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A FIVE-YEAR REVIEW OF THE DEFENCE SECTOR 2004-2009 9 June 2009

2. . . Maggie structure of the Department; overview of the issues emanating from policy initiatives, oversight meetings of the Portfolio Committee, SONA's, budgets

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A FIVE-YEAR REVIEW OF THE DEFENCE SECTOR 2004-2009 9 June 2009

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    2. 2 Maggie – structure of the Department; overview of the issues emanating from policy initiatives, oversight meetings of the Portfolio Committee, SONA’s, budgets & annual reports Peter – overview of issues emanating from legislation, oversight meetings of the Joint Standing Committee, AG’s reports & entities

    3. 3 The Department of Defence and Military Veterans is made up of the Defence Secretariat and the South African National Defence Force.The Department of Defence and Military Veterans is made up of the Defence Secretariat and the South African National Defence Force.

    4. 4 The Secretary for Defence is the Head of the Department, the Accounting Officer, the Information Officer and the principal advisor to the Minister of Defence on defence policy matters. The Chief of the SANDF commands the Defence Force under the authority of the President and in accordance with the directions of the Minister of Defence. He is also the principal advisor to the Minister of Defence on military policy matters. The Secretary for Defence and the Chief of the SANDF, operating under the direction of the Ministry of Defence, act within their areas of responsibility to provide strategic direction to the DODThe Secretary for Defence is the Head of the Department, the Accounting Officer, the Information Officer and the principal advisor to the Minister of Defence on defence policy matters. The Chief of the SANDF commands the Defence Force under the authority of the President and in accordance with the directions of the Minister of Defence. He is also the principal advisor to the Minister of Defence on military policy matters. The Secretary for Defence and the Chief of the SANDF, operating under the direction of the Ministry of Defence, act within their areas of responsibility to provide strategic direction to the DOD

    5. 5 Defence update Military Veterans Promoting peace, security and stability in the region and the continent Promoting the African Agenda Inadequate funding Youth and skills development HIV and AIDS Skills losses Maintenance backlog of infrastructure and facilities

    6. 6 Combat readiness & modernisation of landward forces Aerospace, Maritime and Defence Industries Association Borderline control

    7. 7 Departmental mandate derived from the Constitution, White Paper on Defence (1996) & Defence Review (1998) White Paper & Defence Review did not make provision for new contingencies; SANDF not designed & funded in line with the level of involvement in peace missions Policy docs had to be revised – process started in 2004/05 5 years later – the final draft of the Defence Update has not yet been presented to Parliament, limiting the effective monitoring of defence activities Recommendation: Since Update provides long-term indication of defence needs it is crucial that the presentation thereof to Parliament should be prioritised as a matter of urgency The mandate of the Department is derived from the Constitution, the White Paper on Defence, the Defence Review, and national legislation. These policy documents stipulate what is expected of the Department and specifically the SANDF. The current White Paper on Defence was a ground-breaking document which stipulated the role and responsibilities of defence in a democracy. However, in order to make provision for new contingencies which could not have been envisaged during the first decade of democratic rule, the DOD decided in 2003/04 to revisit the White Paper during the 2004/05 financial year. Similarly, the Defence Review was designed to provide a force design and structure for the SANDF for the medium to long term. However, since the promulgation of the Defence Review there have been numerous operational developments which have shown that the SANDF is not designed and funded in line with the level of involvement in peace missions. It was therefore decided that the Defence Review should also be revisited during the 2004/05 financial year in order to ensure long-term alignment with Government's expectations and the operational sustainability of the SANDF’s capabilities. However, five years later, the final draft of the Defence Update has not yet been presented to Parliament. This is problematic, since it limits the effective monitoring of defence activities. Since the Update provides a long-term indication of defence needs it is crucial that the presentation thereof to Parliament should be prioritised as a matter of urgency The mandate of the Department is derived from the Constitution, the White Paper on Defence, the Defence Review, and national legislation. These policy documents stipulate what is expected of the Department and specifically the SANDF. The current White Paper on Defence was a ground-breaking document which stipulated the role and responsibilities of defence in a democracy. However, in order to make provision for new contingencies which could not have been envisaged during the first decade of democratic rule, the DOD decided in 2003/04 to revisit the White Paper during the 2004/05 financial year. Similarly, the Defence Review was designed to provide a force design and structure for the SANDF for the medium to long term. However, since the promulgation of the Defence Review there have been numerous operational developments which have shown that the SANDF is not designed and funded in line with the level of involvement in peace missions. It was therefore decided that the Defence Review should also be revisited during the 2004/05 financial year in order to ensure long-term alignment with Government's expectations and the operational sustainability of the SANDF’s capabilities. However, five years later, the final draft of the Defence Update has not yet been presented to Parliament. This is problematic, since it limits the effective monitoring of defence activities. Since the Update provides a long-term indication of defence needs it is crucial that the presentation thereof to Parliament should be prioritised as a matter of urgency

