Annual Report 2006/07 - Department of Defence
Annual Report 2006/07 - Department of Defence
Annual Report 2006/07 - Department of Defence
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ANNUAL REPORTRenewing our Pledge. A National Partnership toBuild a Better Life for All.
All enquiries with respect to this report can be forwarded to:Mr T.A. RatsomoTel: +27 (12) 355 6104Fax: +27 (12) 355 6134email: thabisor@mweb.co.zaISBN 978-0-621-37382-0 RP 190/20<strong>07</strong>Printed by Donna Reid Designs and Shereno PrintersDEPARTMENT OF DEFENCE
D E P A R T M E N T O F D E F E N C EA N N U A L2 0 0 6 / 2 0 0 7R E P O R Ta nationalpartnershipto build abetter lifefor allDEPARTMENT:DEFENCEMr M.G.P. LekotaMinister <strong>of</strong> <strong>Defence</strong>, MPSubmission <strong>of</strong> the <strong>Annual</strong> <strong>Report</strong> for the FY<strong>2006</strong>/<strong>07</strong> by theAccounting Officer to the Executive AuthorityIt is my pleasure and privilege to submit to you the <strong>Annual</strong> <strong>Report</strong> <strong>of</strong> the<strong>Department</strong> <strong>of</strong> <strong>Defence</strong>: 01 April <strong>2006</strong> to 30 March 20<strong>07</strong>, in terms <strong>of</strong>section 40 (1) (d), read together with Treasury Regulation 18.3 <strong>of</strong> thePublic Finance Management Act, 1999 (Act No 1 <strong>of</strong> 1999).J.B. MASILELASECRETARY FOR DEFENCE: DIRECTOR-GENERALANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong>i
TABLE OF CONTENTSPAGEList <strong>of</strong> TablesList <strong>of</strong> FiguresForeword by the Minister <strong>of</strong> <strong>Defence</strong>Overview by the Secretary for <strong>Defence</strong>Information on the MinistryviixxiiixviixixCHAPTER 1S t r a t e g i c D i r e c t i o nIntroductionStrategic Pr<strong>of</strong>ileLegislative Mandate <strong>of</strong> the <strong>Department</strong> <strong>of</strong> <strong>Defence</strong>VisionMission<strong>Department</strong> <strong>of</strong> <strong>Defence</strong> Shared ValuesAlignment with Cabinet and Cluster Priorities<strong>Defence</strong> OutcomeObjectives <strong>of</strong> the Minister <strong>of</strong> <strong>Defence</strong>Strategic Focus<strong>Defence</strong> Strategic Objectives<strong>Defence</strong> OutputsPolicy DevelopmentsServices RenderedDiscontinued ServicesNew and Proposed ServicesLosses and DamagesEvents after the Accounting Date122222233444555555P r o g r a m m e P e r f o r m a n c eVote 21Aim <strong>of</strong> the VoteProgrammes and Purposes<strong>Department</strong>al Revenue, Expenditure and other Specific Topics7778chapter 13programme 1iiCHAPTER 2P R O G R A M M E 1 D e f e n c e A d m i n i s t r a t i o nDEPARTMENT OF DEFENCEIntroductionPurposeSubprogramme Political DirectionOverviewOutput Detail (Performance <strong>Report</strong>)Subprogramme <strong>Department</strong>al DirectionOverviewOutput Detail (Performance <strong>Report</strong>)Subprogramme Government Information Technology OfficerOverviewOutput Detail (Performance <strong>Report</strong>)Performance and Service Delivery ImprovementSubprogramme SANDF Command and ControlOutput Detail (Performance <strong>Report</strong>)Subprogramme Policy and PlanningOverviewOutput Detail (Performance <strong>Report</strong>)Performance and Service Delivery Improvement131414141415151515151616171718181822
PAGESubprogramme Financial ServicesOverviewOutput Detail (Performance <strong>Report</strong>)Performance and Service Delivery ImprovementSubprogramme Acquisition ServicesOverviewOutput Detail (Performance <strong>Report</strong>)Performance and Service Delivery ImprovementSubprogramme Inspection ServicesOverviewOutput Detail (Performance <strong>Report</strong>)Performance and Service Delivery ImprovementSubprogramme Equal Opportunities and Affirmative Action (EO) and (AA)OverviewOutput Detail (Performance <strong>Report</strong>)Performance and Service Delivery ImprovementSubprogramme Corporate Staff DivisionOverviewSubprogramme Corporate Staff OfficeOutput Detail (Performance <strong>Report</strong>)Subprogramme Strategy and Plan OfficeOverviewOutput Detail (Performance <strong>Report</strong>)Performance and Service Delivery ImprovementServices Scaled Down, Suspended or Abolished during the FY<strong>2006</strong>/<strong>07</strong>Subprogramme Legal ServicesOverviewOutput Detail (Performance <strong>Report</strong>)Subprogramme Religious ServicesOverviewOutput Detail (Performance <strong>Report</strong>)Subprogramme Corporate CommunicationOverviewOutput Detail (Performance <strong>Report</strong>)Performance and Service Delivery ImprovementServices Scaled Down, Suspended or Abolished during the FY<strong>2006</strong>/<strong>07</strong>Subprogramme Reserve ComponentOverviewOutput Detail (Performance <strong>Report</strong>)Performance and Service Delivery ImprovementSubprogramme <strong>Defence</strong> Foreign RelationsOverviewOutput Detail (Performance <strong>Report</strong>)Policy DevelopmentsCHAPTER 3P R O G R A M M E 8 F o r c e E m p l o y m e n tOverviewPurposeOutput Detail (Performance <strong>Report</strong>)Performance and Service Delivery ImprovementServices Scaled Down, Suspended or Abolished during FY<strong>2006</strong>/<strong>07</strong>23232325262627282828293030303132323232323333333434343434353536363637383838383940404040414344445152ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong>iii
PAGECHAPTER 4P R O G R A M M E 2 L a n d w a r d D e f e n c eOverviewPurposeOutput Detail (Performance <strong>Report</strong>)Performance and Service Delivery ImprovementPolicy DevelopmentsServices Scaled Down, Suspended or Abolished during FY<strong>2006</strong>/<strong>07</strong>535454636565CHAPTER 5P R O G R A M M E 3 A i r D e f e n c eOverviewPurposeOutput Detail (Performance <strong>Report</strong>)Performance and Service Delivery ImprovementPolicy DevelopmentsServices Scaled Down, Suspended or Abolished during FY<strong>2006</strong>/<strong>07</strong>676868778181CHAPTER 6P R O G R A M M E 4 M a r i t i m e D e f e n c eOverviewPurposeOutput Detail (Performance <strong>Report</strong>)Services Scaled Down, Suspended or Abolished during FY<strong>2006</strong>/<strong>07</strong>Performance and Service Delivery ImprovementPolicy Developments838484898990CHAPTER 7P R O G R A M M E 5 M i l i t a r y H e a l t h S u p p o r tOverviewPurposeOutput Detail (Performance <strong>Report</strong>)Performance and Service Delivery ImprovementPolicy Developments91929298101chapter 13programme 1ivCHAPTER 8P R O G R A M M E 6 D e f e n c e I n t e l l i g e n c eCHAPTER 9P R O G R A M M E 7 J o i n t S u p p o r tDEPARTMENT OF DEFENCEOverviewPurposeOutput Detail (Performance <strong>Report</strong>)Performance and Service Delivery ImprovementPolicy DevelopmentsOverviewPurposeOutput Detail (Performance <strong>Report</strong>)Subprogramme Joint Support OfficeOverview1031041041061<strong>07</strong>109109109110110
PAGESubprogramme Command and Management Information SystemsOverviewOutput Detail (Performance <strong>Report</strong>)Performance and Service Delivery ImprovementSubprogramme Joint Logistic ServicesOverviewOutput Detail (Performance <strong>Report</strong>)Performance and Service Delivery ImprovementPolicy DevelopmentsServices Scaled Down, Suspended or Abolished during FY<strong>2006</strong>/<strong>07</strong>Subprogramme Human Resources Support ServicesOverviewOutput Detail (Performance <strong>Report</strong>)Policy DevelopmentsSubprogramme Joint TrainingOverviewOutput Detail (Performance <strong>Report</strong>)Subprogramme Military PoliceOverviewOutput Detail (Performance <strong>Report</strong>)Subprogramme Service CorpsOverviewOutput Detail (Performance <strong>Report</strong>)Performance and Service Delivery ImprovementSubprogramme British Peace Support Training TeamOutput Detail (Performance <strong>Report</strong>)Subprogramme Property ManagementOutput Detail (Performance <strong>Report</strong>)CHAPTER 10P R O G R A M M E 9 S p e c i a l D e f e n c e A c c o u n tOverviewPurposeOutput Detail (Performance <strong>Report</strong>)Performance and Service Delivery Improvement110110111114115115116118118118118118119121121121122123123123125125126128128128129129131131131134CHAPTER 11O r g a n i s a t i o n a l S t r u c t u r e a n d H u m a nR e s o u r c e M a n a g e m e n tOrganisational StructureOverview <strong>of</strong> DOD Human Resource Strategy 2010Service Delivery Improvement PlanExpenditureEmployment and VacanciesJob EvaluationEmployment ChangesEmployment EquityPerformance RewardsForeign WorkersUtilisation <strong>of</strong> LeaveHIV/Aids and Health Promotion ProgrammesLabour RelationsSkills DevelopmentInjury on DutyUtilisation <strong>of</strong> Consultants136137138139141142143144147149149152154156157158ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong>v
PAGEAPPENDIX AS t a t u s o f t h e S A N D F R e s e r v e sAPPENDIX BD e f e n c e D i p l o m a c yAPPENDIX CF o r e i g n A i d A s s i s t a n c e t o t h e S A N D FFINANCIAL PERFORMANCER e p o r t o f t h e A u d i t C o m m i t t e e159161164167R e p o r t o f t h e A c c o u n t i n g O f f i c e r f o r t h e y e a r e n d e d3 1 M a r c h 2 0 0 5169R e p o r t o f t h e A u d i t o r - G e n e r a l t o P a r l i a m e n t o n t h eF i n a n c i a l S t a t e m e n t s o f V o t e 2 1189S t a t e m e n t o f A c c o u n t i n g P o l i c i e s a n d R e l a t e d M a t t e r s199F i n a n c i a l S t a t e m e n t s o f V o t e 2 1204R e p o r t o f t h e A u d i t o r - G e n e r a l t o P a r l i a m e n t o n t h eF i n a n c i a l S t a t e m e n t s o f t h e S p e c i a l D e f e n c e A c c o u n tF i n a n c i a l S t a t e m e n t s o f t h e S p e c i a l D e f e n c e A c c o u n t267271chapter 13OTHER REPORTSA s s u r a n c e R e p o r t o f t h e A u d i t o r - G e n e r a l t o P a r l i a m e n to n C o m p l i a n c e w i t h S e c t i o n 4 o f t h e N a t i o n a lC o n c e n t i o n a l A r m s C o n t r o l A c t i n t e r m s o f S e c t i o n 1 2o f t h e N a t i o n a l C o n v e n t i o n a l A r m s C o n t r o l A c t , 2 0 0 2f o r t h e p e r i o d e n d e d 3 1 M a r c h 2 0 0 7List <strong>of</strong> Abbreviations, Acronyms281284programme 1viDEPARTMENT OF DEFENCE
LIST OF TABLESTABLETITLEPAGE1.11.21.31.41.51.61.7C H A P T E R 1DoD Voted Fund for the FY<strong>2006</strong>/<strong>07</strong>Sources <strong>of</strong> Revenue for the FY<strong>2006</strong>/<strong>07</strong><strong>Department</strong>al Expenditure for the FY<strong>2006</strong>/<strong>07</strong>Transfer Payments for the FY<strong>2006</strong>/<strong>07</strong>Projects Currently in Progress for the FY<strong>2006</strong>/<strong>07</strong>Projects Carried Forward to the FY20<strong>07</strong>/08New Projects to Commence in the FY20<strong>07</strong>/08799101011112.12.22.32.42.52.62.72.82.92.102.112.122.132.142.152.162.172.182.192.202.212.222.232.242.253.13.23.33.43.53.64.14.24.34.45.15.25.3C H A P T E R 2Output Details <strong>of</strong> Political Direction for the FY<strong>2006</strong>/<strong>07</strong>Output Details <strong>of</strong> the <strong>Department</strong>al Direction for the FY<strong>2006</strong>/<strong>07</strong>GITO Output Detail for the FY <strong>2006</strong>/<strong>07</strong>GITO Performance and Service Delivery Improvement for the FY<strong>2006</strong>/<strong>07</strong>CSANDF Command and Control Outputs for the FY<strong>2006</strong>/<strong>07</strong>Policy and Planning Output Detail for the FY<strong>2006</strong>/<strong>07</strong>Performance and Service Delivery ImprovementFinancial Services Output Details for the FY<strong>2006</strong>/<strong>07</strong>Financial Services Performance and Service Delivery for the FY<strong>2006</strong>/<strong>07</strong>Output Details <strong>of</strong> Acquisition ServicesPerformance and Service Delivery Improvement for the FY<strong>2006</strong>/<strong>07</strong>Outputs Details <strong>of</strong> Inspection Services for the FY<strong>2006</strong>/<strong>07</strong>Performance and Service Delivery Improvement FY<strong>2006</strong>/<strong>07</strong>Output Details <strong>of</strong> Equal Opportunities and Affirmative Action (EO and AA) for the FY<strong>2006</strong>/<strong>07</strong>EO and AA Performance and Service Delivery Improvement for FY<strong>2006</strong>/<strong>07</strong>Outputs <strong>of</strong> the Corporate Staff Office for the FY<strong>2006</strong>/<strong>07</strong>Outputs <strong>of</strong> the Strategy and Plan Office for the FY<strong>2006</strong>/<strong>07</strong>Performance and Service Delivery Improvement during the FY<strong>2006</strong>/<strong>07</strong>Outputs <strong>of</strong> <strong>Defence</strong> Legal Services for the FY<strong>2006</strong>/<strong>07</strong>Religious Services Outputs for the FY<strong>2006</strong>/<strong>07</strong>Outputs <strong>of</strong> Corporate Communication for the FY<strong>2006</strong>/<strong>07</strong>Performance and Service Delivery Improvement during the FY<strong>2006</strong>/<strong>07</strong>Outputs <strong>of</strong> the <strong>Defence</strong> Reserve Office for the FY<strong>2006</strong>/<strong>07</strong>Performance and Service Delivery Improvement during FY<strong>2006</strong>/<strong>07</strong>Outputs <strong>of</strong> <strong>Defence</strong> Foreign RelationsCHAPTER 3Force Employment Programme Outputs for the FY<strong>2006</strong>/<strong>07</strong>Joint Exercises for the FY<strong>2006</strong>/<strong>07</strong>Multinational Exercises for the FY<strong>2006</strong>/<strong>07</strong>Training Support to Foreign Forces during the FY<strong>2006</strong>/<strong>07</strong>Performance and Service Delivery Improvement for the FY<strong>2006</strong>/<strong>07</strong>Services Scaled Down, Suspended or Abolished during the FY<strong>2006</strong>/<strong>07</strong>CHAPTER 4Landward <strong>Defence</strong> Programme Outputs for the FY<strong>2006</strong>/<strong>07</strong>Landward <strong>Defence</strong>: Outputs <strong>of</strong> Specific Policy Options where AdditionalFunds were allocated during the FY<strong>2006</strong>/<strong>07</strong>SA Army Specific Exercises Conducted during the FY<strong>2006</strong>/<strong>07</strong>Performance and Service Delivery Improvement during the FY<strong>2006</strong>/<strong>07</strong>CHAPTER 5Air <strong>Defence</strong> Programme Outputs for the FY<strong>2006</strong>/<strong>07</strong>Air <strong>Defence</strong> Programme: Planned Exercises for the FY<strong>2006</strong>/<strong>07</strong>Performance and Service Delivery Improvement for the FY<strong>2006</strong>/<strong>07</strong>1415161617182224252828303031323333343536373839404144495051515254626263697677ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong>vii
TABLE6.16.26.36.47.17.27.37.48.18.29.19.29.39.49.59.69.79.89.99.109.119.129.139.1410.110.210.3TITLECHAPTER 6Maritime <strong>Defence</strong> Programme Outputs for the FY<strong>2006</strong>/<strong>07</strong>SA Navy Specific Exercises Conducted for the FY<strong>2006</strong>/<strong>07</strong>Services to be Scaled Down or Suspended during the FY<strong>2006</strong>/<strong>07</strong>Performance and Service Delivery Improvement for the FY<strong>2006</strong>/<strong>07</strong>CHAPTER 7Military Health Service Programme Outputs for the FY<strong>2006</strong>/<strong>07</strong>Military Health Service <strong>Defence</strong>: Outputs <strong>of</strong> Specific Policy Options whereAdditional Funds were allocated during the FY<strong>2006</strong>/<strong>07</strong>SAMHS Specific Exercises Conducted during the FY<strong>2006</strong>/<strong>07</strong>Performance and Service Delivery Improvement for the FY<strong>2006</strong>/<strong>07</strong>CHAPTER 8Outputs <strong>of</strong> the <strong>Defence</strong> Intelligence Programme for the FY<strong>2006</strong>/<strong>07</strong>Performance and Service Delivery Improvement for the FY <strong>2006</strong>/<strong>07</strong>CHAPTER 9Joint Support Office Subprogram me Outputs for the FY<strong>2006</strong>/<strong>07</strong>Command and Management Information Service Programme OutputCommand and Management Information Systems Division Specific Exercises Conductedduring the FY<strong>2006</strong>/<strong>07</strong>Additional Funding Obtained for the FY<strong>2006</strong>/<strong>07</strong>Performance and Service Delivery Improvement <strong>of</strong> the Command andManagement Information Systems for the FY<strong>2006</strong>/<strong>07</strong>Outputs <strong>of</strong> the DOD Logistic Agency for the FY<strong>2006</strong>/<strong>07</strong>Joint Logistic Services Performances and Service Delivery Improvement for the FY<strong>2006</strong>/<strong>07</strong>Human Resources Support Centre Outputs for the FY<strong>2006</strong>/<strong>07</strong>Outputs <strong>of</strong> the Joint Training Formation for the FY <strong>2006</strong>/<strong>07</strong>Outputs <strong>of</strong> the Military Policy Division for the FY<strong>2006</strong>/<strong>07</strong>Outputs for the Service Corps for the FY<strong>2006</strong>/<strong>07</strong>Performance and Service Delivery Improvement <strong>of</strong> the Service Corps for the FY<strong>2006</strong>/<strong>07</strong>British Peace Support Training Team Output Detail for the FY<strong>2006</strong>/<strong>07</strong>Property Management Outputs Details for the FY<strong>2006</strong>/<strong>07</strong>CHAPTER 10Special <strong>Defence</strong> Account Output Detail for the FY<strong>2006</strong>/<strong>07</strong>Special <strong>Defence</strong> Account Strategic <strong>Defence</strong> Procurement Output Detailfor the FY<strong>2006</strong>/<strong>07</strong>Special <strong>Defence</strong> Account Programme Performance and Service Deliveryfor the FY<strong>2006</strong>/<strong>07</strong>PAGE8488898992979898104106110111113114114116118119122124126128128129131133134chapter 13programme 1viii11.111.211.311.411.511.611.711.811.911.1011.11DEPARTMENT OF DEFENCECHAPTER 11Main Services as identified for the Auditor General’s <strong>Report</strong> for the FY<strong>2006</strong>/<strong>07</strong>Consultation Arrangements with ClientsService Delivery Access StrategiesService Information ToolComplaints MechanismPersonnel Costs by Programme for the FY<strong>2006</strong>/<strong>07</strong>Personnel Costs by Salary Bands for the FY<strong>2006</strong>/<strong>07</strong>Salaries, Overtime, Home Owners Allowance and Medical Assistance byProgramme <strong>2006</strong>/<strong>07</strong>Salaries Overtime Home Owners Allowance and Medical Assistance bySalary Bands <strong>2006</strong>/<strong>07</strong>Employment and Vacancies by Programme 31 March 20<strong>07</strong>Employment and Vacancies by Salary Bands 31 March 20<strong>07</strong>138138138138139139139140140141141
TABLE11.1211.1311.1411.1511.1611.1711.1811.1911.2011.2111.2211.22a11.2311.23a11.2411.24a11.2511.25a11.2611.26a11.2711.27a11.2811.2911.3011.3111.3211.33a11.33b11.34a11.34b11.35a11.35b11.36a11.36b11.37a11.37b11.3811.3911.4011.41TITLECHAPTER 11Employment and Vacancies Critical Occupation 31 March 20<strong>07</strong>Job Evaluation 01 April <strong>2006</strong> to 31 March 20<strong>07</strong>Pr<strong>of</strong>ile <strong>of</strong> Employees whose Salary Posisitions were upgraded due totheir Posts being upgraded from 01 April <strong>2006</strong> to 31 March 20<strong>07</strong>Employees whose Salary Levels Exceed the Grade determined byJob Evaluation 1 April <strong>2006</strong> to 31 March 20<strong>07</strong>Pr<strong>of</strong>ile <strong>of</strong> Employees whose Salary Levels Exceed the Grade Determined byJob Evaluation 1 April <strong>2006</strong> to 31 March 20<strong>07</strong><strong>Annual</strong> Turnover Rates by Salary Band for the Period 01 April <strong>2006</strong> to 31 March 20<strong>07</strong><strong>Annual</strong> Turnover Rates by Critical Occupation for the Period 01 April <strong>2006</strong> to 31 March 20<strong>07</strong>Reasons Why Staff are Leaving the <strong>Department</strong>Promotions by Critical OccupationPromotions by Salary BandTotal Number <strong>of</strong> Employees (Including Employees with Disabilties) in each <strong>of</strong>the following Occupational Catagories as on 31 March 20<strong>07</strong>Total Number <strong>of</strong> Emplopyees (Only Employees with Disabilities) in each <strong>of</strong> thefollowing Occupational Catagories as on 31 March 20<strong>07</strong>Total Number <strong>of</strong> Employees (Including employees with Disabilities) in each <strong>of</strong>the following Occupational Bands as at 31 March 20<strong>07</strong>Total Number <strong>of</strong> Employees (Only Employees with Disabilities) in each <strong>of</strong> thefollowing occupational bands as at 31 March 20<strong>07</strong>Recruitment (Including Employees with Disabilities) for the Period 1 March 20<strong>07</strong>Recruitment (Only Employees with Disabilities) for the Period 1 April <strong>2006</strong> to 31 March 20<strong>07</strong>Promotions (Including Employees with Disabilities) for the Period 1 April <strong>2006</strong> to31 March 20<strong>07</strong>Promotions (Only Employees with Disabilities for the Period 1 April <strong>2006</strong> to 31 March 20<strong>07</strong>Terminations (Including Employees with Disabilities) for the Period 1 April <strong>2006</strong>to 31 March 20<strong>07</strong>Terminations (Only Employees with Disabilities) for the Period 1 April <strong>2006</strong> to 31 March 20<strong>07</strong>Performance Rewards by Race, Gender and Disability for Personnel below SeniorManagement Service (Including Members with Disabilities) 1 April <strong>2006</strong> to 31 March 20<strong>07</strong>Performance Rewards (Only Members with Disabilities) 1 April <strong>2006</strong> to 31 March 20<strong>07</strong>Performance Rewards by Salary Band for Personnel below Senior ManagementService for the Period 1 April <strong>2006</strong> to 31 March 20<strong>07</strong>Performance Rewards by Critical Occupations 1 April <strong>2006</strong> to 31 March 20<strong>07</strong>Performance Related Rewards (Cash Bonus) by Salary Band for Senior Management Service1 April <strong>2006</strong> to 31 March 20<strong>07</strong>Foreign Workers 1 April <strong>2006</strong> to 31 March 20<strong>07</strong> by Salary BandForeign Workers 1April <strong>2006</strong> to 31 March 20<strong>07</strong> by Major OccupationSick Leave (taken by <strong>Defence</strong> Act Personnel) 1 January <strong>2006</strong> to 31 December 20<strong>07</strong>Sick Leave (Public Service Act Personnel) 1 January <strong>2006</strong> to 31 December 20<strong>07</strong>Disability Leave (Temporary and Permanent- <strong>Defence</strong> Act Personnel)1 January <strong>2006</strong> to 31 December <strong>2006</strong>Disability Leave (Temporary and Permanent - Public Service Act Personnel)1 January <strong>2006</strong> to 31 December <strong>2006</strong><strong>Annual</strong> Leave (<strong>Defence</strong> Act Personnel) 1 January <strong>2006</strong> to 31 December <strong>2006</strong><strong>Annual</strong> Leave (Public Service Act Personnel) 1 January <strong>2006</strong> to 31 December <strong>2006</strong>Capped Leave (<strong>Defence</strong> Act Personnel) 1 January <strong>2006</strong> to 31 December <strong>2006</strong>Capped Leave (Public service Act Personnel) 1 January <strong>2006</strong> to 31 December <strong>2006</strong>Leave Payouts (<strong>Defence</strong> Act Personnel) for the Period 1 April <strong>2006</strong> to 31 March 20<strong>07</strong>Leave Payouts (Public Service Act Personnel) for the Period 1 April <strong>2006</strong> to 31 March 20<strong>07</strong>Steps taken to reduce the Risk <strong>of</strong> Occupational ExposureDetails <strong>of</strong> Health Promotion and HIV/AIDS ProgrammesCollective Agreements 1 April <strong>2006</strong> to 31 March 20<strong>07</strong>Misconduct and Disciplinary Hearings finalised 1 April <strong>2006</strong> to 31 March 20<strong>07</strong>PAGE141142142142142143143143144144144145145145146146146146147147147148148148149149149149150150150151151151151152152152153154154ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong>ix
TABLE11.4211.4311.4411.4511.46a11.46b11.4711.4811.4911.49a11.50TITLECHAPTER 11Types <strong>of</strong> Misconduct addressed at Disciplinary HearingsGrievances Lodged for the Period 1 April <strong>2006</strong> to 31 March 20<strong>07</strong>Disputes Lodged with Councils for the Period 1 April <strong>2006</strong> to 31 March 20<strong>07</strong>Strike Actions for the Period 1 April <strong>2006</strong> to 31 March 20<strong>07</strong>Precautionary Suspensions (<strong>Defence</strong> Act Personnel) for the Period 1 April <strong>2006</strong>to 31 March 20<strong>07</strong>Precautionary Suspensions (Public Service Act Personnel) for the Period1 April <strong>2006</strong> to 31 March 20<strong>07</strong>Training Needs Identified, 1 April <strong>2006</strong> to 31 March 20<strong>07</strong>Training Provided, 1 April <strong>2006</strong> to 31 March 20<strong>07</strong>Injury on Duty (<strong>Defence</strong> Act Personnel) 1 April <strong>2006</strong> to 31 March 20<strong>07</strong>Injury on Duty (Public Service Act Personnel) 1 April <strong>2006</strong> to 31 March 20<strong>07</strong><strong>Report</strong> on Consultants Appointment using Appropriate FundsPAGE155155155155155156156156157157158LIST OF FIGURESFIGURETITLEPAGE11.112Organisational Structure <strong>of</strong> the <strong>Department</strong> <strong>of</strong> <strong>Defence</strong> for the FY<strong>2006</strong>/<strong>07</strong>Map <strong>of</strong> deployment <strong>of</strong> SANDF Military AttachésMap <strong>of</strong> MAAC Representation in South Africa136161162xDEPARTMENT OF DEFENCE
ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong>xi
xiiDEPARTMENT OF DEFENCE
FOREWORD BY THEHONOURABLE M.G.P. LEKOTA,MINISTER OF DEFENCEa nationalpartnershipto build abetter lifefor allDEPARTMENT:DEFENCEThe Ministry wishes to present this<strong>Annual</strong> <strong>Report</strong> for the financialyear ending 31 March 20<strong>07</strong>, as part<strong>of</strong> its accountability to the people<strong>of</strong> South Africa.This year’s review marks animportant chapter in the history <strong>of</strong>the <strong>Department</strong> <strong>of</strong> <strong>Defence</strong>(DOD). We saw the affirmation <strong>of</strong>our commitment to the vision <strong>of</strong> ensuringa better life for all and an entry into theAge <strong>of</strong> Hope. This commitment has beenrealised through those activities whichbest equip the <strong>Department</strong> to pursue itsstrategic intent and, in so doing, supportthe consolidation <strong>of</strong> democracy in thecountry, the region and the continent.This process has seen the achievement <strong>of</strong>a number <strong>of</strong> important milestones indiverse domains, all <strong>of</strong> which have beenaligned with the thrust <strong>of</strong> ensuring effectivedefence for a democratic SouthAfrica.Our strategic focus has been directed at,inter alia, the enhancement and maintenance<strong>of</strong> comprehensive defence capabilitiesin order to defend and protect thesovereignty and territorial integrity <strong>of</strong> theRepublic <strong>of</strong> South Africa. This remainsour primary mission.This has been given particular impetusthrough the delivery and integration intoservice <strong>of</strong> our strategic defence packages.Notable during the period under reviewhas been the commissioning <strong>of</strong> twoMEKO Class frigates, the SAS ISANDL-WANA and the SAS MENDI, as well astwo Type-209 submarines, the SAS’MANTHATISI and SAS CHARLOTTEMAXEKE. Furthermore, the air defencecapability was strengthened with thearrival <strong>of</strong> sixteen Hawk Mk 120 lead-infighter trainers from the UnitedKingdom and sixteen Agusta LUH 109helicopters from Italy.The integration <strong>of</strong> these force structureelements into the <strong>Department</strong> will considerablystrengthen the country’s maritimeand air defence capabilities. It isour intention to further enhance our state<strong>of</strong> readiness through rejuvenating ourlandward defence capability in the forthcomingperiod, as well as consolidatingour force design. These acquisitions willalso contribute to our regional reach andto the provision <strong>of</strong> security in theSouthern African DevelopmentCommunity, thereby contributing to thefacilitation <strong>of</strong> peace and prosperity withinthe Southern African DevelopmentCountries (SADC) and the sub-Saharanregion.The delivery <strong>of</strong> this equipment and itscapabilities have demonstrated the wisdomand the tenacity <strong>of</strong> the decision toequip our national defence force to beready for the responsibilities and dedicationin <strong>Defence</strong> <strong>of</strong> the RSA, its territorialintegrity and its people in the promotionANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong>xiii
<strong>of</strong> world peace and a better worldThe <strong>Department</strong>’s contribution towards the promotion <strong>of</strong>peace, security and stability in the region and on the continenthas steadily advanced the African Agenda. Ofimportance has been the contribution by our forces in theelection processes <strong>of</strong> the Comoros, the DemocraticRepublic <strong>of</strong> the Congo, the Kingdom <strong>of</strong> Lesotho andMadagascar, as well as in peace support and post-conflictreconstruction operations in, inter alia, Burundi, Ethiopia,Eritrea, the Sudan and Côte d’Ivoire, as well as furtherafield, in Nepal.Our peacekeeping operations also saw the first democraticelections following forty years <strong>of</strong> dictatorship and civilwar in the Democratic Republic <strong>of</strong> the Congo. The accoladesthat we received from the international communityconvinced us that we are playing our rightful role in ourregion, the Southern African Development Community,and on the African Continent. With all the positives thatwe have achieved it is important that, in the next financialyear, we improve where we fell short.training facilities for ASGI-SA and youth development ingeneral by <strong>of</strong>fering facilities that are underutilised orunutilised.Accelerated service delivery, good governance and theinstitutionalisation <strong>of</strong> Batho Pele have been identified asimportant success factors in the attainment <strong>of</strong> our strategicintent, and accordingly clear plans <strong>of</strong> action have beengenerated and implemented in order to optimise thesedomains. In pursuit <strong>of</strong> the military objective <strong>of</strong> providingsupport to the people, a multitude <strong>of</strong> decisive interventionsaimed at improving the quality <strong>of</strong> lives <strong>of</strong> all thepeoples <strong>of</strong> South Africa, the region, the continent and theglobe were successfully implemented and reported hereinsuch as our involvement in the containment <strong>of</strong> swinefever in support <strong>of</strong> the <strong>Department</strong> <strong>of</strong> Agriculture.After some years <strong>of</strong> grappling with the issues <strong>of</strong> transformation,the <strong>Department</strong> <strong>of</strong> <strong>Defence</strong> (DOD) can now statewith a measure <strong>of</strong> confidence that the process to transformthe <strong>Department</strong> is on course, both in terms <strong>of</strong> itshuman capital and its military hardware.<strong>Defence</strong> Objectives, Outcome and Outputschapter 13programme 1xivThe period under review has also seen a further strengthening<strong>of</strong> our extra-continental participation, with SouthAfrica’s assumption <strong>of</strong> a non-permanent seat in theUnited Nations Security Council (UNSC), where we haveendeavoured to support the relief <strong>of</strong> tension. The UNSCis an important instrument for the promotion, maintenanceand upholding <strong>of</strong> global peace. Our election ontothis important body means that the world has noticed,recognised, and acknowledged the role <strong>of</strong> our country inthe promotion <strong>of</strong> world peace and for a better world.Furthermore, we have progressed in the strategic objective<strong>of</strong> rendering support to the people on a number <strong>of</strong>fronts. Firstly, we are actively involved in the discussions,formulation and strategies for the implementation <strong>of</strong> theAccelerated Shared Growth Initiative <strong>of</strong> South Africa(ASGI-SA). As part <strong>of</strong> the DOD’s contribution we havebrought to the ASGI-SA table the Military SkillsDevelopment System (MSDS) in terms <strong>of</strong> which youngpeople are trained to have the necessary basic militaryand life skills; and the Youth Foundation Training (YFT)which assists learners and youth to improve their mathematicsand science symbols and thus contribute to wideningaccess to higher education.We are also active in assisting the National Youth Service(NYS) in designing and implementing youth developmentprogrammes. Consequently, we have undertakenstudy missions to a number <strong>of</strong> countries to learn aboutyouth development programmes. In addition, we alsostudied their programmes aimed at alleviating the plight<strong>of</strong> former armed combatants and military veterans. TheCentre for Advanced Training (CAT) has refocused theseactivities as a contribution to the lives <strong>of</strong> those who wereprepared to put their lives at risk. Further, we are investigatingand examining ways and means <strong>of</strong> increasingDEPARTMENT OF DEFENCEThe DOD was faced with ageing human resource component,the majority <strong>of</strong> whom were in the lower ranks <strong>of</strong> privateup to sergeant in the SA Army and their equivalentsin the other services. With the introduction <strong>of</strong> the MilitarySkills Development System (MSDS), the South AfricanNational <strong>Defence</strong> Force (SANDF) was not only able toswell its numbers with a sizable number <strong>of</strong> young menand women, but also to acquire, through careful recruitment,able future soldiers who could be trained accordingto the requirements <strong>of</strong> the new defence challenges.To a great extent the MSDS has also allowed the ReserveForce to get new and younger recruits, those that couldnot be retained in the regular force. The challenge <strong>of</strong> havingto address the employment uncertainty <strong>of</strong> the MSDSmembers who are not contracted is adding impetus to thecreation <strong>of</strong> innovative mechanisms to facilitate placement<strong>of</strong> graduates <strong>of</strong> the MSDS within the private sector. TheSA Navy has led in this endeavour by ensuring that itplaces its exiting trainees in maritime-related industries.This will also benefit the SA Navy Reserve in the futurethrough the skills and experience that these young menand women will acquire.Within the context <strong>of</strong> our many achievements, the<strong>Department</strong> has continued to grapple with the complexities<strong>of</strong> transforming its logistic processes, and a number <strong>of</strong>initiatives have been embarked upon to optimise andalign both the process and its interfaces with other associatedorganisational business processes.The DOD was also faced with the challenge <strong>of</strong> reconfiguration<strong>of</strong> demographics in the middle management ranks<strong>of</strong> major to colonel. Through the introduction <strong>of</strong> the voluntaryMobility Exit Mechanism, this obstacle is graduallybeing addressed.
The training <strong>of</strong> pilots has also borne fruit atLangebaanweg Central Flying School, following the introduction<strong>of</strong> new trainers who have been added to theLangebaanweg personnel and also improved representivityfigures among trainers.It is important also to underscore the need to rise to thedaunting challenge <strong>of</strong> ensuring that we have enoughpilots in all categories to fly all our newly acquired aircraft.There is a definite need to accelerate our speed inacquiring new pilots. However, we have to be on guardagainst discarding our transformational goals while tryingto reach the required numbers.While we also qualified a sizable number <strong>of</strong> technicians,we experienced a high loss <strong>of</strong> experienced technical personnelto the commercial airliners. We need to continue tobe innovative in introducing incentive schemes to retainour people instead <strong>of</strong> relying only on monetary improvements.One <strong>of</strong> the things we need to do is to re-examineways in which we treat our personnel.The financial year also saw implementation <strong>of</strong> decisiveinterventions to embrace gender mainstreaming withinthe <strong>Department</strong>, the outcomes <strong>of</strong> which will be registeredand reported in the next financial year. However, there isstill room for improvement, including the recruitment <strong>of</strong>quality young women into the MSDS, which will, in thelong run, contribute to addressing this challenge.The Ministry will garner all the support possible to realisethe requisite funds to prioritise the modernisation <strong>of</strong> thelandward defence capabilities as part <strong>of</strong> its affirmation <strong>of</strong>core business while creatively dealing with the misalignmentbetween the defence policy and resource allocationthrough securing Cabinet approval <strong>of</strong> the Update <strong>of</strong> theWhite Paper (1996) and the <strong>Defence</strong> Review (1998) andthe aggressive implementation there<strong>of</strong>.In conclusion, I wish to acknowledge and thank theDeputy Minister for all his efforts throughout and for thecollaborative manner in which we have conducted thebusiness <strong>of</strong> the Ministry. We would not have progressedif it were not for the support and advice we have receivedfrom the management <strong>of</strong> the <strong>Department</strong> under the leadership<strong>of</strong> the Secretary for <strong>Defence</strong> working in close collaborationwith the Chief <strong>of</strong> the South African National<strong>Defence</strong> Force (CSANDF).M.G.P. LEKOTAMINISTER OF DEFENCEOur reskilling programme for ex-combatants continues tobear fruit with a number <strong>of</strong> veterans having been trainedthrough the National Skills Fund Support. We also hadseveral government departments from all tiers coming onboard with initiatives to support our efforts to deliverneeded services, such as employment opportunities,housing and education to veterans. We expect to see agrowth in these initiatives in the near future.The dedication, loyalty and commitment <strong>of</strong> our men andwomen who serve our country are pivotal to the furthering<strong>of</strong> our strategic intent as a <strong>Department</strong>. We extend ourconsiderable appreciation to all those who have so selflesslyensured that the year under review has been anotable success. I need to mention categorically that theMinistry consists <strong>of</strong> one integrated <strong>of</strong>fice. This report,therefore, represents the entire Ministry and touches onall activities that the Ministry undertakes.The Ministry and the <strong>Department</strong> remains committed toprotecting the integrity <strong>of</strong> the territory, its people and bordersthrough diplomacy as well as fast tracking the establishment<strong>of</strong> African Standby Force for the SADC region, astrategy to resiliently promote the philosophy <strong>of</strong> collectivedefence as a means to resolve conflict within theSADC region. The Ministry and the <strong>Department</strong> willwithin the available resources, address the challenges presentedby South Africa’s assumption <strong>of</strong> the non- permanentseat in the Security Council in pursuit <strong>of</strong> furtherstrengthening compliance with international law.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong>xv
chapter 13programme 1<strong>Defence</strong> Objectives, Outcome and OutputsxviDEPARTMENT OF DEFENCE
STRATEGIC OVERVIEW OF THEDEPARTMENT OF DEFENCE BY THESECRETARY FOR DEFENCE (AS HEADOF DEPARTMENT AND ACCOUNTINGOFFICER) AND THE CHIEF OF THESOUTH AFRICAN NATIONAL DEFENCEFORCE (AS COMMANDER)a nationalpartnershipto build abetter lifefor allDEPARTMENT:DEFENCEThe key focus for the DOD hasremained the provision, preparationand employment <strong>of</strong> defencecapabilities commensurate withthe needs <strong>of</strong> South Africa, as regulatedby the Constitution, nationallegislation, and parliamentary andexecutive direction.Pivotal to the above, good governanceand accountability is critical toensure effective, efficient and transparentreporting. The DOD <strong>Annual</strong> report forthe FY<strong>2006</strong>/<strong>07</strong> provides comprehensivefeedback to the people <strong>of</strong> South Africa onthe achievements <strong>of</strong> specific measurableobjectives as contained in the Estimate <strong>of</strong>National Expenditure and the<strong>Department</strong>’s Strategic Business Plan forthe FY<strong>2006</strong>/<strong>07</strong> to the FY2008/09.The Governance process has been significantlyinformed by ministerial guidelinesaddressing the domains <strong>of</strong>, inter alia,enhancement and maintenance <strong>of</strong> comprehensivedefence capabilities, promotion<strong>of</strong> peace, security and stability in theregion, consolidation <strong>of</strong> initiatives withinthe Southern African DevelopmentCommunity (SADC), rendering supportto the people <strong>of</strong> South Africa, rendering<strong>of</strong> <strong>Defence</strong> cooperation and assistance.Effective resource management predicatesthe enhancement and maintenance<strong>of</strong> comprehensive defence capabilities,with specific reference to humanresources and equipment. Across thisperiod the <strong>Department</strong> has directed particularfocus at the realisation <strong>of</strong> itsHuman Resource Strategy 2010.Furthermore, the sustained integration <strong>of</strong>the strategic defence packages has continuedto address the modernisation <strong>of</strong>defence equipment to ensure compliancewith Constitutional imperatives in orderto improve maritime and air defencecapabilities, with the renewal andupgrading <strong>of</strong> landward capabilitiesbeing addressed within the parameters<strong>of</strong> the medium-term expenditure framework.The SANDF has made significantprogress in implementing the ‘OneForce’ concept whereby regulars andreserves were deployed as an integratedforce component.The promotion <strong>of</strong> regional peace andsecurity has continued to enjoy considerablestatus and a special tribute was paidby the AU’s Head <strong>of</strong> Mission, FranciscoMadera, commended our forces for thepr<strong>of</strong>essional manner in which they performedtheir duties during the presidentialelection in the Union <strong>of</strong> the Comorosin May <strong>2006</strong>. The DOD therefore hasremained involved in supporting governmentaldiplomatic initiatives in support<strong>of</strong> internationally mandated peacesupport operations. Most notably theDOD was involved in peace supportoperations and provided assistance indisaster relief such as the ammunitionexplosion in Mozambique.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong>xvii
<strong>Defence</strong> Objectives, Outcome and Outputschapter 13Efforts to establish and implement the African StandbyForce for the SADC region gained momentum as preparationsfor the launching <strong>of</strong> the SADCBRIG in 20<strong>07</strong> commencedin Zambia in all earnest. In keeping with the philosophy<strong>of</strong> collective defence, it is envisaged that theSADCBRIG will support the resolution <strong>of</strong> conflict in a collectivemanner within the Southern African region.Furthermore, in furthering our regional relations the 5thAfrican Women’s Peace Table Seminar was held inNovember <strong>2006</strong>. This historic conference saw seniorwomen <strong>of</strong>ficers serving in the defence forces <strong>of</strong> SADCcountries come together to emphasise the need for womento engage in key defence roles.With regards to defence diplomacy and increased supportto government’s diplomatic initiatives, the year underreview saw increased defence diplomatic representation,as seven new defence missions were opened. Altogether,there is defence representation in 31 countries, <strong>of</strong> whichmore than half are defence missions in Africa.Training remained a priority. During <strong>2006</strong> the SA Navyand SA Air Force participated in combined force trainingexercises. The SA Army conducted Exercise SEBOKA,which evaluated the conventional capabilities <strong>of</strong> the force.Through Exercise SEBOKA the Military SkillsDevelopment System (MSDS) members were put throughrigorous evaluation procedures and met the standards,thus consolidating the formative stages <strong>of</strong> the humanresources rejuvenation programme.On the homefront, support to the people <strong>of</strong> South Africawas provided in the Western Cape for bird flu and in theEastern Cape for swine fever and the SANDF has continuedto ensure internal support to the people <strong>of</strong> SouthAfrica by exercising borderline control and rural safeguardingin support <strong>of</strong> the SA Police Service.With regards to performance management, we remaincommitted to empower the governing bodies <strong>of</strong> the<strong>Department</strong> in their strategic decision-making processesby means <strong>of</strong> a key initiative, the Balanced Scorecard (BSC)methodology, which was adopted as the foundation forperformance measurement. A pilot sample has been concludedand a further roll-out will be underway in the nextfinancial year.Finally, as the <strong>Department</strong>, we would like to express ourthanks to all organs <strong>of</strong> state that have provided support tothe <strong>Department</strong>, in various forms by ensuring that thenecessary resources are mobilised, utilised and accountedfor in a manner that promote internal, external and allocativeefficiency.Further, a word <strong>of</strong> appreciation goes to the AuditCommittee, the National Treasury and the Office <strong>of</strong>Auditor-General, for providing pr<strong>of</strong>essional expert adviceand support to further strengthen accountability competencies<strong>of</strong> the <strong>Department</strong> to ensure that allocated fundsare utilised in an efficient, effective, economic and equitablemanner.Sincere gratitude goes to the Honourable Minister <strong>of</strong><strong>Defence</strong>, Mr Mosiuoa Lekota, the Honourable DeputyMinister <strong>of</strong> <strong>Defence</strong>, Mr Mluleki George, for their sustainedand integrated leadership and command.We extend our considerable appreciation to the DOD leadership,uniformed and Public Service Act Personnel(PSAP) members <strong>of</strong> the DOD who worked effortlessly insupport <strong>of</strong> our collective vision as well as to the men andwomen <strong>of</strong> South Africa who tirelessly and resiliently <strong>of</strong>fertheir services to ensure the existence <strong>of</strong> national, regionaland global sustainable peace and security through participationin peacekeeping missions.Finally, we want to recommit to the South African citizensthat the <strong>Department</strong> <strong>of</strong> <strong>Defence</strong> will resiliently embracethe Government’s concerted effort <strong>of</strong> deepening theAfrican Agenda. The <strong>Department</strong> will continue to raise itspublic image as an organ <strong>of</strong> state that “serves, belongs andcares” and as such an employer <strong>of</strong> choice.G.N. NGWENYACHIEF OF THE SOUTH AFRICAN NATIONALDEFENCE FORCEMR J.B. MASILELASECRETARY FOR DEFENCE: DIRECTOR-GENERALprogramme 1xviiiWe want to specifically thank the parliamentary oversightstructures, that continually and tirelessly interact with the<strong>Department</strong> to further deepen our commitment to ourmilitary objectives and to beat the drum <strong>of</strong> acceleratedservice delivery harder and louder.DEPARTMENT OF DEFENCE
INFORMATION ON THEMINISTRYINSTITUTIONS REPORTING TO THE EXECUTIVEAUTHORITYThe following institutions report to the Minister <strong>of</strong> <strong>Defence</strong>:●●●●The <strong>Department</strong> <strong>of</strong> <strong>Defence</strong> (DOD).The Armaments Corporation <strong>of</strong> South Africa (Armscor).The National Conventional Arms Control Committee (NCACC).The Castle Control Board.BILLS SUBMITTED TO THE LEGISLATURE DURINGTHE FINANCIAL YEARProhibition or Restriction Of Certain Conventional Weapons Bill.a nationalpartnershipto build abetter lifefor allDEPARTMENT:DEFENCEMINISTER LEKOTA'S VISITS ABROAD IN THEFY<strong>2006</strong>/<strong>07</strong>he Minister <strong>of</strong> <strong>Defence</strong> and the Deputy Minister <strong>of</strong> <strong>Defence</strong> were engaged in anumber <strong>of</strong> defence-related diplomatic activities involving the DOD. Details <strong>of</strong>the Minister <strong>of</strong> <strong>Defence</strong>'s visits abroad are reflected in Table 1.1. The DeputyTMinister <strong>of</strong> <strong>Defence</strong>'s visits abroad are reflected in Table 1.2.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong>xix
Table 1.1: Minister's Visits Abroad in the FY<strong>2006</strong>/<strong>07</strong>Date20-21 April <strong>2006</strong>10-11 May <strong>2006</strong>20-25 May <strong>2006</strong>12-15 June <strong>2006</strong>23-24 June <strong>2006</strong>31 Jul-02 August <strong>2006</strong>21-24 August <strong>2006</strong>15 September <strong>2006</strong>25-27 September <strong>2006</strong>10-13 October <strong>2006</strong>16-17 October <strong>2006</strong>01-02 November <strong>2006</strong>22-24 November <strong>2006</strong>03 December <strong>2006</strong>12-13 December <strong>2006</strong>27-31 January 20<strong>07</strong>15 February 20<strong>07</strong>13-14 March 20<strong>07</strong>CountryCôte d'Ivoire, AbidjanCentral African Republicand DRCLondonTurkeyCôte d'Ivoire, AbidjanCôte d'IvoireBelgium, BrusselsDRCCôte d'IvoireChileEthiopia, Addis AbabaGabonZimbabweCARBurundi and DRCIndiaLesotho, MaseruSaudi ArabiaPurposeAttending the International Working Group and follow-up on thepreparations for the elections.To conduct an on-site assessment <strong>of</strong> the situation and to consult withthe authorities in the DRCAttending the SA/UK Bilateral ForumTo establish a formal relationship between ministries <strong>of</strong> the twocountriesAttending an assignment on behalf <strong>of</strong> the Minister <strong>of</strong> Foreign AffairsAttending to political issues relating to the country's transition on behalf<strong>of</strong> the PresidentTo have bilateral discussion with his counterpartHandover ceremony <strong>of</strong> the Rumangabo Camp to the Ministry <strong>of</strong> theNational <strong>Defence</strong> <strong>of</strong> the DRC in terms <strong>of</strong> Operation TeutonicTo accompany the PresidentTo sign agreement on defence cooperation between our countriesTo accompany the PresidentTo sign a Cooperation Agreement between RSA and GabonAttend the SA/Zimbabwe <strong>Defence</strong> Committee meetingAppraise the military situation in the area in the light <strong>of</strong> the threat fromthe rebel movements in the areaTo conduct a goodwill visit to the deployed troops in Burundi and DRCTo discuss issues pertaining to the bilateral and trilateral relationshipInstructed by the President <strong>of</strong> the Republic to meet with the DeputyPrime Minister <strong>of</strong> Lesotho to discuss issues relating to the upcomingelections.To accompany the PresidentInformation on the Ministrychapter 13Table 1.2: Deputy Minister <strong>of</strong> <strong>Defence</strong>'s Visits Abroad during the FY<strong>2006</strong>/<strong>07</strong>Date10-16 June <strong>2006</strong>14-19 July <strong>2006</strong>July-August <strong>2006</strong>October-November<strong>2006</strong>19-27 October <strong>2006</strong>27 January 20<strong>07</strong>12-16 March 20<strong>07</strong>USAFranceDRCDRCCountryFranceMozambiqueGermanyRSA-USA <strong>Defence</strong> Committee meeting90th Commemoration <strong>of</strong> the Battle <strong>of</strong> Delville WoodLeader <strong>of</strong> SA Observer Mission for the DRC ElectionsLeader <strong>of</strong> SA Observer Mission for the DRC ElectionsPurposeTo attend a conference on military veteransTo hand over equipment to the <strong>Defence</strong> ForceTo attend the commissioning <strong>of</strong> the SAS MODJADJI and SASCHARLOTTE MAXEKEprogramme 1xxDEPARTMENT OF DEFENCE
Chapter OneSTRATEGIC DIRECTIONa nationalpartnershipto build abetter lifefor allDEPARTMENT:DEFENCEINTRODUCTIONThe <strong>Annual</strong> <strong>Report</strong> <strong>of</strong> the <strong>Department</strong><strong>of</strong> <strong>Defence</strong> (DOD) for theFY<strong>2006</strong>/<strong>07</strong> provides a comprehensivefeedback to the public regardingthe achievement <strong>of</strong> specificmeasurable objectives as containedin the Estimate <strong>of</strong> NationalExpenditure and the DOD StrategicBusiness Plan for the FY<strong>2006</strong>/<strong>07</strong> tothe FY2008/09 as tabled in Parliament inMarch <strong>2006</strong>. Within the various Cabinetclusters, the DOD pursued the followingoutcomes:●●●●Peace, stability and security onthe continent, advanced throughthe support to multinationalorganisations such as the UnitedNations (UN), the African Union(AU) and the Southern AfricanDevelopment Community(SADC);Strategic defence cooperationadvanced by defence diplomacy;Broadening access to economicparticipation and investmentwithin the defence-related industryand Strategic <strong>Defence</strong>Packages (SDP);Internal security; and● Rejuvenation <strong>of</strong> the SouthAfrican National <strong>Defence</strong> Force(SANDF) in its contribution tothe national objectives <strong>of</strong> youthdevelopment, job creation andalleviation <strong>of</strong> poverty, as well asreduction <strong>of</strong> unemploymentthrough the Military SkillsDevelopment System (MSDS).The DOD outcomes have been fullyaligned with Government policy toenhance national, regional and globalsecurity through the existence <strong>of</strong> combatready,as well as deployable defencecapabilities. Through force preparationexercises, the SANDF ensures theenhancement and maintenance <strong>of</strong> currentcapabilities. These exercises are keyto combat preparedness. Furthermore,the integration <strong>of</strong> strategic defence packagesensures the modernisation <strong>of</strong>defence equipment to ensure compliancewith constitutional imperatives andimprove landward, maritime and airoperational defence capabilities.Although modernising <strong>of</strong> our landwarddefence capability was not included inthe SDP, the extensive and continuousdeployment <strong>of</strong> such equipment in peacemissions over the last few years hasnecessitated that the renewal andupgrading <strong>of</strong> particularly the vehiclefleet and reserve ammunition <strong>of</strong> theArmy be undertaken. Additional fundshave constantly been allocated toaddress and take this requirement intothe future.The DOD continues to fulfil its constitu-ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong>1
STRATEGIC DIRECTIONchapter 1PART 12tional mandate whilst rendering extensive support to theenhancement <strong>of</strong> foreign policy through peace missiondeployment, disaster and humanitarian support on thecontinent and strengthening solidarity in the region.These activities contributed towards the continuing stabilisationand normalisation <strong>of</strong> countries that are in support<strong>of</strong> NEPAD, AU and SADC activities, among them theDemocratic Republic <strong>of</strong> the Congo (DRC), Burundi, theSudan, Côte d'Ivoire, Ethiopia, Eritrea and the Comoros.In pursuit <strong>of</strong> global peace and security, sound defencerelations with countries were strengthened through anincrease in defence representation at missions. Ourdefence attachés have become key instruments in defencediplomacy and building South African defence relationsabroad. In meeting its internal obligations the DOD continuedto support the people <strong>of</strong> South Africa through supportto various Government departments and improvinglife <strong>of</strong> poor and vulnerable communities. Various missionsin cooperation with the SA Police Service (SAPS)were conducted with the emphasis on borderline controland rural safeguarding operations. The disengagementfrom internal operations (borderline control and ruralsafeguarding) in support <strong>of</strong> the <strong>Department</strong> <strong>of</strong> Safety andSecurity continued according to a phased disengagementplan.The DOD continues with the rejuvenation <strong>of</strong> the SANDFand its contribution to national objectives <strong>of</strong> youth development,job creation, alleviation <strong>of</strong> poverty and reduction<strong>of</strong> unemployment through the two-year voluntary service<strong>of</strong> MSDS which is driven by two imperatives, namely toenhance the operational readiness <strong>of</strong> the SANDF by rejuvenatingits human resource composition, and to grantempowerment opportunities to the youth. Sustainablesuccesses have been attained in respect <strong>of</strong> both imperatives.Although the DOD, in the execution <strong>of</strong> its mandate, wasconfronted with numerous challenges that had severeeffects on its constrained budget allocation, it continuouslydemonstrated its commitment, willingness and capabilityto comply effectively and pr<strong>of</strong>essionally with alldemands for international deployment, whilst ensuringthe safety <strong>of</strong> people. This was done by the SANDF in pursuit<strong>of</strong> the <strong>Defence</strong> Strategy and the Military StrategicObjectives.STRATEGIC PROFILELEGISLATIVE MANDATEThe DOD derives its constitutional mandate from section200(2) <strong>of</strong> the Constitution <strong>of</strong> the Republic <strong>of</strong> South Africa,1996 (Act No 108 <strong>of</strong> 1996). Giving substance to this constitutionalmandate is the <strong>Defence</strong> Act, 2002 (Act No 42 <strong>of</strong>2002), the White Paper on <strong>Defence</strong>, 1996, <strong>Defence</strong> Review,1998 and other national legislations that guide the execution<strong>of</strong> the defence strategy <strong>of</strong> the DOD.DEPARTMENT OF DEFENCEVISION'Effective defence for a democratic SouthAfrica'.MISSIONTo provide, manage, prepare and employ defencecapabilities commensurate with the needs <strong>of</strong> SouthAfrica, as regulated by the Constitution, national legislation,and parliamentary and executive direction.DEPARTMENTAL VALUESThe value system <strong>of</strong> the DOD is based on individualvalues, codes <strong>of</strong> conduct and unit cohesion.Individual Values. The DOD has identified sevenimportant individual values deemed essential toensure organisational success. These are:●●●●●●●patriotism;loyalty;human dignity;pr<strong>of</strong>essionalism;integrity;leadership; andaccountability.ALIGNMENT WITH CABINETAND CLUSTER PRIORITIESIn pursuit <strong>of</strong> providing defence to South Africa, its territorialintegrity and its people, the DOD ensures alignment<strong>of</strong> its priorities with Government priorities through itsplanning framework, as well as through its operations.The DOD planning framework is located within theGovernment's planning framework. The outcomes <strong>of</strong> theLekgotla, articulated through the State <strong>of</strong> the NationAddress and the Budget Vote, serve as the basis for thedevelopment <strong>of</strong> the responsiveness trajectory articulatedby the DOD through the Minister's priorities and guidelines.This trajectory is further expanded through theMinister's work session, which provides the broad policiesand guidelines and the DOD work session, whichprovides specific objectives for the DOD. These objectivesrelate to how the DOD, within the context <strong>of</strong> Governmentobjectives, will meet its constitutional mandate. The DODobjectives are translated further into specific outputs forthe <strong>Defence</strong> Secretariat and the Chief <strong>of</strong> the SANDF. Theseoutputs guide the plans, as well as the scope and scale <strong>of</strong>operations <strong>of</strong> the Services and Divisions.The determinant clusters for the operational work andfunctions <strong>of</strong> the DOD are the International Relations,Peace and Security (IRPS) cluster, Justice, CrimePrevention and Safety (JCPS) cluster, Governance andAdministration (G&A) cluster, and the Economic cluster.
