Armscor spent R3m on holidays

The DA wants Armscor to account for splurging more than

R3 million on luxury hotels and first and business-class air tickets "like Fortune 500 fat cats"

to attend international defence shows while complaining to Treasury about insufficient funds to carry out its mandate.

In a written reply to a parliamentary question by DA defence spokesman David Maynier, Defence and Military Veterans Minister Lindiwe Sisulu produced a detailed schedule of trips.

It details visits to Malayasia, France, Qatar, Pakistan, the United Arab Emirates, Brazil and the UK as well as journeys within South Africa between April 2008 and April 2009 - and shows that an SANDF general and the spouses of Armscor's top brass often tagged along - at Armscor's expense.

"The DA believes that it is outrageous for Popo Molefe, chairman of the Armscor Board, Sipho Thomo, suspended CEO, and senior staff to spend nearly R3m on attending international defence exhibitions all over the world," Maynier said yesterday

"The top management at Armscor always complain that they do not get enough money from government, but then rather than tighten their belts, they behave like Fortune 500 fat cats, flying first class, inviting spouses and guests along for the ride and staying at five-star hotels."

He pointed out that in the Armscor 2008/2009 annual report, Thomo, who is facing disciplinary charges, complained that the Department of Defence transfer payments over the past three years amounted to a decrease in real terms, and because of that there was "a long term risk that Armscor may not be able to fulfill its mandate".

Armscor's report showed a net decline in profits of R6.1m and a net loss of about R9m. This is despite the fact that the government transfer to the entity was over R50m more this year than last year's R479m, without which Armscor would have been R441.1m in the red at the end of the financial year.

"The DA will therefore write to Nyami Booi, Chairperson of the Portfolio Committee on Defence and Military Veterans, and ask that Sipho Mkwanazi, Acting CEO of Armscor, account to Parliament and provide a briefing on what austerity measures will be put in place to stop wasteful expenditure at Armscor."

He said a total of R2 902 843 was spent on flights, accommodation, transport as well as S&T for attending eight defence exhibitions.

Nearly R1.4m was spent on flights including first-class and business-class international flights. The most expensive trip was R95 924 for Molefe and his wife to fly to London for the Defence Services and Equipment International exhibition in London in September last year.

Hotel stays at luxury resorts like the Shangri-La in Malaysia and Sheraton Khalidaya in the UAE, amounted to nearly R1.15m. The UAE IDEX 2009 defence exhibition in February saw Thomo splurging R72 792 on a four-night stay at the Khalidaya.

Maynier said Thomo spent R12 382 on accommodation for another four nights at the Radisson in Cape Town during last year's Africa Aerospace and Defence expo.

A total of R197 450 was spent on first class flights and five star hotels for General Solly Shoke, Chief of the Army, who attended South Africa's Denel Saab Aerostructures exhibition in Malaysia in April and the UAE trip in February.

"Quite why it was necessary for General Shoke to attend the defence exhibitions at Armscor's expense is not clear," Maynier said.

• This article was originally published on page 2 of The Independent on Saturday on December 12, 2009

More O3 land machines

Cape Town - A deputy minister has bought herself a Porsche as her official vehicle, but Richard Baloyi, minister of public service and administration, insists no rules have been broken.

On Thursday it came to light that Hlengiwe Mkhize, deputy minister of correctional services, has bought herself a brand-new Porsche Cayenne as her official vehicle.

Taxpayers shelled out R760 000 for this luxury speedster, including accessories such as cruise control.

Nosiviwe Mapisa-Nqakula, the minister of correctional services, said in answer to a question from the DA in Parliament, that she has bought a Lexus LS460 worth R970 000.

Baloyi couldn't understand why the DA MPs continued to pose questions regarding expensive official vehicles, since the Cabinet has already "settled" the matter on various occasions.

'Used for state duties'

According to a statement, the minister is concerned about opposition MPs' stubbornness regarding the matter.

