner support for its contentious nuclear program.

In 2008-09, Iranian diplomats and military officers dispatched by President Mahmoud Ahmadinejad were all over the continent "signing a bewildering array of commercial, diplomatic and defense deals," The Economist reported.

Israel has been working on Nigeria, the most populous nation in Africa whose 150 million people are roughly divided evenly between Muslims and Christians.

Nigeria too is grappling with Islamist radicals and a damaging insurgency in the south that has partially crippled its all-important oil industry.

The Israelis have had some success there with arms sales worth $500 million in recent years.

In May 2006, Aeronautics Ventures sold air and sea drones to the Nigerian Defense Ministry to defend the southern oil zone in the Niger River Delta. Nigeria also contracted to buy two Shaldag patrol boats for $25 million.



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