The strategic plan <strong>of</strong> the DOD therefore makes provisionfor meeting such objectives and contributing towards theachievement <strong>of</strong> Government priorities articulated throughthese clusters.The IRPS cluster is charged with the implementation <strong>of</strong>the African Agenda, NEPAD, as well as strategic activitiespertaining to peace and security in the region and on thecontinent. Engagements within the UN, AU and SADC arecoordinated, and economic regimes are collaborativelyexplored through this cluster.Participation within this cluster accords the DOD anopportunity to provide direction and support to the realisation<strong>of</strong> the African agenda, the policy to guide internationalengagements, intensification <strong>of</strong> work to finalise thepeace and security architecture <strong>of</strong> the AU, especiallyaround the African Standby Force and the South AfricanDevelopment Community Brigade (SADCBRIG), as wellas the challenges presented by the two-year, non-permanentmembership <strong>of</strong> the United Nations Security Council(UNSC).In addition, the DOD is participating in setting up theMaritime cluster as part <strong>of</strong> its mandate to protect the country,its people and the environment. This initiative isaimed primarily at optimising our resources along ourextensive coastline and covering its full length.The JCPS cluster addresses improving the integrated justicesystem, upholding national security, combating crimeand managing major events. Specific DOD responsibilitieslocated within this cluster include borderline patrol,joint crime combating operations, rural safety and therevision <strong>of</strong> the Foreign Military Assistance Act. Of particularnote is the coordination <strong>of</strong> security during nationalevents, inter alia the FIFA 2010 World Cup Tournament.The G&A cluster has the mandate to improve efficiencyand effectiveness within the Public Service through capacitybuilding, service delivery, governance, as well asGovernment- wide monitoring and evaluation. The DODcontributes to the priorities <strong>of</strong> Government located withinthis cluster through the institutionalisation <strong>of</strong> Batho Peleprinciples, providing the necessary skills to young adultsthrough the Military Skills Development System (MSDS),as well as improving achievement in Mathematics andScience through the Youth Foundation Programme.Within the DOD context, this includes the institutionalisation<strong>of</strong> Batho Pele principles and contribution to skills revolutionagenda. Specifically during this period, the DODhas intensified its cooperation with the National YouthService and provided guidance and national security.The Economic cluster is charged primarily with wideningaccess to, and maximising economic participation andinvestment within the first and second economies, as wellas monitoring progress made with regard to ASGI-SA andinfrastructure development projects. Within the DOD context,this cluster entails integration and location <strong>of</strong> policyinitiatives that relate to defence industry within the broader,Government-wide National Industrial ParticipationPolicy and Strategy.It is through initiatives within clusters that the DOD, incollaboration with other organs <strong>of</strong> State, has providedsupport to widen access to economic participation andinvestment within the second economy, whilst providingsupport to its people in pursuit <strong>of</strong> social cohesion, sustainablenational, regional and continental peace, securityand stability. The allocated resources have been strategicallyutilised to fulfil both the DOD priorities locatedwithin the Government Programme <strong>of</strong> Action and the distinctiveDOD priorities.DEFENCE OUTCOMEThe DOD delivers all the outputs that are specified in theFY<strong>2006</strong>/<strong>07</strong> Strategic Business Plan, in cooperation withother State departments, to achieve the following outcome:'Effective defence for a democratic South Africa'This outcome enhances national, regional and global securitythrough the existence <strong>of</strong> defence capabilities that arebalanced, modern, affordable and technologicallyadvanced. The DOD has consciously decided that itsvision and defence outcome should be identical.OBJECTIVES OF THE MINISTEROF DEFENCEDuring the FY<strong>2006</strong>/<strong>07</strong>, the objective <strong>of</strong> the Minister <strong>of</strong><strong>Defence</strong> was to ensure the achievement <strong>of</strong> the mission <strong>of</strong>the <strong>Department</strong> through the execution <strong>of</strong> both the primaryand secondary functions <strong>of</strong> the DOD. Furthermorethe following goals were underscored:●●●●Defending and protecting the sovereignty and territorialintegrity <strong>of</strong> the Republic, as well as supportingits people by maintaining cost-effectivedefence capabilities in order to be prepared andequipped to participate in operations as orderedand funded by Government.Contributing to global security through promotion<strong>of</strong> regional and continental security andGovernment diplomatic initiatives throughregional and global defence cooperation and participationin peace missions.Ensuring good governance <strong>of</strong> the DOD througheffective, efficient and economical management,administration and accounting within the regulatoryframework and Government policy.Ensuring continuous improvement <strong>of</strong> defencecapabilities by means <strong>of</strong> quality command andcontrol, developing the people and improving theequipment and facilities <strong>of</strong> the DOD.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 3
STRATEGIC DIRECTIONchapter 1PART 14improvement <strong>of</strong> output quality and the reductionThe assurance <strong>of</strong> sustainability, continuous● Implementing the 'One Force' concept by adequately●● The National Codification Bureau.resourcing and utilising both the regularand the reserve components, as well as rejuvenating<strong>of</strong> the cost <strong>of</strong> DOD processes, as well as theaccounting there<strong>of</strong>;and rightsizing the human resource composi-● The assurance <strong>of</strong> the continuous quality improvement<strong>of</strong> people in the DOD;tion <strong>of</strong> the DOD.STRATEGIC FOCUS● The assurance <strong>of</strong> quality command and managementOver the next decade, the DOD will focus on acquiring theinformation in the DOD; andoptimal level <strong>of</strong> competencies, technology and organisationalstructure as allowed for by the Medium-term● The assurance <strong>of</strong> continuous quality improvement<strong>of</strong> DOD equipment and facilities.Expenditure Framework (MTEF) allocation.The strategic objectives have been analysed and the keyOver the medium term, the strategic focus <strong>of</strong> the DOD willbe to● create an affordable and sustainable force designand structure;duties and responsibilities necessary to ensure theirachievement has been allocated to senior leaders andmanagers <strong>of</strong> the DOD. These strategic objectives are alsoreflected in their performance agreements, as well as theirstrategic business plans that include the in-year planning.● introduce the new weapon systems into operation, These objectives are pursued through the <strong>Defence</strong>bearing in mind the challenges posed by its cost Secretariat and the SANDF.and complexity;DEFENCE OUTPUTS● meet the approved and funded obligations <strong>of</strong> theDOD;The contribution the DOD makes to endeavours by theGovernment regarding the promotion <strong>of</strong> national, continentaland international peace, security and stability is● provide support for diplomatic initiatives <strong>of</strong> theGovernment in Africa;planned, evaluated and monitored through the following● promote regional security in the form <strong>of</strong> peace outputs:missions, including post-conflict reconstruction;and● <strong>Defence</strong> commitments, which include:● operations that are ongoing in nature, and for● reduce systematically the internal deployments <strong>of</strong>which plans and financial provision can bethe SANDF, which are to be completed by 1 Aprilmade in advance;2009.The short-term focus <strong>of</strong> the DOD will be onoperations that must be executed during theyear and, if unforeseeable, for which no provision●● preparing defence capabilities;has been made; and● employing defence capabilities to meet operationsjoint and multinational exercises required to●and commitments ordered by Government; andprepare forces for operations.● the restructuring <strong>of</strong> the DOD.● Landward <strong>Defence</strong> capabilities;DEFENCE STRATEGIC● Air <strong>Defence</strong> capabilities;OBJECTIVES● Maritime <strong>Defence</strong> capabilities;The success <strong>of</strong> the transformation <strong>of</strong> the DOD is measured● Military Health capabilities;through the following strategic objectives, which relate tothe mission:● <strong>Defence</strong> Diplomacy, which includes defenceattachés, the servicing <strong>of</strong> defence-related memoranda<strong>of</strong> understanding (MOUs) and participation● The execution <strong>of</strong> defence commitments as orderedand funded by Government;in defence structures <strong>of</strong> the UN, the AU and● The provision <strong>of</strong> contingency-ready and costeffectiveSADC;defence capabilities as specified by● The servicing <strong>of</strong> international agreements, whichapproved policy;include search-and-rescue operations, hydrographic● Sound management <strong>of</strong> the <strong>Department</strong>;service, defence-related policy advice andministerial services;● The administration <strong>of</strong> the DOD within the prescripts<strong>of</strong> the law, regulatory framework andGovernment policy;● Cryptographic security services for Governmentdepartments; andDEPARTMENT OF DEFENCE
POLICY DEVELOPMENTSCluster Munitions as a Valid Weapon <strong>of</strong> War. The DODhas determined a policy position, aligned to many othercountries, to the effect that cluster munitions remain avalid weapon <strong>of</strong> war despite the contentious nature <strong>of</strong> theweapon where unreliable weapons have been misused/usedin armed conflict by various countries aroundthe world. The key aspect in their acquisition and use isproper design and construction for reliable function andproper targeting in accordance with the laws <strong>of</strong> armedconflict. The <strong>Department</strong> <strong>of</strong> Foreign Affairs has beenaccordingly advised <strong>of</strong> this position to guide its dealingswith the international community on the subject, which isbeing debated in the UN and in related multinationaltalks.End-use Controls. Policy guidelines are being developedfor ratification by the <strong>Defence</strong> Ministry to steer the DODand Armscor towards the management and full life cycletracking <strong>of</strong> controlled items imported, subject to end-useobligations as demanded by supplying governments andmanufacturers.LEGISLATIVE CHANGESThe Strategic Business Plan FY <strong>2006</strong>/<strong>07</strong> alluded to somelegislative changes, which are reflected below.Prohibition <strong>of</strong> Mercenary Activities and Regulation <strong>of</strong>Certain Assistance in a Country <strong>of</strong> Armed Conflict Bill.The bill was passed by Parliament and is awaiting consentby the President.National Conventional Arms Control Bill.Proposedamendments to the National Conventional Arms ControlAct have culminated in a draft bill, which will be referredto the NCACC for approval during the current financialyear.Prohibition or Restriction Of Certain ConventionalWeapons Bill. The bill was finalised and certified by theState law advisors and is currently before Parliament forconsideration.SERVICES RENDEREDThe services rendered by the DOD are detailed inChapters 2 to 11.DISCONTINUED SERVICESDiscontinued activities and those to be discontinued aredescribed in Chapters 2 to 9.NEW AND PROPOSEDSERVICESDuring the period under review no new services werereported.LOSSES AND DAMAGESThe information regarding the nature and value <strong>of</strong> lossesand damages to State assets will be covered in the detailedfinancial statements.EVENTS AFTER THEACCOUNTING DATENo significant events are reported.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 5
PART 1chapter 1PROGRAMME PERFORMANCE6DEPARTMENT OF DEFENCE
PROGRAMME PERFORMANCEVOTE 21Details <strong>of</strong> the DOD voted funds are reflected in Table 1.1Table 1.1: DOD Voted funds for the FY<strong>2006</strong>/<strong>07</strong>R Thousand<strong>2006</strong>/<strong>07</strong>20<strong>07</strong>/082008/09METF allocations <strong>of</strong> which:23 830 10524 665 77625 733 754Current payments14 896 32616 172 44617 430 149Transfers and subsidies8 635 5298 134 9537 909 877Payments for capital assets298 250358 377393 728Statutory amounts---Executive AuthorityMinister <strong>of</strong> <strong>Defence</strong>a nationalpartnershipto build abetter lifefor allDEPARTMENT:DEFENCEAccounting OfficerAIM OF THE VOTETPROGRAMMES ANDPURPOSEShe aim <strong>of</strong> the DOD is to defend andprotect South Africa, its territorialintegrity and its people, in accordancewith the Constitution andthe principles <strong>of</strong> international lawregulating the use <strong>of</strong> force.The outputs <strong>of</strong> the DOD are achievedthrough long-term core objectives andfunded through the following programmes:Programme 1: Administration for theSecretary for <strong>Defence</strong>purpose <strong>of</strong> conducting policy development,management and administration<strong>of</strong> the <strong>Department</strong>.Programme 2: Landward <strong>Defence</strong> forthe purpose <strong>of</strong> providing prepared andsupported landward defence capabilitiesfor the defence and protection <strong>of</strong> SouthAfrica.Programme 3: Air <strong>Defence</strong> for the purpose<strong>of</strong> providing prepared and supportedair defence capabilities for the defenceand protection <strong>of</strong> South Africa.Programme 4: Maritime <strong>Defence</strong> for thepurpose <strong>of</strong> providing prepared and supportedmaritime defence capabilities forANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong>7
PROGRAMME PERFORMANCEchapter 1the defence and protection <strong>of</strong> South Africa.Programme 5: Military Health Support for the purpose<strong>of</strong> providing prepared and supported medical combatsupport elements and other services.Programme 6: <strong>Defence</strong> Intelligence for the purpose <strong>of</strong>providing a defence intelligence and counter-intelligencecapability.Programme 7: Joint Support for the purpose <strong>of</strong> providingjoint support capabilities and services <strong>of</strong> the department.Programme 8: Force Employment for the purpose <strong>of</strong> providingand manage defence capabilities, including anoperational capability <strong>of</strong> successfully conduct all operationsand joint and multinational military exercises.Programme 9: Special <strong>Defence</strong> Account for the purpose<strong>of</strong> providing for special defence activities and purchases.OVERVIEW OF THE SERVICEDELIVERY ENVIRONMENT FORTHE FY<strong>2006</strong>/<strong>07</strong>The performance <strong>of</strong> the <strong>Department</strong> regarding its initiativestowards quality improvement as an aspect <strong>of</strong> servicedelivery will be reported in the relevant chapters.COMMENT ON THE OVERALLPERFORMANCE OUTLINING KEYOUTPUTS OF THE DODThe actual performance against plan is reported inChapters 2 to 10.REASONS FOR ADDITIONS TOOR VIREMENT BETWEEN MAINAPPROPRIATION ALLOCATIONSADDITIONS TO MAINAPPROPRIATIONThe <strong>Defence</strong> Vote was increased by Rm72, 799 toRb23, 902 904 through the Adjustments Vote for the following:● Self-financing expenditure amounting toRm72, 799 for the sale <strong>of</strong> equipment procuredthrough● the General <strong>Defence</strong> Account: Rm16, 621; and● the Special <strong>Defence</strong> Account: Rm56, 178.VIREMENTSVirements by National Treasury (NT). NT approved theincrease <strong>of</strong> compensation to employees by Rm146 0.Virements Exercised by the Accounting Officer. TheAccounting Officer approved the following virements:● Accounting for expenditure in respect <strong>of</strong> thehuman resource support satellites to the correctprogramme after transformation.●●●●●Correcting the accounting <strong>of</strong> foreign allowancesunder goods and services for peace support operations.Defraying expenditure accrued in respect <strong>of</strong> transfersto households.Effecting the approvals granted by the Plenary<strong>Defence</strong> Staff Council iro the <strong>Department</strong>alProgramming and Budget Committee, for exampleto provide funds for the shortfall in peace supportoperations (PSO), SITA tariff increases, etc.Defraying expenditure accrued iro RegionalCouncil levies.Balancing the financial system the final expenditure.REPORT ON ROLL-OVERS FROMTHE FY2005/06No claim was submitted for roll-overs for the FY2005/06since there was no under-spending.SIGNIFICANT DEVELOPMENTSEXTERNAL TO THE DOD THATMAY HAVE IMPACTED EITHERON THE DEMAND FOR THESERVICES OF THE DOD OR THEABILITY OF THE DOD TODELIVER THOSE SERVICESThe following unforeseeable and unavoidable peace supportoperation activities led to the reprioritisation <strong>of</strong> activities:● Operation CORDITE (The Sudan). A shortfall <strong>of</strong>Rm35 resulting from the request by the AU toincrease deployed personnel.● Operation MISTRAL (DRC). A shortfall <strong>of</strong> Rm27as a result <strong>of</strong> the request by the UN to redeployaircraft from Burundi to the DRC.● Operation TRITON IV (The Comoros). A shortfall<strong>of</strong> Rm12 as a consequence <strong>of</strong> the AU request todeploy additional personnel for the elections.● Operation CURRICULUM (Burundi VIP Protection).A shortfall <strong>of</strong> Rm12 as a result <strong>of</strong> changingthe deployment from a UN to an AU mission.DEPARTMENTAL REVENUE,EXPENDITURE AND OTHER SPE-CIFIC TOPICSThe NT was requested to augment the <strong>Defence</strong> allocationthrough the adjustments budget process. The request wasnot entertained and <strong>Defence</strong> had to reprioritise within theallocation.SOURCES OF REVENUE FORTHE FY<strong>2006</strong>/<strong>07</strong>Details <strong>of</strong> sources <strong>of</strong> revenue for the FY<strong>2006</strong>/<strong>07</strong> are reflectedin Table 1.2.8DEPARTMENT OF DEFENCE
Table 1.2: Sources <strong>of</strong> Revenue for the FY<strong>2006</strong>/<strong>07</strong>Economic ClassificationR'0002003/04 2004/05 2005/06 <strong>2006</strong>/<strong>07</strong> <strong>2006</strong>/<strong>07</strong>Audited Audited Audited Target Actual% Deviationfrom TargetTax revenue00000Non-tax revenueSales <strong>of</strong> goods and services otherthan capital assetsGoods and services produced bythe <strong>Department</strong>185 524278 52795 152326 891111, 723-65%Sales <strong>of</strong> scrap, waste and otherused current goods232 423144 495137 642123 10363, 789-48%Fines, penalties and forfeitsInterest, dividends and rent on landFinancial transactions in assetsand liabilities (recovery <strong>of</strong> loansand advances)Sales <strong>of</strong> capital assets (CapitalRevenue)TOTAL DEPARTMENTALRECEIPTS6 61883343 0550468 4532 12239840 2000465 7422 448337493 557<strong>07</strong>29 1362 56439840 2930493 2492, 272813314, 1950492, 792-12%52%88%0-0, 1%DEPARTMENTAL EXPENDITURE FOR THE FY<strong>2006</strong>/<strong>07</strong>Details <strong>of</strong> <strong>Department</strong>al expenditure for the FY<strong>2006</strong>/<strong>07</strong> are reflected in Table 1.3.Table 1.3: <strong>Department</strong>al Expenditure for the FY<strong>2006</strong>/<strong>07</strong>ProgrammeVoteR’000Total AdditionalAppropriationR’000AdjustedAppropriationR’000VirementR’000FinalAppropriationR’000ActualExpenditureR’000VarianceR’000AdministrationLandward <strong>Defence</strong>Air <strong>Defence</strong>Maritime <strong>Defence</strong>Military Health Support<strong>Defence</strong> IntelligenceJoint SupportForce EmploymentSpecial <strong>Defence</strong> AccountTotal1 759 1494 055 5752 504 4881 319 1731 683 822143 6622 729 5311 410 1458 224 56023 83010505 472000011 149056 17872 7991 759 1494 061 0472 504 4881 319 1731 683 822143 6622 740 6801 410 1458 280 73823 902 90452 752(69 725)9 405(7 333)20 2853 832(69 136)59 920001 811 9013 991 3222 513 8931 311 8401 704 1<strong>07</strong>147 4942 671 5441 470 0658 280 73823 902 9041 753 8183 989 5212 513 8931 311 8401 704 1<strong>07</strong>147 4942 646 1081 470 0658 280 73823 817 58458 0831 801000025 4360085 320TRANSFER PAYMENTS FOR THE FY<strong>2006</strong>/<strong>07</strong>Details <strong>of</strong> transfer payments for the FY<strong>2006</strong>/<strong>07</strong> are reflected in Table 1.4.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 9
Table 1.4: Transfer Payments for the FY<strong>2006</strong>/<strong>07</strong>Name <strong>of</strong> InstitutionSpecial <strong>Defence</strong> AccountArmscorSocial BenefitsSafety and Security Sector Education and Training Authority(SASSETA)Regional Services CouncilsReserve Force CouncilPermanent Force Medical Continuation FundSt John's Ambulance BrigadeHousehold Employer Social BenefitsTotalEstimated Expenditure8 280 738 000396 285 521191 374 0527 932 7363 967 3752 726 173275 00050 0008 635 528 978Amount Transferred8 280 738 000396 285 521191 374 0527 720 3333 967 3752 500 000211 57039 9048 826 658 755CAPITAL INVESTMENT, MAINTENANCE AND ASSET MANAGEMENTPLANCAPITAL INVESTMENTDetails <strong>of</strong> projects currently in progress for the FY<strong>2006</strong>/<strong>07</strong> are reflected in Table 1.5.Table 1.5: Projects Currently in Progress for the FY<strong>2006</strong>/<strong>07</strong>LocationProject DescriptionPlanned Completion DatePROGRAMME PERFORMANCEchapter 1BloemfonteinBloemfonteinBloemfonteinBredasdorpSimon' s TownLangebaanSimon's TownJan KempdorpLohatlhaMurray Hill3 Military Hospital: UpgradingMilitary Police Agency: Convert building into female detentionfacilityAir Force Base Bloemspruit: Upgrading <strong>of</strong> hard stands, parkingareas and taxiways.Test Flight and Development Centre: New aircraft rinsing facilityConstruction <strong>of</strong> <strong>of</strong>fice block4 Special Forces Regiment: Construction <strong>of</strong> boat facilitySA Navy Ammunition depot: Upgrading <strong>of</strong> water system93 Ammunition Depot: Upgrading <strong>of</strong> buildingsSA Army Combat Training Centre: Construction <strong>of</strong> new sickbaySpecial Forces School: Construction <strong>of</strong> Urban Training FacilityThe National <strong>Department</strong> <strong>of</strong> Public Works (DPW) acts asservice provider for the DOD and as such is in anadvanced stage <strong>of</strong> appointing contractors to address theabove-mentioned projects.Plans to Close Down or Downgrade Current Facilities.The DOD is in the process <strong>of</strong> handing back leased andState-owned facilities previously utilised by ArmyTerritorial Reserve Units and Group Headquarters toDPW and has to complete this by 2009. These facilities arebeing transferred to the SAPS for further utilisation.The Current State <strong>of</strong> the Capital Stock <strong>of</strong> the DOD.Percentages to indicate poor, fair or good have not beenscientifically investigated. Owing to the huge maintenancebacklog, it would be reasonable to indicate thatmost <strong>of</strong> the capital stock is in a poor condition (80%) andthat 20% is in a fair to good condition.2009/1020<strong>07</strong>/0820<strong>07</strong>/0820<strong>07</strong>/0820<strong>07</strong>/082008/092008/0920<strong>07</strong>/0820<strong>07</strong>/082008/09Maintenance Backlog. The DOD utilises a large number<strong>of</strong> State facilities to provide the outputs necessary to fulfilits constitutional obligations. Many <strong>of</strong> these facilities nolonger conform to either the functional or minimumrequirements <strong>of</strong> the Occupational Health and Safety Act.The current maintenance backlog is estimated at Rb12.The DOD approached National Treasury to make fundsavailable to address this backlog during and beyond thenext MTEF period. Funds made available to the DODduring the next MTEF period are as follows:● Financial year 20<strong>07</strong>/08: Rm330.● Financial year 2008/09: Rm480.● Financial year 2009/10: Rm480.10DEPARTMENT OF DEFENCE
No developments relating to the above are expected toimpact on the current expenditure <strong>of</strong> the DOD.MAINTENANCEAn amount <strong>of</strong> Rm50 was available for infrastructuremaintenance during the reporting period. The DODspent an amount <strong>of</strong> Rm49,71 (99,42%). Both the availableamount and the amount spent were not sufficient in terms<strong>of</strong> property norms. It should also be borne in mind that ahuge maintenance backlog exists and needs to beaddressed before a meaningful amount can be spent onnormal preventative maintenance. The DOD requestedan amount <strong>of</strong> Rm440 from NT to be utilised during theFY<strong>2006</strong>/<strong>07</strong>. The amount <strong>of</strong> Rm50 made available was notsufficient to address the maintenance backlog. Withoutsufficient funds, the backlog increased and the rate <strong>of</strong>progress to eliminate the backlog is therefore not accordingto plan. The DOD again approached NationalTreasury and stressed the importance <strong>of</strong> making sufficientfunds available to address this thorny issue. An amount <strong>of</strong>Rm330 was made available for the FY20<strong>07</strong>/08. This isagain not enough to address the maintenance backlogeffectively.ASSET MANAGEMENTProjects Carried ForwardDetails <strong>of</strong> projects carried forward in the FY20<strong>07</strong>/08 arereflected in Table 1.6.Table 1.6: Projects Carried Forward to the FY20<strong>07</strong>/08LocationBloemfonteinBloemfonteinBloemfonteinBredasdorpSimon's TownLangebaanSimon's TownJan KempdorpLohatlhaMurray HillProject Description3 Military Hospital: UpgradingMilitary Police Agency: Convert building into female detentionfacilityAir Force Base Bloemspruit: Upgrading <strong>of</strong> hard stands, parkingareas and taxiways.Test Flight and Development Centre: New aircraft rinsing facilityConstruction <strong>of</strong> <strong>of</strong>fice block4 Special Forces Regiment: Construction <strong>of</strong> boat facilitySA Navy Ammunition Depot: Upgrading <strong>of</strong> water system93 Ammunition Depot: Upgrading <strong>of</strong> buildingsSA Army Combat Training Centre: Construction <strong>of</strong> new sickbaySpecial Forces School: Construction <strong>of</strong> Urban Training FacilityPlanned Completion Date2009/1020<strong>07</strong>/0820<strong>07</strong>/0820<strong>07</strong>/0820<strong>07</strong>/082008/092008/0920<strong>07</strong>/0820<strong>07</strong>/082008/09New ProjectsDetails <strong>of</strong> projects that will commence in the FY20<strong>07</strong>/08 are reflected in Table 1.7.Table 1.7: New Projects to Commence in the FY20<strong>07</strong>/08LocationBloemfonteinPretoriaPhalaborwaPretoriaVarious CentresProject Description7 Mobilisation Centre: Tarring <strong>of</strong> access road1 Military Hospital: Upgrading <strong>of</strong> fire detection and preventionsystems5 Special Forces Regiment: Construction <strong>of</strong> ammunition storagefacilityWallmansthal: Erection <strong>of</strong> security fenceRamps for disabled personnelPlanned Completion Date20<strong>07</strong>/082008/0920<strong>07</strong>/0820<strong>07</strong>/0820<strong>07</strong>/08ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 11
programme 1chapter 2<strong>Defence</strong> Objectives, Outcome and Outputs12DEPARTMENT OF DEFENCE
Chapter TwoPROGRAMME 1 -DEFENCE ADMINISTRATIONa nationalpartnershipto build abetter lifefor allDEPARTMENT:DEFENCEINTRODUCTIONThe <strong>Defence</strong> Administration Programmeoversees the activities <strong>of</strong>the <strong>Department</strong> by formulatingpolicy, providing strategic direction,and organising the <strong>Department</strong>in terms <strong>of</strong> its structure andforce design to achieve the objectives<strong>of</strong> <strong>Defence</strong>. It provides servicesin the areas <strong>of</strong> corporate management,planning, human resources,legal matters, religious guidance, corporatecommunications, Reserve Forceissues and defence foreign relations.<strong>Defence</strong> Administration provides services,which include issuing directives in theareas <strong>of</strong> political direction, which is theresponsibility <strong>of</strong> the Minister <strong>of</strong> <strong>Defence</strong>.The Political direction is translated intothe <strong>Department</strong>al direction, which is theresponsibility <strong>of</strong> the Secretary for<strong>Defence</strong>.The following subprogrammes within the<strong>Defence</strong> Administration Programme fallwithin the responsibilities <strong>of</strong> theSecretary for <strong>Defence</strong>:● Political Direction.● <strong>Department</strong>al Direction. *● Government InformationTechnology Officer (GITO). * 1● Policy and Planning. *2● Financial Services. *● Acquisition Services. *● Inspections Services. *The following subprogrammes withinthe <strong>Defence</strong> Administration Programmefall within the responsibilities <strong>of</strong> theSANDF:● SANDF Command and Control.● Corporate Staff Division:●● Strategy and PlanningServices.●●●Religious Services.Corporate Communication.Reserve Force Division.● <strong>Defence</strong> Foreign Relations.Human Resources SupportCentre. 4● Property Management.51The Minister <strong>of</strong> <strong>Defence</strong> approved the establishment <strong>of</strong> the <strong>of</strong>fice <strong>of</strong> the GITO as a subprogrammeon 17 January 20<strong>07</strong>.2In the Estimate <strong>of</strong> National Expenditure, the Policy and Planning allocation includes fundingfor the Corporate Staff Office and Strategy and Planning Office. The Equal Opportunity andAffirmative Action Office is included in the Human Resources Allocation.3The Minister <strong>of</strong> <strong>Defence</strong> approved the establishment <strong>of</strong> the <strong>Defence</strong> Legal Services Divisionon 3 October <strong>2006</strong>, therefore the name changed from Military Legal Service to <strong>Defence</strong>Legal Service.4This subprogramme is reported in Chapter 9 under the Joint Support Programme.5This subprogramme is reported in Chapter 9 under the Joint Support Programme.* <strong>Defence</strong> Secretariat.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong>13
<strong>Defence</strong> Administrationchapter 2programme 114PURPOSEThe <strong>Defence</strong> Administration Programme conducts thepolicy development, management and administration <strong>of</strong>the <strong>Department</strong>.OUTPUTSThe main outputs <strong>of</strong> the <strong>Defence</strong> AdministrationProgramme for the DOD are defence policy advice, providingstrategic direction through resource allocationadvice, corporate plans, reports and ministerial services.However, it also provides specific operational outputs forservices and divisions in the <strong>Department</strong>.SUBPROGRAMME POLITICALDIRECTIONOVERVIEWThe Minister <strong>of</strong> <strong>Defence</strong> has ensured that the mission <strong>of</strong>defending and protecting the sovereignty and the territorialintegrity <strong>of</strong> Republic <strong>of</strong> South Africa as well as providingsupport to the people, has been fulfilled. This wasdone by maintaining cost effective defence capabilities, inorder to be prepared and equipped to participate in operationsas ordered and funded by government. TheMinister's theme for the year under review was" are weready". All Divisions and arms <strong>of</strong> Services were compelledto continually review their state <strong>of</strong> readiness.Where shortfalls were identified, these had to beaddressed.The period was also characterised by the implementation<strong>of</strong> the Minister's directive that a focused attention begiven to the ongoing transformation <strong>of</strong> the Military JusticeSystem, as well as the restructuring <strong>of</strong> the <strong>Department</strong> forDEPARTMENT OF DEFENCEgreater internal, external, allocative efficiency. TheMinister <strong>of</strong> <strong>Defence</strong> in collaboration with the Minister <strong>of</strong>Public Enterprise gave direction to the <strong>Department</strong> on thetransformation <strong>of</strong> the defence industry.Contribution to global security was epitomised by TheMinister <strong>of</strong> <strong>Defence</strong>'s political direction to, and active participationin the peace processes in the DemocraticRepublic <strong>of</strong> the Congo, the peace process in Burundi andthe Ivory Coast as well as provision <strong>of</strong> military observersin the Sudan, Ethiopia and Eritrea. Interventions pursuedfocused on further deepening democracy in Africa includethe support provided to the elections in the Comoros,Madagascar and Lesotho.The Minister <strong>of</strong> <strong>Defence</strong> is the Deputy Chair <strong>of</strong> theInternational Relations Peace and Security cluster <strong>of</strong>Cabinet. He also heads the South African Governmentdelegation to the Inter State <strong>Defence</strong> and securityCommittee <strong>of</strong> the Southern African DevelopmentCommunity (SADC).During the period under review the Minister paid workingvisits to a number <strong>of</strong> foreign <strong>Defence</strong> Ministers, therebystrengthening Government-to-Government relations inpursuit <strong>of</strong> peaceful and stable relations.MEASURABLE OBJECTIVETo provide political direction to the DOD to ensure thedemocratic defence <strong>of</strong> South Africa by meeting therequired defence commitments and providing appropriatedefence capabilities.OUTPUT DETAILTable 2.1: Output Details <strong>of</strong> Political Direction for the FY<strong>2006</strong>/<strong>07</strong>OutputPolitical directionto theDOD<strong>Defence</strong> policyadvice to theGovernmentPerformanceMeasureTranslation <strong>of</strong> theGovernment'sProgramme <strong>of</strong>Action andCabinet ' resolutioninto prioritiesand planningguidelines <strong>of</strong> theDODPolicy updates,inputs and proposalsto the CabinetMakgotla, PortfolioCommittee on<strong>Defence</strong> andParliamentTargetDOD Implementation <strong>of</strong>Minister's guidelinesissued in September2004Finalisation <strong>of</strong> the WhitePaper on <strong>Defence</strong> aswell as the <strong>Defence</strong>Review (<strong>Defence</strong>Update). <strong>Report</strong>s tothe Minister on foreignvisits to countries asspecified in the DODschedule on bilateraldefence commitmentsDetails <strong>of</strong> Political Direction are reflected in Table 2.1.Actual AchievementThe realisation <strong>of</strong> the Minister's priorities issued inSeptember 2004 for FY<strong>2006</strong>/<strong>07</strong>. Ensured that the DODcomplied with national legislation and Government regulationsand the ensuing imperatives as well as providedcapacity for the Secretary for <strong>Defence</strong> and the Chief <strong>of</strong> theSANDF to discharge their statutory responsibilities. TheMinister <strong>of</strong> <strong>Defence</strong>'s work session held during the periodunder review. Parliamentary oversight was provided tointensify measures to ensure civil control. <strong>Department</strong>algovernance and accountability were institutionalised andimproved. Planning guidelines were issued to the<strong>Department</strong>.Provided strategic direction on the finalisation <strong>of</strong> the WhitePaper on <strong>Defence</strong> as well as the <strong>Defence</strong> Review(<strong>Defence</strong> Update). The Minster signed a MinisterialDirective (MODD.00002/20<strong>07</strong>) on 'South African National<strong>Defence</strong> Force Deployment Authorisation in Fulfilment <strong>of</strong>an International Obligation' on 27 February 20<strong>07</strong>. TheDirective provided instructions and guidelines on thenational approval process for the SANDF for all deployments.<strong>Report</strong>s on foreign visits were submitted asscheduled.
SUBPROGRAMME DEPARTMENTALDIRECTIONOVERVIEWDuring the period under review, the guidelines issued bythe Minister <strong>of</strong> <strong>Defence</strong> were analysed and translated intoclear DOD deliverables. Alignment <strong>of</strong> DOD priorities,plans and programmes, processes with broadGovernment priorities, trajectory, strategies and plans featuredprominently during the interrogation and optimisation<strong>of</strong> DOD funding priorities which were subsequentlysubmitted to the National Treasury for consideration duringthe MTEC hearings. Further support was solicited forfunding <strong>of</strong> DOD shortfalls and options through engagementswithin the determinant clusters, notably the Justice,Crime Prevention, Peace and Security (JCPS) cluster. TheSecretary for <strong>Defence</strong> spearheaded the implementation <strong>of</strong>systemic performance improvement measures in order toinstitutionalise economic, efficient, effective and equitablemobilisation and utilisation <strong>of</strong> resources thus optimisingcompliance with government prescripts. This decisiveintervention assisted in the refocusing <strong>of</strong> the DOD activitiesto be in line with the DOD Strategic objectives.Extensive progress was made in realising the Minister'sdirective on the transformation <strong>of</strong> the DOD to provide foroptimal functionality. The Secretary for <strong>Defence</strong> has continuallyensured alignment <strong>of</strong> the vision, mission andtasks <strong>of</strong> the DOD through the realisation <strong>of</strong> its missionstatement. The DOD's strategy and plans are aligned toother broad strategies, programmes and the Government'sobjectives as set from time to time. Further efficient andeffective utilisation <strong>of</strong> information and information technologyas a strategic resource within the DOD has beenpr<strong>of</strong>iled on a continuing basis. Lastly the planning, coordinationand control <strong>of</strong> the operation <strong>of</strong> the Office <strong>of</strong> theSecretary for <strong>Defence</strong> has been executed within the principles<strong>of</strong> sound governance as articulated in the applicableGovernment policies and regulatory frameworks.These activities were all executed within the allocatedbudget. Further institutionalisation <strong>of</strong> good governancewithin the DOD has been pursued through effective, efficientand economical management, administration andaccounting located within the evolving regulatory frameworkand Government policy.MEASURABLE OBJECTIVETo provide departmental direction to the DOD to ensurethe effective, efficient and proper conduct <strong>of</strong> defenceactivities in accordance with legislation and policy.OUTPUT DETAILDetails <strong>of</strong> <strong>Department</strong>al Direction outputs are reflected inTable 2.2.SUBPROGRAMME GOVERNMENTINFORMATION TECHNOLOGYOFFICEROVERVIEWThe strategic objectives guiding the functioning <strong>of</strong> theOffice <strong>of</strong> the GITO were managed in terms <strong>of</strong> the strategicbusiness plan for the GITO approved for the FY<strong>2006</strong>/<strong>07</strong>.The following results were achieved and will form thebasis <strong>of</strong> continuing the work <strong>of</strong> the GITO with the emphasison implementation and the realisation <strong>of</strong> improvedstrategic objectives:● The GITO Office is fully capacitated with theappointment <strong>of</strong> the Director EnterpriseInformation Systems. The process <strong>of</strong> staffing iscurrently ongoing and will be finalised in June20<strong>07</strong>.● The <strong>Department</strong>al Enterprise Information Systems(DEIS) Strategic Direction was formalisedand approved and the DEIS Master Plan is now inthe final stages <strong>of</strong> approval. This will guide theoptimisation <strong>of</strong> the DEIS towards approved<strong>Defence</strong> objectives and requirements.Table 2.2: Output Details <strong>of</strong> the <strong>Department</strong>al Direction for the FY<strong>2006</strong>/<strong>07</strong>OutputPerformanceMeasureTargetActual Achievement<strong>Defence</strong> policyadvice to theMinister <strong>of</strong><strong>Defence</strong><strong>Department</strong>aldirection to theDOD<strong>Defence</strong> policiesaligned withGovernment priorities;inputs toBudget Speech;inputs to CabinetMakgotlaAnalysed Minister<strong>of</strong> <strong>Defence</strong>'s guidelinesto the DOD 'sSenior <strong>of</strong>ficialsThe DirectorateParliamentary Services inthe Office <strong>of</strong> the Secretaryfor <strong>Defence</strong> must bestrengthened to improvecoordination <strong>of</strong> advice to theMinister and ParliamentStrengthen the Office <strong>of</strong> theSecretary for <strong>Defence</strong> withspecialised personnel toenable proper coordination<strong>of</strong> DOD projectsPartial achievement. Directorate IntegratedManagement Systems (DIMS) undertook a workstudy and the proposed structure included the creation<strong>of</strong> a Chief Director Post, which is still underrevision.Partial achievement. A work study was undertakenby DIMS and the proposed structure included thecreation <strong>of</strong> a Chief Director Post, which is stillunder revision.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 15
●●The planning to fully review the DEIS-related regulatoryframework was completed and theReview Plan is awaiting approval.The DOD is actively pursuing increased involvementin the GITO Council and other mechanisms<strong>of</strong> the Government and Industry to ensure structuredand focused participation.OUTPUT DETAILDetails <strong>of</strong> the GITO outputs are reflected in Table 2.3.Table 2.3: GITO Output Detail for the FY<strong>2006</strong>/<strong>07</strong>OutputPerformanceMeasureTargetActual AchievementDODInformationStrategy: DEISFramework;DICTASufficient knowledgetransfer fromGITO to DEISGITO's role in thedepartmentalmanagementframeworkReview and improve DEISStrategic Direction for theDOD to implement appropriatemanagement arrangementsand mechanisms to ensureperformance and compliancewith the policy and strategicdirection <strong>of</strong> the DOD.Establish the roles, responsibilityand participation whilstensuring clarification <strong>of</strong> utilityIntegration <strong>of</strong> comprehensive DEIS RegulatoryFramework requirement in DEIS Master Plan andminor updates in current Version (2). CompletedCMIS Regulatory Framework (Version 1) by theend <strong>of</strong> April <strong>2006</strong> to support the CMIS PolicyDevelopment and Maintenance Plan.Target partially achieved. The DOD CMIS PolicyDevelopment and Maintenance Plan is under continuousrevision.Reviewed the 05/06 DOD ICS Policy andMaintenance Plan - Issued DOD ImplementationInstruction 46/06 to migrate the ICS PolicyDevelopment and Maintenance plan to the area <strong>of</strong>the functional area specialists.PERFORMANCE AND SERVICE DELIVERY IMPROVEMENTDetails <strong>of</strong> performance and service delivery <strong>of</strong> the GITO are reflected in Table 2.4.Table 2.4: GITO Performance and Service Delivery Improvement for the FY<strong>2006</strong>/<strong>07</strong><strong>Defence</strong> Administrationchapter 2programme 116ActivitiesAligning the ICSPlanning with thedepartmental planningand that <strong>of</strong> theGovernment.The investigation <strong>of</strong> aninitiative to help populatethe DEISRegulatory Frameworkand support all otherDOD stakeholders witha Governance MetaModel through theDEIS Master Plan.The implementation <strong>of</strong>a new Integrated ICSPolicy Developmentand Maintenance Planon level 3 by May 20<strong>07</strong>Functional area specialistinvolvement(Determine the requirement<strong>of</strong> new or urgentCMIS policy to bedeveloped.)Planned ManagementInterventionSynchronise theDOD's ICS strategicmanagement processes<strong>of</strong> the DOD and theGovernmentRequest the activation<strong>of</strong> the DEIS MasterPlan to update theDEIS RegulatoryFramework [a projectto use externalresources as part <strong>of</strong>the solution]Formulate new ICSPolicy Requirementsand issue new DODICS implementationguidelines to the CMISDivision, System integratorwith functionalarea specialist involvement.DEPARTMENT OF DEFENCEAnticipatedBenefitSynchronisationwith DODStrategicPlanning andGovernment initiativesCompliance withgovernance andan excellent integratedperformancemanagementmodel.Progress to aworkable DODICS PolicyDevelopmentand MaintenancePlan.StatusOngoingIn planOngoingActualAchievementAttendance andparticipation in theStrategic Planningsessions <strong>of</strong> theDOD and those <strong>of</strong>e-Government.Second presentationin respect <strong>of</strong>the development<strong>of</strong> a Meta Modelfor Governancethat could supportthe request by theDOD.Well-defined andexecutable ICSPolicyDevelopment andMaintenance Plan.Reason for DeviationLack <strong>of</strong> DODRegulatoryFramework developmentprocess thatcould support theDEIS RegulatoryFramework developmentprocess.Poor involvement <strong>of</strong>policy writers andteam leaders (functionalarea specialists)to write andreview ICS policiesas tasked - seriousshortage <strong>of</strong>resources.
SUBPROGRAMME SANDFCOMMAND AND CONTROLThe Chief <strong>of</strong> the SANDF executes command and controlover the SANDF through this subprogramme. The Chief<strong>of</strong> the SANDF has the ultimate responsibility <strong>of</strong> providingstrategic direction to the SANDF in preparing capabilitiesand ensuring the operational efficiency and effectiveness<strong>of</strong> the SANDF during military operations and exercises.MEASURABLE OBJECTIVETo provide command and control for the SANDF.OUTPUT DETAILDetails <strong>of</strong> the SANDF Command and Control are shownin Table 2.5.Table 2.5: SANDF Command and Control Outputs for the FY<strong>2006</strong>/<strong>07</strong>OutputPerformanceMeasureTargetActual AchievementMilitary policyadvice to theMinister <strong>of</strong><strong>Defence</strong>Strategic directionto theSANDFQuality <strong>of</strong> militaryadviceOperational readiness<strong>of</strong> theSANDFDegree <strong>of</strong> success<strong>of</strong> ordered operationsThe degree towhich the allocatedresources satisfiedachievement<strong>of</strong> planned forcelevels and readinessstatesDegree <strong>of</strong> sustainability<strong>of</strong> theSANDFFull client satisfactionReadiness maintained inaccordance with theforce employment guidelinesthrough the MilitaryCommand CouncilOperations conductedsuccessfullyMaintenance <strong>of</strong> forcestructure and designResource allocation interms <strong>of</strong> force deploymentrequirements andstatus <strong>of</strong> readinessrequired100% attendance at theForum <strong>of</strong> South AfricanDirectors General(FOSAD) and ClustermeetingsPledges towards theAfrican Standby Forceplans completedThe target was fully achieved. The Chief <strong>of</strong> the SANDFprovided advice on military matters as required.Through Military Command Council meetings, the Chief<strong>of</strong> the SANDF directed the maintenance <strong>of</strong> readiness inaccordance with force employment guidelines. TheSANDF could comply with meeting readiness levels forpeace support operations as well as internal deploymentsin support <strong>of</strong> the SAPS and other State departments.Force preparation for comprehensive defencecapabilities continued by means <strong>of</strong> service-unique jointand multinational military exercises. See detailed reportsin Chapters 2 to 8.This objective was successfully achieved. Deployment<strong>of</strong> mission-ready SANDF forces in compliance with theregulatory framework took place as ordered and withinthe time frame. The SANDF deployed more than 3 000members on peacekeeping operations. The AU forexcellent support commended the SANDF during theelections in the Comoros. President Mbeki praised theSANDF for excellent performance during deployments.Force design and force structure were maintained at alevel that met operational requirements. Resourcerequirement and expectations <strong>of</strong> the Governmentexceeded actual resources. Supported by a multidivisionalForce Design/Force Structure Work Group, theChief <strong>of</strong> the SANDF and members <strong>of</strong> the MilitaryCommand Council deliberated on the capability requirementand sustainability <strong>of</strong> the SANDF. A 'viable' forcedesign was accepted as the strategic way forward. TheSANDF resource requirements were made visible to theSecretary for <strong>Defence</strong> and the Minister <strong>of</strong> <strong>Defence</strong>.The degree <strong>of</strong> sustainability <strong>of</strong> SANDF capabilities isdemonstrated by the approach <strong>of</strong> the DOD to selectivelyengage military resources during the conduct <strong>of</strong> operationsin support <strong>of</strong> peace missions. The DOD hasreached a situation where military capabilities requiredfor peace missions are approaching subcritical levels <strong>of</strong>sustainment.The Chief <strong>of</strong> the SANDF or his representative attendedall FOSAD and cluster meetings. <strong>Department</strong>al activities,originating from FOSAD and cluster meetings wereincorporated into the DOD Strategic Business Plan.The African Standby Force, through its regional enablingmechanism, SADCBRIG, determines that pledges areregularly updated. The DOD has, in preparation for thelaunch <strong>of</strong> the SADCBRIG during the 20<strong>07</strong> SADC Summitin Lusaka, verified and submitted its pledge.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 17
SUBPROGRAMME POLICY ANDPLANNINGOVERVIEWDuring the period under review, the Policy and PlanningDivision provided defence policy, strategy, plans anddepartmental instructions for the DOD that are fullyaligned with Government policy and defence needs <strong>of</strong>South Africa.Subprogramme Policy and Planning has piloted manyideas, management planning and institutionalisation <strong>of</strong>quality promotion processes. Various interventions thatwere aimed at improving the quality <strong>of</strong> reporting wereintroduced. This involved monitoring and evaluation,which focussed on a multipronged approach to ensure aqualification-free audit.Policy and Planning provides administrative support andpr<strong>of</strong>essional advice to the Secretary for <strong>Defence</strong> on mattersrelating to prudent development <strong>of</strong> strategic plansand the accounting there<strong>of</strong>. The subprogramme renderedpolicy advice to the <strong>Department</strong>, as well as drafted, negotiated,and concluded bilateral and multilateral defenceagreements with other states. It was also in the process <strong>of</strong>developing operations policy and monitoring implementationsso that the SANDF could ensure operationaldeployment that is consistent with existing and mergingpolicies. Research and analytical support to defence policyand planning activities have been provided during theperiod under review.The Division was actively involved in all work groupsunder the DOD Development Steering Committee for therestructuring <strong>of</strong> Human Resources, <strong>Defence</strong> Matériel,<strong>Defence</strong> Foreign Relations, Inspector General DOD,Military Police Agency, Policy Strategy and Planning,Finance Management Division, Service Corps, Head <strong>of</strong>Communication, Office <strong>of</strong> the Secretary for <strong>Defence</strong>,Information Liaison Office, Chief <strong>of</strong> <strong>Defence</strong> Staff andChaplain General. All reports with the aforementionedentities have been completed and submitted for approval.Three reports have already been approved by the Minister<strong>of</strong> <strong>Defence</strong> and implemented on the StructureManagement Control System (SMCS), namely LegalServices, Military Police Agency and Human Resources.MEASURABLE OBJECTIVESTo advise on national security policy matters, coordinatestrategic policy matters and coordinate the strategic directionprocess by developing, formulating, monitoring andadapting defence policy, strategy and plans in accordancewith national policy to enable the effective, efficient andproper conduct <strong>of</strong> defence activities.OUTPUT DETAILDetails <strong>of</strong> Policy and Planning are reflected in Table 2.6.Table 2.6: Policy and Planning Output Details for the FY<strong>2006</strong>/<strong>07</strong><strong>Defence</strong> Administrationchapter 2programme 118Output<strong>Defence</strong>StrategyStrategicBusiness PlanQuarterly and<strong>Annual</strong><strong>Report</strong>sPerformanceMeasure<strong>Department</strong> 'sStrategicFrameworkaligned toGovernment planningcyclePlanning and<strong>Report</strong>ing reflectingthe intentions<strong>of</strong> the <strong>Department</strong>and theGovernment<strong>Report</strong>ing reflectingthe intentions<strong>of</strong> the <strong>Department</strong>and TheGovernment.TargetStaff all the vacant postsComplete the deparmental policies on planningComplete the departmentalpolicies onreportingDEPARTMENT OF DEFENCEActual AchievementThe DOD has complied with the regulatory framework asdetailed in Chapter 1, thereby aligning the <strong>Department</strong> withthe National Planning Framework and Government planningcycles. Adequate staffing was achieved to monitor thealignment <strong>of</strong> DOD processes with the planning cycle andframework <strong>of</strong> the Government.DOD objectives are aligned with the Medium-termStrategic Framework (MTSF) and the GovernmentProgramme <strong>of</strong> Action (POA) as promulgated after theJanuary Lekgotla <strong>of</strong> each year.The Minister <strong>of</strong> <strong>Defence</strong> tabled the DOD StrategicBusiness Plan FY20<strong>07</strong>/08 in Parliament on 22 March20<strong>07</strong>. DOD instructions guiding planning were issuedjointly by the Secretary for <strong>Defence</strong> and the Chief <strong>of</strong> theSANDF, namely DOD Planning Instruction 36/06: MediumtermStrategic Guidelines for the DOD FY2008/09-FY2010/11 and DOD Implementation Instruction 17/06:Requirements for Planning for the FY2008/09.DOD Quarterly reports for the FY<strong>2006</strong>/<strong>07</strong> were submittedto the Accounting Officer and Executive Authority. TheDOD <strong>Annual</strong> <strong>Report</strong> for the FY2005/06 was submitted tothe Minister <strong>of</strong> <strong>Defence</strong>. The DOD <strong>Annual</strong> <strong>Report</strong> waspresented to the Parliamentary Committee on <strong>Defence</strong>who commended the <strong>Department</strong> on a good report. TheMinister <strong>of</strong> <strong>Defence</strong> tabled the <strong>Annual</strong> <strong>Report</strong> in Parliamenton 12 September <strong>2006</strong>. The DOD End-<strong>of</strong>-Year <strong>Report</strong>was submitted to the Presidency on 9 November <strong>2006</strong>.
Table 2.6: Policy and Planning Output Details for the FY<strong>2006</strong>/<strong>07</strong> (Continued)OutputPerformanceMeasureTargetActual Achievement<strong>Defence</strong> PolicyFinalisation <strong>of</strong> thereview on thereview on defencepolicy to meet thechangingdemands <strong>of</strong> thedefence landscapeTo ensure that defencepolicy is reviewed andfinalisedOn <strong>07</strong> December <strong>2006</strong>, the Minister approved that the<strong>Defence</strong> Update be forwarded to structures outside the<strong>Department</strong> for engagement. Consequently, the Director-Generals <strong>of</strong> the IRPS and JCPS were engaged and recommendedthe Update to the Director's General <strong>of</strong> theNational Security Council. Once this approval has beenobtained, Cabinet and Parliament can be engaged.Policy guidelines have been developed to provide theDOD input on various defence-related matters. Forexample, a DOD policy position on cluster munitions wasestablished to the effect that cluster munitions are a validweapon <strong>of</strong> war provided they are constructed for a reliablefunction and used according to the laws <strong>of</strong> armedconflict.StructureManagementServicesHR Strategy:Plans andLabour PolicyApproved structures<strong>of</strong> servicesand divisions correspondingwiththe StrategicBusiness PlanImplementation <strong>of</strong>Performance managementthroughthe application <strong>of</strong>the BalancedScore Card (BSC)Reviewed andupdated HRStrategy 2010Acquisition <strong>of</strong> integratedenterprise architecturesolution (IEAS) andestablish correspondingrepositoryFinalise the feasibilitystudy on the implementation<strong>of</strong> the BSC; roll-outthe BSC DOD-wideReviewing process <strong>of</strong> HRStrategy 2010, whichincludes analysis <strong>of</strong> surveysand reviewing <strong>of</strong>inputs and reports onproposed amendmentsImprove the coordinationand collation <strong>of</strong> DOD HRpolicies and their alignmentin relation tolegislation and nationalpoliciesThe planned acquisition <strong>of</strong> the Integrated EnterpriseArchitecture Solution toolset and repository wereacquired outside Project LOQUACIOUS by CMIS Divand will be operational from September 20<strong>07</strong>. The outcomewill be an integration <strong>of</strong> business process architectureand ICT architecture to enable the development <strong>of</strong>ICT systems that directly support business processes.Currently, 90% <strong>of</strong> the objectives have been achieved inpreparation for roll-out <strong>of</strong> the toolset and repository in theDOD.68% <strong>of</strong> Business Architecture (work study) reports werecompleted and 32 reports are awaiting approval fromvarious approving authorities. A User RequirementStatement to renew the <strong>Department</strong>al OrganisationStructuring System (DOSS) was fully completed andhanded to SITA for development.Target achieved. Implemented BSC at 2 pilot sites inthe DOD. Balanced Scorecard (BSC) Project has showngood progress in completing <strong>of</strong> the pilot project(s) in theSA Navy and the Financial Management Division. ThePlenary <strong>Defence</strong> Staff Council has approved the highlevelplan for implementation <strong>of</strong> the BSC in the DOD.Actions are currently under way to ensure that the<strong>Department</strong> is able to undertake the roll-out.HR Strategy input for <strong>Defence</strong> Update completed andapproved. DOD Planning Instruction promulgated for thereview <strong>of</strong> the DOD HR Strategy. Stage 1 <strong>of</strong> HR StrategyReview completed (input reports compiled). HRPlanning and Budgeting Guidelines for the 2008/09MTEF approved and promulgated.HR Strategy 2010: The combination <strong>of</strong> MSDS, selectiveappointments in the Core Service System, and the effectiveand efficient implementation <strong>of</strong> the MEM will enablethe DOD to rejuvenate the SANDF HR component.<strong>Defence</strong> Update. The Chief Directorate HR StrategicDirection and Policy coordinated the HR inputs forChapter VI (<strong>Defence</strong> Resources) <strong>of</strong> <strong>Defence</strong> Update<strong>2006</strong>. The Minister <strong>of</strong> <strong>Defence</strong> has approved the document.DOD policies on service delivery are beingaligned with Government prescripts.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 19
Table 2.6: Policy and Planning Output Details for the FY<strong>2006</strong>/<strong>07</strong> (Continued)OutputPerformanceMeasureTargetActual Achievement<strong>Defence</strong> Administrationchapter 2Closed ArmyTerritorialReserves (ATR/Commando's)Cluster <strong>Report</strong>sMultilateralsecurity policy<strong>Defence</strong>MaterielResourcePolicyHR plans andbudgets: publishedHR delegations forthe DOD in terms<strong>of</strong> the regulationsframeworkRefer to table 3.1Monthly JCPSCluster <strong>Report</strong>sImplemented therelevant policieswith regard to thedeployment.Continued monitoring<strong>of</strong> externaldeployments asper SBPFY<strong>2006</strong>/<strong>07</strong>.Render policyadvice to theGovernment andthe DOD ondefence materialresourcesAppropriately assignedHR delegationsDOD inputs into andDOD actions related tothe MakgotlaParticipate fully in allcluster and FOSADmeetings with approvedDOD input and interventionsMonitored and ensuredthat defence policy isaligned with Nationaland departmental goalsand international obligationsProvided advice on specificmatériel resourcespolicy related matters.The HR section <strong>of</strong> 20<strong>07</strong> DOD Environmental Analysescompleted and approved. DOD Planning Instructionpromulgated for the FY2008/09 DOD HR Support Planscompleted. HR functionaries were empowered thoughpresenting HR planning modules at Personnel ServicesSchool during October <strong>2006</strong> and March 20<strong>07</strong>. TheFY20<strong>07</strong>/08 HR EOE was completed.Monthly representation <strong>of</strong> Chief Directorate on theNational Joint Operational and Intelligence Structure(JOINTS) Task Team to manage closing-down process.Continuous monitoring <strong>of</strong> the implementation <strong>of</strong> SANDFExit/SAPS Entry Strategy.Prepared inputs to Government clusters, specifically theIRPS and JCPS Cluster, on behalf <strong>of</strong> Chief <strong>of</strong> Policy andPlanning to Secretary for <strong>Defence</strong>. The IRPS clusterobjectives inform the external deployments <strong>of</strong> theSANDF in fulfilment <strong>of</strong> an international obligation.Participated in all policy papers developed by the IRPSand JCPS clusters for the Cabinet Makgotla andFOSAD.The DOD translated the programme <strong>of</strong> action into its programmesas reflected in the Strategic Business Plan.The required End <strong>of</strong> the Year <strong>Report</strong> was submitted forthe Programme <strong>of</strong> Action (POA).In alignment with Government POA priorities, DOD internationaldefence Commissions were conducted. Anexample was the Zimbabwe/SOUTH AFRICA JointPermanent Commission <strong>of</strong> <strong>Defence</strong> and SecurityCooperation talks held at the Victoria Falls, Zimbabwe,from 22 to 24 November <strong>2006</strong>. Emanating from the discussions,the Secretary for <strong>Defence</strong> and other DirectorsGeneral from the JCPS Cluster undertook a successfulexploratory visit to Musina/Beit Bridge. The visit was ajoint effort by the JCPS and their counterparts in Zimbabwe.Ensured that all international SANDF deploymentsenjoyed an international mandate from the UN/AU andthe domestic mandate was obtained by means <strong>of</strong>Presidential Minutes and Cabinet Memoranda. An exampleis the thirty-one (31) SANDF members, one (1)Dakota C-47TP aircraft and two Oryx helicopters thatwere deployed to the Republic <strong>of</strong> Madagascar in support<strong>of</strong> the presidential election held on 3 December <strong>2006</strong>(Presidential Minute 697 <strong>of</strong> <strong>2006</strong> dated 28 November<strong>2006</strong>).Provided DOD inputs on review <strong>of</strong> National ConventionalArms Control (NCACC) Act, 2002 (No 41 <strong>of</strong> 2002).Prepare Ministerial guidelines to the DOD and Armscorfor the management <strong>of</strong> end-use controls on importedequipment <strong>of</strong> the DOD that is subject to DOD obligationsto the supplying country and manufacturer.programme 120DEPARTMENT OF DEFENCE
Table 2.6: Policy and Planning Output Details for the FY<strong>2006</strong>/<strong>07</strong> (Continued)OutputPerformanceMeasureTargetActual AchievementMulti andBilateralengagements<strong>Defence</strong> operationalcommitmentsParticipation inAU, SADC andother globalforumsSigned memoranda<strong>of</strong> understanding:correct procedures<strong>of</strong> deploymentfor peacekeepingmissionsParticipated in variousinterdepartmental meetingsand provided inputand advice on key<strong>Defence</strong> foreign relationspolicy issuesParticipated in variousinterdepartmental meetingsand provided inputand advice on key operationspolicy issuesEleven (11) draft agreements were drafted during theperiod under review. These include MOUs with the AU,Peru, the Sudan and Burundi on defence cooperation.Included are also agreements with Ghana, Gabon,Malawi and Congo-Brazzaville. Nine (9) agreementswere finalised during the period under review. Theseagreements include MOUs with Spain, Korea, Namibia,Lesotho and Jordan. Also included are agreements withTanzania, Ghana and Zimbabwe.Cooperation agreements with the governments <strong>of</strong> the followingcountries:A Letter <strong>of</strong> Assistance with the UN on the provision <strong>of</strong> airtransport services to ONUB (UN Mission in Burundi)signed on 10 June <strong>2006</strong>.Agreement on military technical cooperation with Belaruson 29 August <strong>2006</strong>. Agreement on Reciprocal Protection<strong>of</strong> Intellectual Property Rights Used and Established inthe Course <strong>of</strong> Bilateral <strong>Defence</strong> Industry Cooperationwith Russian Federation on 5 September <strong>2006</strong>.MOU on <strong>Defence</strong> Cooperation with Chile on 11 October<strong>2006</strong> and with Gabon on 01 November <strong>2006</strong>. MOU on<strong>Defence</strong> Cooperation with the Central African Republicon 11 February 20<strong>07</strong>. MOU concerning building <strong>of</strong> O.R.Tambo School <strong>of</strong> Leadership with Uganda on 06 March20<strong>07</strong>.A Letter <strong>of</strong> Assistance with the UN regarding MONUC(UN Mission in the DRC) on provision <strong>of</strong> helicopter servicesin the DRC in January 20<strong>07</strong>.Agreement with Namibia concerning the treatment <strong>of</strong>Commonwealth war graves in February 20<strong>07</strong>.Obtained Minister <strong>of</strong> <strong>Defence</strong> and Presidential approvalregarding the various international SANDF deployments.Examples include:The DRC National Observer Mission as requestedby SADC.The expansion <strong>of</strong> the SANDF's MONUC deploymentwith personnel and aircraft.The expansion <strong>of</strong> personnel and equipment tothe AMIS deployment in the Sudan.Deployment in support <strong>of</strong> the elections inLesotho, Madagascar and the Comoros.Deployments to Nepal and Burundi.Deployments to Mozambique for support with thefloods and ammunition explosion.Deployments in support <strong>of</strong> the 20<strong>07</strong> WorldCricket Cup in the West Indies.The Ministerial Directive (MODD/0002/20<strong>07</strong>) on SANDFDeployment Authorisation in Fulfilment <strong>of</strong> an InternationalObligation was signed on 27 February 20<strong>07</strong>.Participation in SADC Organ and ISDSC MinisterialCommittee meetings with regard to MOU on the establishment<strong>of</strong> the SADCBRIG.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 21
PERFORMANCE AND SERVICE DELIVERY IMPROVEMENTDetails <strong>of</strong> performance and service delivery improvement are reflected in Table 2.7.Table 2.7: Performance and Service Delivery Improvement for the FY<strong>2006</strong>/<strong>07</strong>ActivitiesPlanned ManagementInterventionAnticipated BenefitStatusActual Achievement<strong>Defence</strong> Administrationchapter 2Affordable structurealignment <strong>of</strong>the DOD's coreand supportprocessesUpdating theWhite Paper on<strong>Defence</strong> and the<strong>Defence</strong> ReviewStreamlining <strong>of</strong>multilateral andbilateral agreements,as wellas activities insupport <strong>of</strong> the<strong>Department</strong> <strong>of</strong>Foreign AffairsImprove theDOD's strategicmanagementcapacityDOD humanresources planningOrganisational developmentand restructuring<strong>of</strong> the DOD throughProject LOQUACIOUS.To establish businessprocess managementin the DOD as the mostappropriate managementphilosophy toalign core and supportprocesses with PFMAimperativesFinalise the update <strong>of</strong>the White Paper on<strong>Defence</strong> and the<strong>Defence</strong> ReviewReprioritisations in linewith IRPS ClusterguidelinesCapacity building andcompetency enhancement<strong>of</strong> relevant roleplayersContinuation <strong>of</strong> benchmarkingwith best practiceand adjust theapproach whererequiredEnhance PERSOLthrough ProjectLEGADIMAEffective, efficient andaffordable structurethrough the utilisation <strong>of</strong>shared staffs.Business processes arealigned to the organisation'sstrategic and policyframework which willlead to the continuousperformance improvement<strong>of</strong> the organisationBetter alignmentbetween Governmentexpectations andresources allocationwhich will lead to realisticstrategic planningwithin the DODMaximum benefit for thecountry through properservicing <strong>of</strong> bilateral andmultilateral agreementsSavings will be effectedImproved planning andmanagement expertise,as well as betterreportingAn information systemthat enables planningTo befinalised andimplementedin theFY<strong>2006</strong>/<strong>07</strong>Still inprocess but tobe finalisedand implementedduringtheFY<strong>2006</strong>/<strong>07</strong>Ensuringalignmentwith stakeholdersStrategicmanagementlearningopportunityplanned forMay <strong>2006</strong>InitiatedAn integrated EnterpriseArchitecture Solution toolset andrepository have been acquired toassist with the designing, executingand optimisation <strong>of</strong> enterprise-widebusiness operations, which will beoperational from September 20<strong>07</strong>.The Credible Force Design wascompleted and approved by thePDSC and the MOD. Similarly, the<strong>Defence</strong> Update 20<strong>07</strong> enjoyed thesupport <strong>of</strong> the MOD, and the clustersand the National SecurityCouncil were engaged and supportedthe document with certainamendments.Once the amendments have beencompleted, the MOD can engagethe Cabinet and Parliament in thedocument.Participated in DFA-led bilateralengagements and operationalisedexisting and new internationalagreements through the holding <strong>of</strong><strong>Defence</strong> Committees.All international agreements arealigned with domestic law throughthe <strong>Department</strong> <strong>of</strong> Justice and withinternational law with the<strong>Department</strong> <strong>of</strong> Foreign Affairs.The Senior Executive Course in<strong>Defence</strong> & Security Managementwas presented at Wits Universityfrom 9-12 Oct 06 and 15-19 Jan<strong>07</strong>. The purpose was to deepenunderstanding <strong>of</strong> the issues associatedwith governance, policy frameworksand management <strong>of</strong> defencein South Africa.Accurate Human Resource budgetin support <strong>of</strong> the HR Plans andbusiness plans <strong>of</strong> the services anddivisions.programme 122DEPARTMENT OF DEFENCE
SUBPROGRAMME FINANCIALSERVICESOVERVIEWThe Financial Services has entered the third phase <strong>of</strong> along-term strategy to improve the financial management<strong>of</strong> the <strong>Department</strong> substantially. The FinancialManagement Division was re-engineered for cost-effectiveservice delivery as a first phase and the public financeregulatory framework implemented in the Division withinthe constraints <strong>of</strong> the existing old information systemsas a second phase.The old information system poses serious challenges incomplying with National Treasury's ongoing reportingand accountability initiatives. During the period underreview the division participated in the IntegratedFinancial Management System (IFMS) project and inputsgiven have been beneficial in specifying requirements.The current phase consists <strong>of</strong> broadening the scope <strong>of</strong>implementation <strong>of</strong> the public financial managementframework to other functions affected by public financialmanagement such as personnel, matériel and informationmanagement. The initiatives include ensuring promulgation<strong>of</strong> legally enforceable instructions, implementing anintegrated financial management information systemsupporting generally recognised accounting practices andrelated standards, building <strong>of</strong> departmental capacity andreinforcing accountability arrangements.As part <strong>of</strong> the division's public information and awarenesscampaign, the division has developed a trainingmodule focussing on section 45 <strong>of</strong> the PFMA, 1999. Thismodule has been incorporated in DOD courses.During the period under review, the DOD has implementeda project aimed at cleaning the audit report.Notwithstanding the short to medium-term gains thatmay be realised from this project, the serious challengethat the <strong>Department</strong> faces in achieving its goals, is thedependency <strong>of</strong> this project on the IFMS, the roll-out <strong>of</strong>which is scheduled for 2010. As a result, the DOD will notbe able to achieve unqualified financial statements, unlessNational Treasury authorises exemptions.The division successfully provided financial managementservices to its clients according to the strategic businessplan and related service agreements.MEASURABLE OBJECTIVETo provide a cost-effective financial management serviceto the Minister <strong>of</strong> <strong>Defence</strong>, Secretary for <strong>Defence</strong> and theChief <strong>of</strong> the SANDF within the evolving regulatory frameworkby means <strong>of</strong> a pr<strong>of</strong>essional, representative civilianfinancial management corps and appropriate financialmanagement system.OUTPUT DETAILDetails <strong>of</strong> Financial Services output are reflected in Table2.8.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 23
Table 2.8: Financial Services Output Details for the FY<strong>2006</strong>/<strong>07</strong>Output Performance Measure TargetActual Achievement<strong>Defence</strong> AdministrationBudget management(Service tothe DOD asdirected bythe ChiefFinancialOfficer)Financialaccounting(Service tothe DOD asdirected bythe ChiefFinancialOfficer)Financial controland support(FinancialControl andService to theDOD asdirected bythe ChiefFinancialOfficer)Cost-effective servicedelivery compliancewith regularityframework; sound<strong>Defence</strong> financialdecisions; unqualifiedaudit reportsA budget managementserviceto the <strong>Department</strong>according to thecurrent regulatoryframework andprogramme/budgetstructureA financialaccounting serviceto the<strong>Department</strong>according to thecurrent regulatoryframework andprogramme/budgetstructureA financial controland support serviceto the<strong>Department</strong>according to thecurrent regulatoryframework andprogramme/budgetstructureService delivery by Budget Management Offices according toservice agreements with clients and within budget constraints.Unqualified audit report for Budget Management Services.Budget fully expended by 31 March 20<strong>07</strong>.Other outputs achieved through the corporate DOD budgetpreparation service were the issuing <strong>of</strong> DOD budget guidelinesby 1 October <strong>2006</strong>, the Affordable Estimate <strong>of</strong> Expenditure byJune <strong>2006</strong>, the Approved Special <strong>Defence</strong> Account by 1 April<strong>2006</strong> and the Estimate <strong>of</strong> National Expenditure by January <strong>2006</strong>.Other outputs achieved through the corporate DOD budget controlservice were the <strong>Defence</strong> in-year programme adjustmentsbudget by 1 November <strong>2006</strong>, Monthly Early Warning <strong>Report</strong>s,Virements as required and funded unfunded mandates as directedby section 64 <strong>of</strong> the PFMA,1999.Regulatory framework largely complied with; audit report qualifiediro travel and subsistence - corrective measures implemented.99% <strong>of</strong> clients were paid accurately. A payment record <strong>of</strong>85% is maintained from delivery date to payment date. Servicedelivery by FASCs and FASOs according to service agreementswith clients.Outputs achieved through the corporate financial asset andannual reporting service were all collectable debt collected,Irrecoverable debts written <strong>of</strong>f, accurate cash-flow projections,managed DOD bank account, accurate books <strong>of</strong> account andannual financial statements.Outputs achieved through stores, services and related serviceswere revenue collected and accounted for, cash service renderedto clients as specified, State monies safeguarded and correctlyaccounted for.Outputs achieved through the personnel remuneration servicewere timely and accurate creditor, personnel and personnel-relatedpayments.Effective and efficient Financial Management System supportservice provided. A total <strong>of</strong> 883 FMD <strong>of</strong>ficials administered effectively,with a total <strong>of</strong> 353 FMD <strong>of</strong>ficials trained with a 93% passrate. Corporate systems <strong>of</strong> risk management, loss administrationand audit report management in place.Outputs achieved through the PFMA compliance service were:Audit Steering Committee meetings held as required.Secretariat services provided as per Accountability ManagementCommittee (AMC) constitution. Revised financial managementdelegations as required. Monthly loss /improper expenditurereports provided to AMC and annually in the financial statements.Claims against the State reported where required. Legalrepresentation submissions to Accounting Officer and ChiefFinancial Officer provided as required.chapter 2programme 124DEPARTMENT OF DEFENCE
PERFORMANCE AND SERVICE DELIVERY IMPROVEMENTDetails <strong>of</strong> performance and service delivery improvement reflected in Table 2. 9Table 2.9: Financial Services Performance and Services Delivery for the FY<strong>2006</strong>/<strong>07</strong>ActivitiesPlanned ManagementInterventionAnticipated BenefitStatusActual AchievementImplement PFMA /TreasuryRegulations / practicenotes throughenforceableDODDs/DODIs/JDPs.Provision <strong>of</strong> abudget managementservice toobtain and executean appropriatemedium-term<strong>Defence</strong> budget.Provision <strong>of</strong> a financialaccountingservice to execute,account for andreport on financialtransactions.To provide for theinterim and finalimplementation <strong>of</strong>the PFMA/ TreasuryRegulations / practicenotes.The provision <strong>of</strong> acorporate budgetpreparation service.The provision <strong>of</strong> acorporate budgetexecution service.To provide a corporatefinancial assetsand annual reportingservice.To provide a stores,services and relatedpayment service.Unqualified financialstatementsCompliance with NewEconomic <strong>Report</strong>ingFormat.Compliance with GRAPand AccountingStandards as prescribedby National Treasury.Improved budget controlsubsystem on FMS.Improved debtor managementoutputs wrtmedical debtors.Effective, efficient andeconomical management<strong>of</strong> State monies.Utilise existingcapabilitiesand budgetUse existingcapacity andbudget.Use existingcapacity andbudget.OngoingOngoingOngoingThe initiatives include ensuringpromulgation <strong>of</strong> legally enforceableinstructions, implementing an integratedfinancial management informationsystem supporting generallyrecognised accounting practices andrelated standards, building <strong>of</strong> departmentalcapacity and reinforcingaccountability arrangements.Implementation ongoing as planned.Conversion tables completed, testedand implemented. Complianceachieved.Budget Submission complies withNational Treasury guidelines.In anticipation <strong>of</strong> the IFMS, the DODFinancial Management System isbeing enhanced to improve thereporting process to the satisfaction<strong>of</strong> National Treasury.The medical debtor system has beenimplemented. Health Informaticstransfer <strong>of</strong> electronic informationdoes not cover all informationaspects and is under development.Safes. The specification <strong>of</strong> the newgeneration safes, destined to replaceexisting equipment at all cash<strong>of</strong>fices, are nearing completion. Therequest for procurement will be submittedas soon as the specificationsare finalised.Cash Offices. The original plan tosecure cash <strong>of</strong>fices individually(according to the dimensions/constraints<strong>of</strong> the buildings/facilitieswhere such <strong>of</strong>fices are currentlyhoused) was replaced with the procurement<strong>of</strong> modular cashier unitsthat are more cost-effective andtransportable. The acquisition <strong>of</strong> theunits is in process.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 25
