Legislation aimed at removing the chief of the defence force and the secretary of defence from the Armscor board because of a possible conflict of interests was approved by the National Assembly today.

Introducing debate on the Armaments Corporation of SA Limited Amendment Bill, Deputy Defence Minister Mluleki George said that when Cabinet approved the principle bill in 2003 it indicated the chief should not be on the corporation’s board of directors.

"The reason was that membership of the board by the Chief of the SA National Defence Force would constitute a potential conflict of interests.

"Such a conflict would arise from the fact that the chief would have been part of the decision to determine the requirements of the SANDF, as well as being part of the decision to determine procurement and acquisition, and which suppliers should provide goods and services."

Similarly, the inclusion of the secretary on the board raised the potential conflict of interests in view of the supporting role he or she played as head of the department towards the minister in exercising political oversight over Armscor.

As head of the department and accounting officer and also sitting on the Armscor board, he or she could not be expected to account for ensuring effective and efficient use of transferred funds or any financial assistance rendered to Armscor, and also be accountable in terms of his or her membership to the board of the same institution.

He or she would be referee and player at the same time, George said.

The bill now goes to the National Council of Provinces for concurrence.

Legislation aimed at removing the chief of the defence force and the secretary of defence from the Armscor board because of a possible conflict of interests was approved by the National Assembly today.

Introducing debate on the Armaments Corporation of SA Limited Amendment Bill, Deputy Defence Minister Mluleki George said that when Cabinet approved the principle bill in 2003 it indicated the chief should not be on the corporation’s board of directors.

"The reason was that membership of the board by the Chief of the SA National Defence Force would constitute a potential conflict of interests.

"Such a conflict would arise from the fact that the chief would have been part of the decision to determine the requirements of the SANDF, as well as being part of the decision to determine procurement and acquisition, and which suppliers should provide goods and services."

Similarly, the inclusion of the secretary on the board raised the potential conflict of interests in view of the supporting role he or she played as head of the department towards the minister in exercising political oversight over Armscor.

As head of the department and accounting officer and also sitting on the Armscor board, he or she could not be expected to account for ensuring effective and efficient use of transferred funds or any financial assistance rendered to Armscor, and also be accountable in terms of his or her membership to the board of the same institution.

He or she would be referee and player at the same time, George said.

The bill now goes to the National Council of Provinces for concurrence.

With acknowledgements to Sapa and the Business Day.