Terminate the Airbus A400M deal now
The Democratic Alliance (DA) believes that the programme to procure eight Airbus A400M strategic heavy lift aircraft for the South African Air Force should be terminated due to estimated cost overrun of R30 billion.
The Chief Executive Officer of Armscor, Sipho Thomo, revealed this morning during a portfolio committee on defence and military veterans meeting that the cost of the procurement of the eight aircraft had increased from an estimated R17 billion to R47 billion.
This means that unless the programme is terminated, the ordinary taxpayer will be forking our nearly R6 billion per aircraft.
The estimated cost overrun is:
- greater than the initial cost of the procurement of South Africa's strategic defence package; and
- nearly three times the total budget for the air force in the 2009/2010 financial year.
The original contract for the delivery of the aircraft, which was never put out to tender, was signed on 28 April 2005 for delivery over 2010 and 2012. The Airbus A400M was to be produced as part of a nine nation consortium cooperative programme which included South Africa.
We have already spent R2.9 billion on the Airbus A400M.
We have to get out while we can.
The DA therefore calls on the Minister of Defence and Military Veterans, Lindiwe Sisulu, to:
- withhold the R1.1 billion pending payment to Airbus;
- begin negotiations to terminate the procurement of the aircraft; and then
- launch a full and independent enquiry in the Airbus A400M deal.
Statement issued by David Maynier, MP, Democratic Alliance shadow minister of defence and military veterans, October 14 2009
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