    8. 8 Veterans’ needs should be fully integrated into the Department’s system Issues that need to be investigated & addressed include employment, training & skills development; housing; medical care; pensions & grants etc. Recommendation: Department should make a presentation to the Portfolio Committee on the restructuring of the Department in order to accommodate Military Veterans effectively Government is committed to the plight of military veterans. This has been made clear through Government’s restructuring of the Department of Defence to include military veterans. It is crucial that veterans should be fully integrated into the Department’s system as soon as possible. Issues that need to be investigated & addressed include employment, training & skills development; housing; medical care; pensions & grants etc. It is therefore recommended that the Department should make a presentation to the Portfolio Committee on the restructuring of the Department in order to accommodate Military Veterans effectively.Government is committed to the plight of military veterans. This has been made clear through Government’s restructuring of the Department of Defence to include military veterans. It is crucial that veterans should be fully integrated into the Department’s system as soon as possible. Issues that need to be investigated & addressed include employment, training & skills development; housing; medical care; pensions & grants etc. It is therefore recommended that the Department should make a presentation to the Portfolio Committee on the restructuring of the Department in order to accommodate Military Veterans effectively.

    9. 9 Government is committed to the peace & election processes in the region/continent However, participation in current operations has far exceeded the initial anticipated level of involvement – adverse effect on the ability of the SANDF to maintain & sustain certain capabilities due to budget constraints Recommendation: Department should report to Parliament on the financial implications, deployment, training, rotations, logistical support and morale of SANDF forces in various peace missions; limited funds should be taken into consideration when further external deployments are considered The White Paper on Defence stipulates that the SANDF may be employed “for service in compliance with the international obligations of the Republic with regard to international bodies and other States”. Giving impetus to this, one of the Department’s military objectives is to promote peace, security and stability in the region and the continent. Government is committed to the peace and election processes in the region and the continent. However, the current situation has resulted in some problems, since the SANDF’s participation in these operations has far exceeded the initial anticipated level of involvement. As a result, the DOD has to maintain a sense of balance between preparing for defending the country and its people on the one hand, and increasingly getting involved in peace operations on the other hand. This has had an adverse effect on the ability of the SANDF to maintain and sustain certain capabilities due to budget constraints. It is therefore recommended that the Department should report to Parliament on the financial implications, deployment, training, rotations, logistical support and morale of SANDF forces in various peace missions. Furthermore, limited funds should be taken into consideration when further external deployments are considered.The White Paper on Defence stipulates that the SANDF may be employed “for service in compliance with the international obligations of the Republic with regard to international bodies and other States”. Giving impetus to this, one of the Department’s military objectives is to promote peace, security and stability in the region and the continent. Government is committed to the peace and election processes in the region and the continent. However, the current situation has resulted in some problems, since the SANDF’s participation in these operations has far exceeded the initial anticipated level of involvement. As a result, the DOD has to maintain a sense of balance between preparing for defending the country and its people on the one hand, and increasingly getting involved in peace operations on the other hand. This has had an adverse effect on the ability of the SANDF to maintain and sustain certain capabilities due to budget constraints. It is therefore recommended that the Department should report to Parliament on the financial implications, deployment, training, rotations, logistical support and morale of SANDF forces in various peace missions. Furthermore, limited funds should be taken into consideration when further external deployments are considered.

