Dresselhaus, Weakley and Camm went on trial before Judge Collins Parker on charges based on allegations that they had been involved in a corrupt and fraudulent scheme through which a scrap dealership owned by Dresselhaus and Weakley, Dresselhaus Scrap CC, bought scrap copper from Telecom Namibia at prices that were manipulated to be lower than the prices that were supposed to be paid for the scrap metal.

It is also alleged that bribes or kickbacks totalling some N$315 550 were paid by Dresselhaus and Weakley to another former Telecom Namibia manager, Lutchmanan Ivan Ganes, between November 1998 and December 2000.

Further "commissions" totalling some N$984 698 were also paid by Dresselhaus and Weakley to Ganes between April 2000 and September 2000, and these "commissions" were then shared between Ganes and the accused men, it is also charged.

Ganes pleaded guilty to 13 counts of fraud in the High Court in May 2005.

Having implicated Dresselhaus, Weakley and Camm in a plea explanation and evidence that he gave during his trial, he was sentenced to an effective two years' imprisonment and a fine of N$100 000 in mid-June 2005.

Although not present yesterday, Ganes featured prominently in the first day of proceedings.

In a lengthy plea explanation that was submitted to Judge Parker, Weakley admitted that he had paid a total of N$356 550,90 to Ganes between October 22 1998 and December 18 2000, using either cheques drawn on his own account or cheques of Dresselhaus Scrap CC to pay this money.

Weakley however denied that these payments were made with any corrupt motive, as is alleged in the indictment.

In the plea explanation he remained silent on what the purpose of these payments to Ganes had been, though.

It is alleged in the indictment that Telecom Namibia and Dresselhaus Scrap CC had agreed that Dresselhaus Scrap would be buying scrap copper from Telecom Namibia at a rate of 80 per cent of the copper price at the London Metals Exchange (LME) at the time of each transaction.

The agreement was also that Dresselhaus Scrap was not to charge Telecom Namibia for the costs - such as labour costs - that it incurred with collecting the scrap copper at various locations across Namibia, it is claimed.

It however turned out that on a number of occasions a rate of 70 per cent of the LME copper price - instead of the agreed rate of 80 per cent - was used to calculate the prices that Dresselhaus Scrap had to pay Telecom Namibia for scrap copper, while the wrong LME copper price was also used on some occasions, the wrong currency exchange rate was sometimes used, and Dresselhaus Scrap was in effect allowed to charge Telecom Namibia for dismantling obsolete phone lines from where it collected scrap copper, it is charged.

According to Weakly in his plea explanation, though, it was agreed with Telecom Namibia around mid-2000 that Dresselhaus Scrap would pay for the copper it bought from Telecom Namibia at a rate of 70 per cent of the LME price, rather than the 80 per cent rate previously agreed.

This change to the previous written agreement was made with the full knowledge of the senior management of Telecom Namibia and was openly implemented with its knowledge and consent, Weakley claimed.

The reason for changing the rate was because the previously agreed price had become uneconomical for Dresselhaus Scrap, Weakley stated.

From July 2000, Dresselhaus started receiving invoices, prepared by Ganes as Telecom Namibia's Procurement Manager, from Telecom Namibia on which the amounts it had to pay the parastatal for scrap copper had been calculated at the 70 per cent of LME price rate.

He had no reason to suspect these invoices were irregularly issued in any form, Weakley stated.

Shifting the blame to Ganes, Weakley claimed: "During all material times I was unaware that Ganes was lax in the execution of his duties, incorrectly calculating the invoices due to Dresselhaus and was receiving bribes on an ongoing basis from a number of entities with which Telecom was contracted.

That Ganes accepted bribes only came to light during or about February 2001 when one John Grobler made a complaint to the senior management of Telecom.

The fact that Ganes had been calculating invoices of Dresselhaus incorrectly only came to light during or about April 2001."

He however was aware that Ganes had been failing to promptly process invoices that had to be tendered to Dresselhaus Scrap, and he made several complaints to Telecom Namibia in this regard, Weakley also claimed.

The first witness that the prosecution, represented by Deputy Prosecutor General Danie Small, has called, Peter Cromhout, is set to continue giving evidence when the trial continues today.

Cromhout, a chartered accountant and certified fraud examiner working with PriceWaterhouseCoopers, has testified so far that on seven Telecom Namibia invoices to Dresselhaus Scrap checked by him, the amount that Dresselhaus Scrap was required to pay for scrap copper bought from Telecom Namibia was understated by N$542 094,68.

Those invoices were prepared by Ganes.

With another six payments that Dresselhaus Scrap made to Telecom, where the calculations of the amounts to be paid for scrap copper were only done by Ganes on a spreadsheet, the amounts to be paid were understated by N$647 039,62, Cromhout testified.

The trial is set down on the court roll up to February 29.

Dresselhaus and Weakley are being represented by Louis Botes and Johannesburg senior counsel Willie Vermeulen, on instructions from lawyer Sarel Maritz.

Camm is represented by George Coleman, on instructions from Andreas Vaatz.

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