Mon séjour en Afrique du Sud (Cape Town)

Peacekeeping US PRIVATEER SQUEEZES SA's UN PEACE ROLE IN CONGO Controversy dogs private military companies AUS-owned private military company appears to be edging SA out of its key logistical functions in the UN's peacekeeping mission in the Democratic Republic of Congo (DRC).

The Los Angeles company, Pacific Architects & Engineers (PAE) has a multimillion dollar UN contract for airfield services, cargo-handling, fire-fighting and the like - much the same functions that SA Air Force specialists have fulfilled since April 2001, when they joined the expanded UN peacekeeping mission in the DRC, known by its French acronym Monuc.

PAE has even hired away SA fire-fighters and cargo-handlers for better, dollar-based salaries - but at a higher cost to Monuc.

The company's involvement in Monuc provides a case study of bureaucratic corruption and wastage in UN peacekeeping operations, which critics say still persists. It also illustrates the ascendancy of private security firms over statutory forces in specialised peacekeeping operations around the world.

But the profiteers' involvement has brought controversy - especially with regard to Texas-based oilfield services company Halliburton and subsidiary Kellogg Brown & Root (KBR). Pentagon auditors' claim KBR may have overcharged the US government by more than US$100m for fuel deliveries for post-war reconstruction in Iraq. The US justice department is probing whether Halliburton helped pay $180m in kickbacks for contracts in Nigeria at a time when US vice-president Dick Cheney was group chairman.

PAE, in partnership with French logistics group Daher, entered the Monuc picture controversially when it won an open-ended, fixed-price contract worth $34,2m for airfield services on March 28 2001. PAE/Daher's bid was at least $6m higher than a competitor's, yet the UN's contracting officials rushed it through the selection process on grounds of "operational necessity".

But the company did not start work in the DRC for at least six months, during which time SA specialists carried out the functions reliably and more cheaply. The PAE/Daher contract would rise to about $78m in 2002/2003.

"We were irritated at first when they arrived on the scene," says SA National Defence Force (SANDF) senior staff officer for external operations, Col Johan van der Walt, "but we divided the work between us and carried on." SA didn't complain because the UN still reimbursed it for its role. But the costly overlap of functions troubled Monuc auditor Edwin Nhliziyo. In a report to UN headquarters, he complained that up to $17m of PAE/ Daher's functions were redundant because they were being done by SA. He calculated, for instance, that SA's airfield fire-fighting & rescue services would cost Monuc $2m compared with PAE/Daher's $7,5m. He also criticised the way the contract was handled, which brought him into conflict with his boss in New York and officials who had shepherded the PAE/Daher bid. Nhliziyo was recalled from the DRC.

Nhliziyo's repeated whistle-blowing, however, led to an official review which was highly critical of the PAE contract. At least two UN officials involved in the deal and attempted cover-up were quietly fired. The contract was cancelled and reopened to tender in early 2002.

PAE bid again, this time in partnership with a Monaco-registered logistics company, Es-Ko, and won. On April 1 2003, PAE/Es-Ko took over the contract from PAE/Daher - this time on a cost-reimbursable basis.

"All of the issues were resolved a long time ago," says PAE group executive for government services Barry Wright.

The contract price and other details are not known. A UN spokesman in New York could not provide details by the time the FM went to press. A UN official familiar with the contract, though, says that after bidding was reopened PAE was able to considerably expand its role in Monuc - with substantial reward.

Wright, speaking from Los Angeles, appeared unaware that SA was still competing. Private contracting of specialised services is the wave of the future, he said. "It's far cheaper to buy a widget or a contractor off the street, like shopping in a supermarket." Nevertheless, the private company's appetite for profit is still causing concern for SA. Three weeks ago, the SANDF sent its senior staff officer for peace support operations, Capt Charlie Ross, to the DRC to ask Monuc if it still wanted SA's logistical services.

"They said they were happy for us to continue, so we're carrying on," he says.

Nevertheless, SA has pared down the size of some cargo-handling teams.

"PAE provides most of the airfield services, refuelling and so on," says Ross. "In areas where we both operate, we bring the cargo to the ramp of the aircraft and PAE does the loading." SA still has about 100 specialists among its 1390-strong contingent, which is second only to Uruguay's.

Monuc reimburses countries R1028/troop/month, with an additional premium for specialists. It also pays about R70 per uniform, and reimburses countries that provide serviceable equipment and their own accommodation.