|
Armscor officials suspended over criticism |
| Publication |
Business Day |
| Date | 2012-07-24 |
| Reporter | Wyndham Hartley |
| Web Link | www.bday.co.za |
Two senior officials have been suspended for criticising a
board-composed strategy for the company as being irrational and a recipe for
disaster
BELEAGUERED state weapons acquisition agency Armscor has hit another crisis,
with two senior officials suspended for criticising a board-composed new
strategy for the company as being irrational and a recipe for disaster.
The latest crisis comes hard on reports that board chairman Moreti "Mojo" Motau
was dismissed early last month by former defence minister
Lindiwe Sisulu and is contesting the dismissal.
The news yesterday that Pierre Meiring and Kgathatso Thlakudi had been suspended
pending a disciplinary process follows the suspension of two other senior
officials a few months ago and represents the continued haemorrhaging of skills
and experience from the company.
It is understood that at issue is a critique of the new Armscor strategy, which
claims that the board that signed off on it was inexperienced and failed
completely to consult senior divisional staff who collectively have hundreds of
years of experience in the defence industry and in acquisition.
The critique says that, "in its entirety the (strategy) document shows an
abysmal lack of understanding of the business in general and technicalities in
particular. It is full of wild, unsubstantiated and illogical statements and
totally impractical intentions. There appears to be a significant
misinterpretation of the law, practical reality, objective logic, normal
business sense and the original strategic intent which gives rise to the
existence of Armscor."
Armscor spokeswoman Daphney Chuma, responding to inquiries, said: "The issue
around the suspension of Armscor employees is an internal matter that will be
dealt with in terms of the prescribed Armscor internal processes."
Democratic Alliance defence spokesman David Maynier said: "It is now clear that
Armscor is in complete meltdown. The chairperson, ‘Mojo’ Motau, has reportedly
been fired but won’t leave. The CEO, Sipho Mkwanazi, is acting in the top
position and is therefore a lame duck. The civil war between the board and
senior management is ongoing.
"And many critical voices within Armscor have been purged. The new Minister of
Defence and Military Veterans,
Nosiviwe Mapisa-Nqakula , is going to have to deal with the meltdown at
Armscor. A good place to start would be to show Motau the door and ensure he
leaves Armscor."
One of the principal problems the officials had with the strategy is its
suggestion that Armscor, due to its having experience in major acquisitions,
should market itself to other regional governments in Africa as an acquisition
agency of choice. The critique says "this shows a clear lack of understanding of
armaments acquisition internationally. Military acquisition is one of the most
secretive and controlled environments internationally. Countries do not
negotiate via third parties, nor do they trust third parties to look after their
interests when it comes to national security."
It says SA would not allow foreigners to take over its arms acquisition and
questions why other sovereign nations would be prepared to do so.
The provision in the strategy that Armscor should "maintain a capability to
develop and acquire technologies" was rejected with the observation that "the
act specifically states that Armscor must acquire defence material and manage
technology projects and does not in any way state or imply that Armscor should
provide technology or maintain a capability to develop technology".
A suggestion that Armscor "leverage" its acquisition power to gain further
contracts was rejected out of hand as probably a contravention of the Public
Finance Management Act.
hartleyw@bdfm.co.za
With acknowledgements to Wyndham Hartley and Business Day.
"an abysmal lack of understanding of the business in general and technicalities in particular. It is full of wild, unsubstantiated and illogical statements and totally impractical intentions. There appears to be a significant misinterpretation of the law, practical reality, objective logic, normal business sense and the original strategic intent which gives rise to the existence"
20-odd years ago Armscor was
headed by Tielman de Waal. The entire organisation was some 100 000 strong and
then included what is now Denel.
Denel is now about 8 000 strong and absorbing tax-payers' monies at a furious
rate.
Armscor is less than a 1 000 strong.
Three decades ago the country was almost at fullscale war and Armscor could
facilitate the needs of the entire SADF (with a little help from Israel and
France).
Too late for the war came the Cheetah C and Rooivalk attack helicopter - but
ambitious projects done by Armscor.
Them came the Arms Deal commencing in 1995.
de Waal got kicked out to leave space for Modise, Kasrils and Chippy Shaik a
free reign.
Parachuted in were Modise's mates Ron Haywood and Llew Swan. Of course these
accountants knew diddly and Erich Esterhuyse as General Manager Acquisition had
to hold the fort. But he also got forced out at the end of the preferred bidder
stage to let Swan build the feeding troughs with his friend Chippy.
A useful fool tool, Swan got kicked out once he'd done his bidding, only
to walk through the revolving door and join his bosom buddies Tony Ellingford
and Jeremy Mathers as the German Submarine Consortium's bag men.
Headhunted to play next diddle on the Armscor transformation and BEE fiddle was
an engineer, Sipho Thomo.
But what he knew about engineering and acquisition I have yet to find out.
But he knew how to fiddle other things, including things under lady staff's
brooks and A400M Loadmaster lifespan costs and he eventually got the boot.
Mojo, a former MK and SANDF general of military intelligence got the chairman's
job next and Mkwanazi got the CEO's job.
These are the one's with an abysmal lack of understanding of the business in
general and technicalities in particular.
There have been some other interesting appointments inbetween.
Seth Palatse springs to mind - he who with one of the Kunene bros first raided
the national strategic oil store.
In the meantime, Armscor could hardly acquire a bicycle, let alone a shed for
it.
All it wants to do is cede control to the highest bribing foreign bidder at the
highest level and let it do the screwing of the local industry.
In the Arms Deal, Armscor handled the DIP, a farce a minute only to be outdone
by Pinnocio Erwin's NIP handled by the Department of Trade and Industry.
The only decent bit of DIP was the Corvette Combat Suite, other that Pierre
Moynot and Schabir Shaik's French Combat Management System, but the Corvette
Combat Suite had been in development by the South African Defence Industry since
the middle 1980s and could hardly have really been true DIP.
Back to management.
Yet there are perfectly good candidates for CEO right there in the organisation.
People with master's degrees in engineering as well as master's degrees in
business administration plus over 25 years of actual acquisition experience.
But they are white men.
White men have an abysmal lack of understanding of dancing in general and to
particular tunes in particular.
But they can write a mean nasty review of a report.
I do not know Kgathatso Thlakudi, but clearly he also knows nothing about
dancing.