Armscor cutting the dockyard deficit


Tabling the Armscor annual report, its acting chief executive Advocate Solomzi Mbada said a new strategy to eliminate the financial deficit at the Simon’s Town dockyard was showing results.

This saw a reduction, although he did not specify an amount, in a R30 million deficit at the facility.

In his presentation to Parliament’s Portfolio Committee on Defence and Military Veterans (PCDMV) this week, Mbada said the dockyard renewal strategy would see the facility transformed into “an efficient, effective and economically viable operation”. To this end a number of commercial transactions with the local marine and fishing industry have been entered into. Additionally, “foreign organisations” are showing interest in the dockyard and its capabilities.

Mbada listed six dockyard projects and progress achieved. They are SAS Isaac Dyobha, docking essential defects (DED), phase one completed; SAS Mendi (F148), DED, activities completed; SAS Charlotte Maxeke (S102), Refit, ongoing; SAS Drakensberg (A301), DED, completed and closed; SAS Manthatisi (S101), DED, completed and closed; SAS Umzimkulu (M1142), DED, completed and closed; Tug Ndlovu, Refit, completed and closed.

Dry docking facilities were in full use to accommodate the SA Navy fleet and a number of commercial vessels.

Cost saving measures implemented in other Armscor departments and facilities saw a reduction in “some operational costs”.

“Overall,” Mbada told the committee, “the organisation performed well to achieve some of its strategic goals in accordance with the corporate plan. Where objectives were not achieved, measures are in place to ensure delivery”.

He also said Armscor received its second consecutive unqualified opinion from the Auditor General which he attributed to sound financial management and adherence to the principle of good governance.

“We would like to thank management and staff for commitment and diligence in delivering the mandate of the organisation. It is the hard work and dedication of staff and management; as well as the support of stakeholders that enabled Armscor to achieve these results.”

On the future Mbada said: “Armscor will continue to strengthen partnerships with key strategic stakeholders such as the Security Cluster to generate additional revenue, while also improving financial and operational efficiencies”.

The defence and security acquisition agency will continue efforts to sweat three properties with the intention of generating revenue. The properties are Gerotek, west of Pretoria; Alkantpan in Northern Cape; the Armscor sportsgrounds and an unused parcel of land south of the Armscor building.