New Delhi, October 08, 2005 (PTI)

South Africa on Friday exuded confidence that defence cooperation with India would not be affected in the wake of New Delhi putting on hold deals with Pretoria-based arms firm Denel after the company allegedly tried to exert undue influence to win a deal.

"There would be future cooperation in the same (defence) area...between two fronts, whenever anything that is to be addressed, we are ready for dialogue to strengthen the relations," South Africa High Commissioner Francis Moloi told PTI here on the sidelines of a FICCI conference on South-South Economic Cooperation.

He said the issue of Denel was receiving attention from "higher authorities" of both the sides.

"We would better wait and watch till both the sides reach an understanding," he said.

The Defence Ministry in April had put on hold all negotiations with the South Africa's state-owned firm Denel following allegations that agents of the South African company had employed agents to influence defence purchases in India and had bribed Indian officials.

Technical trials of the Denel tracked guns were completed in 2002 and 2003, but more trials were awaited.