Question NW1045 to the Minister of Defence and Military Veterans

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17 May 2018 - NW1045

Profile picture: Marais, Mr S

Marais, Mr S to ask the Minister of Defence and Military Veterans

(1)What was the total (a) amount spent by Armscor on legal costs in the past five financial years, (b) amount of (i) external legal costs and (ii) human resource related cases such as unfair dismissals and (c) number of cases that Armscor (i) won, (ii) was the default victor due to staff members not being able to fund the cases against Armscor; (2) (a) what is the name of each procured item that is still with the service provider and/or subcontractor and (b) what is the total rand value of each procured item for the past three years; (3) whether Armscor can account for each rand spent (a) from the Special Defence Account and (b) on the assets procured in the past 3 financial years; (4) whether all unaccounted assets plus their value have been reported to the Auditor-General (AG) and included in the Annual Financial Statement and AG reports?

Reply:

During the past five years Armscor was involved in the following litigation:

a) Beverly Securities v Armscor

The total amount in respect of legal costs from 1 April 2013 is R9 305 677 which represents the costs of external legal representatives, Gildenhuys Malatji in South Africa and Rui Pena & Arnaut in Portugal, including Counsel’s fees in South Africa and Portugal.

b) Quaker Peace Centre v The Government of the Republic of South Africa and Armscor

The total amount in respect of legal costs is R775 253 which represents the costs of external legal representatives, Maluleke, Seriti, Makume, Matlala Inc., including Counsel’s fees.

c) Steradian v Armscor

The total amount in respect of legal costs is R210 023 which represents the costs of external legal representatives Maluleke, Seriti, Makume, Matlala Inc, including Counsel’s fees.

d) New Generation Arms Management (PTY) Ltd v Armscor

The total amount in respect of legal costs is R69 431 which represents the cost of external legal representatives Gildenhuys Malatji Attorneys

e) MP Ngoasheng v Armscor

No legal costs have been invoiced up to date by the external legal representatives, Maenetja Attorneys.

f) Van Tonder v Armscor

The total amount in respect of legal cost is R1 228 380 which represents the cost of external legal representatives Mamabolo Phajane Attorneys, including Counsel’s’ fees.

QUESTION 2

What is the name of each procured item that is still with the service provider and/or subcontractor and (b) what is the total rand value of each procured item for the past three years;

RESPONSE

There are no items that are still with the service provider. All procured items are paid for upon receipt.

QUESTION 3

Whether Armscor can account for each rand spent (a) from the Special Defence Account (SDA) and (b) on the assets procured in the past 3 financial years;

RESPONSE

Armscor can account for all payments made in relation to the SDA.

QUESTION 4

Whether all unaccounted assets plus their value have been reported to the Auditor-General (AG) and included in the Annual Financial Statement and AG reports?

RESPONSE

All payments made in relation to the SDA are sent to Department of Defence for inclusion in the Annual Financial Statements and submitted to the AG annually.

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