"Official vehicles don't belong to the ministers. They are and remain state property, and simply serve as a tool used by ministers to fulfil their duties," said Baloyi.

He continued along the same vein, stating that the ministerial manual entitles each minister to buy two vehicles - one for Cape Town and one for Pretoria. The price of the vehicle may not exceed 70% of the minister's annual compensation package.

This package is worth over R1.7m.

"MPs must understand that no minister has broken the rules," said Baloyi... - News24

Skypigs in Taxis from July to July

The South African Air Force (SAAF) spent six times longer flying VIPs than it did training pilots in fighter craft last year. This is despite a chronic shortage of pilots that experts say has already wiped out the country's air-combat capabilities.

The department of defence's 2008-09 annual report records 325 flying hours for air-combat capability in the SAAF's medium fighter craft Gripens and Cheetahs. By contrast the VIP fleet flew 1932 hours in the same period -- 1570 hours domestically and 362 internationally.

The Mail & Guardian has established that Defence and Military Veterans Minister Lindiwe Sisulu made 23 trips using the VIP fleet from September to October 2009, on three occasions travelling with her son.

The 325 flying hours for medium fighter craft recorded last year represents a plummeting from 2 448 hours in 2007-08 and 2 084 hours 2006-07. The SAAF has cited budgetary constraints in Parliament for the decline.

Arms deal whistle-blower Richard Young said that the SAAF did not have combat-ready capability and that the country has only six capable jet fighter pilots. And DA defence spokesperson David Maynier said Sisulu’s recent trips could have cost taxpayers as much as R2,3-million.

But defence department spokesman Ndivhuwo Mabaya told the M&G "the costs [of flying VIPs] actually do not exist as this is part of the SAAF operations on a daily basis". "The fixed cost to the SAAF as per our own price when we charge other departments is R14 748,54 per trip with a special rate for internal use by the minister," he said.

"It must be noted that this cost will be incurred [whether] a minister flies or not, because the planes will have to be used for training, pilots paid, etc, and runway[s] will still have to be maintained," he said.

More Cabinet members should use the air force, Mabaya said, "as [this] will provide real flying time for the pilots and also because resources for training are already allocated and many of our senior pilots have cited lack of flying time for leaving the air force".

Asked specifically about the rates for flying Sisulu Mabaya said: "We fly planes as our main business, [so] we can actually fly Cabinet members for free. The more hours we fly the better for our pilots and the country."

Young said the notion that these flights were free was "simply nonsense": "Flying not only has costs, but reduces the life of the aircraft." And "one does not fly a Cabinet minister about in order to train pilots," he said.

"Flying hours are required in all types of aircraft, but there should be maximum use in true combat training aircraft such as Pilatus, Hawk and the two-seater Gripen, and a minimum in other classes," Young said.

Since the beginning of the year Sisulu has refused to answer DA parliamentary questions about her use of the SAAF VIP fleet, and has not comprehensively responded to questions about the 222 national and international flights for VIPs undertaken by the SAAF.

The DA has in previous years routinely requested, and received, a detailed record of VIP flights from the defence department. This year the department stopped providing these records.

Despite this, records of VIP flights for the period January 1 2007 to October 16 2008 tabled in Parliament suggest Mabaya's flight cost estimations miss the mark by a mile. The records show that the cheapest national VIP flight was made by former deputy president Phumzile Mlambo-Ngcuka in May 2007 from Waterkloof air force base in Pretoria to Port Elizabeth and cost R32 651,75.

"From time to time it may be necessary and justified for the minister to use military aircraft to deal with urgent matters relating to the defence force, especially after the military unions trashed the Union Buildings," Maynier said. "But this is a very poor attempt to 'spin' the routine use of military aircraft by the minister.

"It is simply not cost-effective to use military aircraft if the average cost per domestic flight is R100 000. The minister ought to be making use of commercial aircraft for domestic flights, which would save the taxpayer more than R90 000 per domestic flight."

