Trial Report: Sixteen

This report covers the period 10 - 16 March 2000

Project Coast financial administrator, Tjaard Viljoen completed his testimony on Friday 10 March. He told the court that he believed Basson was arrested in Switzerland on two occasions and that he had heard about the second arrest in November 1993.

Viljoen told the court he was involved in the following companies: Aeromed, Wisdom Investment & Properties, Intramex, Joostenberg (which became BR Air), Wisdom Liquor Centre, Medchem Sport International, Wisdom Finance, Waterson Properties, Wisdom Holdings, Wisdom Idle Winds, WPW Investments Inc (Cayman) - though he was not aware that he was listed in that corporation's records as chief executive officer - Regent International Trading Services, QB Laboratories, SRD (which became WPW Investments SA) and PCM International (Cayman). In all these companies, he represented Basson's interests, and continues to do so through Profincor and Joostenberg Properties.

During cross examination, counsel for the defence claimed that Viljoen's version of events was not to be believed on the basis that he had perjured himself on previous occasions. With regard to an account which Viljoen had testified had been of concern to him, the defence put it to the court that, as part of an intelligence gathering operation under control of former Special Forces operational commander, Corrie Meerholz, two shebeens were run by 5 Reconnaissance Regiment - one in Hammanskraal, north of Pretoria, the other in the former homeland of Kwandebele.

Also during cross examination, counsel for the defence once again raised the matter of Basson's close relationship with Libya. It was put to Viljoen that four Libyans had lived in Basson's home for about six weeks at one stage and that Basson's mother had also accommodated three Libyans. The court was not told why Basson and his family had accommodated these people, nor why that was related to the financial transactions with which Basson is charged. It was also mentioned that a Libyan national had stayed in the cottage used by Basson in the UK.

American attorney, David Webster, was referred to during cross examination. Adv. Cilliers told the court that it is not Basson's defence that David Webster was in control of the WPW/Wisdom Group. Rather, Webster's role was identical to that of Basson himself - the two of them were in the front line on behalf of the "real" principles.

With regard to the company Aeromed, Adv. Cilliers told the court that this company provided the principals with a Western-based airline company and as a result Unita head, Jonas Savimbi, was able to fly into the heart of American military bases "frequently". At the same time, such a "position of trust" was built up because of these visits by Savimbi that Basson was also able to use the Jetstar to transport sensitive equipment for Project Coast, since the aircraft was "almost never" inspected by foreign customs officials.

The cross examination of Viljoen was concluded on Tuesday 14 March with the defence counsel demonstrating that Viljoen had effectively stolen money from clients of his lending company, Profincor.

The next witness to take the stand was banker Samuel Bosch. Bosch had been employed as a bank manager when he met Basson in 1989. After his meeting with Bosch, Basson transferred all his personal accounts to the bank he managed. The accounts of the Wisdom group of companies and Partners in Travel were also transferred to that branch of the bank.

Bosch testified that during 1990 he was invited by Basson to accompany him and Philip Mijburgh on a trip to Orlando from where the Jetstar was to take its inaugural flight to South Africa.

Bosch provided details of trips undertaken which had nothing to do with his work as a bank manager nor, later as a director in some of the companies in which Basson allegedly had an interest. For example, he told the court that during 1990/91 Mijburgh invited Bosch and a group of people from Delta G Scientific to fly to Cape Town in the Jetstar for a rugby match at Newlands. It was on this occasion that Bosch first noticed that the Jetstar had a Medchem logo on the side. They flew from Lanseria, and on landing at Cape Town, encountered Basson on the runway. He, according to Bosch, had flown down separately, in what looked like a Lear jet.

On Wednesday and Thursday, Bosch testified at length and in detail about financial transactions involving Basson. One of the transactions referred to related to a transfer of US$360 000 on 20 October 1992, to an account held by the company P&S which was recorded in the P & S cashbook as being in respect of "sale of technology" to Firm Licenspolychim, 11 Minskaya Street, Moscow. According to the forensic audit, the funds originated from the Project Coast funds sent to Blackdale for the "second" attempt to buy the peptide synthesiser. Charge 16 refers.

On October 21, Bosch had a Nedbank counter cheque issued against the P & S account for R1-m in favour of Medchem Consolidated Investments. In the MCI books, the money was thus shown as being a local payment.

Bosch testified that over a period of just six months in 1992, he transferred R31,2-m in SADF funds to foreign accounts. It was the first of these transactions that was playing heavily on his mind when he flew to Poland on April 8, the date of the first transfer. He could not reconcile himself to the fact that official SADF funds were being sent to bank accounts of a private individual, he says.

Bosch said that he had no doubt at all that the funds came from the SADF, since in all four cases, he was given Treasury Orders for the amounts. He said he had previously been informed by Basson that the funds were to be handled in such manner that they could not be traced back to the SADF, so had set up various investment accounts - using variations on his own initials - abroad.

On April 8, he sent R17,5-m to an account of SBC in Basle of which Charles van Remoortere was the beneficial owner. All account details were provided by Basson. On May 20, R2,5-m was sent to an account at Bank Indosuez, Geneva, which also belonged to Van Remoortere. On June 8, another R4-m was sent to the same account. On October 22, Bosch was given a Treasury Order by D John Truter for R7,2-m which was transferred to the account of Blackdale Ltd in Geneva. In all four cases, the funds were left in the bogus investment accounts for a few days before being moved. Basson told Bosch to keep for himself the accumulated interest of R52 562 earned during those few days.

Bosch has no knowledge of what happened to the funds after transfer.

Bosch continued his testimony on Friday 17 March.

This report has been prepared by Chandr� Gould and Marlene Burger. Chandr� Gould is a research associate at the Centre for Conflict Resolution working on the Chemical and Biological Warfare Research Project. Marlene Burger is monitoring the trial as part of the CCR Chemical and Biological Warfare Research Project. The Chemical and Biological Warfare Research Project is funded by the Ford Foundation, the Friedrich Ebert Stiftung and the Norwegian Government.

Centre for Conflict Resolution, UCT, Private Bag, Rondebosch, 7701, South Africa Tel: (27) 21-4222512 Fax: (27) 21-4222622 Email: [email protected]