Contract to refit the arms deal frigate SAS Amatola must be probed by the Auditor-General
14 December 2014
I will request the Auditor-General, Mr Kimi Makwetu, to probe the awarding and operation of the contract to refit the SAS Amatola (see Sunday Times report).
The SAS Amatola is one of the Meko 200 SAN Class frigates operated by the South African Navy.
Replying to a parliamentary question, Minster of Defence and Military Veterans, Nosiviwe Mapisa Nqakula, revealed the contract to refit the SAS Amatola had been awarded to Southern African Shipyards, a private company based in Durban.
The SAS Amatola's refit, which is scheduled to take place over a twelve-month period, involves major work, including a "main engine change out" at the cost R30 million.
The total cost of the SAS Amatola's refit is estimated to be R335 million. However, this figure is likely to escalate as new defects are discovered during the refit.
The awarding of the contract to refit the SAS Amatola raises some serious questions given the fact that:
The contract for the refit may not have been put out to open tender; and
The cost of the refit may have been inflated by as much as R100 million.
I will, therefore, request the Auditor-General, Mr Kimi Makwetu, to probe the awarding and operation of the contract to refit the SAS Amatola.
So that there are no issues with the refit of the SAS Isandlwana, which is the next South African Navy frigate due for a refit, we have to ensure that the current tender system is bulletproof.
Text of the parliamentary reply:
MINISTRY OF DEFENCE & MILITARY VETERANS
NATIONAL ASSEMBLY
QUESTION FOR WRITTEN REPLY
1828. Mr D J Maynier (DA) to ask the Minister of Defence and Military Veterans:
(1) In respect of the refit of the SAS Amatola, what is the (a) name of (i) the chairperson, (ii) each specified executive director and (iii) each specified non-executive director of each company and (b) company name of each specified entity contracted to carry out the refit;
(2) how long will the (a) ship be in the dry dock and (b) refit take;
(3) whether a study was done on the impact of the refit on employment in the local ship building and repair industry; if not, why not; if so, what are the relevant details;
(4) what is the (a) total cost and (b) breakdown of the costs of the refit;
(5) why is the refit not being carried out in the SA Navy's Dockyard in Simons Town? NW2201E
REPLY:
(1) (a) and (b)
The contract for the refit of the SAS Amatola was awarded to Southern African Shipyards; and the requested information on its executive can be obtained directly from Southern African Shipyards.
(2) (a) The ship will be in the dry dock for four (4) months.
(b) The refit is scheduled for twelve (12) months.
(3) No study was done into the impact of the refit on employment in the local ship building and repair industry as this is not a requirement of the tender process.
(4) (a) The total cost is R335,000,000-00.
(b) A detailed cost breakdown structure is reflected in the table below.
|
Ser No |
Activity |
Cost |
|
1 |
Ships Valves |
R 14,425,049.00 |
|
2 |
Inspection and Overhaul of Pumps |
R 10,656,458.35 |
|
3 |
Hydraulics |
R 1,500,000.00 |
|
4 |
Exhaust Systems |
R 22,531,558.00 |
|
5 |
Airconditioning and Fridges |
R 10,000,000.00 |
|
6 |
Tailshafts, Shaft Bearings and CPP Units |
R 3,737,144.00 |
|
7 |
Fin Stabilizers |
R 8,307,803.00 |
|
8 |
Deck Plates |
R 1,299,041.00 |
|
9 |
Compressed Air System |
R 11,431,549.00 |
|
10 |
Fire Fighting Systems |
R 7,639,457.00 |
|
11 |
Doors , Hatch Sealing and Enclosures |
R 4,530,000.00 |
|
12 |
Water Systems |
R 6,602,200.00 |
|
13 |
Pipe Work |
R 7,002,476.05 |
|
14 |
Electrical Items |
R 28,843,354.44 |
|
15 |
Electric Motors |
R 2,500,000.00 |
|
16 |
Gas Turbine |
R 930,000.00 |
|
17 |
Bilges and Deck Plates |
R 3,000,000.00 |
|
18 |
Tanks |
R 7,884,206.00 |
|
19 |
Water Jet |
R 2,916,445.47 |
|
20 |
Accommodation |
R 5,941,094.00 |
|
21 |
Main Gearbox |
R 1,500,000.00 |
|
22 |
Generators |
R 7,000,000.00 |
|
23 |
Main Engine Change Out |
R 30,100,000.00 |
|
24 |
Rudders and Steering Gear |
R 3,600,000.00 |
|
25 |
Boat Davit and Boom |
R 150,000.00 |
|
26 |
Ships Cranes |
R 200,000.00 |
|
27 |
Helicopter Equipment and Hangar |
R 449,110.00 |
|
28 |
Separators |
R 2,250,000.00 |
|
29 |
Deck Equipment |
R 400,000.00 |
|
30 |
Evaporators |
R 520,000.00 |
|
31 |
Harbour Acceptance Trials |
R 2,000,000.00 |
|
32 |
Sea Acceptance Trials |
R 1,000,000.00 |
|
33 |
Dry Dock Works |
R 14,400,000.00 |
|
34 |
Overheads |
R 78,188,998.69 |
|
35 |
Sow Variations |
R 31,564,056.00 |
|
36 |
Total |
R335,000,000.00 |
5. The current capacity in the SA Navy's Dockyard in Simon's Town is insufficient to undertake the refit. The arrangement is in line with Armscor's agreement with the SA Navy to contract additional work to Industry.
***
Statement issued by David Maynier MP, Democratic Alliance Shadow Minister of Defence and Military Veterans, December 14 2014
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