In August, the defence ministry told Parliament that 48% of posts for combat pilots were vacant, as were 34% of posts for helicopter pilots and 30% of posts for transport pilots.

At the time Sisulu said she was "personally really satisfied with the state of readiness" of the defence force. - M&G

Why fly when you can claim twice the fare

MPs might still be skimming off thousands of rands in taxpayers money through "exorbitant" travel costs despite the lessons of the 2003 Travelgate scandal, warned Independent Democratic Party (ID) leader Patricia de Lille.

De Lille asked Parliament to "clamp down" after allegations arose that some MPs were "supplementing their salaries with R30 000 to R40 000 a month" by choosing to travel by road to their constituencies as this saw them paid out in cash for mileage.

Some MPs had allegedly submitted "exorbitant road travel claims" that often cost Parliament more than double the cost of air tickets, De Lille said.

Parliament's travel rules have been tightened repeatedly over the past few years, but De Lille believes a few MPs have found loopholes.

Those who travel more than 800km to their constituencies or homes are allowed to claim R1 150 for an overnight hotel stay on both legs of a return journey if they are travelling by car. Road travel also secures cash pay-outs for mileage, although MPs have to forfeit two of their 86 free annual air tickets for every return journey.

"I find it incredible that political parties in Parliament have not learnt from Travelgate and clamped down on MPs who insist on looting public money," she said yesterday.

"This goes against the Speaker's challenge to newly elected MPs in his budget speech earlier this year to exercise greater responsibility in the use of parliamentary resources."

The ID has tried to substantiate the allegations by requesting a detailed breakdown of travel records for all MPs from National Assembly Speaker Max Sisulu, suggesting that Parliament's oversight responsibility should not stop at holding the executive accountable for the travel expenses, but that MPs should be under scrutiny and "lead by example".

In a letter last week, however, Sisulu declined the request, stating the right to privacy and citing "a security risk" to MPs.

He suggested De Lille take her concerns to Parliament's Joint Rules Committee or use access to information legislation to get the information, which would afford MPs the chance to argue why their details should not be disclosed. - Pretoria News

New source of O3 unearthed...

The police's R150m private jet, which was purchased for "operational purposes", is being used to ferry ministers around. (from News 24)

It emerged on Tuesday that ministers had travelled on the plane 12 times between September last year and March this year, including visits to provinces shortly before the elections.

Meanwhile, the air force has a special fleet of planes to take ministers and highly placed officials to their destinations.

Last year, Die Burger reported how the unique jet from the US landed quietly at Lanseria Airport on a Friday night.

Police at the time defended the expensive purchase, saying that the private jet was acquired for operational purposes and to replace the "ancient" Beechcraft which dated back to 1969.

The new Cessna Citation Sovereign can fly for 5 000 continuous hours and land on short runways. The jet plane is therefore able to deploy task force members at almost any location in all nine provinces, and is suitable for use all over Africa.

Minister of Police, Nathi Mthethwa, answered a parliamentary question from DA MP Dianne Kohler Barnard on Tuesday, indicating that the jet was not always used for the purposes for which it had been acquired.

The former minister of safety and security and his deputy were flown to an event in Kimberley in September 2008. They also attended "police operations" in December 2008 in George and Cape Town and in January this year, attended the opening of a police office in Ulundi.

The jet was also used in at least nine other trips, for ministers - it is unclear who - to visit provinces shortly before the general election.

Ministry of Human Settlements prefer Hotels

Tokyo Sexwale's ministry of human settlements spent an average of R72,000 a day over 103 days on wining, dining and hotels...

In the past seven months Sexwale, his deputy Zoliswa Kota-Fredericks, the director-general, Itumeleng Kotsoane, and his deputy spent more than R7.4-million on hotel accommodation, restaurants and travel.

Between April 2008 and October 20 this year, R59-million was spent by the department.

This emerged in a written parliamentary response to questions posed by the DA.

