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Arms deal inquiry has cost R23,5m thus far - Jeff Radebe

Justice minister says R12m spent on employee compensation, R6,8m on evidence leaders and R1m on travel and subsistence

NATIONAL ASSEMBLY QUESTION FOR WRITTEN REPLY

PARLIAMENTARY QUESTION NO.: 1744

Mr D J Maynier (DA) to ask the Minister of Justice and Constitutional Development:

(1) With regard to the Commission of Inquiry into Allegations of Fraud, Corruption, Impropriety or Irregularity in the Strategic Defence Procurement Package, what is the (a) total cost since 1 April 2011 and (b) breakdown of such costs for the Commission since the specified date;

(2) what is the (a) total cost and (b) breakdown of such costs for the Commission (i) for the (aa) 2011-12 and (bb) 2012-13 financial years and (ii) from 1 April 2013 up to the latest specified date for which information is available;

(3) What amount has been spent on each specified (a) permanent and (b) part-time employee of the Commission;

(4) whether any private sector companies have been retained to carry out work for the Commission; if not, why not; if so, in each specified case what (a) is the name of the company, (b) services has it provided and (c) was the (i) total cost and (ii) breakdown of such costs of retaining the company? NW2091E

REPLY

1. (a) The Commission commenced with its activities on 16 April 2012 from which date expenditure started being incurred. The total cost of the Commission up to 30 June 2013 is R23,539 million broken down per financial year as follows:

Expenditure Expenditure for the APC from 16 April 2012 to 30 June 2013

R'000

Actual Expenditure 2011/12

 

Actual Expenditure 2012/13

16 499

Actual Expenditure 2013/14

7 041

Total Expenditure

23 539

(b)  Breakdown of such costs:

Expenditure items

Actual Expenditure 16 April 2012 to 30 June 2013 R'000

Compensation of employees

12 084

Evidence Leaders

6 783

Forensic Auditor

770

Partitioning

498

Inventory

471

Communication

270

Travel and Subsistance

1 012

Furniture and Equipment (Current)

347

Other Goods and services

432

Furniture and Equipment (Capital)

712

Motor Vehicle

128

Finance Leases Photo Copiers

32

COMM ENQ: ARMS DEAL ENQUIRY T

23 539

2. (i)(aa) 2011/12:

(a) and (b) No Cost was incurred in this financial year as the Commission only commenced on 16 April 2012 which falls within the 2012/13 financial year. The department was in the process of establishing the Commission which did not bear any cost.

(bb) 2012/13:

(a) Total Cost: R16, 499 million

(b) Breakdown of costs:

Expenditure items

Actual Expenditure 2012/13 Rounded to R'000

Compensation of Employees

9 221

Evidence Leaders

3 991

Other Goods and Services

2 483

Machinery and Equipment

805

COMM ENQ: ARMS DEAL ENQUIRY Total

16 499

(ii) 2013/14:

(a) Total Cost: R7,041 million

(b) Breakdown of costs:

Expenditure items

Actual Expenditure 2012/13 Rounded to R'000

Compensation of Employees

2 864

Evidence Leaders

2 792

Forensic Auditor

770

Other Goods and Services

547

Machinery and Equipment

67

COMM ENQ: ARMS DEAL ENQUIRY Total

7 041

3. The Commission does not employ permanent employees since it is not a permanent entity. The employee structure is made up of temporary or seconded employees and consultants (Evidence Leaders and a Forensic Auditor).

(a) None

(b) Expenditure incurred on part-time employees; including Evidence Leaders and the Forensic Auditor.

Fin Year

R'000

2012/13:

R

13 211

2013/14:

R

6 426

Total

R

19 637

4. The Commission has not retained any services of private sector companies to carry out its work. However, it has engaged services of private, independent specialist investigators (individuals) to probe certain aspects, in the fields whereby the Commission's legal team do not have the requisite expertise, for example in forensic and defence related investigations.

Issued by Parliament, August 19 2013

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