    10. 10 Department supports AU and NEPAD through its involvement in the African Standby Force & SADC’s Early Warning System Recommendation: Department should report to Parliament on the specific role played by the SANDF in these various structures & the budgetary implications thereof Government is focussed on promoting the African Agenda by means of strengthening African institutions, including the African Union and its development programme, NEPAD. The Department supports NEPAD through its involvement in strategies in support of the African Union Peace and Security Council, the African Standby Force, the South African Development Community’s Early Warning System, and its Organ on Politics, Defence and Security. It is recommended that the Department should report to Parliament on the specific role played by the SANDF in these various structures & the budgetary implications thereofGovernment is focussed on promoting the African Agenda by means of strengthening African institutions, including the African Union and its development programme, NEPAD. The Department supports NEPAD through its involvement in strategies in support of the African Union Peace and Security Council, the African Standby Force, the South African Development Community’s Early Warning System, and its Organ on Politics, Defence and Security. It is recommended that the Department should report to Parliament on the specific role played by the SANDF in these various structures & the budgetary implications thereof

    11. 11 The gap between defence policy and the allocated budget on the one hand, and the recurring reprioritisation of activities and reallocation of funds on the other hand, inevitably has a detrimental effect on the functioning of the Department and the combat readiness of the SANDF. The gap between defence policy and the allocated budget on the one hand, and the recurring reprioritisation of activities and reallocation of funds on the other hand, inevitably has a detrimental effect on the functioning of the Department and the combat readiness of the SANDF.

    12. 12 In November 2008, the Portfolio Committee on Defence came to the conclusion that the current budgetary allocation of the Department, as a percentage of the gross domestic product (GDP) is inadequate to address current operational challenges. The Committee therefore recommended that the annual budget allocation of the Department should be increased from the current 1.2 percent of GDP to 1.7 percent during the next four years. The Committee furthermore maintained that Government should decide whether the SANDF is mandate-driven or financial-driven and that the decision should be supported by the appropriate funding.In November 2008, the Portfolio Committee on Defence came to the conclusion that the current budgetary allocation of the Department, as a percentage of the gross domestic product (GDP) is inadequate to address current operational challenges. The Committee therefore recommended that the annual budget allocation of the Department should be increased from the current 1.2 percent of GDP to 1.7 percent during the next four years. The Committee furthermore maintained that Government should decide whether the SANDF is mandate-driven or financial-driven and that the decision should be supported by the appropriate funding.

    13. 13 Military Skills Development System – objective: To enhance the SANDF’s combat readiness through annual intakes of young, healthy & fit individuals Afford development opportunities for youth Aim is to increase intake to 10 000/year – R700 million has been allocated Recommendation: Department should annually give an overview of progress, successes & challenges relating to MSDS Cabinet approved the Military Skills Development System (MSDS) in 2003. The objective of the MSDS is, firstly, to enhance the SANDF’s combat readiness through annual intakes of young, healthy and fit individuals that are representative of the country’s population, and secondly, to afford development opportunities for the youth of South Africa. Since the MSDS is one of Government’s key focus areas, the Department has been allocated R700 million in order to increase the annual intake to up to 10 000 recruits from the year 2010. It is recommended that the Department should annually give an overview of progress, successes & challenges relating to MSDSCabinet approved the Military Skills Development System (MSDS) in 2003. The objective of the MSDS is, firstly, to enhance the SANDF’s combat readiness through annual intakes of young, healthy and fit individuals that are representative of the country’s population, and secondly, to afford development opportunities for the youth of South Africa. Since the MSDS is one of Government’s key focus areas, the Department has been allocated R700 million in order to increase the annual intake to up to 10 000 recruits from the year 2010. It is recommended that the Department should annually give an overview of progress, successes & challenges relating to MSDS

    14. 14 2008 court ruling stipulated that the SANDF may no longer automatically exclude HIV+ people from recruitment, external deployment & promotion – instructed SANDF to amend its health classification policy within 6 months Recommendation: Department should report to Parliament on progress made with the institutionalisation of court order An important issue that needs to be considered is the 2008 court ruling relating to the SANDF’s policy on HIV which stipulated that the SANDF may no longer automatically exclude HIV positive people from recruitment, external deployment and promotion. In this regard, the court order instructed the SANDF to amend its health classification policy within six months to allow for individualised health assessments of recruits and current members of the armed forces. The Department should report to Parliament on progress made with the institutionalisation of the court order as a matter of urgency.An important issue that needs to be considered is the 2008 court ruling relating to the SANDF’s policy on HIV which stipulated that the SANDF may no longer automatically exclude HIV positive people from recruitment, external deployment and promotion. In this regard, the court order instructed the SANDF to amend its health classification policy within six months to allow for individualised health assessments of recruits and current members of the armed forces. The Department should report to Parliament on progress made with the institutionalisation of the court order as a matter of urgency.

