Armscor disclosed an amount of R585 000 relating to penalties in the 2019/20 Annual Report. Of this amount R 190 000 was relating to the 2019/20 financial period and R395 000 to the 2018/19 financial period.
These penalties were levied on Armscor’s facilities (Protechnik, Flamengro and Ergotech) in the execution of work for the Department of Defence where services/products were delivered late and were therefore penalised. Late deliveries occured due to a lack of of capacity due to resignations as well as technical dificulties experienced.
The services rendered were in relation to :
The reasons for all penalties levied were investigated and the appropriate corrective actions taken in terms of Armscor’s disciplinary processes.