Citation
Martin Michael Steynberg
I, Martin Niichael Steynberg, an adult rnale currently residing in the Republic of South Africa declare under oath as follows:-
a]
I have been approached by attorneys representing Beverley
Securities Inc [ BSI] regarding their pending claim against
Aerospatiale / Eurocopter, the French ex state owned aviation
company who supplied, manufactured and sold the 50 Super
Puma S2 Helicopters in kitform to South Africa, delivered via
Portugai.
b]
At the beginning we dealt mainly with Aerospatiale, then in 1992
Aerospatiale's helicopter
division became "Eurocopter", a
company 100% subsidiary of Aerospatiale. Eurocopter has since
grown to be the world's largest producer of helicopters. Today
Aerospatiale is part of "EADS", [European Aeronautic Defence
and Space Company, a merger of Aerospatiale Matra SA and
Daimler-Chrysler w ith offices al l
o ve r t h e world including
Washington, Miami and Dallas.
I started employment in 1984 at Kentron [Pty] Ltd., a subsidiary of
Armscor, as an accountant. In November 19861was transferred to the 4th
floor of the South African Embassy in Paris / France located at No. 59
Quay D'Orsay.
This was the Head Office of Armscor in Europe and was officially known
as the Technical Council at the Embassy.
trrentl residing in the Republic of
Martin Michael Steynberg
All employees of the Technical Council, about 25 at any given time, were
given consular status and therefore enjoyed Diplomatic Immunity.
'Por
I
',At
Ae
COI
Armscor operated from the South African Embassy in Paris with the
knowledge of the French Government who accepted our diplomatic status
and gave us work permits to fulfil our duties:-
gR
,Ae
Our work was classified as top secret and our cover was secure.
I
art
Our projects were given code names as well as our agents. The
Dc
50 Super Puma Helicopters Project was called Project Adenia.
Our country was very fortunate as we enjoyed throughout the years the
support of the two French Administrations, first President Francois
Mitterrand's Government and later Jacques Chirac.
I was based in Paris until March 1990, after which I was relocated back to
Armscor's Head Office in Pretoria, South Africa.
3S
Ie
My duties in Paris were as follows:-
a)
I was the Foreign Procurement Administrator for all Armscor 8
Atlas contracts. [The aviation wing of Armscor].
b)
It was my duty to study all the financial aspects of the contracts
and to ensure that all related payments were executed via the
proper channels and by using the proper method of secret bank
accounts.
Martin Michael Steynberg
c)
For security reasons payments were effected in various ways and
done on a w eekly basis from Kredietbank Luxembourg and
Banque Continental du Luxemburg — routed through various other
small b a nks in Luxembourg, Switzerland and elsewhere in the
world.
d)
Our in s tructions were to execute payments according to the
contracts related to specific projects, like Project Adenia.
Quite often, almost as often as the normal payments, we received
orders from Head Office in South Africa to execute payments
without referring to any specific projects.
These mysterious
payment instructions came quite regularly and were substantial.
In my statement I will refer to my own experiences and knowledge as well
as to comment on classified documents and sworn affidavits of ex Armscor
personnel. I wish to make this statement and to elaborate on what I know
about Project Adenia during the time I worked undercover for Armscor at
the South African Embassy in Paris.
Armscor paid Eurocopter / Aerospatiale directly via bank accounts in
Luxembourg for the Helicopter package. I know this fact as I was the
Head of the Department in Paris that supervised and controlled the
execution of all payments. It was my job to make sure that the financial
commitments of the contracts were properly executed.
I also know
because of documents that we had on file in our office, there was only one
contract between Armscor and Aerospatiale.
Armscor had three
Martin Michael Steynberg
commitments, one to pay Aerospatiale for the package, including transfer
of technology and relocation of French families and Engineers to South
Africa. S econd, to pay OGMA [the service wing of the Portuguese
Airforce) for the upgrading of the Portuguese Puma's to a S1 Super Puma
version, a condition of the Portuguese Airforce for authorising the use of
the channel for the deliveries. Portugal needed a helicopter capable of a
range to patrol the Atlantic up to the Azores Airbase in order to fulfil their
NATO commitments. And thirdly, BSI was to be paid under contract, a
10/e commission for their services in obtaining the authorisation frorn the
Portuguese military establishment for guaranteeing the deliveries to South
Africa.
BSI obtained permission from the Portuguese Airforce
[FAP] for
Aerospatiale I Eurocopter to deliver the whole helicopter package to South
Africa via Portugal. BSI's duty was also to supervise and guarantee the
security of the channel throughout the duration of the contract.
The classified top secret code name for the transaction was called Project
Adenia.
a)
P r oject Adenia was the supply by Aerospatiale I Eurocopter to
Armscor of 50 Super Puma S2 helicopters in kits, as well as a large
quantity of spare parts and components, together with all tooling and
technology transfer for the helicopters to be assembled in South
Africa under supervision of French Aerospatiale and Eurocopter
Engineers in c o-operation with the SADF and A tlas Aircraft
Corporation.
