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Trial Report: Thirty-Two

Reports pertaining to 16 October - 20 October 2000.

This report reflects the testimony of American attorney, David Webster. The court moved to Jacksonville Florida during October 2000 to hear his evidence and that of Jane Webster.

Monday, October 16

On his fifth day in the witness stand, Florida lawyer David Webster was questioned about the Waterson Trust and Waterson Master Trust, set up in the Channel Islands in September 1993. Webster explained that Jersey was a favourable site for offshore trusts, and he had mentioned this to Basson several times over the years, advising him that trusts were common practice in the international business world as a mechanism for holding assets. The need to establish an offshore trust was urgent, said Webster, because Basson had called him to say Annette (his wife) was "giving him some trouble" regarding their newly born son, and wanted him to set up a trust for her.

Webster explained that South Africa was in a state of political flux at the time, and many people were trying to place their assets offshore, legally or not. Basson was anticipating asset confiscation by the ANC government. As far as he knows, the trusts never held any assets beyond an initial loan amount provided by WPW Investments.

Questioned about HAP Potgieter, Webster said that he knew HAP Potgieter, who was referred to him by Basson when he needed Webster's assistance in setting up a US company, related to a South African company, to acquire spare parts for helicopters. Webster set up two companies. He claims he did not know until the week before taking the stand in Jacksonville that Potgieter was a serving SA Air Force officer at the time - and this had come as "quite a surprise". He had "no idea", said Webster, that Potgieter was an active military man when he assisted him, though he "assumed" that Potgieter probably had previous military links, "like most South African males". Webster served as the nominal office holder for Potgieter's companies.

The hearings adjourned until Thursday, October 19, for cross-examination.

Thursday, October 19

The cross-examination of David Webster began with him conceding that, although Basson was the only person with whom he had contact or took instructions in connection with the WPW Group, he could not dispute that Basson may have had unidentified principals above him, issuing instructions.

Webster said he became aware, in 1993, that Basson was still an active military officer because Basson remarked that his travels did not entirely comply with the law, since as a brigadier-general now, he was supposed to give more notice of his intention to travel to the United States.

Cilliers said Webster was mistaken, Basson was already a brigadier from January 1988. Furthermore, Cilliers claimed that Webster had attended Basson's promotion party, at his home in Pretoria. Webster denied this saying he had never seen Basson in uniform nor heard anyone address him by rank, and he has no memory of a promotion party. Further proof that Webster was at all times aware of Basson's military status, said Cilliers, is that Basson arranged for Webster to visit the operational area in 1987. Webster admitted that he and Wilfred Mole had visited Namibia and had been to a military base there. According to Cilliers, Basson had sent a medical doctor from 7 Medical Battalion to act as their escort.

Cilliers claimed that when Basson met Webster, he (Basson) disclosed that sanctions-busting would be involved in his business deals. Only to the extent that Europeans would be doing business in South Africa, said Webster. In fact, said Cilliers, the reason Mole brought Basson to Webster was because he was so satisfied with the lawyer's services in regard to sanctions-busting. Webster was adamant that in his presence, no reference was ever made by Mole or Basson to a vehicle to beat sanctions. Cilliers referred to the assistance Webster had given HAP Potgieter as an example of how he had helped the SA Defence Force, and noted that Potgieter was a general in Special Forces. Webster said this came as a surprise to him.

Webster told Cilliers in response to questioning that he never met anyone who gave instructions to Basson, but conceded that from time to time, he himself took instructions from Bernard Zimmer, Philip Mijburgh and Sam Bosch. Cilliers said his instructions are that Webster did meet one of "the people involved", in Orlando, namely one Dieter Dryer of the East German Intelligence Service. Webster has no recollection of this, and said the only Dieter he ever met, had nothing at all to do with WPW Investments Inc.

Cilliers then focussed on the testimony of South African lawyer, Christopher Marlow by the Office for Serious Economic Offences (OSEO) during which Marlow made reference to Webster's involvement in deals. In most of the instances about which he was questioned Webster denied Marlow's claims. For example: Marlow had told the OSEO that the group's aircraft were made available free of charge to people such as President Nelson Mandela, but that in order to get approval for such a free trip, Webster had first to be consulted. Webster vehemently denied this. He said he knows "with certainty" that he only found out after the Jetstar was returned to the United States that Mr Mandela, as he was then, had flown in the aircraft.

During continued cross examination Cilliers put it to Webster that he had been consciously involved in assisting Basson and his unnamed principles in sanctions busting exercises and had been involved in the procurement of substances and equipment for the chemical and biological warfare program. A claim Webster denied.

