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Saudi Arabia has made a $1 billion bid for a broad partnership with South African state-owned defence group Denel that would include acquisition of a minority stake in a joint venture with Germany's Rheinmetall, a source familiar with the offer said.
Currently heavily dependent on imports, Saudi Arabia, the world's third-largest defence spender, is seeking partnerships to develop its own domestic defence industry with the goal of localising half of its military spending by 2030.
Saudi Arabian Military Industries (SAMI), the kingdom's state defence company, told Reuters last month that it was in discussions with all major South African firms and aimed to conclude the first deals by the end of this year.
According to the source, who asked not to be named due to the sensitivity of the talks, Saudi Arabia was targeting Denel's 49 percent stake in Rheinmetall Denel Munition (RDM).
U.S. President Donald Trump said Wednesday he will have a "stronger opinion" on the killing of journalist Jamal Khashoggi next week.Trump told reporters that the U.S. is working with Turkey and Saudi Arabia to uncover what happened to Khashoggi."I will have a much stronger opinion on that over the next week," Trump said.Khashoggi, a Saudi national and columnist for The Washington Post, was killed Oct. 2 after entering the Saudi Consulate in Istanbul.Khashoggi's legacy should be peace in Yemen: IRCSaudis used Israeli spyware to track Khashoggi: Snowden
'Stronger opinion' on Khashoggi case next week: Trump
RDM is a South African-based joint venture formed in 2008 between Denel and Rheinmetall Waffe Munition GmbH, which holds the remaining 51 percent stake. It specialises in the development, design and manufacture of medium and large-calibre ammunition including artillery shells.
A Rheinmetall spokesman declined to comment. The German government is currently reviewing all arms sales to Saudi Arabia after the killing of journalist Jamal Khashoggi in the Saudi consulate in Istanbul.
Industry sources said RDM operates independently and is subject to South African law, which means exports from the unit are not subject to German government oversight. The sources said they did not expect that a change in the ownership of the venture would require a German government review.
Under the Saudi offer, SAMI would also finance research and development in other Denel divisions including Denel Dynamics, which develops and produces tactical missiles and precision guided weapons.
Software made by an Israeli cyber security firm was used to track murdered journalist Jamal Khashoggi, a former U.S. National Security Agency contractor and whistleblower claimed Wednesday.Addressing a conference in Tel Aviv, Israel via a video call from Russia, Edward Snowden said Pegasus spyware sold to governments by NSO Group Technologies was used to track opponents. “The Saudis, of course, knew that Khashoggi was going to go to the consulate, as he got an appointment. But how did they know his intention and plans?”Khashoggi, a Saudi national and columnist for The Washington Post, was killed on Oct. 2 after entering the Saudi Consulate in Istanbul.EU urges Saudi cooperation with Turkish Khashoggi probeGermany says all behind Khashoggi murder should be punishedOnce inside, he was immediately strangled and then dismembered, according to the Istanbul Prosecutor’s office.After announcing he was killed, Saudi Arabia has yet to reveal the location of Khashoggi’s body.Snowden said the smartphone of one of Khashoggi’s friends, who was living in exile in Canada, had been infected with NSO’s Pegasus spyware.He said the software allowed the Saudis to collect information about Khashoggi.“The truth is that they pursued some of his friends through a program written by the Israeli company.”A report issued by Canadian research institute Citizen Lab said: “We have high confidence that the cellphone of Omar Abdulaziz, a Saudi activist and Canadian permanent resident, was targeted and infected with NSO Group’s Pegasus spyware.”The software, which allows almost unlimited surveillance of mobile phones, is seen as the world's most powerful mobile spyware application.Snowden, who leaked thousands of documents detailing a long-term surveillance program by the U.S. government, was granted asylum by Russia in 2013 after the U.S charged him with espionage.His residence permit in Russia was extended until 2020.Saudi prince launches country's 1st nuke plant projectSaudis sent 'clean-up' team to Turkey after Khashoggi killing, official says
Saudis used Israeli spyware to track Khashoggi: Snowden
Denel and SAMI would share intellectual property and under a new joint venture would target defence export markets in the Middle East and North Africa.
Finally, Saudi Arabia - already a top Denel customer for military vehicles, artillery munitions and radar equipment - would purchase a certain amount of the group's production. The Saudis expect an answer from the South African authorities by the end of December.
"Saudi Arabia has made a unique business proposition to the South African government. As our discussions are not finalised yet we cannot provide any comment," SAMI CEO Andreas Schwer wrote in response to Reuters' questions.
"RIPE FOR PARTNERSHIPS"
South African President Cyril Ramaphosa last week said Denel was "ripe for joint-venture partnerships". But he added that the government had not yet weighed the Saudi bid or proposals from what he said were a number of other suitors looking to partner with Denel.
