The DA wants Armscor to account for splurging more than
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.
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
No comments:
Post a Comment