Cilliers put it to Webster that there was never an intention to acquire shares in Roger Buffham's company, CSD, and that all his dealings with the company were merely a front for a secret deal by Basson involving certain equipment that Buffham provided to the SADF through a group of people. Webster says his only comment on this can be: Fooled me. Well, said Cilliers, you were fooled, but so were British Intelligence and the CIA for about 12 years. Cilliers said Basson was evidently quite good at fooling people, so Webster should not feel bad about being one of them.

The cross-examination of Webster was postponed to Monday, October 23, to allow him to meet prior commitments. Meanwhile, his wife Jane will be called to testify.

Monday, October 23

Evidence in chief of Florida attorney David Webster's wife, Jane, was led by junior prosecutor Werner Bouwer. She was previously interrogated by Ron Henry, of the US Attorney's office, and Office for Serious Economic Affairs prosecutor Dawie Fouche, in the USA in April 1998, and made an affidavit at that time.

Jane met Basson in 1986 when, while still dating David, she accompanied him to the Cayman Islands to meet a friend/client of Wilfred Mole. The purpose of the trip was for David to meet Basson, introduced to them as a South African cardiologist. Jane said she had no idea he had military ties in SA. At a later stage, she became general and administrative manager of WPW Aviation, first operating out of Winter Park, Florida, later from Fairclough Cottage at Warfield, England.

On November 22, 1989, Jane wrote to Basson regarding the lease of the King Air. She said in the correspondence that despite problems collecting payment from the UN, she had "made it happen". In January 1990, she wrote to Basson: "In talking to the UN regarding billing discrepancies, I spoke to a Major Harper and asked him if they had any further need for the plane, or knew of other agencies that might. He suggested we contact the UN agency in Geneva. Let me know if I should go any further with this or just plan to go to Geneva, Switzerland. I will continue to identify the best means of soliciting interest in leasing the plane and keep you informed". Jane testified that she had no idea who signed up the UN as a client of WPW Aviation, as this arrangement was already in place when she came on the scene. On February 2, 1990, Jane wrote to Basson: "Some good news, finally. We received a wire transfer for $94 000 from UNTAG. On March 28, 1990, she wrote to Basson that UNTAG had wired payment for an invoice of $33 000, 50% of the amount owed.

For 18 months Jane Webster stayed in the cottage in Warfield. She said it was convenient for Basson and Philip Mijburgh to have her living in England, as the time difference with SA was more favourable than that of Florida, and when they had business in Switzerland or Europe, they could spend time at the cottage and go over business matters with her in person.

She named the people who stayed at Fairclough Cottage as, Basson, Mijburgh, Swanepoel, Bosch, Annette "and some of her friends", Tjaart and Marie Viljoen, Chris Marlow - pretty much anyone in the group that worked with Dr Basson and WPW, she said. She made three or four visits to South Africa in connection with the WPW Group. On her first trip, she and David went "with the group" to the Kruger National Park, courtesy of WPW.

According to Jane Webster, WPW stands for "a heart condition". Basson told her so. One night, while she was in residence at Fairclough Cottage, she and Basson were watching a television programme. She could not recall the details, but at one point, mention was made of three medical conditions - Wolff, Parkinsons and White - and a very excited Basson drew her attention to the screen, saying you see, that's what the name stands for. She laughed and said oh my, we always thought it was Wouter, Philip, Wynand, but Basson said no. "And he explained to me about the heart condition, that was the drug, I believe, that was patented to cure that heart condition, and that's where the funding came from for WPW". Jane understood that this drug had been patented by WPW. Someone, possibly David, told her that "this group of doctors had patented drugs and that was the origin of their wealth".

In cross-examination by Adv. Tokkie van Zyl, Jane said at their first meeting in the Caymans, there was some talk between Basson and David, both being ex-military men, of similar conditions encountered during their respective wars in Angola and Vietnam. But she is adamant that her impression was that Basson had retired from the military, and says she has no idea if she ever learned that he was actually still active in the SA Defence Force. Basson never told her this and she still does not know it "as a fact".

>From 1993, she says, she and David did not hear from Basson for almost two years., She would fax him with queries, but get no reply, so all her information and instructions were coming from David. Jane had "a couple" of phone calls from Basson, but there was very little contact, except for a limited period before WPW bought Tub-Master, but this was close to 1995. She said she believed that Basson, Mijburgh, Swanepoel and Bosch owned all the companies, and the Jetstar. She understood that Basson had an interest in the Orlando condominium as a member of the group, and that he and Annette were to pick out the decor and finishes.