<strong>Defence</strong> Administrationchapter 2programme 126SUBPROGRAMME ACQUISITIONSERVICESOVERVIEWThe mandate <strong>of</strong> the Acquisition and ProcurementDivision, which is referred to as '<strong>Defence</strong> MatérielDivision', is to acquire both defence and commercialmatériel and services for the DOD. <strong>Defence</strong> matériel andservices are acquired through Armscor as prescribed bythe Armscor Act, 2003 (Act No 51 <strong>of</strong> 2003), DOD policiesand procedures. The DOD also acquires commercialmatériel and services in compliance with the PublicFinance Management Act, 1999 (Act No 1 <strong>of</strong> 1999),Treasury Regulations and DOD policies and procedures.The <strong>Defence</strong> Matériel Division is committed to satisfy theday-to-day requirements <strong>of</strong> the DOD. General <strong>Defence</strong>Account (GDA) funds are spent according to corporatepriorities to ensure cost-effective solutions to requirements.During the period under review, a number <strong>of</strong> importantvisitors were hosted by the Chief Matériel, which has ledto concrete arrangements that culminated in the DODleading South African <strong>Defence</strong> Industry (SADRI) to Chinaand Algeria to explore possible partnerships and businessdeals in general.From a DOD procurement perspective, the division pridesitself on having made some in roads in so far as in - serviceprocurement, improved turnaround times at the twoprocurement centres, increased utilisation <strong>of</strong> the publicprivate partnership within the various arms <strong>of</strong> services aswell as 93,3% authorisations <strong>of</strong> applications for outscourcingthrough Alternative Service Delivery.In-service Procurement. The Mirage F1 package was successfullysold and a 5-year purchase contract was signed.The first two aircraft have been delivered to Gabon, subjectto the MOU. The first payment and second paymenthave been received.Procurement Centres. There are two corporate procurementservice centres; the Central Procurement ServiceCentre (CPSC) in Thaba Tshwane and the Simon's TownProcurement Service Centre (SPSC) in Simon's Town.Together these two procurement service centres areresponsible for all corporate procurement in the DOD. AtCPSC, eleven members were staffed during the reportingyear, which alleviated some <strong>of</strong> the challenges faced by aseverely understaffed procurement centre that handledmore than 3 000 orders totalling more than Rb1,4 for thefinancial year.At SPSC more than 11 000 orders were processed totallingmore than RM 467 for the financial year. The Office <strong>of</strong> theAuditor General, as well as the <strong>of</strong>fice <strong>of</strong> IG DOD, carriedout four audits on SPSC and the reports received werefavourable, with no major audit queries reported.DEPARTMENT OF DEFENCEPublic Private Partnership (PPP). During the periodunder review, four (4) public private partnerships wereconsidered. These PPP's include the SA Navy 's Sea Safetytraining which is in its feasibility phase, the co-use <strong>of</strong> theprivate hospitals with the SANDF through SAMHSwhose feasibility study has been approved and the PPP isto be completed, the co-use <strong>of</strong> the Ysterplats Air ForceBase as well as the PPP on the fleet management systemwhich is also in its advanced stages.Public Public Partnership. A Public Public Partnershipwith Armscor for the transfer <strong>of</strong> the Naval Dockyard hasbeen finalised and the handing over will take place inSeptember 20<strong>07</strong>.Alternative Service Delivery (ASD). With regard to conventionaloutsourcing where the DOD will no longerdeliver the service, but an approved service provider willexecute the service, 30 requests for outsourcing werereceived and 28 approved.From the acquisition perspective, division achieved thefollowing milestones:● Delivery <strong>of</strong> eleven fully certified A109 light utilityhelicopters to the SA Air Force.● Production on all four maritime helicopters hasbeen completed and all aircraft are currentlybeing utilised as part <strong>of</strong> the training schedule inthe UK, with delivery to South Africa scheduledfor July 20<strong>07</strong>.● Delivery <strong>of</strong> the first Gripen aircraft to the TestFlight and Development Centre at AFB Overbergto enable SAAB to continue the remaining portion<strong>of</strong> the Development Test and Evaluation Phase inSouth Africa as part <strong>of</strong> its contracted DIP obligation.● Delivery <strong>of</strong> the first production Hawk aircraft to85 Combat Flying School at Air Force BaseMakhado during the first quarter <strong>of</strong> the periodunder review. By year-end, a total <strong>of</strong> sixteenHAWK 120 lead-in fighter training aircraft were inoperation at the unit.● Achievement <strong>of</strong> contracted certification milestoneson the avionics suite and delivery <strong>of</strong> thefully qualified new engine.● Delivery <strong>of</strong> the seventh C130 aircraft to 28Squadron took place during the year underreview.● Arrival <strong>of</strong> the first submarine, SAS 'MAN-THATISI, in Simon's Town on 7 April <strong>2006</strong> andacceptance <strong>of</strong> the second submarine in Germanyduring March 20<strong>07</strong>.● Handing over <strong>of</strong> the frigate SAS ISANDLWANAto the SA Navy and its commissioning on 27September <strong>2006</strong> in Durban as well as the handingover <strong>of</strong> the SAS MENDI in Port Elizabeth during
●●●●●●●February 20<strong>07</strong>.A successful surface-to-air missile salvo firingtook place on 17 August <strong>2006</strong>, leading to theachievement <strong>of</strong> the final performance acceptancemilestone for the UMKHONTO missile system.The successful roll out <strong>of</strong> the electrically driven(ROOIKAT) technology demonstrator vehicle wassuccessfully rolled out at GEROTEK on 21 June<strong>2006</strong>.Six projects completed their commissioning duringthis period, namely the Mamba vehicle system,SS77 Machine-gun system, 40mm automaticgrenade launcher system, Hornet vehicle systemfor Special Forces, Gecko vehicle system for 44Parachute Regiment and the 5-axle tank transportersystem.The handing-over ceremony <strong>of</strong> the first squadron<strong>of</strong> Olifant Mk2 Tanks was held in February 20<strong>07</strong> atthe School <strong>of</strong> Armour, with full commissioning tobe completed over the next 12 monthsFinalisation <strong>of</strong> the full systems architecture developmentfor tactical telecommunication capabilities<strong>of</strong> the SANDF. Ten prototype radios weredelivered and surpassed expectations in the firstfield trials. With only minor changes required tothe presented technical baseline, production willprobably commence in the next financial year.The request for proposals to acquire a certifiableand fully integrated tactical brigade-level commandand control capability was issued, with formalproposals and technical demonstrations t<strong>of</strong>ollow during the first quarter <strong>of</strong> the FY20<strong>07</strong>/08.The design <strong>of</strong> a biochemical defence system forboth urban and conventional employment progressedwell during the year, with the project ontrack to meet operational requirements set to supportrequirements during the 2010 World Cup.Ground-based Air <strong>Defence</strong> System (GBADS). The factoryacceptance test for the Air <strong>Defence</strong> Control (ADC)s<strong>of</strong>tware at Reutech Radar Systems (RRS) was successfullycompleted. The ADC functionality achieved was <strong>of</strong> ahigh standard. Denel tabled a short-term managementschedule for the completion <strong>of</strong> the Local Warning Sectioncritical design review, which is an indication that tighterschedule control is being implemented to recover lost performanceafter a period <strong>of</strong> persisting late deliveries. TheModelling and Simulation Phase under the auspices <strong>of</strong>contracted acquisition decision support has been concluded.Excellent results were achieved by the experiment in'Determining the Contribution and Effectiveness <strong>of</strong> thevarious Mobile Air <strong>Defence</strong> System combat troops againstDefined Threats'.which are indicated below.A lack <strong>of</strong> competent human resources allocated to the<strong>Defence</strong> Matériel Division and Armscor to execute holisticacquisition management exists, while scarcity <strong>of</strong> humancapital and manufacturing capacity in the local industryas well as foreign contractors lead to consistent delays incontract performance.The delay in the establishment <strong>of</strong> the <strong>Defence</strong> MatérielDivision, the lack <strong>of</strong> structure and capacity impacts negativelyon the division's ability to address policy, strategyand emergent tasks emanating from DEFCOMs, marketingsupport requests and assigned interdepartmental liaisontasks.Problems identified in the tender process <strong>of</strong> new logisticvehicles for the SANDF have halted the planned acquisitionprocess. Special audits were conducted to quantifythe perceived deviations, while legal opinion also had tobe sought to inform the Secretary for <strong>Defence</strong> on possiblerecourse to be sought by the participating industry. Toensure that the tender process can continue as soon as theidentified anomalies have been addressed, the validity <strong>of</strong>tenders has been extended repeatedly, with the final dateextended to 30 April 20<strong>07</strong>.Ground-based Air <strong>Defence</strong> System (GBADS). Non-performanceby the main contractor remains a serious problemthat has led to a delay <strong>of</strong> some three years in contractualdeliveries and a major deviation from planned cashflow thus resulted.Procurement Centres. At Simon's Town ProcurementService Centre (SPSC) delays in getting suppliers timeouslyallocated with codes via the DOD Logistic AgencyCodification remains problematic. The effect is unintendeddelays in payments and placing <strong>of</strong> urgent orders incompliance with the regulatory framework. The rotationaldatabase <strong>of</strong> suppliers at the SPSC needs to be correctlypopulated with only accredited suppliers so as to providejust in time and fit for purpose service to the end users.Alternative Service Delivery. No formal Public PrivatePartnerships (PPPs) have yet been concluded in the DOD,however various projects are registered with NationalTreasury and the DOD for possible PPPs.MEASURABLE OBJECTIVETo manage the DOD acquisition and procurementprocesses and policies.OUTPUT DETAILDetails <strong>of</strong> Acquisition Services' outputs are reflected inTable 2.10.Notwithstanding the achievements made during the periodunder review, the division faced some challenges,ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 27
Table 2.10: Output Details <strong>of</strong> Acquisition Services for the FY<strong>2006</strong>/<strong>07</strong>Output Performance Measure TargetActual AchievementArmamentrequirementsaccording t<strong>of</strong>orce designShortened turnaroundtime <strong>of</strong>armaments andequipments acquisitionfor services anddivisions that willmeet users' specificationsImprove supplychain systemsand filling <strong>of</strong>vacanciesCorporate Budget Allocation. An amount <strong>of</strong> Rm42,09 wasallocated to the <strong>Defence</strong> Matériel Division (Def Mat Div).Although an amount <strong>of</strong> Rm41,09 was paid by the end <strong>of</strong> thefinancial year, the implementation <strong>of</strong> the Def Mat Div could notbe initiated due to a significant shortfall on the allocated personnelbudget. Staffing <strong>of</strong> proposed structures will only commenceonce ministerial authority has been obtained and an appropriatebudget allocation has been made to realise the Minister's intent.Roll-out <strong>of</strong> the electronic procurement system (E proqure)through 31 sites. 11 post staffed at CPSC and 2 post staffed asSPSC.Special <strong>Defence</strong> Account. Under the global Special <strong>Defence</strong>Account (Vote 21 <strong>of</strong> <strong>2006</strong> allocation plus roll-over funds), anamount <strong>of</strong> Rb7,882 was allocated to address Strategic <strong>Defence</strong>Package (SDP) programme obligations, while an amount <strong>of</strong>Rb3,119 was allocated to the Def Mat Div for the authorisedacquisition <strong>of</strong> other Category 1 matériel requirements. Of theauthorised SDP allocation, an amount <strong>of</strong> Rb2,1 was not paid,inclusive <strong>of</strong> a rate <strong>of</strong> exchange contingency amounting to Rm945under National Treasury control.PERFORMANCE AND SERVICE DELIVERY IMPROVEMENTDetails <strong>of</strong> the performance and service delivery improvement are reflected in Table 2.11.Table 2.11: Performance and Service Delivery Improvement for the FY<strong>2006</strong>/<strong>07</strong>ActivitiesPlanned ManagementInterventionAnticipatedBenefitStatusActual AchievementComments<strong>Defence</strong> Administrationchapter 2programme 128Full installation <strong>of</strong>modern electronicbasedbidding/pricequotation system atall ProcurementService Centres andGSBs within the DODImprove the processfor authorisation <strong>of</strong>projects inAcquisitionsSUBPROGRAMME INSPECTIONSERVICESOVERVIEWImprove structureRoll-out E-Proqurewithin the DODAlready commencedin 2004,but must be fullyimplemented byDec <strong>2006</strong>Control <strong>of</strong> achievement<strong>of</strong> time andcost goals on allprojectsImprove servicedelivery toclientsReductions intransactionsTransparent andshared systemMaximised operationalcapabilitieswith extendedtechnologicallife available todefenceThe mission <strong>of</strong> the Internal Audit Division (<strong>Defence</strong>Inspectorate Division) is to provide independent, objectiveassurance and a consulting service designed to addvalue and improve the organisation's operations. It assistsDEPARTMENT OF DEFENCEEnd <strong>of</strong>December<strong>2006</strong>End <strong>of</strong> March20<strong>07</strong>End <strong>of</strong>December<strong>2006</strong>100% roll-outby 31December<strong>2006</strong>System Administratorstructure is in theprocess <strong>of</strong> design andwill be registered atDIMS in near futureAll units have been successfullyrolled outAdditional funds wereobtained through theDPBEC <strong>of</strong> Nov for rollout<strong>of</strong> the last two sitesRefer to feedback givenon Chapter 12 Special<strong>Defence</strong> Account (Par15).Target dateDecember 20<strong>07</strong>Last two sitescompletedMarch 20<strong>07</strong>the DOD accomplish its objectives by bringing a systematic,disciplined approach to evaluate and improve theeffectiveness <strong>of</strong> risk management, control and governanceprocesses.Independence and Functional Control. The internal auditactivity must be free from interference in determining thescope <strong>of</strong> internal auditing, work performance and communicationresults to provide for the independence <strong>of</strong> the
DOD and its personnel report functionally to the ChiefAudit Executive (CAE), who is also the Inspector General<strong>of</strong> the <strong>Department</strong> <strong>of</strong> <strong>Defence</strong> (IG DOD). The ServicesInspectors General are functionally under control <strong>of</strong> theCAE/IG DOD, but they are under administrative control<strong>of</strong> their respective Service Chiefs.The <strong>Defence</strong> Inspectorate draws its mandate to conductits functions from the following regulatory frameworks:●●Inspections - <strong>Defence</strong> Act, 2002 (Act No 42 <strong>of</strong>2002), as amended.Internal Audit - PFMA, 1999 (Act No 1 <strong>of</strong> 1999), asamended, and National Treasury Regulations.● Anti-corruption and Anti-fraud Services -Prevention and Combating <strong>of</strong> Corrupt ActivitiesAct, 2004 (Act No 12 <strong>of</strong> 2004), the PFMA and theTreasury Regulations.The purpose <strong>of</strong> the inspection function is to provide the CSANDF with verified and veracious information andadvice regarding combat and mission readiness <strong>of</strong> theSANDF and the attainment <strong>of</strong> strategic military objectives.The purpose <strong>of</strong> the Internal Audit activities is to provideindependent, objective assurance and a consulting servicedesigned to add value and improve the organisation'soperations. It helps the DOD accomplish its objectives bybringing a systematic disciplined approach to evaluateand improve the effectiveness <strong>of</strong> risk management controland the governance process.The purpose <strong>of</strong> the Anti-corruption and Anti-fraudServices is to assist budget holders, including management,to prevent corruption and fraud in the DOD.Significant AchievementsThe establishment <strong>of</strong> the SADC <strong>Defence</strong> InspectorsGeneral arm <strong>of</strong> the Association <strong>of</strong> <strong>Defence</strong> AuditorsConference (ADAC) was a significant step in the DOD'sinvolvement in the SADC Organ and the Interstate<strong>Defence</strong> and Security Committee (ISDSC). The <strong>Defence</strong>Inspectorate Division hosted the consultative conferencefrom 3 to 7 July 20<strong>07</strong> in Pretoria.AUDIT COMMITTEEThe Audit Committee provided guidance in theFY<strong>2006</strong>/<strong>07</strong> to the Internal Audit Division. Amongst manyissues, it included the identification <strong>of</strong> shortcomings inthe Internal Audit Plan and the lack <strong>of</strong> expertise by internalauditors. The audit plan, the Auditor-General's auditreport and the quarterly reports revealed that financialstatements were not addressed adequately, which wasascribed to the lack <strong>of</strong> expertise. The external members <strong>of</strong>the Audit Committee made their services available toassist the DOD in identifying suitable candidates thatcould assist the DOD in bridging the gap. The AuditCommittee also approached the Secretary for <strong>Defence</strong> toprovide assistance to the Chief Audit Executive inempowering the internal audit function in the DOD. The<strong>Defence</strong> Inspectorate Division provided the secretarialservices for the Audit Committee.Composition <strong>of</strong> the Audit Committee. During the yearunder review, the Audit Committee for the <strong>Department</strong> <strong>of</strong><strong>Defence</strong> (DOD AC) was duly constituted according to thesection 77 <strong>of</strong> the PFMA, 1999. The external members tothe DOD were as follows with their appointment datesindicated in brackets: Dr D. Konar (Chairperson) (27 May2005), Mr D.S. Molapo (27 May 2005), Mr K.A. Ross (27May 2005) and Mr G.R. Witthöft (7 June 2005). The internalrepresentatives were Lieutenant General J.L. Jansenvan Rensburg (DOD: Chief <strong>of</strong> Corporate Staff) (1February <strong>2006</strong>), Mr T.E. Motumi (DOD: Chief Policy andPlanning) (7 February <strong>2006</strong>). The ex <strong>of</strong>ficio members fromthe <strong>Department</strong> <strong>of</strong> <strong>Defence</strong> were Mr J.B. Masilela(Secretary for <strong>Defence</strong>), Chief Financial Officer MrGrundling, later Ms D Mutloane and Major General M.E.Petane (IGDOD). The invitees were the Auditor Generaland the National Treasury.Responsibilities. The Audit Committee complied withits responsibilities arising from Section 38(1)(a) <strong>of</strong> thePFMA and Treasury Regulation 3.1.13. Four scheduledand two special meetings were held. Special in-committeemeetings were held between the Audit Committeemembers. Activities <strong>of</strong> the Audit Committee were formalisedinto a plan, allowing the coverage <strong>of</strong> the totalspectrum <strong>of</strong> risk areas that needed to be assessed andmonitored, in accordance with the PFMA and NationalTreasury Regulations dated March 2005. The Terms <strong>of</strong>Reference, which guide the activities <strong>of</strong> the DOD's AuditCommittee, were reviewed by the Audit Committee duringthe FY<strong>2006</strong>/<strong>07</strong> and approved by the AccountingOfficer. The external and internal members, ex-<strong>of</strong>ficio<strong>of</strong>ficers, the Auditor-General, Chief Audit Executive andthe Accounting Officer formally assessed the DOD AuditCommittee.Activities. Audit Committee members had an opportunityin <strong>2006</strong>/<strong>07</strong> to be exposed to the DOD's units through aphysical visit and also accompanied audit team membersin conducting audits. The Audit Committee had directaccess to the Auditor-General, the Secretary for <strong>Defence</strong>and the Chief <strong>of</strong> the SANDF.MEASURABLE OBJECTIVETo ensure the validity and veracity <strong>of</strong> the managementinformation <strong>of</strong> the DOD.OUTPUT DETAILDetails <strong>of</strong> the outputs <strong>of</strong> Inspection Services are reflectedin Table 2.12ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 29
Table 2.12: Output Details <strong>of</strong> Inspection Services for the FY<strong>2006</strong>/<strong>07</strong>Output Performance Measure TargetActual AchievementInternal audit(Performanceand regulatory)and anti-fraudservices tominimise corruptionIncreased relianceon the informationsystem in the DODIncreased reportingon fraud and corruptionin the DODAlign audit schedulewith that <strong>of</strong> theAuditor GeneralIncrease awarenesscampaignAdministration to train our members in financial statementauditing has commenced and the training will commence inthe 1st quarter <strong>of</strong> the FY20<strong>07</strong>/08. Funds had to be madeavailable to outsource the training, as the expertise is notavailable in the DOD.Members will do in-service training.Plans are in place to ensure that the auditors <strong>of</strong> the <strong>Defence</strong>Inspectorate Division are able to audit FSEs before members<strong>of</strong> the AG arrive. Our audit landscape has been aligned withthat <strong>of</strong> the AG. .Nine regional workshops were held in which more than14 749 members <strong>of</strong> the DOD participated. These workshopsculminated in a <strong>Department</strong>al Fraud Conference held inPretoria in which more than 152 senior members <strong>of</strong> the DODparticipated in committees to help identify ways and means <strong>of</strong>combating corruption and fraud.PERFORMANCE AND SERVICE DELIVERY IMPROVEMENTDetails <strong>of</strong> the performance and service delivery improvements <strong>of</strong> the Inspection Services are reflected in Table 2.13.Table 2.13: Performance and Service Delivery Improvement for the FY<strong>2006</strong>/<strong>07</strong>Activities Planned Management Intervention AnticipatedBenefitStatusActualAchievementComments<strong>Defence</strong> Administrationchapter 2programme 130Audit/Inspection<strong>Report</strong>ing toCorporateManagementSUBPROGRAMME EQUALOPPORTUNITIES AND AFFIRMA-TIVE ACTION (EO AND AA)OVERVIEWThe quality <strong>of</strong> service delivery bythe directorates has been maintainedand the fact verified by theDecember <strong>2006</strong> external assessment.Continuous improvement andupdating <strong>of</strong> the quality manualimproved the quality <strong>of</strong> servicedelivery.Implementation <strong>of</strong> TeamMate, whichis automated reporting s<strong>of</strong>tware, willallow for a superior audit reportingand the analysis <strong>of</strong> audit findings todetermine and report on trends.During the period under review, the former EqualOpportunity Chief Directorate (EOCD) was incorporatedinto the HR Division and renamed the TransformationManagement Chief Directorate (TMCD) . This move hasresulted in equity issues being mainstreamed into all HRplanning processes and procedures. As a result equityissues are no longer on the periphery. However, thedesired end state is to have this issue incorporated as one<strong>of</strong> the key areas <strong>of</strong> perfomance in the PAS <strong>of</strong> SMS mem-DEPARTMENT OF DEFENCEA more streamlinedauditprocess andeffective customerfeedbackVerified and validatedinformationto CorporateManagementOngoingOngoing100%80%Full implementation<strong>of</strong> theaudit system isproving to be achallenge.bers from level 12-16. Furthermore, the pupose <strong>of</strong> the newChief Directorate was also reviewed and it now seeks toaddress the following:● Providing strategic direction and support to theDOD so that the promotion <strong>of</strong> human rights principlesbecome an integral part <strong>of</strong> mission readinessand thereby contribute to the building <strong>of</strong> anew DOD identity.● Providing strategic direction and support to theDOD in order to develop exemplary leadership,which would bring the best from subordinatesand portray the DOD as a caring and people-centredorganisation.● Providing strategic direction and support to the
●DOD so that the rights <strong>of</strong> members and those populationswhere the DOD serves are protected duringinternal and external deployments.Providing strategic direction and support to theDOD in order to promote equityIn pursuit <strong>of</strong> the monitoring and enhancement <strong>of</strong> theimplementation <strong>of</strong> affirmative action and employmentequity within the DOD, the chief directorate issued guidelinesto services and divisions, stipulating that the trainingand development <strong>of</strong> members from the designatedgroups should be accelerated and linked with their careerpathing. A review <strong>of</strong> the HR2010 Strategy was also conductedand it resulted in equity issues being incorporatedas one <strong>of</strong> the components highlighted as a criterion for therejuvenation <strong>of</strong> the SANDF. Major General N.E. Motumiwas appointed as the Chief Director Equal Opportunitieswith effect from 1 April <strong>2006</strong>. This has led to variousachievements, <strong>of</strong> which the following can be highlighted:Mission Readiness Training. During the period underreview, EOCD increased its visibility at the MobilisationCentre by presenting human rights lectures consistentlyin order to ensure the promotion <strong>of</strong> human rights and therights <strong>of</strong> communities in which the DOD deploys.Gender Audit. A reliable database reflecting women'smilitary and academic qualifications is now available.2nd National Conference on Women in <strong>Defence</strong>. EOCDhosted the Second National Conference on Women in<strong>Defence</strong> at the Kopanong Hotel Conference Centre from24 to 26 May <strong>2006</strong>. The conference brought together 300representatives from the DOD, other security services,including the SAPS, Correctional Services andIntelligence Services, as well as experts on women securityissues from the Academia and Safer Africa to deliberateon 'The Status <strong>of</strong> Women in the Transformation <strong>of</strong> theSecurity Sector in South Africa'. The objectives <strong>of</strong> the conferencewere tw<strong>of</strong>old: firstly, to raise awareness <strong>of</strong> theimportance <strong>of</strong> involving women in all decision-makingstructures and processes and, secondly, to build consensuson how to redress the current gender imbalanceswithin the DOD and set realistic targets for the achievement<strong>of</strong> gender equity.The DOD <strong>2006</strong> Gender Mainstreaming Action Plan. Theoutcome <strong>of</strong> the above-mentioned conference resulted inthe formulation <strong>of</strong> a Gender Mainstreaming Action Plan,which was then presented on 5 June <strong>2006</strong> at the DSC,highlighting key activities directed towards the furtherance<strong>of</strong> this agenda. The Action Plan was endorsed by theCouncil with the understanding that the Equity Adviceposts will have to be extended to levels 3 and 4.Guidelines given by the Sec Def and the C SANDF werethat Services and Divisions would have to incorporate thisneed into their restructuring processes.SADC Women Peace Table. The EOCD also hosted thisseminar from 27 to 29 November <strong>2006</strong> in Tshwane. Tencountries participated and best practices were shared onthe promotion <strong>of</strong> gender equity in the regional armedforces.PURPOSEThe purpose <strong>of</strong> the Equal Opportunities and AffirmativeAction Chief Directorate was to provide an EO and AAadvice and monitoring function to the Secretary for<strong>Defence</strong>. With the incorporation <strong>of</strong> the Chief Directorateinto the HR Division, its purpose has subsequently beenredefined to address the process <strong>of</strong> institutionalising thehuman rights and equity imperatives through programmesand guidelines, thereby contributing towardsmission readiness <strong>of</strong> the organisation. This ChiefDirectorate also monitors the implementation <strong>of</strong> affirmativeaction and advises the Sec Def and the Chief <strong>of</strong> theSANDF on the human component <strong>of</strong> transformationissues.MEASURABLE OBJECTIVETo provide EO and AA advice and a monitoring functionto the Secretary for <strong>Defence</strong>.OUTPUT DETAILDetails <strong>of</strong> the EO and AA outputs are reflected in Table2.14.Table 2.14: Output Details <strong>of</strong> Equal Opportunities and Affirmative Action (EO and AA) forthe FY<strong>2006</strong>/<strong>07</strong>Output Performance Measure TargetActual AchievementRacial and genderrepresentedwork forcein the DODAchievement <strong>of</strong> representivityquotas asprescribed by the<strong>Department</strong> <strong>of</strong>Labour50% achievementSenior level byMarch 20<strong>07</strong>An improvement <strong>of</strong> 3,77% was achieved in terms <strong>of</strong> racerepresentivity figures <strong>of</strong> black members and 1,41% in terms<strong>of</strong> gender by the end <strong>of</strong> the financial year. As a result a total<strong>of</strong> 53,78% <strong>of</strong> blacks are now at Senior Management level.The set target has been reached in terms <strong>of</strong> race, but genderrepresentivity remains a serious challenge.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 31
PERFORMANCE AND SERVICE DELIVERY IMPROVEMENTDetails <strong>of</strong> performance and service delivery improvements reflected in Table 2.15.Table 2.15: EO and AA Performance and Service Delivery Improvement for the FY<strong>2006</strong>/<strong>07</strong>ActivitiesPlanned ManagementInterventionAnticipated BenefitStatusActualAchievementReasons forDeviationTimeous submission<strong>of</strong> equityreports annuallyto the<strong>Department</strong> <strong>of</strong>Labour.Implementation<strong>of</strong> AA StrategyGenderMainstreaming.Equity plan to form part <strong>of</strong>GEJIMA.Sensitise them about theDOD's peculiar environmentin terms <strong>of</strong> structureand core musterings.To bring to attention <strong>of</strong> theDOD leadership the deviationin the application <strong>of</strong>policies.To formulate and implementa gender strategy.Reliable data available inorder to recommendappropriate intervention.Enhanced understanding<strong>of</strong> the military institutions.Improved awareness andbuy-in.The full participation <strong>of</strong>women in decision-makingso that women'sneeds move from themargins to the centre <strong>of</strong>development, planningand resource allocation.Develop andtest HR Planformat.Change to suitthe DOD environmentOne-on-onediscussionsheld withService ChiefsFormulateStrategy<strong>Report</strong>submitted andaccepted bythe Dept.DOD representativeatmacro-levelDraft strategyformulated.Currentlybusy withtechnicalevaluation.Exit packagesnot attractiveenough<strong>Defence</strong> Administrationchapter 2SUBPROGRAMME CORPORATESTAFF DIVISIONOVERVIEWTThe Corporate Staff Division continued to provide asound centralised staff capability and service to Chief <strong>of</strong>the SANDF. The service includes, inter alia, strategicdirection, policy and strategic advice and support by theStrategy and Planning Office, <strong>Defence</strong> Legal ServiceDivision, Corporate Communication, <strong>Defence</strong> ForeignRelations, <strong>Defence</strong> Reserves and the Chaplain Service. Inaddition, control was exercised to ensure the provision <strong>of</strong>support services from the Command and ManagementInformation Services, Logistics Services and the ChiefMilitary Police to the Chief <strong>of</strong> the SANDF as contained inthe Joint Support Programme. 6The Division achieved its planned objectives and targetsdespite some legacy challenges that were experienced.These difficulties were mainly as a result <strong>of</strong> inadequatestructures, a lack <strong>of</strong> capacity and a loss <strong>of</strong> skills. Variouscorrective actions were also taken and strategies developedto address the challenges faced in the Joint SupportSubprogrammes, such as the DOD ammunition managementdeficiencies, the turnaround times with regard to themaintenance <strong>of</strong> D-vehicles, the slow pace in the finalisa-tion <strong>of</strong> restitution claims and the challenge to reduce effectivelythe backlog <strong>of</strong> facility maintenance.Notwithstanding these difficulties, the morale <strong>of</strong> the personnelremained high throughout and a high standard <strong>of</strong>discipline was maintained.Effective direction was provided to all the Corporate StaffSubdivisions located within the <strong>Defence</strong> AdministrationProgramme, to such an extent that the expectations <strong>of</strong> allthe Chiefs <strong>of</strong> the SANDF, including some new challenges,were met. Some <strong>of</strong> these challenges were capacity buildingin accordance with priorities in terms <strong>of</strong> theGovernment's Programme <strong>of</strong> Action, some cluster objectivesand military cooperation at the international level.The outputs <strong>of</strong> the Divisions were constantly exposed inthe international environment where the quality <strong>of</strong> itsactivities and inputs had a direct impact on the image <strong>of</strong>the DOD and SANDF. Refer to individual subdivisionalreports for subprogramme detail.SUBPROGRAMME CORPORATESTAFF OFFICEOUTPUT DETAILDetails <strong>of</strong> the outputs <strong>of</strong> the Corporate Staff Office areshown in Table 2.16.programme 1326These subprogrammes are reported in Chapter 9 under the Joint Support Programme.DEPARTMENT OF DEFENCE
Table 2.16: Outputs <strong>of</strong> the Corporate Staff Office for the FY<strong>2006</strong>/<strong>07</strong>Output Performance Measure TargetActual AchievementCorporateStaff capabilityand servicefor Chief <strong>of</strong>the SANDFThe degree to whichdirection provided to thecorporate staff divisionsensures that Chief <strong>of</strong>the SANDF's expectationsare metThe degree to which theCorporate Staff Divisionpolicy and strategicadvice meet the requirements<strong>of</strong> the Chief <strong>of</strong>the SANDFDirection providedensures thatexpectations <strong>of</strong> theChief <strong>of</strong> the SANDFare metRelevant andtimeous adviceAll the required outputs were achieved. Coordinationmeetings and one-on-one performance control sessionstook place as scheduled. All the SANDF corporate plans,reports and inputs were submitted as required by theChief <strong>of</strong> the SANDF. Presentations were made and questionsanswered that were raised by Parliament, theMinister <strong>of</strong> <strong>Defence</strong>, and the Secretary for <strong>Defence</strong>. Inaddition, staff coordination and control were executed toensure the provision <strong>of</strong> support services.All the requirements <strong>of</strong> the Chief <strong>of</strong> the SANDF in terms <strong>of</strong>policy and strategic advice within the various corporatestaff specialised fields were met. Notwithstandingprogress made with the rejuvenation <strong>of</strong> the ReserveForce, some challenges in this regard are beingaddressed. The operationalising <strong>of</strong> the 'Credible ForceDesign' as approved by the Minister <strong>of</strong> <strong>Defence</strong> receivesattention.SUBPROGRAMME STRATEGY ANDPLAN OFFICEOVERVIEWDuring the FY<strong>2006</strong>/<strong>07</strong>, Major General V.L. Sindane wasappointed Chief Director Strategy and Planning. TheStrategy and Planning Office successfully achieved itsobjective to provide a military, strategic and planningcapability, advice and services to the Chief <strong>of</strong> the SANDF.The refinement <strong>of</strong> the electronic planning tool underProject GEJIMA resulted in improved provision <strong>of</strong> performancemanagement information to the DOD commandcadre. The Strategy and Plan Office also played aleading role in the (<strong>Defence</strong> Update <strong>2006</strong>) Force Designdevelopment process.MEASURABLE OBJECTIVEThe Strategy and Plan Office is responsible for providinga military strategy and planning capability, advice andservices to the Chief <strong>of</strong> the SANDF.OUTPUT DETAILDetails <strong>of</strong> outputs <strong>of</strong> the Strategy and Plan Office areshown in Table 2.17.Table 2.17: Outputs <strong>of</strong> the Strategy and Plan Office for the FY<strong>2006</strong>/<strong>07</strong>Output Performance Measure TargetActual AchievementMilitary strategyand planningcapability,advice andservices forChief <strong>of</strong> theSANDFThe degree to which theobjectives and targets<strong>of</strong> the Chief DirectorStrategy and Planningare achievedThe effective functioning<strong>of</strong> an operational crisismanagement organisationand centreThe degree <strong>of</strong> accuracy<strong>of</strong> the minutes andmaintenance <strong>of</strong> a credibleDecision RegisterPlans and reports arecompleted as prescribedby the planning cycleand instructionsThe degree <strong>of</strong> validity,alignment with NationalSecurity Strategy andimplementation <strong>of</strong> theMilitary StrategyFully operationalised andfunctioningFull acceptance <strong>of</strong> all theminutes at meetings andthe availability <strong>of</strong> decisionstakenPlans and reports were completed as prescribed bythe planning cycle and instructions in full alignmentwith the Government's timeline. The electronic planningtool improved management <strong>of</strong> performanceinformation. Further development and refinement <strong>of</strong>the GEJIMA planning tool are in process.Fully achieved. The Military Strategy was updated.The mismatch in force design and force structure andthe recourse allocation severely hampers and complicatesinputs <strong>of</strong> the Strategy Planning Office into thestrategic planning process, which has as its mainproduct a logical force design and force structure.The Crisis Management Centre is in the process <strong>of</strong>being relocated to the Joint Operations and <strong>Defence</strong>Intelligence Divisions.All minutes were accepted and decisions are availablefor reference.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 33
PERFORMANCE AND SERVICE DELIVERY IMPROVEMENTDetails <strong>of</strong> performance and service delivery <strong>of</strong> the Strategy and Planning Office are shown in Table 2.18.Table 2.18: Performance and Service Delivery Improvement during the FY<strong>2006</strong>/<strong>07</strong>ActivitiesPlanned ManagementInterventionAnticipated BenefitStatusActual AchievementDesign anddevelopment <strong>of</strong>an electronicplanning toolProject GEJIMA; an electronictool to capture planningand reportingAlign planning and reportingand provide easier accessto management informationfor decision makingOngoingThe management electronictool was reprogrammed toallow for easier front-end userinputs. The reprogrammingwas completed<strong>Defence</strong> AdministrationSERVICES SCALED DOWN,SUSPENDED OR ABOLISHEDDURING THE FY<strong>2006</strong>/<strong>07</strong>The Crisis Management Centre is in the process <strong>of</strong> reassignmentto the Joint Operations and <strong>Defence</strong> IntelligenceDivisions.SUBPROGRAMME LEGALSERVICESOVERVIEWOn 3 October <strong>2006</strong> the Minister <strong>of</strong> <strong>Defence</strong> approved theestablishment <strong>of</strong> the <strong>Defence</strong> Legal Services Division. Thenewly established Division emanated from the integration<strong>of</strong> existing legal structures in the DOD. The Divisionachieved most <strong>of</strong> its objectives and targets as planned,despite various challenges. The <strong>Defence</strong> Legal ServiceDivision participated in the execution <strong>of</strong> 20 exercises andprovided optimal law support and legal advice to 24 operationsand 26 shorter deployments. A total <strong>of</strong> 14, mainlyReserves, were recruited as military law practitioners intothe regular component. Concerted efforts are constantlymade to recruit and staff experienced legal practitionersand support personnel and representative Reserve memberswith required legal experience in the regular component<strong>of</strong> the Division to ensure a high level <strong>of</strong> expertise toexecute the required service delivery outputs effectivelyand efficiently. In-service training and utilisation <strong>of</strong>Reserve Force members will continue to address theshortage <strong>of</strong> scarce skills within the <strong>Defence</strong> Legal ServiceDivision in the short to medium term.MEASURABLE OBJECTIVEThe <strong>Defence</strong> Legal Services provide pr<strong>of</strong>essional, legitimateand deployable defence legal services and supportcommensurate with the needs <strong>of</strong> the DOD.OUTPUT DETAILDetails <strong>of</strong> outputs <strong>of</strong> <strong>Defence</strong> Legal Services are shown inTable 2.19.chapter 2programme 134DEPARTMENT OF DEFENCE
Table 2.19: Outputs <strong>of</strong> <strong>Defence</strong> Legal Services for the FY<strong>2006</strong>/<strong>07</strong> 7Output Performance Measure TargetActual Achievement<strong>Defence</strong>Legal servicecapabilityand servicesThe quality and availability<strong>of</strong> the legalsupport provided tothe DOD. Thedegree to which militaryjustice inputshave been providedas prescribed in theMilitary DisciplineSupplementaryMeasures Act, 1999(Act No 16 <strong>of</strong> 1999),the <strong>Defence</strong> Act,2002 (Act 42 <strong>of</strong> 2002)and other applicablelegislation.Optimisation <strong>of</strong><strong>Defence</strong> LegalService's Head Officetogether with thelegal satellite <strong>of</strong>ficesCompleted litigationwithin the DODAll required inputs aredelivered on time andaccurately. 95% <strong>of</strong> thedefence legal service outputto the entire DOD, ielegal advice, completedlitigation, valid trials, prosecutiondecisions,deployed operational support,evaluated investigations,law personnel andCourts <strong>of</strong> Military Appealssittings are delivered ontime and accurately asprescribed.Seven directorates andfive legal satellite <strong>of</strong>ficesexecuted the requiredlegal services throughoutthe DOD95% <strong>of</strong> facilitated litigationmust result in optimumoutcome for the DODThe target was achieved as planned despite the lateassignment <strong>of</strong> Acting/Director Prosecution and otherStatutory directors within the <strong>Defence</strong> Legal ServiceDivision, as well as structural limitations in relation toservice rendering obligations that include the shortage<strong>of</strong> scarce skills (military law practitioners). Continuousliaison with Prosecution and <strong>Defence</strong> Counsel soonafter judgements assisted with the speedy finalisation <strong>of</strong>cases. Non-availability <strong>of</strong> interpreters due to no interpretors'posts available on the Division structure resultedin delays in finalising cases. A total <strong>of</strong> 23 part-timeinterpreters attended the interpreter's training coursethat was developed in June <strong>2006</strong>, thereby ensuring optimumservice delivery to the DOD. The <strong>Defence</strong> LegalService Division participated in the execution <strong>of</strong> 20operational exercises and provided optimal law supportand legal advice to 24 operations and 26 shorterdeployments. The <strong>Defence</strong> Legal Services DivisionReserve component was managed and utilised optimallywithin the allocated budget and guidelines. Theshortage <strong>of</strong> scarce skills (military law practitioners) andthe non-availability <strong>of</strong> members <strong>of</strong> courts <strong>of</strong> militaryappeal, as well as insufficiently trained interpreters areserious challenges.Seven directorates and five legal satellite <strong>of</strong>fices contributedto the achievement <strong>of</strong> the objectives <strong>of</strong> the<strong>Defence</strong> Legal Services Division as planned within theallocated budget, and 100% <strong>of</strong> the budget was spentduring the FY<strong>2006</strong>/<strong>07</strong>.The target was changed from 95% to 75% through theProject GEJIMA refinement process and the target ismanaged accordingly.SUBPROGRAMME RELIGIOUSSERVICESOVERVIEWThe Religious Services Division continued to support thestrategic objectives <strong>of</strong> the Government and the DOD duringthe FY<strong>2006</strong>/<strong>07</strong>. The focus <strong>of</strong> its ministry was on aholistic religious approach to all members and theirdependants. It concentrated on the moral regenerationand ethical conduct <strong>of</strong> the military community in support<strong>of</strong> the Moral Regeneration Movement programme <strong>of</strong> theGovernment. It maintained a healthy relationship withreligious bodies and faith groups in order to better supportall members <strong>of</strong> the DOD.These measures greatly enhanced the morale and conduct<strong>of</strong> all members <strong>of</strong> the DOD. The Division held a successfulMoral Regeneration Conference in Cape Town from 28January to 01 February 20<strong>07</strong>. Leaders from various religiousfaiths attended the conference, where the DeputyPresident, Ms Phumzile Mlambo-Ngcuka, delivered thekeynote address. For the first time in the history <strong>of</strong> SouthAfrica, leaders from various religious groups shared thesame podium to address moral and ethical issues.The Religious Services Division hosted two internationalevents. The Combating <strong>of</strong> HIV & AIDS through Spiritualand Ethical Conduct (CHATSEC) programme <strong>of</strong> theChaplain Service was extended to chaplains <strong>of</strong> the SADCcountries. A total <strong>of</strong> 20 chaplains from Botswana, Lesotho,the RSA, Zambia, Zimbabwe and Namibia attended acourse in Pretoria during May <strong>2006</strong>. These SADC chaplainswill now run the programme in their own defenceforces. Through these measures, the Chaplain Serviceplays an important role in limiting the spread <strong>of</strong>HIV/AIDS in Africa and promoting peace, security andstability within the region.The Inter-state <strong>Defence</strong> and Security Committee Spiritualand Moral Work Group met during February 20<strong>07</strong>. ThisDivision proudly supported our members on all deployments- internally and externally, where chaplains servedwith their units. In the wider African context, special7Performance measures and targets were adjusted after 3 October <strong>2006</strong> to meet the requirements <strong>of</strong> the new <strong>Defence</strong> LegalService Division.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 35
attention was given to the spiritual and moral support <strong>of</strong>the deployed members and their families. Seven chaplainswere deployed in peace support operations in theDRC, Burundi, the Comoros and the Sudan. These chaplainsinitiated various support programmes with localchurches and communities and built up good relationshipswith local pastors and community leaders.The Chaplain General Division has launched a majoreffort to revitalise the Reserve component <strong>of</strong> the ChaplainService. Four Reserve Chaplain workshops were held invarious regions. Reserve chaplains, as well as church andlocal government representatives were briefed on the role<strong>of</strong> the Reserves and the Chaplain Service. A NationalReserve Chaplains' Conference was held in November<strong>2006</strong>.MEASURABLE OBJECTIVEThe Religious Services Division provided a chaplain'sservice that cares for all DOD members and their dependants,and promotes spiritual growth, social support andethical conduct.OUTPUT DETAILDetails <strong>of</strong> outputs <strong>of</strong> the Religious Services Division areshown in Table 2.20.Table 2.20: Religious Services Outputs for the FY<strong>2006</strong>/<strong>07</strong>Output Performance Measure TargetActual AchievementReligious policyadvice andchaplaincapability andservice to theSANDFNumber <strong>of</strong> units in theSANDF with appointedchaplains to secureadvice and religiousservicesDegree <strong>of</strong> availabilityand relevance <strong>of</strong> religiouspolicies andguidelinesNumber <strong>of</strong> chaplainstrained to correct levelto ensure satisfactoryperformanceA chaplain at eachunit in the SANDFVacancies filledwithin three monthsDOD ReligiousPolicy updatedAll chaplains to befully trained withintwo years <strong>of</strong>appointmentThe target was 90 % achieved. Although most Level 4units are staffed with chaplains, some posts need to beapproved and staffed. Delays in filling posts are causedby the lengthy process <strong>of</strong> acquisition.The target is fully achieved. The policy is the frameworkfor all religious activities in the DOD. It is supported by allthe major faith groupings and is the basis <strong>of</strong> value-addingand cost-effective spiritual support to the SANDF. Thereviewed policy will be approved in 20<strong>07</strong>.Four chaplains were appointed and trained to operate aschaplains in the SANDF during the FY<strong>2006</strong>/<strong>07</strong>. Only onechaplain was withdrawn from basic military trainingbecause <strong>of</strong> health reasons.<strong>Defence</strong> Administrationchapter 2programme 136SUBPROGRAMME CORPORATECOMMUNICATIONOVERVIEWDEPARTMENT OF DEFENCEThe strategic function <strong>of</strong> Corporate Communication is anintegral part <strong>of</strong> the capabilities <strong>of</strong> the DOD to supportmanagement processes and functions in achieving theDOD mission and vision. Corporate Communicationachieved most <strong>of</strong> its set objectives <strong>of</strong> providing communicationdirection and strategy to the DOD during the pastyear. Corporate Communication received guidelines toincrease and improve its corporate communication effortsin order to ensure stronger public awareness, understandingand support <strong>of</strong> <strong>Defence</strong>, and to develop and refocuscorporate communication to be able to support operationseffectively in the African region.The management <strong>of</strong> relationships between the DOD andits key stakeholders will focus communication efforts toaddress the credibility <strong>of</strong> the <strong>Department</strong> with regard t<strong>of</strong>inancial management and defence spending. CorporateCommunication is, however, still experiencing a majorlack <strong>of</strong> capability to be able to fully achieve its set objectives.This is mainly due to a lack <strong>of</strong> skilled and experiencedcorporate communication specialists and posts.Expanding its communication efforts in support <strong>of</strong>departmental objectives, therefore, remains a challenge.The favourable media coverage received on rejuvenationand re-equipping <strong>of</strong> the SANDF is gradually positioningthe SANDF as the employer <strong>of</strong> choice for the youth <strong>of</strong> ourcountry, ie to provide skilled and trained personnel forpeace support operations and contribute to achievementswith regard to the role <strong>of</strong> the SANDF in peace and stabilityin the region. It furthermore pr<strong>of</strong>iles the SANDF as aninstrument <strong>of</strong> Government in its commitment to servicedelivery and improving the lives <strong>of</strong> all South Africans.Research in terms <strong>of</strong> the perception <strong>of</strong> the public <strong>of</strong> theDOD was done on a quarterly basis through theGovernment Communication Information Service (GCIS).Findings broadly show increased levels <strong>of</strong> support toSANDF peacekeeping initiatives and agreement amongthe majority <strong>of</strong> the adult population that the SANDFneeds weapons to do a good job. Furthermore, perceptionshave risen over time with approximately two-thirds<strong>of</strong> the population indicating that the SANDF is giving
value for money in defending the country and has therequired readiness levels to defend the country. Whileagreement is high on all aspects in which the SANDFshould be involved, especially issues 'closer to home',inter alia protection <strong>of</strong> RSA borders and its independence,support for international commitments is slightly declining.However, opportunities exist for the <strong>Department</strong> toincrease communication efforts in order to address thatpart <strong>of</strong> the population that remains in the 'don't know' or'uncertain' brackets.The establishment <strong>of</strong> new Corporate Communicationstructures is still in process, in accordance and alignmentwith the restructuring process <strong>of</strong> the broader <strong>Department</strong>.The success <strong>of</strong> internal communication in the DOD, however,depends on the partnership between the commandand management cadre at all levels and their corporatecommunication staffs. The role <strong>of</strong> corporate communicationas a management function remains a key challengefor DCC at all levels.Corporate Communication continues to focus its communicationefforts on the achievement <strong>of</strong> consensus ondefence among all its key stakeholders, ie to promote therole <strong>of</strong> the DOD and the SANDF in its commitment topeace and stability on the continent. The overarchingcommunication challenge for <strong>Defence</strong> Corporate Communicationrelated to this objective remains to promotethe role <strong>of</strong> the DOD, in particular the SANDF, in a peacetimescenario, given its low level <strong>of</strong> visibility internally.MEASURABLE OBJECTIVECorporate Communication provided defence communicationpolicy, strategy and plans in accordance with DODpolicy and national (Government Communication andInformation System) policy. A centralised corporate communicationcapability, services and products in order toenable effective, efficient, interactive two-way communicationbetween the DOD and its publics/stakeholderswere also provided.OUTPUT DETAILDetails <strong>of</strong> outputs <strong>of</strong> Corporate Communication areshown in Table 2.21.Table 2.21: Outputs <strong>of</strong> Corporate Communication for the FY<strong>2006</strong>/<strong>07</strong>Output Performance Measure TargetActual AchievementStrategic direction inrespect <strong>of</strong> corporatecommunication to theDOD providingdefence communicationadvice, policy,strategy and plans inaccordance with DODpolicy and GovernmentCommunicationInformation System(GCIS) policyCorporatecommunicationcapability, productsand servicesThe degree to which Full compliancethe DOD's Corporate with DODCommunication policy,strategy and and plannedexpectationsplans are aligned targetswith and supportDOD and national(GCIS) communicationplans and policiesThe degree to whichthe defence communicationneeds <strong>of</strong> theDOD and its stakeholdersare metFull 24-hourmedia supportservice with ahigh degree <strong>of</strong>credibilityHigh standard<strong>of</strong> reaching90% <strong>of</strong> the targetedpopulationMost <strong>of</strong> the DOD expectations and planned targets wereachieved. <strong>Defence</strong> Corporate Communication succeededin the alignment and integration <strong>of</strong> communication withthe Government Communication and Information System(GCIS), the Ministry <strong>of</strong> <strong>Defence</strong>, as well as Services andDivisions by means <strong>of</strong> proactive and joint strategic planning.Development <strong>of</strong> a Corporate Communication Policywas not achieved due to a lack <strong>of</strong> skilled communicationfunctionariesA 24-hour media support service was delivered for theDOD with a high degree <strong>of</strong> credibility. The services comprisedthe provision <strong>of</strong> inter alia media analysis, mediabriefings and media visitsThe target <strong>of</strong> reaching the full proportion <strong>of</strong> target publicswas achieved. Identified internal and external stakeholderswere reached through written products such as SouthAfrican Soldier, info bulletins and the DODInternet/Intranet. One internal advertising campaign wasdone in support <strong>of</strong> the Human Resources 2010 Strategy.This campaign is continuing in the next financial year.Once again there was a high demand for graphic designand art products, as well as video productions. Fewervisits and events than planned took place as a result <strong>of</strong>reasons beyond the control <strong>of</strong> <strong>Defence</strong> CorporateCommunication. The industrial theatre capability was notutilised due to a lack <strong>of</strong> funds and skilled personnel.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 37
PERFORMANCE AND SERVICE DELIVERY IMPROVEMENTDetails <strong>of</strong> performance and service delivery <strong>of</strong> Corporate Communication are shown in 2.22.Table 2.22: Performance and Service Delivery Improvement during the FY<strong>2006</strong>/<strong>07</strong>ActivitiesPlanned ManagementInterventionAnticipated BenefitStatusActual AchievementAccess to DODInformationImprove the DODwebsiteImproved access toDOD information onthe InternetInitiatedThe DOD Internet Website(www.dod.mil.za) is maintained satisfactorily.Ongoing interaction with GCIS, theHead <strong>of</strong> Communication, the GovernmentInformation Technology Officer, and Servicesand Divisions takes place to ensureeffective access to DOD informationSERVICES SCALED DOWN,SUSPENDED OR ABOLISHEDDURING THE FY<strong>2006</strong>/<strong>07</strong>Corporate Communication did not present any industrialtheatre performances during the year under review due toa lack <strong>of</strong> resources (finances and skilled personnel).SUBPROGRAMME RESERVECOMPONENTOVERVIEWning, and alignment forums is improving.A senior Reserve <strong>of</strong>ficer successfully completed theExecutive National Strategic Programme in <strong>2006</strong> at the SA<strong>Defence</strong> College. Great strides have been made with ceremonialevents, as the focus is shifting towards improvingReserve participation, for example at the BhambathaRebellion Ceremony. During the period 24 April to 2 May<strong>2006</strong>, the SANDF Reserves participated in the New YorkAdjutant General Combat shooting matches at the CampSmith Peek Skill in New York, facilitated by the New YorkState Partnership Programme.<strong>Defence</strong> Administrationchapter 2programme 138The <strong>Defence</strong> Reserve Office has had a successful year interms <strong>of</strong> the attainment <strong>of</strong> its objectives. Many <strong>of</strong> thesehave and will contribute to the establishment <strong>of</strong> a viablesystem and climate within which the Reserve Force mayoperate.The development <strong>of</strong> the Reserves into a transformed,viable and combat-ready component <strong>of</strong> the SANDF restswith the Services and Divisions which command theseReserve elements. However, the <strong>Defence</strong> Reserve Officeis charged with coordinating and monitoring the execution<strong>of</strong> the Reserve Strategy, including Project PHOENIX,which is aimed at the renewal and transformation <strong>of</strong> theReserves. The process has maintained momentum andthe Reserves have continued on a path towards becominga viable and employable component <strong>of</strong> the conventionalcapability <strong>of</strong> the SANDF. This is confirmed by the factthat, during the period under review, the Reserves wereincreasingly successfully deployed in external missions ascounterparts <strong>of</strong> the regulars.The <strong>Defence</strong> Reserve Office contributed to the <strong>Defence</strong>Review Update <strong>2006</strong> process, which confirmed the role <strong>of</strong>the Reserves as providing the majority <strong>of</strong> the landwarddefence conventional capability, supplementing regularsin peace support operations and homeland defence. Inthe education, training and development environment,much has changed. The number <strong>of</strong> qualifying young <strong>of</strong>ficersand non-commissioned <strong>of</strong>ficers is growing and representationin education, training and development plan-DEPARTMENT OF DEFENCEThe <strong>Defence</strong> Reserve Office hosted the Reserve ForceSymposium on 13 to 15 March 20<strong>07</strong>, the first in the history<strong>of</strong> the SANDF. The aim was to provide a platform fora meaningful debate on the future role, function and utilisation<strong>of</strong> the Reserve component <strong>of</strong> the 'Core Growth OneForce' <strong>of</strong> the SANDF. The <strong>Defence</strong> Reserve Office participatedin briefings to the Minister <strong>of</strong> <strong>Defence</strong> and theParliamentary <strong>Defence</strong> Committee on the state <strong>of</strong> theReserves and the Reserve Force Strategy. The <strong>Defence</strong>Reserve Office continues to engage the business communityin pursuit <strong>of</strong> its voluntary support to the Reserve system.To this end, extensive work has been done to prepareproposals for amendments to the <strong>Defence</strong> Act in order t<strong>of</strong>acilitate call-ups in times other than war. These proposalshave been tabled at the <strong>Defence</strong> Reserve Board and arecurrently with the legal environment for assessment andrefinement before submission to Parliament.In marketing the Reserves, a total <strong>of</strong> 30 000 copies <strong>of</strong> theReserve Force Volunteer 20<strong>07</strong> were distributed nationally.The Reserves were marketed at the Africa Aerospace and<strong>Defence</strong> Exhibition (AAD) in September <strong>2006</strong>. Business,labour and decision makers were reached through a total<strong>of</strong> 17 advertisement that were published in 10 leadingpublications such as SA Medical Journal, Black, BusinessQuarterly and Top 300.Some challenges remain that are being addressed. Therejuvenation <strong>of</strong> the Reserve Component through theMilitary Skills Development System as feeder base has
proved to be problematic as most are seeking permanentemployment. The Council for Support to National<strong>Defence</strong> is inactive. The Minister <strong>of</strong> <strong>Defence</strong> is to providefurther guidance on this matter. The FY<strong>2006</strong>/<strong>07</strong> has beenthe <strong>Defence</strong> Reserve Office's most active year yet in terms<strong>of</strong> providing advice and input to DOD staff on Reservematters. The <strong>of</strong>fice will be actively involved in the reviewprocess <strong>of</strong> the Human Resource Strategy 2010, which willensure sustainable incorporation <strong>of</strong> the Reserves in thetransformation and rejuvenation processes.MEASURABLE OBJECTIVEThe <strong>Defence</strong> Reserve Office directed the development andmaintenance <strong>of</strong> the Reserve system to provide specialistadvice on Reserve Force matters and promote/market theReserves and the volunteer system.OUTPUT DETAILDetails <strong>of</strong> outputs <strong>of</strong> the <strong>Defence</strong> Reserve Office areshown in Table 2.23.Table 2.23: Outputs <strong>of</strong> the <strong>Defence</strong> Reserve Office for the FY<strong>2006</strong>/<strong>07</strong>Output Performance Measure TargetActual AchievementStrategic direction tothe developmentand maintenance <strong>of</strong>the Reserve Forcesystem by providingspecialist advice,policy, strategy,plans and doctrine,as well as promotional/marketingproducts and servicesThe degree <strong>of</strong> implementation<strong>of</strong> ReserveForce StrategyDegree <strong>of</strong> improvement<strong>of</strong> ReservepoliciesDegree <strong>of</strong> relevancyand robustness <strong>of</strong>Reserve legislationand regulationsExtent and level <strong>of</strong>information beingprovided to internaland external stakeholdersand supportby employersAdvice on Reserve Forcestrategy (30% based onweighted scale) implementationImproved Human Resource,training and preparationrelatedReserve policiesFinalised revised pay,allowances and S&T policies,as well as revised call-updelegationsUpdate <strong>of</strong> Chapter 4 <strong>of</strong> theGeneral Regulations andpublication <strong>of</strong> the new enrolmentform for Reserve servicecontractsAn information and marketingcapability establishedThe role <strong>of</strong> Reserves fullycommunicated within theSANDF, including MSDSmembers transferring to theReservesThe need for employers'support communicated byaddressing the CEOs <strong>of</strong> thetop 40 companiesAdvertising directed atbusiness, labour anddecision makersImplementation <strong>of</strong> the Reserve Strategy wasmonitored and reported on by the <strong>Defence</strong>Reserve Board. The Office actively participatedin the <strong>Defence</strong> Review Update <strong>2006</strong>process, which confirmed the role <strong>of</strong> theReserves.The Reserve Force Office was activelyinvolved in the formulation and updating <strong>of</strong> allHuman Resource policies.Submissions have been made to the Chief <strong>of</strong>Human ResourcesGeneral Regulations have been finalised andsubmitted for promulgation. The enrolmentform for Reserve service has been submittedfor legal scrutiny and will be published thereafter.The capability is established at the ReserveForce Office. However, a lack <strong>of</strong> staff in theReserve Force Office's regional <strong>of</strong>fices poses achallenge to facilitate marketing activities atregional level. Services and Divisions must beeducated regarding the use <strong>of</strong> marketingopportunities in the Reserves.Activities were directed at informing the DOD,such as the publishing <strong>of</strong> the SA ReserveForce Volunteer 20<strong>07</strong> and special events at 1Military Hospital and the Navy week in Simon'sTown. The Reserve website is a useful tool toreach internal and external target publics.Communication with serving MSDS membersremains a challenge and will receive attentionin the next year.Various events were hosted in the provinces.The SA Navy successfully hosted an event for65 employers <strong>of</strong> the Eastern Cape on the SASMENDI. The Reserves were marketed at theAfrica Aerospace and <strong>Defence</strong> Exhibition(AAD) in September <strong>2006</strong>. The Council forSupport to National <strong>Defence</strong> is inactive, pendinga decision to be asked <strong>of</strong> the Minister <strong>of</strong><strong>Defence</strong>.A total <strong>of</strong> 17 advertisements were published in10 publications, such as the SA MedicalJournal, Black Business Quarterly, Top 300and the Pan African Parliament.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 39
PERFORMANCE AND SERVICE DELIVERY IMPROVEMENTDetails <strong>of</strong> performance and service delivery <strong>of</strong> <strong>Defence</strong> Reserves are shown in Table 2.24.Table 2.24: Performance and Service Delivery Improvement during the FY<strong>2006</strong>/<strong>07</strong>ActivitiesPlanned ManagementInterventionAnticipated BenefitStatusActual AchievementReserve Forcerepresentationat all key decision-makingfora in allServices andDivisionsEngage JointOperations Division toensure approval <strong>of</strong>Reserve structure, aswell as staffing <strong>of</strong>posts within JointOperations DivisionOptimal Reserveemployment and representationwithin JointOperations DivisionProcessinitiatedProgress has been made in appointingmore Reserves in the available posts atall levels. This aspect is monitored by the<strong>Defence</strong> Reserve Board<strong>Defence</strong> Administrationchapter 2programme 140SUBPROGRAMME DEFENCEFOREIGN RELATIONSOVERVIEW<strong>Defence</strong> Foreign Relations contributed towards the governmentplan <strong>of</strong> action by increasing representation, withthe emphasis on Africa, by opening seven additionalMilitary Offices in Kenya, the Sudan, Côte d'Ivoire,Algeria, United Arab Emirates, Saudi Arabia andBelgium. The designated defence attachés and advisorswere deployed to these new <strong>of</strong>fices from January to March20<strong>07</strong>. Arrangements have also been put in place to openthe defence <strong>of</strong>fice at the South African High Commissionin Kampala, Uganda, in the FY20<strong>07</strong>/08.African Aerospace and <strong>Defence</strong> Exhibition, AAD <strong>2006</strong>,was presented in Cape Town from 19 to 24 September<strong>2006</strong>. <strong>Defence</strong> Foreign Relations coordinated the activities<strong>of</strong> <strong>of</strong>ficial foreign guests, in cooperation with Armscor.The subdivision is constantly and constructively involvedin the arrangements <strong>of</strong> bilateral international meetingsand the continental and regional multinational organisations'defence and security structures, with specialemphasis on the activities <strong>of</strong> the Southern AfricaDevelopment Community (SADC) Organ and theInterstate <strong>Defence</strong> and Security Committee (ISDSC).<strong>Defence</strong> Foreign Relations established defence cooperationplans for all countries with which relations are maintained.These regularly updated plans provide the DODmembers going abroad or receiving guests from abroadwith the required background on the state <strong>of</strong> relations <strong>of</strong>the DOD with a specific country.A DOD Very Important Person (VIP) Lounge facility atthe O.R. Tambo Airport has been negotiated with theAirports Company <strong>of</strong> South Africa (ACSA), and buildingwill commence in 20<strong>07</strong> with planned completion in 2008.DEPARTMENT OF DEFENCEA <strong>Defence</strong> Foreign Relations Course was presented from25 July to 25 August <strong>2006</strong> for 17 <strong>of</strong>ficers nominated to beconsidered as defence attachés and advisors. Extensiveuse was made <strong>of</strong> high-level personnel from within theDOD, the <strong>Department</strong> <strong>of</strong> Foreign Affairs and academicinstitutions to orientate these <strong>of</strong>ficers regarding thedefence foreign relations' function and the aspects <strong>of</strong>defence diplomacy.During the period under review, the groundwork hasbeen done in the past year to produce policy and strategydocuments that guide operations as well as the evaluation<strong>of</strong> existing policies and the ensuing value addition propositionas well as impact assessment as it relates to <strong>Defence</strong>Foreign Relations' function. These documents will all besubmitted for promulgation and approval in theFY20<strong>07</strong>/08.The <strong>Defence</strong> Foreign Relations structure has not beenaligned since the transfer in 2001 from <strong>Defence</strong>Intelligence to the Corporate Staff Division. This impliesthat the current organisational structure does not empowerthe organisation to deal with the exponential increase indefence diplomacy <strong>of</strong> the <strong>Department</strong>. Even though theMinister has already approved the <strong>Defence</strong> ForeignRelations Division as part <strong>of</strong> the Central Staff, the<strong>Department</strong>al Organisational Development Work Grouphas not yet finalised the final organisational structure <strong>of</strong>the division.MEASURABLE OBJECTIVE<strong>Defence</strong> Foreign Relations provided a <strong>Defence</strong> foreignrelations capability and services as directed by the Chief<strong>of</strong> the SANDF.OUTPUT DETAILDetails <strong>of</strong> outputs <strong>of</strong> <strong>Defence</strong> Foreign Relations are shownin Table 2.25.
Table 2.25: Outputs <strong>of</strong> <strong>Defence</strong> Foreign Relations for the FY<strong>2006</strong>/<strong>07</strong>Output Performance Measure TargetActual Achievement<strong>Defence</strong> foreignrelations' capabilityand services asdirected by theChief <strong>of</strong> theSANDFThe degree to whichDOD foreign relationstargets are achievedTo manage 24 <strong>Defence</strong>Attaché <strong>of</strong>fices abroadThe target was fully achieved. New <strong>Defence</strong>Attaché <strong>of</strong>fices were opened in seven countriesin line with the strategic business plan and toalign the DOD with the government's plan <strong>of</strong>action. These countries are Algeria, Belgium,Côte D'Ivoire, Kenya, Saudi Arabia, the Sudanand the United Arab Emirates. There are now31 <strong>Defence</strong> Attaché <strong>of</strong>fices to manage. A DODVIP lounge facility at the O.R. Tambo Airporthas been negotiated with the Airports Company<strong>of</strong> South Africa to be completed in 2008. Thisfacility would enhance the image <strong>of</strong> the DOD.The degree to whichconsular and otherdefence diplomacyservices are managedsuccessfullyThe satisfactory management<strong>of</strong> the annualprogramme and activities<strong>of</strong> the MilitaryAttaché and AdvisorCorps95% <strong>of</strong> all consular and otherdefence diplomacy servicesare delivered on time andaccuratelyThe target was achieved. <strong>Defence</strong> ForeignRelations processed 8 879 passports and 2344 visas. Visit services for 38 visits were renderedto the DOD top structure.The degree <strong>of</strong> satisfactionwith foreign relationsadvice by stakeholders(Ministry <strong>of</strong><strong>Defence</strong>, Secretariatand SANDF)95% <strong>of</strong> the activities in theMilitary Attaché and AdvisorCorps programme are executedto the satisfaction <strong>of</strong>the Military Attaché andAdvisor Corps membersForeign relations advice istimeous and useful for DODdecision-makersThe target was achieved. Relations in terms <strong>of</strong>communication and interaction improved duringthe year. <strong>Defence</strong> Foreign Relations is stillchallenged with requests by the MilitaryAttaché and Advisor Corps for courtesy calls totop management, mainly due to the unavailability<strong>of</strong> members due to busy schedules.90% <strong>of</strong> Foreign Relations advice is timeousand useful for DOD decision-makers.Cooperation plans for all countries with whichthe DOD has bilateral relations were regularlyupdated to ensure pr<strong>of</strong>essional advice to topstructure stakeholders. Full representation <strong>of</strong>service and division representatives at the relevantpreparation forums prior to bilateral meetingsto ensure maximum achievements <strong>of</strong>objectives.POLICY DEVELOPMENTSA draft policy on the defence attaché and advisor selectionprocess has been developed. An overarching <strong>Defence</strong>Foreign Relations Strategy has also been developed. Thisstrategy will provide long-term guidance with respect tothe defence foreign relations function in the <strong>Department</strong>.These documents will all be submitted for promulgationand approval in the FY20<strong>07</strong>/08.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 41
Force EmploymentField engineers erecting a Medium Girder Bridge (MGB) during field operations.programme 8chapter 342DEPARTMENT OF DEFENCE
Chapter ThreePROGRAMME 8 -FORCE EMPLOYMENTa nationalpartnershipto build abetter lifefor allDEPARTMENT:DEFENCEOVERVIEWThe Force Employment Programmeis the primary programme <strong>of</strong> theDOD tasked with command andcontrol and coordination <strong>of</strong> allSANDF forces employed in thevarious missions.The SANDF successfully employedmission-trained joint forces for allmissions ordered by the Government.This employment <strong>of</strong> forces is conductedin accordance with South Africa'snational and international policies andobligations in order to promote national,regional and continental peace, safety,security, stability and cooperation.Over the period under review more than3 000 members were deployed in externalpeace support operations in the DRC,Burundi, Ethiopia, Eritrea, the Sudan andCôte d'Ivoire. In the DRC, the SANDFcontinued to support the ongoing peaceoperations led by the UN. SANDF membersplayed a major role during the DRCelection process, consisting <strong>of</strong> two rounds<strong>of</strong> elections. A small contingent <strong>of</strong> fortytwo(42) members continued with supportin the registering and integration <strong>of</strong>the DRC Armed Forces. A post-conflictreconstruction operation was also concluded.In Burundi minimum force levelswere deployed as the mission wassuccessfully changed over from a UN toan AU mission in December <strong>2006</strong>. In sup-port <strong>of</strong> the AU mission a total <strong>of</strong> 1 110members were deployed as protectorsfor Burundian leader elements returningfrom exile. In Ethiopia and EritreaSANDF military observers were andremain deployed along the zone betweenthe two states. A contingent <strong>of</strong> 648SANDF members was deployed in anAU mission in the Darfur region <strong>of</strong> theSudan (AMIS), while in Côte d'Ivoire theSANDF contingent that was fully preparedto assist with the disarmament, thedemobilisation and reintegration processwas to be withdrawn as ordered.The SANDF was also actively engaged invarious missions in cooperation with theSAPS in internal operations. Support toother Government departments was conductedlargely in the area <strong>of</strong> borderlinecontrol and rural safeguarding operations.The disengagement from internaloperations (borderline control and ruralsafeguarding) proceeded as planned.The responsibility for borderline control<strong>of</strong> the international borders pertaining toNamibia, Botswana and Lesotho washanded over to the SAPS. This reducedthe number <strong>of</strong> internally deployedSANDF members. The phasing out <strong>of</strong>the Army Territorial Reserve Units continuedin accordance with the approvedSANDF Exit/SAPS Entry Strategy. TheArmy Territorial Reserves will in partcontinue to support the SAPS RuralSafety Plan during the period <strong>of</strong> transfer.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong>43
Steady joint and multinational force preparation planningand exercises continued throughout the year. The nextmajor exercise to test and evaluate the integrated conventionalcapabilities will only be held in 2009. This is a fullscalejoint exercise in the same category as the 2005Exercise NDLOVU. The joint planning process was initiatedduring the past year.Force preparation addressed the force requirements forthe medium-term framework, as well as the mission trainingneeds for the rotation <strong>of</strong> forces for current missions.SANDF Forces deployed in support <strong>of</strong> the UN Mission inthe DRC faced equipment serviceability and logistics sustainmentchallenges. A number <strong>of</strong> interventions havetaken place to address these challenges. In the Sudan thefuture <strong>of</strong> AMIS is unsure. The Government <strong>of</strong> the Sudanimposed restrictions on AMIS that negatively affect movementsto and from the mission area which, in turn, delayoperational sustainability and deployment <strong>of</strong> forces.Furthermore, the gap between the allocation <strong>of</strong> resourcesreceived by the DOD and the expected DOD readinesslevels, particularly for peace support operations, necessitatedcertain reprioritisation in order to meet the currentmaintenance <strong>of</strong> essential reserves, which may have implicationsfor the future. The cumulative effect <strong>of</strong> this situationis that future resource allocation may not be in timeto achieve the required force levels and readiness states.The degree <strong>of</strong> sustainability <strong>of</strong> SANDF capabilities isdemonstrated by the DOD's approach to engage militaryresources selectively during the conduct <strong>of</strong> operations insupport <strong>of</strong> peace missions. The DOD has reached a situationwhere military capabilities required for peace missionsare approaching critical levels in terms <strong>of</strong> sustainment.The SANDF will continue to strive towards the vision <strong>of</strong>defending South Africa and employ forces in support <strong>of</strong>South Africa's national policies and international obligationsto promote national, regional and continental peace,safety, security, stability and cooperation.PURPOSEThe Force Employment Programme stipulates how operationsand joint and multinational military exercisesshould be conducted, and defence capabilities managed.MEASURABLE OBJECTIVEContribute to national and regional security by initiating,planning, commanding and coordinating support for alloperations and joint and multinational exercises as directed,and meeting Government requirements.OUTPUTSThe Force Employment Programme activities for thedefence <strong>of</strong> South Africa and in support <strong>of</strong> Governmentinitiatives in the areas covered by its six subprogrammesare:● Strategic Direction;● Operational Direction;● Special Operations;● Regional Security;● Support to the people; and● <strong>Defence</strong> capability management.Details <strong>of</strong> Force Employment Programme outputs areshown in Table 3.1.Force Employmentchapter 3programme 844Table 3.1: Force Employment Programme Outputs for the FY<strong>2006</strong>/<strong>07</strong>OutputInternal Support,planning andoperationsdevelopmentPerformance MeasureSubprogramme Strategic DirectionDegree <strong>of</strong> compliancewith support requirementsThe degree to whichforce employmentrequirements are metThe degree to whichjoint doctrine is developedto optimise operationalreadinessrequirements as determinedby C SANDFTargetFull supportSuccessfulplanning <strong>of</strong> alloperations andexercisesJoint doctrineaccording to theC SANDFrequirementsDEPARTMENT OF DEFENCEPerformance Against TargetAchievementFull support was provided as required in spite <strong>of</strong> criticalposts not being staffed. The staffing <strong>of</strong> posts will beaddressed through departmental processes. All policieswere complied with.Planning commitments for 30 existing and new operationswere maintained/developed, resulting in effective employment<strong>of</strong> forces. A number <strong>of</strong> joint emergency evacuationcontingencies were successfully revised. Strategic directionprovided resulted in the Draft Joint Force EmploymentConcept being approved in principle by the MilitaryCommand Council and Joint Force Employment becauseguidelines for planning combat-ready force structure elementsand capabilities were available.Joint doctrine was developed according to requirements.Five joint doctrine publications have been submitted forcommand approval.
