Publication: The Natal Witness Issued: Date: 2005-02-25 Reporter: Erika Gibson Reporter:

Armscor CEO and Two Senior Managers Suspended

 

Publication 

The Natal Witness

Date

2005-02-25

Reporter

Erika Gibson

Web Link

www.witness.co.za

 

The chief executive of Armscor and two of his senior managers were suspended summarily and for an undetermined period of time on Thursday.

They were asked to vacate their offices immediately and were prohibited from speaking to employees or the media about their suspension.

Sipho Thomo has been the chief executive since 2000. Dr Jan de Necker, senior manager of Armscor's business division, has been working there for 17 years, and Boet van Staden, senior sales manager, has been with the company for 34 years.

De Necker and Van Staden were primarily involved in the sale of army equipment.

Dr Popo Molefe, chairman of the board of directors, was appointed on Thursday as the acting chief executive until a forensic investigation into the other three is completed.

Molefe told Beeld the suspension follows allegations of administrative irregularities. "The board hopes to complete the investigation swiftly, fairly and objectively. I want to state categorically that we regard the employees as innocent until the investigation proves otherwise."

Molefe said the investigation will start soon, and the men were suspended so it can take place as fairly as possible. "We hope to complete it soon as we know it holds pain and insecurity for those involved to be placed in the spotlight all the time."

Beeld learned that the alleged irregularities could be connected to a variety of incidents. One of them is alleged to be the handling of the awarding of a destruction contract for obsolete army ammunition *1. This tender has been dragging for months without any decision being made.

Another possible reason is the disposal of obsolete army equipment - including the handling of the donation of military vehicles to the SA National Museum for Military History.

This incident made headlines when Military Police arrested the curator and two museum employees because some of the equipment at the museum museum was still "in service" and deemed to be dangerous.

A Ratel combat vehicle was sent to an arms exhibition in the Middle East last year. For various reasons, the vehicle overstayed its visa out of SA. This vehicle has been returned to the country, however, and the investigation into the incident did apparently not point to any negligence.

A further possible reason why Thomo was suspended is because he has been at odds with defence secretary January Masilela and Denel chief executive Victor Moche. Deputy Defence Minister Mluleki George had to intervene last year, for instance, in a bitter battle between Thomo and Moche about Armscor's sales of redundant equipment.

Moche apparently feels it is part of Denel's responsibility to handle sales of weapons, while Armscor believes it should handle the acquisition and sales of army equipment.

Thomo's appointment in 2000 was controversial. It was felt he was too inexperienced and merely an affirmative-action appointment. He has distinguished himself as a manager with international acclaim since then.

With acknowledgements to Erika Gibson and The Natal Witness.

*1 Most of which is never destroyed, but ends up being sold in Eastern Europe and the USA.

We're talking of hundreds of millions of rounds - worth tend of millions of dollars, that : cost you and I a lot of money to manufacture; cost you and I a bit more money to "destroy"; can kill policemen and women when fired right through their kevlar bullet-proof jackets; can penetrate right through lightly armoured vehicles such as those transporting your and my hard-earned cash.