In the past seven months, Kotsoane splurged close to R30,000 in restaurants and more than R1-million on travel, while his deputy spent R800,000 on travel.

The department of public works spent R132-million in one financial year on travel, hotel accommodation and restaurants.

Spokesman Lucky Mochalibane said the department had "remained within the budget under goods and services".

Between April and October this year, more than R8-million was spent on hotel accommodation and restaurants, while R24-million was spent on travel. - Times Live

Pandor panders to ego with TWO new Mercedes ML350

The science and technology department has spent R1.4m on TWO Mercedes-Benz ML350's for Minister Naledi Pandor. (News24)

In her reply, Pandor said one of the previous two vehicles had a gearbox fault and the cars had registered 141 000km and 106 000km respectively.

A reply to another question, showed the police department had spent R1.3m on replacement vehicles for Minister Nathi Mthethwa - two BMW X5s.

Extras included reverse cameras, navigation system, and sport suspension, coming to about R200 000.

In his reply, Mthethwa said the two previous vehicles - a BMW X5, 2003 model and an Audi A8 2006 model, were both "mechanical[ly] unsound".

How cats always land on their feet....

The Fat of the Land

President

Annual salary: R2 040 780

Corporate credit card

State funeral with full military ceremonial honours

Presidential guest house

Full salary for life after leaving office

Security for life after leaving office

R1,3-million annual contribution to medical aid

Free furnished accommodation in Cape Town and Pretoria

Free cleaning and maintenance of these residences

R3-million for two cars for Cape Town and Pretoria

Daily allowance when travelling abroad for tips, room service, reading material and normal liquid refreshments

Deputy president

Annual salary: R1 836 745

State funeral with prescribed military ceremonial honours

Corporate credit card

Full salary for life after leaving office

Security for life after leaving office

R1,3-million annual contribution to medical aid

Free furnished accommodation in Cape Town and Pretoria

Free cleaning and maintenance of the residences

R3-million for two cars for Cape Town and Pretoria

Ministers

Annual salary: R1 561 223

Rent-free house in either Cape Town or Pretoria

Domestic worker

Corporate credit card

Two official cars in Cape Town and Pretoria to the value of R1-million each

Free government transport for spouses and dependants

30 business-class tickets annually for minister and spouse for discretionary use

First-class international travel for official trips

Six economy-class tickets annually for children

Spouses can travel on official trips and enjoy same benefits as ministers

Use of South African Air Force aircraft

Free travel on the Blue Train

Use of VIP lounges at airports

Private office with 10 staff members including four secretaries

Official funeral

Security worth R100 000 a year at private residences

Free telephone and internet services

(from the Mail and Guardian)

BMW's for everyone!!!

New Communications Minister Siphiwe Nyanda has treated himself to a pair of German luxury cars, one to use in Pretoria and the other in Cape Town. (from the M&G)

In a written reply to a parliamentary question, posed by the Democratic Alliance, he said the new vehicles -- both 2009 BMW 750i models -- cost R1 135 500 each.

His reply also reveals the cars are fitted with R148 400 worth of extras, including, in the Pretoria-based vehicle, a R23 400 "rear-seat entertainment" system and a R5 600 "high-gloss satin chrome" paint job.

Nyanda said the existing official vehicles available for him had either done more than 120 000km, or were more than five years old, and in terms of the Cabinet-approved Ministerial Handbook he was entitled to new ones...

SAA to honour JZ at Inaguartion as thanks for years of support.

SA Airways would celebrate Jacob Zuma's official inauguration as president by performing a flyover above the Union Buildings in Pretoria, the airline said on Friday.

"At 12.02pm on the inauguration day, three SAA aircraft will be visible over the official residence of the presidency," it said in a statement.

The aircraft that would be performing the flyover were an Airbus A340-300 and two A340-600s. (BIG favourites of Jacob Zuma, who has said that he is extremely excited to see the airplanes from the underside... "It's a first... I very much look forward to seeing how the people SEE me. I am very much excited!")

