Chapter 2 - P rogramme 1 - Department of Defence

| Department of Defence | Vote 20 |
SPECIAL DEFENCE ACCOUNT
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2008 (continued)
12.2 Previous years DIP credits awarded and planned
2007/08 2006/07
R’000 R’000
Cumulative DIP credits awarded 17 710 131 16 906 918
Cumulative DIP credits awarded - SDPP 12 505 829 11 417 711
Cumulative DIP credits awarded - Non-SDPP 5 204 302 5 489 207
Cumulative DIP credits planned 17 014 881 15 708 948
Cumulative DIP credits planned - SDPP 11 814 482 10 853 241
Cumulative DIP credits planned - Non-SDPP 5 200 399 4 855 707
12.3 Outstanding DIP obligations
Outstanding DIP obligations 2 761 958 4 429 044
Outstanding DIP obligations - SDPP 2 604 932 3 693 050
Outstanding DIP obligations - Non-SDPP 157 026 735 994
12.4 The DIP programme applies to all foreign defence purchases with an import content exceeding 2 million
USD and attracts a DIP obligation of at least 50% of the import content. Armscor is responsible for the
management and monitoring of the DIP programme on behalf of the Department of Defence (DOD).
National Industrial Participation (NIP) applies to all foreign contracts above 10 million USD and are handled
by the Department of Trade and Industry.
12.5 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.
13. Post Balance Sheet Event
Revenue Payable to National Revenue Fund
National Treasury has approved that the revenue payable to the National Revenue Fund in the 2007/2008
financial year, as disclosed in note 7, will be refunded in the 2008/2009 financial year.
345 Annual Report FY 2007 - 2008
| Financial Performance |