Martin Michael Steynberg
b)
T h ese helicopters were designed and manufactured by Eurocopter /
Aerospatiale in France to suit the requirements of the South African
Defence Force in South West Africa.
c)
A r m scor and Aerospatiale decided to call the helicopter a different
name in order to hide the fact that it was a French Super Puma S2
Helicopter. It was called the "ORYX" as it is still known today.
Officially the ORYX helicopter was supposed to be designed and
manufactured in South Africa.
10.
Aer o spatiale / Eurocopter acquired technology and components from the
US company Rockwell Collins, situated at 400 Collins Road NE, Cedar
Rapids
IA 52498, USA, to be incorporated in the helicopters to Armscor in South
Africa.
These were:
1.
Rad i o s
2.
3.
Avi o n ics
Tra n sponders
Deliveries for Project Adenia started in 1989 / 1990 and continued
regularly throughout the years until the end of 1995 / 1996. The spare
parts, components and the maintenance part of the contract is still
running on a continuous basis. It means that Project Adenia is still in force
today as the 50 Super Pumas remain in active service with the South
African Defence Force.
Martin Michael Steynberg
Payments were made according to deliveries on a regular weekly basis. I
was responsible for delegating the execution of these payments, which
were in accordance to the contract and all authorised by our Head Qffice.
My instructions were relayed to Mr Danie Loubser who executed the
payments.
12.
The a v erage movement of funds that went through our bank accounts in
Luxembourg, was sometimes about US$15 million per week. I am aware
that this was more or less the average weekly turnover of our accounts
from the mid 1980's up to 1995/1996. The accounts remained open and
active until 1998.
a)
I estimate that from the 1980's up to 1996 our accounts in
Luxembourg had a turnover of about US$7 billion. A lot of money,
if you consider that the South African Defence Force did n ot
possess expensive and sophisticated equipment.
b)
France was our strongest ally.
Our Navy had old absolute
Daphne Submarines, Our airforce used French Helicopters' and
aircraft, the best being the French Mirage which for econornical
and other reasons were equipped at some stage with Russian
Sukkoy engines. The only other more sophisticated equipment
was the 50 S2 Super Puma Helicopters.
c)
Qur nuclear programme was of French technology.
At the
Koeberg Nuclear Power Station in South Africa, the reactors were
supplied by Framatome in France. In 1979, it was decided that
the main task of designing and building gun type nuclear devices,
would be assigned to Armscor, eventually 6 fission gun-type
nuclear devices were successfully completed. The total capital
cost of the plant amounted to about US$60 million and annual
operating costs of about US$14 million.
One does not have to be a top military analyst to see that
our defence force did not have the equipment that justify
the amount of funds spent overseas.
13.
My d e partment was responsible for the final authorisation, supervision and
e xecution of all the payments, which means we had t o t ravel to t h e
respective countries, mainly Luxembourg and Switzerland, to visit banks
and personally give the payment instructions to the bank officials.
a)
The s e payment instructions and documents were highly classified
and always sealed in special envelopes until we reached the
bank.
b)
VVe w ere given diplomatic courier envelopes and courier letters
which gave us immunity at border posts in the event of a custom
search.
14.
Ins t ructions from Head Quarters in Pretoria to Armscor in Paris was sent
by diplomaticbag every Sunday. We would spend Monday processing
and updating project files and making all necessary arrangements and
appointments with th e
r e spective bank officials for meetings on
Wednesday inLuxembourg and other places.
Martin Michael Steynberg
15.
Arm s cor's main banks in Luxembourg were the Kreditrust Luxembourg,
Kredietbank Luxembourg, Banque Continental du
L uxembourg and
Banque Internationale.
In Switzerland is was Bank Cantrade, Union Bank of Switzerland [UBSj
and various other private banks.
a)
In 1993, our Heal
O f f ice in South Africa decided to initiate a
secret operation code named Massada. This operation's mission
was to destroy all files and records of the activities of foreign
procurement in a nticipation of u nfavourable r esults i n
free
elections in 1994.
16.
I had the opportunity to see all the evidence and read the statements of
my ex colleagues Messrs Tonie de Klerk, Nico Palm and Danie Loubser
as well as the ones of Deon Gouws, Paul van Vuuren, Willem Mentz and
Brig. General Frederick Furter. In my opinion, the letter of Mr JF Bigay,
President of Eurocopter, to the South African Government was certainly
not a democratic request and could present a direct threat to Mr Pinhol's
life.
I have no doubt in my mind to confirm that their statements are absolutely
true and correct.
17.
Bec a use of my duties and work in Paris, I had direct knowledge to confirm
and elaborate further and in more detail than anyone else, the financial
aspects of Project Adenia.
