QUESTION 600
WRITTEN REPLY
DATE OF PUBLICATION: UNKNOWN
QUESTION
Mr J.J. van der Linde (DA) to ask the Minister of Defence and Military
Veterans:
(1) (a) Which travel agencies or travel service providers does her
department use currently and (b)(i) how and (ii) when were they appointed
in each case;
(2) what was the (a) budgeted amount and (b) actual amount paid to each
specified service provider for departmental travel expenditure in the (i)
2007-08, (ii) 2008-09 and (iii) 2009-10 financial years (NW643E)
REPLY
1. (a)
The Department currently uses the AB Logistics (Armscor) and Travel with
Flair.
1(b)(i) AB Logistics was appointed as a preferred service provider in
accordance with the Departmentâs procurement policy. The Department
did not appoint Travel with Flair as a service provider but utilised
its services through participating in the existing contract of the
Department of Public Service and Administration. The participated was
entered into in line with National Treasury Regulation 16A 6.6.
1 (b)(ii)
AB Logistics was appointed on 1 January 2008 to provide a travel service
for 3 years and was again appointed on 1 January 2011 to provide a travel
service for a further 3 years.
The Department started its participation in the existing DPSAâs travel
contract with Travel with Flair from 1 September 2009 due to the increasing
demand of domestic and international travel and the need for a 24-hour
accessability service.
2 (a)
Financial Year 2007-08, R74 406 761.00.
Financial Year 2008-09, R85 256 042.00.
Financial Year 2009-10, R94 995 041.00.
2 (b) (i)
Financial Year 2007-08
Service Provider: Janco Travel CC, amount paid R25 049 783.65 (9 months).
Service Provider: Armscor (AB Logistics), amount paid R9 516 755.13 (3
months).
The total costs incurred was R34Â 566Â 538.78.
The amount include costs for bus tickets, vehicle hire, and air fares.
2 (b) (ii)
Financial Year 2008-09
Service Provider: Armscor (AB Logistics), amount paid R71 312 881.25
The amount include costs for bus tickets, vehicle hire, and air fares.
2 (b) (iii)
Financial Year 2009-10
Service Provider: Armscor (AB Logistics), amount paid R56 220 152.99.
Service Provider: Travel with Flair, amount paid R10 142 824.00.
The total costs incurred was R66Â 362Â 976.99.
The amount include costs for bus tickets, vehicle hire, and air fares.
For the year under review these expenses indicate that the amounts the
Department spent below the projected budget. This was due to austerity
measures introduced by the Department. It is clear, however, that the ever-
increasing air fare and fuel costs pose a challenge to the Departmentâs
achievements of spending below budget.