NATIONAL NATIONAL CONVENTIONAL ARMS CONVENTIONAL ARMS CONTROL COMMITTEE CONTROL COMMITTEE 2008 ANNUAL REPORT2008 ANNUAL REPORT

Briefing to the PCD Briefing to the PCD

Parliament, Cape TownParliament, Cape Town

02 September 200902 September 2009

INTRODUCTIONINTRODUCTION

To provide an overview of the NCACC’s 2008 To provide an overview of the NCACC’s 2008 Annual Report to Parliament.Annual Report to Parliament.

The period covered is January to December 2008The period covered is January to December 2008

NCACC’s LEGISLATIVE NCACC’s LEGISLATIVE FRAMEWORK AND FRAMEWORK AND

MANDATEMANDATE The NCACC is established in terms of the NCAC Act The NCACC is established in terms of the NCAC Act

which forms the basis for the NCACC’s existence which forms the basis for the NCACC’s existence and operation.and operation.

The Act also establishes supporting structures.The Act also establishes supporting structures.

The Mandate of the NACCC is to regulate the The Mandate of the NACCC is to regulate the development, manufacture, trade and transfer of development, manufacture, trade and transfer of conventional arms in South Africa.conventional arms in South Africa.

The Act provides for detailed functions of the The Act provides for detailed functions of the NCACC.NCACC.

Over and above this, the NCACC administers the Over and above this, the NCACC administers the Regulation of Foreign Military Assistance Act (RFMA) Regulation of Foreign Military Assistance Act (RFMA) and the Prohibition of Mercenary Activities Act.and the Prohibition of Mercenary Activities Act.

COMPOSITION OF THE COMPOSITION OF THE NCACCNCACC

The NCACC is a Cabinet Committee The NCACC is a Cabinet Committee sui generis sui generis appointed specifically by the President.appointed specifically by the President.

The NCACC comprises of 8 Cabinet Ministers and 3 The NCACC comprises of 8 Cabinet Ministers and 3 Deputy Ministers.Deputy Ministers.

By law the positions of Chairperson and Deputy By law the positions of Chairperson and Deputy Chairperson are held by Cabinet Ministers who do Chairperson are held by Cabinet Ministers who do not have line function interests in the conventional not have line function interests in the conventional arms business.arms business.

For the reporting period, the NCACC Chair was Min For the reporting period, the NCACC Chair was Min Mufamadi and the Dep Chair was Min Sonjica.Mufamadi and the Dep Chair was Min Sonjica.

Other Members of the previous NCACC were:Other Members of the previous NCACC were:

Min M.G.P. Lekota.Min M.G.P. Lekota.

Min A. Erwin.Min A. Erwin.

Min N.C. Dlamini-Zuma.Min N.C. Dlamini-Zuma.

Min M.B. Mphahlwa.Min M.B. Mphahlwa.

Min R. Kasrils.Min R. Kasrils.

Min C. Nqakula.Min C. Nqakula.

Min M.A. Mangena.Min M.A. Mangena.

Dep Min A. Pahad.Dep Min A. Pahad.

Dep Min M.E. George.Dep Min M.E. George.

Dep Min Moleketi.Dep Min Moleketi.

STRUCTURES OF THE STRUCTURES OF THE NCACCNCACC

For the NCACC to deliver on its mandate, the For the NCACC to deliver on its mandate, the following structures are established under the following structures are established under the NCACC:NCACC:

Directorate Conventional Arms Control to provide the Directorate Conventional Arms Control to provide the Secretariat and Administrative support.Secretariat and Administrative support.

The Inspectorate to look after matters of compliance.The Inspectorate to look after matters of compliance.

Over and above these structures, the NCACC is Over and above these structures, the NCACC is supported by various government departments and supported by various government departments and agencies which, agencies which, inter aliainter alia, include the SAPS, DOD, , include the SAPS, DOD,

DICO, NIA, SASS, DTI, NPA and CustomsDICO, NIA, SASS, DTI, NPA and Customs. .

