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DEFENCE AMENDMENT BILL, 2014

DEFENCE AMENDMENT BILL, 2014. Presented by Dr S.M. Gulube Secretary for Defence 27 August 2014. AIM. To inform the PCD on the impact of the proposed amendments to sec 80 of the Defence Act, 2002, and make recommendations thereon. SCOPE. Background Objectives

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DEFENCE AMENDMENT BILL, 2014

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  1. DEFENCE AMENDMENT BILL, 2014 Presented by Dr S.M. Gulube Secretary for Defence 27 August 2014 DEFENCE AMENDMENT BILL, 2013

  2. AIM • To inform the PCD on the impact of the proposed amendments to sec 80 of the Defence Act, 2002, and make recommendations thereon. DEFENCE AMENDMENT BILL, 2013

  3. SCOPE • Background • Objectives • Accountability and Parliamentary procedures • Conclusion • Recommendation DEFENCE AMENDMENT BILL, 2013

  4. BACKGROUND • The Memo on the objectives of the Bill - procurement of armaments has been a subject of serious maladministration and malpractice. • This statement is inaccurate; • For past 5 years the SDA had an unqualified audit reports from the AGSA DEFENCE AMENDMENT BILL, 2013

  5. OBJECTIVES • The DoD submits that the Bill must be rejected as submitted hereunder: • SCAMP; • Defence Industry; • Strategic Partnerships; • National Security; • Financial Implications; and • Constitution DEFENCE AMENDMENT BILL, 2013

  6. 1. Strategic Capital Acquisition Master Plan • Is a projection of South Africa’s future required Military capabilities; • it provides critical intelligence which could be used to extrapolate what the RSA defence capability (Order of Battle and future technologies) will be at any given time; • Information regarding details of SCAMP is highly sensitive and not for public consumption. DEFENCE AMENDMENT BILL, 2013

  7. 2. RSA Defence Industry • It is not in the interest of the RSA defence industry to have acquisition details of Mil contractual negotiations and agreements projects made public. • Such an exercise could be damaging to the competitiveness of affected defence Co. DEFENCE AMENDMENT BILL, 2013

  8. 3. Strategic Partnerships • The Bill will jeopardise third party agreements / strategic partnerships; • Publishing commercial-in-confidence acquisition details will degrade the standing of the RSA defence industry in the International market place. DEFENCE AMENDMENT BILL, 2013

  9. 4. National Security • National security of the country will over the long-term will be compromised; • because of information regarding SA’ particular military components, systems and/ or technology being made available to certain elements that may pose threats to the people of the Republic and its territorial integrity. DEFENCE AMENDMENT BILL, 2013

  10. 5. Financial Implications. • The proposed Bill will have gross financial implications for the country, • The Bill will result in the loss of revenue for the Defence Industry and national tax revenue collections, because of the loss of international clients and concomitant skills and job losses. DEFENCE AMENDMENT BILL, 2013

  11. 6. Constitution • As a result of the above paragraphs, it is clear that the objectives of the proposed Bill will make it impossible for the South African National Defence Force to fulfil its constitutional mandate of providing for the defence and the protection of the Republic, its territory and its people DEFENCE AMENDMENT BILL, 2013

  12. Accountability and Reporting • Sec 199(8) of the Constitution, 1996 gives effect to the principle of transparency and accountability for security services and consequently the Joint Standing Committee on Defence (JSCD) was established in terms thereof. • The mandate of the JSCD is to investigate and make recommendations regarding the budget functioning, organisation, armaments, policy, morale and state of preparedness of the SANDF. DEFENCE AMENDMENT BILL, 2013

  13. Cont. • The DOD reports to and appears before the JSCD as required. • The Department will, in a closed session, report on all acquisition projects when so invited. • The SDA budget allocation per Main Programme is set out in the ENE for each Medium Term Expenditure Framework (MTEF) period. DEFENCE AMENDMENT BILL, 2013

  14. Cont. • The detail of these allocations is contained in the “Approval for Expenditure from the Special Defence Account”, approved by the MOD&MV on an annual basis. • This document is available for Parliamentary oversight and scrutiny through the Joint Standing Committee on Defence due to the content and security classification. • The final appropriation and actual expenditure of the SDA for the financial year is included in the Defence’ Annual Report as per PFMA. DEFENCE AMENDMENT BILL, 2013

  15. Cont. • Detailed and audited financial statements of the SDA are also included in Defence’ s Annual Report. DEFENCE AMENDMENT BILL, 2013

  16. Conclusion • As per legislation already in place, the DOD is required to report extensively to Parliamentary oversight structures; • As such there is no need for additional legislation to achieve this objective. • The approval of the Bill would severely prejudice national security and interest of the Republic. DEFENCE AMENDMENT BILL, 2013

  17. RECOMMENDATIONS • It is recommended that PCD should reject the proposed Bill. DEFENCE AMENDMENT BILL, 2013

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