Armaments Corporation of South Africa, Limited Act, 2003 (Act No. 51 of 2003)

Chapter 1 : Armaments Corporation of South Africa, Limited and its Objectives and Functions

4. Functions of Corporation

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(1)For the purpose of this section—
(a)"defence industrial participation" means the process by which defence acquisition is used to leverage defence industrial and economic benefits for the Republic;
(b)"defence operational research" means the use of scientific or specialised techniques, employing mathematical methods, simulation and qualitative or logical reasoning in systematic and general approaches to defence problem solving and decision making; and
(c)"defence-related industries" means those organisations in the public and private sector, including the commercial companies and business units of such organisations, which are directly or indirectly active in the research, development, manufacture and marketing of defence matériel.

 

(2)The Corporation must—
(a)acquire such defence matériel on behalf of the Department as the Department may require;
(b)manage such technology projects as may be required by the Department;
(c)establish a programme management system in support of the acquisition and technology projects contemplated in paragraphs (a) and (b);
(d)provide for a quality assurance capability in support of—
(i)the acquisition and technology projects contemplated in paragraphs (a) and (b);
(ii)any other service contemplated in this section required by the Department;
(e)establish a system for tender and contract management in respect of defence matériel and, if required in a service level agreement or if  requested in writing by the Secretary for Defence, the procurement of commercial matériel;
(f)dispose of defence matériel in consultation with the person who originally manufactured the matériel;
(g)establish a compliance administration system for the Department as required by applicable international law, the National Conventional Arms Control Act, 2002 (Act No. 41 of 2002), and the Non-Proliferation of Weapons of Mass Destruction Act, 1993 (Act No. 87 of 1993);
(h)support and maintain such strategic and essential defence industrial capabilities, resources and technologies as may be identified by the Department;
(i)provide defence operational research;
(j)establish a defence industrial participation programme management system;
(k)provide marketing support to defence-related industries in respect of defence matériel, in consultation with the Department and the defence-related industries in question;
(l)manage facilities identified as strategic by the Department in a service level agreement; and
(m)maintain such special capabilities and facilities as are regarded by the Corporation not to be commercially viable, but which may be required by the Department for security or strategic reasons.

 

(3)

(a)The Corporation may, with the approval of the Minister
(i)exploit such commercial opportunities as may arise out of the Corporation's duty to acquire defence matériel or to manage technology projects;
(ii)procure commercial matériel on behalf of any organ of state at the request of the organ of state in question; and
(iii)and subject to the National Conventional Arms Control Act, 2002 (Act No. 41 of 2002), the Regulation of Foreign Military Assistance Act, 1998 (Act No. 15 of 1998), and the Non-Proliferation of Weapons of Mass Destruction Act, 1993 (Act No. 87 of 1993), perform any function which the Corporation may perform for or on behalf of the Department in terms of this Act for or on behalf of any  sovereign State.
(b)The Minister may impose such conditions in respect of the performance of a function contemplated in paragraph (a)(iii) as may be necessary in the national interest.