DEPARTMENT OF DEFENCEAnnual Report

FY2003 - 2004

ByMr A. Visser

Chief Director Strategic Management19 October 2004

INTRODUCTION

The Department of Defence Annual Report for the financial year 2003/04 needs to be contextualised and read together with the Strategic Business Plan for the same period.

The Strategic Business Plan outlined the programme, sub-programmes, and subsequent outputs for the DOD which were identified within the constraints of the Medium-term Expenditure Framework.

SCOPE• Strategic Direction• Defence Objectives, Outcome and Outputs • Organisational Structures and Human

Resources Management• Programme Performance

– Synopsis of General Performance (Chapter 4)– Defence Administration (Chapter 5)– Command and Control (Chapter 6)– Landward Defence (Chapter 7)– Air Defence (Chapter 8)

SCOPE (Cont)– Maritime Defence (Chapter 9)– Military Health Service (Chapter 10)– Defence Intelligence (Chapter 11)– Joint Support (Chapter 12)– Report on the Reserve Force (App A)– Service Delivery Improvement (App B)

• Financial Statements

CHAPTER 1: STRATEGIC DIRECTION

• Confirms the following:– Alignment with Cabinet Priorities– Strategic Profile– Minister of Defence’s Priorities– Responsibilities and Strategic Direction in the

DOD• Policy Decisions taken during FY2003/04:

– Funding for Operations: Planning for operations should not exceed the allocation.

– White Paper on Defence: To be revisited.– Defence Review: To be revisited.

• DOD’S Strategic Military Objectives:– Defence against Aggression.– Promoting Security.– Supporting the People of South Africa

• Defence Outcome:– “Effective defence for a democratic South Africa”

• Government clusters. DOD participates in the following clusters in order to accommodate the Government’s immediate operational needs:– Justice, Crime Prevention and Security (JCPS).– International Relations, Peace and Security (IRPS).– Governance and Administration (G&A).

CHAPTER 2: DEFENCE OBJECTIVES, OUTCOME AND OUTPUTS

CHAPTER: 3STRUCTURES & HR

• Contents prescribed by Public Service Regulations. • HR Strategy 2010. The macro HR strategic direction for the

DOD to be followed until the year 2010 is contained in HR Strategy 2010. This strategy addresses the high-level HR management concept to align the HR composition of the DOD to effectively and efficiently execute the DOD’s mission. Desired end-states of HR Strategy 2010 are:– A rejuvenated SANDF HR Composition – An affordable DOD HR Composition– A practised One-Force Model– A new way that members serve– An optimally representative DOD– Excellent HR service delivery– Harmony between the uniformed and civilian components– Retention of operational and functional expertise– Labour peace

CHAPTER: 3 (Cont’d) • Employee cost. The actual employee cost as a percentage of total

cost including Strategic Defence Packages is 36% which is within the benchmark of 40% as stated in the 1998 Defence Review. However, employee cost as a percentage of total cost, excluding Strategic Defence Packages, is 52%.

• Also included are:– Macro-workforce composition– Personnel expenditure– Employment and vacancies– Employment changes– Employment equity– Performance rewards– Utilisation of leave– Labour relations– Discipline– Skills development

CHAPTER 4:SYNOPSIS OF GENERAL PERFORMANCE

• Governance and Accountability– The DOD made great strides in improving efficiency and

ensuring compliance with Government imperatives.– Legislation and Policy:

• The Antipersonnel Mines Prohibition Bill and the ARMSCOR Act were processed during the year under review.

– Defence Diplomacy• Memoranda of Understanding• SADC activities• African Union activities – African Standby Force

CHAPTER 4 (Cont’d)• Operations

– ‘Regional Security’ operations were mainly deployments as part of the UN mission to the Democratic Republic of Congo (MONUC), and the African Union Mission in Burundi (AMIB). SANDF military observers and staff officers were deployed on UN missions in Ethiopia, Eritrea, Liberia, and Comoros. A daily average of over 3000 men and women of the SANDF were deployed on these operations, making the SANDF a significant, if not the largest, contributor of peacekeeping troops in Africa.

– ‘Support to the People’ operations were mainly focused on continuous borderline control operations (Op INTEXO), involving on a daily basis, an average of eleven companies of troops, (over 2600 men and women).

• Defence Capabilities– The number of men and women serving full-time in the

Defence Force, which peaked at 103 000 in 1996, has been reduced to the current strength of just over 75 000.

– SANDF providing credible deterrence against aggression.

– Strategic Defence Package. The first naval vessels were delivered during the year and the first aircraft and more vessels will be supplied in FY2004/05.