Table 3.1: Force Employment Programme Outputs for the FY<strong>2006</strong>/<strong>07</strong> (Continued)OutputPerformance MeasureTargetPerformance Against TargetAchievementThe degree to whichcompliance with battlespace development isresearched andanalysedSubprogramme Operational DirectionCommand andcontrol capabilityInternal supportcapabilityDegree <strong>of</strong> compliancewith DOD policies,strategies and plans inrespect <strong>of</strong> operationalmattersDegree <strong>of</strong> compliancerequired for operationalreadiness <strong>of</strong> theOperationalHeadquartersSubprogramme Special OperationsSpecialOperationsdirectioncapabilityTrainingCapabilityPercentage complianceto C SANDFrequirements /Degree<strong>of</strong> success to specialoperationsDegree to whichtraining is presentedas plannedNumber <strong>of</strong> learnersqualifyingSubprogramme Regional SecurityOperationMISTRALSupport to UNmission in theDRCOperationFIBRESupport to UNmission inBurundiOperationPRISTINESupport to UNmission in Côted'IvoireThe number <strong>of</strong>members deployed tocomply with the MOUMemorandum <strong>of</strong>Understanding andLetter <strong>of</strong> Assistancein providing structureelements/individualsas stipulatedThe number <strong>of</strong> membersdeployed to complywith the MOUMemorandum <strong>of</strong>Understanding andLetter <strong>of</strong> Assistance inproviding structure elements/individualsasstipulatedThe number <strong>of</strong> membersdeployed to complywith the MOUMemorandum <strong>of</strong>Understanding andLetter <strong>of</strong> Assistance inproviding structure elements/individualsasstipulatedReview <strong>of</strong> theenvironmentEffective commandand control<strong>of</strong> all operationalmattersFull support inaccordance withrequirementsEffective direction<strong>of</strong> all specialoperationsTraining in accordancewithrequirements andcourse schedule1 214 membersdeployed1 319 membersdeployed45 membersdeployedThe target was fully achieved. The African Battle Spacepublication was approved by the Military Command Council(MCC) and will be implemented.Effective command and control <strong>of</strong> operations was conducted.Full compliance with DOD policies, strategies and plansin respect <strong>of</strong> operational matters was maintained. All therequirements for external and internal operations, as well asad hoc tasks were met in spite <strong>of</strong> challenges such as unserviceability<strong>of</strong> equipment, lack <strong>of</strong> junior leaders and the healthstatus <strong>of</strong> troops.Support to operations was provided as required. Reservemembers filled critical posts to ensure service delivery.Challenges such as over-flight clearances for sustainmentflights were experienced. The realignment <strong>of</strong> the JointOperations Division structure will enhance the interoperabilityduring joint operations, as well as joint and multinationalexercises.Target fully achieved. All planned operations were successfullyexecuted according to requirements.During cycle 1/<strong>2006</strong>, 19 members qualified as special forcesoperators. Cycle 2/<strong>2006</strong> was cancelled owing to a lack <strong>of</strong>learners. In spite <strong>of</strong> special efforts made during the year,recruitment <strong>of</strong> members for special forces remains a challenge.The deployment was effectively maintained with an average<strong>of</strong> 1 214 members deployed. Continuous replanning wasconducted to adjust to the changing situation <strong>of</strong> the mission,hence the repatriation <strong>of</strong> the Ferry and Well Drill units. Onesuccessful rotation was completed in October/November<strong>2006</strong>.Operation FIBRE was terminated in December <strong>2006</strong> whenthe objective <strong>of</strong> establishing a peace agreement allowing forfurther political development was achieved. Minimum forcelevels were maintained. In December <strong>2006</strong> a successfulchangeover took place from a UN to an AU mission. RSAForces under the UN structure redeployed into OperationCURRICULUM, the AU mission in Burundi.The planned 45-member complement as approved was preparedbut not deployed from July 2005 before termination inDecember <strong>2006</strong>. This mission was terminated for reasonsassociated with the peace process in Côte d'Ivoire.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 45
Table 3.1: Force Employment Programme Outputs for the FY<strong>2006</strong>/<strong>07</strong> (Continued)OutputPerformance MeasureTargetPerformance Against TargetAchievementForce Employmentchapter 3programme 846OperationESPRESSOSupport to UNmission inEthiopia andEritreaOperationTEUTONIC ISupport <strong>of</strong> multilateralarrangementsin theDRCOperationTEUTONIC IISupport <strong>of</strong>multilateralarrangements inthe DRC(financed by theNetherlands)OperationTEUTONIC IIISupport <strong>of</strong>multilateralarrangements inthe DRCOperationTRITON IVSupport to theAU in respect <strong>of</strong>elections in theComorosOperationCORDITESupport to AUmission in theSudan (AMIS)OperationsSOLITAIRE I, II,III and IVDistribution <strong>of</strong>ballot papers forthe DRC elections.Deployment<strong>of</strong> militaryand civilianobservers for theelectionsThe number <strong>of</strong>members deployed tocomply with the MOUMemorandum <strong>of</strong>Understanding andLetter <strong>of</strong> Assistancein providing structureelements/individualsas stipulatedThe number <strong>of</strong>members deployed tocomply with the MOUMemorandum <strong>of</strong>Understanding andLetter <strong>of</strong> Assistancein providing structureelements/individualsas stipulatedThe number <strong>of</strong>members deployed tocomply with the MOUMemorandum <strong>of</strong>Understanding andLetter <strong>of</strong> Assistancein providing structureelements/individualsas stipulatedThe number <strong>of</strong>members deployed tocomply with the MOUMemorandum <strong>of</strong>Understanding andLetter <strong>of</strong> Assistancein providing structureelements/individualsas stipulatedThe number <strong>of</strong>members deployed tocomply with MOUThe number <strong>of</strong>members deployed tocomply with the MOUMemorandum <strong>of</strong>Understanding andLetter <strong>of</strong> Assistancein providing structureelements/individualsas stipulatedThe number <strong>of</strong>members deployed tocomply with the MOUMemorandum <strong>of</strong>Understanding andLetter <strong>of</strong> Assistancein providing ForceStructureElements/individualsas stipulated6 membersdeployed56 membersdeployed63 membersdeployed2 membersdeployed371 membersdeployed334 membersdeployedSuccessful distribution<strong>of</strong> ballotpapers.Successfuldeployment <strong>of</strong>military and civilianobserversDEPARTMENT OF DEFENCESix staff <strong>of</strong>ficers/military observers were deployed accordingto UN/AU requirements.The available force levels fluctuated throughout the year andon average 47 members were deployed. Two BrassageCentres were established, assisting with the integration <strong>of</strong>147 000 former belligerents. During the operation, AfricanRenaissance funds for post-conflict reconstruction wereexpended.On average 63 members were deployed in line with theMOU. Two training facilities were constructed. The missionwas concluded in September <strong>2006</strong>.Two senior members were deployed to coordinate allSANDF assistance required by the Congolese <strong>Defence</strong>Force.The AU appointed South Africa as lead nation in the AUMission to the Comoros (AMISEC). A total <strong>of</strong> 318 <strong>of</strong> theplanned 371 members was deployed owing to non-availability<strong>of</strong> forces. The mission was commended and receivedrecognition for its work from the Peace and Security Council<strong>of</strong> the AU.As requested by the AU, force levels were increased fromtwo companies to battalion strength resulting in 648 membersbeing deployed. Two successful rotations were completed.Sustainment flights were and remain a problembecause Sudanese authorities do not give over-flight andlanding clearances.A total <strong>of</strong> 2 165 tons <strong>of</strong> ballot material was distributed in theDRC by the SANDF. Altogether 26 SANDF members and200 observers from <strong>Department</strong> <strong>of</strong> Foreign Affairs were successfullydeployed and supported by the DOD.
Table 3.1: Force Employment Programme Outputs for the FY<strong>2006</strong>/<strong>07</strong> (Continued)OutputPerformance MeasureTargetPerformance Against TargetAchievementOperationCURRICULUMAgreementbetween SouthAfrica and BurundianGovernment.Protectthe returningleader elementOperationMARINERElection supportto MadagascarOperationINDAWOElection supportto LesothoOperationLITCHI IIHumanitarianassistance toMozambique inthe Zambezi valleyas a result <strong>of</strong>cyclones and torrentialrainOperationBAPISASupport toMozambiqueGovernment inalleviation <strong>of</strong> thedisaster situationresulting from theexplosion <strong>of</strong> theammunitiondumpThe number <strong>of</strong>members deployed tocomply with the MOUMemorandum <strong>of</strong>Understanding andLetter <strong>of</strong> Assistancein providing ForceStructureElements/individualsas stipulatedThe number <strong>of</strong>members deployed tocomply with the MOUMemorandum <strong>of</strong>Understanding andLetter <strong>of</strong> Assistancein providing ForceStructureElements/individualsas stipulatedThe number <strong>of</strong>members deployed tocomply with the MOUMemorandum <strong>of</strong>Understanding andLetter <strong>of</strong> Assistancein providing ForceStructureElements/individualsas stipulatedThe number <strong>of</strong>members deployed tocomply with the MOUMemorandum <strong>of</strong>Understanding andLetter <strong>of</strong> Assistancein providing ForceStructureElements/individualsas stipulatedThe number <strong>of</strong>members deployed tocomply with the MOUMemorandum <strong>of</strong>Understanding andLetter <strong>of</strong> Assistancein providing ForceStructureElements/individualsas stipulate1 110 membersdeployedSuccessfulsupport duringthe electionsSuccessfulsupport duringthe electionsSuccessfulsupport duringthe floodsSuccessfulsupport duringthe disaster1 110 members were deployed and successfully protectedthe Burundi leader element returning from exile. OperationCURRICULUM is a new mission with a temporary timeframe and anticipated to end in 2008.A total <strong>of</strong> 30 members were deployed from 29 November to12 December <strong>2006</strong>. All objectives with regard to transportationand general assistance were achieved. The missionwas commended and received recognition from the internationalcommunity.All ballot papers for the Lesotho election were successfullydistributed and collected by the SA Air Force from 15 to 20February 20<strong>07</strong>. A total <strong>of</strong> 27 members was deployed. TheSANDF used its own air capabilities for the deployment,thereby contributing to the efficiency <strong>of</strong> the election process.A total <strong>of</strong> 80 members were deployed reflecting full compliancewith the MOU. A total <strong>of</strong> 630 tonnes <strong>of</strong> food and 2.5million litres <strong>of</strong> purified water were distributed. Three SA AirForce aircraft, as well as water purification plants weredeployed. The SANDF support directly contributed to alleviatingan adverse humanitarian situation. Deployment commencedon 6 March 20<strong>07</strong> and remains current.A total <strong>of</strong> 53 SANDF and six SAPS members were deployedfrom 26 March 20<strong>07</strong>. The successes <strong>of</strong> the Operation willbe made visible in the FY20<strong>07</strong>/08 report.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 47
Table 3.1: Force Employment Programme Outputs for the FY<strong>2006</strong>/<strong>07</strong> (Continued)OutputPerformance MeasureTargetPerformance Against TargetAchievementForce Employmentchapter 3programme 848Subprogramme Support to the PeopleOperationINTEXOBorderline controlOperation STIP-PER Rural safeguardingin support<strong>of</strong> the SAPSOperationsHUMAN Supportto theGovernmentJoint andmultinationalexercises<strong>Defence</strong> capabilityrequirementDegree <strong>of</strong> compliancewith standing agreementfor borderlinecontrol operationsLandward borderlinebase reductionLandward borderlinecompany reductionDegree <strong>of</strong> compliancewith SAPSrequirementsNumber <strong>of</strong> ArmyTerritorial Reserveunits (commandounits) units phased outDegree <strong>of</strong> compliancewith ad hoc approvedGovernment departments'requestsDegree <strong>of</strong> compliancewith preparationrequirements for jointexercisesDegree <strong>of</strong> complianceto force preparationrequirements for multinationalexercisesThe degree to whichrequired defencecapabilities are identifiedand developed100%Reduce landwardborderline basesfrom 12 to 3Reduce landwardborderline subunitsfrom 12 to 9100%Reduce ArmyTerritorialReserve units(commandounits) units from113 to 52100%Subprogramme <strong>Defence</strong> Capability ManagementFull complianceNumber <strong>of</strong> jointexercisesFull complianceNumber <strong>of</strong>multinationalexercisesAccording torequirementsDEPARTMENT OF DEFENCEThe target was fully met. Borderline control was executedalong the Zimbabwean, Mozambiquean, Swaziland andLesotho borders. Three companies (on average 1 111members) were deployed. Successes include inter alia 46weapons found, 15 676 kg marijuana confiscated and 727criminals arrested.The target was met. The available force is decreasing on acontinuous basis in accordance with the agreed SANDF Exitand SAPS Entry Strategy between the SANDF and theSAPS.The target was fully met. Landward borderline subunitswere reduced from 12 to 9 as planned.The target was fully met in compliance with SAPS requirements.Five Army Territorial Reserve platoons, on average197 members, were deployed. Successes include: 170weapons found, 2 657 kg marijuana confiscated and 2 742criminals arrested.The SA Army is busy closing down Army Territorial Reserveunits. The phasing out <strong>of</strong> these units will be completed bythe end <strong>of</strong> the FY2008/09.All requirements received were complied with. The<strong>Department</strong> <strong>of</strong> Agriculture was assisted in the containment<strong>of</strong> classical swine fever. 84 SANDF members (mostlyReserve elements supplemented by Regular members)were deployed in the Eastern Cape, KwaZulu-Natal and theFree State. A total <strong>of</strong> 13 352 pigs were killed. The SANDFsupported the Marine and Coastal Management by conductingcoastal patrols to curb abalone poaching and to carryout routine fishery patrols. A total <strong>of</strong> 40 abalone poacherswere arrested. The SA Air Force patrolled the maritimecoast <strong>of</strong> South Africa (Operation NEPTUNE-RSA WestCoast and Operation ORCA-RSA East Coast).Three exercises were presented. One exercise was integratedwith the other exercises in order to test and improvecommunication procedures. Of the remaining three exercises,two were cancelled. One was not executed due tounavailability <strong>of</strong> French Forces. See table 4.2 for detail.Seven exercises took place. Exercise BOURBON was conductedas part <strong>of</strong> Exercise INTEROP EAST. One exercisewas cancelled and two maritime exercises were combined.See Table 4.3 for detail.The target was fully met as the plan for the FY<strong>2006</strong>/<strong>07</strong> wasexecuted. Five high-level scenarios were developed andanalysed in terms <strong>of</strong> objectives, military tasks, requiredeffects, functional attributes and required defence capabilities.The <strong>Defence</strong> Staff Council approved the reprioritisedSANDF Capital Acquisition Plan.
Table 3.1: Force Employment Programme Outputs for the FY<strong>2006</strong>/<strong>07</strong> (Continued)OutputPerformance MeasureTargetPerformance Against TargetAchievement<strong>Defence</strong>CapabilityCommand andControl capabilityThe degree to whichcommand and controlis developed(Project ERABUS)According torequirementsMost <strong>of</strong> the requirements were met. The cost-effective management<strong>of</strong> the command and control programme wasensured through coordination with the ARMSCOR ProjectManager, close supervision <strong>of</strong> the service provider and liaisonwith key role-players in the SANDF Command andControl community. The required level <strong>of</strong> integration withother environments was ensured through active participationin, for example, the reprioritisation <strong>of</strong> the capital needs.Continuous research was conducted and consultation providedby the <strong>Defence</strong> Institute.JOINT AND MULTINATIONAL EXERCISES FOR THE FY<strong>2006</strong>/<strong>07</strong>Details <strong>of</strong> SANDF joint exercises are reflected in table 3.2 and multinational exercises in Table 3.3. Training support t<strong>of</strong>oreign forces is reflected in Table 3.4.Table 3.2: Joint Exercises for the FY<strong>2006</strong>/<strong>07</strong>Exercise Name and TypeSA Special Forces ExercisesRehearsal <strong>of</strong> Special Forces contingenciesSANDF Communication ExerciseTo enhance high-frequency (HF) communication skillsthroughout the SANDF utilising joint and multinationalexercises as a vehicleEXERCISE MATHOLEA command post exercise (CPX) to test rapid reactioncapability and develop SANDF doctrine and procedures inpeacekeeping. Prepare forces training exercise in 20<strong>07</strong>EXERCISE MATHOLESANDF joint Peacekeeping Operations exercise (FieldTraining Exercise) to test and evaluate doctrine on PeacesupportOperationsEXERCISE OXIDE (GERANIUM)To enhance the preparedness <strong>of</strong> the SANDF to rendersupport to the <strong>Department</strong> <strong>of</strong> Transport in search and rescueoperations in conjunction with French Forces based inLa Reunion as per MOUEXERCISE EMEXTo render support to the National Nuclear Regulator indealing with a nuclear incident at Koeberg Nuclear plant asrequired by legislationEXERCISE AFFIXTo render support to the Airports Company <strong>of</strong> South Africain dealing with aircraft disasters at SA airports, as requiredby legislationAchievementThree exercises to rehearse action related to contingencieswere executed as planned.This exercise was integrated with other planned exercises toensure effective communication skills and radio procedures.The exercise was cancelled owing to the non-availability <strong>of</strong>force structure elements. The focus will be placed on planningand preparing <strong>of</strong> forces for Exercise NDLOVU plannedfor 2009.The exercise was cancelled owing to non-availability <strong>of</strong> forcestructure elements. The focus will be placed on planning andpreparing <strong>of</strong> forces for Exercise NDLOVU planned for 2009.The exercise was cancelled due to unavailability <strong>of</strong> FrenchForces. The last exercise was conducted in May 2005.Military observers attended the exercise at Koeberg Nuclearplant in March <strong>2006</strong>. Different scenarios were simulatedwhereby types <strong>of</strong> contingencies were confirmed and action tobe taken rehearsed.Military observers attended the exercise at O.R. TamboInternational Airport in March <strong>2006</strong>. Different scenarios weresimulated and contingencies were confirmed and rehearsed.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 49
Table 3.3: Multinational Exercises for the FY<strong>2006</strong>/<strong>07</strong>Exercise and TypeAchievementForce Employmentchapter 3Exercise AIR BORNE AFRICAAirborne forces competitionExercise BELL BUOYMilitary (naval) control <strong>of</strong> merchant shipping in times <strong>of</strong>emergency (Indian Ocean)Exercise TRANSOCEANICMilitary (naval) control <strong>of</strong> merchant shipping in times duringemergencies in participation with South American countries(South Atlantic Ocean)Exercise INTEROP EAST and WESTNaval exercise with Africa countries on the East and Westcoast <strong>of</strong> Africa to build trust, capacity and capability in theNavies in the SADC RegionExercise BOURBONA combined search and rescue exercise between theDOD, <strong>Department</strong>s <strong>of</strong> Tourism and Environmental Affairs,as well as French Forces in La ReunionExercise COMBINED ENDEAVOURPartnership for peace communications and informationsystems' technical demonstrationExercise AFRICA ENDEAVOURAfrican communications and information systems interoperabilityexerciseEXERCISE ATLASURMaritime exercises between SA Navy and South Americancountries to enhance multinational conventional naval warfarecapabilities in the South Atlantic OceanExercise BLUE RUVUMAA humanitarian relief exercise based on a flood disasterscenario in one <strong>of</strong> the SADC member statesThis exercise was cancelled as no host nation for the exercisecould be found.The maritime exercise was conducted with the Navies <strong>of</strong>Uruguay, Brazil and Argentina. All the objectives for the exercisewere met. The exercise took place in Brazil inSeptember <strong>2006</strong>.Exercise TRANSOCEANIC took place from 14 to 25 August inSouth Africa. Participating countries were Brazil, Argentina,Uruguay and SA. SA Navy Reserve teams stationed at thesix main ports <strong>of</strong> SA participated in this exercise. All objectiveswere met.INTEROP EAST was conducted as part <strong>of</strong> Exercise BOUR-BON from 28 October to 14 November <strong>2006</strong>. Owing to theoperational commitments <strong>of</strong> the SA Navy the force structureswere changed at very short notice. No helicopters weredeployed as originally planned owing to the SA Navy's operationalcommitments.INTEROP WEST took place in <strong>2006</strong>. SAS AMATOLA visitedfour African countries: Nigeria, Cameroon, Gabon and SãoTomé. Participated in Nigerian Navy Presidential FleetReview to mark their 50th anniversary. All objectives weremet.This exercise was conducted as part <strong>of</strong> Exercise INTEROPEAST. The exercise took place at Reunion from 29September to 14 November <strong>2006</strong> with the French IndianOcean Navy. The objectives <strong>of</strong> the exercise were achieved.The same vessels were utilised in both exercises.The multinational interoperability exercise took place duringMarch, May, September and November <strong>2006</strong>, and Januaryand March 20<strong>07</strong>. The exercise was executed in Georgia,Germany, the Netherlands, Armenia, Slovakia and theUkraine. 24 members <strong>of</strong> the Command Management andInformation System Division were involved in the planning andexecution <strong>of</strong> the exercise. All objectives were met.The Command Management and Information System (CMIS)Division conducted the African interoperability exercise in July<strong>2006</strong> at Wonderboom Military Base. Planning was done inNovember <strong>2006</strong> and January 20<strong>07</strong> to host the secondExercise AFRICA ENDEAVOUR in South Africa in July 20<strong>07</strong>.The United States European Command (USEUCOM) invitedmost SADC countries to participate. The result was to establishthe SADCBRIG interoperability.The maritime exercise took place in Uruguay from 28 Octoberto 7 November <strong>2006</strong>. The SA Navy, as well as Uruguayan,Brazilian and Argentinean Navies participated. All the objectivesfor the exercise were met.The SA Air Force conducted the exercise in Tanzania supportedby other Services and Divisions. The exercise took placefrom 9 to 13 October <strong>2006</strong>. All objectives were met.programme 850DEPARTMENT OF DEFENCE
Table 3.4: Training Support to Foreign Forces during the FY<strong>2006</strong>/<strong>07</strong>Exercise Name and TypeExercise ACE 06Parachute training by the United Kingdom Armed ForcesExercise DORSAYArtillery precision guided missile training with SingaporeArmed ForcesEX Diamond Cutter/African ThornSupport to UK Armed Forces exercise at LohatlhaAchievementThis exercise was cancelled. The UK Armed Forces indicatedthat they did not have a requirement for the continuation <strong>of</strong>this exercise. The SANDF's role in the exercise was to providelogistical support to the UK Forces.The SA Army successfully supported the Singapore ArmedForces from 10 August <strong>2006</strong> to 12 February 20<strong>07</strong>. A total <strong>of</strong>298 Singapore Armed Forces and 50 SANDF members wereinvolved. The support was provided against repayment.The SA Army successfully supported UK Armed Forces inJanuary 20<strong>07</strong> at the SA Army Combat Training Centre. Thesupport was provided against repayment.PERFORMANCE AND SERVICE DELIVERY IMPROVEMENTDetail <strong>of</strong> the Force Employment Programme performance and service delivery improvement reflected in Table 3.5.Table 3.5: Performance and Service Delivery Improvement for the FY<strong>2006</strong>/<strong>07</strong>ActivitiesPlanned ManagementInterventionAnticipated BenefitStatusAchievementIncreasing number<strong>of</strong> operators qualifiedper year byintroducing a secondtraining cycleTransfer responsibilitiesto otherState <strong>Department</strong>sto ensure a smoothtransition <strong>of</strong> functionswhere theDOD plays asupport roleIntroduce an additionaltraining cycle peryearTo use existing forumsto improve interdepartmentalcooperationand to ensure reimbursementwhere supportwas providedAchieve targets forqualified operatorsEnsure that forcesare employed optimallywithout strainon resourcesTwo training cyclesper yearOngoingFirst phase <strong>of</strong> exit <strong>of</strong>17 Army TerritorialReserve units completedOnly one cycle was completed.One cycle was cancelledowing to a lack <strong>of</strong> learners.The lack <strong>of</strong> learners was theresult <strong>of</strong> the non-availability <strong>of</strong>recruited members.The Joint Operations Divisionis part <strong>of</strong> the team addressingthe phased withdrawal.Detailed report under theLandward Programme.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 51
SERVICES SCALED DOWN, SUSPENDED OR ABOLISHEDDetails <strong>of</strong> the Joint Operations Division's services that were scaled down, suspended or abolished during the FY<strong>2006</strong>/<strong>07</strong>are reflected in Table 3.6.Table 3.6: Services Scaled Down, Suspended or Abolished during the FY<strong>2006</strong>/<strong>07</strong>Reduction in Output(Quantity and Quality)Reason for Scalingdown/Suspension/AbolishmentImplicationsAchievementSubprogramme Operational DirectionDisengagement from theInternal security environmentSubprogramme Regional SecurityDecrease <strong>of</strong> force levels inBurundi (Operation FIBRE)SANDF Exit/SAPS EntryStrategyDisengage from orderedcommitments in support <strong>of</strong> the<strong>Department</strong> <strong>of</strong> Safety andSecurityUN mission in Burundi wasconducted successfully and iscurrently reaching conclusionSavings in the mediumtermResources to beutilised in newoperationsRegular Forces are redirectedaccording to the Force EmploymentStrategy.Operation FIBRE was terminatedafter the objectives were reached asset by the UN. Main RSA Forcesremained in Burundi after an agreementbetween South Africa and theGovernment <strong>of</strong> Burundi through aLetter <strong>of</strong> Assistance. The new operationwill be known as OperationCURRICULUM.programme 8chapter 3Force Employment52DEPARTMENT OF DEFENCE
Chapter FourPROGRAMME 2 -LANDWARD DEFENCEa nationalpartnershipto build abetter lifefor allDEPARTMENT:DEFENCEOVERVIEWThe FY<strong>2006</strong>/<strong>07</strong> was characterised bytremendous challenges for the SAArmy, but was also a year <strong>of</strong>achievements. The SA Army is thelargest contributor <strong>of</strong> forces to thevarious missions by the SANDF tosupport Government initiatives.Landward forces were thus in theforefront <strong>of</strong> South African efforts topromote peace, security and stability tothe region, our continent and to supportthe people <strong>of</strong> our country.The changing nature <strong>of</strong> demands and theassociated challenges for the SA Army tomeet the expectations <strong>of</strong> Government andsociety are ever increasing. These challengeshave been thoroughly exploredand examined in the Strategic Pr<strong>of</strong>ile <strong>of</strong>the SA Army as defined in the SA ArmyFuture Vision, which was completed duringthe period under review. The SAArmy Future Vision is a key strategicdocument as it defines the posture <strong>of</strong> theSA Army, its strategic pr<strong>of</strong>ile, the strategicdesired effects and the capabilitiesrequired.In terms <strong>of</strong> operations, the SA Army successfullyprovided forces for 11 externaloperations, while simultaneously providingforces for three internal operations.The forces reflected the "Core-Growth-One-Force Concept" as two Reserve companiesand combat support elementswere deployed externally to enhance therequired force levels. Furthermore, twoReserve companies were employed ininternal operations. A total <strong>of</strong> 4 638Infantry Army Conventional Reservemembers were utilised for external andinternal deployments, administrationand guard duties.Force preparation <strong>of</strong> landward capabilitiesremains the core business <strong>of</strong> the SAArmy and in this area the SA Army alsoachieved remarkable results. The forcepreparation cycle <strong>of</strong> new recruits fromthe January 2005 Military SkillsDevelopment System (MSDS) intake,was successfully concluded in two forcetraining exercises, namely ExerciseSEBOKA, a brigade-size conventionalexercise, and Exercise YOUNG EAGLE, abrigade minus size airborne exercise.The SA Army also supported the SAMilitary Health Service with ExerciseLANCET, the Singapore Armed Forceswith Exercise DORSAY and the BritishArmed Forces with Exercise AFRICANTHORNE.The first phase <strong>of</strong> modernisation <strong>of</strong> theSA Army was embarked upon. In theprocess <strong>of</strong> rejuvenating the SA Army,2 421 members <strong>of</strong> the January 2005 MSDSintake were appointed into the CoreService System as Regular members. Asignificant number <strong>of</strong> the members nowsuccessfully participate in externaldeployments. The SA Army, notwithstandingtremendous pressure on itsANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong>53
Landward <strong>Defence</strong>available resources, also commenced with the rejuvenation<strong>of</strong> the Army Conventional Reserve by transferringmore than a 1 000 volunteers from the Army TerritorialReserves to the Army Conventional Reserve. Of the allocated288 members <strong>of</strong> the January 2005 MSDS graduates,61 signed contracts and the SA Army Engineer Corpsrecruited and trained 56 members for the ArmyConventional Reserve. The Force Structure/Force Designwas adapted to be aligned with the <strong>Defence</strong> Update <strong>2006</strong>and the SA Army Future Vision. Regarding the equipment<strong>of</strong> the SA Army, the SA Army has commissioned asimulation system for the upgraded Armoured Car. TheArtillery Target Acquisition System is in the process <strong>of</strong>commissioning. The SA Army has also positioned itself inthis regard by concluding the plan for the modernisation<strong>of</strong> landward systems.The SA Army experienced tremendous challenges.During the year under review the personnel budget <strong>of</strong> theSA Army continued to absorb the budget so that onlyapproximately 11 per cent <strong>of</strong> the budget was available forChief <strong>of</strong> the Army to utilise at his discretion as operatingfunds. As a consequence, the SA Army had to adopt asurvival strategy. The SA Army has depleted its reservesand as a source <strong>of</strong> spare parts, is currently cannibalisingsome equipment to sustain forces. Consequently, theabove practice has resulted in standards <strong>of</strong> pr<strong>of</strong>iciencybeing decreased. Deteriorating facilities have resulted innon-compliance with the applicable Occupational Healthand Safety Regulations. This impacts negatively on theplanned MSDS intakes. The overutilisation <strong>of</strong> certainscarce skills in external and internal deployments has ledto a decline in job satisfaction and morale. The demandfor technical skills from the private sector also attractedmembers to the private sector, thus exacerbating the problem.The SA Army has developed an incentive scheme toretain some <strong>of</strong> these scarce skills. However, the schemecould not be implemented owing to lack <strong>of</strong> financialresources. The shortage <strong>of</strong> ammunition also contributedto a decrease in SA Army output.Notwithstanding the above challenges, the SA Army hasto a certain extent succeeded in minimising the downwardspiral <strong>of</strong> the SA Army regarding the maintenanceand sustainment <strong>of</strong> equipment by the judicious utilisation<strong>of</strong> its resources and reserves, limited rejuvenation <strong>of</strong> theRegular and Reserve components <strong>of</strong> the SA Army and,most importantly, positioning itself for the future by completingthe SA Army Future Vision. In this regard, certainconcepts like 'Train as we Fight' were introduced.PURPOSEThe Landward <strong>Defence</strong> Programme provides preparedand supported landward defence capabilities for thedefence and protection <strong>of</strong> South Africa.MEASURABLE OBJECTIVEDefend and protect South Africa by providing preparedand supported landward combat forces, services andfacilities that meet Government's requirements.OUTPUTSThe Landward Programme provides landward defencecapabilities for South Africa in the areas covered by its tensubprogrammes, namely:● Strategic Direction;● Infantry Capability;● Armour Capability;● Artillery Capability;● Air <strong>Defence</strong> Artillery Capability;● Engineer Capability;● Operational Intelligence Capability;● SA Army Command and Control Capability;● Support Capability; and● General Training Capability.OUTPUT DETAILTable 4.1: Landward <strong>Defence</strong> Programme Outputs for the FY<strong>2006</strong>/<strong>07</strong>During the period under review some amendments to theperformance measures and targets were effected. Details<strong>of</strong> the Landward <strong>Defence</strong> Programme outputs are shownin Table 4.1.chapter 4programme 254Output Performance Measure TargetSubprogramme Strategic DirectionAn Army Officecomprising C Armyand personnel plusone chief directoratefor Force Structure,Force Preparation,Corporate Servicesand InspectorGeneral ArmyEffective and efficientstrategic direction <strong>of</strong>the SA Army timelypromulgation <strong>of</strong> strategy,operational conceptsand guidelinesfor planningDEPARTMENT OF DEFENCEPromulgated strategy, operationalconcepts and guidelinesfor planningFormulated strategic businessplans, 'in-year' business plansand expenditure schedulesApproved quarterly, annual andstate <strong>of</strong> readiness reportsAchievementTarget fully achieved. Strategic guidancetowards achievement <strong>of</strong> SA Army missionsgiven time. The Strategic Pr<strong>of</strong>ile <strong>of</strong> theSA Army as defined in the SA Army FutureVision was completed.Target fully achieved. Plans and expenditureschedules were executed as required.Target fully achieved. <strong>Report</strong>s were submittedas required.
Table 4.1: Landward <strong>Defence</strong> Programme Outputs for the FY<strong>2006</strong>/<strong>07</strong> (Continued)Output Performance Measure TargetAchievementSubprogramme Infantry CapabilityCommand andControl CapabilityTraining CapabilityMechanised InfantryCapabilityParachute CapabilityDegree <strong>of</strong> achievementduring internal evaluationin Forma-tionHeadquarters on alladministrative aspectsDegree to which trainingis presented as plannedNumber <strong>of</strong> learningopportunitiesNumber <strong>of</strong> learnersqualifiedDegree to which trainingis presented as plannedLearning opportunitiesNumber <strong>of</strong> learnersqualifiedDegree to which trainingis presented as plannedLearning opportunitiesNumber <strong>of</strong> learnersqualifiedThe degree to which therequired force preparationrequirements, state<strong>of</strong> readiness and forceemployment requirementsare achievedThe degree to whichrequired force preparationrequirements, state<strong>of</strong> readiness and forceemployment requirementsare achievedFormation HeadquartersRequired standard <strong>of</strong> 80%during all evaluationsOne School <strong>of</strong> Infantry1297 <strong>07</strong>3One Mechanised trainingwing151 125One parachute training wing903 9361 SA Infantry Battalion61 Mechanised Battalion/8SA Infantry Battalion (Mustreorganise at Upington)Four mechanised battalions(Reserves - leader grouptraining)44 Parachute RegimentHeadquartersOne Parachute BattalionOne air-landed Battalion (6SA Infantry Battalion)One Parachute Battalion(Reserves)The Formation Headquarters achieved85% during all internal evaluations on alladministrative aspects.The School <strong>of</strong> Infantry presented 131learning opportunities. A total <strong>of</strong> 6 719learners qualified. As a result <strong>of</strong>increased training requirements in the formation,two more courses were scheduledand presented. The non-availability <strong>of</strong>members for training owing to operationaldeployments internally and externallyresulted in the training <strong>of</strong> fewer membersthan planned, hence the differencebetween the target (7 <strong>07</strong>3) and the actualachievement (6 719).Ten <strong>of</strong> the 15 planned learning opportunitieswere presented. Five (5) learningopportunities were cancelled owing to alack <strong>of</strong> nominations. Only 1 025 membersqualified.44 Parachute Regiment (ParachuteTraining Wing) presented 61 <strong>of</strong> theplanned 90 learning opportunities. A total<strong>of</strong> 29 learning opportunities were cancelledowing to a lack <strong>of</strong> nominations, theweather and availability <strong>of</strong> aircraft. Only2 755 members qualified.Achieved required state <strong>of</strong> readiness.61 Mechanised Battalion is closing downand in the process <strong>of</strong> reorganising atUpington.Leader group training was done successfullyas planned at SA Army training institutions.This included a section leaderscourse at 1 SA Infantry Battalion and an<strong>of</strong>ficers' and non-commissioned <strong>of</strong>ficertraining course at SA Army Gymnasium. Ingeneral these regiments have less than25% <strong>of</strong> their personnel and no equipment.The required state <strong>of</strong> readiness was notfully achieved. The marshalling team hasnot yet been fully established.The required state <strong>of</strong> readiness was notfully achieved. However, the peace supportrequirements were met. TheBattalion deployed in the Comoros for theelections and was on standby as Chief <strong>of</strong>the SANDF Reserve.6 SA Infantry Battalion was incorrectlyindicated as airborne infantry. It is part <strong>of</strong>the motorised infantry battalion, multiroledas an air landed battalion. Achievementsare reflected under Motorised Infantry.The Reserve Parachute Battalion did notmeet the required readiness levels owingto shortages <strong>of</strong> personnel and equipment.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 55
Table 4.1: Landward <strong>Defence</strong> Programme Outputs for the FY<strong>2006</strong>/<strong>07</strong> (Continued)Output Performance Measure TargetAchievementLandward <strong>Defence</strong>chapter 4programme 256Motorised InfantryCapabilityLight InfantryCapabilityThe degree to whichrequired force preparationrequirements, state<strong>of</strong> readiness and forceemployment requirementsare achievedThe degree to whichrequired force preparationrequirements, state<strong>of</strong> readiness and forceemployment requirementsare achievedSubprogramme Armour CapabilityCommand andcontrol CapabilityTraining CapabilityTank CapabilityDegree <strong>of</strong> achievementduring internal evaluationin FormationHeadquarters on alladministrative aspectsThe degree to whichtraining is presented asplannedNumber <strong>of</strong> membersqualifyingThe degree to whichrequired force preparationrequirements, state<strong>of</strong> readiness and forceemployment requirementsare achievedDEPARTMENT OF DEFENCEOne Air-landed Battalion(Reserves)Eight motorised infantrybattalions14 motorised infantry battalions(Reserves - leadergroup training)Three light infantry battalionsThree light infantry battalions(Reserves - leader grouptraining)Formation HeadquartersRequired standard <strong>of</strong> 80%during all evaluationsOne School <strong>of</strong> Armour88 learning opportunities2 809 qualifiedOne regiment minusOne regiment (Reserve -leader group training)The air-landed Reserve battalion is incorrectlyindicated as airborne infantry. It ispart <strong>of</strong> the motorised infantry battalionmulti roled as an air landed battalion.Achievements reflected under MotorisedInfantry.Achieved readiness requirements. 6 SAInfantry Battalion regular component didmultirole training in preparation for peacesupport deployment. The battalionsdeployed in peace support operations.Both 4 and 14 SA Infantry Battalions.deployed in the DRC, 5 SA Infantry Battalionin Burundi (Operation FIBRE) and 9SA Infantry Battalion in Operation CUR-RICULUM. 8 SA Mechanised InfantryBattalion deployed in a motorised role inthe Sudan, while 6 and 2 SA InfantryBattalions also deployed in the Sudan.Achieved readiness requirements. Nomultirole training has yet been done bythe Reserve component owing to resourcelimitations.118 SA Infantry Battalion is in the process<strong>of</strong> closing down. The other two battalionsare to convert to motorised infantry battalionsto be used as multirole battalions forinternal safety and security as well.Requirements were not fully achieved.However, readiness requirements forpeace support operations were met.The Reserve battalions achieved setrequirements. The leader group trainingwas done as planned at SA Army traininginstitutions. In general, these regimentshave less than 10% <strong>of</strong> its personnel andno equipment.The Formation Headquarters achieved80% during all internal and external evaluationsand administrative aspects.The School <strong>of</strong> Armour presented 83 <strong>of</strong> theplanned 88 learning opportunities. Fivewere cancelled owing to the lack <strong>of</strong>ammunition. A total <strong>of</strong> 1 851 learnersqualified. To improve quality, adjustmentswere made in terms <strong>of</strong> the ideal student -instructor's ratio, which reduced the number<strong>of</strong> training slots per course.The Regular Tank Regiment achieved50% <strong>of</strong> the requirements. No continuationtraining for primary function took placeowing to a lack <strong>of</strong> funding and ammunitionThe Reserve regiment achieved 30% <strong>of</strong>the target owing to a lack <strong>of</strong> Reservemembers. There is no feeding system forReserves.
Table 4.1: Landward <strong>Defence</strong> Programme Outputs for the FY<strong>2006</strong>/<strong>07</strong> (Continued)Output Performance Measure TargetAchievementArmoured CarCapabilityArmouredReconnaissanceCapabilityThe degree to whichrequired force preparationrequirements, state<strong>of</strong> readiness and forceemployment requirementsare achieved.The degree to whichrequired force preparationrequirements, state<strong>of</strong> readiness and forceemployment requirementsare achieved.Subprogramme Artillery CapabilityCommand andControl CapabilityArtillery Education,Training andDevelopmentCapabilityRegular core growthcapability(composite artillerycapability)Artillery MobilisationRegimentDegree <strong>of</strong> achievementduring internal evaluationin FormationHeadquarters on alladministrative aspectsThe degree to whichtraining is presented asplannedNumber <strong>of</strong> membersqualifyingThe degree to whichrequired force preparationrequirements, state<strong>of</strong> readiness and forceemployment requirementsare achievedThe degree to whichrequired force preparationrequirements, state<strong>of</strong> readiness and forceemployment requirementsare achievedOne regiment minusTwo regiments (Reserve -leader group training)One regiment (Reserve -leader group training)Formation HeadquartersRequired standard <strong>of</strong> 80%during all evaluationsSchool <strong>of</strong> Artillery95 learning opportunities2 404 learners qualified4 Artillery RegimentArtillery MobilisationRegimentThe Regular armoured car regimentachieved 50% <strong>of</strong> the requirements. Onearmoured car squadron was deployed forborderline protection on the Free State-Lesotho border.The Reserve regiments achieved 30% <strong>of</strong>the requirements owing to a lack <strong>of</strong>Reserves, as there is no feeding systemfor Reserves. The two regiment's leadergroup underwent formal and continuationtraining at Armour units.The Reserve regiments achieved 30% <strong>of</strong>the requirement owing to a lack <strong>of</strong>Reserves. There is no feeding system forReserves. The leader group underwentformal and continuation training at Armourunits and continuation training at Armourunits.The formation Headquarters achieved80% during all internal administrativeaspects evaluations.The School <strong>of</strong> Artillery presented 82 <strong>of</strong> theplanned 95 learning opportunities. 13learning opportunities were cancelled orrescheduled for the FY20<strong>07</strong>/08 owing to ashortage <strong>of</strong> prime mission equipment andinstructors. Two course support exercises(supported by 4 Artillery Regiment) werepresented as the practical part <strong>of</strong> the qualification<strong>of</strong> Artillery forces.Out <strong>of</strong> a total <strong>of</strong> 2 281 learners, 2 163qualified. Planned numbers were notachieved due to non-availability <strong>of</strong> learnersto take up all training slots as well asspecific corps and post requirements.4 Artillery Regiment achieved the requirements.However, prime mission equipmentremains a challenge due to a lack <strong>of</strong>funds. Continuation training was executedand forces participated in the SA ArmyExercises SEBOKA and YOUNG EAGLE.The Regiment provided two companies forinternal deployment.The Artillery Mobilisation Regiment did notachieve set requirements. The Regimentis earmarked for closure and its functionswould move to a prime mission equipmentwarehouse, which still has to be established.Some equipment and personnelnow serve as a cornerstone for the newwarehousing concept under investigation.The investigation by the Army is not yetcomplete resulting in a 5% achievementtowards an ideal SA Army Warehousing.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 57
Table 4.1: Landward <strong>Defence</strong> Programme Outputs for the FY<strong>2006</strong>/<strong>07</strong> (Continued)Output Performance Measure TargetAchievementReserve core growthcapability (compositeartillery regiment)The degree to whichrequired force preparationrequirements, state<strong>of</strong> readiness and forceemployment requirementsare achieved.Composite Artillery Regiment(Five Reserve Units) 1The set requirements were not achieved.The decreasing human and financialresources resulted in the Artillery ReserveRegiments' being below the critical massin terms <strong>of</strong> survival in the medium term.Initiatives were taken to recruit ArmyTerritorial Reserve members into the ArmyConventional Reserve. The School <strong>of</strong>Artillery presented formal training toReserves and a total <strong>of</strong> 111 membersqualified.Subprogramme Air <strong>Defence</strong> Artillery CapabilityLandward <strong>Defence</strong>chapter 4Command and controlcapabilityAir <strong>Defence</strong> Artillerytraining capabilityComposite Air<strong>Defence</strong> ArtillerycapabilityAir <strong>Defence</strong> ArtillerymechanisedcapabilityAir <strong>Defence</strong> Artillerymobile capabilityDegree <strong>of</strong> achievementduring internal evaluationin FormationHeadquarters on alladministrative aspectsThe degree to whichtraining is presented asplannedNumber <strong>of</strong> membersqualifyingThe degree to whichrequired force preparationrequirements, state<strong>of</strong> readiness and forceemployment requirementsare achievedThe degree to whichrequired force preparationrequirements, state<strong>of</strong> readiness and forceemployment requirementsare achievedThe degree to whichrequired force preparationrequirements, state<strong>of</strong> readiness and forceemployment requirementsare achievedFormation HeadquartersRequired standard <strong>of</strong> 80%during all evaluationsSchool <strong>of</strong> Air <strong>Defence</strong>Artillery 32 learning opportunities620 learners qualifiedOne Air <strong>Defence</strong> Artillery regimentLeader group for battery(Three reserve force structureelements as sources <strong>of</strong>manpower)One air defence artillery battery(Reserves)The Formation Headquarters achieved100% during all internal evaluations on alladministrative aspects.The School <strong>of</strong> Air <strong>Defence</strong> Artillery presented30 <strong>of</strong> the 32 planned learningopportunities. Two learning opportunitieswere cancelled due to a shortage <strong>of</strong> fundsand delay in the commissioning <strong>of</strong> theground- based air defence system phase1. Therefore only 710 learners attendedwith a pass rate <strong>of</strong> 95%.The role <strong>of</strong> the Composite Air <strong>Defence</strong>Artillery was changed to that <strong>of</strong> a MobileAir <strong>Defence</strong> Artillery capability, as the SAArmy has no mechanised capability,resulting from the phasing out <strong>of</strong> themechanised Air <strong>Defence</strong> Artillery equipment.The Mechanised Capability will bereinstated with Phase 4 <strong>of</strong> the GroundbasedAir <strong>Defence</strong> System. The requirementswere 70% achieved owing to a lack<strong>of</strong> prime mission equipment. The regimentwas internally deployed in borderlinecontrol operations on the Zimbabweanand Botswana borders.The existing capability was decommissionedas a result <strong>of</strong> the Air <strong>Defence</strong>Artillery equipment's being phased out.This capability must be reinstated bymeans <strong>of</strong> the Ground-based Air <strong>Defence</strong>System Phase 4.The target was 80% achieved. The batteryis now manned, but the lack <strong>of</strong> primemission equipment and B-vehiclesremains a challenge. This capability isundergoing a major intervention and conversiontraining is in process. The leadergroup is being trained. The MSDS doesnot provide sufficient numbers to fullycapacitate the Reserves.programme 2581The target was rephrased and includes subordinate elements.DEPARTMENT OF DEFENCE
Table 4.1: Landward <strong>Defence</strong> Programme Outputs for the FY<strong>2006</strong>/<strong>07</strong> (Continued)Output Performance Measure TargetAchievementSubprogramme Engineering CapabilityCommand andcontrol capabilityEngineer trainingcapabilityField engineercapabilityEngineer combatsupport capabilityEngineer terrainIntelligencecapabilityOperational constructioncapabilityDegree <strong>of</strong> achievementduring internal evaluationin FormationHeadquarters on alladministrative aspectsThe degree to whichtraining is presented asplannedNumber <strong>of</strong> membersqualifyingThe degree to whichrequired force preparationrequirements, state<strong>of</strong> readiness and forceemployment requirementsare achievedThe degree to whichrequired force preparationrequirements, state<strong>of</strong> readiness and forceemployment requirementsare achievedThe degree to whichrequired force preparationrequirements, state<strong>of</strong> readiness and forceemployment requirementsare achievedThe degree to whichrequired force preparationrequirements, state<strong>of</strong> readiness and forceemployment requirementsare achievedSubprogramme Operational IntelligenceFormation HeadquartersRequired standard <strong>of</strong> at least80% during all evaluationsSchool <strong>of</strong> Engineers46 learning opportunities1 200 learners qualifiedOne field engineer regimentOne field engineer regiment(Reserve leader group training)One Regular/Reservecombat engineer supportcapabilityOne tactical terrain intelligenceregimentOne tactical terrain intelligencesquadron (Reserve)One construction regimentOne construction regiment(Reserve - in planning)The Formation Headquarters achieved80% during internal evaluation on alladministrative aspects.The School <strong>of</strong> Engineers presented a total<strong>of</strong> 65 learning opportunities. 21 additionalopportunities, which include 3 constructionmachine operators' courses under theauspices <strong>of</strong> the School <strong>of</strong> Engineers at 1,Construction Regiment were presented tomeet critical requirements. Of the 1 069learners, 886 qualified.Regular and Reserve regiments met theset requirements. The health status <strong>of</strong>members is a concern for external deployments.The Regiment deployed externallyin the DRC and Burundi (OP MISTRAL).In the Sudan the regiment deployed formine clearance. In the Comoros itdeployed to provide support during electionsand in Mozambique for water purificationas well as during the explosion <strong>of</strong>the ammunition depot. Reserve Leadergroup attended formal courses at School<strong>of</strong> Engineers and other SA Armyadvanced training institutions.The set requirements were achieved. TheEngineer Support Capability supportedboth Exercises SEBOKA and YOUNGEAGLE. It also provided support as adeeper level capability for both internaland external deployments.The set targets were 80% achieved. Theamalgamation <strong>of</strong> 4 Survey and MappingRegiment with 1 Military Printing Regt hasnot been completed owing to a lack <strong>of</strong>funds. It would be addressed in the shortto medium term. The capability providednine Geographic Information Systemteams in all internal deployments and alsoserved as a deeper-level capability for allSANDF deployments ito drawing andprinting <strong>of</strong> maps (internally and externally).The set targets were achieved. The capabilityprovided operational construction forall internal and external deployments andmaintenance <strong>of</strong> operational bases internallyand externally.Command and controlcapabilityDegree <strong>of</strong> achievementduring internal evaluationin FormationHeadquarters on alladministrative aspectsRequired standard <strong>of</strong> 80%during all evaluationsAchieved 80% during internal evaluationon all administrative aspects.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 59
Table 4.1: Landward <strong>Defence</strong> Programme Outputs for the FY<strong>2006</strong>/<strong>07</strong> (Continued)Output Performance Measure TargetAchievementIntelligence trainingcapabilityTactical IntelligenceThe degree to whichtraining is presented asplannedNumber <strong>of</strong> membersqualifyingThe degree to whichrequired force preparationrequirements, state<strong>of</strong> readiness and forceemployment requirementsare achievedSchool <strong>of</strong> TacticalIntelligence30 learning opportunities835 learners qualifiedOne tactical intelligence regimentTwo tactical intelligencesquadrons (Reserve - leadergroup training)The School <strong>of</strong> Tactical Intelligence presented31 learning opportunities (includingfour learning opportunities for 67 MSDSmembers) but fewer learners qualified.Only 686 learners qualified owing to alack <strong>of</strong> nominations and operationaldeployments.1 Tactical Intelligence Regiment did notfully meet set requirements owing to alack <strong>of</strong> prime mission equipment, B-vehiclesand ammunition. The health status <strong>of</strong>the members remains a concern. Continuationtraining took place with participationin Exercise SEBOKA. The regimentdeployed internally as well as externally inpeacekeeping operations. The staffing <strong>of</strong>Reserves in planning posts remains achallenge as age and health requirementswere not met. (refer to PCD feedback)Subprogramme SA Army Command and Control CapabilityCommand and controlcapability foroperational activitiesDegree to which theforce employmentrequirements areachievedTwo brigade headquarterseach to provide four tacticalgroupings for two groupingsto deploy annually, othertwo on leave and forcepreparationThe two brigades fully achieved the target.43 SA Brigade Headquarters providedcommand and control for Exercise IRONEAGLE while 46 SA Brigade Headquartersprovided command and control forExercise SEBOKA. The two brigades alsoprovided personnel for command and controlto external operational structures.Landward <strong>Defence</strong>chapter 4programme 260Subprogramme Support CapabilityCommand and controlcapabilityGeneral supportcapabilitySupport capability toensure technical andlogistical sustainment<strong>of</strong> deployedforcesDegree <strong>of</strong> achievementduring internal evaluationin FormationHeadquarters on alladministrative aspectsDegree <strong>of</strong> achievementduring internal evaluation2The degree to whichrequired force preparationrequirements, state<strong>of</strong> readiness and forceemployment requirementsare achievedDEPARTMENT OF DEFENCEFormation HeadquartersRequired standard <strong>of</strong> 80%during all evaluations14 General Support Bases70% client satisfaction performanceaccording to planTwo maintenance unitsTwo maintenance units(Reserve - leader grouptraining)Two field workshopsTwo field workshops(Reserve)The formation headquarters achieved80% during internal evaluations on alladministrative aspects.The 14 SA Army general support basesachieved the target with respect to supportformal training, internal operations,and force preparation for internal andexternal operations, and support to multinationalexercises. The support however,was not optimal due to various constrainingfactors such as a shortage <strong>of</strong> personneland equipment, and low serviceability<strong>of</strong> vehicles.The whole support capability was underreview to return certain functions back tothe SA Army. Implementation <strong>of</strong> thestructure will continue in the FY20<strong>07</strong>/08.The Regular maintenance units did notachieve set requirements owing to a lack<strong>of</strong> prime mission equipment. Reservemaintenance units are not yet transferredfrom the DOD Logistics Agency to the SAArmy. Regular field workshops did notmeet set requirement owing to a lack <strong>of</strong>prime mission equipment. Technical2General Support Bases not structured to deliver support as required to both force structure elements and operational deployments.This includes the eroded Technical Support Corps capability.
Table 4.1: Landward <strong>Defence</strong> Programme Outputs for the FY<strong>2006</strong>/<strong>07</strong> (Continued)Output Performance Measure TargetAchievementServices Training School and Reservefield workshops will be transferred fromthe DOD Logistic Agency to the SA Armywith effect from 1 April 20<strong>07</strong>.The National Ceremonial Guard supported65 ceremonial activities, thereby fully metthe requirement. This includes providingan escort and a leading detachment forstate funeral services, and guards <strong>of</strong> honourfor important state ceremonies, suchas visiting heads <strong>of</strong> state in an nationalevent like the Youth Day celebrations.Ceremonial servicesDegree <strong>of</strong> achievementduring internal evaluationNational Ceremonial GuardCeremonial cervices inaccordance with requirementsSubprogramme General Training CapabilityCommand andcontrol capabilityCommand andmanagementtrainingLandward commontraining capabilityCommon juniorleader trainingTraining depotcapability to trainnew recruits in basicmilitary skillsDegree <strong>of</strong> achievementduring internal evaluationin FormationHeadquarters on alladministrative aspectsThe degree to whichtraining is presented asplannedDesired course contentand through-put basedon SA Army CareerDevelopment PlanThe degree to whichtraining is presented asplannedDesired course contentand through-put basedon SA Army CareerDevelopment PlanThe degree to whichtraining is presented asplannedDesired course contentand through-put basedon SA Army CareerDevelopment PlanThe degree to whichtraining is presented asplannedDesired course contentand through-put basedon SA Army CareerDevelopment PlanFormation HeadquartersRequired standard <strong>of</strong> 70%during all evaluationsSA Army CollegeTwo Joint Command andStaff Duties opportunities200 <strong>of</strong>ficers qualifiedCombat Training Centre25 learning opportunities830 learnersSA Army Gymnasium18 learning opportunities1 825 learners3 SA Infantry Battalion1 800 new recruits qualifiedin basic military skills12 learning opportunities1 200 learnersThe Formation Headquarters achieved100% during internal evaluations on alladministrative aspects.The SA Army College presented twolearning opportunities and 197 learnersqualified.The SA Army Combat Training Centre presented23 learning opportunities. Twoopportunities were cancelled owing to nonominations. Unplanned escalation <strong>of</strong>learner numbers owing to bigger SA Armyrequirement that resulted in 959 learnersbeing trained.The SA Army Gymnasium presented 15learning opportunities. Four opportunitieswere cancelled, but one unplanned bridgingtraining course for senior <strong>of</strong>ficers waspresented. Three opportunities were cancelledowing to unavailability <strong>of</strong> instructorsat the College <strong>of</strong> Education (COLET). Atotal <strong>of</strong> 1 466 learners were trained owingto fewer nominations received and fewerlearning opportunities used.3 SA Infantry Battalion presented 12learning opportunities. A total <strong>of</strong> 2 015new recruits (MSDS members) weretrained. The increase <strong>of</strong> MSDS membersis a result <strong>of</strong> a command decision andreprioritisation. A total <strong>of</strong> 1 009 learnerswere trained, including 53 Reserves.Fewer learners were nominated thanplanned.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 61
LANDWARD DEFENCE PROGRAMME: OUTPUTS OF SPECIFIC POLICYOPTIONS WHERE ADDITIONAL FUNDS WERE ALLOCATEDDetails <strong>of</strong> the Landward <strong>Defence</strong> Programme with regard to outputs <strong>of</strong> specific policy options where additional fundswere allocated during the FY<strong>2006</strong>/<strong>07</strong> are reflected in Table 4.2.Table 4.2: Landward <strong>Defence</strong>: Outputs <strong>of</strong> Specific Policy Options where Additional Fundswere allocated during the FY<strong>2006</strong>/<strong>07</strong>Policy OptionAllocation(R'000)TargetPerformance Against TargetAchievementLandward <strong>Defence</strong>Military SkillsDevelopmentSystemOperational vehiclemaintenanceRejuvenation <strong>of</strong>Reserve Force92 700150 0003 000Rejuvenate SA Armywith 3 000 MSDSmembersOperational B Vehiclematerial readiness:60%Force preparation BVehicle materialreadiness: 30%Average B vehiclematerial readiness:36%Establishment <strong>of</strong>Technical SupportCorps capability: 30%establishedPre-deploymenttraining and externaldeployment <strong>of</strong> 2Reserve companies3 000 members were trained in the 1st year <strong>of</strong> MSDS training.Funding was utilised for the first year training <strong>of</strong> MSDSmembers, which covers basic training (6 months at trainingdepot, 3 SA Infantry Battalion and functional training at differentcorps schools). The second year is utilised for operationaldeployment.To sustain the current B-vehicle fleet availability at 40%, asa result <strong>of</strong> ageing <strong>of</strong> the vehicle fleet. The results in morebreakdowns than expected. The amount <strong>of</strong> R111 647 900was spent.30% achieved to enable support to force preparationrequirements.36% <strong>of</strong> the total vehicle fleet required in the force designcould be provided for Force Preparation and operationalemployment.Tools for the technical support capability, light workshopsand workshops were procured to the value <strong>of</strong> R16 790 000.The amount <strong>of</strong> R6 941 566 was spent on technical supportvehicle maintenance and repair as well as equipment.The amount <strong>of</strong> R14 620 504 was spent on the upgrading <strong>of</strong>facilities at 101 and 102 Field Workshop, the upgrading <strong>of</strong>IT equipment for use by the Technical Support Corps andthe procurement <strong>of</strong> workshop equipment.Two reserve companies and combat support as well as supportelements deployed. Only two reserve companies wererequired. Additional combat support and support elementsin support <strong>of</strong> the two companies were deployed externally.LANDWARD DEFENCE PROGRAMME SPECIFIC EXERCISESCONDUCTED DURING THE FY<strong>2006</strong>/<strong>07</strong>Details <strong>of</strong> the SA Army specific exercises conducted during the FY<strong>2006</strong>/<strong>07</strong> are reflected in Table 4.3.Table 4.3: SA Army Specific Exercises Conducted during the FY<strong>2006</strong>/<strong>07</strong>chapter 4programme 262Exercise Name and TypeExercise AFFIXAirline disaster - 1 X companyExercise SEBOKAConventional - 1 X brigadeExercise YOUNG EAGLESANDF Reserve contingencies - 1 airborne brigade minusDEPARTMENT OF DEFENCEAchievementThe SA Army provided a parachute company to Chief <strong>of</strong> JointOperations.The exercise was executed at the SA Army combat TrainingCentre over the period 14 to 18 November <strong>2006</strong>. The finalphase <strong>of</strong> MSDS Integrated Conventional training was completed.The exercise was executed at De Brug in Bloemfontein overthe period 14 to 18 November <strong>2006</strong>. A parachute battaliongroup and an air-landed battalion participated. The finalphase <strong>of</strong> MSDS integrated Airborne Operations training wascompleted.