Outspoken Burmese activist Ro Nay San Lwin sheds light on Saudi Arabia’s infamous al-Shumaisi Detention Center in Jeddah, where thousands of Rohingya Muslims, who fled from violence and persecution in their homeland of Myanmar’s Rakhine state to the kingdom, are held because Riyadh claims they entered illegally. Lwin is a coordinator of the Free Rohingya Coalition and has been living abroad since 2001 because of the restrictions of his home country.Since Aug. 25, 2017, nearly 24,000 Rohingya Muslims have been killed by Myanmar’s state forces, according to a report by the Ontario International Development Agency (OIDA). More than 34,000 Rohingya were also thrown into fires, while over 114,000 others were beaten, said the OIDA report, titled "Forced Migration of Rohingya: The Untold Experience."Some 18,000 Rohingya women and girls were raped by Myanmar’s army and police and over 115,000 Rohingya homes were burned down and 113,000 others vandalized, it added.UN official urges Bangladesh to halt Rohingya returnsMany Rohingya Muslims have had to leave their homelands over the past few years, just like you. Some of them also traveled to Saudi Arabia. But there seems to be a problem here. What is it?First of all, it is necessary to note that there are approximately 300,000 Rohingya Muslims in Saudi Arabia. Most of these people entered with the passports of Bangladesh and surrounding countries. Unfortunately, unjust treatment of these passports were fake and they became illegal. There have been two cases of victimization. People who were forced to leave their lands under the pressure of the Myanmar state were defrauded by human traffickers. Before 2010, this situation was relatively tolerable because the introduction of fingerprinting in Saudi Arabia had not started yet. In this case, even if you entered the country illegally, you could stay for many years without being pursued. With the implementation of fingerprint scanning, this has been eliminated. The state can easily find you wherever you go. Rohingya Muslims do not want to live illegally. They want to live a normal life, earn money and take care of their families. Unfortunately, they have to pay the price of being stateless wherever they go.What kind of price is Saudi Arabia making Rohingya Muslims pay?There is al-Shumaisi Detention Center in Jeddah. Of course, we cannot know the exact figure [of detained Rohingya] because there is no official number. However, I believe there are two to three thousand Rohingya Muslims held there. The camp is quite large, and I believe it has the capacity to host 30,000 people. It is possible to say that the conditions are not very different to a concentration camp.What kind of place is this? Isn’t is possible for humane living conditions to be established?We are talking about a place where communication facilities are very limited: there is no newspaper and television, and even mobile phones can only be provided by illegal means. It is essentially the life of a prisoner: your freedom is taken away. Some people can't get out of there for years. There are even those who cannot stand the conditions, lose hope for the future and commit suicide. The administration of Saudi Arabia has to provide refugee status to these victims and get them out of that camp immediately.Facebook says human rights report shows it should do more in MyanmarIs it correct that there is a circulation in place?Yes, they are sending people back to the countries they came from. Those who enter Saudi Arabia via Bangladesh are relatively lucky, because there is an agreement between the two countries. Bangladesh has to take back refugees from Saudi Arabia. However the situation is dire for those who entered Saudi Arabia from India, Pakistan and Nepal, because these countries do not want to take back the Rohingya. Many of those who stayed at Shumaisi for extended periods and went mad and committed suicide, are from these countries.These peoples aren’t thieves or murderers. They came to a Muslim country because they thought they would find comfort there as they could not take shelter in their own countries. Is this situation not under the umbrella of human rights? These people are not involved in any crime. Just like everybody else, they are normal people. There are some who have been held in the camp for five to six years. Besides, they have come there after already being victims. And they have had to suffer further. This is a human tragedy. There is, of course, a violation of human rights. However, as you will appreciate, there is no point in raising any issue in Saudi Arabia in the context of human rights. It's not ready for such a concept yet. It is unthinkable for anyone to go out on the street and make an ordinary, simple action regarding human rights. It's a geography where security concerns are overwhelming. Even its own citizens cannot raise their voices about freedoms, and I do not think that foreigners have such a luxury.What do you see in the future of Rohingya Muslims? Are you hopeful about tomorrow? Everything depends on the international community's response. It is clear that the Myanmar government committed genocide and a crime against humanity. If there is serious pressure on the administration of Myanmar, at least some fundamental rights will come to the agenda. Otherwise, it appears that there will be no possible improvement in the current situation. However, regardless of what is done or not done, we will continue to put up our own fight. We will continue to protect the dignity and rights of our people. We will raise our voice through every platform that we can find, because this is our cause of existence.Asian MPs urge halt to Rohingya repatriation plan amid safety fearsYou must have discussed the matter with officials. The headquarters of the Organization of Islamic Cooperation (OIC), which was established to defend the rights of Muslims, is in Jeddah where Rohingya Muslims are being subjected to a great tragedy. Have you shared the situation with them?I have elaborated on the matter in writing to both the Saudi authorities and the OIC. I asked them to help with the solution. To this day, I have not received a reply from either of them.Did the OIC really not deal with the issue?Unfortunately, they preferred to ignore the tragedy in their immediate vicinity. They know very well that the Rohingya are stateless people. In this world, there is a place where every community, all peoples can feel safe. Even the OIC did not back my people. This is a great shame. Can they say that they were not aware of the situation? We are a community that has been on the agenda of the world for years. Is there anyone who does not know of the pain we suffered? Moreover, we also informed them. We said: “There is a tragedy, please help.” We said this many times, but nobody cares. My people are treated like common criminals in the detention camp. What hurts the most is that the situation is pawned off as if it were supposed to be this way.Myanmar officials try to convince Rohingya to return, accept ID cardsRohingya genocide continues in Myanmar: Rights groupChina fails to stop UN Security Council Myanmar briefing
Saudi ‘detention camp’ amplifies suffering of Rohingya Muslims
A Denel spokesperson would not comment on any specific bid, saying that such negotiations take place on a state-to-state basis.