CHAPTER 4 (Cont’d)

CHAPTER 4 (Cont’d)

• Social Contribution– SAAF Project SIYANDIZA - which is an aviation

awareness programme launched by the SA Air Force, reached some 60 000 learners in 55 schools.

– The Service Corps Projects: Agricultural Food Security Project; Working for Water Project and the Mukula Stone Crushing Project.

– Introduction of Military Skills Development.– Project Phoenix. Transforming the Reserve

Force – young and fit recruits.

CHAPTER 4 (Cont’d)

• Environmental Management– The International Conference on Military Integrated

Environmental Management took place in Pretoria in August 2003. The governments of South Africa and the USA sponsored the Conference, which was attended by 120 delegates from 26 countries.

– During Exercise SEBOKA, held at Lohatlha, an environmental support team participated in the exercise to prepare a report on environmental issues. This led to the establishment of an Integrated Project Team for environmental considerations in operations.

CHAPTER 5:DEFENCE ADMINISTRATION

• The Defence Administration Programme is responsible for administrating and directing the DOD’s activities.

• Comprises of the following sub-programmes:– Political Direction (Ministry of Defence)– Departmental Direction (Secretary for Defence)– SANDF Command and Control (Chief of the SANDF)– Policy and Planning– Financial Services– Departmental Acquisition and Procurement – Corporate Services– Inspection Services– Equal Opportunities and Affirmative Action

CHAPTER 5: (Cont’d)• Legislation developed and finalised – Anti-Personnel Mines

Prohibition Bill; Bill to review Armscor Act.• International Conventions and Agreements and Policies

developed, eg Certain Conventional Weapons Convention; SADC Mutual Defence Pact

• Defence diplomatic activities (MOUs, bilateral and multilateral agreements were drafted and/or signed).

• In supporting the National Conventional Arms Control Committee, 3311 permits were issued during the year under review.

• Statutory requirements with regard to Strategic Business Plans and Annual Reports were complied with.

CHAPTER 5: (Cont’d)• The Defence GRAP Project was registered with the

purpose of aligning the information support systems with the requirements of the PFMA and NT. Phase 1 (Proposed Defence Accounting Standards) & 2 (Evaluation of Directional Options) were successfully completed during the period under review.

• The delivery of corvettes as part of the Strategic Defence Packages.

• The first Hawk was released to the public in February 2004.• The Corporate Staff Division provided sound centralised

staff capability to the SANDF with regard to planning, legal, defence foreign relations, corporate communications, defence reserves and chaplain services. The Head of Communication was appointed in the Office of the Minister of Defence

CHAPTER 5: (Cont’d)• The Defence Inspectorate sought and successfully

obtained ISO 9001:200 Certification in November 2002 from the South African Bureau of Standards (SABS). Thus the Inspectorate remains subject to ongoing audits by the SABS.

• Various policies pertaining to Equal Opportunity were revised.

• Good progress in making DOD facilities barrier-free for the disabled members.

• A “Hot-line” was established jointly with the Military Police Agency to monitor violence against women.

CHAPTER 6:COMMAND AND CONTROL

• The new structure comprises of a strategic level divisional headquarters, a joint operational headquarters at the operational level, and nine joint tactical headquarters on the tactical level for each province.

• The main focus of the Joint Operations Divisional Headquarters is on directing, planning and the conducting of operations in accordance with the Military Strategy and Employ Forces Strategy.

• The missions cover the three military strategic objectives, namely, ‘Defence Against Aggression’, ‘Support to the People’, and ‘Promote Regional Security’.

CHAPTER 6: (Cont’d)• External Operations: Burundi, DRC,

Ethiopia, Eritrea, Rwanda and Liberia.• Internal Operations: Operation INTEXO

(Support to the SAPS) - Combating organised crime

• Joint and Multinational Exercises.

CHAPTER 7:LANDWARD DEFENCE

• FY2003/04 - high levels of operational activity. Deployments in Burundi and the Democratic Republic of Congo.

• Twelve Regular Force Companies and 23 Reserve Force Platoons were deployed internally under extremely restrictive funding conditions, on a continuous basis.

• 15 776 SA Army members also qualified on formal career developmental courses during the year.

• Progress in the phasing out of the Commandos, awaiting the SA Police Service Entry Strategy before the phasing out can be finalised.

• Costs of sustainment of main combat equipment, facilities, and general commodities have a serious negative impact on combat-readiness.

CHAPTER 8:AIR DEFENCE

• “Support to the People of South Africa”: the SA Air Force was involved in air transport, humanitarian operations and coastal patrol missions. 1 356 hours Flown in support of the SA Police Services in crime prevention and border protection operations.

