Deputy Defence and Military Veterans Minister Bantu Holomisa has written to the Acting Secretary for Defence requesting clarity on “serious allegations” relating to Armscor’s tender for the procurement of personnel carriers for the SA Army.
The letter, seen by DefenceWeb and dated 3 March 2026, is addressed to Dr Thobekile Gamede as Accounting Officer in the Department of Defence (DoD). It calls on her to “verify the authenticity or otherwise of serious allegations pertaining to the adjudication and implementation of Armscor Tender ELWS/2024/71 for the procurement of Personnel Carriers (PCs) for the SA Army.”
Holomisa reveals allegations received by his office raise concern possible deviations from the stipulated Request for Bid (RFB) requirements, including the application of Armscor’s Commercial Off-The-Shelf (COTS) framework, the integrity of the technical evaluation process, the cancellation of inspection and operational field evaluations, and the status of delivery milestones.
He points out a formally scheduled inspection and field evaluation process in March 2025 was cancelled after certain compliant bidders [Paramount, SVI, and DCD Protected Mobility] had mobilised, and that the ultimately appointed bidder [Milkor] did not participate in that process.
“The awarded platform may not have satisfied the definition of ‘commercial off-the-shelf’ at the time of award, and that first-article development and validation may still be required post-contract placement,” Holomisa stated, as Milkor’s winning vehicle was not in mass production at the time of contract award.
“Adverse findings were allegedly recorded by the Armscor Technical Evaluation Team and, subsequently, by the Internal Audit function, but were not fully considered or addressed prior to final adjudication,” the Deputy Minister continued.
“Delivery milestones for first articles scheduled for March 2026 may not be met, and extensions may have been contemplated or approved.” Furthermore, “concerns may have been raised by the SA Army as end-user regarding demonstrations and technical compliance prior to the issuance of Financial Authority.”
Questions have also been raised regarding compliance with minimum blast protection requirements applicable to both internal border control and external deployment environments. The vehicles are designated personnel carriers and not armoured personnel carriers as landmine protection is not a requirement. This is normal for vehicles on internal deployment but undesirable for external operations.
“The answers that were previously provided to the Honourable Minister appear, prima facie, to contradict certain specifications and conditions contained in the original RFB, particularly in relation to the Commercial Off-The-Shelf (COTS) requirements and the evaluation process,” Holomisa stated.
As Accounting Officer, Gamede is obligated to ensure that the Department of Defence maintains effective, efficient and transparent systems of financial and risk management and internal control, and that procurement is conducted in accordance with applicable legislation, Treasury Regulations, and prescribed standards, Holomisa emphasised.
In light of the seriousness of the allegations and the potential implications for national security, operational readiness, fiscal discipline and public confidence, Holomisa requested Gamede to urgently verify the allegations, confirm whether procurement processes were followed correctly, determine if there were any deviations from the COTS framework, provide clarity on delivery and production milestones, confirm whether adverse technical findings were recorded, and provide confirmation as to whether the minimum blast protection requirements aligned to United Nations mission standards were incorporated and verified prior to contract award.
“Given the magnitude of the project and its direct bearing on the operational capability of the SA Army, it is imperative that these matters be clarified without delay. Continued implementation of the contract, should any material irregularities be substantiated, may expose the Department to financial, legal and operational risks,” Holomisa emphasised.
“Furthermore, given the strategic implications of this procurement, I direct that the verified report, together with all relevant supporting documentation and recommended remedial actions, be tabled before the Council on Defence within fourteen working days of receipt of this correspondence.”
“This request is made in the interest of strengthening governance, safeguarding public resources, preserving institutional credibility, and ensuring that the SANDF is equipped with systems that are compliant, fit for purpose, and aligned with the Republic’s national and international obligations,” Holomisa concluded.
The Deputy Minister’s letter came a day after correspondence signed “South African Defence Industry” was addressed to Holomisa calling for urgent intervention on the personnel carrier contract.
The SA Defence Industry (SADI) letter raised a number of issues, including the cancellation of the March 2025 field trials; the fact that the Request for Bids “expressly contemplated the procurement of off-the-shelf Multi-Purpose Armoured Carriers under Armscor’s COTS framework”; production and delivery timelines; winning vehicle non-compliance; and the waiving of landmine protection and blast certification, amongst others.
“We believe Milkor’s intention is to bring semi-knocked down (SKD) units from overseas for final assembly in South Africa. Not only do we believe this will in all likelihood fail to meet the minimum local content requirement set out in the RFB, but we consider it to be a direct affront to the country’s industrialization and job creation national agenda and further undermining the country’s sovereignty and national security for South Africa to be dependent on foreign nationals and manufacturing capabilities while bypassing its own vibrant, capable and globally competitive local industry,” the SA Defence Industry letter stated.
Milkor previously told DefenceWeb that after evaluating the RFB carefully and understanding the scoring system and critical criteria used for the evaluation thereof, the company engaged in the tender for personnel carriers by submitting the required documentation for meeting technical specifications, and offered a competitive price.
“The entire tender process undergone by Armscor was fair and competitive and any rumoured deviations from the standard procedure for evaluation remains unsubstantiated. As stated in the RFB document, this process included the delivery of three first article variants, post the tender being awarded to a successful bidder, for field evaluations and verification to be completed. It is clear that the comments made on the award of this tender, its process or the capabilities of Milkor over the past few months are baseless, ignorant and malicious,” a Milkor spokesperson stated.
Commenting on Holomisa’s letter, Armscor told DefenceWeb it is aware of the media reports around the matter. “To this end, Armscor has submitted a report to the Minister of Defence and Military Veterans accordingly. Armscor upholds the highest possible corporate governance standards by ensuring adherence to all relevant legislative requirements. Furthermore, the corporation subscribes to the best business practices that reflect transparency, fairness and accountability.”