They would then return to OR Tambo International Airport. (Where they will pick up the next shipment of drugs to Europe)

While two pilots were required to operate the aircraft, an additional pilot would accompany each aircraft as a safety measure. (Remember kids... "Safety First") (From iAfrica)

All the president's expenses

Cape Town - Picture the scene: Jacob Zuma, newly installed president of the Republic of South Africa goes abroad on a state visit and is introduced by his hosts. "The president of South Africa, President Zuma and Mrs Zuma ... and Mrs Zuma ... and Mrs Zuma ... and Mrs Zuma."

An unlikely scenario, as Zuma will, hopefully, announce the name of his first lady shortly. But, far-fetched as it might sound, the spouses of South Africa's first polygamist leader will be afforded equal status in terms of the Customary Marriages Act.

This is an unusual situation by modern, global standards. For South African taxpayers, it will be a very expensive situation.

With his mounting legal costs, as well as the high price of being a polygamist with numerous children, Zuma looks set to become South Africa's most costly president yet.

When he appeared in the Pietermaritzburg High Court on charges of fraud and corruption last Wednesday, his case had already cost South African taxpayers R10.7m. This is without factoring in the costs of the state in instituting the prosecution, which legal experts say could add up to just as much as Zuma's legal costs.

Die Burger recently reported that the Friends of Jacob Zuma Trust believes the total cost of prosecuting Zuma could already have reached the R100m mark and that the trust is now threatening to bring a case against the NPA on the basis that it is wasting public money. And his main trial hasn't even begun.

Cost of Motlanthe presidency

But, legal costs aside, the costs of a Zuma presidency are already raising eyebrows in opposition circles.

Freedom Front Plus Western Cape leader Corné Mulder, who has researched some of the Zuma cost implications, said one factor that is often forgotten is the cost of the Kgalema Motlanthe presidency.

"It is because of Zuma's trials and tribulations that we had to bring in Motlanthe as president. Even though he was appointed as an interim, substitute president for just six or seven months, Motlanthe will be entitled to a president's salary for the rest of his life," Mulder said in an interview with The Witness.

"As president himself, Zuma would earn a salary of more than R2m a year by the time he takes the position - and will receive the same amount as pension for the rest of his life."

While the costs of his dependents are hard to calculate, there is much speculation that these could amount to millions, on top of Zuma's salary.

"Remember in the Schabir Shaik trial, it emerged that Shaik gave Zuma an interest-free loan of more than R1m so that he could meet his obligations to his extended family. Shaik also assisted him with the education of his children. There are huge costs involved in maintaining such a large extended family," said Mulder.

Extended family

Zuma, who is divorced from Nkosazana Dlamini-Zuma and whose second wife, Kate Mantsho, committed suicide, currently has two wives. They are Sizakele Khumalo from Nkandla in northern KwaZulu-Natal and former nurse, Nompumelelo Ntuli. He plans to take his third wife, Thobeka Mabhika, soon.

He declines to answer questions about his wives, but there is talk of another wife waiting in the wings. He is similarly reticent about the number of children he has, but it is speculated to be between 12 and 18.

In terms of Parliament's Handbook for Members of the Executive, Zuma would, in addition to his basic salary, receive a housing allowance of 10% of his salary to contribute to a private home. On top of his official vehicles, he would also get a car allowance, equal to 25% of his annual salary, for the purchase of a private car.

The state will contribute an amount equal to 17% of his salary to a pension fund and will pay two thirds of his medical aid contribution covering his family. He will also be insured by the state for accident and life cover.

When he travels on official business, he may be accompanied by his spouses - (the handbook makes allowance for spouses in a polygamous marriage) and those dependent children who cannot remain at home are entitled to accommodation and subsistence at the expense of the state. The same arrangement applies to travel abroad.

In addition to their travel on business, members and their spouses are jointly entitled to 30 domestic business-class air tickets each year at the expense of the state. Dependent children are each entitled to six domestic economy-class tickets each year.

