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The Democratic Alliance (DA) believes that it is outrageous for Popo Molefe, Chairperson of the Armscor Board, Sipho Thomo, suspended Chief Executive Officer of Armscor, and senior staff to spend nearly R 3 million on attending international defence exhibitions all over the world.

In the Armscor 2008/2009 annual report, Sipho Thomo complains that Department of Defence transfer payments over the past three years amounted to a decrease in real terms, and because of that there is "a long term risk that Armscor may not be able to fulfil its mandate". And yet in a reply to a parliamentary question Armscor bosses reveal that they spent nearly R 3 million on attending international arms shows all over the world.

The reply to the parliamentary question reveals that:-

A total of R2 902 843 was spend on the cost of flights, accommodation, transport as well as S&T for attending eight defence exhibitions in countries including Malaysia, France, Qatar, Pakistan, South Africa, UAE, Brazil and the United Kingdom.
A total of R1 380 503 was spent on flights including first class flights and business class flights international class flights. The most expensive flight was R 95 924.00 for Popo Molefe, Chairperson of Armscor, and his wife to fly to London for the DSEI defence exhibition in London between 08 September 2009 and 11 September 2009.
A total of R1 148 735 was spend on hotels including five star hotels such as The Shangri- La in Malaysia and Sheraton Khalidaya in the UAE. The most expensive hotel stay was R72 792.00 for Sipho Thomo, suspended Chief Executive Officer of Armscor, in the Sheraton Khalidaya for the IDEX 2009 defence exhibition in the the UAE between 22 February 2009 and 26 February 2009. Even more shocking is that R 12 382.00 was spent on accommodation for Sipho Thomo at the Radisson - while attending the AAD 2008 defence exhibition in South Africa between 17 September 2009 and 21 September 2009.
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 the DSA 2008 defence exhibition in Malaysia between 21 April 2009 and 24 April 2009 and the IDEX 2009 defence exhibition in the UAE between 22 February 2009 and 26 February 2009. Quite why it was necessary for General to attend the defence exhibitions at Armscor's expense is not clear.

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.

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