Table 4.3: SA Army Specific Exercises Conducted during the FY<strong>2006</strong>/<strong>07</strong> (Continued)Exercise Name and TypeExercise AIRBORNE AFRICAAirborne competition: 2 X parachute teamsExercise EMEXNuclear disaster - 1 X companyUnit ExercisesConventional and Peace Support Operations continuitytraining to confirm basic and tactical soldering skills - battalions/companiesAchievementThe SA Army provided two parachute teams and support tothe Chief <strong>of</strong> Joint Operations.The SA Army supported the SA Military Health Service exerciseby providing one infantry subunit.All Regular as well as selected Reserve structure elements(leadership training) executed continuation training. Subunittraining took place at unit locations and unit training at the SAArmy Combat Training Centre. Continuation training providesthe required force levels for external and internal deploymentsand the establishment/maintenance <strong>of</strong> a Core GrowthRegular/Reserve conventional capability.PERFORMANCE AND SERVICE DELIVERY IMPROVEMENTDetails <strong>of</strong> performance and service delivery <strong>of</strong> the Landward Programme are reflected in Table 4.4.Table 4.4: Performance and Service Delivery Improvement during the FY<strong>2006</strong>/<strong>07</strong>ActivitiesPlannedManagementInterventionAnticipatedBenefitStatusActualAchievementSubprogramme General Training CapabilityAll chief directors, directorsand general <strong>of</strong>ficerscommanding participatedin a learning opportunityfacilitated by FinancialCommittee Chair and SAArmy Budget Manager.PFMA and NationalTreasury-related financialaspects were addressedDetailed appreciation <strong>of</strong>captured audiences andother role players thatinfluence the functioning<strong>of</strong> the SA ArmySenior managementfinancial learningopportunityOne day learningopportunity once ayear in AprilSenior members <strong>of</strong>the SA Army able toimplement relevantregulations andmanage financesaccordinglyPlanned for April<strong>2006</strong>. Firstlearning opportunitycompleted inApril 200590% <strong>of</strong> the target group wasreached.Detailed inventory check<strong>of</strong> existing InformationTechnologyDetailed staff work todetermine realisticrequirements and prioritiesDetailed inventory check<strong>of</strong> existing vehiclesDetailed staff work willdetermine realistic requirementsand prioritiesCorporateCommunicationMaster PlanInformationTechnology MasterPlan to beimplementedVehicle Master Planto be implementedImprovedcommunication withall publicsEffective use <strong>of</strong>available resourcesand productive procurement<strong>of</strong> newhardwareImprovement <strong>of</strong>serviceability andoptimised utilisation<strong>of</strong> available vehiclesCurrentCurrentCurrent80% achievement. <strong>Defence</strong>Industry together with variousother units <strong>of</strong> the SA Armywere successfully addressed.within the year under review.Lack <strong>of</strong> funds prevented fullimplementation <strong>of</strong> the Plan.80% achievement.Information Technology equipmentwas managed accordingto the Master Plan.Insufficient financial resourceswere allocated against thePlan resulting in formationsutilising own budgets to implementthe Plan.Vehicle Master Plan implementedand procurement wascompleted. However, poorservice from the vehicle industryaffected the procurementprocess negatively.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 63
Table 4.4: Performance and Service Delivery Improvement during the FY<strong>2006</strong>/<strong>07</strong> (Continued)ActivitiesPlannedManagementInterventionAnticipatedBenefitStatusActualAchievementReview alignment <strong>of</strong> policies,performance managementand performanceagreementsControl system to confirmcredibility <strong>of</strong> Human Resourcesplanning by subordinatebudget holdersControl system to preventoverspending by budgetholders on items such asS&T and leaveInvestigation to confirmthe relevance andrequirementApproval by relevantauthoritiesImplementationImprovement <strong>of</strong>performanceagreementsIncreased focuson Item 10 (HumanResources)managementSA Army Vision2020 to be implementedInstitutionalisation<strong>of</strong> performancemanagement andallocated responsibilityand accountabilityReduction in doublebudgeting.Control over discretionaryfunds, thussaving incurredsurplus funds atend <strong>of</strong> financial yearcan thus be utilisedin operating budget.All activities <strong>of</strong> theSA Army arefocussed, integratedand directedtowards a visibleand structuredfuture.Limited resourcesare maximallyoptimisedCurrentCurrentTo be implementedduring <strong>2006</strong>,pending approvalby relevant bodies90% <strong>of</strong> the performanceagreements for Level 2 and 3were aligned with Chief <strong>of</strong> theSA Army required output andPublic Finance ManagementAct. The process would berepeated to achieve 100%.90% <strong>of</strong> the target group andexpectations in accuracy <strong>of</strong>the Item 10 budget werereached.The year was utilised to informall relevant role players on thestrategy, the finalisation <strong>of</strong> theplan and the alignment <strong>of</strong> thestrategy with <strong>Defence</strong> Update<strong>2006</strong>.Engineer CapabilityLandward <strong>Defence</strong>chapter 4Execute approved projectmissionImplement projectRoad show to institutionaliseresultant visionSupport CapabilityInvestigation to confirmrequirements, budget andimplementationLaunch own"Military Works Unit"to facilitate management/maintenanceRe-establish hospitabilityservicesCritical maintenancedone underSA Army controlReduction inOccupational Healthand Safety risksLimited funds maximallyutilised accordingto prioritiesSaving on contractorfeesControl overfunctionIncreased supportto all force structureelements, bothunder training anddeployedInvestigation inprocess, to befinalised by end<strong>of</strong> FY<strong>2006</strong>/<strong>07</strong>Investigation inprocess, to befinalised by end<strong>of</strong> FY<strong>2006</strong>/<strong>07</strong>This concept and the "DODWorks Regiment" have to bealigned. Investigation results<strong>of</strong> DOD Works Regiment projectteam are awaited.Actual target was reached inaccordance with guidelinesfrom Chief <strong>of</strong> the Army and theArmy Council. 13 previouslyprivatised messes were militarised.Organisation andWorkstudy investigations areproceeding. All messes are tobe militarised by December2008.programme 264DEPARTMENT OF DEFENCE
Table 4.4: Performance and Service Delivery Improvement during the FY<strong>2006</strong>/<strong>07</strong> (Continued)ActivitiesPlannedManagementInterventionAnticipatedBenefitStatusActualAchievementInvestigation to confirmrequirements, budget andimplementationDetail human resourcesappreciationLiaison with DODfunctionariesProcurement <strong>of</strong> informationtechnologyRe-establishtechnical servicescorpsRejuvenation <strong>of</strong>procurement centresby means <strong>of</strong> informationtechnologyand staffingSaving oncontractor feesControl overfunctionIncreased supportto all force structureelements, bothunder training anddeployedTurnover time andaccuracy <strong>of</strong> procurementtransactionsgreatlyenhancedSA Army in positionto adhere toplanned cash flowand procurementInvestigation inprocess, to befinalised by end<strong>of</strong> the FY<strong>2006</strong>/<strong>07</strong>CurrentInvestigation finalised.Awaiting Ministerial approvalfor the expansion <strong>of</strong> Levels 2,3 and 4 structures <strong>of</strong> the technicalsupport capability isawaited. Structures previouslyunder command <strong>of</strong> Chief <strong>of</strong>Logistics have been transferredto the SA Army witheffect from 1 April 20<strong>07</strong>.Workshop equipment, specialtools and toolboxes have beenpurchased and facilities and ITnetworks have been upgraded.Continuous staffing <strong>of</strong>critical technical support capabilityvacant posts takes place.Reserves field workshop commandersare involved in theestablishment <strong>of</strong> the fieldworkshops in the Army.Awaiting Ministerial approvalfor the redesignedProcurement Centre structureis awaited. Clients <strong>of</strong> ArmySupport bases assist procurementcentres in obtaining quotations.POLICY DEVELOPMENTSA total <strong>of</strong> 14 SA Army policies were reviewed or implementedduring the financial year.SERVICES SCALED DOWN, SUS-PENDED OR ABOLISHED DURINGTHE FY <strong>2006</strong>/<strong>07</strong>Phasing out <strong>of</strong> Army Territorial (Commando) Units. TheSANDF/SAPS Joint Operational and IntelligenceStructure (JOINTS) determined the units to be closed in aspecific year, based on the SAPS service capacity to takeover the task. The SA Army obtained MinisterialAuthority to close the identified units and physically shutthem down (personnel, finances and logistics accounts).Since 1 April 2005 to 31 May <strong>2006</strong> (beyond 31 March <strong>2006</strong>),11 group headquarters and 174 Army Territorial Reserveunits (commandos) were placed under the status <strong>of</strong> "unitsclosing down". This implies that no force preparationand/or force employment takes place. The unit structureswere changed to those <strong>of</strong> closing down structures. The SAArmy is planning, subject to confirmation by JOINTS, toclose five group headquarters and 11 commando units inthe FY2008/09 and the remaining three group headquartersin the FY2009/10.Audit <strong>of</strong> Closing Units. Project TSAKANI <strong>of</strong> the SA Armyand Project MOUNTING <strong>of</strong> the Inspector General (DOD)were established and staffed with dedicated memberswho had trained to undertake the closure <strong>of</strong> group headquartersand commando units. The closing down structuresare responsible for the closing <strong>of</strong> the personnel,finances and logistics accounts. The Inspector General(DOD) has audited one group headquarters and 73 commandounits. Certificates for the closure <strong>of</strong> one groupheadquarters and 33 commando units were received. Tengroup headquarters and 103 commando units are in theprocess <strong>of</strong> closing and are preparing for final audit.OTHER SA ARMY STRUCTURESCurrently the 118 SA Infantry Battalion and GeneralSupport Base Durban are busy conducting their closingdown audits.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 65
Air <strong>Defence</strong>chapter 5Agusta 109 - Light Utility Helicopter.programme 366DEPARTMENT OF DEFENCE
Chapter FivePROGRAMME 3 -AIR DEFENCEa nationalpartnershipto build abetter lifefor allDEPARTMENT:DEFENCEOVERVIEWThe SA Air Force's strategic planningprogressed during the FY<strong>2006</strong>/<strong>07</strong>guided by SA Air Force Vision 2015,which replaced the SA Air ForceTransformation Plan towardsVision 2012.During the period under review theSA Air Force once again confirmeditself as a valuable national assetand contributor to Government initiatives.The Air Force contributed elements<strong>of</strong> air power to contingents <strong>of</strong> the SANational <strong>Defence</strong> Force that weredeployed abroad in countries such asMadagascar, Mozambique, the Comoros,the DRC, Burundi, the Sudan andLesotho. The support provided serves asa tangible example <strong>of</strong> the SA Air Force'scontribution to NEPAD, and its endeavourto attain and ensure a peaceful andstable region.During the FY<strong>2006</strong>/<strong>07</strong> the Air Force flewa total <strong>of</strong> 37 160 hours, <strong>of</strong> which 9 788were force employment in direct support<strong>of</strong> Joint Operations. The SA Air Forcesupport <strong>of</strong> Government initiatives wasnot limited to initiatives on the Africancontinent, as was evidenced in activitiessuch as a combined exercise <strong>of</strong>f theIndian Ocean island <strong>of</strong> La Reunion inconjunction with French forces, training<strong>of</strong> VIP protectors for Pakistan and thesupport rendered to the Italian fighterdelegation where the Italian StormShadow cruise missile test campaign wassuccessfully completed at Air Force BaseOverberg. In addition a joint short rangemissile certification venture was initiatedbetween the RSA DOD and the BrazilianAir Force to ensure that both countries'requirements are catered for.Support <strong>of</strong> own forces received equal priority,with a total <strong>of</strong> 595 hours flown insupport <strong>of</strong> the SA Army, SA Navy and theSAPS during border control operations.A further 1 158 flying hours were flownin direct support <strong>of</strong> crime prevention inrural areas and 305 flying hours duringhumanitarian assistance. During maritimereconnaissance 338 flying hourswere flown in support <strong>of</strong> the SA Navy.Combined and multinational exercisesaccounted for 334 hours.The funding <strong>of</strong> air mobility for diplomaticmissions remained a high priority forthe SA Air Force during the FY<strong>2006</strong>/<strong>07</strong>.Various aircraft in support <strong>of</strong> very importantperson (VIP) dignitaries and importantpersons flew a total <strong>of</strong> 2 737 hours,carrying a passenger total <strong>of</strong> 4 930 passengers.The Air Force Reserves played a valuableand growing role in augmenting the SAAir Force's human resources, delivering52 496 man-days during the year underreview and flying 2202 hours in Air ForceReserve Squadron aircraft, whilst remain-ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong>67
ing within the allocated budget.Good progress was made with transformation, especiallyin the core musterings <strong>of</strong> the SA Air Force. Two pupilpilot courses were completed during the FY<strong>2006</strong>/<strong>07</strong>, witha total <strong>of</strong> 33 pilots qualifying. Of these, 30 were males andthree females, while 67% <strong>of</strong> the total were Black pilots.Shortcomings in Technical Support capability servicedelivery were mainly due to critical shortages <strong>of</strong> qualifiedtechnicians due to resignations. A highlight <strong>of</strong> theFY<strong>2006</strong>/06 was the successful implementation <strong>of</strong> areviewed technical incentive for technicians and technical<strong>of</strong>ficers. Initial indications are that this will have a positiveeffect on the retention <strong>of</strong> skilled personnel.Although progress was made with retention during theFY<strong>2006</strong>/<strong>07</strong> when the improved incentives for aircrew andtechnicians were implemented, retention still remains achallenge for the Air Force leadership. The growth in theaviation industry internationally has led to a hugedemand for qualified air traffic controllers, operations<strong>of</strong>ficers, aircrew and technical personnel.The integration and commissioning <strong>of</strong> the Strategic<strong>Defence</strong> Package aircraft are important elements <strong>of</strong> the SAAir Force's ability to conduct air operations. A limitingfactor during the FY<strong>2006</strong>/<strong>07</strong> was the extended delays inthe delivery <strong>of</strong> the Agusta A109 light utility helicopter,which is now almost four years late. This continued toplace pressure on the remaining Alouette III and BK-117light utility helicopters to bridge the shortfall. The latedelivery <strong>of</strong> the A109 caused delays in the planned trainingschedules <strong>of</strong> the new aircraft. The late release <strong>of</strong> theHawk jet trainer continued to cause disruptions to theplanned training and conversion schedules. The overridingconcern remains the high levels <strong>of</strong> underfunding,which continues to force the SA Air Force to operate itsaircraft systems, including the Strategic <strong>Defence</strong> Packageaircraft at sub-optimal levels.leadership, as well as sterling contributions by many talentedindividuals, most <strong>of</strong> the SA Air Force's main air systemsare on the decline in their ability to conduct extendedoperations. As in previous years, the decline in air systemintegrity was exacerbated by the loss <strong>of</strong> specialisedtechnical expertise during the FY<strong>2006</strong>/<strong>07</strong>. This situationis expected to improve with interventions by Air Forceleadership, including the improvement <strong>of</strong> incentives formembers with unique skills. An unresolved issue is thefact that such interventions have been funded from theoperating budget, with a resultant negative impact onoperational output.Despite the stated shortcomings, however, significantassistance was provided in support <strong>of</strong> the strategic objectives.Air elements played an important part in executingnational security policy and cooperation in the regionranged from assistance with general elections inMadagascar and other countries in the region to multinationalexercises with regional air forces.The SA Air Force has, nevertheless, introduced processesto try and further optimise its logistic support, streamlineits structures, reduce its footprint wherever possible, andto reduce the cost <strong>of</strong> ownership <strong>of</strong> large fixed assets suchas air bases, training and support units to the maximumextent possible. The savings that were realised by some <strong>of</strong>these efforts were channelled back to those areas whereoperational output could be improved and, in doing so,the SA Air Force managed to achieve higher levels <strong>of</strong> efficiencythan would otherwise have been the case.PURPOSEThe Air <strong>Defence</strong> Programme provides prepared and supportedair defence capabilities for the defence and protection<strong>of</strong> South Africa.MEASURABLE OBJECTIVEAir <strong>Defence</strong>chapter 5programme 368Insufficient funding together with the threateningdolomitic subsidence in the Pretoria area, contributed tothe deterioration <strong>of</strong> operational infrastructure and facilitiessuch as the main runway <strong>of</strong> the Air Force BaseWaterklo<strong>of</strong>. The rehabilitation <strong>of</strong> the runway is plannedfor commencement in July 20<strong>07</strong> and solutions are beingdeveloped for the other critical areas.Cumbersome lines <strong>of</strong> communication and contractingprocesses <strong>of</strong> the National <strong>Department</strong> <strong>of</strong> Public Workscompound the prevailing situation with regard to facilitiesand infrastructure management in the SA Air Force.These protracted processes frequently prevent expenditure<strong>of</strong> already limited budget allocations within the limits<strong>of</strong> a financial year. Efforts to utilise the Strategic<strong>Defence</strong> Package aircraft optimally and transform the SAAir Force into a tactically deployable air force have beenundermined by the continued underfunding <strong>of</strong> the operatingbudget. Despite efforts by the SA Air Force's seniorDEPARTMENT OF DEFENCEDefend and protect South Africa by maintaining and providingprepared and supported air combat forces, servicesand facilities that meet Government's requirements.OUTPUTSThe Air <strong>Defence</strong> Programme provides air defence capabilitiesfor South Africa in the areas covered by its 11 subprogrammes,namely● Strategic direction;● Operational direction;● Helicopter capability;● Air transport and maritime capability;● Air combat capability;● Operational support and intelligence capability;● Command and control capability;● Command post;
●●●Base support capability;Education, training and development capability;andTechnical support services capability.Details <strong>of</strong> the Air <strong>Defence</strong> Programme outputs are reflectedin Table 5.1. Some <strong>of</strong> the targets for the year wereadjusted in the period between publication <strong>of</strong> the plan andthe onset <strong>of</strong> the FY<strong>2006</strong>/<strong>07</strong>. Adjustments were necessaryowing to changed requirements and the evolving externalenvironment. Significant changes are explained in theoutput table.Table 5.1: Air <strong>Defence</strong> Programme Outputs for the FY<strong>2006</strong>/<strong>07</strong>Output Performance Measure TargetAchievementSubprogramme Strategic DirectionStrategic Directionto the Air <strong>Defence</strong>Programme, adviceto the DOD and airdefence resourceallocation andmanagementDegree to which theDOD's policies, strategiesand plans are implementedand aligned withordered GovernmentcommitmentsThe degree to which theallocated budget hasbeen expendedAll policies, strategies andplans are implemented asspecifiedAllocated funds expendedas planned and plans areexecuted within budgetPolicies, strategies and plans were implementedas specified. Outputs were adjustedwhere necessary, owing to resource constraints.Refer to capability outputs fordetails.The total SA Air Force expenditure was102%, due to additional funds allocated bythe DOD.Subprogramme Operational DirectionOperational directionto the Air<strong>Defence</strong>Programme, provision<strong>of</strong> combatready air capabilitiesas per forceemploymentrequirements andflight safety managementDegree <strong>of</strong> compliancewith DOD policies readinessstates and forceemployment requirementsNumber <strong>of</strong> aircraftaccidentsNumber <strong>of</strong> transgressions<strong>of</strong> civil or military aviationregulationsFull compliance with DODpolicies, readiness statesand force employmentrequirementsNo major aircraft accidentsNo transgressionsAll DOD policies and prescripts were compliedwith.No major accidents have occurred sinceAugust 2005. Target was clarified by referringto major accidents. Minor accidents arealso reported, recorded, analysed andaddressed at appropriate levels and forums.No transgressions <strong>of</strong> a serious natureoccurred; that warranted formal investigation.Subprogramme Helicopter CapabilityMedium and lighttransport capabilityCombat supportcapabilityTraining capabilityDegree to which planneddaily aircraft availability isachieved13 170 flying hoursFour mixed (medium andlight) squadronsOne combat supportsquadronOne helicopter trainingschoolA total <strong>of</strong> 10 837 flying hours were flown.Fewer hours were flown owing to lower thanplanned aircraft and aircrew availability.Oryx serviceability was affected by a licensingdispute between Denel Aviation andEurocopter, which had a negative effect onthe availability <strong>of</strong> spares. Delays in delivery<strong>of</strong> the Agusta 109s had a major impact onthe operational and training utilisation <strong>of</strong> theaircraft.The Rooivalk fleet was unable to deliver theplanned output due to a 5-month groundingfor technical problems.Two Agusta A-109 pilot courses were presentedduring the year to catch up with thebacklog, training 49 pilots. Only 29 <strong>of</strong> theplanned 38 engineers were trained owing tothe delayed A-109 delivery and shortages <strong>of</strong>instructors. Eight instructors were trained.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 69
Table 5.1: Air <strong>Defence</strong> Programme Outputs for the FY<strong>2006</strong>/<strong>07</strong> (Continued)Output Performance Measure TargetAchievementSubprogramme Transport and Maritime CapabilityVIP transport capabilityMedium and lighttransport capabilityMaritime capabilityDegree to which planneddaily aircraft availability isachieved15 262 flying hoursThree transport squadrons(one VIP)One maritime and transportsquadronOne transport and trainingsquadronNine Air Force ReservesquadronsA total <strong>of</strong> 13 467 flying hours were flown.A total <strong>of</strong> 2 737 flying hours were flowntransporting 4 930 VIP and important persons.Crew and aircraft shortages resultedin slightly reduced output. The training <strong>of</strong>transport pilots is receiving priority. Because<strong>of</strong> the long period that the Casa 235 wasunavailable, the currency <strong>of</strong> the crew lapsedand had to undergo simulator training inSpain.Scheduled services reduced the availability<strong>of</strong> aircraft. Crew shortages were experienced.Crew and aircraft shortages resulted inreduced output. A shortage <strong>of</strong> King Air andPC-12 commanders is being addressedthrough training. Airworthiness problemsrestricted the use <strong>of</strong> the C185 fleet.The reserve force flying hour output is afunction <strong>of</strong> aircraft cost. More expensive aircraftwere required during the FY<strong>2006</strong>/<strong>07</strong>,resulting in fewer hours flown within theallocated budget.Subprogramme Air Combat and Reconnaissance CapabilityAir <strong>Defence</strong>chapter 5programme 370Air-to-air combatcapabilityAir-to-ground combatcapabilityIn-flight refuellingcapabilityAir combat trainingcapabilityProtection servicecapabilityDegree to which planneddaily aircraft availability isachievedDegree to which groundprotection, entrance controland VIP protectiontargets are achievedDEPARTMENT OF DEFENCE3 535 flying hoursOne combat squadronOne long-range transport,electronic warfare and inflightrefuelling squadronOne combat trainingsquadronSubprogramme Operational Support and Intelligence Capability13 Protection Servicessquadrons12 month incident freeground protectionA total <strong>of</strong> 2 084 flying hours were flown. Thereduced output resulted from system obsolescencein the Cheetah system, the delayedrelease to service <strong>of</strong> the Hawk and systemintegrity problems with the B7<strong>07</strong> fleet.Maximum potential was extracted from thesystem with a progressive decline in outputas the phase-out plan for the Cheetah wasimplemented. A large amount <strong>of</strong> preventativemaintenance was conducted during theyear. System obsolescence, core technicalpersonnel shortages and the migration <strong>of</strong>personnel to the Hawk and Gripen systemscontributed to reduced aircraft availability.No aircraft were available for four monthsdue to technical problems. Training <strong>of</strong> aircrewfell behind during the year due to lowaircraft availability, uncertainty about thefuture utilisation <strong>of</strong> the system and operationalcommitments.The initial aircrew training was delayed byreduced aircraft availability. The first Hawkconversion is in progress and the availability<strong>of</strong> crews should improve with the systemramp-up.A total <strong>of</strong> 13 Protection Services squadronswere available during the year.72 incidents <strong>of</strong> theft involving State propertyoccurred at various bases, units and depots.
Table 5.1: Air <strong>Defence</strong> Programme Outputs for the FY<strong>2006</strong>/<strong>07</strong> (Continued)Output Performance Measure TargetAchievementOne Joint AirReconnaissanceInformation Centre(JARIC) andTraining CentreCounter-intelligenceandSafeguardingNumber <strong>of</strong> learnerstrained in aviationprotectionDegree to which orderedcommitments areachievedDegree to which theexploitation and provision<strong>of</strong> image intelligencerequirements to SANDFand other user clientsmeet with requirementsNumber <strong>of</strong> membersqualifyingDegree to which counterintelligenceand safeguardingrequirementsare metNumber <strong>of</strong> learningopportunitiesNumber <strong>of</strong> learnersqualifying346 learners20 520 personnel daysutilised on externaldeploymentsFull compliance withimage interpretation andintelligence requirements71 learners24 hours counter-intelligencesupport capabilityTwo18 learnersA total <strong>of</strong> 591 learners were trained. More(205) Basic Protection Members weretrained than the originally planned 266, asthe requirement was higher.Only 5 858 personnel days were utilised, asthe planned deployment <strong>of</strong> VIP protectors toBurundi was cancelled. Only 38 memberswere deployed in March 20<strong>07</strong>. Four memberswere deployed to the Sudan as MilitaryObservers and 12 members were deployedto Mozambique to assist during the floods inMarch 20<strong>07</strong>.Of a total <strong>of</strong> 189 tasks received, 159 taskswere successfully completed. The 30 outstandingtasks will be completed early in thenew financial year as per client requirements.176 learners completed courses. Division <strong>of</strong>the National Diploma in Applied MilitaryIntelligence into separate courses resulted inlearner totals being expanded, becauselearners were counted for each separatecourse. In real terms the planned outputwas therefore achieved, not exceeded.24-hour support was provided, but Counterintelligencesupport availability was limitedowing to a training backlog. Crime andsecurity breaches decreased during the 3rdand 4th quarters, mainly due to effectivecounter-intelligence management and implementation<strong>of</strong> military security measures.Two learning opportunities were presented.19 learners qualified.Subprogramme Command and Control CapabilityAir <strong>Defence</strong>Management capabilityAir traffic managementcapabilityDegree to which airdefence resources havebeen managedDegree to which theplanned number <strong>of</strong> airtraffic controllers, air trafficservice units and availability<strong>of</strong> navigation aidsare achievedEffective management <strong>of</strong>air defence personnel,static and mobile controlcentres, mobile deploymentunits and sensors81 qualified air traffic controllersSix mission ready air trafficservice unitsOne mobile airfield radarsystemFour mobile towers24 hour availability <strong>of</strong> navigationaidsEffective management <strong>of</strong> air defence personnel,control centres and sensors wasachieved to a large extent. Problems experiencedincluded a shortage <strong>of</strong> qualified controllersdue to resignations and technicalproblems with tactical deployment vehicles.50 Qualified air traffic controllers were available.A total <strong>of</strong> 26 controllers were lostthrough resignations, severance packagesand non-renewal <strong>of</strong> contracts.Six mission ready air traffic service unitswere available.Low availability in the first quarter limited theaverage for the year to 75%.Only three mobile towers were renovated onaccount <strong>of</strong> a limited budget.99% availability was achieved, with periods<strong>of</strong>fline for scheduled calibration and maintenance.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 71
Table 5.1: Air <strong>Defence</strong> Programme Outputs for the FY<strong>2006</strong>/<strong>07</strong> (Continued)Output Performance Measure TargetAchievementAir <strong>Defence</strong>chapter 5programme 372Ground Commandand ControlManagementInformationCommunicationTechnologyManagementTraining capabilityDegree to which theplanned number <strong>of</strong> commandpost <strong>of</strong>ficers andcommand post assistantsare achievedDegree <strong>of</strong> availability <strong>of</strong>the Ground Commandand Control System andCurrent IntelligenceSystem systemsDegree to which orderedcommitments is achievedDegree to which theplanned number <strong>of</strong>telecommunication <strong>of</strong>ficersand operators isachievedDegree <strong>of</strong> availability <strong>of</strong>SA Air Force telecommunicationequipmentDegree to which theplanned training and syllabirequirements areachieved and number <strong>of</strong>learners qualifyingDEPARTMENT OF DEFENCE49 command post <strong>of</strong>ficersand 178 command postassistants24 hour availability1 460 personnel daysutilised on external deployments38 qualified telecommunication<strong>of</strong>ficers and 157qualified telecommunicationoperators24-hour availability <strong>of</strong>equipmentAirspace Control SchoolNine airspace controllearning opportunities -learners 65Four telecommunicationlearning opportunities - 55learnersOne Mobile Air OperationsTeam learning opportunity- 10 learnersTwo command and controlinstructor learning opportunities- 40 learnersTwo MSDS learning opportunities- 40 learnersBecause <strong>of</strong> resignations, only 47 commandpost <strong>of</strong>ficers were available. The target willbe achieved when the selected candidatescomplete their training in August 20<strong>07</strong>.Because <strong>of</strong> resignations and natural attritionan output <strong>of</strong> only 137 assistants wasachieved. Recruitment targets have beenincreased to address the shortages.24-hour availability achieved.1 894 personnel days were utilised to meetthe increased Joint Operations Divisionrequirement.38 qualified telecommunications <strong>of</strong>ficerswere available. The output <strong>of</strong> telecommunicationoperators was limited to 142 due toinadequate recruiting targets, which havebeen adjusted to address the shortfall.24-hour availability <strong>of</strong> equipment wasachieved.The Airspace Control School at AFBHoedspruit provided training. Course namesand contents were revised extensively afterthe initial plan for the FY<strong>2006</strong>/<strong>07</strong> was published,to address personnel shortages andintegrate Military Skills Development System(MSDS) members.16 learning opportunities were presentedwith 99 members qualifying. Extra courseshad to be scheduled because <strong>of</strong> the criticalshortage <strong>of</strong> technical knowledge regardingradar placement. Additional members werenominated for the technical knowledgecourses.Although five learning opportunities werepresented to accommodate MSDS members,only 23 learners qualified as a result <strong>of</strong>remustering and pilot selection <strong>of</strong> MSDSmembers are the changed MSD career path.One learning opportunity was presented with40 learners qualifying. The curriculum wasrevised to include all operational musterings,hence the increase in learners.Two learning opportunities were presented.Only 20 learners qualified as a result <strong>of</strong>fewer nominations. No negative effect onoperational readiness - training planned for20<strong>07</strong>.Six MSDS learning opportunities were presentedas a result <strong>of</strong> additional requirements,with 57 learners qualifying. MSDS memberswho failed pilot selection were recruited intothe Command and Control mustering. Theadditional members were due to a biggerintake.
Table 5.1: Air <strong>Defence</strong> Programme Outputs for the FY<strong>2006</strong>/<strong>07</strong> (Continued)Output Performance Measure TargetAchievementDeploymentSupport capabilityDegree to which deploymentsupport requirementsare metSubprogramme Command Post CapabilityAir ForceCommand PostAir OperationsTraining CentreDegree to which plannedflying hours are utilisedDegree to which SA AirForce training requirementsfor command postpersonnel are metSubprogramme Base Support CapabilityThree Ground Commandand Control courses - 40learning opportunities300-man tactical air basedeployment for 12 weeks(24 hour operations)Two 20 man simultaneoustactical air base deploymentsfor eight weeksLogistic support for 180days <strong>of</strong> SA Air ForcedeploymentsEffective command andcontrol <strong>of</strong> all planned flyinghoursFull compliance with SA AirForce training requirementsOne course was presented with six membersqualifying. The rest <strong>of</strong> the courses werecancelled when they were incorporated inthe MSDS courses mentioned above. Nonegative impact, as all required knowledge isimparted in the MSDS courses.12 weeks deployment achieved.8 weeks deployment achieved.273 days. Additional support was requiredfor operational squadron deployments andother requirements such as Africa Aerospaceand <strong>Defence</strong> <strong>2006</strong> at Air Force BaseYsterplaat, as well as the elections in theDRC.100% effective command and control <strong>of</strong> allplanned flying hours was executed.The SA Air Force training requirementswere met by presenting one Mobile AirOperations Team practical course asplanned, successfully training 20 learners.Six courses were also successfully plannedand presented in support <strong>of</strong> the SA Army,training 377 learners.Logistic SupportcapabilityBase operationalsupport capabilityDegree to which supportservices requirements areprovided for all SA AirForces bases and unitsDegree to which systemgroups' requirements areachievedDegree to which airportoperational services areavailable for safe conduct<strong>of</strong> operationsDegree <strong>of</strong> compliancewith the AirportsCompany <strong>of</strong> SA (ACSA)model and InternationalCivil Aviation Authority(ICAO) standardsFull compliance withsupport servicesrequirementsFull compliance withsystem groups'requirementsFull availability <strong>of</strong> airportoperational servicesProvision <strong>of</strong> operationalsupport for all operationsactivities at SA Air Forcebases in accordance withthe ACSA model and compliancewith ICAO standards60% compliance. The logistical functionswere formally transferred to the SA Air Forcein March <strong>2006</strong>. A Supply SupportDirectorate is in the process <strong>of</strong> being establishedand is not fully staffed whilst the variouscapabilities are under development.68% compliance. The availability <strong>of</strong> funds,problems experienced with the procurementprocess and incapacity <strong>of</strong> the State fixedassets portfolio holder, the National<strong>Department</strong> <strong>of</strong> Works, were the main factorscontributing to underperformance.72% availability. All available funds, werespent but were insufficient to provide thetotal requirement for components.High degree <strong>of</strong> compliance attained, commensuratewith available resources. Insome cases compliance is not economicallyattainable, is not required/not compatiblewith military requirements. A fire and rescueservices category higher than that requiredfor military operations at a specific base is,for example, not maintained throughout theyear, but is arranged when required for passengeraircraft requiring higher categories.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 73
Table 5.1: Air <strong>Defence</strong> Programme Outputs for the FY<strong>2006</strong>/<strong>07</strong> (Continued)Output Performance Measure TargetAchievementFacilities (land andbuildings) managementcapabilitySupply supportservices capabilityProcurement,accounting and disposal<strong>of</strong> SA AirForce assetsDegree to which a suitableworking environmentis provided at all SA AirForce facilitiesDegree to which requirementsfor uniform andspecialised clothing aremetDegree to which procurement,accounting and disposal<strong>of</strong> all SA Air Forceassets are in compliancewith the PFMA and all relevantlegislationA suitable working environmentat all SA Air Forcefacilities in accordancewith the Repair andMaintenance Plan as supportedby the <strong>Department</strong><strong>of</strong> Public WorksFull compliance withrequirements for uniformsand specialised clothingFull compliance with thePFMA and all relevant legislation45% target in providing a suitable workingenvironment at all SA Air Force facilities wasachieved. Most <strong>of</strong> the funds allocated werespent. Funding not spent was due to delayin the completion <strong>of</strong> tasks by National<strong>Department</strong> <strong>of</strong> Public Works contractors.60% compliance with requirements. Whilst25% <strong>of</strong> the prevailing non-compliance isattributed to underfunding, the cumulativeeffects <strong>of</strong> underfunding in successive financialyears, non-performance <strong>of</strong> suppliers andfailure to deliver within a particular financialyear posed further difficulties. Managementinterventions have been adopted to improveservice delivery, reduce costs and increaseefficiency in the provision <strong>of</strong> this commodity.68% compliance achieved. Logistic traininginterventions have been implemented toaddress non-compliance.Subprogramme Education Training and Development CapabilityAir <strong>Defence</strong>chapter 5programme 374Advanced training,skills training, andfull-time technicaltraining capabilityfor air defenceFlying trainingcapabilityDegree to which theplanned training and syllabirequirements areachieved.Number <strong>of</strong> learners qualifyingDegree to which theplanned training and syllabirequirements areachievedNumber <strong>of</strong> learners qualifyingDEPARTMENT OF DEFENCE320 learners on variouspart-time tertiary studyfields600 learners on variousdevelopment and trainingcourses60 N4-N6 full-time tertiarytraining learners270 apprentice learnerships65 full-time engineeringlearners600 adult based education/furthereducation andtraining learnersFlying training school34 aircraft serviceabledaily41 qualified instructors9 046 flying hoursTwo pilot courses - 34pilotsTwo instructor courses -12instructors360 learners qualified. More membersapplied to study at State expense thanplanned. As many applications have beenapproved as the budget allows.556 learners qualified. Fewer learners weretrained. Insufficient funds were available tomeet training commitment due to escalationin training costs.51 learners. No learners were on schoolblock during final quarter.270 learners were recruited.78 learners qualified. Increased number <strong>of</strong>students accepted to counter attrition <strong>of</strong>engineers.6<strong>07</strong> learners qualified. Responsibility <strong>of</strong> andtrained under auspices <strong>of</strong> Directorate HumanResource Systems.One basic flying training school in operation.30 aircraft available. The average aircraftavailability was lower than estimated owingto the impact <strong>of</strong> avionics obsolescence, aswell as a higher than normal flying rate.36 qualified instructors. Average number <strong>of</strong>instructors on strength for the year waslower than required owing to limited supply<strong>of</strong> candidates available from operationalunits.10 772 hours. Additional hours required tomeet training needs.33 pilots trained on two courses.Two courses presented with 16 instructorsqualifying. Additional instructors trained tomeet demand.
Table 5.1: Air <strong>Defence</strong> Programme Outputs for the FY<strong>2006</strong>/<strong>07</strong> (Continued)Output Performance Measure TargetAchievementNavigation trainingcapabilityLogistical trainingcapabilityPersonnel developmentcapabilityDegree to which theplanned training andsyllabi requirements areachievedNumber <strong>of</strong> learnersqualifyingDegree to which thePlanned training andsyllabi requirements areachievedNumber <strong>of</strong> learnersqualifyingDegree to which theplanned training and syllabirequirements areachievedNumber <strong>of</strong> learners qualifyingNavigation training school10 qualified navigationinstructorsOne navigators course - 6navigators (12 listed in initialplan)One instructors course -2instructorsFour survival courses -120 learnersOne aviation orientationcourse - 25 learnersFive para sail courses -120 learnersLogistical training school450 apprentices60 <strong>of</strong>fice automationcourses - 600 learners123 SA Air Force uniquecourses - 1 335 learnersFour hospitality servicescourses - 83 learnersSeven fire training courses- 280 learnersPersonnel developmentcollege19 development courses -775 learnersTwo <strong>of</strong>ficers formativecourses - 144 learnersThree air power courses -48 learnersOne Law <strong>of</strong> Armed Conflictcourse - 20 learnersOne navigation training school in operation.Six qualified navigation instructors. A shortage<strong>of</strong> navigators in the System Groupsresulted in the unit being understaffed.The last two students from Course 57 (THEFY2005/06) qualified in April <strong>2006</strong>. The fivestudents from Course 58, which should havebeen completed in December <strong>2006</strong>, will onlyqualify in April 20<strong>07</strong> due to unavailability <strong>of</strong>aircraft and crew from 35 Squadron.Two instructors courses presented with threeinstructors qualifying.Three courses satisfied the SA Air Forcerequirement, with 68 learners qualifying.One course presented, with 16 learnersqualifying, sufficient to satisfy the SA AirForce requirement.Three courses satisfied the SA Air Forcerequirement, with 79 learners qualifying.One logistical training school in operation.A total <strong>of</strong> 720 apprentices. More apprenticeswere recruited because <strong>of</strong> a high attrition <strong>of</strong>technicians.63 opportunities were presented for 266learners. Failing the first module <strong>of</strong> thecourse prevented learners from continuingwith the course. Management to addressstaffing and output <strong>of</strong> course.125 unique courses were presented with1 022 qualified learners. SA Air Forcerequirement was satisfied.Four courses were presented for 61 learners.Fewer MSDS members were availablethan planned for and only 12 students instead<strong>of</strong> 24 were accepted for the AdvancedChef Course due to limited posts available.Seven opportunities were presented for 236learners. Not all courses were fully mannedand fewer recruiting targets received thanplanned for.The SA Air Force College presents developmentcourses.18 courses satisfied the requirement. 734learners qualified. Some <strong>of</strong> the courseswere undersubscribed. Monitoring <strong>of</strong> coursesto be done to determine if annual target isjustified.Two courses presented with 146 learnersqualifying.Three courses presented with 42 learnersqualifying. SA Air Force requirement wassatisfied.Two courses were presented to meet SA AirForce requirement. 25 learners qualified.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 75
Table 5.1: Air <strong>Defence</strong> Programme Outputs for the FY<strong>2006</strong>/<strong>07</strong> (Continued)Output Performance Measure TargetAchievementAir <strong>Defence</strong>Basic militarytraining capabilityAircraft-servicingcapabilityArmament supportcapabilityMaintenancecapabilityEngineeringSupport capabilityOperationalsupport and informationsystemscapabilitySupport ProcessIntegrationcapabilityDegree to which theplanned training and syllabirequirements areachievedNumber <strong>of</strong> membersqualifyingDegree to which theaircraft requirement <strong>of</strong> theflying units is achievedDegree <strong>of</strong> compliancewith the requirements forarmament supportDegree to which allcommon aircraft supportequipment is maintainedand available for useDegree <strong>of</strong> compliancewith all System Groupinternal engineeringrequirementsEffectiveness <strong>of</strong> aircraftsystems informationmanagementEffectiveness <strong>of</strong> aircraftsystems policies andproceduresBasic military traininggymnasium6 Basic courses - 600learners2 Basic courses(Reserves) - 80 learners3 Orientation courses - 29learners19 Protection courses -719 learnersSubprogramme Technical Support Services CapabilitySix aircraft servicing unitsthat provide serviceableaircraft in accordance withSystem Group businessplansOn time delivery <strong>of</strong> therequired quantities <strong>of</strong>armaments and lifesupportsystems forforce preparation andemploymentProvide serviceable supportequipment in accordancewith System Groupbusiness plansOn time delivery <strong>of</strong> engineeringsupport to SystemGroupsImplementation and support<strong>of</strong> information managementto SystemGroupsImplementation <strong>of</strong> costeffectiveprocesses andprocedures within theSystem GroupsSA Air Force Gymnasium presents basic militarytraining.Six courses presented with 613 MSDS learnersqualifying.Two courses presented with 128 learnersqualifying. Increased SA Air Force requirementto utilise reserves.No courses were presented. Reserve memberswere recruited to provide additionalmanpower.14 courses presented with 471 learnersqualifying. Decreased output due to requirementfor Rapid Deployment Unit training.Six aircraft-servicing units met 65% <strong>of</strong> systemgroup requirements for serviceable aircraft.Loss <strong>of</strong> skilled technical personnel anddeteriorating infrastructure contributed to areduction in output. An improvement in technicalallowances was implemented wef July<strong>2006</strong> and should contribute to improved outputin the FY20<strong>07</strong>/08.The target was fully met by supplying systemgroups with aircraft armaments and life-supportsystems required for force preparationand employment.Target fully met by ensuring serviceability <strong>of</strong>support equipment in accordance with systemgroup requirements, as specified in systemgroup business plans.80% compliance. Resignation <strong>of</strong> uniformedengineers (11 out <strong>of</strong> 58 for the year) negativelyaffected the output <strong>of</strong> engineering supportprovided to the system groups.95% implementation and support provided.Implementation in certain areas still inprocess.60% implementation due to a lack <strong>of</strong> manpower.Processes and procedures need tobe finalised to ensure an effective system.chapter 5AIR DEFENCE PROGRAMME: PLANNED EXERCISESDetails <strong>of</strong> the Air <strong>Defence</strong> Programme planned exercises are shown in Table 5.2.Table 5.2. Air <strong>Defence</strong> Programme: Planned Exercises for the FY<strong>2006</strong>/<strong>07</strong>programme 376ExerciseInternational Joint Exercises (Air Combat)DEPARTMENT OF DEFENCEResults AchievedExercise did not materialise, as it was dependent on availability<strong>of</strong> a United States task force in the region. An opportunitymay arise to conduct the exercise in 20<strong>07</strong>.
Table 5.2. Air <strong>Defence</strong> Programme: Planned Exercises for the FY<strong>2006</strong>/<strong>07</strong> (Continued)Air-to-air Firing CheetahAir-to-air Firing HawkMissile FiringElectronic Warfare CampsInfrared CampAir Capability DemonstrationExerciseExercise NEW HORIZON (NH)Command and Control Systems DeploymentsExercise OSPREYAir transport force preparationHelicopter Force Preparation ExerciseResults AchievedExercise successfully executed during October <strong>2006</strong> in theWestern Cape at Langebaanweg.Exercise rescheduled for the FY20<strong>07</strong>/08 due to delay in aircraftintegration process.Exercise successfully executed during November <strong>2006</strong> inWestern Cape at Air Force Base Overberg.Exercise successfully executed during August <strong>2006</strong> in theWestern Cape at Air Force Base Overberg.Exercise successfully executed during July <strong>2006</strong> in theLimpopo Province at the Roodewal Range.Two demonstrations were successfully executed during Mayand September <strong>2006</strong> in the Limpopo Province at theRoodewal Range.Exercise NH5 successfully executed during March <strong>2006</strong> in theWestern and Eastern Cape. NH6 was cancelled due to arequirement to shift funds to critical maintenance on primemission equipment.Exercise cancelled due to deployment to the DRC in support<strong>of</strong> elections.Units conducted individual exercises successfully throughoutthe year. Consolidated exercise planned for every secondyear.PUBLIC PRIVATE PARTNERSHIP AGREEMENTSA possible Public Private Partnership (PPP) for the commercial co-use <strong>of</strong> Air Force Base Ysterplaat was registered atNational Treasury on 8 February 20<strong>07</strong> as a project with reference number N059. The project <strong>of</strong>ficer was appointed interms <strong>of</strong> the Public Finance Management Act, 1999.PERFORMANCE AND SERVICE DELIVERY IMPROVEMENTDetails <strong>of</strong> the Air <strong>Defence</strong> Programme performance and service delivery are shown in Table 5.3.Table 5.3. Performance and Service Delivery Improvement for the FY<strong>2006</strong>/<strong>07</strong>ActivitiesPlannedManagementInterventionAnticipatedBenefitStatusActualAchievementStrategic direction,Human ResourcestransformationMonitoring <strong>of</strong> AirForce Board FocusAreas to address theacquisition <strong>of</strong> representativemembersfor the core functions<strong>of</strong> the Air Force andcareer preparation <strong>of</strong>representative membersfor the Strategic<strong>Defence</strong> Packageaircraft.Meaningful andmeasurableprogress towardsthe objectives <strong>of</strong> theSA Air Force medium-termHRStrategy and SA AirForce StrategicTransformation PlanTowards Vision2012OngoingThe SA Air Force's recruitment strategyis successfully contributing to theincrease in overall black and female representivityin SA Air Force. Overall blackand female representivity increased by5,1% and 1,2% respectively during the<strong>2006</strong>/<strong>07</strong> financial year. These changesare much higher than anticipated, but inline with the SA Air Force's HumanResource Medium-term Strategy to bringabout a 10% change in representivityover the period the FY<strong>2006</strong>/<strong>07</strong> to theFY2008/09. In accordance with therecruitment plan the targets wereachieved. However, the SA Air Forcecould not achieve the planned successrate at training institutions for variousreasons, such as the non-availability <strong>of</strong>aircraft.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 77
Table 5.3. Performance and Service Delivery Improvement for the FY<strong>2006</strong>/<strong>07</strong> (Continued)ActivitiesPlanned ManagementInterventionAnticipatedBenefitStatusActualAchievementAir <strong>Defence</strong>chapter 5Strategic direction,review <strong>of</strong>contractsStrategic direction,logisticrestructuringStrategic direction,operationalreadinessStrategic direction,nationalaviationacademyStrategic andOperationaldirection,reduction <strong>of</strong>uniformed andcivilian personnel<strong>Annual</strong> review <strong>of</strong> contractsto ensure costeffectivelogistic supportTo implement theredesigned logistic supportconcept in the SA AirForce in accordance withthe approved SA AirForce Logistic SupportPhilosophy and theguidelines in the SA AirForce StrategicTransformation PlanTowards Vision 2012To establish a system <strong>of</strong>measuring the operationalreadiness <strong>of</strong> the SAAir Force to perform itsassigned missions in support<strong>of</strong> the force employmentrequirements for airpowerTo participate in theestablishment <strong>of</strong> a nationalaviation academy inconjunction with suitablepartners in the commercialaviation sectorPossible reduction <strong>of</strong> personnelin accordance withthe optimal force structurein the process <strong>of</strong>being determinedOptimised service deliveryand support that reflect acost-effective balancebetween the operationalrequirement, the contractedwork and the cost to the SAAir Force, thus assisting inreducing the overall cost <strong>of</strong>supportAn optimised logistic supportsystem that reflects acost-effective balancebetween organic SA AirForce logistic support andoutsourced support, thusassisting in reducing theoverall cost <strong>of</strong> supportA reliable measure <strong>of</strong> theSA Air Force's operationalreadiness, indicating thedegree <strong>of</strong> compliance withor deviation from the setoutput objective as providedby the Air Force OfficeInitial flight screening, basicground and flying trainingfor pilots and basic technicaltraining in preparationfor the commencement <strong>of</strong>military flying and systemspecific maintenance trainingin the SA Air Force.Involvement <strong>of</strong> SADC countrieswill ensure support <strong>of</strong>NEPADPossible reduction in personnelcostsRetention <strong>of</strong> optimisedHuman Resources complementin support <strong>of</strong> allocatedroles andresponsibilities/functionsOngoingOngoingOngoingOngoingInprocessA number <strong>of</strong> contracts werereviewed and optimised to effect.Contracts were reduced and the SAAir Force will do the work. Somecontracts were reworked and areout for tender by local industry.Mapping <strong>of</strong> SA Air Force capabilitiesis nearing completion. When completedthis effort will provide theroad map for future improvementsand cost savings. NumerousLogistic documents were revised toaccommodate current requirementsand changes.The process to measure the operationalreadiness <strong>of</strong> the SA Air Forcehas been established. An identifiedmission (scenario) is appreciated todetermine the required force levelsand the readiness <strong>of</strong> the SA AirForce is then measured againstthese requirements during a practicalexercise. This is likely to takeplace in 2009.Liaison at political level regardinginvolvement <strong>of</strong> different Statedepartments has taken place.Studies and site visits were completed,leaving the implementationphase as the next step.Only limited achievements are visiblethus far, because <strong>of</strong> the processbeing followed. Results will only bevisible at the end <strong>of</strong> the investigationenvisaged for December 20<strong>07</strong>.During the FY<strong>2006</strong>/<strong>07</strong> 460 membersleft the service <strong>of</strong> the SA Air Force(410 uniformed and 50 PublicService Act Personnel).programme 378DEPARTMENT OF DEFENCE
Table 5.3. Performance and Service Delivery Improvement for the FY<strong>2006</strong>/<strong>07</strong> (Continued)ActivitiesPlanned ManagementInterventionAnticipatedBenefitStatusActualAchievementCombat capability,review <strong>of</strong>contractsCombatCapability,LogisticRestructuringTrainingCapability, educationtrainingand developmentpractitionertrainingassessorsCommand andcontrol, communicationsAir combat monthly control<strong>of</strong> contract deliverablesto ensure costeffectivelogistic supportBiannual level 6 integrationinterventionsTo implement thedesigned logistic supportconcept <strong>of</strong> the Hawk andGripen systems in accordancewith the approvedSA Air Force LogisticSupport Philosophy andthe guidelines in the SAAir Force StrategicTransformation PlanTowards Vision 2012Continuous level 6 integrationactivities forGripen and Hawk until2011Acquire an internal abilityto train assessors underlicense <strong>of</strong> an externalproviderReduction <strong>of</strong> the SA AirForce telephone bill by atleast 50% through theintroduction <strong>of</strong> tightercontrol measures and theintroduction <strong>of</strong> telephonecall cards for private callsOptimised service deliveryand support that reflect acost-effective requirement,the contracted work and thecost to the Cheetah andHawk systems, thus assistingin reducing the overallcost <strong>of</strong> supportAn optimised logistic supportsystem for Hawk andGripen systems that reflectsa cost-effective balancebetween organic SA AirForce logistic support andoutsourced support, thusassisting in reducing theoverall cost <strong>of</strong> support.Ensure effective integration<strong>of</strong> Strategic <strong>Defence</strong>Packages aircraft intoservice150 assessors trained,qualified and certified within12 months50% cost saving againsttotal outsourceAdditional funds availablefor allocation in support <strong>of</strong>the SA Air Force's operationaloutputOngoingOngoingOne-<strong>of</strong>ffor<strong>2006</strong>/<strong>07</strong>April<strong>2006</strong>Monthly meetings were conductedbetween system managers and contractors,ensuring the cost-effectiveexecution <strong>of</strong> the expenditure plan.An interim support contract wasnegotiated with BAE for Hawk supportto replenish depleted float levelsand the Cheetah phase-out inpreparation for the Gripen implementationwas planned.Initial training <strong>of</strong> Hawk tradesmenwas completed in the RSA duringMarch 20<strong>07</strong>. The preparation <strong>of</strong> thebase supply section to accommodatethe Gripen spares at Air ForceBase Makhado was initiated earlierthan planned to ensure achievement<strong>of</strong> planned milestones.Contracting models are being developedwith Armscor to ensure a costeffectiveapproach is utilised for thenew fighter aircraft. The interimsupport contract for the Hawk wasfinalised during April 20<strong>07</strong> afternegotiations with BAE. The steadystate contract for the Hawk will be inplace in June 2008. The UserRequirement Statement for Gripenaircraft was also approved in April20<strong>07</strong>. An interim support contractwill be in place by March 2008. TwoJoint Program Management Reviewwork sessions were conducted withBAE and SAAB in terms <strong>of</strong> the level6 implementation <strong>of</strong> the two fightersystems. An implementation <strong>of</strong>ficerwas also appointed for the Gripensystem.20 Master Assessor Trainers weretrained by the Assessment College(R 155 <strong>07</strong>0).The trained master assessors thentrained 139 assessors under license<strong>of</strong> the Assessment College(R102 000).The total cost for outsourced trainingwould have been R 530 <strong>07</strong>0,resulting in a cost saving <strong>of</strong> morethan 50%.Target partially achieved (12,35%reduction). The target <strong>of</strong> a 50%reduction was unrealistic, given theservice provided tariff increases andthe installation cost <strong>of</strong> new technologybranch exchanges at units.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 79
Table 5.3. Performance and Service Delivery Improvement for the FY<strong>2006</strong>/<strong>07</strong> (Continued)ActivitiesPlanned ManagementInterventionAnticipatedBenefitStatusActualAchievementAir <strong>Defence</strong>chapter 5Command andcontrolAir TransportCapability,LogisticOperationalForumAir transportcapability, nightoperationsSupportcapabilitySupportcapabilityClose liaison and cooperationwith civilian air trafficmanagement serviceproviderTo establish a forum todevelop coordinated aircraftsystem master plansTo expand the currentnight operation capabilitiesOptimising <strong>of</strong> aviation fuelmanagement throughcomputerised monitoringsystems and improvedcontrol measuresIntroducing active monitoringand controlprocesses for the procurement,disbursementand utilisation <strong>of</strong> rationsNationally standardised airtraffic management equipment,rules and regulations,eliminating duplicationThis forum will optimise thesupport provided andreduce the associatedbudget implicationsThis will increase the ability<strong>of</strong> all transport aircraft toconduct operational missionsat nightSubstantial increase in theability to minimise lossesand improve control <strong>of</strong> procurementAdditional funds availablefor allocation in support <strong>of</strong>the SA Air Force's operationaloutputOngoingTo beoperationalinMarch<strong>2006</strong>To beoperationalinAugust<strong>2006</strong>June<strong>2006</strong>OngoingThe establishment in <strong>2006</strong> <strong>of</strong> thequarterly operations subcommitteeand 6-monthly SA Air Force / AirTraffic Navigation and NavigationServices (ATNS) executive forumshas had very positive results on currentstrategic issues. Examples areflexible usage <strong>of</strong> airspace, coordination<strong>of</strong> SA Air Force exercises,strategic human resource planningand route charges agreements.Sharing <strong>of</strong> information from eachother's radar sensors and SA AirForce access to ATNS air to groundradios are important benefits <strong>of</strong> theclose cooperation achieved.A quarterly logistic/operations forumwas successfully instituted at directoratelevel and at the executionlevel (squadron and product supplysupport management). The forumaligns operational/logistic requirements,providing a joint understanding<strong>of</strong> aircraft requirements in terms<strong>of</strong> mission availability, upgrades orcapability development required.A restricted number <strong>of</strong> tactical aircraftwere available for force preparationin the FY<strong>2006</strong>/<strong>07</strong> due to forceemployment utilising available aircraft.The night operation capabilitieswere therefore not expanded in<strong>2006</strong>/<strong>07</strong>, but aircrew night currencieswere just maintained. It isenvisaged that the expansion willonly be accomplished in theFY2008/09.Target achieved. Management <strong>of</strong>aviation fuel was implemented onthe Operational Support InformationSystem at all bases, creatingimproved visibility <strong>of</strong> usage andreplenishment. A new SA Air Forceaviation fuel management instructionis in the promulgation process.Measures taken to monitor utilisation<strong>of</strong> rations and to address deviationsinclude a minimum <strong>of</strong> oneevaluation per unit, carried out bySA Air Force Hospitality Servicespersonnel. Where necessary, followup evaluations take place to ensureoptimal ration utilisation.programme 380DEPARTMENT OF DEFENCE
POLICY DEVELOPMENTSThe SA Air Force is planning for and implementing the SAAir Force Vision 2015, which provides strategic guidanceto the Air Force for a moving ten-year period.SERVICES SCALED DOWN, SUS-PENDED OR ABOLISHED DURINGTHE FY<strong>2006</strong>/<strong>07</strong>Services Scaled Down. Alouette helicopters have to bephased out in 20<strong>07</strong> and replaced by Agusta A-109 helicopters.Three Alouette helicopters are operational, supportingSA Navy requirements on SAS PROTEA and will bereplaced by Lynx helicopters.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 81
Maritime <strong>Defence</strong>chapter 6The first submarine the SAS ‘MANTHATISI arrived in South Africaon 7 April <strong>2006</strong>.programme 482DEPARTMENT OF DEFENCE
Chapter SixPROGRAMME 4 -MARITIME DEFENCEa nationalpartnershipto build abetter lifefor allDEPARTMENT:DEFENCEOVERVIEWDuring the period under review theSA Navy has achieved many outstandingaccomplishments bothlocally and abroad. The fourfrigates and two <strong>of</strong> the three newsubmarines are in the service <strong>of</strong>the SA Navy. The first submarine,SAS 'MANTHATISI, arrived inSouth Africa on 7 April <strong>2006</strong>. Thesecond submarine, SAS CHARLOTTEMAXEKE, arrived on 26 April 20<strong>07</strong> whilethe third, that was named SAS QUEENMODJADJI in Germany in March 20<strong>07</strong>, isyet to be commissioned.The SA Navy now has an improved andsophisticated surface warfare capabilityas the last three frigates were commissionedinto the navy during the year. Two<strong>of</strong> the frigates conducted foreign deploymentsand proved their capabilities. TheSA Navy proudly appointed its first blackOfficer Commanding <strong>of</strong> a major war vessel,Captain (SAN) B. Mhlana, who tookcommand <strong>of</strong> the frigate SAS ISANDL-WANA in February 20<strong>07</strong>. CommanderM. Clulee, the first surface warfare qualifiedwoman, took command <strong>of</strong> a surfacecombatant during <strong>2006</strong>.The SA Navy has made great strides incontributing to the Government's foreignpolicy imperatives pertaining to peaceand security in Africa. One frigate, SASPROTEA, and two strike craft visited variousAfrican countries on both the eastand west coasts during the year to fosterbetter relations and conduct training.Chief <strong>of</strong> the SA Navy participated in the12th <strong>Annual</strong> Standing Maritime Committee<strong>of</strong> the Interstate <strong>Defence</strong> andSecurity Committee (ISDSC) in Dar esSalaam, as well as the 2nd 'Sea Power forAfrica' symposium hosted by Nigeriaduring the year. The SA Navy providedvarious learning opportunities to over 40learners from a number <strong>of</strong> African countries.This initiative has contributed tothe SA Navy's involvement with Africannations and improving interoperabilitywith them.The SA Navy continues to make goodprogress in rejuvenating the humanresource component. The SA Navy hascontinually contributed to the skills revolutionagenda <strong>of</strong> government throughwidening access to the Military SkillsDevelopment System (MSDS), with specificfocus on improving the pr<strong>of</strong>ile onrepresentativeness with regard to raceand gender. This has also contributed torejuvenating the Reserve component <strong>of</strong>the SA Navy. To date the MSD system hasprovided over 480 members to the NavalReserves. The 'One Force' concept hasbeen fully implemented in the SA Navy.The SA Navy has made significant headwayin rejuvenating certain facilities andalso taken ownership <strong>of</strong> new facilities,ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong>83
such as the new Fleet Command Headquarters. However,most <strong>of</strong> its buildings, especially in the training environment,have become delapitated.The SA Navy has over the years reduced its footprint, disposed<strong>of</strong> obsolete equipment and reduced its ForceStructure in order to ensure that it remains affordable andsustainable. The operation <strong>of</strong> ageing vessels and moreparticularly the obtaining <strong>of</strong> spares for such vessels isplacing a strain on resources. The Navy is still in theprocess <strong>of</strong> learning with regard to the running costs <strong>of</strong> theStrategic <strong>Defence</strong> Packages that are more expensive thanoriginally anticipated. The two biggest limiting factors forthe SA Navy's remaining sustainable in the future are itslimited budget allocation and the challenge to retain itspersonnel, especially those in the technical domain.Even though the SA Navy managed to achieve most <strong>of</strong> itsmain objectives during the year under review, it is facedwith some challenges it has to overcome in the nearfuture. The integration <strong>of</strong> the Strategic <strong>Defence</strong> Packagesis progressing steadily. There are still many areas to beaddressed to reach the stage where they will be fully operational.The retention <strong>of</strong> specialist/scarce skills personnelwill remain a challenge for the SA Navy in the future,especially in the technical and diving domains. The Navyhas implemented various measures to address this issue,however, its rate <strong>of</strong> loss is still increasing. This matter willhave to receive the attention <strong>of</strong> higher authority, as the SANavy is not the only service facing this dilemma.Although the SA Navy is transforming from an 'old' to a'new' navy, many ageing pieces <strong>of</strong> equipment and facilitiesare still being utilised. These are becoming more andmore difficult to maintain at optimal state <strong>of</strong> functionality.Keeping these vessels and facilities as a going concernplaces a huge burden on the SA Navy's under fundedoperating budget.Given the fact that the SA Navy is seriously understaffedin certain critical areas, and under severe budget constraints,it has managed to achieve its outputs and objectivesto contribute to the Military Strategic Objectives andto meet the various Government initiatives and imperatives.PURPOSEThe SA Navy provides prepared and supported maritimedefence capabilities for the defence and protection <strong>of</strong>South Africa.MEASURABLE OBJECTIVEDefend and protect South Africa by maintaining and providingprepared and supported maritime combat forces,services and facilities that meet the requirements <strong>of</strong> theGovernment.OUTPUTSThe Maritime <strong>Defence</strong> Programme provides maritimedefence capabilities for South Africa in the areas coveredby its five subprogrammes, namely Maritime DirectionCapability, Maritime Combat Capability, MaritimeLogistic Support Capability, Maritime Training Capabilityand Maritime Base Support Capability.Details <strong>of</strong> Maritime <strong>Defence</strong> Programme outputs areshown in Table 6.1.Maritime <strong>Defence</strong>chapter 6programme 484Table 6.1: Maritime <strong>Defence</strong> Programme Outputs for the FY<strong>2006</strong>/<strong>07</strong>Output Performance Measure TargetSubprogramme Maritime Direction CapabilityStrategic directioncapabilityForce preparationdirection capabilityThe degree to which thestated outputs and targetsin the SA NavyStrategic Level 2Business Plan have beenachievedThe degree to which thestated outputs and targetsin the FleetCommand Level 3Business Plan have beenachievedDEPARTMENT OF DEFENCEApproved SA NavyStrategic Level 2 BusinessPlan (Detailed outputscontained in Plan in orderto achieve credible maritimedefenceApproved Fleet CommandLevel 3 Business Plan(Detailed force preparationdirection and force provisionoutputs in support <strong>of</strong>SA Navy Level 2 StrategicBusiness Plan as containedin the Level 3 Plan)Achievement100% compliance with the approved SANavy Navy Strategic Level 2 Business Plan.100% compliance with the Fleet CommandLevel 3 Business Plan.
Table 6.1: Maritime <strong>Defence</strong> Programme Outputs for the FY<strong>2006</strong>/<strong>07</strong> (Continued)Output Performance Measure TargetAchievementSubprogramme Maritime Combat CapabilitySurface combatcapabilitySubmarinewarfare capabilityCombat supportand sealiftcapabilityMine warfarecapability(mine hunting)The degree to which theforce preparation hourshave been achievedThe degree to which thestated readiness levelshave been maintained interms <strong>of</strong> force employmenthoursThe degree to which theforce preparation hourshave been achievedThe degree to which thestated readiness levelshave been maintained interms <strong>of</strong> force employmenthoursThe degree to which theforce preparation andforce employment hourshave been achievedThe degree to which thestated readiness levelshave been maintained interms <strong>of</strong> force employmenthoursThe degree to which theforce preparation hourshave been achievedThe degree to which thestated readiness levelshave been maintained interms <strong>of</strong> force employmenthoursFour frigates and threestrike craft5 064 hours5 790 hoursTwo submarines4 080 hours240 hours(1 680 hours for trials inGermany and 888 hoursfor transit to South Africanot included in theabove)One combat supportvessel1 044 hours1 488 hoursThree mine hunters960 hours168 hoursForce preparation hours - 5 364. Many hourswere utilised for trials <strong>of</strong> the combat suites <strong>of</strong> thefrigates. SAS ISANDLWANA visited Chile to bepresent at an international Maritime Expo.Force employment hours - 3 621. Met JointOperations Division readiness requirements.The frigates were involved in combat suite fit trialsfor the major part <strong>of</strong> the year. All four frigateswere handed over to the Fleet. The OperationalQualification Phase <strong>of</strong> the frigates is still to becompleted. Numerous delays have occurredduring the integration <strong>of</strong> the new equipment onboard the frigates. The frigates were deployedon two foreign deployments, one along the westcoast <strong>of</strong> Africa and one to South America forATLASUR VI, which was a multinational exercise.In the case <strong>of</strong> strike craft mechanicaland/or electrical defects, lack <strong>of</strong> spare parts andtechnical personnel shortages have preventedreadiness levels from being achieved. Despitethis, two strike craft were deployed along theeast coast <strong>of</strong> Africa and participated in a searchand rescue exercise <strong>of</strong>f La Reunion.Force preparation hours - 658. Not all hourswere utilised owing to contractor warranteeclaims. Hours were also utilised to train S102submarine crew alongside.Nil force employment hours were provided. First<strong>of</strong> Class Trials was conducted despite technicalchallenges.Fuel for these hours was paid via project funds.CME used a total <strong>of</strong> 3 622 hours for trials andtransit to South Africa.Force preparation hours - 1 689. SAS DRAK-ENSBERG achieved more hours than were allocateddue to the deployment to escort the secondType 209 submarine from Germany to SouthAfrica.Force employment hours - 744. The SAS PRO-TEA replaced SAS DRAKENSBERG on ExerciseBOURBON and Interop EAST as Chief <strong>of</strong> JointOperations deployed SAS DRAKENSBERG atthe time. SAS DRAKENSBERG met all Chief <strong>of</strong>Joint Operations requirements during the year.Force preparation hours - 1 688. Minehunterswere utilised for short patrols, hence the increasein hours. Severe limitations exist owing to variousmechanical and electrical problems. Delaysin repairs caused by lack <strong>of</strong> spares and technicalpersonnel compounded by financial constraints.Force employment hours - nil, as there was norequirement by Joint Operations Division.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 85
Table 6.1: Maritime <strong>Defence</strong> Programme Outputs for the FY<strong>2006</strong>/<strong>07</strong> (Continued)Output Performance Measure TargetAchievementMaritime <strong>Defence</strong>chapter 6programme 486Hydrographicalservicescapability 1Operationaldiving capabilityCombat researchand supportcapabilityInshore patrolcapabilityOperational boatsquadron capabilityThe degree to which theforce preparation and surveyhours have beenachievedThe degree to which thestated readiness levelshave been maintained interms <strong>of</strong> force employmenthoursThe degree to which theforce preparation hourshave been achievedThe degree to which thestated readiness levelshave been maintained interms <strong>of</strong> force employmenthoursThe degree to which thestated outputs and targetsin the Institute forMaritime Technologymulti-year plan have beenachievedThe degree to which theforce preparation hourshave been achievedThe degree to which thestated readiness levelshave been maintained interms <strong>of</strong> force employmenthoursThe degree to which theforce preparation hourshave been achievedThe degree to which thestated readiness levelshave been maintained interms <strong>of</strong> force employmenthoursDEPARTMENT OF DEFENCEOne hydrographic surveyvessel144 hours2 880 survey hoursOne team800 hours1 200 hoursApproved and executedInstitute for MaritimeTechnology Multi-yearPlan in support <strong>of</strong> operationaland strategic plansThree inshore patrolvessels504 hours1 176 hoursOne operational boatsquadron2 880 hours2 450 hours1Performance measures and targets adjusted subsequent to publication <strong>of</strong> the Plan.Force preparation hours, including survey hours -983. The SAS PROTEA was utilised for surveyoperations for most <strong>of</strong> the year. However,defects prevented the vessel from achieving theallocated survey hours.Force employment hours - 1 116 were used inspite <strong>of</strong> no Force Employment hours planned.The SAS PROTEA replaced SAS DRAKENS-BERG on Interop EAST and Exercise BOUR-BON, thus affecting her survey schedule.Force preparation hours - 368. Two teams wereavailable. The extreme shortage <strong>of</strong> personnel isattributed to the lucrative job <strong>of</strong>fers to qualifieddivers <strong>of</strong>f shore. This has put severe strain onboth teams. A successful diving exercise, DIVEEX 06, was held during August <strong>2006</strong> <strong>of</strong>f RichardsBay involving 42 divers including some from theReserve.Force employment hours - 2 967. Increasedforce employment required was met in spite <strong>of</strong>the shortage <strong>of</strong> divers. Various ad hoc tasks performedin support <strong>of</strong> the SAPS during internaloperations such as combating illegal poachingand borderline control activities.The target was achieved according to plan.Institute for Maritime Technology was involved in76 projects for the Fleet and only one force preparationexercise, Exercise TRANSOCEANIC.Force preparation hours - 232. Fewer forcepreparation hours were used. This was mainlybecause <strong>of</strong> the non-availability <strong>of</strong> vessels withoutnumerous mechanical defects and long delays inthe procurement <strong>of</strong> spares.Force employment hours - nil. Were not requiredfor force employment, however, the vessels wereunderutilised mainly because <strong>of</strong> mechanicaldefects and long delays in the procurement <strong>of</strong>spares.Force preparation hours - 1 262. The MaritimeReaction Squadron was established in the SANavy and incorporated the Operational BoatSquadron and the Naval Reaction Force, as theOperational Boat Squadron alone could not providethe full spectrum <strong>of</strong> required capabilities asrequired by Chief <strong>of</strong> Joint Operations. Plan overestimated hours as there was not full clarity onthe type <strong>of</strong> operations the Operational BoatSquadron would be utilised in.Force employment hours - 1 271. The plannedtargets were overestimated, as there was noclarity on the type <strong>of</strong> operations the operationalboat squadron would be used for. They providedcontinued support to Marine and CoastalManagement and SAPS in the protection <strong>of</strong>marine resources. They also formed the
Table 6.1: Maritime <strong>Defence</strong> Programme Outputs for the FY<strong>2006</strong>/<strong>07</strong> (Continued)Output Performance Measure TargetAchievementSubprogramme Maritime Logistic Support CapabilityProvision <strong>of</strong>dockyard, fleetmaintenance,publication provision,logisticwarehousing,armament warehousingcommandand logisticsand informationsystemscapabilitiesFormative trainingcapabilityFunctional andwarfare trainingcapabilityTechnical trainingcapabilityStaff trainingcapabilityOverseas trainingcapabilityMaritimeReserves trainingcapabilityThe degree to which themaritime logistic supportservices satisfied clientrequirementsSubprogramme Maritime Training CapabilityThe degree to which theplanned training andsyllabi have beenachievedThe degree to which theplanned training andsyllabi have beenachievedThe degree to which theplanned training and syllabihave been achievedThe degree to which theplanned training andsyllabi have beenachievedThe degree to which theplanned overseas trainingschedule has beenachievedThe degree to which theplanned training and utilisationfor Reserves havebeen achievedProvision <strong>of</strong> maritimelogistic support servicesin accordance with statedoperational readinesslevels <strong>of</strong> required forcedesign and its utilisationNine learningopportunities1 554 Regular andReserve learners inorder to sustain theHuman Resources component<strong>of</strong> the SA Navy169 learningopportunities2 185 functionally trainedRegular and Reservelearners74 learning opportunities250 technically trainedRegular and ReservelearnersFour learning opportunities96 staff trained Regularand Reserve learnersApproved and executedoverseas trainingscheduleAdditional 150 trainedreserves40 000 man-days usedFully operationalReserve managementCentre and fully integratedutilisation <strong>of</strong>Reserves within the SANavyMaritime Contingent in Burundi. The MaritimeReaction Squadron was utilised for protection inCape Town harbour during September <strong>2006</strong> forAfrica Air <strong>Defence</strong> Expo and the visit <strong>of</strong> Indianship INS MUMBAI .The achievement <strong>of</strong> this output varied from 46%to 97,8%. The Armament Warehousing capabilityachieved 46% <strong>of</strong> its business plan due tosevere personnel shortages. The NavalDockyard achieved 50,6%. The transfer <strong>of</strong> theDockyard to ARMSCOR was delayed by courtaction. This transfer was scheduled to takeplace on 1 April 20<strong>07</strong> pending the court decision.Other support capabilities achieved more than64% <strong>of</strong> their business plans and met statedrequirements. The Fleet Maintenance capabilityachieved 97% <strong>of</strong> its business plan.Nine learning opportunities were presented. Ofthe planned 1 554 only 974 regular and reservelearners qualified. Fewer MSDS members (478)graduated at the end <strong>2006</strong> due to the migration<strong>of</strong> members to attend the <strong>of</strong>ficers course, diverenablement training and for medical reasons.Of the planned 169 learning opportunities 135were presented. 12 learning opportunities werecancelled owing to insufficient nominations andlack <strong>of</strong> integrated planning. A total <strong>of</strong> 1 847learners were functionally trained.74 learning opportunities were presented. 216learners were technically trained. Of the planned835 learners 646 qualified. (These figuresinclude technical platform training <strong>of</strong> MSDSmembers). Fewer learners were allocated to thetechnical platform training phase.Four learning opportunities were presented. Atotal <strong>of</strong> 102 learners qualified, which is more thanindicated in the target. The reason is that thesenior management course completed is notreflected in target.Target achieved according to overseas trainingschedule with all funds allocated expended. 27learners trained in a variety <strong>of</strong> overseas learningopportunities.Only 57 naval reserves were trained mainly dueto the unavailability <strong>of</strong> reserves to attend learningopportunities. A total 35 000 man-days (87,5%)were used as insufficient funding was availableto achieve required target.The Reserve Management Centre was establishedwith representatives in each province.The One Force Concept is being fully appliedwithin the SA Navy. The Reserves are deployedand trained together with the Regulars.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 87
Table 6.1: Maritime <strong>Defence</strong> Programme Outputs for the FY<strong>2006</strong>/<strong>07</strong> (Continued)Output Performance Measure TargetAchievementSubprogramme Base Support CapabilityBase support capabilityat Simon'sTown, Durban andPort ElizabethThe degree to whichbase support servicessatisfied client requirementsProvision <strong>of</strong> base supportservices in accordancewith stated operationalreadiness levels <strong>of</strong> therequired force design andits utilisationBase support services were delivered atNaval Base Simon's Town, and NavalStations Durban and Port Elizabeth accordingto the respective business plans in spite<strong>of</strong> being understaffed. Support included supportprovided to many foreign naval shipsthat visited. Naval Station Port Elizabethwas commissioned in June <strong>2006</strong>. At NavalBase Simon's Town severe strain is experiencedowing to shortages <strong>of</strong> protection servicespersonnel and an ageing vehicle fleet.PUBLIC PRIVATE PARTNERSHIPAGREEMENTSThe SA Navy commenced a process <strong>of</strong> establishing a SeaSafety Training Centre (SSTS) through public private partnership(PPP) in the FY2005/06. The inception phase,which is the first phase <strong>of</strong> the PPP project cycle in line asdefined in the PPP guidelines developed in terms <strong>of</strong>Section 16 <strong>of</strong> the PFMA, 1999, has been completed. PriceWaterhouse Cooper Financial Services has been appointedas the Transaction Advise. The contract is in place tobe signed by the Secretary for <strong>Defence</strong>. No financialexpenditure occurred during the FY<strong>2006</strong>/<strong>07</strong>. TheFeasibility Study will be conducted in the near future andis scheduled for completion by November 20<strong>07</strong>. Thereport on the Feasibility Study will be submitted throughthe Chief <strong>of</strong> Acquisition (Chief <strong>of</strong> Matériel) to Treasury forapproval.SA NAVY SPECIFIC EXERCISESCONDUCTED DURING THEFY<strong>2006</strong>/<strong>07</strong>Details <strong>of</strong> SA Navy specific exercises conducted duringthe FY<strong>2006</strong>/<strong>07</strong> are reflected in Table 6.2.Table 6.2: SA Navy Specific Exercises Conducted during the FY<strong>2006</strong>/<strong>07</strong>ExerciseResults AchievedMaritime <strong>Defence</strong>chapter 6programme 488Exercise RED LIONTask Force exerciseExercise TRANSOCEANICNaval control <strong>of</strong> shippingExercise BELL BUOYNaval control <strong>of</strong> shippingExercise BOURBONSearch and rescueExercise ATLASURTask force exercise with South American countriesINTEROP EASTVisits to and exercises with African naviesINTEROP WESTVisit to and exercises with African naviesDEPARTMENT OF DEFENCEThe exercise planned for July <strong>2006</strong> did not take place owingto unavailability <strong>of</strong> ships as the vessels were deployed elsewhere.Exercise TRANSOCEANIC took place over the period 14-25August in South Africa. Participating countries were Brazil,Argentina, Uruguay and South Africa. SA Navy Reserveteams stationed at the six main ports <strong>of</strong> South Africa participatedin this exercise.The exercise took place in Brazil in September <strong>2006</strong>, with theSA Navy attending as an observer.The exercise took place at La Reunion over the periodNovember <strong>2006</strong> with the French Indian Ocean Navy. Theobjectives <strong>of</strong> the exercise were achieved.The biannual exercise was hosted by Uruguay inOctober/November <strong>2006</strong>. Participating navies wereArgentina, Brazil, South Africa and Uruguay. All objectiveswere achieved.INTEROP East took place in October/November <strong>2006</strong>, withvisits and some training in Mozambique, Tanzania and Kenya.INTEROP West took place over the period May/June <strong>2006</strong>.SAS AMATOLA visited 4 African countries; Nigeria,Cameroon, Gabon and São Tomé. Participated in NigerianNavy Presidential Fleet Review to mark its 50th anniversary.
