Department of Defence Annual Report 2008-2009

| Department of Defence | Vote 19 |
SPECIAL DEFENCE ACCOUNT
NOTES TO THE FINANCIAL STATEMENTS
for year ended 31 March 2009 (continued)
2008/09 2007/08
R’000 R’000
9. Future expenditure approved by Armscor 15 126 782 18 816 492
Strategic Defence Procurement Programme capital
commitment
1 727 283 4 268 881
Commitments 13 399 499 14 547 611
Commitments in respect of contracts entered
into
Commitments approved, but contracts not yet
entered into
10 316 458 8 775 087
3 083 041 5 772 524
| Financial Performance |
9.1 The amount relating to the Strategic Defence Procurement Programme capital commitment represents the capital
amount at prevailing exchange rates at year end, but excludes escalation and other additional costs (eg. Finance
costs). Included in the amount of R1 727 283 000 (2007/2008: R4 268 881 000) is a foreign component of EUR
Nil, USD 47 672 829, GBP 35 526 668 and SEK 580 313 270 (2007/2008: EUR 5 311 450, USD 115 970 293,
GBP 76 678 567 and SEK 1 414 398 749). No forward cover was utilised.
9.2 It is intended to nance expenditure from future Department of Defence transfer payment funds and from
working capital generated within the Special Defence Account.
10. Contingent liability
2008/09 2007/08
R’000 R’000
Claims against the state 2 479 638 2 533 228
10.1 Included in claims against the state is a claim of EUR 192 180 623 (R 2 467 637 633) relating to a commission
claim. The claim will be defended in a civil court in Lisbon, Portugal.
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