Armscor has again achieved a clean audit report with no qualifications from the Auditor-General.
This achievement solidifies the entity’s prudent approach and adherence to good corporate governance, Armscor chief executive Kevin Wakeford said.
He also expressed his appreciation to the Armscor board which “steered us in the right direction”.
“We are pleased to again have received an unqualified audit report which has been sustained from previous years. We are committed to uphold this standard and ensure we improve our financial and operational efficiencies despite challenges.”
Armscor has delivered on all goals set in the service level agreement (SLA) with the Department of Defence (DoD) for the 2016/17 financial year. These include efficiency in the complex acquisition mandate, execution of defence technology, research and evaluation.
Wakeford noted the goals were met in spite of a reduction in operating expenditure.
As part of the implementation phase of its turnaround strategy, Armscor have moved quickly to leverage existing assets to generate revenue. The sustainability unit has brokered the sale of military equipment to other African countries.
Additionally, Wakeford notes there is “steady progress on property leveraging projects such as Defence Intelligence HQ and engagements with Cabinet’s Safety and Security cluster in offering complex acquisition services”.
In the financial year under review Armscor achieved a net surplus of R46.5 million and recorded “a healthy liquidity and solvency position”. Overall, core business projects and corporate goals set for the year were achieved.
Armscor, according to Wakeford, is levelling the playing field by supporting the entrance of small, medium and micro-sized enterprises (SMMEs) into the defence market and participating in the Defence Sector Code. This intervention ensures SMMEs are incubated and empowered to be “formidable players in future with their expertise promoted not only in South African but also globally”.
Armscor is also committed to advancing the strategic initiatives of a developmental state as defined in the National Development Plan (NDP) and assist in eradicating poverty and inequality. Against this background the State’s defence and security acquisition agency embarked on a nationwide partnership with schools and higher learning institutions to explore sustainable ways of assisting teachers and scholars/students in STEM (science, technology, engineering and mathematics) subjects.
Wakeford sees the South African defence industry as a beachhead for the national economy and support for it ensures the sovereignty of the country.
“Armscor is geared toward supporting this role towards both its future and sustainability,” he said.