Table 6.2: SA Navy Specific Exercises Conducted during the FY<strong>2006</strong>/<strong>07</strong> (Continued)ExerciseChile International ExhibitionParticipation in exhibitionINTEROP NORTHVisit to and exercises with African naviesResults AchievedSAS ISANDLWANA participated in Expo NAVALE, an internationalMaritime Expo in Chile in <strong>2006</strong>.Incorrectly published, the exercise is scheduled for theFY20<strong>07</strong>/08 as Interop East/North.SERVICES TO BE SCALED DOWN, SUSPENDED OR ABOLISHEDDetails <strong>of</strong> Maritime <strong>Defence</strong> Programme services to be scaled down or suspended during the FY<strong>2006</strong>/<strong>07</strong> are shown inTable 6.3.Table 6.3: Services to be Scaled Down or Suspended during the FY<strong>2006</strong>/<strong>07</strong>SubprogrammeReduction inOutputReason for ScalingDown/ Suspension <strong>of</strong>ServiceShortfall/Savings(R'000)ImplicationsAchievementMaritimeLogisticscapabilityMaritimeTraining(HumanResources support)capabilityClosure <strong>of</strong> armamentDepotDurban (serviceto be provided bySimon's Town)Investigationslaunched in terms<strong>of</strong> DOD planningInstruction <strong>07</strong>/02re-rationalisation<strong>of</strong> SA Navy trainingunitsReduction in costsand improved efficiencythrough consolidationand concentration<strong>of</strong> facilitiesin Simon's TownIncreasing efficiency,effectiveness andeconomy through proposedreductions andadjustments to DODforce structure0(Transferred)0(Transferred)It is plannedthat the facilitywill only beclosed at theend <strong>of</strong> theFY<strong>2006</strong>/<strong>07</strong>Savings willonly be effectedonce the newfacilities arehanded over tothe SA Navy -scheduled forthe FY20<strong>07</strong>/08Target date for closure hasmoved from December<strong>2006</strong> to June 20<strong>07</strong> to preventdelay in the LIMS toOSIS electronic migrationprocess.Project SCREWDRIVERhas been registered and aconsultant has beenappointed. Facilitiesscheduled to be handedover in the FY2008/09.PERFORMANCE AND SERVICE DELIVERY IMPROVEMENTDetails <strong>of</strong> Maritime <strong>Defence</strong> Programme performance and service delivery improvements reflected in Table 6.4.Table 6.4: Performance and Service Delivery Improvement for the FY<strong>2006</strong>/<strong>07</strong>ActivitiesPlanned ManagementInterventionAnticipatedBenefitStatusActualAchievementNaval Order:OrganisationalExcellenceThrough ImprovedService DeliveryImplementation <strong>of</strong>Naval Order:Plans 23/2004.The SA Navy'sstrategic directionprocessInstitutionalisation <strong>of</strong> NavalOrder on OrganisationalExcellence throughImproved Service Delivery;encompasses full spectrum<strong>of</strong> organisational functioning(ongoing evolution)Optimisation <strong>of</strong> SA Navystrategic direction processwith specific reference toalignment <strong>of</strong> planningprocesses at Levels 2,3 and4 (ongoing evolution)Increased servicedelivery; optimisedinterface managementThe four subsidiaryelements <strong>of</strong> the SANavy strategic directionprocess will beformalised, regulatedand optimised, withconcomitant effectson service deliveryIn processIn processNaval Order on OrganisationalExcellence through ImprovedService Delivery wasimplemented.Naval Order has beenimplemented.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 89
Table 6.4: Performance and Service Delivery Improvement for the FY<strong>2006</strong>/<strong>07</strong> (Continued)ActivitiesPlanned ManagementInterventionAnticipatedBenefitStatusActualAchievementEnvironmentalPolicyOperationalSupportInformationSystem (OSIS)Incorporation <strong>of</strong> force preparationand force employmentsactivities with aspectssuch as reporting whalesand dolphins on patrolreports and sinking targetsas artificial reefs (ongoingevolution)Continued work to clean updata by means <strong>of</strong> the Bill <strong>of</strong>Materials project.Disposal <strong>of</strong> related surplus/obsolete equipment (ongoingevolution)Unit information ManagementSystem phased out(ongoing evolution)Implementation <strong>of</strong> performancemeasurement model(ongoing evolution)Training <strong>of</strong> personnel (ongoingevolution)Enhanced publicimage, as also continuous,entrenchedsupport to other StatedepartmentsImplementation <strong>of</strong>OSIS and establishingit as basis <strong>of</strong> theconfiguration managements,maintenanceplanning andmateriel accountingsystem <strong>of</strong> the SANavyContinuousIn process<strong>Report</strong>ing <strong>of</strong> whales and dolphinsby ships made on a continuousbasis. No sinking <strong>of</strong>vessels took place during theyear.64,09% achieved.Implementation <strong>of</strong> a commoninventory system for all SA Navybusiness areas only scheduledfor completion in the nextfinancial year.POLICY DEVELOPMENTSThe only major change in policy <strong>of</strong> the SA Navy is the change from one large MSDS intake to two smaller intakes peryear with effect from January 20<strong>07</strong>. This will impact on expenditure and the Formative Training Capability. The impactis still to be fully determined. A total <strong>of</strong> seven Naval Orders were promulgated and implemented during the reportingperiod.programme 4chapter 6Maritime <strong>Defence</strong>90DEPARTMENT OF DEFENCE
Chapter SevenPROGRAMME 5 -MILITARY HEALTH SUPPORTa nationalpartnershipto build abetter lifefor allDEPARTMENT:DEFENCEOVERVIEWDuring the FY<strong>2006</strong>/<strong>07</strong> the effect <strong>of</strong>the changed initiatives <strong>of</strong> LieutenantGeneral V.I. Ramlakan, theSurgeon General, started to redirectthe South African MilitaryHealth Service (SAMHS). Thechanges to the SAMHS landscapeare visible in critical areas thatsupport the service delivery <strong>of</strong> theorganisation. Of note is the rectification<strong>of</strong> administrative procedures and managementprocesses. This interventionclarified the implementation <strong>of</strong> policies,strategies and plans. The new SAMHSLogistic Master Plan is a landmark productin this domain. The implementation<strong>of</strong> sound control mechanisms supportedthe responsible and efficient roll-out <strong>of</strong>the FY<strong>2006</strong>/<strong>07</strong> Strategic Business Plan.The activation <strong>of</strong> the SAMHSAccountability Management Council(AMC) was a highlight. As a result <strong>of</strong> theNational HIV/AIDS Strategy Conferencehosted by the <strong>Department</strong> <strong>of</strong> Health on 14and 15 March 20<strong>07</strong>, which the SAMHSwas part <strong>of</strong>, as well as the DOD'sHIV/AIDS Strategy, as driven by theSAMHS, will have to be revised accordingly.The health support to the new air andmaritime systems acquired through theSpecial <strong>Defence</strong> Package (SDP) was anarea <strong>of</strong> focus. This resulted in the registration<strong>of</strong> specific projects to address theneeded capabilities. The integration <strong>of</strong>the health element into the SDP will contributeto the successful institutionalisation<strong>of</strong> the systems.The recruitment <strong>of</strong> new personnel <strong>of</strong> allraces and a well-balanced gender compositionwere used to rejuvenate theSAMHS. The successful utilisation <strong>of</strong> theMSDS is <strong>of</strong> particular importance. Thetraining <strong>of</strong> these MSDS members andother health care workers by the SAMHSis a direct contribution to the 'AcceleratedShared Growth Initiative for SouthAfrica'.The SAMHS Command Council, as themost senior forum in the SAMHS,focused on the alignment between theStrategy and Plan roll-out. Short, mediumand long-term changes in the environmentwere accommodated. This led tothe reprioritisation <strong>of</strong> and a dynamicapproach to managerial challenges. Theforced resettlement <strong>of</strong> the SAMHSHeadquarters was a clear example <strong>of</strong>these actions. New mechanisms <strong>of</strong>reporting on performance against planfacilitated the process. During theFY<strong>2006</strong>/<strong>07</strong> the SAMHS evaluated,planned and initiated actions to acquire,renew and maintain health facilities.Delivering a world-class military healthservice, which is the vision <strong>of</strong> theSAMHS, requires that health services beANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong>91
Military Health Supportchapter 7programme 592provided at facilities that project this standard. The threemilitary hospitals were priorities in this endeavour.The SAMHS made good progress in the area <strong>of</strong> readiness.The Military Psychological Institute is in the process <strong>of</strong>developing a health readiness measurement instrument.This will accommodate the unique needs <strong>of</strong> a militaryhealth organisation. The readiness to manage mass casualtieswas exercised and evaluated during ExerciseLANCET. Highlights were the utilisation <strong>of</strong> a casualtytrain, as well as mass air evacuation. This contributes tothe preparation for any health eventualities during the2010 Soccer World Cup. The SAMHS is fully involvedwith the <strong>Department</strong> <strong>of</strong> Health's preparations for the 2010FIFA World Cup.The SAMHS functions in a fast-changing health environmentthat creates specific challenges. Priority number oneis ensuring the availability and retention <strong>of</strong> health carepr<strong>of</strong>essionals. The second priority in this regard is theSAMHS facilities and the renewal <strong>of</strong> main medical equipment.The SAMHS has made great strides in terms <strong>of</strong>expediting the recruitment process with regard to medicaldoctors, as well as other health care practitioners. As brokeredwith C HR, these practitioners will be appointedimmediately, but temporarily for a year, while the normalDOD vetting process takes its required course. In order toretain and attract health care practitioners to the SAMHS,a new salary dispensation for this category <strong>of</strong> workers isbeing worked on. As part <strong>of</strong> the relocation process, theSAMHS has initiated a process in terms <strong>of</strong> placing theSAMHS on the cutting edge <strong>of</strong> technology, for examplethe installation <strong>of</strong> the video-conferencing facility. Thenext phase <strong>of</strong> this project will be in the clinical environment.DEPARTMENT OF DEFENCEPURPOSEThe Military Health Support Programme provides preparedand supported medical combat support elementsand services.MEASURABLE OBJECTIVEProvides prepared and supported military medical healthcapabilities, services and facilities in support <strong>of</strong> thedefence <strong>of</strong> South Africa that meet the requirements <strong>of</strong>Government.OUTPUTSThe Military Health Service Programme provides medicalcombat support and other medical services. It maintainsmilitary health and training facilities, including specialistfacilities such as the Institutes for Maritime and AviationMedicine. It also provides various support functions to,among others, the <strong>Department</strong>s <strong>of</strong> Health andAgriculture, when required.There are seven subprogrammes:● Strategic direction;● Mobile health support;● Area military health service;● Specialist/tertiary health service;● Product support capability;● Base support capability; and● Military health training capability.Details <strong>of</strong> the Military Health Service Programme outputsare shown in Table 7.1.Table 7.1: Military Health Service Programme Outputs for the FY<strong>2006</strong>/<strong>07</strong>Output Performance Measure TargetSubprogramme Strategic DirectionStrategic direction tothe Military HealthService Programme,military healthadvice to the DODand the allocationand management <strong>of</strong>Military HealthService resourcesThe degree to which theDOD's policies, strategiesand plans areimplemented in respect<strong>of</strong> military health mattersAll policies, strategies andplans are implemented asspecified100% amended30% reviewedAchievementThe target was fully achieved as all policies,strategies and plans are implementedas specified.The target was 70% achieved. A highturnover in human resources, especially atthe corporate levels, caused a lack <strong>of</strong> continuitybetween those members who wrotethe policies and those who must amendand revise.The target was 25% achieved. A highturnover in human resources caused alack <strong>of</strong> continuity between those memberswho wrote the policies and those whomust amend and revise.
Table 7.1: Military Health Service Programme Outputs for the FY<strong>2006</strong>/<strong>07</strong> (Continued)Output Performance Measure TargetAchievementThe degree to which allrequired inputs to DODpolicies, Cabinet memoranda,strategies andplans are submittedThe degree to whichrequired support toGovernment initiatives ismetAll required inputs submittedon time and in accordancewith requirements100% support provided asrequiredThe target was fully met with all requiredinputs, Cabinet Memorandum, strategies andplans submitted.100% support provided as required.Subprogramme Mobile Health SupportOperation HealthSupport capabilityThe degree to which thereadiness state andforce employmentrequirements are metThe degree <strong>of</strong> compliancewith statutorynorms and regulationsOne Regular Forcemedical battalion groupOne Regular Forcespecialist medical battaliongroupThree Reserve medicalbattalion groups100%8 Medical Battalion succeeded in meetingrequirements in spite <strong>of</strong> a lack <strong>of</strong> health carepr<strong>of</strong>essionals, specifically operational emergencycare practitioners and serviceableequipment. Health care pr<strong>of</strong>essionals weredeployed on all external and internal operationsby deploying forces from the SAMHSas a whole. The Battalion conducted forcepreparation exercises such as ExerciseLANCET and supported exercises such asExercise SEBOKA, YOUNG EAGLE andWAYSIDE. 8 Medical Battalion Group conductedtraining exercises during the financialyear in order to improve the skills base in theReserve Force battalions. Two projects wereinstituted to address the maintenance andrepair <strong>of</strong> Beyond Economical Repair vehicles,as well as mid-life upgrades <strong>of</strong> mainmedical equipment.7 Medical Battalion Group achieved most <strong>of</strong>its objectives despite a shortage <strong>of</strong> healthcare practitioners including those with specialistskills. The critical shortage <strong>of</strong> parachute-qualifiedoperational emergency carepractitioners is a great concern. The chemical,biological and radiation capability isavailable in the form <strong>of</strong> staff <strong>of</strong>ficers at 7Medical Battalion Group who can bedeployed when required. 7 Medical BattalionGroup also presents courses covering therequired subjects. The Battalion successfullyexecuted Exercise WAYSIDE to test andevaluate equipment under development.The low level <strong>of</strong> staffing <strong>of</strong> key personnel andthe loss <strong>of</strong> skills in the three Reserve battalionshas an impact on readiness. Althoughlarge numbers have been recruited into thethree Reserve battalions, the level <strong>of</strong> militaryskills is low and training opportunities arerestricted. The Military Health TrainingFormation is in the process <strong>of</strong> addressingReserve training.Full compliance with statutory norms andregulations was achieved.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 93
Table 7.1: Military Health Service Programme Outputs for the FY<strong>2006</strong>/<strong>07</strong> (Continued)Output Performance Measure TargetAchievementSubprogramme Area Military Health ServiceMilitary Health Supportchapter 7programme 594Geographic militaryhealth servicecapabilityQuality <strong>of</strong> service providedand degree <strong>of</strong> availability<strong>of</strong> military healthunits as indicatedSubprogramme Specialist/tertiary Health ServiceA tertiary militaryhealth capability forserving and retiredSANDF membersand their dependants,GovernmentVIPs and otherGovernmentapproved patients,including the UNand SADC countriesthrough military hospitalsin Cape Town,Bloemfontein andPretoriaTertiary militaryhealth servicesDegree <strong>of</strong> operationalreadinessIn-patient daysItems per scriptDEPARTMENT OF DEFENCENine area health units28 health centres29 sickbaysThree base hospitalsSix oral health clinics39 military medical clinicsThree community centresFive occupational healthand safety centresOne presidential medicalteamA multidisciplinary militaryhealth service for theSANDF and other patientsas authorised100% compliance withreadiness states <strong>of</strong> militaryhospitals at Pretoria,Cape Town andBloemfontein as stipulatedby the Surgeon GeneralAll capabilities were provided as planned.The Area Military Health Formation succeededin providing a multidisciplinary healthservice to its clients through the Formation'ssubstructures as listed above. Severe shortages<strong>of</strong> health care <strong>of</strong>ficials and ambulancesnegatively affected service delivery. A loweroutsourced rate was achieved than was initiallyexpected, as only 76 667 consultationswere outsourced. A total <strong>of</strong> 131 377 patientswere consulted during 515 498 consultations.2 058 operational emergency care practitionerswere deployed on 2 550 requests. TheFormation provided health care practitionersfor deployments, although it was unable toprovide sufficient medical <strong>of</strong>ficers for externaldeployments. A renewed drive to recruithealth care practitioners was launched.The presidential medical team function wastransferred to the Tertiary Military HealthFormation. The Team met all set requirementsin spite <strong>of</strong> an insufficient number <strong>of</strong>personnel and a structure not aligned withthe demands. The new structure will shortlybe approved. Equipment and vehicles havebeen purchased in alignment with the newstructure.The three military hospitals met almost allthe set requirements in providing a comprehensivehealth service to its patients. Theshortage <strong>of</strong> health care practitioners andnon-availability <strong>of</strong> specific equipment at hospitalsnegatively affected achievement. Atotal <strong>of</strong> 1 209 patients were admitted to nonmilitaryfacilities. A 91% serviceability <strong>of</strong>equipment was achieved through the acquisition<strong>of</strong> new equipment. The average number<strong>of</strong> items per prescription was 3,2 as a result<strong>of</strong> the use <strong>of</strong> the standardised military medicinecode list, new generation broad-spectrumdrugs and peer assessment <strong>of</strong> chronicmedicine prescriptions. 1 Military Hospitalprovided a Level 4 facility as required by theUN.
Table 7.1: Military Health Service Programme Outputs for the FY<strong>2006</strong>/<strong>07</strong> (Continued)Output Performance Measure TargetAchievementAn aviation healthcapability and servicefor the SANDF conductingmedicalassessments, hyperbarictreatment, G-tolerancetraining for aviators,aviation medicalfitness verificationservice for the SA AirForce and SouthAfrican Civil AviationAuthority (SACAA)Psychological assessmentsand researchand developmentcapabilityDegree <strong>of</strong> compliancewith required number <strong>of</strong>aviation medical confirmationsDegree <strong>of</strong> compliancewith availability <strong>of</strong> airevacuation teams22 000 aviation medicalconfirmations for SouthAfrican Civil AviationAuthority24-hour availability <strong>of</strong> airevacuation teamsA total <strong>of</strong> 10 120 (46%) <strong>of</strong> the planned 22000 medical confirmations were performedas members did not make appointments. Allthe members who made appointments wereconsulted.Air evacuation teams were available on a 24hour basis.A maritime healthcapability and servicefor the SANDF conductinghyperbarictreatment, maritimemedical assessmentsand diving medical fitnessverification servicefor the SA NavyA veterinary healthcapability for theSANDF and SAPS asrequiredProject satisfactionaccording to SAMHSorderDegree <strong>of</strong> conformanceto Code <strong>of</strong> GoodResearch Practice andEthical Conduct.Timely delivery <strong>of</strong> contractas per specificationDegree <strong>of</strong> availability <strong>of</strong>a medical <strong>of</strong>ficer atNavy decompressionfacilityDegree <strong>of</strong> compliancewith required number <strong>of</strong>health assessmentsDegree <strong>of</strong> performanceas per service agreements/service levelagreementsOne military psychologicalinstitute.100% compliance withresearch requirementissued by SurgeonGeneral and clients24 hour availability <strong>of</strong>medical <strong>of</strong>ficer at Navydecompression facility600 diving and submarinemedicals11 animal clinicsTwo veterinary hospitalsCompliance with agreementThe Military Psychological Institute achievedbetween 87% and 80% compliance withresearch requirements due to a shortage <strong>of</strong>health care practitioners. Members are usedfor force support activities. A total <strong>of</strong> 78organisational change facilitations were executedfor the DOD, but ad hoc requestscould not be accommodated. 80% <strong>of</strong> testand measuring instruments were found applicableto DOD.A medical <strong>of</strong>ficer was available on a 24-hourbasis.Only a total <strong>of</strong> 100 diving and submarinemedicals were performed owing to a shortage<strong>of</strong> specialist health care pr<strong>of</strong>essionals.The capabilities were provided. The facilitiesand indicated clinics were down managed totwo remaining clinics after the closure <strong>of</strong> 12SAI and equine capability <strong>of</strong> the SANDF.The remaining clinics and hospital inPotchefstroom provide the necessary capabilitiesfor the SANDF canine capability.The veterinary health capability met its serviceagreements with the SANDF and SAPSthrough the above substructures. A 100%hospital service was rendered. The appointment<strong>of</strong> a veterinary surgeon resulted in atotal <strong>of</strong> 30 consultations/services rendered todeployed SANDF forces. There was no militaryveterinary service at outlying units and27 canine patients were referred to specialistand non-military facilities. A total <strong>of</strong> 131members were trained as veterinary orderlies,veterinary assistants, dog handlers anddetection dog handlers. The SAPS requiredsupport in 458 cases.Subprogramme Product Support CapabilityPharmaceutical andsundries warehousingcapabilityMobilisation andunique stock warehousingDegree <strong>of</strong> readinessand availability <strong>of</strong>unique stockOne military health depotThe target was fully achieved. Unique stockwas available as required. A total <strong>of</strong> 5 523receipt vouchers to the amount <strong>of</strong> R106 389196 were received and 51 555 issue vouchersto the amount <strong>of</strong> R92 812 <strong>07</strong>4 wereissued.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 95
Table 7.1: Military Health Service Programme Outputs for the FY<strong>2006</strong>/<strong>07</strong> (Continued)Output Performance Measure TargetAchievementSAMHS uniqueproducts, materialsand services procurementcapabilityand electromedicalequipment assetmanagementserviceDegree <strong>of</strong> availability <strong>of</strong>depot items.Degree <strong>of</strong> compliancewith statutory medicalequipment servicerequirementsOne military health procurementunit100% compliance withstatutory medicalequipment servicerequirements and assetmanagementOf the planned target <strong>of</strong> 80% availability <strong>of</strong>depot items 70,5% was achieved. The timeliness<strong>of</strong> order placement within five workingdays was fully achieved. 78% compliance withstatutory medical equipment service requirementsand assets management was achieved.Not all biannual verifications took place asplanned. As soon as asset management at theTertiary Military Health Formation is finalised,the task will be resumed at the otherFormations. The Area Military HealthFormation and Mobile Military Health Formationwere visited, which resulted in the integrity <strong>of</strong>the system being achieved.Subprogramme Base Support CapabilityA general base supportcapability foridentified defenceprogrammesDegree <strong>of</strong> clientsatisfactionDegree <strong>of</strong> compliancewith performance standardsas contained inservice agreements withclientsOne general supportbase100% client satisfaction100% conformancewith all DOD policyguidelines and agreementswith respect tobase supportThe SAMHS Support Base Thaba Tshwaneachieved most <strong>of</strong> its objectives in rendering ageneral support function to its clients in spite <strong>of</strong>a shortage <strong>of</strong> personnel. Reserves were calledup to assist while recruitment was being expedited.The client satisfaction could not be scientificallymeasured as the measurement tool is still to bedeveloped.The target was 64% achieved owing to shortage<strong>of</strong> personnel. Training and experience levels <strong>of</strong>personnel are low owing to a high turnover. Adedicated technician has been appointed toaddress the low serviceability <strong>of</strong> the vehicles.Subprogramme Military Health Training CapabilityMilitary Health Supportchapter 7programme 596Trained SAMHSpersonnel in specialistareasDegree <strong>of</strong> compliancewith the SAMHS trainingplanDEPARTMENT OF DEFENCE56 learning opportunities6 360 learnersMilitary Health Training. Of the planned 250courses 60 were cancelled owing to late acceptance,as well as shortages in facilitators. A total<strong>of</strong> 2 989 <strong>of</strong> the planned 4 047 learners weresuccessful.Physical Training, Sport and RecreationTraining. More learners qualified than theplanned 290. A total <strong>of</strong> 463 learners were successfulas a result <strong>of</strong> 10 additional water orientationcourses that were presented by members<strong>of</strong> external units trained by the Joint PhysicalTraining, Sport and Recreation Centre.Accredited Nursing Training. A total <strong>of</strong> 237learners <strong>of</strong> the planned 280 diploma students(Year 1 to 4) qualified. 40 learners completedtheir diploma in December <strong>2006</strong> with a 100%pass rate. A mid-year intake <strong>of</strong> 65 learnerstook place during the second quarter. The deviations<strong>of</strong> numbers occur because <strong>of</strong> learnerstemporarily withdrawing from the course due topregnancy or failures.Pupil Enrolled Nursing. The training target <strong>of</strong>102 learners was fully met. A total <strong>of</strong> 20 membersinitially planned to only be trained only inyear 1 <strong>of</strong> the course for utilisation as WardOrderlies have completed their full training.
Table 7.1: Military Health Service Programme Outputs for the FY<strong>2006</strong>/<strong>07</strong> (Continued)Output Performance Measure Target AchievementSpecialised Nursing Diploma. A total <strong>of</strong>165 <strong>of</strong> the planned 210 learners qualified.One course was cancelled owing to a shortage<strong>of</strong> facilitators.Force Preparation Training. Of theplanned 530 learners 289 qualified at theCombat Training Centre. A total <strong>of</strong> two learningopportunities were cancelled owing to ashortage <strong>of</strong> qualified personnel.Military Training. A total <strong>of</strong> 2 974 learnerswere trained instead <strong>of</strong> the planned 1 945.The higher number <strong>of</strong> learners occurredbecause three MSDs to the planned twointakes had to be accommodated.PUBLIC PRIVATE PARTNERSHIPAGREEMENTSThe SAMHS registered a Public Private Partnership (PPP)in terms <strong>of</strong> Treasury Regulation 16 regarding 'Health carefacilities and hospital referral services in Durban andseven other selected areas'. The PPP is directed towardsidentifying suitable health facilities where the SAMHScan admit, at its discretion, patients to said facilities forsurgical procedures and/or as in-patients for consultationby SAMHS health care practitioners in terms <strong>of</strong> cost benefitagainst admission to a distant military hospital. IgnisConsulting was appointed as the transaction adviser and,with the feasibility study completed, Treasury Approval 1was granted in January 2005. The project is in its TreasuryApproval 2A phase, where requests for proposals andproposed PPP agreements will be considered.The final draft documentation for the SAMHS PPP wasreceived from the Transaction Adviser in March 20<strong>07</strong>.This includes the Request for Proposal and the draft contract.Anomalies detected in the Request for Proposal documentwill be corrected and finalised during April 20<strong>07</strong>.After finalisation, the documents will be submitted to theSecretary for <strong>Defence</strong> for signature and final submissionto the National Treasury for the approval <strong>of</strong> TreasuryAuthority 2. Thereafter the procurement process willcommence.MILITARY HEALTH SERVICEPROGRAMME: OUTPUTS OFSPECIFIC POLICY OPTIONSWHERE ADDITIONAL FUNDSWERE ALLOCATEDDetails <strong>of</strong> the Military Health Service Programme withregard to outputs <strong>of</strong> specific policy options where additionalfunds were allocated during the FY<strong>2006</strong>/<strong>07</strong> arereflected in Table 7.2.Table 7.2: Military Health Service <strong>Defence</strong>: Outputs <strong>of</strong> Specific Policy Options whereadditional funds were allocated during the FY<strong>2006</strong>/<strong>07</strong>Policy OptionAllocationPerformance Against Target(R'000) Target AchievementAnti-retroviral (ARV)roll-out26 000 The intent with the ARVroll-out funds was toestablish accredited sitesfor the roll-out programme.Accreditationrequires compliant facilities,equipment and personnelthat adhere toNational Health standardsSix sites have already been accredited. The challengeis attracting patients to enlist in the roll-out programme.Donor funded awareness campaigns are ongoing, butrestricted to uniformed members only. Once sufficientcommunity care workers have been enrolled, dependants<strong>of</strong> uniformed members in rural areas will beincluded. Present facilities are inadequate and need tobe converted. In some cases equipment was secured,but required structural changes to 1 and 2 MilitaryHospitals. This will be addressed in the next financialyear, as external role players are involved with infrastructuredevelopment. The Surgeon General madethe decision to acquire vehicles as a key enabler.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 97
Table 7.2: Military Health Service <strong>Defence</strong>: Outputs <strong>of</strong> Specific Policy Options whereadditional funds were allocated during the FY<strong>2006</strong>/<strong>07</strong> (Continued)Policy OptionAllocationPerformance Against Target(R'000) Target AchievementMilitary SkillsDevelopment(MSDS)Presidential HealthSupport7 30012 000Provision <strong>of</strong> health care for 3000 MSDS membersMedical and environmentalhealth support to mandatedprinciplesAcquisition <strong>of</strong> equipment andinfrastructure for Presidentialmedical supportMembers <strong>of</strong> the SAMHS multidisciplinary team,including nursing staff, social workers, pastoral servicesand other support services have vehicles to visitand follow up on HIV and AIDS patients.Health care for 3 000 MSDS members was provided.The National Treasury allocated additional funds tothe SA Army for MSDS members. A DOD decisionwas made to allocate a portion <strong>of</strong> 3,7% <strong>of</strong> thatamount to the SAMHS for the health care <strong>of</strong> thesemembers. This amount went into the operationalcosts <strong>of</strong> the SAMHS.Rm12,7 was spent. Additional funding was utilisedto provide the correct level <strong>of</strong> technology, equipmentand staff augmentation.SAMHS SPECIFIC EXERCISES CONDUCTED DURING THE FY<strong>2006</strong>/<strong>07</strong>Details <strong>of</strong> the SAMHS specific exercises conducted during the FY<strong>2006</strong>/<strong>07</strong> are reflected in Table 7.3.Table 7.3: SAMHS Specific Exercises conducted during the FY<strong>2006</strong>/<strong>07</strong>ExerciseAchievementMilitary Health SupportExercise LANCETMilitary health support to SA Army Exercise SEBOKAExercise WAYSIDEChemical Biological Radiation <strong>Defence</strong>The exercise was successfully executed over the period 30October to 17 November <strong>2006</strong> at the SA Army CombatTraining Centre. A mass casualty evacuation exercise wasincorporated and valuable lessons were identified.7 Medical Battalion Group Chemical Biological Wing executedthe exercise at the Ditholo Training Area over the period 21August to 1 September <strong>2006</strong>. The exercise was successfullydevoted to the testing and evaluation <strong>of</strong> equipment underdevelopment.PERFORMANCE AND SERVICE DELIVERY IMPROVEMENTDetails <strong>of</strong> the SAMHS performance and service delivery improvement are reflected in Table 7.4.chapter 7programme 598Table 7.4.ActivitiesPerformance and Service Delivery Improvement for the FY<strong>2006</strong>/<strong>07</strong>Planned ManagementInterventionAnticipatedBenefitHealth care Generic medicine Reduction in healthcare costDEPARTMENT OF DEFENCEStatusOngoingActualAchievementSA legislation is to dispense generically.SAMHS policy is to prescribe generically,except when clinically motivated by a specialist.37% <strong>of</strong> brand name pharmaceuticalsby the SAMHS are replaced withgenerics. SAMHS is prescribing mostlygeneric medication.
Table 7.4.Performance and Service Delivery Improvement for the FY<strong>2006</strong>/<strong>07</strong> (Continued)ActivitiesPlanned ManagementInterventionAnticipatedBenefitStatusActualAchievementWarehousingPrescriptionsTreatmentBiomedicalProvision <strong>of</strong>services inunder -servicedareasProject MEDSAVEArticle 38A nursesMedical orderlies andoperational emergencycare practitionersMedicine Code listsPre-packing <strong>of</strong> medicineCode listsGeneric medicineArticle 38A nursesMedical orderlies andoperational emergencycare practitionersBiomedical capabilityDiscounts on servicedelivery against prescribedbenefit scalesReduction inhealth care costReduction inhealth care costReduction inhealth care costOngoingOngoingOngoingA work session held in <strong>2006</strong>. Adjusted normsadded according to increased diversity <strong>of</strong> functions.Chronic medication was provided tomembers 50 km and further from military healthinstallations. If outsourced to private pharmacies,the cost is estimated to escalate by 50-75%.Prescriptions are restricted to 3 items perscript. Because <strong>of</strong> a shortage <strong>of</strong> pharmacists,33 Section 38A nurses are currently utilised fordispensing. Without this intervention outsourcingwould have had to be considered.First line medical support increased accessibilityto medical support in deployments. The supportwas provided in spite <strong>of</strong> shortages and alldemands were met.A planning Military Medicine Control List meetingtook place in April <strong>2006</strong>. Only medicationon the Military Medicine Control List is prescribedand dispensed. Buyouts are only donein exceptional cases. Negotiating with a pharmaceuticalcompany to sponsor printing <strong>of</strong>booklets.Pre-packing in the Military Health Base Depotis not a viable option, due to implications interms <strong>of</strong> financial cost, facility upgrades andhuman resources. In order to comply with thenew statutory pharmaceutical requirements, it isproposed that medicines be purchased inpatient-ready packs for all the SAMHS pharmacies.This is more cost-effective. Pre-packingcan only be done at registered pharmacies.The Code lists are strictly adhered to. Healthcare practitioners prescribe only medication onthe Military Medicine Control List.SA legislation is to dispense generically.SAMHS policy is to prescribe generically,except when clinically motivated by a specialist.Chronic medication restricted to seven itemsper script.Prescriptions are restricted to 3 items perscript. Owing to a shortage <strong>of</strong> pharmacists, 33Sec 38A nurses are currently utilised for dispensing.Without this intervention outsourcingwould have had to be considered.Consult patients during deployments accordingto scales as laid down in the doctrine.The cost-effectiveness <strong>of</strong> the biomedical abilityis under investigation.Negotiations took place with several sessiondoctors for discounts. Private health care sessiondoctors do anaesthesia for minor operations,saving 30% on cost. Only emergencycases are referred to specialist medical practitioners.Regional meetings with NationalProvincial Administration to improve and sustaininter-sectoral and collaborative relationships.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 99
Table 7.4.Performance and Service Delivery Improvement for the FY<strong>2006</strong>/<strong>07</strong> (Continued)ActivitiesPlanned ManagementInterventionAnticipatedBenefitStatusActualAchievementMilitary Health Supportchapter 7RemunerationstrategiesLeadershipprinciplesServicedeliveryContinuouslearning anddevelopmentDisciplineCommuted overtimeOral health schemeProject MEDSAVEBenefits for health pr<strong>of</strong>essionalsin rural areasScarce skills allowanceFull range Leadership,Command andManagement PrinciplestrainingBatho PeleEffect AnalysisContinuous pr<strong>of</strong>essionaldevelopment programmeTrainingBatho PeleReduction inhealthHigher productivityIncentive toremain in theSAMHS care costDemocraticorganisationClient satisfactionClient SatisfactionClient SatisfactionSavings throughbetter proceduresClient satisfactionOngoingOngoingOngoingOngoingOngoingWell controlled. Policy is strictly executed.Registers are being kept. Retention strategyfor scarce skills. Only benefit medical and dentalpractitioners. Uniformed workers need to becompensated for being in uniform. Grosssalaries equal to non-DOD public sector healthcare workers.Dentists: 49% participate; 10% receive incentive.Technicians: 98% participate; 60% receiveincentives.Military Health Support Formation's pharmacistsparticipate, but not all pharmacists benefitfrom incentive.Rural allowances have made employment inrural areas a bit more lucrative.Scarce skills allowance is on par with<strong>Department</strong> <strong>of</strong> Health incentives. Strategy toretain scarce skills <strong>of</strong> Health care practitionershad positive effect. Several members in commonposts want to return to pr<strong>of</strong>essional poststo qualify for scarce skills. Impact on commonpost environment will be huge. Allowances fornursing personnel must enjoy urgent attention.Modules are included in all military courses.Client satisfaction surveys took place. TheBatho Pele principles are applied in all forcestructure elements. Many initiatives wereimplemented to improve service delivery. Ofnote is the following: Services are renderedduring lunchtime to meet client demands andafter-hours call systems were enhanced. AWellness Clinic was instituted in Durban.Dissemination <strong>of</strong> information and client/stakeholdersmeetings to discuss service deliveryincreased. Nursing personnel assist with afterhourservice at the General Outpatients<strong>Department</strong>, 1 Military Hospital.Intranet and Internet communication with clientele.Pr<strong>of</strong>essional development opportunities arebeing utilised at own cost. The SAMHS MilitaryHealth Training Formation is facilitating theprocess.In-service training, daily unit parade, monthlyformation parade and 3-weekly physical trainingparade have been instituted.See Service Delivery above.programme 5100DEPARTMENT OF DEFENCE
Table 7.4.Performance and Service Delivery Improvement for the FY<strong>2006</strong>/<strong>07</strong> (Continued)ActivitiesPlanned ManagementInterventionAnticipatedBenefitStatusActualAchievementHumanresourcesmanagementInspector General'sauditEffect analysisHuman ResourcetrainingClient satisfactionOngoingThe SAMHS Inspectorate grouped related riskstogether under appropriate audit topics, allowingthe Inspectorate to audit 136 risks coveringthe risks indicated in the Three Year RollingInternal Audit Strategy <strong>of</strong> the DOD, as well asdepicted in the SAMHS Three Year RollingInternal Audit Strategy at scheduled SAMHSforce structure elements. The full spectrum <strong>of</strong>audits was executed.Military Health Support Formation, MilitaryHealth Base Depot, won the Excellence ModelTrophy in <strong>2006</strong>.In-service training, daily unit parades, monthlyformation parade and 3-weekly physical trainingparades have been instituted at the MilitaryHealth Support Formation.OCCUPATIONAL HEALTH ANDSAFETYThe Surgeon General manages the Occupational Healthand Safety (OHS) function for the DOD on behalf <strong>of</strong> theSecretary for <strong>Defence</strong>. Great strides were made with themanagement, as well as the implementation <strong>of</strong> OHS in theDOD.Good cooperation has been established with the National<strong>Department</strong> <strong>of</strong> Public Works and the reinstatement <strong>of</strong>DOD OHS inspectors has been agreed upon. An OHSmonitoring system according to the OHSAS 18001 monitoringsystem was implemented and 12 units were successfullymonitored during the year. Corrective action isup to those responsible. OHS training has been revisitedand will be further enhanced by the new course programmes.All OHS practitioners involved have conducteda comprehensive facilities survey and this is a reliableindicator <strong>of</strong> the condition <strong>of</strong> DOD facilities with referenceto health and safety. The SA Air Force has established aSafety Health Environment Review Board (SHERB) toreview all Safety, Health, Environment, Risks and Quality(SHERQ) and technical boards <strong>of</strong> inquiry.A major challenge is the neutral attitude <strong>of</strong> some commandersto OHS that has resulted in non-adherence toOHS legislative matters. Further shortcomings are thelack <strong>of</strong> OHS posts on several structures, as well as the lack<strong>of</strong> qualified personnel. The private sector values the experienceand qualifications <strong>of</strong> OHS practitioners. Policiesneed to be completed, but the lack <strong>of</strong> staff slows down theprocess.In spite <strong>of</strong> the shortcomings the members involved inOHS are committed and involved in promoting the healthand safety <strong>of</strong> all the members <strong>of</strong> the DOD.POLICY DEVELOPMENTSA total <strong>of</strong> 10 SAMHS policies are in the process <strong>of</strong> development.Policy Developments and Legislative Changes. InMarch 20<strong>07</strong> the Deputy President <strong>of</strong> South Africalaunched the 'HIV and AIDS and Sexually TransmittedInfections (STI) Strategic Plan for South Africa 20<strong>07</strong>-2011'.The DOD Strategic Plan will be adapted accordingly.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 101
programme 5chapter 7Military Health Support102DEPARTMENT OF DEFENCE
Chapter EightPROGRAMME 6 -DEFENCE INTELLIGENCEa nationalpartnershipto build abetter lifefor allDEPARTMENT:DEFENCEOVERVIEWThe FY<strong>2006</strong>/<strong>07</strong> will go down in thehistory <strong>of</strong> <strong>Defence</strong> Intelligence as awatershed year marking the beginning<strong>of</strong> a new era. <strong>Defence</strong>Intelligence made great strides inthe period 1999-2005 in placing theDivision on solid ground as thepremier intelligence service inSouth Africa. The Division was theonly intelligence service that reportedprogress to the National Security Council.The Ministers <strong>of</strong> Foreign Affairs andIntelligence, as well as the NationalSecurity Council, commended <strong>Defence</strong>Intelligence for excellent intelligence supportand products. The Auditor Generalat the Joint Standing Committee onIntelligence (JSCI) pointed out <strong>Defence</strong>Intelligence as the only organisation thatwas able to give full cooperation to theAuditor General.<strong>Defence</strong> Intelligence has made greatstrides in making intelligence central tothe operations <strong>of</strong> the DOD and theSANDF in particular. Of note is theannual <strong>Defence</strong> Intelligence Estimate thatwas supplemented with a further comprehensiveproduct, namely the AfricanBattle Space Estimate, which couldbecome a useful planning tool on boththe strategic and operational levels.The technical capacity is the best that ithas ever been. Equipment that wasacquired proved to be invaluable, especiallyin the collection <strong>of</strong> information andimproved training efforts. <strong>Defence</strong>Intelligence was among the first in theDOD to have its college, the SouthAfrican <strong>Defence</strong> Intelligence College(SADIC), accredited as a service providerby the South African QualificationsAuthority (SAQA). <strong>Defence</strong> Intelligencestrengthened its working relations withthe SAPS with the agreement that itsmembers would attend identified SAPScourses.On the international front, <strong>Defence</strong>Intelligence expanded its influence.Major countries entered into discussionwith <strong>Defence</strong> Intelligence. Franceawarded the Order <strong>of</strong> Merit (the highestorder bestowed on military personnel) tothe Chief <strong>of</strong> <strong>Defence</strong> Intelligence inrecognition <strong>of</strong> contributions made toFrench <strong>Defence</strong> Intelligence.<strong>Defence</strong> Intelligence accepted the GoldenKey Award <strong>2006</strong> awarded to the DOD forBest Practice in Openness andResponsiveness by a national publicinstitution, given by the Human RightsCommission and the Open DemocracyAdvice Centre. This gives recognition(even if indirectly) to the members whowork on the Promotion <strong>of</strong> Access toInformation Act activities.In January 20<strong>07</strong>, 11 Military SkillsDevelopment System (MSDS) members,ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong>103
who had exited the DOD at the end <strong>of</strong> December <strong>2006</strong>,were recruited for appointment at <strong>Defence</strong> Intelligence.These members will positively influence the <strong>Defence</strong>Intelligence rejuvenation process. In spite <strong>of</strong> recruitmentand staffing efforts during the year under review, themain challenge remains the recruiting and staffing <strong>of</strong> personnelwith the correct background and/or aptitude forconducting Intelligence at the operational and tactical levels.The risk <strong>of</strong> losing qualified personnel is a major concernas other State departments are recruiting <strong>Defence</strong>Intelligence members.<strong>Defence</strong> Intelligence, as the premier intelligence service inSouth Africa, did well to get the results that it achieved.This was despite the fact that it had a smaller budget orhuman resource pool than the other intelligence services.<strong>Defence</strong> Intelligence continued to facilitate the provision<strong>of</strong> client-driven defence intelligence products, evidentfrom the quantity and quality <strong>of</strong> products produced, toenable effective decision-making and strategic planningand support to operations. <strong>Defence</strong> Intelligence workedin close partnership with, and acted as nodal point for,national (eg NICOC) and departmental clients, inter aliathe Joint Operations Division, to align intelligence outputswith changing and diverse client needs.PURPOSEThe <strong>Defence</strong> Intelligence Programme provides a defenceintelligence and counter-defence intelligence capability.MEASURABLE OBJECTIVEDefend and protect South Africa by providing militaryintelligence and counter-intelligence products and servicesthat meet the requirements <strong>of</strong> the Government.OUTPUTSThe <strong>Defence</strong> Intelligence Programme provides defenceintelligence and counter-intelligence for operational securityin support <strong>of</strong> the <strong>Department</strong>. It also provides forpersonnel vetting (ie the security clearance <strong>of</strong> DOD personnel).Details <strong>of</strong> the <strong>Defence</strong> Intelligence Programme outputsare shown in Table 8.1.Table 8.1: Outputs <strong>of</strong> the <strong>Defence</strong> Intelligence Programme for the FY<strong>2006</strong>/<strong>07</strong>Output Performance Measure TargetAchievement<strong>Defence</strong> Intelligencechapter 8programme 6104Subprogramme Strategic DirectionProvide Intelligencepolicy and doctrinePolicy adviceThe degree to whichrequired <strong>Defence</strong>Intelligence products areavailableThe degree to which policyadvice is acceptedSubprogramme <strong>Defence</strong> Intelligence OperationsProvide Intelligenceand counter- intelligenceservice capabilitiesThe degree to whichclients are satisfied withintelligence products andservicesSubprogramme <strong>Defence</strong> Intelligence Support ServicesSupporting servicescomprise the following:a personnel utilisationservice;Degree <strong>of</strong> compliancewith applicable policies,regulations and instructionsDEPARTMENT OF DEFENCEIntelligence DOD DirectiveIntelligence Collection andProcessing DOD Instruction100% acceptance <strong>of</strong> policyadvice90% <strong>of</strong> products on the productionschedule are disseminatedtimeously100% <strong>of</strong> clients' intelligencerequirements are mettimeouslyNo incident where <strong>Defence</strong>Intelligence is in breach <strong>of</strong>any policy, regulation orinstruction regulating themanagements <strong>of</strong> a specificfunctional fieldThe finalisation <strong>of</strong> the DOD Directive,DOD Instruction and Joint <strong>Defence</strong>Publication on Security in the DOD wasdelayed owing to the revision <strong>of</strong> theMinimum Information Security Standardsand later the revision <strong>of</strong> the Protection <strong>of</strong>Information Act which is still in process.These national policies have a great influenceon the drafting <strong>of</strong> DOD security policies,especially the JDP. Four counterintelligencepolicies were promulgated.Advice <strong>Defence</strong> Intelligence on mattersrelating to intelligence is accepted when itis given.The number <strong>of</strong> <strong>Defence</strong> Intelligence productsthat were disseminated timeouslyexceeded the target set by <strong>Defence</strong>Intelligence.The Auditor General found some discrepanciesin the <strong>Defence</strong> Intelligence leaveregisters. The situation was rectifiedimmediately.
Table 8.1: Outputs <strong>of</strong> the <strong>Defence</strong> Intelligence Programme for the FY<strong>2006</strong>/<strong>07</strong> (Continued)Output Performance Measure TargetAchievementa personnel administrationserviceIntelligence trainingto identified clients;a logistical supportservice; andan information supportservice.A planning andorganisational developmentserviceA regimental serviceA legal administrationserviceA unit military securityserviceQuality <strong>of</strong> businessplansBudget controlStaffing levelsAsset controlAccreditation status <strong>of</strong>trainingNumber <strong>of</strong> memberstrainedThe DPBEC finds the quality<strong>of</strong> the overall business plan,as well as the different subplansas above averageLess than 0,5% underspendingin the total supportservice budget0% rollover <strong>of</strong> the budgetMinimum <strong>of</strong> 75% by the end<strong>of</strong> the FY<strong>2006</strong>/<strong>07</strong>0% asset losses due to noncompliancewith prescriptsby <strong>Defence</strong> Intelligencemembers80% <strong>of</strong> all training providedby <strong>Defence</strong> Intelligence isaccredited18 learning opportunities90 learnersThe DPBEC found the <strong>Defence</strong>Intelligence business plan and subplans tobe an improvement on previous years.There was an over-expenditure <strong>of</strong> the personnelbudget due to growth in personnelnumbers.A rollover <strong>of</strong> the budget occurred as thelogistical system could not handle the finalrequirements in time.DI has only been able to maintain anaverage staffing <strong>of</strong> approximately 65%over the past two years. The DOD hasidentified DI's staffing as a priority. DIMShas therefore been contracted to designa structure to enable DI to functionmaximally.There is no record <strong>of</strong> any asset lossesdue to non-compliance with prescripts by<strong>Defence</strong> Intelligence members.80% <strong>of</strong> all training at SADIC is accredited.The SA <strong>Defence</strong> Intelligence Collegereceived full accreditation from the Safetyand Security Sector Education andTraining Authority (SASSETA) inSeptember <strong>2006</strong>. The FY<strong>2006</strong>/<strong>07</strong> will beremembered for the finalisation and implementation<strong>of</strong> the programmes on NQFLevel 5 as the FY<strong>2006</strong>/<strong>07</strong> was the pilotyear for the roll-out <strong>of</strong> the programmes inanalysis, collection and counter- intelligence.During the period under review, atotal <strong>of</strong> 80 learners attended the functionalprogrammes. <strong>Defence</strong> Intelligence wasthe only service within the StatutoryIntelligence Community that was in a positionto present the registered intelligencerelatedUnit Standards. Project Charterswere signed with the SASSETA for thedevelopment <strong>of</strong> an analysis qualificationfor <strong>Defence</strong> Intelligence <strong>of</strong>ficers, as wellas for the development <strong>of</strong> a qualificationfor Military Intelligence Vetting Officers onthe National Qualifications Framework(NQF) Level 5. The development and rollout<strong>of</strong> these qualifications will furtherenhance the capacity <strong>of</strong> <strong>Defence</strong>Intelligence on service delivery, and furtherdevelopment will commence in theFY20<strong>07</strong>/08.Seventeen formal, functional intelligencecourses and skills programmes addressingthe analysis, collection and counterintelligencedomains were presented overthe reporting period. The annual target <strong>of</strong>18 learning opportunities was notachieved as a result <strong>of</strong> the rescheduling <strong>of</strong>courses into the FY20<strong>07</strong>/08.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 105
Table 8.1: Outputs <strong>of</strong> the <strong>Defence</strong> Intelligence Programme for the FY<strong>2006</strong>/<strong>07</strong> (Continued)Output Performance Measure TargetAchievementClient satisfaction<strong>Defence</strong> Intelligence membersrate the overall quality<strong>of</strong> the support service as atleast above averageThe quality <strong>of</strong> the support service hasimproved because <strong>of</strong> some in-housechanges (especially in the ServiceCentre), and <strong>Defence</strong> Intelligence membersperceive this as a step forward.PERFORMANCE AND SERVICE DELIVERY IMPROVEMENTDetails <strong>of</strong> performance and service delivery improvement are reflected in Table 8.2.Table 8.2.Performance and Service Delivery Improvement for the FY<strong>2006</strong>/<strong>07</strong> (Continued)ActivitiesPlanned ManagementInterventionAnticipatedBenefitStatusActualAchievementImprove preanalysisandfiltering capabilityto increaseefficiencyInputs at Technologyprojects for uniques<strong>of</strong>twarePrevent overloadat processorsOngoingS<strong>of</strong>tware was installed to do pre-analysisand filtering before information is sent to theprocessors. This s<strong>of</strong>tware is regularly updatedto ensure effectiveness and efficiency.<strong>Defence</strong> Intelligencechapter 8Research anddevelopment oncollectionhardware ands<strong>of</strong>twareImprove the use<strong>of</strong> geospatialinformation inthe DODPromulgate anIntelligence education,trainingand developmentstrategyand policyImprove strategiccollectioncapabilitiesImprove the provisioning<strong>of</strong>operational intelligenceRegular enforcedfeedback on currentstatus <strong>of</strong> developmentprogrammeIntegration <strong>of</strong> geospatialinformation systems inthe DODPrepare and promulgatean Intelligence education,training and developmentDODInstructionAcquisition and integration<strong>of</strong> systemsIntegrate structures forsupport <strong>of</strong> operationsCutting-edgeinformationImprove efficiency<strong>of</strong> decisionmaking at alllevelsCoherentapproach to intelligencetrainingCutting-edge earlywarning intelligenceImproved operationalintelligenceOngoingInitiatedInitiatedInitiatedInitiatedThe advancement <strong>of</strong> technology internationallynecessitates the regular improvement <strong>of</strong>computer hardware and s<strong>of</strong>tware. Ongoingresearch and development have ensuredthat <strong>Defence</strong> Intelligence stays abreast <strong>of</strong>the latest technology, ensuring that DI staysclose to the cutting edge regarding collectedinformation.The project was initiated with CMIS for thedevelopment <strong>of</strong> a DOD geospatial databasethat will serve as the basis for the integration<strong>of</strong> DOD geospatial systems.The initial ETD Strategy was updated toaddress ETD requirements as envisagedfrom 2015. The ETD Policy and Instructionswere formulated and promulgated. An annualrevision takes place in October. The SA<strong>Defence</strong> Intelligence College is fully accreditedas an ETD provider by the SASSETA,and the College has been in a position topresent fully accredited programmes sinceJuly 2005.Some <strong>of</strong> the acquisition processes havebeen put on hold, but others have beencompleted and are already proving theirworth.Planning is underway to structure aSubdivision that will only be responsible foroperational intelligence in support <strong>of</strong> operations.The current structure's personnel aredoing their utmost (with limited resources) tosupport operations in the meantime.programme 6106DEPARTMENT OF DEFENCE
POLICY DEVELOPMENTSNational security policies have a great influence on thedrafting <strong>of</strong> DOD security policies. The revision <strong>of</strong> theMinimum Information Security Standards (MISS) andlater the Protection <strong>of</strong> Information Act, 1982 (Act No 84 <strong>of</strong>1982), which is still in process, has delayed the finalisation<strong>of</strong> various policies on security in the DOD.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 1<strong>07</strong>
programme 7chapter 9Joint Support108DEPARTMENT OF DEFENCE
Chapter NinePROGRAMME 7 -JOINT SUPPORTa nationalpartnershipto build abetter lifefor allDEPARTMENT:DEFENCEOVERVIEWThe Minister <strong>of</strong> <strong>Defence</strong> approvedthe new integrated HumanResources Division structure on 24January 20<strong>07</strong>. <strong>Report</strong>ing on theJoint Support Programme is doneaccording to the DOD StrategicBusiness Plan for the FY<strong>2006</strong>/<strong>07</strong>, asno formal changes to the JointSupport Programme plan were registered.As reported in the FY2005/06, the JointSupport Office was converted into theOffice <strong>of</strong> the Chief <strong>of</strong> Human Resources.Human resource <strong>of</strong>fices provided strategicdirection to the following subprogrammes:● Human Resources Support(funded within theAdministration Programme);● Joint Training;● Service Corps; and● British Peace Support TrainingTeam (BPST) (Managed by JointTraining).The Chief <strong>of</strong> Corporate Staff exercisedcontrol over the provisioning <strong>of</strong> supportservices <strong>of</strong> the following subprogrammes:● Joint Logistic Services;● Command and ManagementInformation Services;●●Military Police; andProperty Management (fundedwithin the AdministrationProgramme).The three subprogrammes as indicatedbelow are managed as financial subprogrammes.The performance is reflectedin the financial statements:● Acquisition Services;● Assistance; and● <strong>Department</strong>al Support.PURPOSEThe Joint Support Programme providesjoint support capabilities and services tothe <strong>Department</strong>.MEASURABLEOBJECTIVESupport <strong>Department</strong>al activities throughthe preparation, maintenance and provision<strong>of</strong> joint logistical, technological andmilitary policing capabilities, servicesand facilities that meet the requirements<strong>of</strong> the Government.OUTPUTSThe Joint Support programme providescommon support capabilities, facilitiesand services to the <strong>Department</strong>. It establishes,provides training in, and maintainsthe following areas: joint logistics,information communication technology,ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong>109
Table 9.1: Joint Support Office Subprogramme Outputs for the FY<strong>2006</strong>/<strong>07</strong>SubprogrammeOutputPerformanceMeasureTargetAchievementStrategicDirectionStrategic directionwith regard to theJoint Support programmefor Chief<strong>of</strong> the SANDFThe degree to whichjoint support policies,strategies and plansare coordinatedFull coordination <strong>of</strong>support policies,strategies and plansStrategic direction was providedto the Human Resources function.Under the guidance <strong>of</strong> theChief <strong>of</strong> Human Resources, fullestablishment <strong>of</strong> the new divisionstarted in the FY<strong>2006</strong>/<strong>07</strong> will continuein the next financial year.Joint Supportchapter 9programme 7110military police, vocational training, joint training andacquisition services. It provides support to theArmaments Corporation <strong>of</strong> South Africa (Armscor), theReserve Force Council, the South African First AidLeague, St Johns Ambulance Brigade, the Medical Fundfor Military members retired before 1964, and the Safetyand Security Sector Education and Training Authority(SASSETA).SUBPROGRAMME JOINTSUPPORT OFFICEOVERVIEWThe inauguration ceremony <strong>of</strong> the Human ResourcesDivision took place on 26 January 20<strong>07</strong>. Prior to this date,the Human Resources Division with Lieutenant GeneralT.T. Matanzima as the Chief <strong>of</strong> Human Resources wasfunctioning in the former Joint Support Division mode.The centralisation <strong>of</strong> the Human Resources support functionwill result in a more effective, efficient and economicHuman Resources function in the DOD.Details <strong>of</strong> the Strategic Direction subprogramme outputsas executed by the Joint Support Office are shown in Table9.1.SUBPROGRAMME COMMANDAND MANAGEMENTINFORMATION SYSTEMSOVERVIEWWith minor exceptions, the Command and ManagementInformation Systems (CMIS) Division performed inaccordance with its plan and has achieved its core objectivesfor the reporting period. The year was not withoutchallenges, but the CMIS Division met these and was ableto perform well. Many successes were achieved duringthe year under review.These successes included the finalisation <strong>of</strong> the<strong>Department</strong>al Enterprise Information Systems (DEIS)Master Plan, which focuses on the renewal and maintenanceif the Information and Communication Systems(ICS) <strong>of</strong> the DOD. The National Treasury provided Rm50DEPARTMENT OF DEFENCEto initiate the implementation <strong>of</strong> this multi-year programme.Project DOMINO (new CMI force design andstructuring) is progressing well in accordance with the setmilestones. The envisaged implementation <strong>of</strong> theapproved Command and Management Information(CMI) force design and structure is 01 April 2008.Through further implementation <strong>of</strong> the TelephoneManagement System (TMS), the telephone call costexpenditure <strong>of</strong> the DOD was brought down by an amount<strong>of</strong> Rm6 compared to the previous financial year. Researchconducted on the access to information indicates thatinformation was provided in response to 4 064requests/records held by the DOD. This includesrequests submitted to the DOD ito the Promotion <strong>of</strong>Access to Information Act 2000 (Act No 2 <strong>of</strong> 2000).The CMIS Division was able to support all external missionsin accordance with force employment requirements.The Division also participated in force preparation eventson the continent by playing the key role in the interoperabilityactivities and exercises over the past financial year.A total <strong>of</strong> 12 multinational operations and three exerciseswere successfully supported during the financial year.Furthermore, the School <strong>of</strong> Signals presented HighFrequency (HF) radio training to 19 members from 10Southern African Development Community (SADC)countries. This initiative will contribute to the interoperability<strong>of</strong> the Command and Control systems within theRegion. The Field Post Office was upgraded to a levelwhere it now renders pr<strong>of</strong>essional postal services in support<strong>of</strong> external operations. The CMIS Division successfullypresented the Exercise AFRICAN ENDEAVOURduring July <strong>2006</strong>. A total <strong>of</strong> 21 countries, represented by atotal <strong>of</strong> 120 members took part in this event. The aim <strong>of</strong>the event was to test the interoperability standards <strong>of</strong> theInformation and Communication Systems (ICS). Theresults will be incorporated in the establishment <strong>of</strong> theSADCBRIG ICS interoperability capability. The CMISDivision provided CMI systems support to internal operationsspecifically to Operation INTEXO.The interaction with external role players such as Armscorproved to be fruitful as processes <strong>of</strong> upgrading mainequipment has progressed significantly to the extent thatworkable solutions are being implemented. The main
equipment is ageing and reached the end <strong>of</strong> its life cycle.However, projects RADIATE and BILLET will contributeto the upgrading <strong>of</strong> this equipment over the medium tolong term.A major challenge for the CMIS Division is the outflow <strong>of</strong>personnel from the CMIS Division resulting in a loss <strong>of</strong>expertise in the information communication systems environment.The level <strong>of</strong> functional knowledge with respectto functional DOD Information Systems is declining, andtherefore the DOD system managers are depending moreon contracted services (as provided by SITA) to providethe required knowledge and expertise to maintain theCMI services at the required levels. The Military SkillsDevelopment System (MSDS) is being implemented in theDivision to address this issue. However, the requiredskills and competencies will not be obtained in the shortto medium term. Vehicle serviceability, the availability <strong>of</strong>personnel and signals equipment and the lack <strong>of</strong> personalequipment currently hamper the readiness <strong>of</strong> the CMISDivision. These issues were made visible within theDOD, as the intervention to improve the situation isbeyond the control <strong>of</strong> the CMIS Division. The moratoriumon the destruction <strong>of</strong> records still prevents the management<strong>of</strong> a formal appraisal and systematic disposalprogramme for records in the DOD. Excessive resourcesare being spent on the administration and storage <strong>of</strong>approximately 2,8 linear kilometre ephemeral records, theintervention being undertaken/planned is a collectiverequest by all the security-related departments to Cabinetvia the Security Cluster for the lifting <strong>of</strong> the moratorium.The National Archivist (<strong>Department</strong> <strong>of</strong> Arts and Culture)is managing the submission to Cabinet.MEASURABLE OBJECTIVECommand and Management Information Systems (CMIS)Division provides a command and management informationsystems and related services to the <strong>Department</strong>.OUTPUT DETAILDetails <strong>of</strong> the Command and Management InformationService Programme output are reflected in Table 9.2.Table 9.2: Command and Management Information Service Programme Outputs for theFY<strong>2006</strong>/<strong>07</strong>OutputPerformanceMeasureTargetActual AchievementCommandManagement andInformation serviceto the DODAcquired integratedInformation andCommunicationTechnology (ICT)solutions andenablers for theDODInformation Warfare(IW) and CyberWarfare (CW)Capability for theDODThe degree towhich CMIS strategy,policy and plansare implementedThe degree towhich ICT solutionsare deliveredaccording to clientrequirementsThe degree towhich securitybreaches haveoccurredStrategy, policy andplans are implementedas specifiedSolution delivery within80% <strong>of</strong> the DOD ICTProject Portfolio99% secured networksby March 20<strong>07</strong>The target was 80% achieved. In collaboration withthe Office <strong>of</strong> the Government Information TechnologyOfficer (GITO) the CMIS Division is finalising currentand future Information and Communication System(ICS) related Policies within the governance <strong>of</strong> theRegulatory Framework (also included in ProjectDOMINO). This process is hampered by a lack <strong>of</strong>Information and Communication Systems (ICS) specialistsfor writing and reviewing <strong>of</strong> these policies.Reserve members are used for this task.Solution delivery was 90% achieved. Minor andmajor enhancements as well as new solutions withrespect to ICS as required by the various servicesand divisions were delivered.100% secured networks were ensured, as no securitybreaches were reported.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 111
Table 9.2: Command and Management Information Service Programme Outputs for theFY<strong>2006</strong>/<strong>07</strong> (Continued)OutputPerformanceMeasureTargetActual AchievementJoint Supportchapter 9Combat-ready JointCommand andControl capabilitiesfor the SANDFSupported the integratedICT and jointcommand and controlproduct systemcapability <strong>of</strong> theDOD<strong>Department</strong>alInformationSystems Security(ISS) capabilityCMIS education,training and developmentcapabilityThe degree towwhich combat-readycommand and controlcapabilitiescomply with thereadiness statesand force employmentrequirementsThe degree towhich the ICT systemssupport capabilityis able to supportand sustain theICT system <strong>of</strong> theDODThe degree towhich specificdepartmentalrequirements asstated in the serviceagreements areadhered toThe degree towhich the plannedtraining and syllabirequirements areachievedCombat readinessaccording to forceemployment requirements28 620 Reserveman-days98% availability <strong>of</strong>mainframe service95% availability <strong>of</strong> theLocal Area Network(LAN)95% reliable mobileand static ICT supportservices by 31 March20<strong>07</strong>99% information securityequipment serviceabilityby 31 March 20<strong>07</strong>100% information systemsecurity on all networksby 31 March20<strong>07</strong>One signal school82 learning opportunities2 108 learnersThe set requirements were not fully met owing tonon-availability <strong>of</strong> personal and signal equipment,vehicle serviceability as well as the health status <strong>of</strong>members for external deployments. CMIS Divisionmembers were deployed in all external and internaldeployments. The Division successfully participatedin two multinational exercises, Exercise COMBINEDENDEAVOUR and Exercise AFRICA ENDEAVOUR.The target was revised to 28 620 Reserve man-days.A total <strong>of</strong> 43 133 man-days were used as a result <strong>of</strong>the increased requirement for Reserves to improvecommand and management information servicedelivery, especially in the Registry environment. TheField Post Office was upgraded to a level where itcould render pr<strong>of</strong>essional postal services in support<strong>of</strong> external operations.A 98.35% service availability to clients was achieved.The technical maintenance services on DOD applicationsystems and DOD Information Infrastructurehave been delivered to the extent that the informationsystems <strong>of</strong> the DOD were available to DODfunctional environments higher then the contracted98%.A 95,68% service availability to client was achieved.100% availability is not possible due to a combination<strong>of</strong> factors like circuit failure (TELKOM), externalpower faillure, server/router failure, data switch/hubfailure and data cable reticulation failure.These services are provided by the CMI ServiceCentres. The services could improve if the logisticsupply turn-around time improves in terms <strong>of</strong> acquisition<strong>of</strong> ICT equipment. The latter is beyond the control<strong>of</strong> the CMIS Divisions.Target revised to 95%. The target was achieved.The intention is to migrate part <strong>of</strong> the current informationsecurity systems capability to COMSEC Pty(Ltd). This initiative was not realised as Ministerialapproval is still awaited. SACSA is currently maintainingthe ISS equipment for all State departments.Target revised to a more realistic 95%. The targetwas achieved. The CMIS Division (SACSA) is currentlyresponsible for the information systems security<strong>of</strong> all state departments.The learning opportunities target was revised to 184.A total <strong>of</strong> 309 learning opportunities were presented.The School <strong>of</strong> Signals successfully presented HighFrequency (HF) training to 19l earners from 10SADC countries during the reporting period.The learner target was revised from to 2 108 to 2159. A total <strong>of</strong> 1 774 learners qualified.Senior Training. Four learning opportunities werecancelled owing to non- availability <strong>of</strong> members whowere deployed. A total <strong>of</strong> 733 learners qualified.programme 7112DEPARTMENT OF DEFENCE
Table 9.2: Command and Management Information Service Programme Outputs for theFY<strong>2006</strong>/<strong>07</strong> (Continued)OutputPerformanceMeasureTargetActual AchievementJunior Training. Six additional learning opportunitieswere presented as a result <strong>of</strong> an increaseddemand for junior courses, especially in the MSDSenvironment, as well driver and maintenance courses.The student target <strong>of</strong> 81% reflects theFY<strong>2006</strong>/<strong>07</strong> only. Courses that are currently running(still in progress) will be reflected against the new fiscalperiod.Technical Training. Five learning opportunitieswere cancelled owing to the lack <strong>of</strong> an inflow <strong>of</strong>MSDS members in the technical environment. A total<strong>of</strong> 127 learners qualified.Advanced Training. 223 (323%). The opportunityfor more members 336 (487%) to study at Stateexpense lead to more applications to study. It resultedin the exceeding <strong>of</strong> the set target during this andthe next reporting period. This initiative is in line withASGISA, JIPSA, and skills development initiatives <strong>of</strong>the Government.Youth Foundation Training. One learning opportunitywas presented for 20 learners.Technical Training Opportunities (Computer riggerand other). Three learning opportunities werepresented. The annual target <strong>of</strong> 30 learners wasexceeded when 48 learners qualified as a result <strong>of</strong>an increased demand for technical training in theCMIS Division.COMMAND AND MANAGEMENT INFORMATION SYSTEMSDIVISION SPECIFIC EXERCISES CONDUCTED DURING THEFY<strong>2006</strong>/<strong>07</strong>Details <strong>of</strong> Command and Management Information Systems Division specific exercises conducted during the FY<strong>2006</strong>/<strong>07</strong>are reflected in Table 9.3.Table 9.3: Command and Management Information Systems Division Specific ExercisesConducted during the FY<strong>2006</strong>/<strong>07</strong>ExerciseExercise Combined EndeavourMultinational interoperability exerciseExercise Africa EndeavourAfrican Interoperability exerciseAchievementThe multinational interoperability planning for future exercises took placeduring March, May, September, November <strong>2006</strong>, January and March20<strong>07</strong>. The planning exercises were executed in Georgia, Germany,Netherlands, Armenia, Slovakia, Ukraine and Germany. A total <strong>of</strong> 24 members<strong>of</strong> the Command and Management Information Systems (CMIS)Division were involved in the planning and execution <strong>of</strong> the exercise. Allobjectives were met.The CMIS Division conducted the African interoperability testing exercisein July <strong>2006</strong> at the Wonderboom Military Base. A total <strong>of</strong> 21 countries,represented by a total <strong>of</strong> 120 members took part in this event. SADCcountries participated. The results will be incorporated in the establishment<strong>of</strong> the SADCBRIG Information Communication Systems interoperabilitycapability.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 113
ADDITIONAL FUNDING OBTAINED FOR THE FY<strong>2006</strong>/<strong>07</strong>The National Treasury for the renewal and maintenance <strong>of</strong> the Information and Communication System (ICS) <strong>of</strong> theDOD provided additional funding to the amount <strong>of</strong> Rm50. Details are reflected in Table 9.4.Table 9.4: Additional Funding Obtained for the FY<strong>2006</strong>/<strong>07</strong>Policy ObjectiveAllocations(R'000)Output TargetsActualAchievementReason for DeviationTo renew andmaintain theInformation andCommunicationSystem (DEISMaster Plan rollout)<strong>of</strong> the DOD4 8723 8203 7502 55835 000Appointed HumanResources for the roll-out<strong>of</strong> the DEIS Master PlanInfrastructure for the<strong>Defence</strong> Signal NetworkInfrastructure for the rollout<strong>of</strong> the ActiveDirectory ProjectLAB Infrastructure equipmentfor the ActiveDirectory ProjectMigration <strong>of</strong> the SANDFout <strong>of</strong> the 2.2GHzFrequency BandAchievedAchievedAchievedAchievedNot achievedMore Human Resources were appointed toactivate the intervention program for the roll-out<strong>of</strong> the 'building blocks' <strong>of</strong> the DEIS Master Plan.Replacement <strong>of</strong> the old telegraph network witha computerised network.Initiative to ease the management <strong>of</strong> the 'activedirectory' as well as better visibility on the directory.A LAB has been established to test and simulatethe improvements and enhancements onthe 'active directory'.The original plan was to have the contract inplace by October <strong>2006</strong>. Due to the complexity<strong>of</strong> the tender specifications and tender process,the contract was allocated only on 16 March20<strong>07</strong>. The funds (Folio 02) have been rolledover to the FY20<strong>07</strong>/08. TELKOM SA wasselected as the preferred supplier for the 2,2Ghz Migration programme. Approval was alsogranted for the team to finalise the negotiationsthe final aspects <strong>of</strong> the DIP/NIP deals.PERFORMANCE AND SERVICE DELIVERY IMPROVEMENTDetails <strong>of</strong> the performance and service delivery improvements for the FY<strong>2006</strong>/<strong>07</strong> <strong>of</strong> the CMIS Division are reflected inTable 9.5.Joint Supportchapter 9Table 9:5: Performance and Service Delivery Improvement <strong>of</strong> the Command and ManagementInformation Systems for the FY<strong>2006</strong>/<strong>07</strong>ActivitiesIntegrated informationsystemPlanned ManagementInterventionEnterprise-wide informationsystem managementAnticipatedBenefitAligned DOD informationsystem to ensureintegrity <strong>of</strong> record andimmediate availability<strong>of</strong> information as wellas connectivitybetween all resourceand planning systems<strong>of</strong> the DODStatusIn processActualAchievementThis initiative is still ongoing due to thecomplexity <strong>of</strong> ensuring data integrity.Ongoing interaction is taking placebetween system owners like the Chiefs<strong>of</strong> Human Resources and Logistics aswell as the Chief Financial Officer inorder to reach the desired result.programme 7114DEPARTMENT OF DEFENCE
SUBPROGRAMME JOINTLOGISTIC SERVICESOVERVIEWDuring the FY<strong>2006</strong>/<strong>07</strong>, the DOD Logistic Agency succeededin achieving most <strong>of</strong> its objectives.The RSA Military Standard on the clearance <strong>of</strong> unexplodedordnance in accordance with the International MiningAction Standards was developed and approved, and nowprovides the DOD with the means to certify the safety <strong>of</strong>cleared ranges, reclaimed land and ammunition accidentsites. A total <strong>of</strong> 1 000 tons <strong>of</strong> dangerous ammunition wasdestroyed.The condition <strong>of</strong> facilities and infrastructure is consideredas poor and many no longer conform to the minimumrequirements <strong>of</strong> the Occupational Health and Safety Act.The only way to rectify the condition <strong>of</strong> facilities andinfrastructure was to secure funds and do the necessaryrepair and maintenance. Funds secured were howeverinsufficient and the quest for more funds to continue withthe Repair and Maintenance Programme (RAMP) willcontinue in future. A total <strong>of</strong> Rm49 71 <strong>of</strong> the availableRm50 was spent during the reporting period. Repairwork has started at 1 Military Hospital.The incorporation <strong>of</strong> environmental issues during operationsand deployments has progressed well and hasalready been included in the training <strong>of</strong> deployed members.Environmental staff have been involved in theComoros and Burundi to ensure that a minimal footprintis left after the closure <strong>of</strong> Operation FIBRE. The clean-upand rehabilitation <strong>of</strong> the environment at the Hells' GateTraining Area as part <strong>of</strong> the settlement <strong>of</strong> the restitutionclaim on this property were closely monitored.The DOD has committed itself to the process <strong>of</strong> landreform in general and to the restitution process in particular.The DOD has received 13 claims since the promulgation<strong>of</strong> the Restitution <strong>of</strong> land Rights Act, 1989 (Act No22 <strong>of</strong> 1994). Nine claims had been finalised before and nonew claims were received during the period underreview. Three <strong>of</strong> the claims are in an advanced stage <strong>of</strong>finalisation while one is still in an initial stage in the restitutionprocess. This partnership with the <strong>Department</strong> <strong>of</strong>Water Affairs and Operation Vuselela, Working for WaterProgramme, on the eradication <strong>of</strong> alien invaders throughthe utilisation <strong>of</strong> military veterans, has been extended tothe Free State Province.In line with the decision to transfer the Technical ServiceCorps to the SA Army, the DOD Technical ServiceTraining Centre is migrating to the SA Army. The <strong>of</strong>fice <strong>of</strong>the Auditor General audited the national environmentallegal compliance issues <strong>of</strong> the DOD. Non-conformanceswere addressed.Although many highlights were achieved during the pastyear, the performance <strong>of</strong> Logistics in the transformedDOD has been hampered by many factors. The DODOrganisational Work Group (DODW) decided on expandedmatériel governance, risk and compliance structureswithin the envisaged Chief <strong>of</strong> Matériel's structure, andexpanded strategic direction and functional authorityfunctions for the Chief <strong>of</strong> Logistics. The second phase <strong>of</strong>the improvement programme, inter alia the implications<strong>of</strong> the planned devolvement <strong>of</strong> logistic accountabilitiesstill have to be completed. DOD Logistic strategic directiondiverged owing to the duplication <strong>of</strong> strategic directionstructures within services and divisions, theSecretariat and the SANDF. Although it has emerged thatthe Chief <strong>of</strong> Logistics has a clear mandate to integratelogistics strategic direction throughout the DOD, this hasnot yet materialised. Although a new 10-year logisticstrategy has been developed, along with improved toplevelprocesses and structure, approval for implementationhas not yet been received. Critical changes to theDOD's strategic management process are still required toensure that clear direction is available for logistic-relatedplanning, and that resources are optimally allocated.The renewal and transformation <strong>of</strong> the Reserves in theDOD Logistic Agency were not accomplished. TheReserves in the DOD Log Agency are not fully trained,properly structured, adequately resourced or wellequipped. Since 1999, all formal recruitment and traininghave ceased. Supply Support training output did notmeet SANDF requirements due to shortcomings inaccreditation, competent facilitators/assessors, facilities,equipment (especially military vehicles), printing capabilitiesand staffing. This has a negative effect on SANDFmembers, as some <strong>of</strong> the learning programmes presentedare promotional prerequisites. However, a total <strong>of</strong> 2 665members, including 861 Military Skills DevelopmentSystem (MSDS) members were trained. Representivitystill remains a problem in the DOD Logistics Agency'ssenior and middle management. A skills audit is currentlyin process to improve career management in theFormation.There is severe underfunding <strong>of</strong> equipment maintenancein the DOD/SANDF, coupled to a huge backlog. Seriouslogistic personnel shortage in specialised fields hamperedservice delivery and led to members being deployed to<strong>of</strong>requently. The DOD expressed its concern regarding theservice received from the National <strong>Department</strong> <strong>of</strong> PublicWorks and indicated that it did not contribute to effectivenessand efficiency as promulgated by theGovernment. A meeting took place between the DeputyMinister <strong>of</strong> <strong>Defence</strong> and the Deputy Minister <strong>of</strong> PublicWorks to find solutions to the unsatisfactory situation. Allfunds allocated to the Capital Works Building Programmewere not spent during the reporting period due to challengesmainly not under control <strong>of</strong> the DOD. RegionalLand Claims Commissioners' priorities seemed to be inconflict with DOD priorities, resulting in the delay <strong>of</strong> landclaims. The existence <strong>of</strong> unexploded ordnance delayedANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 115
the finalisation <strong>of</strong> the claims at Hell's Gate military baseand Madimbo corridor. The Chief <strong>of</strong> Logistics hasrequested that all unspent funds be rolled over to the nextfinancial year. The lack <strong>of</strong> a single, optimised integratedDOD logistic management information system complicatescompliance with National Treasury expectations,such as accrual accounting and GRAP.The realignment <strong>of</strong> logistics and the establishment <strong>of</strong> acapacitated Chief <strong>of</strong> Logistics remains an essentialrequirement for effective, efficient, and economic servicedelivery. The DOD Logistic Agency's mandate, capacity,morale and command and control are seriously constrictedby the non-approval <strong>of</strong> the changes to philosophy,strategy, process and level 2 structure and the lack <strong>of</strong>progress in achieving an agreed way forward.MEASURABLE OBJECTIVEThe DOD Logistic Agency provides integrated logisticsupport to the DOD.OUTPUT DETAILDetails <strong>of</strong> the DOD Logistic Agency's output are reflectedin Table 9.6.Table 9.6: Outputs <strong>of</strong> the DOD Logistic Agency for the FY<strong>2006</strong>/<strong>07</strong>OutputPerformanceMeasureTargetAchievementJoint Supportchapter 9programme 7116Integrated logisticservices,logistic management,logisticresource management,facilitysupport services,engineeringsupport services,supply supportand logisticsupport inaccordance withclient and forceemploymentrequirementsThe degree towhich combatreadiness statusand force employmentrequirementshave beenmetThree ammunitiondepotsOne air supply unitOne mobilisationcentreOne technical serviceunitFive maintenance units(Reserve)Six field workshops(Reserve)One transit maintenanceunit (Reserve)DEPARTMENT OF DEFENCEThe target was 90% achieved. The deeper level depotstorage <strong>of</strong> ammunition was successfully executed.Ammunition was maintained according to priorities and levelsas instructed. The Ammunition warehouse is licensed.Munitions support to operations was successful. Rm10was obtained as additional funding for policy options.Rm12 was expended. The additional funds were allocatedfrom DOD Logistic Agency's budget to ensure ammunitionsafety. Five ranges qualified for disposal by open detonation.A total <strong>of</strong> 1 000 tons <strong>of</strong> dangerous ammunition wasdisposed. Ammunition logistic infrastructure at depotsimproved. Corrective action is being taken to improve thewarehousing facilities at Jan Kempdorp.The DOD Air Supply Unit achieved its objectives. Supportwas provided to courses and combined training exercisessuch as Exercise YOUNG EAGLE. Air supply was providedin support <strong>of</strong> SANDF operations. The facilities at theDOD Air Supply Unit are in a poor state.The target was achieved. The DOD Mobilisation Centre inBloemfontein provided the 4th line warehousing capabilityfor the DOD. Effective mobilisation and demobilisation <strong>of</strong>forces took place with each deployment <strong>of</strong> SANDF forces.However, the levels <strong>of</strong> the operational reserves to be maintainedare not acceptable. The realignment <strong>of</strong> the mandate,structure and functions <strong>of</strong> the Mobilisation Centre isunderway in order to reposition the unit to effectivelyrespond to new operational challenges.The management <strong>of</strong> universal equipment <strong>of</strong> the DODLogistic Agency (Pretoria) through maintenance, repair orreconditioning was 75% achieved due to challenges relatedto the structure, mandate and resourcing <strong>of</strong> the unit. Thepresence <strong>of</strong> sinkholes at the present location complicatesthe execution <strong>of</strong> repair tasks. Different stakeholders do notadhere to stipulations regarding standardisation resulting ina proliferation <strong>of</strong> products and related support.The target was not achieved. The renewal and transformation<strong>of</strong> the Reserve in the DOD Logistic Agency were notaccomplished. The Reserves in the DOD Log Agency arenot fully trained, properly structured, adequately resourcedor well equipped. Since 1999 all formal recruitment andtraining have ceased.