• “Promoting Regional Security”: More than 1 800 hours were flown in support of the deployments in the DRC and Burundi, and

• During the year the SA Air Force flew a total of 35 472 hours and 3 384 force employment missions in service of the country.

• Return to regular operational service of the Boeing 707 aircraft system, by National Treasury approval to have all funds from flights against repayment returned to the SA Air Force's operating budget .

• Relief flights to Iran, Madagascar and Comoros.

CHAPTER 9:MARITIME DEFENCE

• SA Navy had an under-funded risk of Rm157, achieved the key objective of 100% expenditure of budget.

• Strategic Defence Packages (SDPs) delivery of first two Type MEKO® A-200 (SAN) Patrol Corvette.

• In preparation for the new force structure elements, Navy reduced its geographic footprint by scaling down and abolishing units and ships.

• Naval Dockyard Simon’s Town to ARMSCOR, workgroups currently addressing issues of human resources, facilities and operating procedures.

• SA Navy was able to meet all of the set objectives in respect of the provision of prepared and supported forces as required by Chief of Joint Operations, well within Force Employment hours allocated.

CHAPTER 10:MILITARY HEALTH SERVICE

• SA Military Health Service participation in rescue efforts in the Algerian Disaster.

• The hosting of an International Congress of Military Medicine for Veterinarians.

• Opening of the first PHIDISA Clinic in January 2004. The combined efforts of SAMHS and the USA regarding the HIV/AIDS retroviral research is gaining momentum.

• Aspects of Chemical and Biological Defence were presented to elements in the SANDF, personnel deployed to DRC and Burundi, various civilian institutions as well as at two international workshops.

• SA Excellence Model was successfully implemented to the lowest levels in SAMHS structure.

CHAPTER 11:DEFENCE INTELLIGENCE

• Contribution to the peace processes in the DRC and Burundi.

• Continuous engagement with national and operational initiatives ensured the delivery of products appropriate to security management in South Africa.

• Defence Intelligence continued to support other departments, especially in matters related to internal stability, security and law enforcement.

• The relocation of the Defence Intelligence Headquarters building remains a priority.

• The renewal of Defence Intelligence’s information systems is another challenge.

• Staffing of posts with members with the correct profile and training, remains one of the primary challenges.

CHAPTER 12:JOINT SUPPORT

• Provided excellent logistics, military policing, personnel administration, and Command and Management Information support to the external missions.

• The problem relating to the disposal of redundant/ obsolete ammunition is receiving urgent attention.

• Challenges are under-funding of Command and Management Information systems and services.

• Military Police Agency had to reprioritise its outputs/functions and to restrict, and in some cases even stop, the less important functions/outputs due to budget constraints.

• Facilities maintenance backlog - closing of 4 SAI Battalion’s barracks in March 2004 by the Department of Labour as the buildings did not comply with the provisions of the Occupational Health and Safety Act.

RESERVE FORCE

• The state of the Reserve Force as a whole is a matter of concern, the Conventional Reserve, despite the interventions occasioned by Project PHOENIX, is still not a combat ready and deployable force.

• 3 000 Military Skills Development System trainees in 2005, promises to be the start of a limited flow of fully-trained personnel to the Reserves from 2007.

RESERVE FORCE (Cont’d)• The Army instituted a decentralised training

programme to enable conventional units to do basic and individual training of members who are recruited directly into units - great morale booster and will deliver six deployable sub-units (infantry and engineers) by October 2004.

• As 96% of the Reserves lie within the Army, this is where the greatest challenges lie in terms of funds to execute the desired renewal and transformation.

SERVICE DELIVERY IMPROVEMENT

• Pol & Plan Div - reconfiguration of functions and structures in order to ensure efficiency and effectiveness.

• Fin Div busy enhancing the Financial Management System (FMS) to comply with the Chart of Accounts .

• First video-conference facility to external operational Headquarters was completed - improved the effectiveness of day-to-day activities.

• Army – closing of Group HQs and Commando’s.• Air Force - Contract Review Committee was constituted

to review & adjust where necessary, all contracts for outsourced services and support.

• Anti-Retro Viral Rollout Plan was distributed to the units as a pro-active measurement for accreditation.

FINANCIAL STATEMENTS• General Defence Vote – Qualified Audit Report due to:

• Contingent liabilities: leave.• Physical and intangible asset movement schedules.• Departmental income.• Purchases and payables.• Irregularities and losses.

• Special Defence Account – Unqualified Audit Report.

DISCUSSION