Asked, by Adv. Van Zyl if she was aware of problems at the cottage at any stage, because someone made a telephone call to a country that should not have been made, Jane said yes, the call was made to Libya. She learned of the problem via routine contact with John and Elsie Stockton (Property caretakers), to wish one of them a happy birthday. They told her Marlow was at the cottage, and Jane was puzzled by this, since no one should have been staying in the cottage without her knowledge. A little while later, either Mijburgh or Basson contacted David and told him Marlow was not to stay at the cottage because of the problem caused by the phone call to Libya. At some point, Jane was told that the group was "dealing with tobacco - selling tobacco - in Libya".

Van Zyl asked Webster what, apart from WPW's standing regarding the heart drug claim, other business had Jane thought the group was conducting? What had she made of the aircraft flying to Angola, for example? She had seen nothing clandestine about those flights, she said, nor anything underhand or illegal. But in time, she began to see a pattern: everything, it seemed, lost money. "I justified to myself that they were transporting people and drugs and research equipment to make sure that they could keep secret what direction they were headed in with the AIDS research," says Jane, but she considered this more a corporate secret than a covert operation, and attached no military connotation to it at all. Van Zyl said that the defence case is that drugs bought for the SADF were transported in the aircraft, along with information and technology obtained by clandestine means from countries where they were not welcome, from people who were not entitled to give it to them, "and that's exactly what they did".

Van Zyl put it to her that Basson never had a personal interest in the companies, and that nothing was done for his personal benefit, only for that of the WPW Group, which was erected to be a vehicle for transactions on behalf of the SADF to acquire technology, materials, chemicals and information needed for the CBW project, and this was the sole reason Basson was involved with the group or any of the companies.

The hearings adjourned until Monday, October 23, for further cross-examination of David Webster.

Monday, October 23

The final day of the Jacksonville hearings began with the continued cross examination of David Webster by Adv. Van Zyl.

Asked if he believed the money flowing into the WPW Group emanated from Basson's cardiology practice, Webster said no. He certainly believed that Basson was an affluent cardiologist, but at their very first meeting, Basson had claimed to be involved in cardiac research and development of pharmaceutical patents, and indicated that he was being paid royalties on these products, along with Mr Blucher.

Van Zyl put it to Webster that he knew full well that Basson had certain dealings and relationships with, and was involved in transactions in, Russia, East Germany and Libya.

Webster denies this, saying he can remember Basson mentioning that he had been to Russia regarding some sort of chemical "they were able to obtain from the brains of dead people". Basson offered no specifics, but said there was a problem, because it "takes a lot of dead brains to make any substantial quantity of the chemical". Basson told Webster that he had been to Russia a couple of times - and spoke in passing of going out drinking with "some people" in St Petersburg, but this was quite late in their association, certainly into the 1990s, says Webster.

Regarding the February 1987 documents about WPW's proposed investment in Delta G Scientific, Van Zyl said at that stage, there was definitely no situation that would have placed Delta G on the open market for outside investors. The documents had merely been created, he says, as a front for Delta G, to create the impression "to the outside world" that it was a private company, whereas it was actually an SADF facility.

Had it been Webster's understanding, Van Zyl asked, in regard to the Contresida deal, that Dr Chu would lend $100-m in his personal capacity to the newly formed Contresida Trust? Webster cannot remember that Chu was to make a personal loan, but "someone" was to facilitate a government/World Health Organisation loan, and that could have been Chu. At the time, Chu was not yet involved in the group and Webster had not met him.

Van Zyl said his instructions were that there had never been any reference to a WHO loan. Some intelligence people from the East European bloc and Russia wanted, or intended, or thought of "washing" money into the Western system, and that was what Contresida was all about.

Webster said that both he and Jane had observed on several occasions that Basson seemed to be picking very poor business deals, poor people to manage his companies and was uniformly losing money, says Webster.

All of which, Van Zyl claims, was because creation of the WPW Group had several goals. It had to serve as the structure to facilitate the acquisition of equipment and substances for the SA Defence Force's CBW programme. At the request of the Eastern Bloc suppliers, a structure had to be created to deal with payments in the Western world. Thirdly, Basson's personal cover story was that he was a wealthy international businessman, but he was using the front companies to do deals and acquire technology, etc.

The hearings concluded with Judge Willie Hartzenberg expressing warm appreciation to all those involved in making them possible. Special thanks were extended to Ron Henry of the US Attorney's office for al his assistance, and to US Attorney-General Janet Reno

 

This report has been prepared by Chandré Gould and Marlene Burger. Chandré Gould is an associate researcher at the Centre for Conflict Resolution in Cape Town in the Chemical and Biological Warfare Research Project. Marlene Burger is monitoring the trial of Wouter Basson on behalf of this project. This report has been possible by a grant from the Ploughshears Fund.

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

 
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