Table 9.6: Outputs <strong>of</strong> the DOD Logistic Agency for the FY<strong>2006</strong>/<strong>07</strong> (Continued)OutputPerformanceMeasureTargetAchievementDegree <strong>of</strong> serviceability<strong>of</strong> equipmentDegree to whichclient requirementsin terms <strong>of</strong>general base supportservices havebeen metThe degree towhich codificationtargets have beenmetThe degree towhich training targetshave beenmetThe degree towhich repair andmaintenance targetsare metThe degree towhich disposaland environmentalmanagements targetsare met90% serviceability <strong>of</strong>deployed equipmentThree joint supportbasesThree commodity/technical/Reservevehicle depotsNational CodificationBureau established by31 March 20<strong>07</strong>Three training schools:Technical, ammunitionand hospitality191 learning opportunities2 929 learnersRepair and maintenance<strong>of</strong> infrastructureas per client requirementsin the Repairand Maintenance Plan(RAMP)Management <strong>of</strong> disposaland environmentaccording to clientrequirementsOnly 60% serviceability <strong>of</strong> deployed equipment wasachieved due to the lack <strong>of</strong> support resources such asfunds to repair and maintain material handling equipment indepots. The turn-around time <strong>of</strong> repair to the s<strong>of</strong>t-skin militarycargo-carrying vehicles is not acceptable. The DODLogistic Agency is currently cooperating with SA Army toimprove availability and serviceability.The target was 80% achieved. The joint support bases(Joint Support Base Garrison and General Support BaseMinistry <strong>of</strong> <strong>Defence</strong>) are incapable <strong>of</strong> rendering an effective,efficient service to their clients. Due to the structuresbeing understaffed and underfunded. The closure andmigration <strong>of</strong> the joint support base concept within the DODLogistic Support Formation was completed. An implementationinstruction and a closing-down and migration planper joint support base was completed and handed over tothe Chief <strong>of</strong> Corporate Staff. The DOD Logistic Agency iscurrently in a planning process with the SA Army for thetransfer <strong>of</strong> JSB Garrison.The target was not achieved. The renewal and transformation<strong>of</strong> the Reserves in the DOD Logistic Agency were notaccomplished. The Reserves in the DOD Logistic Agencyare not fully trained, properly structured, adequatelyresourced or well equipped. Since 1999 all formal recruitmentand training have ceased.The target was 25% achieved. The Codification Bureau isestablished but not yet fully functioning. The backlog inheritedis currently being addressed. The rejuvenation <strong>of</strong> thecurrent structure is in process, and full capacity should bereached by December 2008.Originally, 191 learning programmes were planned. Withthe transfer <strong>of</strong> the Technical Training to the SA Army, a total<strong>of</strong> 187 learning opportunities were presented. Although98% <strong>of</strong> the target learning opportunities has beenachieved, a total <strong>of</strong> 3 043 learners was trained (104%), <strong>of</strong>which 761 were MSDS members. This increase was dueto the requirements from clients.The target was achieved as the DOD spent 99,42% <strong>of</strong> theavailable funds for infrastructure maintenance. Theamount <strong>of</strong> Rm50 was insufficient to address the maintenancebacklog, resulting in an increasing backlog. Therate <strong>of</strong> progress to eliminate the backlog is therefore notaccording to plan. The DOD once again obtained additionalfunding from the National Treasure for the FY20<strong>07</strong>/08.100% <strong>of</strong> the identified high-risk ammunition (1 000 tons)was destroyed. Three demolition ranges were qualified(Bergspits at 93 Ammunition Depot Jan Kempdorp,Roodewal bombing range at Polokwane and DODAmmunition Subdepot Mookgopong). Five <strong>of</strong> the sevenranges now qualified with Simon's Town and De Aar scheduledfor the FY20<strong>07</strong>/08. A mass ammunition disposal byopen detonation capability for ammunition <strong>of</strong> 60mm calibreand higher was established. Risk management actionswere taken at Jan Kempdorp to mitigate risk factors.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 117
PERFORMANCE AND SERVICE DELIVERY IMPROVEMENTDetails <strong>of</strong> the DOD Logistic Agency performance and service delivery improvement are reflected in Table 9.7.Table 9.7: Joint Logistic Services Performance and Service Delivery Improvement for theFY<strong>2006</strong>/<strong>07</strong>ActivitiesPlanned ManagementInterventionAnticipatedBenefitStatusAchievementIntegratedfacility serviceIntegratedsupply supportserviceImplementation <strong>of</strong> theDOD EnvironmentalManagement Systembased on the principles<strong>of</strong> ISO 14000Ensuring optimum efficiency<strong>of</strong> supply supportservice through theimplementation <strong>of</strong> a fuelmanagement systemCompliance by DODwith environmentallegislationExpected savingson DOD fuel billIn processImplementedJanuary <strong>2006</strong>The Environmental Review Forum TaskTeam terminated the trial phase <strong>of</strong> theimplementation <strong>of</strong> the DODEnvironmental Management System(EMS) in March 20<strong>07</strong>, as no significantprogress had taken place during the lasttwo years. This can be attributed to variousinfluencing factors such as the lack<strong>of</strong> skilled personnel and financialresources. In order to successfully integratean EMS into the defence corebusiness, the system must be streamlinedto suit the DOD. Hence, it wassuggested that the EMS be incorporatedinto the current policies, programmesand processes in the department. It isnot a legal imperative for the EMS to bebased on the ISO 14000 principles,therefore this matter and alternativeoption will be submitted for approvalduring the next year.In process. The RT46 contract hasbeen issued in collaboration withNational <strong>Department</strong> <strong>of</strong> Transport(Tender being requested).Joint Supportchapter 9programme 7118POLICY DEVELOPMENTSA total <strong>of</strong> 15 policies, military standards and instructionswere reviewed and/or promulgated during the yearunder review.SERVICES SCALED DOWN,SUSPENDED OR ABOLISHEDDURING THE FY<strong>2006</strong>/<strong>07</strong>The Technical Resource Management sub directorate wastransferred to the SA Army. The Technical ServiceTraining Centre is migrating from the DOD LogisticSupport Formation to the SA Army.SUBPROGRAMME HUMANRESOURCES SUPPORT SERVICESOVERVIEWDuring the FY<strong>2006</strong>/<strong>07</strong>, the Human Resource (HR)Support Centre continued to operate with the HR SupportOffice, HR Support Formation and 23 HR SupportDEPARTMENT OF DEFENCESatellites (HRSS) that migrated to the Services. The HRSupport Centre will close down with effect from 1 April20<strong>07</strong> and migrate to the HR Division as Chief DirectorateHR Management.The HR Support Centre achieved most <strong>of</strong> its targets. Inresponse to advertising in the print media a total <strong>of</strong> 78 783applications for career opportunities in the MSDS, YouthFoundation Training Programme and posts for PublicService Act Personnel in the DOD were received. TheDOD participated in several marketing and recruitmentdrives in the nine provinces for the MSDS and YouthFoundation Training Programmes.During the FY<strong>2006</strong>/<strong>07</strong>, SANDF ceremonial support wasprovided to numerous State, national, governmental anddepartmental events. A highlight was the 90thAnniversary Commemoration <strong>of</strong> the Battle <strong>of</strong> DelvilleWood and the wreath-laying ceremony at theCommonwealth War grave at Arques-la-Bataille, inFrance in July <strong>2006</strong>. The Deputy Minister <strong>of</strong> <strong>Defence</strong> wasthe main functionary at the ceremonies, which wereattended by over 500 people, including South African and
foreign diplomats and SANDF and French general/flag<strong>of</strong>ficers.The HR Support Centre addressed the matters thatreceived qualified reports in the Auditor General's <strong>Report</strong>for the FY2005/06. An instruction on corrective measureswas issued to Services and Divisions in September <strong>2006</strong>.The biggest challenge for the HR Support Centre is thefinalisation <strong>of</strong> the Non-Statutory Force (NSF) PensionProject. The planning for the FY<strong>2006</strong>/<strong>07</strong> was for the NSFPension Project to be finalised by 31 March 20<strong>07</strong>. Slow butsteady progress was made during the FY<strong>2006</strong>/<strong>07</strong> with thesuccessful processing <strong>of</strong> 1 469 applications. The delay inthe processing <strong>of</strong> pension payments could be attributedinter alia to the large number <strong>of</strong> former NSF memberswith untraceable addresses, the incompatibility <strong>of</strong> thecomputer databases <strong>of</strong> the DOD and GovernmentEmployee Pension Fund (GEPF) and incomplete applications,while the large volume <strong>of</strong> NSF pension applicationspossibly led to the GEPF not having sufficient humanresources to handle the number <strong>of</strong> applications. The projectwas extended for the duration <strong>of</strong> the MTEF(FY2008/09 - 10/11). The project will receive the highestpriority and support from the DOD Command Cadre andwill be the first priority in terms <strong>of</strong> the Chief DirectorateHR Management's budget.Notwithstanding the turbulence generated by the re-engineeringand reconstructuring <strong>of</strong> the HR function, theChief Directorate HR Management will continue to renderHR management function.MEASURABLE OBJECTIVEThe Human Resources Support Centre provides HumanResources support services and educated, trained anddeveloped individuals as per specifications to the DOD.OUTPUT DETAILDetails <strong>of</strong> the outputs <strong>of</strong> the Human Resources SupportCentre are reflected in Table 9.8.Table 9.8: Human Resources Support Centre Outputs for the FY<strong>2006</strong>/<strong>07</strong>OutputPerformanceMeasureTargetAchievementHumanResourcesacquisitionservice to theDODPersonnel separation,supportprocesses andredeploymentserviceDegree <strong>of</strong> compliancewith recruitmentand selectiontargets <strong>of</strong>clientsPercentage complianceto staffing<strong>of</strong> postsNumber <strong>of</strong>IMBIZOs attendedNumber <strong>of</strong>records updated30 selection boardsacross the countrySix advertisements inthe printed mediaNine marketing drivesat schools across thecountryParticipate in fivestakeholder meetingsin five provincesParticipate in nineSABC career expos90% <strong>of</strong> posts at AU/UNdeployments staffedAttendance at nineIMBIZOs in nineprovinces to addressmilitary veterans7 000 updated personnelrecords on the militaryveterans database30 selection boards were held in nine provinces to selectcandidates for posts in the DOD. These selection boardswere held to meet the staffing requirements for MSDS,Youth Foundation Training Programme, Regular and PSAPposts.Six recruitment advertisements were placed in the printedmedia for MSDS, Youth Foundation Training Programmeand Pilot/Navigator posts. A total <strong>of</strong> 19 ad hoc advertisementswere placed for vacant Level 9 to level 16 PSAPposts. A total <strong>of</strong> 78 783 applications were received forcareer opportunities in the DOD.Events to market the MSDS and Youth Foundation TrainingProgramme took place at tertiary institutions and secondaryschools within all nine provinces.Five meetings took place with the <strong>Department</strong> <strong>of</strong> Educationas well as various political youth groups in KwaZulu-Natal,Limpopo, Easter Cape, Western Cape and Gauteng promotingthe DOD as a future employer.Nine SABC career expos in support <strong>of</strong> the DOD “Employer<strong>of</strong> Choice” Awareness Campaign.75% <strong>of</strong> posts at the AU and UN deployments were staffed.In future Services and Divisions will staff junior posts, whilethe HR Support Centre will staff the headquarters element.Force structure elements being deployed must provide theirown HR component during operations.None scheduled or undertaken by the Deputy Minister <strong>of</strong><strong>Defence</strong>. The Imbizos with military veterans in variousprovinces are scheduled according to the demand <strong>of</strong> theDeputy Minister <strong>of</strong> <strong>Defence</strong>.More than 7 000 records were updated for the FY<strong>2006</strong>/<strong>07</strong>in spite <strong>of</strong> shortages <strong>of</strong> personnel.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 119
Table 9.8: Human Resources Support Centre Outputs for the FY<strong>2006</strong>/<strong>07</strong> (Continued)OutputPerformanceMeasureTargetAchievementJoint Supportchapter 9programme 7120Direction andstaff function forChief <strong>of</strong> theSANDF oncorporate levelin respect <strong>of</strong>utilisation <strong>of</strong> uniformedpersonnel(colonel andhigher)Personnel maintenanceserviceto the DODFunctional training<strong>of</strong> humanresource practitionersDegree <strong>of</strong>achievement <strong>of</strong>separation targetsDegree to whichsuccession planningseminarslead to effectiveplacement <strong>of</strong> personnelDegree <strong>of</strong> compliancewith clientrequirementsDegree <strong>of</strong>completion andexecution <strong>of</strong> theNon-statutoryforce (NSF)pension projectDegree <strong>of</strong>achievement <strong>of</strong>training targetsAdminister the exit <strong>of</strong>2 000 through theMobility ExitMechanism (MEM) andseparate 1 200 throughretirements and dischargesTwo succession planningseminars held100% compliance <strong>of</strong>client requirements interms <strong>of</strong> personnelmaintenanceNSF pension projectcompleted by 31 March20<strong>07</strong>Personnel ServicesSchool 400 learners onhuman resource-relatedcourses26 learners on adultbasic educationtrainingDEPARTMENT OF DEFENCEOnly 1 008 members exited from the DOD by means <strong>of</strong>MEM or Employer Initiated Severance Packages (EISP).Fewer members and employees accepted the MEM/EISPdue to the fact that the mechanisms are voluntary. A total<strong>of</strong> 5 393 members left the service <strong>of</strong> the DOD in theFY<strong>2006</strong>/<strong>07</strong>. The reasons being the SAPS transfer project;transfer <strong>of</strong> the Naval Dockyard to Armscor, natural attritionas well as resignations. There is a high demand in the privatesector for specialist and scarce skills inter alia SANDFpilots, engineers and health care pr<strong>of</strong>essionals.At the two succession-planning seminars uniformed members(colonel and higher) were effectively placed.82.5% compliance <strong>of</strong> client requirements was achieved. Ahuge backlog on the processing <strong>of</strong> the applications wascaused by an internal function shift, incorrect administration<strong>of</strong> furniture removal applications and new procedures beingimplemented. A roadshow is planned for the FY20<strong>07</strong>/08 toaddress the matter.The NSF Pension Project has not been completed asplanned and completion was extended until 31 March2008. Delays in the processing <strong>of</strong> pension payments canpossibly be attributed to the following factors. Due to thelarge volume <strong>of</strong> NSF pension applications it is possible thatthe Government Employee Pension Fund (GEPF) do nothave sufficient manpower to handle the large work volume.The DOD database (Persol) and the GEPF database(PEKWA) are not interactive and when transactions arecaptured on the Persol database, PEKWA is not automaticallyupdated. A total <strong>of</strong> 1 378 applications are incompleteand response to letters requesting these documents to besubmitted has been very slow. There is a large amount <strong>of</strong>former NSF members who cannot be traced and their NSFpension application forms are currently being held at theproject <strong>of</strong>fice. The <strong>Department</strong> <strong>of</strong> Home Affairs wasrequested to assist in tracing these members to obtain correctaddresses. The DOD initiated several actions towardscompletion <strong>of</strong> the project. The NSF Pension Project conducteda road show to distribute NSF pension quotationsfor serving members and in the process traced 62 beneficiarieswith the assistance <strong>of</strong> the military veterans associations.A meeting was held with representatives <strong>of</strong> the MKVeterans Association to seek assistance in tracing thosebeneficiaries who could not be traced.The Personnel Services School trained 1 062 learners.Additional funding resulted in an increase <strong>of</strong> learningopportunities presented. A total <strong>of</strong> 50 learning opportunitieswere presented at the School and three decentralised atthe HR Support Satellites.Only 12 <strong>of</strong> the planned 26 adult basic education learnerswere trained due to fewer applications received.
Table 9.8: Human Resources Support Centre Outputs for the FY<strong>2006</strong>/<strong>07</strong> (Continued)OutputPerformanceMeasureTargetAchievementComprehensivecareer developmentand planningsystem foremployees <strong>of</strong>the DODManagementand administration<strong>of</strong> LabourRelation functionsin theDODDegree <strong>of</strong> compliancewith clientrequirements interms <strong>of</strong> PublicService ActPersonnel (PSAP)staffingDegree <strong>of</strong>achievement <strong>of</strong>correctly structuredsalariesTimeous and satisfactorycompletion<strong>of</strong> labourrelatedmattersProcess 70 applicationsfor certificates,diplomas and degrees50 learners at 17 shortcourses provided byoutside serviceproviders100% staffing <strong>of</strong> PSAPaccording to clientrequirementsAll PSAP members'salaries are 100% correctlystructuredAdherence to BathoPele principlesManage misconductand grievances in theDODRepresent the DOD at48 conciliations and 16arbitrations sessionsOnly 21 applications were processed and approved. Fewerapplications were approved. Human resources servicesatellites closed down and members' applications werehandled by services and divisions.The target was not achieved. The Chief <strong>of</strong> HumanResources used the funds earmarked for short courses fora DOD Human Resources seminar. A total <strong>of</strong> 150 membersattended the seminar.100% staffing <strong>of</strong> required PSAP posts was achieved.Services/Divisions only budgeted for the filling <strong>of</strong> 450 postsin the FY<strong>2006</strong>/<strong>07</strong>.The target was 97% achieved. The auditing <strong>of</strong> 492 salariesis not yet finalised due to a shortage <strong>of</strong> personnel.55% adherence to Batho Pele principles was achieved dueto a lack <strong>of</strong> knowledge <strong>of</strong> functionaries and line management.Training interventions were made. Finalisation <strong>of</strong>the HR Division and staffing there<strong>of</strong> will improve servicedelivery.The management <strong>of</strong> misconduct was 100% achieved. Atotal <strong>of</strong> 29 cases were dealt with.The DOD was represented at only 10 <strong>of</strong> the planned 48conciliations, as the DOD does not control the conciliations.Hence the lower set down rate <strong>of</strong> arbitrations as 11 <strong>of</strong> theplanned 16 arbitration sessions took place.POLICY DEVELOPMENTSNew Policies and LegislationThe Policy on 'Management <strong>of</strong> Career Development andPersonnel Appointed in terms <strong>of</strong> the Public Service Actwithin the <strong>Department</strong> <strong>of</strong> <strong>Defence</strong>' was promulgated in<strong>2006</strong>.Policy Developments and LegislativeChangesAfter negotiations with the <strong>Department</strong> <strong>of</strong> Public ServiceAdministration, the separation processes within the EISPwere amended, ensuring that the separation processeswithin the EISP can be executed efficiently and effectively.SUBPROGRAMME JOINTTRAININGOVERVIEWThe Joint Training Formation managed to exceed itsplanned learner output without incurring any additionalcosts. This increased output contributed directly to theachievement <strong>of</strong> the DOD outcomes, as there are now moretrained personnel to conduct the business <strong>of</strong> the DOD in amore pr<strong>of</strong>essional manner. Additional numbers weretrained with extra internal funding, illustrating the flexibility<strong>of</strong> the leadership to provide the required service.The fledgling Warrant Officers Academy achieved fullaccreditation status with the South African QualificationsAuthority as a learning provider. This means that alltraining presented at the unit will be credit bearing training,which is transportable to the civilian sector when themember leaves the DOD.At the Military Academy, four staff members wereappointed as pr<strong>of</strong>essors at the University <strong>of</strong> Stellenbosch,thereby enhancing the image <strong>of</strong> the DOD in terms <strong>of</strong> academicand military status, since the Military Academy hasexposure to foreign learners who study at that institution.The DOD Youth Foundation Training Programme givesthe DOD the ability to create its own pool <strong>of</strong> suitable candidatesfor employment by uplifting disadvantaged learnerswho did not qualify for entry into the DOD up to alevel where they do qualify. The <strong>2006</strong> programme wassuccessfully completed with 240 learners completing theANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 121
programme. A total <strong>of</strong> 180 <strong>of</strong> these learners are employedin the DOD and the remainder have been released intothe open job market with a better chance <strong>of</strong> beingemployed. This ability to 'grow our own trees' not onlyassists the DOD in recruiting people <strong>of</strong> high capabilitiesbut also contributes to the upliftment <strong>of</strong> the youth <strong>of</strong>South Africa.The Chief <strong>of</strong> Joint Training presented Batho PeleCompulsory Frontline Training to 383 members andemployees <strong>of</strong> the DOD for the first time. This was not aplanned activity but was undertaken with much successas these learning interventions evoked visible enthusiasmfor the Batho Pele philosophy from the learners. It isenvisaged that this effort will improve service delivery inthe DOD.The Joint Training Formation maintained a high state <strong>of</strong>training readiness.The year <strong>2006</strong> posed a number <strong>of</strong> challenges. The staffinglevels <strong>of</strong> the Joint Training Formation remain a challenge.The low level <strong>of</strong> staffing at the units under command,especially the Military Academy, is due to the specialisedrequirement <strong>of</strong> the vacant posts. Although a concertedeffort has been made to staff these posts, the JointTraining Formation finds it very difficult to compete in thelabour market for persons with academic qualifications.The lack <strong>of</strong> capacity <strong>of</strong> the Public Works <strong>Department</strong> toconduct the required maintenance <strong>of</strong> facilities makesprogress even more challenging.The progress <strong>of</strong> Project BRILLIANT, the establishment <strong>of</strong>the South African National <strong>Defence</strong> Training Institute, isslow due to the complexity and magnitude <strong>of</strong> this project.It is envisaged that, once the project has come to fruition,the output <strong>of</strong> the Joint Training Formation will improve.The Joint Training Formation will sustain its output in theHuman Resource Division as a level 3 Training Commandin future.MEASURABLE OBJECTIVEThe Joint Training Formation provides the <strong>Department</strong>with pr<strong>of</strong>essional developmental and non-combat/missioncommon functional learning opportunities.OUTPUT DETAILDetails <strong>of</strong> the outputs <strong>of</strong> the Joint Training Formation areshown in Table 9.9.Table 9.9: Outputs <strong>of</strong> the Joint Training Formation for the FY<strong>2006</strong>/<strong>07</strong>OutputPerformanceMeasureTargetAchievementJoint Supportchapter 9programme 7122Military pr<strong>of</strong>essionallydevelopedmembersand employees<strong>of</strong> the DODThe degree to whichEducation, Training andDevelopment specificationsare reflected in programmecurricula320 formal joint militarypr<strong>of</strong>essional programmeswith 2206learnersDEPARTMENT OF DEFENCEThe original planning was for 165 formal programmeswith a total <strong>of</strong> 3833 learners. This figurewas amended when it was realised that differentmethods were use to calculate the number <strong>of</strong> programmesand the number <strong>of</strong> learners. An example<strong>of</strong> this would be that various short courses wereincorrectly combined into one course while the calculationsfor the learner numbers would count thenumber <strong>of</strong> learners per short course and not thecourse.The revised figures were accepted by the<strong>Department</strong>al Plan and Budget EvaluationCommittee in June <strong>2006</strong> namely 320 learning programmeswith a total <strong>of</strong> 2206 learners.A total <strong>of</strong> 304 learning programmes were presentedwith 1688 learners. One Military Observer programmecancelled due to lack <strong>of</strong> applications and15 Public Service Act Personnel training programmescancelled due to the lack <strong>of</strong> applicationsfor the programmes. The reduction in learner numberswas due to the cancellation in programmes.The non-attendance <strong>of</strong> programmes for PublicService Act Personnel remains problematical as thetraining <strong>of</strong> these members is voluntary and theycannot be forced to attend training programmes. Acommunication process was put in place anattempt to entice more Public Service actPersonnel to attend training programmes on a voluntarybasis.
Table 9.9: Outputs <strong>of</strong> the Joint Training Formation for the FY<strong>2006</strong>/<strong>07</strong> (Continued)OutputPerformanceMeasureTargetAchievementPercentage <strong>of</strong> successrate <strong>of</strong> Education Trainingand Development ProcessNumber <strong>of</strong> learners onYouth Foundation TrainingProgramme(YFTP) qualified to jointhe DOD80%250 learnersA total <strong>of</strong> 30 learners were found to be notcompetent at the end <strong>of</strong> various programmes.A total <strong>of</strong> six learners withdrew from the programmeand four learners were dismissed owing toserious disciplinary infringements. 240 learnerscompleted the <strong>2006</strong> programme. Of these learners,the DOD employed 180 and 60 were releasedinto the open job market.SUBPROGRAMME MILITARYPOLICEOVERVIEWThe Military Police Division can report that although fullperformance was not achieved, good progress is beingmade in those areas where shortcomings existed. In theFY<strong>2006</strong>/<strong>07</strong>, visible policing and the enforcement <strong>of</strong> preventativemeasures assisted <strong>of</strong>ficers commanding in assetprotection and safeguarding as well as crime prevention.A total amount <strong>of</strong> R888 380 was recovered.The Military Police Division fully complied with the forceemployment requirements for provost support. A total <strong>of</strong>56 military police <strong>of</strong>ficials were successfully deployed atany given time during the past financial year. The capacity<strong>of</strong> 13 Provost Company was reinforced with policingspecialists from regional structures.The ceremonial motorcycle fleet was expanded by theprocurement <strong>of</strong> an additional 16 ceremonial motorcyclesfor the Deputy President cavalcade during the opening <strong>of</strong>Parliament as well as for other ceremonial escort duties,thereby enhancing visible military police service delivery.The delivery <strong>of</strong> s<strong>of</strong>t-skin vehicles and radio communicationequipment contributed to improved service delivery.The capital equipment requirements <strong>of</strong> the Military PoliceDivision are not adequately addressed in the StrategicCapital Acquisition Master Plan (SCAMP), hence the poorstate <strong>of</strong> the capital equipment <strong>of</strong> the Division.The training <strong>of</strong> Military Police <strong>of</strong>ficials was improvedduring the year through agreements with local trafficorganisations for training on traffic control matters.Military Police investigators also attended investigators'courses presented by the SAPS, ensuring a close interdepartmentalrelationship in terms <strong>of</strong> common training thatcould be viewed as a public-public partnership. TheMilitary Police Division had already provided the necessarypresentations and courses regarding Section 45 <strong>of</strong> thePFMA to a total number <strong>of</strong> 61 <strong>of</strong>ficials <strong>of</strong> the MilitaryPolice Division during this financial year.The Military Police Division improved representivity atmiddle management level. On average the percentage <strong>of</strong>African colonels and lieutenant colonels increased from42,9% to 60%. A total <strong>of</strong> 38 Military Police <strong>of</strong>ficials weretransferred to the SAPS. The recruitment <strong>of</strong> MSDS membershas resulted in 56 members being recruited.The insufficient structuring <strong>of</strong> the Military PoliceDivision, a lack <strong>of</strong> staff and an increase in numbers <strong>of</strong>MSDS-intakes at certain units resulted in the Division notbeing able to provide sufficient and efficient militarypolicing services to the DOD. The impact <strong>of</strong> the nonstaffing<strong>of</strong> the Nodal Point on Anti-criminality was thatno decisive support could be provided to the DOD oncrime management.The lack <strong>of</strong> a consolidated database on crime informationalso impacted on the completeness <strong>of</strong> crime informationprovided by the Military Police Division. The MillitaryPolice Division was not able to fund the full component <strong>of</strong>its Reserve Unit due to a lack <strong>of</strong> funding and could thereforenot supplement its regulars with reserves in areaswas there were a higher demand for Military Police <strong>of</strong>ficials.The Military Police Division will face many challenges inthe years that lie ahead. However, given the challenges ithas overcome since 1994, there is no doubt that it will notbe found wanting in the future.MEASURABLE OBJECTIVEThe Military Police Division provides a military policingcapability to the department.OUTPUT DETAILDetails <strong>of</strong> the output <strong>of</strong> the Military Police Division areshown in Table 9.10.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 123
Table 9.10: Outputs <strong>of</strong> the Military Police Division for the FY<strong>2006</strong>/<strong>07</strong>OutputPerformanceMeasureTargetAchievementJoint Supportchapter 9programme 7124Military policingcapability to theDODThe degree towhich militarypolicing servicesare provided tothe DOD4 Military Policeregional headquarters22 Military Police AreaOffices21 Military PoliceDetachmentsTwo military correctionalfacilitiesRehabilitated membersto the DODOne Military PoliceSchool35 learning opportunities1 195 learnersDEPARTMENT OF DEFENCEFour Military Police regional headquarters were provided.On regional level police intelligence was hampered by ashortage <strong>of</strong> personnel and a general lack <strong>of</strong> an analysiscapability (structural shortcoming). Clients are still incorrectlyassessing the performance <strong>of</strong> the Military PoliceDivision with the successful sentencing by the LegalSatellite Office.The 43 Military Police structures geographically placedacross the RSA rendered policing services to DOD clients.Visible policing was increased and preventative measuresenforced, thereby assisting <strong>of</strong>ficers commanding with assetprotection and safeguarding as well as crime prevention.The increasing numbers <strong>of</strong> MSDS members resulted in apoor Military Police to military member ratio in certain geographicalareas, negatively influencing the providing <strong>of</strong> sufficientand effective policing services. The total casesreported to the Military Police Division increased by 252cases from a total <strong>of</strong> 2 935 cases reported during theFY2005/06 to 3 187 cases reported to during theFY<strong>2006</strong>/<strong>07</strong>. The Military Police Division, however, alsomanaged to increase the number <strong>of</strong> finalised cases with340 cases from 2 576 cases finalised in the FY2005/06 to2 916 cases finalised in the FY<strong>2006</strong>/<strong>07</strong>. Police investigationswere hampered by a shortage <strong>of</strong> personnel for largevolumes <strong>of</strong> dockets that were registered.The number <strong>of</strong> cases on hand increased by 3,7% due to alack <strong>of</strong> investigators. To improve the standard <strong>of</strong> investigations,Military Police investigators were trained by theSAPS. Military Police <strong>of</strong>ficials were also trained by localtraffic organisations on traffic control matters at minimumcosts for the Military Police Division. A total <strong>of</strong> 410 DODmembers were detained by the Military Police Division inthe detention cells <strong>of</strong> some <strong>of</strong> the Military Police Offices aswell as at the SAPS, because <strong>of</strong> a lack <strong>of</strong> a detention cellcapacity at a number <strong>of</strong> the Military Police structures.Continuous liaison with the Legal Satellite Offices andState Prosecutors at all levels ensured that Military Police<strong>of</strong>ficials contributed to water-tight cases resulting in speedingup the finalisation <strong>of</strong> cases by military and civiliancourts. The expansion <strong>of</strong> the s<strong>of</strong>t-skin vehicle fleet contributedto improved service delivery.The Military Correctional Facilities at Bloemfontein andWynberg achieved their objectives. A total <strong>of</strong> 90 memberswere detained during the past financial year.A total <strong>of</strong> 27 members could be regarded as rehabilitated.Admittance at the Military Correctional Facilities showed adecrease from 117 inmates in the FY2005/06 to 90 inmatesin the FY<strong>2006</strong>/<strong>07</strong>.The MP School presented 37 courses instead <strong>of</strong> theplanned 35 courses, but only a total <strong>of</strong> 1 006 learners weresuccessfully trained because <strong>of</strong> funding and structuralshortcomings, as well as a re-assessment <strong>of</strong> coursesrequired by Military Police members. The Military PoliceSchool also received provisional accreditation as a traininginstitution.
Table 9.10: Outputs <strong>of</strong> the Military Police Division for the FY<strong>2006</strong>/<strong>07</strong> (Continued)OutputPerformanceMeasureTargetAchievementStrategy onanti-criminalityThe degree towhich combatreadiness andforce employmentrequirements aremetThe degree towhich criminalityis managed withinthe DODOne regular provostcompany5% fewer incidents <strong>of</strong>criminality registered inthe DODPlanning and establishment<strong>of</strong> the nodal pointon anti-criminality completePolicy and systemsdeveloped with regardto crime and thereporting <strong>of</strong> crime13 Provost Company fully complied with the force employmentrequirements for provost support, and 56 memberswere successfully deployed at any given time during thepast financial year. However, structural shortcomings atthe operational capability <strong>of</strong> 13 Provost Company resultedin the utilisation <strong>of</strong> policing specialists from the MilitaryPolice Regions to reinforce the Company during deployment.The complexity <strong>of</strong> cases to be investigated duringdeployments was a major challenge.A centralised database on all crime management informationas well as a single point <strong>of</strong> entry (Nodal Point on Anticriminality)was not operable due to funding restrictions anda lack <strong>of</strong> staff. Therefore the Military Police Division couldnot determine the exact percentage <strong>of</strong> criminality being registeredin the DOD.The Minister <strong>of</strong> <strong>Defence</strong> approved the structure <strong>of</strong> theNodal Point on Anti-criminality in November <strong>2006</strong>. Thestructure will be staffed in the FY20<strong>07</strong>/08. The NodalPoint on Anti-criminality will be functional towards the end<strong>of</strong> the next financial year.The Crime Administration System (CAS) has been implementedto a large extent within the Military Police Divisionand is used to determine the extent <strong>of</strong> crime within theDOD. The Nodal Point on Anti-criminality will also addressthe reporting <strong>of</strong> crime.SUBPROGRAMME SERVICE CORPSOVERVIEWThe Service Corps succeeded in achieving most <strong>of</strong> itsobjectives. Some success was achieved in providingportable skills to its clients that may enhance theiremployability and entrepreneurial skills. Employmentassistance based on labour market intelligence resulted inclients securing jobs outside <strong>of</strong> the DOD.The eight regional Service Corps <strong>of</strong>fices engaged in thetraining <strong>of</strong> members who applied for the Mobility ExitMechanism (MEM) or who were transferred to the SAPS,military veterans as well as other serving members withinthe DOD. Of note are the relationships and agreementsbetween the Service Corps and the Premiers <strong>of</strong> theNorthern Cape, Mpumalanga and Limpopo provinces,State departments, both on local and provincial level,NGOs and the private sector towards ensuring job placementsfor Service Corps clients. The Service Corps providedtraining for a total <strong>of</strong> 1 622, including 1<strong>07</strong> learnersfrom Mozambique.Highlights <strong>of</strong> facilitation <strong>of</strong> military veterans' reskillingand placement are, inter alia, the training <strong>of</strong> more than 95military veterans as part <strong>of</strong> Operation VUSELELA, theworking for water programme, and the eradication <strong>of</strong>alien invaders through the utilisation <strong>of</strong> military veterans.Adult Basic Education and Training (ABET) trainingopportunities were secured for more than 261 veterans.Assistance was provided to establish military veteranassociations in four provinces. In the Eastern Cape, a total<strong>of</strong> 17 military veterans who were trained in brick makingare now subcontractors at Coega. In the Northern Cape,members act as informal tour guides on the 'Walking withAncestors' project. Through the involvement <strong>of</strong> the MEC<strong>of</strong> Safety and Security in the Northern Cape, a three-yearopportunity to place 50 trained members in the ProvincialTraffic <strong>Department</strong> per year was secured.During the FY<strong>2006</strong>/<strong>07</strong>, the Service Corps experiencedsome challenges. Service providers were not paid on timeas a result <strong>of</strong> slow internal processes. The verificationprocess <strong>of</strong> military veterans is progressing very slowly.Only a small number <strong>of</strong> MEM candidates registered withthe Service Corps for reskilling, resulting in the underutilisation<strong>of</strong> Service Corps facilities and services. The SAQAaccreditation <strong>of</strong> the Centre for Advanced Training is notyet finalised and the shortage <strong>of</strong> personnel has resulted ina lack <strong>of</strong> monitoring <strong>of</strong> training. The Service Corps struc-ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 125
ture needs to be revised to be able to accommodate theDOD Works Regiment, that is still to be established.In spite <strong>of</strong> the challenges and shortcomings, the ServiceCorps succeeded in managing the reskilling <strong>of</strong> all beneficiarieseligible for training as well as job placement. Toreach its objectives, the Service Corps engaged externalrole players and established relationships both internallyas well as with military veterans' organisations.MEASURABLE OBJECTIVEThe Service Corps provides a demilitarisation service toindividual members <strong>of</strong> the department.OUTPUT DETAILDetails <strong>of</strong> the output <strong>of</strong> the Service Corps are shown inTable 9.11.Table 9.11: Outputs <strong>of</strong> the Service Corps for the FY<strong>2006</strong>/<strong>07</strong>OutputPerformanceMeasureTargetAchievementJoint Supportchapter 9programme 7126ReskillingadviceReskillingcapabilityReskilling facilitationandemploymentassistancecapabilityThe degree towhich thereskilling <strong>of</strong> membersis effectivelyorganised andconducted.The degree towhich accreditedtraining is deliveredas per prescriptsand clientspecificationsThe degree towhich accreditedtraining isfacilitatedAdvice in terms <strong>of</strong>labour marketOne advanced traininginstitute250 learnersEight regional <strong>of</strong>ficesDEPARTMENT OF DEFENCEThe Service Corps was able to reach out to all eligiblemembers who opted for Service Corps assistance.The Centre for Advanced Training presented reskillingtraining for 225 <strong>of</strong> the planned 250 learners. The target <strong>of</strong>260 as stated in the Strategic Business plan is incorrect.Fewer learners were trained, as courses matching theclient pr<strong>of</strong>ile could not always be conducted owing to a lack<strong>of</strong> instructors and resources as well as incomplete informationregarding job market requirements. Insufficient monitoringand quality control are done because <strong>of</strong> a lack <strong>of</strong>personnel. The Centre is not yet accredited at SAQA.Service Corps Regional Office Bloemfontein. A total <strong>of</strong>96 learners were assisted. SASSETA liased with the Officein Bloemfontein about skills training for military veterans.261 veterans were assessed for ABET and the first 23 whopassed. Employment for military veterans was secured atthree security companies. A group <strong>of</strong> 40 drivers were identifiedfor placement at a bus company. Operation VUSE-LELA, Working for Water Programme, on the eradication <strong>of</strong>alien invaders through the utilisation <strong>of</strong> military veterans,has been extended to the Free State Province.Service Corps Regional Office Cape Town. A total <strong>of</strong>369 members were assisted through training and job placement.Working relationships were established with theProvincial <strong>Department</strong> <strong>of</strong> Labour and Knysna Municipalityfor training and employment opportunities. A total <strong>of</strong> 4 000military veterans were registered on the local database,awaiting verification. 39 veterans were trained and placedin jobs. Assistance was provided with the establishment <strong>of</strong>the non-statutory Military Veterans Association in theWestern Cape.Service Corps Regional Office Kimberley. A total <strong>of</strong> 76were assisted through training and job placement. 20 militaryveterans started their training for Operation VUSE-LELA. Successful relations were established with theKaroo Hoogland Municipality, resulting in veterans used asinformal tour guides on the 'Walking with Ancestors' projectin the Northern Cape. Liaison with the <strong>of</strong>fice <strong>of</strong> the MECfor Safety and Security resulted in a three-year agreementfor the placement <strong>of</strong> 50 veterans per year in the provincialtraffic department. Monthly meetings were initiated to coordinateactivities with regards to the MEM in the area <strong>of</strong> theArmy Support Base Northern Cape. Assistance was providedwith the establishment <strong>of</strong> the Non-statutory MilitaryVeterans Association in the Northern Cape.
Table 9.11: Outputs <strong>of</strong> the Service Corps for the FY<strong>2006</strong>/<strong>07</strong> (Continued)OutputPerformanceMeasureTargetAchievementService Corps Regional Office Durban. A total <strong>of</strong> 76candidates were assisted through training and job placement.Assistance was rendered with the establishment <strong>of</strong>the non-statutory Military Veteran's Organisation inUmzimkulu. 45 members were recruited for OperationVUSELELA.Service Corps Regional Polokwane. A total <strong>of</strong> 68 candidateswere assisted through training and job placement.Working relationships with local government institutions inLimpopo and Mpumalanga resulted in workgroups with thePremiers' <strong>of</strong>fices to ensure priority job and business opportunitiesfor Service Corps clients.Service Corps Regional Port Elizabeth. A total <strong>of</strong> 114members were assisted through training and job placement.Positive relations with the Provincial <strong>Department</strong> <strong>of</strong>Labour and local governments resulted in the start <strong>of</strong> abrick-making project by military veterans. 17 <strong>of</strong> these veteransare now subcontractors at Coega. A first group <strong>of</strong> 30military veterans started with training for Operation VUSE-LELA.Service Corps Regional Office Pretoria. A total <strong>of</strong> 630members were assisted through training and job placement.The <strong>of</strong>fice successfully facilitated training for MEMcandidates and members to be transferred to the SAPS.The <strong>of</strong>fice received employment requests with regard topossible employment <strong>of</strong> candidates trained.Ratio <strong>of</strong> gainfulemploymentachievedThe reskilling <strong>of</strong>SANDF members whoexit through the MEMand who opt forreskilling benefits65% placement <strong>of</strong>reskilled clients whorequested employmentassistanceA total <strong>of</strong> 968 members were approved and registered onthe database for reskilling through the Service Corps.These members, however, must report at the differentregional <strong>of</strong>fices. Only 130 members reported during thisfinancial year, because their respective services/formations/divisionsdid not properly inform the members whereto report for training. Processes were put in place toimprove this situation. The total <strong>of</strong> 968 is included in thetotals <strong>of</strong> the regions.All individuals who requested assistance with job placementwere successfully placed.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 127
PERFORMANCE AND SERVICE DELIVERY IMPROVEMENTThe performance and service delivery improvements <strong>of</strong> the Service Corps are shown in Table 9.12.Table 9.12: Performance and Service Delivery Improvement <strong>of</strong> the Service Corps for theFY<strong>2006</strong>/<strong>07</strong>ActivitiesPlanned ManagementInterventionAnticipatedBenefitStatusAchievementAccredited trainingfor membersdemilitarisingTo conductreskilling bymeans <strong>of</strong> organiccapabilityAccreditation andcapacitating <strong>of</strong> theCentre for AdvancedTrainingThe exploring and creation<strong>of</strong> cooperativeagreements by engagingstrategic partners toprovide instructorswhere required in returnfor utilising the facilitiesLearners are suitablyskilled and receiveportable skills ensuringgainful employmentReduced overheadcosts and sustainedservice delivery asrequiredActiveIn processThe Centre for Advanced Training is notyet a SAQA- accredited institution.Accreditation <strong>of</strong> the Centre is critical ifthe Service Corps is to conduct credibletraining. This will require full participation<strong>of</strong> the Chief Directorate Educationand Training personnel in that process.Currently DOD members are beingtrained at the Centre for AdvanceTraining. An instruction has been submittedto the SA Army for additional candidatesto be enrolled at the Centre.SUBPROGRAMME BRITISH PEACE SUPPORT TRAINING TEAMThe Memorandum <strong>of</strong> Understanding governing the British Peace Support Training Team was renewed on 22 May <strong>2006</strong>and provides for continuation <strong>of</strong> assistance by members <strong>of</strong> the United Kingdom (UK) military until 31 March 2009.Either party can cancel it provided that six months notice to do so is given.OUTPUT DETAILDetails <strong>of</strong> the British Peace Support Training Team output are shown in Table 9.13.Table 9.13: British Peace Support Training Team Output detail for the FY<strong>2006</strong>/<strong>07</strong>OutputPerformancePerformance Against TargetMeasure Target AchievementJoint Supportchapter 9Assistance tomission readinesstrainingDevelopment <strong>of</strong>Mission ReadyTraining CentreDevelopment <strong>of</strong> aPeace MissionTraining CentreDeploying forces subjected tomission based Commandpost exercise and field trainingexercise prior to deploymentsAdequate facilities exist forconducting mission-readytraining at the BloemfonteinMobilisation CentreSANDF has a fully developedPeace Mission TrainingCentre where all theoreticalpeace mission training takesplaceAll rotating forces subjectedto mission readytrainingConvert a large hangerinto two classroom facilitiescapable <strong>of</strong> accommodatinga battalionTo have a fully developedPeace MissionTraining Centre availablefor use by the end<strong>of</strong> 20<strong>07</strong>All rotating forces were subjected to missionready training at the MobilisationCentre in Bloemfontein and will continue asplanned.The facilities were completed.The fitting out commenced early in 20<strong>07</strong>.The Government <strong>of</strong> the UK has donatedsignificant funds for development <strong>of</strong> theCentre. They also made available aninstructor for providing assistance with thedevelopment <strong>of</strong> curricula.programme 7128DEPARTMENT OF DEFENCE
Table 9.13: British Peace Support Training Team Output detail for the FY<strong>2006</strong>/<strong>07</strong> (continued)OutputPerformancePerformance Against TargetMeasure Target AchievementDevelopment <strong>of</strong>SANDF Log forOperational doctrineAssistance to theResearch andDevelopment Wing<strong>of</strong> the SA NationalWar College(SANWC)SANDF Log for Operationaldoctrine developed and publishedProposal to improve the tasksettings and scenarios <strong>of</strong> theSANWC that result fromResearch and Developmentstaff workTo be completed by end<strong>2006</strong>Updating <strong>of</strong> specificpeace mission scenariosused in the Joint SeniorCommand and StaffProgrammeDevelopmental work is continuing.Developmental work is in progress.SUBPROGRAMME PROPERTY MANAGEMENTMEASURABLE OBJECTIVEThe Chief <strong>of</strong> Logistics manages the payment <strong>of</strong> accommodation charges, leases and municipal services as a direct result<strong>of</strong> the devolution <strong>of</strong> a portion <strong>of</strong> the budget <strong>of</strong> the National <strong>Department</strong> <strong>of</strong> Public Works to National <strong>Department</strong>s.OUTPUTSDetails <strong>of</strong> the Property Management output are reflected in Table 9.14.Table 9.14: Property Management Output details for the FY<strong>2006</strong>/<strong>07</strong>OutputPerformanceMeasureTargetAchievementPayment <strong>of</strong>accommodationcharges, leasesand municipalservicesThe degree towhich accountswere paid ontimeAll accounts paid infull on time and inaccordance withservice levelagreements with<strong>Department</strong> <strong>of</strong> PublicWorksOn 1 April <strong>2006</strong> the National <strong>Department</strong> <strong>of</strong> Public Worksdevolved the amount <strong>of</strong> Rm999 401 to the DOD.Accommodation Charges. An amount <strong>of</strong> R525 619 000 wasdevolved to the DOD. The whole amount was claimed by andpaid to National <strong>Department</strong> <strong>of</strong> Public Works.Leases. An amount <strong>of</strong> R144 850 000.00 was devolved to theDOD. The whole amount was claimed by and paid to National<strong>Department</strong> <strong>of</strong> Public Works.Municipal Services. An amount <strong>of</strong> R328 933 000.00 wasdevolved to the DOD. An amount <strong>of</strong> R270 848 785.39 wasclaimed and paid to National <strong>Department</strong> <strong>of</strong> Public Works. Theamount <strong>of</strong> R58 084 214.71 was not needed during the reportingperiod and was returned to the DOD Finance Division.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 129
Special <strong>Defence</strong> Accountchapter 10South African Army Paratrooper.programme 9130DEPARTMENT OF DEFENCE
Chapter TenPROGRAMME 9 -SPECIAL DEFENCE ACCOUNTa nationalpartnershipto build abetter lifefor allOVERVIEWThis Division is committed to satisfyarmaments and matériel requirements<strong>of</strong> the four services, SpecialForces and, to a lesser extent, othersecond level divisions in such amanner that full customer satisfactionis ensured at all times withinpolicy prescripts. In the process <strong>of</strong>capital acquisition, Special <strong>Defence</strong>Account (SDA) funds are spent accordingto corporate priorities to ensure costeffective solutions to requirements.Sound project management is executed tointegrate and focus the expertise <strong>of</strong>Armscor, local and foreign industry,research institutions and the inherentcapabilities vested in the military practitioners.The Division is committed to satisfy theday-to-day requirements <strong>of</strong> the<strong>Department</strong> <strong>of</strong> <strong>Defence</strong>. General<strong>Defence</strong> Account (GDA) funds are spentaccording to corporate priorities toensure cost effective solutions to requirements.PURPOSEThe Special <strong>Defence</strong> Account Programmeprovides for special defence activitiesand purchases.MEASURABLEOBJECTIVEMeet South Africa's defence needsthrough the acquisition and maintenance<strong>of</strong> appropriate defence equipment andactivities that meet the requirements <strong>of</strong>government.OUTPUT DETAILDetails <strong>of</strong> Special <strong>Defence</strong> Account outputare reflected in Table 10.1.DEPARTMENT:DEFENCETable 10.1: Special <strong>Defence</strong> Account Output Detail for theFY<strong>2006</strong>/<strong>07</strong>SubprogrammeOutputPerformanceMeasureTargetAchievementLandward<strong>Defence</strong>Acquisition,Procurement andproject managementservices forthe SA ArmyThe degree towhich the SAArmy requirementsare met interms <strong>of</strong>:Percentage <strong>of</strong>project milestonesachieved95%89,5% <strong>of</strong> the target wasachieved. There was adelay on Ground Based Air<strong>Defence</strong> System due tocontractor capacity.Delay in completion <strong>of</strong> thecontract <strong>of</strong> the new InfantryCombat Vehicle.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong>131
Table 10.1: Special <strong>Defence</strong> Account Output Detail for the FY<strong>2006</strong>/<strong>07</strong> (Continued)Subprogramme Output PerformanceMeasureTargetAchievementprogramme before the end <strong>of</strong> the FY<strong>2006</strong>/<strong>07</strong>.Delay on decisions on new Logistic vehicles.With the delay in the staffing <strong>of</strong> Project Officersin the Engineer environment and the restructuring<strong>of</strong> Armscor in the same environment, milestonesas indicated in baseline documentswere not reached as was foreseen. Reallocation<strong>of</strong> funds is in process.56% <strong>of</strong> the target was achieved. Delay in completion<strong>of</strong> the new Infantry Combat Vehicle programmecontract before end <strong>of</strong> the FY<strong>2006</strong>/<strong>07</strong>influenced advance payment. Delay in performancein time by Denel caused hold-ups inpayment milestones. Uncommitted roll over asrequested on the new Infantry Combat Vehicleprogramme was granted.Special <strong>Defence</strong> Accountchapter 10programme 9132Air <strong>Defence</strong>Maritime<strong>Defence</strong>SAMHS, JointSupport, CMI& Spec ForcesBrigadeAcquisition, procurement& projectmanagementservices for the SAAir ForceAcquisition, procurement& projectmanagementservices for the SANavyAcquisition, procurement& projectmanagement servicesfor the SA AirForcePercentage <strong>of</strong> budgetexpenditureThe degree to which theSA Air Force requirementsare met in terms<strong>of</strong>:Percentage <strong>of</strong> projectmilestones achievedPercentage <strong>of</strong> budgetexpenditureThe degree to which theSA Navy requirementsare met in terms <strong>of</strong>:Percentage <strong>of</strong> projectmilestones achievedPercentage <strong>of</strong> budgetexpenditureThe degree to which theCommon Acquisitionrequirements are met interms <strong>of</strong>:Percentage <strong>of</strong> projectmilestones achievedPercentage <strong>of</strong> budgetexpenditureDEPARTMENT OF DEFENCE95%95%95%95%95%88% <strong>of</strong> the target was achieved as a result <strong>of</strong> adelay in the shipment to the RSA <strong>of</strong> the fourLynx helicopters. Contracts have been placedfor delivery in the FY20<strong>07</strong>/08.76% <strong>of</strong> the target was achieved. The maindeviation has been caused by a delay in theshipment to the RSA <strong>of</strong> the four Lynx helicopters.Milestone payments will thus only be paidin FY20<strong>07</strong>/08. Other deviations have beencaused by slow invoicing by industry on workcarried out towards the end <strong>of</strong> the FY. Thefunds are committed and have rolled over.These funds will be paid early in FY20<strong>07</strong>/08.57,9% <strong>of</strong> the target was achieved. Sea MineWarfare Capability project was due for activationin January <strong>2006</strong> but only obtained approvalin October <strong>2006</strong>. Requested uncommitted rollover <strong>of</strong> funds.28,4% <strong>of</strong> the target was achieved. Approval forthe Sea Mine Warfare Capability project onlyobtained in October <strong>2006</strong>. The process followedby main contractor <strong>of</strong> the UnderwaterSignature Management project to obtain anExport Licence resulted in delayed payments.There are the only two projects in this portfolio.73,4% <strong>of</strong> the target was achieved. Delays inthe final approval <strong>of</strong> project related documentationresulted in late or non-placement <strong>of</strong> contracts.77,9% <strong>of</strong> the target was achieved as the late ornon-placement <strong>of</strong> contracts resulted in late payments.
Table 10.1: Special <strong>Defence</strong> Account Output Detail for the FY<strong>2006</strong>/<strong>07</strong> (Continued)Subprogramme Output PerformanceMeasureTargetAchievementTechnologyDevelopmentLandward, maritime,air operations,special operations,electronics& support operationsand Scientific,EngineeringTechnology (SET)supportTo maintain specialisedfacilities,test ranges andlaboratoriesTo create greatercollaborationbetween the DODand Universities &Technikons viabasic researchThe degree to which thedefence-related industryand <strong>Defence</strong> Evaluationand Research Institute(DERI) are capable <strong>of</strong>supporting SANDFacquisition projects andurgent operational deficienciesin terms <strong>of</strong>:Percentage <strong>of</strong> cash flowto DRI and DERI investmentPercentage <strong>of</strong> DERIfunded by technologyinvestmentMaintenance/use <strong>of</strong> facilitiesand test ranges.Replacement <strong>of</strong> capitallaboratory equipment interms <strong>of</strong> percentagetechnological upgrade <strong>of</strong>Test & Evaluation facilitiesInvolvement <strong>of</strong> studentsin focused postgraduateresearch in terms <strong>of</strong> percentagepreviously disadvantagedstudents areinvolved in post-graduatestudies95%50%7%56%89,5% <strong>of</strong> the target was achieved. Paymentdelayed due to administrative overload near theend <strong>of</strong> the FY<strong>2006</strong>/<strong>07</strong>. Outstanding paymentswill be made in the FY20<strong>07</strong>/08.The target <strong>of</strong> 50% was 106% achieved. Targetexceeded due to initially unfunded prioritiesthat were subsequently funded.92.9% <strong>of</strong> the target was achieved. The slightdeviation will be addressed during the nextfinancial year.The target was 100% achieved. Currently 70Previously Disadvantaged Individuals studyingat 14 tertiary institutions.Details <strong>of</strong> Special <strong>Defence</strong> Account Strategic <strong>Defence</strong> Procurement reflected in Table 10.2.Table 10.2: Special <strong>Defence</strong> Account Strategic <strong>Defence</strong> Procurement Output Detail for theFY<strong>2006</strong>/<strong>07</strong>Subprogramme Output PerformanceMeasureTargetAchievementAir <strong>Defence</strong>Acquisition, procurement& project managementservices forthe SA Air ForceThe degree to which theSA Air Force requirementsare met in terms <strong>of</strong>:Percentage <strong>of</strong> projectmilestones achievedPercentage <strong>of</strong> budgetexpenditure95%95%The target was 100% achieved.94,4% <strong>of</strong> the target was achieved. Alarge percentage <strong>of</strong> Light UtilityHelicopter project funds have rolled overfrom the FY2005/06. These funds areplanned for additional items that stillrequire approval. These funds thuscause an imbalance in the percentageexpended. An Acquisition Plan amendmentis planned for early in theFY20<strong>07</strong>/08.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 133
Table 10.2: Special <strong>Defence</strong> Account Strategic <strong>Defence</strong> Procurement Output Detail for theFY<strong>2006</strong>/<strong>07</strong> (Continued)Subprogramme Output PerformanceMeasureTargetAchievementMaritime<strong>Defence</strong>Acquisition, procurement& project managementservices forthe SA NavyThe degree to which theSA Navy requirements aremet in terms <strong>of</strong>:Percentage <strong>of</strong> projectmilestones achieved95%97,9% <strong>of</strong> the target was achieved due tooutstanding invoices that will beaddressed during the next financial year.Percentage <strong>of</strong> budgetexpenditure95%84,8% <strong>of</strong> the target was achieved. Thenew Submarine project has under spenton Project Management due to invoicesnot being submitted to the Project Team.Note:It must be noted that the <strong>Defence</strong> Materiel Division (formerly <strong>Department</strong>al Acquisition and Procurement Division) can only reporton the component <strong>of</strong> the Special <strong>Defence</strong> Account for which it is accountable, with the four Services and Intelligence Divisionhaving to account individually for their allocations under the Special <strong>Defence</strong> Account.PERFORMANCE AND SERVICE DELIVERY IMPROVEMENTDetails <strong>of</strong> performance and service delivery improvement reflected in Table 10.3.Table 10.3: Special <strong>Defence</strong> Account Programme Performance and Service Delivery for theFY<strong>2006</strong>/<strong>07</strong>ObjectiveActivitiesPlanned ManagementInterventionAnticipatedBenefitStatusAchievementSpecial <strong>Defence</strong> Accountchapter 10To exercisegreatercontrol inthe execution<strong>of</strong>acquisitionImprove theprocess forauthorisation<strong>of</strong> projectsImplementation <strong>of</strong>newly promulgatedArmamentsAcquisition PolicyControl <strong>of</strong> achievement<strong>of</strong> time & costgoals on all projectsMaximisedoperationalcapabilities withextended technologicallifeavailable todefenceIn processAll project milestone documentation wasscreened to confirm adherence to applicableacquisition and statutory policies.The promulgated acquisition policy isused as the basis for project <strong>of</strong>ficers'courses and in-service training programmes.The concept <strong>of</strong> Integrated Project Teammanagement has been instituted on twomajor acquisition projects to addressinefficiencies and contractual deviationsin a proactive manner.Risk management programmes havebeen implemented in conjunction withArmscor, clearly delineated withinappropriate levels <strong>of</strong> management.The management <strong>of</strong> IntellectualProperty Rights (IPR) has been initiatedin conjunction with Armscor as the regulatedcustodian <strong>of</strong> the IPR for the<strong>Department</strong> <strong>of</strong> <strong>Defence</strong>.programme 9134DEPARTMENT OF DEFENCE
Table 10.3: Special <strong>Defence</strong> Account Programme Performance and Service Delivery for theFY<strong>2006</strong>/<strong>07</strong> (Continued)ObjectiveActivitiesPlanned ManagementInterventionAnticipatedBenefitStatusAchievementThe management <strong>of</strong> IntellectualProperty Rights (IPR) has been initiatedin conjunction with Armscor as the regulatedcustodian <strong>of</strong> the IPR for the<strong>Department</strong> <strong>of</strong> <strong>Defence</strong>.A review process <strong>of</strong> the existingArmscor Service Level Agreement hasbeen initiated to address changes to beimplemented as a result <strong>of</strong> a change inthe registration status <strong>of</strong> Armscor, aswell as to address value for money inthe contracted services to be providedunder this agreement. In line with policyprescripts, existing acquisition policiesand directives are to be reviewed in20<strong>07</strong> to ensure continuous improvementin efficiency, effectiveness and economyin executing <strong>Defence</strong> acquisition andtechnology management.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 135
Organisational Structure and Human Resource Managementchapter 11programme136Figure 11.1: Organisational Structure <strong>of</strong> the <strong>Department</strong> <strong>of</strong> <strong>Defence</strong> for the FY<strong>2006</strong>/<strong>07</strong>Ministry <strong>of</strong> <strong>Defence</strong>LEVEL 0<strong>Department</strong> <strong>of</strong> <strong>Defence</strong>Secretary for <strong>Defence</strong>Head <strong>of</strong> <strong>Department</strong>Accounting OfficerLEVEL 1SA National <strong>Defence</strong> Force<strong>Defence</strong> Secretariat<strong>Defence</strong> ForeignRelationsDivision<strong>Defence</strong>InspectorateDivision<strong>Defence</strong> LegalServiceDivisionHumanResourceDivision<strong>Defence</strong> Policyand PlanningDivisionDEPARTMENT OF DEFENCE<strong>Defence</strong>EnterpriseInformationSystemManagement<strong>Defence</strong>MaterielDivisionFinancialManagementDivisionDOD CENTAL STAFFLEVEL 2CorporateStaffDivision<strong>Defence</strong>IntelligenceDivisionSA Navy SA MilitaryHealthServiceSA AirForceSA ArmyJointOperationsDivisionCommand &ManagementInformationSystemsMilitaryPoliceDivisionLogisticsDivisionChaplainGeneral<strong>Defence</strong>ReservesMilitary Policy,Strategy &Planning Office
Chapter ElevenORGANISATIONALSTRUCTURE AND HUMANRESOURCE MANAGEMENTa nationalpartnershipto build abetter lifefor allDEPARTMENT:DEFENCEOVERVIEWDuring the FY<strong>2006</strong>/<strong>07</strong>, the<strong>Department</strong> continued to regulateand maintain its HR compositionand to manage the quantitativeand qualitative dimensions there<strong>of</strong>within the allocated budget.Highlights include the approval <strong>of</strong><strong>Defence</strong> Update <strong>2006</strong>, which providedvisibility on the<strong>Department</strong>'s future post establishmenttable and resulting staffing requirements.The year also witnessed the start <strong>of</strong> aprocess to review the <strong>Department</strong>'sHuman Resource Strategy 2010, in orderto improve the efficacy <strong>of</strong> the strategy'simplementation.The rejuvenation <strong>of</strong> the <strong>Department</strong>'s HRcomposition continued with intakescomprising 4 492 new Military SkillsDevelopment System members.Rightsizing was given further impetuswith 1 008 members having availedthemselves to exit by means <strong>of</strong> theMobility Exit Mechanism, while 719members transferred to the SAPS.The <strong>Department</strong> completed a policyframework to institutionalise internshipprogrammes, while 240 young learnerscompleted the <strong>Department</strong>'s YouthFoundation Training Programme.Together with the Military SkillsDevelopment System, the above effortsgave a further boost to the <strong>Department</strong>'syouth empowerment efforts.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong>137
SERVICE DELIVERY IMPROVEMENT PLANTable 11.1: Main Services as identified from the Auditor General's <strong>Report</strong> for the FY2005/06Main ServicesPrimaryClientsSecondaryClientsStandard <strong>of</strong> ServiceActual Achievement Against StandardsOrganisational Structure and Human Resource Managementchapter 11programme138HRManagementHR StrategicDirection &PolicyServices andDivisionsServices andDivisions<strong>Defence</strong> ActPersonnel andPublic ServiceAct personnel<strong>Defence</strong> ActPersonnel andPublic ServiceAct personnelDEPARTMENT OF DEFENCEUnqualified Audit <strong>Report</strong> on●●●Administration <strong>of</strong>Housing LoanGuaranteesRank ReviewAuditLeaveAdministrationSystemUnqualified Audit<strong>Report</strong> on UnrealisticEstablishmentTable 11.2: Consultation Arrangements with ClientsType <strong>of</strong> Arrangement Primary Clients Secondary ClientsHR Staff Council<strong>Department</strong>alProgramme and BudgetEvaluation CommitteeServices and DivisionsServices and DivisionsTable 11.3: Service Delivery Access StrategiesAccess StrategyHR Planning BoardCareer Management ForumTable 11.4: Service Information ToolHR WebsiteSA SoldierInfo BulletinsTypes <strong>of</strong> Information ToolsPolicies and Directives<strong>Defence</strong> Act Personneland Public Service ActPersonnel<strong>Defence</strong> Act Personneland Public Service ActPersonnelThe DOD appointed a team whose task is toensure that all relevant files are audited and thestatus verified.Progress reports are submitted monthly.The DOD appointed a team whose task is toensure that, for each <strong>of</strong> the 384 non-statutoryforce members, a file is compiled with all relevantand appropriate documentation to supportthe validity <strong>of</strong> the Rank Review Process.Progress reports are submitted biweekly.Continued seminars to Service and Divisions onrequest.Facilitated leave administration presentation tolearners <strong>of</strong> the Joint Senior Command and StaffProgramme.Amended administrative instruction on management<strong>of</strong> work attendance registers was disseminatedto the Services and Divisions.The approved <strong>Defence</strong> Update <strong>2006</strong> addressedthe <strong>Department</strong>'s future post establishment andresultant staffing requirements.Actual AchievementsMonthly meetings with all HR representatives<strong>of</strong> the Services and Divisions.4 gatherings per year with representatives <strong>of</strong>the Services and Divisions.Actual AchievementsMonthly meetings with HR planners from the Services and Divisions.Monthly meetings with Career Managers from the Services and Divisions.Actual AchievementsUpdated weekly with information on the HR function in the DOD.Published monthly with an article on a specific HR environment in theDOD.Published as and when required to inform on latest development in the HRenvironment <strong>of</strong> the DOD.Promulgated and updated annually.
