NATIONAL CONVENTIONAL ARMS CONTROL COMMITTEE 2010 ANNUAL REPORT

1. NATIONAL CONVENTIONAL ARMS CONTROL COMMITTEE 2010 ANNUAL REPORT Briefing to the JSCD Parliament, Cape Town 09 June 2011

2. INTRODUCTION To provide an overview of the NCACC�s 2010 Annual Report to Parliament.

3. REPORTING REQUIREMENTS The NCACC reporting obligations are prescribed in Section 23 of the NCAC Act. Ito this Act the NCACC is required to provide quarterly and annual reports to the Parliament. The content of the annual report must reflect information in relation to Country, Category and Value. The information that the NCACC discloses should not compromise the security, commercial and other confidential interests. This Annual Report that the NCACC presents is prepared in a manner that fully complies with the set reporting obligations of the NCACC.

4. NCACC�s LEGISLATIVE FRAMEWORK AND MANDATE The NCACC is established in terms of the NCAC Act which forms the basis for the NCACC�s existence and operation. The Act also establishes supporting structures. The Mandate of the NCACC is to regulate the development, manufacture, possession, trade and transfer of conventional arms in South Africa. The Act provides for detailed functions of the NCACC. Over and above this, the NCACC administers the Regulation of Foreign Military Assistance Act (RFMA) and the Prohibition of Mercenary Activities Act.

5. COMPOSITION OF THE NCACC The NCACC is a Cabinet Committee sui generis appointed specifically by the President. The NCACC comprises 7 Cabinet Ministers and 3 Deputy Ministers. By law the positions of Chairperson and Deputy Chairperson are held by Cabinet Ministers who do not have line function interests in the conventional arms business. Min J.T. Radebe (Chair) and Min G.N. Pandor (Dep Chair)

6. COMPOSITION OF MEMBERS Min L.N. Sisulu Min R. Davies Min S. Cwele Min M. Nkoana- Mashabane Min N. Mthethwa Dep Min T.S.P. Makwetla Dep Min E. Ebrahim Dep Min N.M. Nene

7. STRUCTURES OF THE NCACC For the NCACC to deliver on its mandate, the following structures are established under the NCACC: Directorate Conventional Arms Control to provide the Secretariat and Administrative support. The Inspectorate to look after matters of compliance. The Scrutiny Committee that considers applications and makes recommendations to the NCACC. Over and above these structures, the NCACC is supported by various government departments and agencies which, inter alia, include the SAPS, DOD, DIRCO, SSA, DTI, NPA and Customs.

8. FUNCTIONING OF THE NCACC The NCACC meets on monthly basis to consider arms transfer applications lodged by the defence industry with the Secretariat. In deciding on these applications, the NCACC considers, in context, and in aggregate, a range of factors as provided for in Section 15 of the Act (Guiding Principles). On the basis of its consideration, the NCACC either Approves or Denies permit applications. The NCACC has a mechanism of responding to developing situations in countries. Using the departments inputs (DIRCO, SSA and DI) ,if there is a development of concern in a particular country, the NCACC immediately places applications to that country on HOLD.

9. FUNCTIONING OF THE NCACC The NCACC monitors such a situation. If it further deteriorates, the NCACC DENIES authorization to such countries. In the year under review, the NCACC invoked this mechanism and placed on HOLD authorization applications to various countries. In order to facilitate trade, the NCACC delegates some its powers particularly to the Secretariat The Secretariat executes the decisions of the NCACC. The Inspectorate checks for compliance with decisions.

10. LEGISLATIVE DEVELOPMENTS In the period under review, the following legislative developments took place: Prohibition of Mercenary Activities Act . Signed into law in November 2007. Regulations to implement this Act are in the approval stage. NCAC Act. The revised Regulations have been completed in line with the NCAC Amendment Act are being processed for promulgation.

11. PROCESSED PERMIT APPLICATIONS In the period under review, the NCACC considered and approved the following permits: Registration Permits 65 Marketing Permits 39 Contracting Permits 345 Export Permits 3 536 Import Permits 2 592 Conveyance Permits 10

12. VALUES OF PERMITS ISSUED The total value of permits issued by the NCACC in 2010 is as follows: Contracting Permits - R 27,7 billion in 83 countries. Export Permits - R 8,3 billion in 92 countries Import Permits - R 3,9 billion from 69 countries.

13. CATERGORISATION OF WEAPONS Is the tool used to understand the lethality of an equipment and these are: Category A. Comprising sensitive major conventional implements of war that could cause heavy personnel casualties and/or major damage and destruction to materiel, structures, objects and facilities. Examples are fighter aircraft, submarines, explosives, missiles, bombs, artillery guns, tanks, weapons with a calibre of 12,7mm (0, 5 inch) and larger, etc. Category B. Comprising all types of handheld and portable assault weapons of a calibre smaller than 12,7mm (0,5 inch). Examples are assault rifles, machine guns, ammunition for the weapons, etc.

14. Category C. Comprising all support equipment usually employed in the direct support of combat operations that have no inherent capability to kill or to destruct. Examples are radio transceivers, radars, unmanned air vehicles, simulators, etc. Category D. Comprising all purposely designed de-mining, mine clearing and mine detection equipment and all non-lethal pyrotechnical and riot control products. Examples are mine detectors, riot control agents, flares, etc. � Category E. Comprising all those armaments and related products that are not allowed to be sold. Examples are anti-personnel mines, incendiary weapons, laser weapons, etc. � Category G. Comprising all purposely built armaments manufacturing equipment, plants, facilities and test ranges for the manufacture, development, maintenance, test, upgrade and refurbishment of armaments products. As well as all purposely-developed techniques and services, other than contractual after-sales service, that has a relevance to the development, use, maintenance, assistance and advice in relation to armaments and related products.

15. COUNTRIES EXPORTED TO

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24. PEACEKEEPING, MILITARY EXERCISES, HUMANITARIAN AID & MILITARY TRAINING

25. PEACEKEEPING, MILITARY EXERCISES, HUMANITARIAN AID & MILITARY TRAINING

26. EXPORT GROWTH(Actual Values)

27. BUSINESS PROFILE (R Billion)

28. Thank You