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)
11. Defence Industrial Participation (DIP)
2008/09 2007/08
R’000 R’000
11.1 DIP credits awarded and planned for current year
DIP credits awarded 743 870 1 407 770
DIP credits awarded - SDPP 652 070 1 088 118
DIP credits awarded - Non-SDPP 91 800 319 652
DIP credits planned 969 335 1 381 942
DIP credits planned - SDPP 951 134 1 037 250
DIP credits planned - Non-SDPP 18 201 344 692
11.2 Previous years DIP credits awarded and planned
Cumulative DIP credits awarded 18 454 001 17 710 131
Cumulative DIP credits awarded-SDPP 13 157 899 12 505 829
Cumulative DIP credits awarded-Non-SDPP 5 296 102 5 204 302
Cumulative DIP planned 18 672 564 17 014 881
Cumulative DIP credits planned-SDPP 13 456 963 11 814 482
Cumulative DIP credits planned-Non-SDPP 5 215 601 5 200 399
| Financial Performance |
11.3 Outstanding DIP obligations
Outstanding DIP obligations 2 213 940 2 761 958
Outstanding DIP obligations - SDPP 1 952 862 2 604 932
Outstanding DIP obligations - Non-SDPP 261 078 157 026
11.4 The DIP programme applies to all foreign defence purchases with an imported content exceeding 2 million USD
and is subject to a DIP obligation of at least 50% of the imported content. Armscor is responsible for the
management and monitoring of the DIP programme on behalf of the Department of Defence.
11.5 DIP represents the obligations of foreign Original Equipment Manufacturers that supply military equipment
to the DOD through Armscor. The obligation represents the value of orders to be placed on SA industry, and
technology to be transferred.
373 Annual Report FY 2008 - 2009