a) (i) The status of Mr. Ramaphosa’s association with FeverTree Consulting (Pty) Ltd is as follows:
b) At the time of the appointment of FeverTree Consulting by Armscor, Mr Ramaphosa had resigned on 25 June 2012 from FeverTree Consulting and had no interest in the company and was not in any way associated with the company by any direct or indirect means.
c) What were the amounts budgeted for the turnaround of Armscor, (c) what amounts have been spent on the turnaround as at the latest specified date for which information is available, specifically in favour of FeverTree Consulting,
The total value budgeted for the Armscor Turnaround was R 56 283 616.00. The total amount paid to Fevertree Consulting by 30 April 2017 (end of Phase 1) amounts to R55 420 538.21. To date an additional R2 886 657.74 has been paid to Fevertree as part of Phase 2 of the turnaround implementation.
Payments made were against contracted deliverables and divided according to work streams. Six work streams were established with a total of 213 deliverables listed as follows:
Work streams |
No Deliverables |
Amount Paid |
1. Designing a new vision for the future |
23 |
R10 226 630.40 |
2. Developing New Revenue Driven Strategies |
42 |
R 9 695 641.71 |
3. Enhancing and Improving Core Functions |
28 |
R 5 861 433.40 |
4. Communication and Change Management |
40 |
R 5 318 500.78 |
5. A New Governance Model for Armscor |
45 |
R10 949 337.69 |
6. Driving Greater Efficiencies |
35 |
R13 230 201.60 |
Total |
213 |
R55 281 755.58 |
The contracting model adopted in phase 2, allows Armscor to approach various service providers by tender process, for support during the implementation using an approved panel of service providers. To date an additional R2 886 657.74 was paid to Fevertree Consulting, for 14 deliverables, as part of Phase 2 of the Armscor turnaround implementation, for the following projects:
Project No |
No of Deliverables |
|
Project 001 - Strategic Planning Implementation |
9 |
R2 402 192.64 |
Project 008 - Dockyard Sustainability Plan |
5 |
R 484 465.10 |
Total |
14 |
R2 886 657.74 |
QUESTION 3
And (d) what are the details of (i) all the achievements and (ii) savings listed against the contractual milestones to date?
RESPONSE
Phase 1 of the Armscor Turnaround focused on an As-Is assessment and the creation of plans to bridge the gap between the current and desired end state.
(i) This table lists the key achievements of Phase 1:
Drive Revenue by Leveraging Core Strengths |
|
Commercialisation of technologies & patents |
|
Championing Innovation (Business Development) |
|
Acquisition and SCM |
|
Technology Management and Administration |
|
Sweating Special Assets |
|
Defence SOE Collaboration |
|
The above mentioned frameworks and plans are the basis of the implementation Phase 2.
(ii) A total of R88,17m worth of savings were identified to be realised within a period of 12 months after the project. An amount of R 61,7m was accepted as potential savings for the organisation to pursue and implement. To date R23,45m of the accepted savings has been realised. Various Opex savings have been implemented and their consolidated gains will be quantified at the end of the FY 18/19.