Armscor reveals R7.7bn budget shortfall

ARMSCOR, the arms procurement agency for the South African Defence Department, has revealed to Parliament that a staggering budget shortfall of more than R7 billion threatens the maintenance of the South African Air Force (SAAF) aircraft fleet.

- MAYIBONGWE MAQHINA

This happens as the acquisition and maintenance contracts have not been adequately funded for a long time.

In a presentation to the Joint Standing Committee on Defence on the status of maintenance contracts of the SAAF aircraft fleet, Armscor said all SAAF platforms for contracting were in place.

It also said that the majority of the contracts have spent 100% of their planned cash flow.

“There is a shortfall of approximately R7.7 billion to fund the current fleet.

“If you average it in terms of an annual basis, it is R2.56 billion, and this implies that the SAAF maintenance is currently at two to three times less than we are currently funded.”