Parliamentary Question: DoDMV: Armscor

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Ms D Kohler-Barnard (DA) to ask the Minister of Defence and Military Veterans:
(1) Whether any members of Armscor attended international defence shows (a) in (i) 2009, (ii) 2010 and (iii) 2011 and (b) since 1 January 2012; if so, in each specified case,
(i) how many defence shows, (ii) how many (aa) executive directors and (bb) non-executive directors attended the shows, (iii) what is the name of each specified (aa) executive director and (bb) non-executive director and (iv) what (aa) was the total cost and (bb) is the breakdown of costs for the (aaa) executive directors and (bbb) non-executive directors;
(2) what (a) was the (i) total cost and (ii) is the breakdown of costs incurred in each case and (b) what benefit to the public has she found was served by attending each show? NW855E

REPLY

Yes. ARMSCOR is mandated by the ARMSCOR Act to provide marketing support to the defence- related industry in respect of defence materiel, in consultation with the Department of Defence and the defence industry. In order to fulfil this mandate, ARMSCOR has, as one of its strategic objectives, prioritised support to the local defence industry because the local defence industry is critical to enable ARMSCOR to deliver the required services and equipment to the Department of Defence.

As part of its strategy to enhance and strengthen support for the local defence industry, ARMSCOR as an acquisition agency of the Department of Defence has signed an agreement with the Department of Trade and Industry (the dti) to coordinate all international defence exhibitions on its behalf. In doing this, ARMSCOR has identified and participates in various international defence exhibitions, with a view to sustain capabilities in the defence industry to deliver the required services and equipment to the South African National Defence Force (SANDF). International exhibitions also serve as a vehicle to promote the local defence industry, which is also in line with government initiatives for economic development and job creation.

Over and above the function of promoting the local defence-related industry, international defence exhibitions afford ARMSCOR an opportunity to forge relationships with similar organisations and to meet with suppliers to further discuss contractual issues and relationships. Of greater importance is the fact that international exhibitions offer an opportunity for exposure to the technology that is available and for determining the world trends and direction in technology development.

ARMSCOR Board members attend defence exhibitions on a rotational basis. This is to ensure that all Board members get exposure to the defence environment so that they may be better equipped to discharge their responsibilities, but most importantly to provide an opportunity for them to interact with the industry all at the same time.

The benefits of participating in such exhibitions are evident in the potential business realised by the local defence industry and the number of contracts that are signed as a result thereof. For ARMSCOR, the benefits include the following:
· Gaining experience and knowledge of worldwide defence industry technologies and trends
· Promoting and reinforcing ARMSCOR’s position in the industry as the international gateway to the South African defence industry
· As the co- host of the AAD Show, it is important for ARMSCOR to attend other exhibitions in order to promote the AAD and invite and attract other countries to the AAD
· Supporting the government’s national objectives of generating foreign exchange investment
· Creating good and sound stakeholder relationships with the industry and promoting the ARMSCOR brand
· ARMSCOR has strategic facilities within the ARMSCOR Defence Institutes that requires to be marketed at international exhibitions.
· Contributing towards the national BEE and SMME strategies.

The following are exhibitions that were coordinated and attended by ARMSCOR:
1. LAAD 2009

The exhibition took place in Rio de Janeiro in Brazil from 14 to 17 April 2009. Two Board members attended the exhibition. The total cost of the trip was R 197 928.
2. DSEI 2009

This exhibition took place in London, United Kingdom, from 8 to 11 September 2009. The exhibition was attended by Chairman of the Board and two Board members. The Management Board was represented by the CEO. The total cost for the trip was R 269 834.
3. LIMA 2009

The Acting CEO attended this exhibition, which was held at Langkawi, Malaysia, in December 2009 at the official invitation of the host country. Accommodation was arranged and paid for by the host country, whilst ARMSCOR paid for his travel expenses and S & T. The cost of the trip was R 59 106.
4. DSA 2010

This exhibition took place from 19 to 22 April 2011 in Kuala Lumpur, Malaysia. Three Board members attended the exhibition. The Acting CEO represented Management Board. The total cost for the trip was R 264 143.
5. EUROSATORY 2010

This exhibition took place in France from 14 to 18 June 2010. One Board member and the Acting CEO attended the exhibition as official guests of France. The total cost for the trip was R114 410.
6. IDEX 2011

This exhibition was in Abu-Dhabi in the United Arab Emirates from 20 to 24 February 2011. Three members of the Board of Directors and the acting CEO attended the exhibition. The total cost for the trip was R 220 691.
7. LAAD 2011

This exhibition was held in Rio de Janeiro, Brazil, from 14 to 17 April 2011. One member of the Board of Directors attended the exhibition. The total cost of the trip was R 76 226.
8. IDEF 2011

This exhibition was held in Turkey, Istanbul, from 10 to 13 May 2011. The ARMSCOR Board of Directors was represented by the Chairman and the Management Board by the Acting CEO, at the invitation of the Turkish government. The total cost for the trip was R 68 667.
9. DSEI 2011

This exhibition took place in London, Docklands, United Kingdom, from 13 to 16 September 2011. Four Board members and the Acting CEO attended the exhibition. The total cost of the trip was R 431 589.
10. Dubai 2011

The exhibition took place in Dubai, United Arab Emirates, from 13 – 17 November 2011. Three Board members and the Acting CEO attended the exhibition. The total cost of the trip was R 195 943.
11. LIMA 2011

The exhibition took place in Langkawi, Malaysia from 6 -10 December 2011. Two Board members and the Acting CEO attended the show. The total cost of the trip was R 216 189.
12. Defence and Security 2012



The exhibition took place in Bangkok, Thailand from 5- 8 March 2012. Three Board members attended the exhibition. The total cost of the trip was R 198 920.