Question NW1569 to the Minister of Public Enterprises
06 September 2017 - NW1569
Mazzone, Ms NW to ask the Minister of Public Enterprises
(1) What are the full details of each contract that Denel signed with a certain company namely VR Laser South Africa in terms of (a) the contents, (b) the date on which each contract was signed, (c) what each contract is for and (d) what amount each contract is worth; (2) Whether each contract complied with the National Treasury requirements; if not, in each case, why not; if so, what are the relevant details in each case?
Reply:
1. Denel SOC Ltd has three (3) divisions that do business with VR Laser South Africa: Denel Vehicle Systems (DVS, Denel Land Systems and LMT. The details of the work contracted are indicated in the table attached hereto and marked as Annexure “A”.
2. We confirm all contracts comply with the National Treasury requirements. Placement of each Purchase Order is compliant with the CSD registration processes. As DVS was acquired in the middle of 2015, Denel applied that DVS be exempted from complying to the PFMA for a period of 1 year being until 31 March 2016
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ANNEXURE “A” |
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Denel Divisions and Products |
Contract Date |
Description of Services |
Value of the Transaction |
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Denel Vehicle Systems (DVS)
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01/04 to 18/12/2015 |
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R2 175 935.00 |
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12/2016 to date |
R9 797 856.83 |
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12/2016 to date |
Power Pack sub-assembly fabrication –Gear Ratio |
R11 594 033.28 |
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Denel Land Systems
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10/2003 to 05/2017 (historical contracts |
Industrialisation of the Casspir vehicle |
R176 467 542.79 |
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2016/2017 (current contracts) |
Industrialisation of the Casspir |
R16 437 626.62 |
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05/08/2014 to 21/10/2016 |
Fabrication of the Badger hulls |
R235 858 970.57 |
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27/08/2009 to 05/06/2017 |
Approved single source supplier of armoured steel |
R98 902 847.38 |
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LMT Products (Pty) Ltd (LMT)
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05/2013 to 08/2016 |
VR provides LMT with:
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R55 148 736.39 |
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T O T A L |
R 516 382 785.86 |