    15. 15 The retention of specialist and scarce skills personnel remains a challenge for the SANDF. The demand for technical skills from the private sector attracts members, since the incentives are more attractive than those offered by the SANDF. In order to mitigate the outflow of skills, the Department has developed various incentive schemes for a number of scarce skills groups. The financial implication of this is that a substantial portion of funds, which were allocated for operating costs, were utilised to fund these incentives. However, despite the implementation of these preventative measures, the rate of loss is still increasing. The Portfolio Committee on Defence recommended in November 2008 that the DOD should consult with the Department of Public Service and Administration regarding the development and implementation of a special dispensation for SANDF members, particularly those of pilots and other scarce skills positions. The Committee furthermore recommended that the Department should finalise the review process of the legal contracts that bind members contractually to serve for a specified period after the completion of their specialised training. The retention of specialist and scarce skills personnel remains a challenge for the SANDF. The demand for technical skills from the private sector attracts members, since the incentives are more attractive than those offered by the SANDF. In order to mitigate the outflow of skills, the Department has developed various incentive schemes for a number of scarce skills groups. The financial implication of this is that a substantial portion of funds, which were allocated for operating costs, were utilised to fund these incentives. However, despite the implementation of these preventative measures, the rate of loss is still increasing. The Portfolio Committee on Defence recommended in November 2008 that the DOD should consult with the Department of Public Service and Administration regarding the development and implementation of a special dispensation for SANDF members, particularly those of pilots and other scarce skills positions. The Committee furthermore recommended that the Department should finalise the review process of the legal contracts that bind members contractually to serve for a specified period after the completion of their specialised training.

    16. 16 Maintenance backlog poses a serious challenge Recommendation: Department should provide Parliament with an updated report on the state of facilities & the maintenance backlog as well as plans to eliminate this backlog The Department utilises a large number of state facilities. Many of these facilities no longer conform to the functional or minimum requirements of the Occupational Health and Safety Act. Moreover, the allocated funds were not sufficient to address this backlog. Without sufficient funds, the backlog increased and the rate of progress to eliminate the backlog has therefore not proceeded according to plan. It is recommended that the Department should provide Parliament with an updated report on the state of facilities & the maintenance backlog as well as plans to eliminate this backlog.The Department utilises a large number of state facilities. Many of these facilities no longer conform to the functional or minimum requirements of the Occupational Health and Safety Act. Moreover, the allocated funds were not sufficient to address this backlog. Without sufficient funds, the backlog increased and the rate of progress to eliminate the backlog has therefore not proceeded according to plan. It is recommended that the Department should provide Parliament with an updated report on the state of facilities & the maintenance backlog as well as plans to eliminate this backlog.

    17. 17 SA Army’s weapons systems outdated To manage the increased demand for participation in peace missions, Army will require capital investment Significant capital investment envisaged for 2009/10 onwards Recommendation: Parliament should support efforts to upgrade the Army’s weapon systems, considering the pressure experienced due to peace missions; Parliament should closely monitor the acquisition process to ensure openness and transparency at all levels The landward forces of the SANDF (mainly the SA Army) are the backbone of South Africa’s peace and stability initiatives on the Continent. However, the SA Army’s weapons systems are severely outdated, and requires capital investment. Although contractual commitments have not been finalised, significant capital investment in this environment is envisaged from 2009/10 onwards. It is recommended that Parliament should support efforts to upgrade the Army’s weapon systems, considering the pressure experienced due to peace missions. In addition, Parliament should closely monitor the acquisition process to ensure openness and transparency at all levels.The landward forces of the SANDF (mainly the SA Army) are the backbone of South Africa’s peace and stability initiatives on the Continent. However, the SA Army’s weapons systems are severely outdated, and requires capital investment. Although contractual commitments have not been finalised, significant capital investment in this environment is envisaged from 2009/10 onwards. It is recommended that Parliament should support efforts to upgrade the Army’s weapon systems, considering the pressure experienced due to peace missions. In addition, Parliament should closely monitor the acquisition process to ensure openness and transparency at all levels.

