Defence department roasted over contracts

The Department of Defence yesterday struggled to explain why it had spent R10.4-billion on contractors and consultants.

The select committee on public accounts (Scopa) questioned Secretary for Defence Sam Gulube in parliament yesterday over one of these contracts, an 18-year deal with Aero Manpower Group.

AMG is a business unit of state-owned arms manufacturer, Denel.

Gulube argued that the contract could not be terminated in 2007 because the air force still lacked the specialised skills required.

He said the contract would be terminated at the end of March.

Between April 2007 and March 31 2010, the department paid out R860-million for AMG to repair and maintain aircraft for the South African Air Force.

A recent report by the auditor-general showed that the government had spent R100-billion on consultants over a period of three years. Of this, national government departments spent R33-billion.

In its 2011-2012 annual report the auditor general noted that the department had not monitored contracts, ensuring there was value for money, nor had it considered transfer of skills .

ANC MP Roy Ainslie asked why it had taken the department almost 18 years to revisit this contract .

He said it appeared that the department was only terminating the contract following pressure from the auditor-general.

Ainslie questioned what would happen to the 500 employees of AMG who could lose their jobs as a result of the cancellation of the contract.

Gulube said negotiations with the unions and Denel were currently under way and were at a critical stage.