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By Christelle Terreblanche
Cabinet has decided to pull out of the controversial multi-billion contract for eight Airbus A400M military freight aircraft.
The decision was announced by chief government spokesperson Themba Maseko a short while ago.
He was briefing media at parliament after cabinet's fortnightly meeting on Wednesday.
Maseko said going ahead with the deal - originally pegged at a price of R17 billion - would have committed the government to paying around R40 bn because of escalations in the costs.
Costs were driven upwards because of delays in the production and delivery of the aircraft.
The deal was concluded by the previous cabinet of former president Thabo Mbeki.
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