Thandi Modise must suspend Armscor Board and CEO pending the outcome of an ongoing investigation into the parastatal

28 July 2023

The DA is calling on the Minister of Defence and Military Veterans, Thandi Modise, to immediately suspend the Armscor Board and the company CEO pending the outcome of the full scale investigation into allegations of wrongdoing at the parastatal.

It has been reported that Modise informed Armscor’s board of directors that she will be initiating a thorough investigation into allegations of misconduct and wrongdoing levelled against Armscor CEO, Adv Solomzi Mbada and Board Chairperson, Philip Dexter. This after it emerged that Mdada’s five-year fixed-term contract was irregularly changed to a permanent contract with no board resolution to support this decision.

The allegations raised by Modise are serious and of such a nature that the aforementioned parties cannot continue to act in their roles while the investigation is ongoing. They are interested parties who occupy senior positions in the company (i) who must be kept clear of even the perception of being protected as cadres, and (ii) who could potentially interfere with the conduct of the investigation.

Modise’s handling of the issue has not been satisfactory either. Reports reveal that she has been in Turkey attending a Defence Expo together with a high level Armscor delegation. If Modise was genuinely interested in maintaining the integrity of the investigation into Armscor, she should have told Armscor senior executives not to participate in any further engagements pending the outcome of the investigation.

Besides, the Turkey trip ignores the warnings that have been made by Treasury on the Department of Defence’s R1,5 billion spend on travel and accommodation. Modise is said to have led a delegation of 22 people to the Defence Expo. The only viable conclusion is that the Minister loves a jet setting lifestyle at taxpayers expense instead of addressing the military’s declining state of readiness, and rather reallocating money to the maintenance of our prime mission equipment .

It is the DA’s considered view that the investigation into Armscor must be given space to conduct its work without any undue interference – either from the Board or the CEO.

Issued by Kobus Marais, DA Shadow Minister of Defence and Military Veterans, 28 July 2023