Martin Michael Steynberg
a)
The project was sub-divided in various projects namely:- Kingsley,
Zandumec, and a few others I do not recall, for each project a
separate bank channel was established, separate bank accounts
were opened and different payment structures planned.
b)
Because of the magnitude of the p roject, extra staff were
transferred from Armscor and Atlas Aircraft Corporation in South
Africa to Paris to accommodate the additional workload. On the
other hand Aerospatiale and Eurocopter engineers were sent and
re-located secretly to South Africa to assist the assembly and
maintenance of the helicopters.
c)
The logistics, management and payment structures for this project
were tremendous and on a continuous basis, as the maintenance
programme had to be set up for as long as the helicopters remain
on active service.
18.
Arm s cor had well over 300 secret bank accounts in Luxembourg. All bank
accounts were opened with the knowledge, assistance and counsel of the
bank's top administration and employees, according to the planning of the
channel, and it was structured in such a way that if something went wrong
with one channel, other payment channels were not affected.
19.
I re m ember that an account was opened in 1990 for Beverly Securities
[BSI] at Kredietbank, Luxembourg, account number 210 370 on which
myself and my colleague Danie Loubser were signatories. The purpose of
10
Martin Michael Steynberg
opening this account was for BSI to receive the 10/e commission of
Project Adenia. Our instructions were for this account to receive the funds
and then to transfer them to an account to be indicated by BSI in another
bank outside Luxembourg. Instead, the funds that were allocated for this
purpose were systematically transferred to other accounts controlled by
Aerospatiale.
20.
For Project Adenia, payN8nts to Aerospatiale were executed some
directly, and others, through several secret channels, like Monsaguel at
Banque Genevoice de Gestion in Geneva I Switzerland and Eltra at
Banque Nationale de Paris in Hong Kong.
There were so many that it is impossible to recall all of them, but access to
the bank's records will confirm my statement.
21.
I recall that the total value of Project Adenia was in the region of
US$3 billion.
22.
a)
I also recall that in our Project Adenia's file there were clear
instructions that BSI be paid a commission of 10'/e pro rata
according to
t h e d e l iveries o f t h e e q u ipment.
During
approximately 1989 these instructions changed. We were then
told to hold onto these funds until further notice. Because of the
fact that these funds were not paid over to BSI throughout the
11
years, several Armscor accounts in Luxembourg
of US$300 million, being the 10/o provision that:
for their services.
b)
Later, these funds were t ransferred graducontrolled by Aerospatiale by order of our He~
Africa, although the funds were not due to Aer
this to be a fact as 8il the correspondence went
and records filed irv Paris confirmed what I am ~
the liaison office between Armscor and Aerospawere aware of all messages, corresponden~
received and sent between our two organisation=
c)
I also remember that Armscor paid large excess
According to our records for Project AdeniIUS$900 million] was paid and transferred CS
accounts in France and elsewhere in the World
23. F or reasons beyond my knowledge,throughout the y~
Dollars were transferred from Luxembourg to secret r
all over the world, to individuals and companies withom
specific project or contract. Funds were transferred re=
in Luxembourg, Switzerland, London, Hong Kong, Gerrr
AII US Dollars transfers were executed an
American Banks in New York City.
Martin Michael Steynberg
years, several Armscor accounts in Luxembourg built up a surplus
of US$300 million, being the 10'/e provision that was owed to BSI
for their services.
b)
Later, these funds were t ransferred gradually to
a c counts
controlled by Aerospatiale by order of our Head Office in South
Africa, although the funds were not due to Aerospatiale. I know
this to be a fact as 8ll the correspondence went through our office,
and records filed irr Paris confirmed what I am saying. W e were
the liaison office between Armscor and Aerospatiale, therefore, we
were aware of all messages, correspondence and instructions
received and sent between our two organisations.
c)
I also remernber that Armscor paid large excesses to Aerospatiale.
According to ou r
r e cords fo r P roject Adenia, a 3 0 '/e excess
[US$900 million] was paid and transferred to Aerospatiale to
accounts in France and elsewhere in the World.
23.
For r e asons beyond my knowledge, throughout the years Billions of US
Dollars were transferred from Luxembourg to secret numbered accounts
all over the world, to individuals and companies without reference to any
specific project or contract. Funds were transferred regularly to accounts
in Luxembourg,Switzerland, London, Hong Kong, Germany and the USA.
All US Dollars transfers were executed and cleared through
American Banks in New York City.
12
/
Martin Michael Steynberg
/
/
/
24.
Mo s t of the funding to our bank accounts in Luxembourg were transferred
from Votkskas Bank, van der Walt Street in Pretoria. These funds were
transferred via a secret international network of bank accounts in order to
hide its origin.
I am aware that this sworn statement may be used in a court case.
MARTIN MICHAEL STEYNBERG
I certify that the Deponent has acknowledged that he knows and understands the
contents of the foregoing affidavit, and that he has no objection to taking the
prescribed oath and that he considers the oath to be binding on his conscience,
which affidavit was signed and sworn to before me at
dayor A
on this
50uTA' fp
Ic lg
NAME
ADDRESS
2001.
S
Kommlssarts
vanEde/Commisstoiti of Oaths
Pra
OFFICE HELD Cathedra15
quare,Cathedralstraat/Slteet, George
AREA