FUNCTIONING OF THE FUNCTIONING OF THE NCACCNCACC

The NCACC meets on monthly basis to consider arms The NCACC meets on monthly basis to consider arms transfer applications lodged by the defence industry transfer applications lodged by the defence industry with the Secretariat. with the Secretariat.

In deciding on these applications, the NCACC considers, In deciding on these applications, the NCACC considers, a whole range of factors as provided for in Section 15 of a whole range of factors as provided for in Section 15 of the Act (Guiding Principles).the Act (Guiding Principles).

On the basis of its consideration, the NCACC either On the basis of its consideration, the NCACC either Approves or Denies permit applications.Approves or Denies permit applications.

In order to facilitate trade, the NCACC delegates some In order to facilitate trade, the NCACC delegates some its powers particularly to the Secretariatits powers particularly to the Secretariat

The Secretariat executes the decisions of the NCACC.The Secretariat executes the decisions of the NCACC.

The Inspectorate checks for compliance with decisions.The Inspectorate checks for compliance with decisions.

LEGISLATIVE LEGISLATIVE DEVELOPMENTSDEVELOPMENTS

In the period under review, the following In the period under review, the following legislative developments took place:legislative developments took place:

Prohibition of Mercenary Activities Act Prohibition of Mercenary Activities Act . Signed into . Signed into law in November 2007. Regulations to implement law in November 2007. Regulations to implement this Act are pending promulgation at the this Act are pending promulgation at the Presidency.Presidency.

NCAC ActNCAC Act. The Amendment Act was passed by . The Amendment Act was passed by Parliament during 2008 and assented to by the Parliament during 2008 and assented to by the President in April 2009. The Regulations are President in April 2009. The Regulations are currently being drafted.currently being drafted.

PROCESSED PERMIT PROCESSED PERMIT APPLICATIONSAPPLICATIONS

In the period under review, the NCACC considered In the period under review, the NCACC considered and approved the following kinds of permits:and approved the following kinds of permits:

Marketing Permits Marketing Permits 5454

Contracting Permits Contracting Permits 370370

Export Permits Export Permits 2 9652 965

Import PermitsImport Permits 1 6391 639

Conveyance Permits Conveyance Permits 1616

VALUES OF PERMITS VALUES OF PERMITS ISSUEDISSUED

The total values of permits issued by the NCACC The total values of permits issued by the NCACC in 2008 are as follows:in 2008 are as follows:

Contracting Permits, R 19,5 billion.Contracting Permits, R 19,5 billion.

Export Permits, R 5,8 billion.Export Permits, R 5,8 billion.

Import Permits, R 6,3 billion.Import Permits, R 6,3 billion.

