Jonny Steinberg and Sapa
10 December 1998
Johannesburg — South Africa based military consultancy Executive Outcomes announced yesterday that it would close down with effect from January 1 next year.
The organisation attributed its closure to the consolidation of law and order across the African continent, but military observers said yesterday Executive Outcomes was probably planning to relocate following the promulgation earlier this year of tough anti-mercenary laws. "Over the past two years the majority of governments in Africa have endeavoured to secure and maintain law and order," Executive Outcomes director Nico Palm said yesterday. "The nature of these efforts do not justify our involvement."
Military experts greeted Palm's explanation with scepticism. "He appears to be putting a brave face on things," said Jane's Defence Weekly's Helmoed Heitman. "There are plenty of combatant and training opportunities for private firms at the moment. It seems that SA's new anti-mercenary laws have forced Executive Outcomes to open shop elsewhere."
Under the Military and Foreign Assistance Act, passed by parliament this year, those convicted of an offence involving mercenary activity forfeit fixed property to the state.
An organisation found to provide mercenary services could have its entire asset base confiscated. "SA's mercenary laws are much tougher than Britain's or the US's," Heitman said.
"Most countries find mercenaries extremely useful. They are employed to perform operations governments are hesitant to defend. I'd be surprised if Executive Outcomes staff stop working. There is a big market out there," he said.
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