Ramaphosa's spokeswoman Khusela Diko said the president would only make a decision on the Saudi offer to partner with Denel once it was discussed by cabinet.
"No decision has been made yet," Diko told Reuters.
The source with knowledge of the Saudi bid told Reuters that Rheinmetall informally approached Denel's board last year aiming to deepen its collaboration with the company.
The source said Rheinmetall had, like Saudi Arabia, expressed interest in acquiring Denel's minority stake in RDM and other Denel divisions but was rebuffed.
A full year after Saudi Prince Mohammed bin Salman turned the Ritz Carlton hotel into a jail for the kingdom's elite, many still remain imprisoned, according to The Washington Post.The Saudi Attorney General said there were 56 people imprisoned earlier this year, and last month bin Salman said there were only eight still detained."But other people familiar with the detentions said the number is much higher, with 45 Ritz detainees still locked up," the newspaper said.A prominent member of the royal family that is still detained is Prince Turki bin Abdullah, son of the late King Abdullah bin Abdelaziz. He served as the head of the King Abdullah Foundation, a multibillion dollar charitable organization.EU urges Saudi cooperation with Turkish Khashoggi probeSome human rights experts, however, say bin Salman is planning to release some prisoners to cool tensions after the killing of Saudi journalist Jamal Khashoggi.Khashoggi, a Saudi national and columnist for The Washington Post, was killed on Oct. 2 after entering the Saudi Consulate in Istanbul.“They don’t want to do it, but they are under pressure, and they will do it to release some pressure,” Yahya Assiri, a Saudi human rights activist living in self-exile in London, told the Post.Saudi authorities released Prince Khaled bin Talal on Friday, who was critical of bin Salman's decision to strip the religious police of their power, according to the Post.Journalists in UK call for action against Saudi ArabiaThe shake up at the Ritz Carlton last year was an effort by bin Salman to solidify his power and eliminate rivals within the royal family, targeting the family of late King Abdullah, who is the brother of King Salman bin Abdelaziz.In addition to jailing Turki, King Abdullah's other sons Prince Muteib bin Abdullah, Prince Faisal bin Abdullah and Prince Mishaal bin Abdullah were also thrown in jail.The al-Hair high-security prison south of Riyadh is currently holding Adel Fakeih, 59, former mayor of Jeddah, Walid Fitaihi, 54, prominent physician, Amr al-Dabbagh, 52, chairman of the Jeddah-based Al-Dabbagh Group, Mohammed Hussein al-Amoudi, 72, a Saudi-Ethiopian businessman who had a net worth of $8.1 billion last year and Bakr bin Laden, Jeddah-based chairman of the powerful Saudi Binladin Group, according to media reports.“These are the families that helped Abdul Aziz unify and build the country in the 1920s and ’30s,” Robert Lacey, a British historian who has written extensively about Saudi Arabia, told the Post. “Now they are treated as criminals.”Saudi prince launches country's 1st nuke plant project
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Rheinmetall declined to comment.
Denel is grappling with an acute liquidity crunch and is struggling to pay salaries and deliver on roughly 18 billion rand ($1.29 billion) of outstanding orders.
Following seven years of modest profits, the company said last week it had made an operating loss of 1.7 billion rand in the 2017/18 financial year.
Sector observers say finding an equity partner is essential to Denel's survival.
However, the interest in the company from Saudi Arabia, which is accused of committing abuses in the war in Yemen and has admitted responsibility for Khashoggi's death, has spawned public debate in South Africa.
South African Foreign Minister Lindiwe Sisulu said last month human rights would be considered in any deliberations over a potential Saudi deal.