    18. 18 The Aerospace, Maritime and Defence Industries Association (AMD) is acknowledged as South Africa’s defence-related industries trade association and is mandated by its members to support and promote the collective interests of the South African defence-related industry. Membership includes the seven largest defence related companies, Armscor, historically disadvantaged enterprises and international partnerships like BAE Systems and Boeing SA. Since the SANDF is the Association’s main client, it is the intention that the Association should regularly interact with the Policy and Planning Division within the DOD and that it should have insight into the DOD strategic planning. However, during a meeting in November 2008, the Portfolio Committee on Defence were informed that regular interaction between the DOD and AMD does not take place as intended, and that relations were strained as a result of poor communication. Since a sophisticated local defence industry is crucial for the SANDF to maintain the necessary state of readiness in the most cost effective manner, the Portfolio Committee has recommended that the DOD should resolve a number of crucial issues as a matter of urgency. These include: The completion of the policy framework for the restructuring of the South African defence-related industry. This should entail improved communication with stakeholders in the defence industry. The capacity of Denel and Armscor to support the SANDF in maintaining its capabilities. The DOD should annually report to Parliament on progress made with the development and implementation of the Defence Industry Strategy. Other stakeholders such as the Departments of Trade and Industry, Public Enterprises and Science and Technology should also be invited to participate in such a presentation. The AMD Board should report to Parliament twice a year. During the first parliamentary term, AMD should present its annual plan for the defence industry, whilst the progress made in the implementation of these plans should be reported during the fourth parliamentary term. The Aerospace, Maritime and Defence Industries Association (AMD) is acknowledged as South Africa’s defence-related industries trade association and is mandated by its members to support and promote the collective interests of the South African defence-related industry. Membership includes the seven largest defence related companies, Armscor, historically disadvantaged enterprises and international partnerships like BAE Systems and Boeing SA. Since the SANDF is the Association’s main client, it is the intention that the Association should regularly interact with the Policy and Planning Division within the DOD and that it should have insight into the DOD strategic planning. However, during a meeting in November 2008, the Portfolio Committee on Defence were informed that regular interaction between the DOD and AMD does not take place as intended, and that relations were strained as a result of poor communication. Since a sophisticated local defence industry is crucial for the SANDF to maintain the necessary state of readiness in the most cost effective manner, the Portfolio Committee has recommended that the DOD should resolve a number of crucial issues as a matter of urgency. These include: The completion of the policy framework for the restructuring of the South African defence-related industry. This should entail improved communication with stakeholders in the defence industry. The capacity of Denel and Armscor to support the SANDF in maintaining its capabilities. The DOD should annually report to Parliament on progress made with the development and implementation of the Defence Industry Strategy. Other stakeholders such as the Departments of Trade and Industry, Public Enterprises and Science and Technology should also be invited to participate in such a presentation. The AMD Board should report to Parliament twice a year. During the first parliamentary term, AMD should present its annual plan for the defence industry, whilst the progress made in the implementation of these plans should be reported during the fourth parliamentary term.

    19. 19 SANDF was supposed to have withdrawn from sustained support to the SAPS by 31 March 2009 – did not materialise – SANDF still patrol RSA/Zimbabwe border Recommendation: Current ineffective border control is problematic – Department should look into the possible future role of the SANDF The SANDF took over the borderline control task from the police in 1987 and was scheduled to withdraw from this task at the end of March 2009. However, Pres Kgalema has approved the deployment of 160 soldiers until March 2010, with the aim of patrolling the SA/Zimbabwe border. It is evident that the current ineffective border control is problematic. The Department should therefore engage with all other stakeholders in order to determine the future role of the SANDF in borderline control. The SANDF took over the borderline control task from the police in 1987 and was scheduled to withdraw from this task at the end of March 2009. However, Pres Kgalema has approved the deployment of 160 soldiers until March 2010, with the aim of patrolling the SA/Zimbabwe border. It is evident that the current ineffective border control is problematic. The Department should therefore engage with all other stakeholders in order to determine the future role of the SANDF in borderline control.

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