COUNTRIES EXPORTED TOCOUNTRIES EXPORTED TOCOUNTRYCOUNTRY VALUE VALUE

Algeria Algeria 138,3 mil138,3 mil

AngolaAngola 4,9 mil4,9 mil

Argentina Argentina 0 mil0 mil

AustraliaAustralia 6,9 mil6,9 mil

AustriaAustria 52,1 mil52,1 mil

AzerbaijanAzerbaijan 3,0 mil3,0 mil

COUNTRIES EXPORTED COUNTRIES EXPORTED TOTO

COUNTRYCOUNTRY VALUE VALUE

BangladeshBangladesh 0 mil0 mil

BelgiumBelgium 9,3 mil9,3 mil

BotswanaBotswana 12,5 mil12,5 mil

BrazilBrazil 4,9 mil4,9 mil

BruneiBrunei 0 0

BulgariaBulgaria 00

Burundi Burundi 15,1 mil15,1 mil

CanadaCanada 155,0 mil155,0 mil

Central African RepCentral African Rep 00

ChadChad 15,2 mil15,2 mil

COUNTRIES EXPORTED COUNTRIES EXPORTED TOTO

COUNTRYCOUNTRY VALUE VALUE ChileChile 2,3 mil2,3 mil

Colombia Colombia 248,3 mil 248,3 mil

CroatiaCroatia 00

Czech-Republic Czech-Republic 0, 128 mil0, 128 mil

DRCDRC 00

DenmarkDenmark 3,3 mil3,3 mil

DjiboutiDjibouti 00

Egypt Egypt 58,5 mil58,5 mil

EstoniaEstonia 0,4 mil0,4 mil

Finland Finland 27,1 mil 27,1 mil

France France 14,9 mil 14,9 mil

COUNTRIES EXPORTED COUNTRIES EXPORTED TOTO

GabonGabon 5,2 mil5,2 mil

GeorgiaGeorgia 1,4 mil1,4 mil

Germany Germany 104,9 mil104,9 mil

GhanaGhana 45,0 mil45,0 mil

GreeceGreece 00

GuineaGuinea 00

India India 232,2 mil232,2 mil

IndonesiaIndonesia 66,4 mil66,4 mil

IraqIraq 14,8 mil14,8 mil

Ireland Ireland 1,2 mil1,2 mil

Italy Italy 22, 4 mil22, 4 mil

JapanJapan 1,0 mil1,0 mil

Jordan Jordan 18,7 mil18,7 mil

COUNTRIES EXPORTED COUNTRIES EXPORTED TOTO

KazakhastanKazakhastan 0,5 mil0,5 mil

Kenya Kenya 00

KuwaitKuwait 7,0 mil7,0 mil

LesothoLesotho 4,2 mil4,2 mil

LibyaLibya 00

MadagascarMadagascar 0 0

MalawiMalawi 14,514,5

MalaysiaMalaysia 138, 5 mil138, 5 mil

MauritiusMauritius 00

MozambiqueMozambique 0,2 mil0,2 mil

NepalNepal 13,6 mil13,6 mil

NetherlandsNetherlands 11,1 mil11,1 mil

COUNTRIES EXPORTED TOCOUNTRIES EXPORTED TONigerNiger 7,6 mil7,6 mil

NigeriaNigeria 51,0 mil51,0 mil

NorwayNorway 00

OmanOman 23,3 mil23,3 mil

PakistanPakistan 29,6 mil29,6 mil

PRC PRC 82,7 mil82,7 mil

PeruPeru 1,5 mil1,5 mil

Philippines Philippines 2,9 mil2,9 mil

PolandPoland 6,1 mil6,1 mil

Portugal Portugal 32,6 mil32,6 mil

Rep of KoreaRep of Korea 22,7 mil22,7 mil

Russian FederationRussian Federation 00

COUNTRIES EXPORTED TOCOUNTRIES EXPORTED TORwandaRwanda 4,6 mil 4,6 mil

Saudi Arabia Saudi Arabia 36,1 mil36,1 mil

SingaporeSingapore 26,7 mil26,7 mil

Slovak RepublicSlovak Republic 5,3 mil5,3 mil

Slovenia Slovenia 6,1 mil6,1 mil

SpainSpain 271.7 mil271.7 mil

Sudan Sudan 64,0 mil64,0 mil

Swaziland Swaziland 2,0 mil2,0 mil

SwedenSweden 92,9 mil92,9 mil

Switzerland Switzerland 4,4 mil4,4 mil

Taiwan Taiwan 0,6 mil0,6 mil

COUNTRIES EXPORTED COUNTRIES EXPORTED TOTO

Tanzania Tanzania 11,2 mil 11,2 mil

Thailand Thailand 197,5 mil197,5 mil

TunisiaTunisia 300,0 mil300,0 mil

Turkey Turkey 70,6 mil70,6 mil

Uganda Uganda 2,1 mil 2,1 mil

UkraineUkraine 1,4 mil1,4 mil

UAEUAE 185,2 mil 185,2 mil

UKUK 456,6 mil456,6 mil

USAUSA 2,6 billion2,6 billion

Venezuela Venezuela 24,2 mil24,2 mil

VietnamVietnam 5,2 mil5,2 mil

Zambia Zambia 18,9 mil18,9 mil

EXPORTS COMPARISONSEXPORTS COMPARISONSTotal Export Total Export (2008)(2008)

R 5,8 billionR 5,8 billion

Total Export Total Export (2007)(2007)

R 4 billionR 4 billion

Total Export Total Export (2006)(2006)

R 2,9 billion R 2,9 billion

Thank YouThank You