Question NW1244 to the Minister of Defence and Military Veterans
23 May 2018 - NW1244
Esau, Mr S to ask the Minister of Defence and Military Veterans
(1)What are the full details of the records of the special defence account of assets and stock at contractors under the control of Armscor in terms of the service level agreement between Armscor and the Department of Defence for the past four financial years, specifically reflecting stock figures as at 31 March in each specified year; (2) what are the full details of the records of audits conducted on assets and stock for the past four financial years; (3) whether all assets and stock at contractors have been (a) accounted for and (b) verified by Armscor (i) in the past three financial years and (ii) since 1 April 2018?
Reply:
Audited and verified assets with the following values were kept at contractors premises during the past four years:
2017/2018 = R 560,422,824.85
2016/2017 = R 563,172,391.85
2015/2016 = R 518,504,815.31
2014/2015 = R 509,181,571.60
Tangible and re-usable items are mainly the following:
a) Research and development items
b) Manufacturing equipment
c) Test and evaluation equipment
d) Maintenance equipment and tooling
e) Vehicles and moving equipment
f) Office equipment
g) Computer equipment
h) All demonstration and development models that are not intended for destruction during tests.
In addition to the above, with respect to stock, Inspection /Release/Acceptance Certificates are issued by Armscor Quality Assurance Representatives following successful inspection of each stock or item presented for acceptance. The certificates issued by the Armscor Quality Assurance Representatives clearly illustrate the delivery address of the items accepted, and which are retained at contractor premises.
QUESTION 2
What are the full details of the records of audits conducted on assets and stock for the past four financial years;
RESPONSE
Assets are physically verified by Armscor verification officers on an annual basis, and reports in this regard are published.
The process of verification of assets was audited by Armscor’s Internal Audit Division during 2016/17, and action plans relating to the recommendations for the improvement of the verification process are in the process of being executed.
QUESTION 3
Whether all assets and stock at contractors have been (a) accounted for and (b) verified by Armscor (i) in the past three financial years and (ii) since 1 April 2018?
RESPONSE
a) Assets and Stock at Contractors are all accounted for:
b) Every financial year, Armscor Assets Verification Officers conduct physical verification audits on all the Assets at Contractors. The process of verification of assets and stock at contractors for the 2018/19 financial year commended on 1 April 2018, and will be completed by 31 March 2019.