VIP protection, transport

In terms of state obligations to the president, Zuma will also be entitled to travel on the state's fleet of VIP aircraft, as well as receive VIP protection.

"It's difficult to estimate what these costs will amount to," Mulder said. "All he needs to do is list the individuals as dependents."

Mulder continued: "In terms of security, this must be provided for the president's household and children. The problem in the case of Zuma is that his households and children are stretched over three provinces. There will, therefore, be security costs in Cape Town, Gauteng and KwaZulu-Natal. There is no ceiling limit with regard to the amount involved and to the number of dependents who can benefit."

In terms of state transport, Mulder said Zuma is entitled to make use of this already because he is a former deputy president. "As president, he and all his wives will be able to use state transport. There is no limit to the amount involved. Whatever transport needs they have must be met."

Democratic Alliance MP Gareth Morgan, who has done research on transport costs, found that when he was deputy president, Zuma "showed a tendency" to use the presidential aircraft "far more than anyone else".

"It's hard to talk about absolute numbers," Morgan told The Witness. "But I have followed the use of the four VIP squadron jets for five years. The one thing that stuck out about Jacob Zuma was the number of flights he took between Pretoria and Durban. He has a home in KwaZulu-Natal. Many of these flights were on successive days. There is no justification for that level of flying if a person plans properly."

'Mythical' presidential handbook

According to Morgan, presidents and deputy presidents are currently bound by provisions in the "mythical" presidential handbook. "I call it mythical because nobody has seen it. It was one of the outcomes of the investigation after then deputy president Phumzile Mlambo-Ngcuka's trip to Dubai on a private holiday. The public protector recommended that guidelines on presidential trips should be finalised. As far as I know this never happened.

"I see no reason why Zuma's particularly large family would be precluded from travelling on the state's jets. We can disagree with the amount of flying, but according to the public protector, the travel arrangements of the president and deputy president - including for holidays - are controlled by the VIP unit which means they will always fly on VIP Air Force Squadron jets and only when a jet is unavailable will they go on a commercial flight.

"He will get these flights at will, including all holidays. When Mlambo-Ngcuka went on her trip, the public protector said that even when the president or deputy president conducts a holiday, they are entitled to use the jets. When Mlambo-Ngcuka flew to Dubai, she took not only her husband, but also a friend's child. She filled the plane with whom she wished.

"For instance, the Nkwazi jet can take a maximum of 12 people. With Mbeki, they tended to include a medical doctor, the minister in the presidency and his security detail. I wouldn't go so far as to say we will have a situation where a whole lot of wives will be travelling on the airplane with him. But it is quite plausible that his wives will be able to fly and I see no reason in terms of customary law why any of Zuma's wives can be prevented from doing so. In terms of protocol they would be able to travel with him if there is space."

Education

As part of a list of 783 payments allegedly made by Shaik and his companies between 1995 and 2005, he allegedly made payments to a number of educational institutions for the Zuma children, including to Holy Family College, Sacred Heart School, University of Zululand, Empangeni High School, St Catherine's, Cape Technikon and the International School of Cape Town.

But the state will pay to get the Zuma offspring to school - members have one official vehicle for use in Cape Town and another for use in Pretoria, and official vehicles may be used for private purposes such as transporting school-going children to school.

The government will also provide transport for his children to school provided they do not exceed 15 kilometres in one direction.

Similarly, when the president is away from home on official business, any spouse or family member who stays at home will be entitled to transport by the state and can be taken wherever they need to go.

On the subject of taxation, the handbook states: "Members are responsible for acquainting themselves with their own tax obligations."

As a private citizen, Zuma failed to render his own income tax return for eight years from 1995 to 2003, when Shaik submitted and signed them on his behalf. He did not disclose any of the payments he had received from Shaik and others in those late tax returns.

South African taxpayers can only hope that while they foot the bill for his and his family's expenses, he will, as president of the republic, at least pay his own taxes.

- The Witness