Table 11.5: Complaints MechanismComplaints MechanismHR Staff Council<strong>Department</strong>al Programme and BudgetEvaluation CommitteeActual AchievementsMonthly meetings with HR representatives from the Services and Divisions.4 gatherings per year with representatives <strong>of</strong> the Services and Divisions.EXPENDITURETable 11.6: Personnel Costs by Programme, <strong>2006</strong>/<strong>07</strong>ProgrammeTotalExpenditurePersonnelExpenditureTrainingExpenditurePr<strong>of</strong>essionaland SpecialServicesPersonnel Costas a Percent<strong>of</strong> TotalExpenditureAveragePersonnelCost perEmployeeAdministrationLandward <strong>Defence</strong>Air <strong>Defence</strong>Maritime <strong>Defence</strong>Military Health Support<strong>Defence</strong> IntelligenceJoint SupportForce EmploymentSpecial <strong>Defence</strong> AccountLocal and Foreign AidAssistanceTOTAL1 753 818 0003 989 521 0002 513 893 0001 311 840 0001 704 1<strong>07</strong> 000147 494 0002 646 108 0001 470 065 0008 280 738 00011 240 00023 828 824 000592 <strong>07</strong>5 4903 195 499 8081 396 787 346802 182 8781 086 399 487126 4<strong>07</strong> 4061 322 228 0147<strong>07</strong> 389 45509 228 969 8832 844 69011 861 77723 865 4995 599 8412 278 6701 473 89326 733 199960 18<strong>07</strong>5 617 7498 031 32219 839 934195 045 39846 381 8102 196 2434 244 87925 319 3898 950 575310 009 55033,8%80,1%55,6%61,1%63,8%85,7%50,0%48,1%0,0%38,7%2<strong>07</strong> 89286 874131 909123 565141 109193 283120 159488 1910119 056Note:Personnel expenditure includes payments to the value <strong>of</strong> Rm191 374, which were made to Households for attrition.Table 11.7: Personnel Costs by Salary Bands <strong>2006</strong>/<strong>07</strong>Salary BandsPersonnel Expenditure% <strong>of</strong> Total Personnel CostAverage PersonnelCost per EmployeeMilitary Skills Development SystemLower Skilled (levels 1-2)Skilled (levels 3-5)Highly Skilled Production (levels 6-8)Highly Skilled Supervision (levels 9-12)Senior Management (levels 13-16)TOTAL282 447 736438 686 7532 408 868 1903 581 838 7102 282 339 4<strong>07</strong>234 789 0879 228 969 8833,1%4,8%26,1%38,8%24,7%2,5%100,0%33 64160 05383 763146 305276 012762 302119 056ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 139
Table 11.8: Salaries, Overtime, Home Owners Allowance and Medical Assistance byProgramme <strong>2006</strong>/<strong>07</strong>ProgrammeSalaries Overtime Home Owners Allowance Medical AssistanceAmount Salariesas a % <strong>of</strong>PersonnelCostAmount Overtimeas a % <strong>of</strong>PersonnelCostAmount HOA as a% <strong>of</strong>PersonnelCostAmount MedicalAssistanceas a % <strong>of</strong>PersonnelCostOrganisational Structure and Human Resource Managementchapter 11AdministrationLandward<strong>Defence</strong>Air <strong>Defence</strong>Maritime<strong>Defence</strong>Military HealthSupport<strong>Defence</strong>IntelligenceJoint SupportForceEmploymentTOTAL411 125 4732 270 060 913918 138 702560 697 79<strong>07</strong>30 2<strong>07</strong> 74993 626 841940 182 366161 979 7286 086 019 56269,44%71,04%65,73%69,90%67,21%74,<strong>07</strong>%71,11%22,90%65,94%663 67020 857 8711 290 1899 033 26763 698 927117 7566 <strong>07</strong>9 3241 228 733102 969 7370,11%0,65%0,09%1,13%5,86%0,09%0,46%0,17%1,12%7 229 91761 214 15121 186 20914 335 27013 517 8281 416 43725 128 4333 219 305147 247 5541.22%1,92%1,52%1,79%1,24%1,12%1,90%0,46%1,60%5 421 95611 038 7302 566 5419 862 5146 365 870611 6308 003 872340 69244 211 805Table 11.9: Salaries Overtime Home Owners Allowance and Medical Assistance by SalaryBands <strong>2006</strong>/<strong>07</strong>ProgrammeMilitary SkillsDevelopmentLower Skilled(levels 1-2)Skilled (levels3-5)Highly SkilledProduction(levels 6-8)Highly SkilledSupervision(levels 9-12)SeniorManagement(levels 13-16)TOTAL194 908 506306 893 4611 642 124 7242 412 726 5261 428 598 <strong>07</strong>4100 768 2726 086 019 56369,01%69,96%68,17%67,36%62,59%42,92%65,94%2 978 8222 537 23814 109 46829 500 39444 825 2799 018 536102 969 737015 845 44155 167 23057 487 14217 406 6401 341 101147 247 5540,00%3,61%2,29%1,60%0,76%0,57%1,60%010 364 6005 946 54121 570 5265 224 146942 63744 048 4500.92%0,35%0,18%1,23%0,59%0,48%0,61%0,05%0,48%Salaries Overtime Home Owners Allowance Medical AssistanceAmount Salariesas a % <strong>of</strong>PersonnelCostAmount Overtimeas a % <strong>of</strong>PersonnelCostAmount HOA as a% <strong>of</strong>PersonnelCostAmount MedicalAssistanceas a % <strong>of</strong>PersonnelCost1,05%0,58%0,59%0,82%1,96%3,84%1,12%0,00%2,36%0,25%0,60%0,23%0,40%0,48%programme140DEPARTMENT OF DEFENCE
EMPLOYMENT AND VACANCIESTable 11.10: Employment and Vacancies by Programme 31 March 20<strong>07</strong>ProgrammeNumber <strong>of</strong>PostsNumber <strong>of</strong>EmployeesVacancy RateNumber <strong>of</strong> posts filled additionalto the EstablishmentAdministrationLandward <strong>Defence</strong>Air <strong>Defence</strong>Maritime <strong>Defence</strong>Military Health Support<strong>Defence</strong> IntelligenceJoint SupportForce EmploymentTOTAL3 08340 93113 0449 3409 23496915 6882 34494 6332 84836 78310 5896 4927 69965411 0041 44977 5187,62%10,13%18,82%30,5%16,6%32,5%29,9%38,2%18,1%-235-4 148-2 455-2 848-1 535-315-4 684-895-17 115Note: 12 875 Training posts are included in the post establishment <strong>of</strong> 94 633. The 94 633 posts refer only to the active postscaptured on the post establishment.Table 11.11: Employment and Vacancies by Salary Bands 31 March 20<strong>07</strong>Salary BandsNumber <strong>of</strong>PostsNumber <strong>of</strong>EmployeesVacancy RateNumber <strong>of</strong> posts filled additionalto the EstablishmentMilitary Skills Development SystemLower Skilled (levels 1-2)Skilled (levels 3-5)Highly Skilled Production (levels 6-8)Highly Skilled Supervision (levels 9-12)Pr<strong>of</strong>essionals (level 13-16)Senior Management (levels 13-16)TOTAL*11 5419 82030 64232 <strong>07</strong>010 18510626994 6338 3967 30528 75824 4828 2695025877 51827,3%25,6%6,2%23,7%18,8%52,8%4,1%18,1%-3 145-2 515-1 884-7 588-1 916-56-11-17 115Note:*The 94 633 posts refer only to the active posts captured on the post establishment.Table 11.12: Employment and Vacancies by Critical Occupation 31 March 20<strong>07</strong>Critical OccupationsNumber <strong>of</strong>PostsNumber <strong>of</strong>EmployeesVacancy RateNumber <strong>of</strong> posts filled additionalto the EstablishmentAnti-aircraftAir Space ControlArtilleryTechnicalEngineerMedical Pr<strong>of</strong>essionalNursingAircrewCombat NavyTOTAL9696041 29210 0342621 5841 97882233717 8828225341 1736 9031771 3521 5356<strong>07</strong>40613 50915,2%11,6%9,2%31,2%32,4%14,6%22,4%26,2%-24,5%-147-70-119-3 131-85-232-443-21569-4 373Note:The 17 882 posts refer only to the active posts captured on the post establishment.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 141
JOB EVALUATIONTable 11.13: Job Evaluation 01 April <strong>2006</strong> to 31 March 20<strong>07</strong>Salary BandsNumber <strong>of</strong>PostsNumber <strong>of</strong>JobsEvaluated% <strong>of</strong> PostsEvaluated bySalary BandPosts UpgradedNumber % <strong>of</strong> PostsEvaluatedPosts DowngradedNumber % <strong>of</strong> PostsEvaluatedMilitary Skills Development SystemLower Skilled (levels 12)Skilled (levels 3-5)Highly Skilled Production (levels 6-8)Highly Skilled Supervision (levels 9-12)Pr<strong>of</strong>essionals (levels 13-16)Senior Management Service Band ASenior Management Service Band BSenior Management Service Band CSenior Management Service Band DTOTAL11 5419 82030 64232 <strong>07</strong>010 1851062035311294 63305323811751030172101 2110,0%5,4%1,2%0,5%1,0%0,0%8,4%3,8%9,1%0,0%1,3%01096600000310,0%1,9%2,4%3,4%5,8%0,0%0,0%0,0%0,0%0,0%2,6%000400000040,0%0,0%0,0%2,3%0,0%0,0%0,0%0,0%0,0%0,0%0,3%Organisational Structure and Human Resource ManagementTable 11.14: Pr<strong>of</strong>ile <strong>of</strong> Employees whose Salary Positions were upgraded due to their Postsbeing upgraded from 01 April <strong>2006</strong> to 31 March 20<strong>07</strong>Beneficiaries African IndianFemaleMaleTOTALEmployees with a disability549000ColouredTOTALTable 11.15: Employees whose Salary Levels exceed the Grade determined by Job Evaluation1 April <strong>2006</strong> to 31 March 20<strong>07</strong> (in terms <strong>of</strong> PSR 1.V.C.3)Employees whose salary levels exceed the grade determined by job evaluationTable 11.16: Pr<strong>of</strong>ile <strong>of</strong> Employees whose Salary Levels exceed the Grade determined by Jobevaluation 1 April <strong>2006</strong> to 31 March 20<strong>07</strong> (in terms <strong>of</strong> PSR 1.V.C.3)Pr<strong>of</strong>ile <strong>of</strong> employees whose salary levels exceed the grade determined by job evaluation718White68141813310NilNilchapter 11programme142DEPARTMENT OF DEFENCE
EMPLOYMENT CHANGESTable 11.17: <strong>Annual</strong> Turnover Rates by Salary Band for the Period 01 April <strong>2006</strong> to31 March 20<strong>07</strong>Salary BandsNumber <strong>of</strong> Employeesper Salary Band as at1 April <strong>2006</strong>Appointments andTransfers into the<strong>Department</strong>Terminations andTransfers out <strong>of</strong>the <strong>Department</strong>TurnoverRateMilitary Skills Development SystemLower Skilled (Levels 1-2)Skilled (Levels 3-5)Highly Skilled Production (Levels 6-8)Highly Skilled Supervision (Levels 9-12)Senior Management Service Band ASenior Management Service Band BSenior Management Service Band CSenior Management Service Band DTOTAL8 2987 81828 70024 4678 2612178013477 8584 492521<strong>07</strong>26113731005 0539453611 6371 5708501810205 39342,7%-4,0%-5,3%-5,4%-8,6%-6,9%-11,3%-15,4%0,0%-0,4%Table 11.18: <strong>Annual</strong> Turnover Rates by Critical Occupation for the Period 01 April <strong>2006</strong> to31 March 20<strong>07</strong>Salary BandsNumber <strong>of</strong> Employeesper Salary Band as at1 April <strong>2006</strong>Appointments andTransfers into the<strong>Department</strong>Terminations andTransfers out <strong>of</strong>the <strong>Department</strong>TurnoverRateAnti-aircraftAir Space ControlArtilleryTechnicalEngineerMedical Pr<strong>of</strong>essional*NursingAircrewCombat NavyTOTAL7654941 10<strong>07</strong> 0411831 3921 56960844313 5951801252172719641<strong>07</strong>5954481055951733012242481 361-6.9%6,5%-9,5%-4,9%,0%-4,2%-1,7%-,2%-10,8%-4,4%Note:*Occupations included in the Medical Pr<strong>of</strong>essional category are Medical Practitioners, Pharmacists, Specialists and AncillaryHealth. 445 MSDS members are included in the appointment figure <strong>of</strong> 759.Table 11.19: Reasons why Staff are leaving the <strong>Department</strong>Termination TypeDeathResignationContract ExpiryTransfer to other Public Service <strong>Department</strong>sDismissal - Operational RequiredDismissal - Ill HealthDismissal - MisconductDischarged - IncapacityRetirementMobility Exit Mechanism/Employer Initiated Severance PackageTotalTotal number <strong>of</strong> employees who left as a % <strong>of</strong> the total employment as at 31 March 20<strong>07</strong>Number7801 1041 023830014219403121 0085 3937,0%% <strong>of</strong> Total14,5%20,5%19,0%15,4%0,0%2,6%3,6%0,0%5,8%18,7%100,0%ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 143
Table 11.20: Promotions by Critical OccupationCritical OccupationEmployeesas at 1 April<strong>2006</strong>Promotions toAnotherSalary LevelSalary LevelPromotions as a %<strong>of</strong> Employeesby OccupationProgression toanother Notch withina Salary LevelNotch Progressionas a % <strong>of</strong>Employeesby OccupationAnti-aircraftAir Space ControlArtilleryTechnicalEngineerMedical Pr<strong>of</strong>essionalNursingAircrewCombat NavyTOTAL7654941 10<strong>07</strong> 0411831 3921 56960844313 5951751193851 388621362551521662 83822,9%24,1%35,0%19,7%33,9%9,8%16,3%25,0%37,5%20,9%6783257405 1401038411 2952152759 61288,6%65,8%67,3%73,0%56,3%60,4%82,5%35,4%62,1%70,7%Organisational Structure and Human Resource Managementchapter 11programme144Table 11.21: Promotions by Salary BandSalary BandMilitary Skills Development SystemLower Skilled (levels 1-2)Skilled (levels 3-5)*Highly Skilled Production (levels 6-8)Highly Skilled Supervision (levels 9-12)Pr<strong>of</strong>essionals (levels 13-16)Senior Management (levels 13-16)TOTALNote:Employeesas at 1 April<strong>2006</strong>8 2987 81828 70024 4678 2615426<strong>07</strong>7 858DEPARTMENT OF DEFENCEPromotionsto AnotherSalary Level51003 6864 3471 3130269 882Salary BandsPromotions as a %<strong>of</strong> Employees bySalary LevelMigration from Military Skills Development System to Core Service System.EMPLOYMENT EQUITYOccupational Category(SASCO)Legislators Snr Officials andManagersPr<strong>of</strong>essionalsTechnicians and AssociatePr<strong>of</strong>essionalsClerksService and Sales WorkersCraft and Related TradesWorkersPlant and Machine OperatorsAnd AssemblersElementary OccupationsTOTALAfrican1146602 4475 19122 8823 9852965 75441 329MaleColoured Indian51173871 4872 9431 3241111 2097 58348258103175226129678White1086221 5331 4982 2432 967286189 617African155409212 2503 7017086,1%,0%12,8%17,8%15,9%,0%10,0%12,7%12 30510 441Progression toAnother Notchwithin a SalaryLevel<strong>07</strong> 22231 89419 1836 7182416065 201FemaleColoured Indian014425650561815516002 2792755863231308242NotchProgression as a% <strong>of</strong> Employeesby Salary BandWhite146717342 83959032101805 349,0%92,4%111,1%78,4%81,3%44,4%61,5%83,7%Table 11.22: Total number <strong>of</strong> Employees (INCLUDING Employees with Disabilities) in each <strong>of</strong>the following Occupational Categories as on 31 March 20<strong>07</strong>Total2622 9116 39413 93633 1759 69943810 70377 518
Table 11.22a: Total number <strong>of</strong> Employees (ONLY Employees with Disabilities) in each <strong>of</strong> thefollowing Occupational Categories as on 31 March 20<strong>07</strong>Occupational Category(SASCO)AfricanMaleColoured IndianWhiteAfricanFemaleColoured IndianWhiteTotalLegislators Snr Officials andManagersPr<strong>of</strong>essionalsTechnicians and AssociatePr<strong>of</strong>essionalsClerksService and Sales WorkersCraft and Related TradesWorkersPlant and Machine OperatorsAnd AssemblersElementary OccupationsTOTAL011356992511320800319108014540001010020310301934039900132001700030001400000000004832260658083514413274138432Table 11.23: Total number <strong>of</strong> Employees (INCLUDING Employees with Disabilities) in each <strong>of</strong>the following Occupational Bands as at 31 March 20<strong>07</strong>Occupational Category(SASCO)AfricanMaleColoured IndianWhiteAfricanFemaleColoured IndianWhiteTotalTop ManagementSenior ManagementPr<strong>of</strong>essionally QualifiedSkilled TechnicalSemi-skilledUnskilledMilitary Skills DevelopmentSystemTOTAL191041 9649 03521 1134 1234 97141 329056213 2572 4936905177 5831614337811842867831293 7654 566820173179 6173175442 6593 0871 9962 13510 44100618<strong>07</strong>6044673402 2790364113510112421171 1<strong>07</strong>3 6674728775 349272818 26924 48228 7587 3058 39677 518Table 11.23a: Total number <strong>of</strong> Employees (ONLY Employees with Disabilities) in each <strong>of</strong> thefollowing Occupational Bands as at 31 March 20<strong>07</strong>Occupational Category(SASCO)AfricanMaleColoured IndianWhiteAfricanFemaleColoured IndianWhiteTotalTop ManagementSenior ManagementPr<strong>of</strong>essionally QualifiedSkilled TechnicalSemi-skilledUnskilledMilitary Skills DevelopmentSystemTOTAL0013481341302080002320110540002000200335583099000241<strong>07</strong>00030104000000000<strong>07</strong>411000580053174176290432ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 145
Table 11.24: Recruitment (INCLUDING Employees with Disabilities) for the Period 01 April<strong>2006</strong> to 31 March 20<strong>07</strong>Occupational Bands Male FemaleTotalAfrican Coloured Indian White African Coloured Indian WhiteSenior ManagementPr<strong>of</strong>essionally QualifiedSkilled TechnicalSemi-skilledUnskilledMilitary Skills DevelopmentSystemTOTAL2305146152 5752 719<strong>07</strong>947231258018500184101313211782<strong>07</strong>13310243161 2791 47408286101672191211520847<strong>07</strong>3843368841372611<strong>07</strong>524 4925 053Table 11.24a: Recruitment (ONLY Employees with Disabilities) for the Period 01 April <strong>2006</strong>to 31 March 20<strong>07</strong>Recruitment employees with disabilitiesNilOrganisational Structure and Human Resource Managementchapter 11Table 11.25: Promotions (INCLUDING Employees with Disabilities) for the Period 01 April<strong>2006</strong> to 31 March 20<strong>07</strong>Occupational Band Male FemaleTotalAfrican Coloured Indian White African Coloured Indian WhiteSenior ManagementPr<strong>of</strong>essionally QualifiedSkilled TechnicalSemi-skilledMilitary Skills DevelopmentSystemTOTAL115242 1952 2492805 25901244433223192002576345140Table 11.25a: Promotions (ONLY Employees with Disabilities) for the Period 01 April <strong>2006</strong>to 31 March 20<strong>07</strong>Occupational Band Male FemaleTotalAfrican Coloured Indian White African Coloured Indian WhiteSenior ManagementPr<strong>of</strong>essionally QualifiedSkilled TechnicalSemi-skilledMilitary Skills DevelopmentSystemTOTAL029120230014050000009317526267391 15803300631536445861261 5120000000211641331733500100108191214000000031412808311518003003261 3134 3473 6865109 882051716038programme146DEPARTMENT OF DEFENCE
Table 11.26: Terminations (INCLUDING Employees with Disabilities) for the Period 01 April<strong>2006</strong> to 31 March 20<strong>07</strong>Occupational Band Male FemaleTotalAfrican Coloured Indian White African Coloured Indian WhiteSenior ManagementPr<strong>of</strong>essionally QualifiedSkilled TechnicalSemi-skilledUnskilledMilitary Skills DevelopmentSystemTOTAL6923651 2382134002 314025141110409641201159260111<strong>07</strong>205085339821031 2641411069388247576143323184412321355<strong>07</strong>32015632844037565308501 5701 6373619455 393Table 11.26a: Terminations (ONLY Employees with Disabilities) for the Period 1 April <strong>2006</strong>to 31 March 20<strong>07</strong>Occupational Band Male FemaleTotalAfrican Coloured Indian White African Coloured Indian WhiteSenior ManagementPr<strong>of</strong>essionally QualifiedSkilled TechnicalSemi-skilledUnskilledMilitary Skills DevelopmentSystemTOTAL0046401400000000000000029200130000000000000000000000330006051684033PERFORMANCE REWARDSTable 11.27: Performance Rewards by Race, Gender and Disability for Personnel below SeniorManagement Service (INCLUDING Members with Disabilities) 1 April <strong>2006</strong> to 31 March 20<strong>07</strong>RaceGenderNumber <strong>of</strong>BeneficiariesTotal number <strong>of</strong>Employees in Groupas at 01 April <strong>2006</strong>% <strong>of</strong> Totalwithin GroupTotal CostAverageCost perEmployeeAfricanSubtotal: AFRICANIndianSubtotal: INDIANColouredSubtotal: COLOUREDWhiteSubtotal: WHITETOTALMaleFemaleMaleFemaleMaleFemaleMaleFemale9 3352 06511 400214672812 3816813 0623 1202 2475 36720 11040 8049 52750 33173722396<strong>07</strong> 7312 1829 91310 5305 81016 34<strong>07</strong>7 54422,9%21,7%22,7%29,0%30,0%29,3%30,8%31,2%30,9%29,6%38,7%32,8%25,9%38 134 6198 496 44246 631 0611 396 862400 4881 797 35011 616 3922 826 14614 442 53924 622 16114 178 40638 800 567101 671 5174 0854 1144 0906 5275 9776 3964 8794 1504 7177 8926 31<strong>07</strong> 2295 056ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 147
Table 11.27a: Performance Rewards (ONLY Members with Disabilities) 1 April <strong>2006</strong> to 31March 20<strong>07</strong>Number <strong>of</strong>BeneficiariesTotal number <strong>of</strong>Employees in Group as at01 April <strong>2006</strong>% <strong>of</strong> Totalwithin GroupTotal CostAverage Cost perEmployee12645927,4%676 7935372Table 11.28: Performance Rewards by Salary Band for Personnel below Senior ManagementService for the Period 1 April <strong>2006</strong> to 31 March 20<strong>07</strong>Salary bandsNumber <strong>of</strong>BeneficiariesBeneficiary Pr<strong>of</strong>ileNumber <strong>of</strong>Employeesas at 01April <strong>2006</strong>% TotalwithinSalary BandTotal CostCostAverageCost perEmployeeTotal Cost as a% <strong>of</strong> the TotalPersonnelExpenditureOrganisational Structure and Human Resource ManagementMilitary Skills DevelopmentSystemLower Skilled (levels 1-2)Skilled (levels 3-5)Highly Skilled Production(levels 6-8)Highly Skilled Supervision(levels 9-12)TOTALCritical OccupationsAnti-aircraftAir Space ControlArtilleryTechnicalEngineerMedical Pr<strong>of</strong>essionalNursingAircrewCombat NavyTOTAL02 2367 56<strong>07</strong> 8202 49420 110Number <strong>of</strong>Beneficiaries1481604011 6761628242596903 2948 2987 81828 70024 4678 26177 544Beneficiary Pr<strong>of</strong>ileNumber <strong>of</strong>Employees as at01 April <strong>2006</strong>7654941 10<strong>07</strong> 0411831 3921 56960844313 595,0%28,6%26,3%32,0%30,2%25,9%05 852 81626 589 46643 986 77025 242 465101 671 51719,3%32,4%36,5%23,8%8,7%20,3%27,1%15,8%20,3%24,2%Total Cost02 6183 5175 62510 121Table 11.29: Performance Rewards by Critical Occupations 1 April <strong>2006</strong> to 31 March 20<strong>07</strong>% Total withinSalary Band5 056Cost678 7<strong>07</strong>1 120 9532 036 06810 692 683186 1402 416 7452 272 3111 173 200816 13521 392 942,0%1,33%1,10%1,23%1,11%1,10%Average Costper Employee4 5867 0065 <strong>07</strong>76 38011 6348 5705 34712 2219 0686 495chapter 11programme148DEPARTMENT OF DEFENCE
Table 11.30: Performance Related Rewards (cash bonus) by salary band for SeniorManagement Service 1 April <strong>2006</strong> to 31 March 20<strong>07</strong>Salary BandNumber <strong>of</strong>BeneficiariesBeneficiary Pr<strong>of</strong>ileNumber <strong>of</strong>Employees as at01 April <strong>2006</strong>% Total withinSalary BandTotal Cost(R'000)Average Costper EmployeeTotal Cost as a% <strong>of</strong> the TotalPersonnelExpenditureBand A*Band BBand CBand DTOTAL50005217801343142,3%,0%,0%,0%1,6%96 24600096 24619 24900019 2490,00%0,00%Note: *54 Pr<strong>of</strong>essionals (levels 13-16) were included in the total <strong>of</strong> 217 employees for Band A.FOREIGN WORKERSTable 11.31: Foreign Workers 1 April <strong>2006</strong> to 31 March 20<strong>07</strong> by Salary BandForeign Workers by salary bandNilTable 11.32: Foreign Workers 1 April <strong>2006</strong> to 31 March 20<strong>07</strong> by Major OccupationForeign Workers by major occupationNilLEAVE UTILISATION FOR THE PERIOD 1 JANUARY <strong>2006</strong> TO31 DECEMBER <strong>2006</strong>Table 11.33a: Sick Leave (taken by <strong>Defence</strong> Act Personnel) 1 January <strong>2006</strong> to 31 December<strong>2006</strong>Salary BandTotalDaysNumber <strong>of</strong>Employees usingSick Leave% <strong>of</strong> TotalEmployees usingSick LeaveAverage Days perEmployee usingSick LeaveEstimatedCost(Rand)Lower Skilled (Levels 1-2)Skilled (Levels 3-5)Highly Skilled Productions(Levels 6-8)Highly Skilled Supervision(Levels 9-12)Pr<strong>of</strong>essionals (Levels 13-16)Senior Management (Levels 13-16)Total36369 69171 20822 214104609164 1895510 66610 9713 620209125 42351,4%32,3%53,8%48,1%50,0%42,1%46,3%77665765 987815 081 98927 564 17214 881 303124 832727 67758 439 851ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 149
Table 11.33b: Sick Leave (Public Service Act Personnel) 1 January <strong>2006</strong> to 31 December<strong>2006</strong>Salary BandTotalDaysNumber <strong>of</strong>Employees usingSick Leave% <strong>of</strong> TotalEmployees usingSick LeaveAverage Days perEmployee usingSick LeaveEstimatedCost(Rand)Lower Skilled (Levels 1-2)Skilled (Levels 3-5)Highly Skilled Productions(Levels 6-8)Highly Skilled Supervision(Levels 9-12)Pr<strong>of</strong>essionals (Levels 13-16)Senior Management (Levels 13-16)Total26 5238 67320 3252 3481011257 9913 7811 1772 7093493198 03852,0%63,2%67,2%49,9%30,0%50,0%56,0%77873664 253 8711 916 4057 748 1611 771 65012 677142 03515 844 799Note:Employees are entitled to 36 working days sick leave in a cycle <strong>of</strong> 3 years on an average norm <strong>of</strong> 12 working days per year.Derived from the above it is evident that less than 50% <strong>of</strong> DOD employees utilised sick leave in the last year <strong>of</strong> the cycle endingon 31 December <strong>2006</strong>.Organisational Structure and Human Resource Managementchapter 11Table 11.34a: Disability Leave (Temporary and Permanent - <strong>Defence</strong> Act Personnel)01 January <strong>2006</strong> to 31 December <strong>2006</strong>Salary BandLower Skilled (Levels 1-2)Skilled (Levels 3-5)Highly Skilled Productions(Levels 6-8)Highly Skilled Supervision(Levels 9-12)Pr<strong>of</strong>essionals (Levels 13-16)Senior Management (Levels 13-16)TotalSalary BandLower Skilled (Levels 1-2)Skilled (Levels 3-5)Highly Skilled Productions(Levels 6-8)Highly Skilled Supervision(Levels 9-12)Pr<strong>of</strong>essionals (Levels 13-16)Senior Management (Levels 13-16)TotalTotalDays36831 15929 5737 7523826869 158Number <strong>of</strong>Employees usingSick Leave61 2961 4153761133 1<strong>07</strong>Number <strong>of</strong>Employees usingSick Leave86438594361012 254% <strong>of</strong> TotalEmployees usingSick Leave5,6%3,9%6,9%5,0%2,5%6,0%4,9%% <strong>of</strong> TotalEmployees usingSick Leave11,9%20,7%23,4%8,7%0%2,6%13,4%Average Days perEmployee usingSick Leave61242121382131Average Days perEmployee usingSick Leave2321201902321EstimatedCost(Rand)Table 11.34b: Disability Leave (Temporary and Permanent - Public Service Act Personnel)01 January <strong>2006</strong> to 31 December <strong>2006</strong>TotalDays19 8648 24419 2831 14102348 55562 2966 898 41411 657 4115 134 01341 703311 <strong>07</strong>724 104 914EstimatedCost(Rand)3 226 8081 874 7137 246 924862 131059 05913 269 635programme150Note:Employees are entitled to disability leave after the 36 working days <strong>of</strong> normal sick leave have been fully utilised. It is evidentthat only 7,1% <strong>of</strong> DOD personnel used on average 22 days disability leave in excess <strong>of</strong> their normal sick leave.DEPARTMENT OF DEFENCE
Table 11.35a: <strong>Annual</strong> Leave (<strong>Defence</strong> Act Personnel) 01 January <strong>2006</strong> to 31 December <strong>2006</strong>Salary BandTotal Days TakenAverage per EmployeeLower Skilled (Levels 1-2)Skilled (Levels 3-5)Highly Skilled Productions (Levels 6-8)Highly Skilled Supervision (Levels 9-12)Pr<strong>of</strong>essionals (Levels 13-16)Senior Management (Levels 13-16)Total2 643510 357435 753162 9668974 7491 117 36524192324242523Table 11.35b: <strong>Annual</strong> Leave (Public Service Act Personnel) 01 January <strong>2006</strong> to 31 December<strong>2006</strong>Salary BandTotal Days TakenAverage per EmployeeLower Skilled (Levels 1-2)Skilled (Levels 3-5)Highly Skilled Productions (Levels 6-8)Highly Skilled Supervision (Levels 9-12)Pr<strong>of</strong>essionals (Levels 13-16)Senior Management (Levels 13-16)Total179 31743 04495 30611 867244774330 55224252624272425Note:Employees with less than 10 years service are entitled to 22 working days annual leave and employees with more than 10 yearsservice are entitled to 26 working days annual leave. On average the annual leave taken is therefore within the norms.Table 11.36a: Capped Leave (<strong>Defence</strong> Act Personnel) 01 January <strong>2006</strong> to 31 December <strong>2006</strong>Salary BandTotal Days <strong>of</strong> CappedLeave TakenAverage Number <strong>of</strong>Days Taken perEmployeeAverage Capped Leaveper Employee as at 31December <strong>2006</strong>Lower Skilled (Levels 1-2)Skilled (Levels 3-5)Highly Skilled Productions (Levels 6-8)Highly Skilled Supervision (Levels 9-12)Pr<strong>of</strong>essionals (Levels 13-16)Senior Management (Levels 13-16)Total49159 40660 6<strong>07</strong>27 811186791149 2921<strong>07</strong>811141410842833709018087Table 11.36b: Capped Leave (Public Service Act Personnel) 01 January <strong>2006</strong> to 31 December<strong>2006</strong>Salary BandTotal Days <strong>of</strong> CappedLeave TakenAverage Number <strong>of</strong>Days Taken perEmployeeAverage Capped Leaveper Employee as at 31December <strong>2006</strong>Lower Skilled (Levels 1-2)Skilled (Levels 3-5)Highly Skilled Productions (Levels 6-8)Highly Skilled Supervision (Levels 9-12)Pr<strong>of</strong>essionals (Levels 13-16)Senior Management (Levels 13-16)Total7 7521 5983 92863512813 93323461224555434544012065Note:Although 9,5% <strong>of</strong> employees took capped leave (leave days credit taken in excess <strong>of</strong> annual leave entitlement) it is to the benefit<strong>of</strong> the DOD, as it will reduce the financial contingent liability on the DOD with respect to leave creditsANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 151
Table 11.37a: Leave payouts (<strong>Defence</strong> Act Personnel) for the period 01 April <strong>2006</strong> to31 March 20<strong>07</strong>ReasonTotal AmountNumber <strong>of</strong>EmployeesAverage Paymentper EmployeeLeave payout for <strong>2006</strong>/<strong>07</strong> due to non-utilisation <strong>of</strong> leave for previouscycle64 663115 878Leave payout for <strong>2006</strong>/<strong>07</strong> due to discounting <strong>of</strong> leave.Leave payouts for <strong>2006</strong>/<strong>07</strong> on termination <strong>of</strong> serviceTOTAL27 697 41755 729 96483 492 0443 8351 9785 8247 22228 17514 336Table 11.37b: Leave payouts (Public Service Act Personnel) for the period 01 April <strong>2006</strong> to31 March 20<strong>07</strong>ReasonTotal AmountNumber <strong>of</strong>EmployeesAverage Paymentper EmployeeOrganisational Structure and Human Resource Managementchapter 11Leave payout for <strong>2006</strong>/<strong>07</strong> due to non-utilisation <strong>of</strong> leave for previouscycleLeave payout for <strong>2006</strong>/<strong>07</strong> due to discounting <strong>of</strong> leave.Leave payouts for <strong>2006</strong>/<strong>07</strong> on termination <strong>of</strong> serviceTOTALNote:31 3981 503 7389 180 67210 715 80856036681 2766 2802 49413 7448 398All vacation leave to an employee's credit on termination <strong>of</strong> service by means <strong>of</strong> retirement, medical retirement, early retirement,contract expiry or exit mechanisms is paid out. Discharges (misconduct) are excluded.HIV AND AIDS & HEALTH PROMOTION PROGRAMMESTable 11.38: Steps taken to reduce the risk <strong>of</strong> occupational exposureUnits/categories <strong>of</strong> employees identified to be at high risk <strong>of</strong>contracting HIV & related diseases (if any)Low risk: All membersMedium risk: Members on Deployment (Internal to RSA)High risk: Members on Deployment (External to RSA)●●●●●●●●●●●●●Key steps taken to reduce the riskHIV Workplace ProgramsPeer EducationBuddy Aid LecturesFirst Aid BoxesOHS ProgrammePeer EducationBuddy Aid LecturesTrained Operational Emergency Care OrderliesPlastic GlovesPeer EducationTrained Operational Emergency Care OrderliesPlastic GlovesSpecific HIV Prevention Programmeprogramme152DEPARTMENT OF DEFENCE
Table 11.39: Details <strong>of</strong> Health Promotion and HIV/AIDS Programmes. (Tick the applicableboxes and provide the required information)QuestionYesNoDetails if yesHas the <strong>Department</strong> designated as member <strong>of</strong>the SMS to implement the provision contained inPart VI e <strong>of</strong> Chapter 1 <strong>of</strong> the Public ServiceRegulations 2001? If so, provide her/his nameand positionXBrigadier General M.E.S. SwanepoelDirector HIV/AIDSDOD HIV & AIDS Programme ManagerDoes the <strong>Department</strong> have a dedicated unit orhas it designated specific staff members to promotethe health and well-being <strong>of</strong> employees? Ifso, indicate the number <strong>of</strong> employees who areinvolved in this task and the annual budget that isavailable for this purposeXDedicated HIV and AIDS Programme Managerwho coordinates the Comprehensive Plan forCare Management and Treatment <strong>of</strong> HIV andAIDS in the DOD.Project Phidisa, a five-year clinical research programme,maintains dedicated staff members toestablish the best ARV combination for militarymembers.Has the <strong>Department</strong> introduced an EmployeeAssistance or Health Promotion Programme foryou employees? If so, indicate the key elements/services<strong>of</strong> this ProgrammeThe SA Military Health Service has a ComprehensivePlan for Care Management and Treatment <strong>of</strong>HIV and AIDS in the DOD that includes prevention<strong>of</strong> HIV and Health Promotion.The key elements <strong>of</strong> the HIV PreventionProgramme are:●HIV and AIDS Workplace Programmes.●Mass AwarenessX●●Management <strong>of</strong> occupational transmission.Prevention <strong>of</strong> mother to child transmission.●Prevention <strong>of</strong> opportunistic infections.●Utilisation <strong>of</strong> all awareness opportunities (egNational Health Days, etc).●Innovative programmes/projects.●Programmes/projects that focus on abstinenceand faithfulness.Key elements <strong>of</strong> the Health PromotionProgrammes are:●Counselling.●Education Training and Development.●Management <strong>of</strong> Sexually TransmittedInfections.●Health promotion through physical training,sport and recreation.Has the <strong>Department</strong> established (a) committee(s)as contemplated in Part VI E.5 (e) <strong>of</strong> Chapter 1<strong>of</strong> the Public Service Regulations 2001? If so,please provide the names <strong>of</strong> the members <strong>of</strong> thecommittee and the stakeholders that they representXThe HIV and AIDS Advisory Board <strong>of</strong> the<strong>Department</strong> <strong>of</strong> <strong>Defence</strong> has been reconstituted tostart functioning in 20<strong>07</strong>. During the year underreview all Command Structures assumed thisresponsibility.Has the <strong>Department</strong> reviewed its employmentpolicies and practices to ensure that these do notunfairly discriminate against employees on thebasis <strong>of</strong> their HIV status? If so, list the employmentpolicies/practices so reviewed●DOD Directive. Development <strong>of</strong> <strong>Department</strong>Level Policy in the DOD (DOD) regarding theManagement <strong>of</strong> Human ImmunodeficiencyVirus and Acquired Immune DeficiencySyndrome Programme.X●DOD Instruction. DOD (DOD) Instruction onDevelopment Promulgation Maintenance andManagement <strong>of</strong> the DOD HumanImmunodeficiency Virus and Acquired ImmuneDeficiency Syndrome Programme.●Joint <strong>Defence</strong> Publication. Policy Processand Procedures for the DevelopmentPromulgation and Maintenance <strong>of</strong> the DODHIV and AIDS Programme.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 153
Table 11.39: Details <strong>of</strong> Health Promotion and HIV/AIDS Programmes. (Tick the applicableboxes and provide the required information) (Continued)QuestionYesNoDetails if yesHas the <strong>Department</strong> introduced measures to protectHIV-positive employees or those perceived tobe HIV positive from discrimination? If so, list thekey elements <strong>of</strong> these measuresDoes the <strong>Department</strong> encourage its employeesto undergo voluntary counseling and testing? Ifso, list the results that you have achieved.Has the <strong>Department</strong> developed measures/indicatorsto monitor & evaluate the impact <strong>of</strong> its healthpromotion programme? If so, list these measures/indicatorsXXXThe current DOD Instruction provides specificguidelines in this regard, as well as processes tobe followed when such discrimination is found orperceived.Last KAP Survey indicates that 81% <strong>of</strong> all membershave had an HIV test and 66% <strong>of</strong> membersindicated that they have had an HIV test in thepast year.The DOD HIV and AIDS Monitoring andEvaluation Subprogramme was approved forimplementation in 2005. This plan includes monitoringand evaluation <strong>of</strong> inputs, processes outputs,outcomes and impact through more than200 established indicators.LABOUR RELATIONSOrganisational Structure and Human Resource ManagementTable 11.40: Collective Agreements 1 April <strong>2006</strong> to 31 March 20<strong>07</strong>Total Collective AgreementsNoneTable 11.41: Misconduct and disciplinary hearings finalised 1 April <strong>2006</strong> to 31 March 20<strong>07</strong>Outcomes <strong>of</strong> Disciplinary HearingsNumber% <strong>of</strong> TotalCorrectional CounselingVerbal WarningWritten WarningFinal Written WarningSuspended Without PayFine *DemotionDismissalNot guiltyCase withdrawnTOTAL51581005143017%3,3%17%27%3,3%0%0%17%3,3%13,3%100%Note: *Fines do not form sanctions as contained in PSCBC Resolution 2/99 as amended by PSCBC Resolution 1/03.chapter 11programme154DEPARTMENT OF DEFENCE
Table 11.42: Types <strong>of</strong> Misconduct addressed at Disciplinary HearingsType <strong>of</strong> MisconductNumber% <strong>of</strong> TotalAbsence Without PermissionTheftFraudPunctualityInsubordinationAssaultAbusive LanguageUnder the InfluenceDamage <strong>of</strong> State PropertyDisobedienceDisrespectUnauthorised Use <strong>of</strong> State PropertyNegligenceMismanagement/Loss <strong>of</strong> FundsTOTAL723121121115443520%6%9%3%6%3%3%6%3%3%3%14,3%11,4%11,4%100%Note:The figures indicated in tables 11.41 and 11.42 differ due to the reason that an employee may be charged for more than one<strong>of</strong>fence at a single disciplinary hearing.Table 11.43: Grievances Lodged for the Period 01 April <strong>2006</strong> to 31 March 20<strong>07</strong>GrievancesNumber% <strong>of</strong> TotalNumber <strong>of</strong> Grievances ResolvedNumber <strong>of</strong> Grievances not ResolvedTOTAL Number <strong>of</strong> Grievances Lodged7192429,2%79,2%100%Table 11.44: Disputes Lodged with Councils for the Period 01 April <strong>2006</strong> to 31 March 20<strong>07</strong>DisputesNumber% <strong>of</strong> TotalNumber <strong>of</strong> disputes upheldNumber <strong>of</strong> disputes dismissedTOTAL number <strong>of</strong> disputes lodged016500%32%100%Table 11.45: Strike Actions for the Period 01 April <strong>2006</strong> to 31 March 20<strong>07</strong>Total number <strong>of</strong> man-days lostTotal cost <strong>of</strong> working days lostAmount recovered as a result <strong>of</strong> no work, no pay000Table 11.46a: Precautionary Suspensions (<strong>Defence</strong> Act Personnel) for the Period 01 April<strong>2006</strong> to 31 March 20<strong>07</strong>Number <strong>of</strong> people suspendedNumber <strong>of</strong> people whose suspension exceeded 30 daysAverage number <strong>of</strong> days suspendedCost <strong>of</strong> suspensions3636365R4 286 015ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 155
Table 11.46b: Precautionary Suspensions (Public Service Act Personnel) for the Period01 April <strong>2006</strong> to 31 March 20<strong>07</strong>Number <strong>of</strong> people suspendedNumber <strong>of</strong> people whose suspensions exceeded 30 daysAverage number <strong>of</strong> days suspendedCost <strong>of</strong> suspensions88272R709 769SKILLS DEVELOPMENTTable 11.47: Training Needs Identified, 01 April <strong>2006</strong> to 31 March 20<strong>07</strong>Occupational CategoriesGenderNumber <strong>of</strong>Employees asat 01 April <strong>2006</strong>Training Needs Identified at Start <strong>of</strong> <strong>Report</strong>ing PeriodLearnerships Skills Programmes Other Forms Totaland other Short <strong>of</strong> TrainingCoursesOrganisational Structure and Human Resource Managementchapter 11programme156Legislators, senior <strong>of</strong>ficials andmanagersPr<strong>of</strong>essionalsTechnicians and associatepr<strong>of</strong>essionalsClerksService and sales workersCraft and related trades workersPlant and machine operatorsand assemblersElementary occupationsSubtotalTOTALOccupational CategoriesLegislators, senior <strong>of</strong>ficials andmanagersPr<strong>of</strong>essionalsTechnicians and associatepr<strong>of</strong>essionalsClerksFemaleMaleFemaleMaleFemaleMaleFemaleMaleFemaleMaleFemaleMaleFemaleMaleFemaleMaleFemaleMaleGenderFemaleMaleFemaleMaleFemaleMaleFemaleMaleDEPARTMENT OF DEFENCE20195147715131931451256518479447128559110085682453312877991778060<strong>07</strong>877858Number <strong>of</strong>Employees asat 01 April <strong>2006</strong>201951 4771 5131 9314 5125 6518 4790000132926632024300002312264147411Table 11.48: Training Provided, 01 April <strong>2006</strong> to 31 March 20<strong>07</strong>223627747313910032537503135419225739911952784136695011086133441156448296184312291378417554514532215532328810602138901233081 1434353 0498371 43923396211 6296003 9931 1222 0424 7158 4103119136512906227 68817 69925 387Training Needs Identified at Start <strong>of</strong> <strong>Report</strong>ing PeriodLearnerships Skills Programmes Other Totaland other Short Forms <strong>of</strong>Courses Training00009222648253624439620860425392837395521 5396523 6751 1162 415
Table 11.48: Training Provided, 01 April <strong>2006</strong> to 31 March 20<strong>07</strong> (Continued)Occupational CategoriesGenderNumber <strong>of</strong>Employees asat 01 April <strong>2006</strong>Training Needs Identified at Start <strong>of</strong> <strong>Report</strong>ing PeriodLearnerships Skills Programmes Other Totaland other Short Forms <strong>of</strong>Courses TrainingService and sales workersCraft and related trades workersPlant and machine operatorsand assemblersElementary occupationsSubtotalTOTALFemaleMaleFemaleMaleFemaleMaleFemaleMaleFemaleMale4 47128 5591 1008 56824533 1287 79917 78060 <strong>07</strong>877 85820043000023122581253833 1213 01625839011944714 1545 4609 6141 1184 558316682321954932 93811 38514 3234 4397 6172891 0583512625767 35016 97024 320INJURY ON DUTYTable 11.49: Injury on Duty (<strong>Defence</strong> Act Personnel) 01 April <strong>2006</strong> to 31 March 20<strong>07</strong>Nature <strong>of</strong> Injury on DutyNumber% <strong>of</strong> TotalRequired Basic Medical Attention only 1Temporary Total Disablement 2Permanent Disablement 3Fatal 4TOTAL1 106101121 12998,0%0,9%1,0%0,2%100,0%Table 11.49a: Injury on Duty (Public Service Act Personnel) 01 April <strong>2006</strong> to 31 March 20<strong>07</strong>Nature <strong>of</strong> Injury on DutyNumber% <strong>of</strong> TotalRequired Basic Medical Attention only 1Temporary Total Disablement 2Permanent Disablement 3Fatal 4TOTAL314113783,8%10,8%2,7%2,7%100,0%1 Required Basic Medical Attention Only. This is the action or manner <strong>of</strong> treating an individual medically or surgically to stabiliseand promote healing.2. Temporary Total Disablement. This is the temporary alteration <strong>of</strong> an individual's physical or mental status that limits activity.Medical or surgical treatment may stabilise the condition and restore the health <strong>of</strong> an individual to normal within a defined period.3. Permanent Disablement. This is the permanent alteration <strong>of</strong> an individual's capacity to meet personal, social or occupationaldemands or statutory or regulatory requirements because <strong>of</strong> impairment. This status is <strong>of</strong>ten coupled to a loss <strong>of</strong> a limb or sensechronic pain disfigurement and other permanent physical or mental disorders.4. Fatal. An injury disease or condition causing or ending in organ or multi-organ failure and death.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 157
UTILISATION OF CONSULTANTSTable 11.50: <strong>Report</strong> on Consultant appointments using Appropriate FundsProject TitleTotal Number <strong>of</strong>Consultants thatWorked on ProjectDuration:Work DaysContract Value inRand<strong>Defence</strong> Policy Strategy and Planning Division:DIMS24991 475 593Organisational Structure and Human Resource ManagementSA Army<strong>Defence</strong> Policy Strategy and Planning Division:LOQUACIOUS<strong>Defence</strong> Policy Strategy and Planning Division:DOMINOBalanced ScorecardAcquisition <strong>of</strong> Representative Candidates into CoreMustering: Pilot/Navigator selectionMilitary Health Support: PPP since November 2003SA Navy: Design Drawing <strong>of</strong> specifications,submarine support facilities in Simon’s TownTotal Number <strong>of</strong> Projects8Total IndividualConsultants25845115333398361 6512504949Fixed contract price withTreasury Approvals asmilestones.76,75Total Duration:Work Days3 749, 751 060 9092 896 89<strong>07</strong> 779 6621 237 800278 93918 2401 782 300488 843Total ContractValue in Rand17 019 176chapter 11programme158DEPARTMENT OF DEFENCE
APPENDIX ASTATUS OF THE SANDFRESERVESa nationalpartnershipto build abetter lifefor allDEPARTMENT:DEFENCEProgress has been made over thepast year in preparing theReserves strategically to providethe bulk <strong>of</strong> the forces in the landwarddefence capability. Despitethe progress in developing a pr<strong>of</strong>essional,transformed, effectiveand combat ready Reserve capable<strong>of</strong> fulfilling its role with regulars inthe Force in terms <strong>of</strong> the core growth oneforce policy, much still needs to be done.The progress to date and the challengesfor the future are described below.Numerous key developments took placein the SA Army over the past year. Therewas a significant increase in the budgetallocated to the Reserve Force. An additional2 500 selected, retrained members<strong>of</strong> the Army Territorial Reserve weretransferred to the Army ConventionalReserve. The first, albeit small, contingent<strong>of</strong> trained MSDS members weretransferred to the Reserves. A total <strong>of</strong> 95junior <strong>of</strong>ficers and 60 junior non-commissioned<strong>of</strong>ficers were trained. The periodunder review further witnessed thedeployment <strong>of</strong> additional infantry companies,accompanied by an engineertroop, in peace-support operations in theregion <strong>of</strong> the great lakes. Reserves weredeployed internally in deployments onborderline control, swine fever curtailmentand the guarding <strong>of</strong> military installations.The SA Air Force's focus over the pastyear has been placed on improving representivityamongst the leader group.Pilots from previously disadvantagedbackgrounds have been recruited.The SA Navy's redeployment <strong>of</strong> Reservemembers in new post structures has beencompleted, following the deactivation <strong>of</strong>the Reserve Force Naval units. This hasbeen accompanied by an increased number<strong>of</strong> sea-going posts being filled byReserve Force members. Approximately15% <strong>of</strong> the Naval Reserve is called up forservice at any given time. An employmentplacement agency has also beenestablished in Simon's Town to assistMSDS members joining the ReserveForce in finding civilian employment.The SAMHS succeeded in recruiting atotal <strong>of</strong> 14 third and fourth-year medicalstudents who completed their basictraining in the pilot University ReserveTraining Unit. The group is currentlyundergoing leadership training. In additionto conducting BATLS and BARTStraining for Reserves, specialist medicalpersonnel have been recruited.Within the divisions, emphasis has alsobeen placed on the Reserves. <strong>Defence</strong>Military Legal Services makes extensiveuse <strong>of</strong> Reserve legal practitioners. TheCommand and Management InformationSystems Division has continuedANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong>159
with training exercises, while Chaplain Services haslaunched an initiative to improve representivity andmade Reserve chaplains available for deployment inpeace-support operations.The challenges that remain in order to achieve an availableand efficient Reserve Force, and that are beingaddressed, include increasing the numbers <strong>of</strong> fullytrained MSDS members who are committed to serve inthe Reserves, budget allocations for continuation training,representivity <strong>of</strong> the leader group and support for Reserveservices amongst employers.RFC, as requested by the Plenary <strong>Defence</strong> Staff Council,made an input to the Military Discipline Bill as it affectsmembers <strong>of</strong> the Reserves.The RFC led the South African delegation to the internationalcongress <strong>of</strong> the CIOR/ Inter-allied Confederation <strong>of</strong>Medical Reserve Officers (CIOMR) in Italy during July<strong>2006</strong>. The RFC, in cooperation with the SANDF, hasembarked on a training programme <strong>of</strong> reserves for theMilitary Skill Competition, the international combat fitnessexercise in which Reserve Force <strong>of</strong>ficers compete forthe highest place in the NATO competition.<strong>Defence</strong> ReservesRESERVE FORCE COUNCILThe Reserve Force Council (RFC) is a statutory body interms <strong>of</strong> the <strong>Defence</strong> Act, 2002. The Minister <strong>of</strong> <strong>Defence</strong>ratified the appointment <strong>of</strong> 11 Council members under theChairmanship <strong>of</strong> Col (Dr) John Job.The RFC briefed the Joint Standing Committee on <strong>Defence</strong>in September <strong>2006</strong>. The RFC regularly interacted with theleadership <strong>of</strong> the DOD and the SANDF this past year inline with their mandates as consultative and advisorybodies representing the Reserve Force. The RFC has beenwell represented on the <strong>Defence</strong> Reserve Board and ArmyTerritorial Entry/Exit Committee, Honours AdvisoryPanel, Shield Committee and Army Reserve ShootingAssociation, to name but a few. The RFC has made significantinputs to the revision <strong>of</strong> the <strong>Defence</strong> Act, 2002,<strong>Defence</strong> Update <strong>2006</strong> and Draft General Regulations onthe Reserve Force. The RFC participated in an Inter-alliedConfederation <strong>of</strong> Reserve Officers (CIOR) comparativestudy regarding the concept <strong>of</strong> a liability to serve by volunteerreservists in time <strong>of</strong> peace. This resulted in theRFC being able to make a significant contribution to thedrafting <strong>of</strong> amending legislation to introduce such an obligationto serve to guarantee the availability <strong>of</strong> the ReserveForce in times <strong>of</strong> serious crises and times <strong>of</strong> peace. TheThe RFC has paid particular attention to the phasing out<strong>of</strong> the Army Territorial Reserves and their role replacementby the SAPS. The RFC is still concerned that certainsecurity vacuums could occur in some instances. The RFCregions have been involved in numerous workshops tomotivate the transfer <strong>of</strong> former Commando members tothe Army Conventional Reserves and/or SAPS. The RFChas been monitoring and attending the closure <strong>of</strong> a number<strong>of</strong> units.The 10 RFC regions in the nine provinces have playedvery active roles, and better feedback is being received asa result there<strong>of</strong>. Members <strong>of</strong> the RFC took part in a number<strong>of</strong> local parades, which included working with localgovernment authorities. The RFC is encouraging all ATRunits to record where their assets, colours and memorabiliaare being housed and to place these in appropriatemuseums, both locally and nationally. Once again theRFC has been directly involved in the major shootingcompetitions, inter alia the Gold Cup, White Horse Shieldand Edinburgh Bisley.The RFC Association (RFCA) was revitalised last year andits main focus is ensuring that ex-ATR (Commando) membersreceive their Closure Commemoration Medal. TheRCFA is liaising with other military-aligned organisations,especially those that are interested in Reserves.Appendix Aprogramme 1160DEPARTMENT OF DEFENCE
APPENDIX BDEFENCE DIPLOMACYDOD REPRESENTATIONBY DEFENCE ATTACHÉSThe SANDF has 34 defence attachésdeployed in 31 countries andorganisations and they also havefurther non-residential accreditation in15 other countries/multinational organisations.These attachés are the first line<strong>of</strong> the DOD's defence diplomacy effortsinternationally and is reflected inFigure 1.Figure 1: Map <strong>of</strong> deployment <strong>of</strong> SANDF <strong>Defence</strong> AttachésSANDF DEFENCE ATTACHÉSResident (31)Algeria, Angola; Argentina; Belgium, Botswana; Brazil; Côted'Ivoire, DRC; Ethiopia; Egypt; France; Germany; India; Italy;Kenya, Malaysia; Mozambique; Namibia; Nigeria; PRC; Russia;Saudi Arabia, Spain; the Sudan, Tanzania; UK; UN; United ArabEmirates, USA; Zambia; ZimbabweNon-resident (15)AAU; Brunei; Canada; The Czech Rep;Indonesia; Jordan; Malawi; Morocco; theNetherlands; Paraguay; the Philippines;The Rep <strong>of</strong> Congo; Romania; Sweden;UruguayANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 161
MILITARY ATTACHÉ ANDADVISOR CORPS (MAAC)REPRESENTATION IN SOUTHAFRICAThere are 69 members from 41 countries accredited to theSANDF and two members have non-residential accreditation.See Figure 2.BILATERAL AND MULTILATERALINTERACTION<strong>Defence</strong> bilateral structural meetings were conductedwith 19 countries to enhance bilateral relations anddefence-to-defence cooperation. The meetings were thefollowing: <strong>Defence</strong> Committee meeting between Zambiaand South Africa in Livingstone, Zambia; Inaugural<strong>Defence</strong> Committee meeting between Lesotho and SouthAfrica in Maseru; consultative talks between the DeputyMinisters <strong>of</strong> <strong>Defence</strong> from South Africa and Sweden inCape Town; joint commission between South Africa andthe Sudan in Pretoria; <strong>Defence</strong> Committee meetingbetween South Africa and India in Pretoria; <strong>Defence</strong>Committee meeting between the USA and South Africa inNew York; <strong>Defence</strong> Committee meeting between Ghanaand South Africa in Accra; joint commission onCooperation between Rwanda and South Africa in Kigali;Inaugural <strong>Defence</strong> Committee meeting between Tunisiaand South Africa in Cape Town; Joint Commissionbetween the Netherlands and South Africa in Pretoria;<strong>Defence</strong> Committee meeting between Sweden and SouthAfrica in Pretoria; binational commission betweenGermany and South Africa in Berlin; Joint <strong>Defence</strong>Committee meeting between Mozambique and SouthAfrica in Maputo; Inaugural <strong>Defence</strong> Committee meetingbetween Belgium and South Africa in Belgium; JointPermanent Commission on <strong>Defence</strong> and Security betweenSouth Africa and Botswana in Durban; Joint PermanentCommission on <strong>Defence</strong> and Security between Zimbabweand South Africa in Zimbabwe; <strong>Defence</strong> CommitteeMeeting between South Africa and the People's Republic<strong>of</strong> China (PRC) in Pretoria; Joint Commission onCooperation between South Africa and Mali in Bamako;Figure 2: Map <strong>of</strong> MAAC Representation in South AfricaMILITARY ATTACHÉ AND ADVISOR CORPS IN SOUTH AFRICAAppendix B<strong>Defence</strong> Diplomacyprogramme 1162Resident (41)Algeria; Angola; Argentina; Belgium; Botswana; Brazil; Canada;Chile; Côte d'Ivoire; Egypt; France; Gabon; Germany; Greece;India; Indonesia; Italy; Kenya; Korea; Malawi; Malaysia;Namibia; the Netherlands; Nigeria; Pakistan; PRC (China); Rep<strong>of</strong> Congo; Romania; Russia; Rwanda; Senegal; Spain; Sweden;Tanzania; Ukraine; United Kingdom; USA; Uruguay; Vietnam;Zambia; ZimbabweDEPARTMENT OF DEFENCENon-resident (2)Australia; Israel
<strong>Defence</strong> Committee meeting between South Africa andthe United Kingdom (UK) in Cape Town; binational commissionbetween South Africa and Argentina in Pretoria;Bilateral Training and Assistance Conference betweenSouth Africa and the USA in Pretoria; and a binationalcommission between Pakistan and South Africa inIslamabad.Two service-related bilateral discussions took place duringthe FY<strong>2006</strong>/<strong>07</strong>, namely Air Force-to-Air Force stafftalks between Germany and South Africa in Germany andNavy-to-Navy staff talks between Germany and SouthAfrica in Germany.SADC, INTERSTATE DEFENCEAND SECURITY COMMITTEE(ISDSC) ACTIVITIES AND OTHERMULTINATIONAL INTERACTIONThe DOD participated in 15 SADC, ISDSC and othermultinational interaction activities. The activities werethe following: Standing Aviation Committee meeting inAngola; Operations Subsubcommittee (OSSC) meeting inNamibia; Interstate Politics and Diplomacy Committeemeeting; the 27th session ISDSC meeting held in Namibia,Windhoek; Ministerial Committee <strong>of</strong> the Organ held inWindhoek, Namibia; Logistics Work Group meeting inLuanda, Angola; Standing Maritime Committee meetingheld in Dar es Salaam, Tanzania; Spiritual and MoralServices Work Group Meeting in Gaborone, Botswana;Military Health Service Work Group meeting inLilongwe, Malawi; ISDSC meeting in Windhoek; LegalWork Group meeting in Pretoria; Joint Troika <strong>of</strong> the<strong>Defence</strong> Subcommittee (DSC) and Chiefs <strong>of</strong> Police held inDar es Salaam, Tanzania; Workshop on the evaluation <strong>of</strong>the SADC Implementation <strong>of</strong> the SIPO and OperationSubsubcommittee (OSSC) joint extraordinary meetingheld in Pretoria; Extraordinary meeting <strong>of</strong> OSSC/Policechief representatives in Dar es Salaam, Tanzania; andTelecommunications Work Group meeting in Maputo,Mozambique.DOD PARTICIPATION INFOREIGN VISITSConducting foreign visits is a way in which the DOD canenhance bilateral international relations and obtainknowledge, especially in areas where such knowledge isrequired to perform tasks or investigate more economic,effective and efficient ways to conduct business. DODmembers participated in 897 visits abroad in theFY<strong>2006</strong>/<strong>07</strong>.FOREIGN TRAINING ANDLEARNING OPPORTUNITIESA total number <strong>of</strong> 192 DOD members utilised foreignlearning opportunities <strong>of</strong>fered by friendly defence forces.These opportunities were <strong>of</strong>fered to the DOD to havemembers trained in scarce skills, obtain specific knowledgeand honour bilateral agreements regarding theexchange <strong>of</strong> training opportunities.EQUIPMENT DONATED TOFOREIGN RECIPIENTSThe DOD has transferred equipment to foreign recipients.Impala Aircraft spares to the estimated value <strong>of</strong> Rm1,9were donated to the Zambian Air Force on 06 June <strong>2006</strong>.Flying clothing to the estimated value <strong>of</strong> Rm243,300 wasdonated to the Zambian Air Force on 11 August <strong>2006</strong>.General equipment to the value <strong>of</strong> R15 087 928 was donatedto the Mozambican <strong>Defence</strong> Force on 09 October <strong>2006</strong>.Clothing and general equipment to the value <strong>of</strong> R3 558149 was donated to the Central African Republic on 08February 20<strong>07</strong>.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 163
Foreign Aid AssistanceAppendix Cprogramme 1164Appendix CFOREIGN AID ASSISTANCE TO THE SANDF FOR THEFY<strong>2006</strong>/<strong>07</strong>Reason for Deviation Pending Applicationsfor AssistanceProgramme Donor Country Type <strong>of</strong> Aid Rand Value Intended Use <strong>of</strong> Performance on the Use(Source) (Funds or In Kind)Assistance<strong>of</strong> the AssistanceNoneNoneThe aircrew underwentsimulator training in theUSA to the value <strong>of</strong>Rm2,857. Aircraft sparesC-130 brake assemblies,two sets each for nineaircraft) were supplied.Value unknownC-130 Spares, TechnicalSupport and SimulatorTrainingRm2,857Foreign MilitaryFundingUSAAir <strong>Defence</strong>DEPARTMENT OF DEFENCENoneNoneEngines are currentlywaiting to be fitted on theboatsValuable and constructiveinput with regard todetermining and measuringonboard proceduresR300 000Maritime <strong>Defence</strong>NoneNoneUnknownNoneNoneValuable and constructiveinput with regard todetermining and measuringonboard proceduresEngines to be fitted onharbour patrol boatsdonated to MalawiEvaluation <strong>of</strong> and assistanceto the SA Navywith regard to trainingand onboard procedureson the new frigatesEvaluation <strong>of</strong> and assistanceto the SA Navywith regard to trainingand onboard procedureson the new frigatesFranceUKUnknownDonation in kind <strong>of</strong>three 150hp outboardenginesIn-kind operationalsea training andevaluation forstrategic defencepackagesOperational seatraining and evaluationfor strategicdefence packagesGermany
<strong>Report</strong>ing on Foreign Aid Assistance to the SANDF for the FY<strong>2006</strong>/<strong>07</strong> (Continued)Programme Donor Country Type <strong>of</strong> Aid Rand Value Intended Use <strong>of</strong> Performance on the(Source) (Funds or In Kind)Assistance Use <strong>of</strong> the AssistanceMilitary HealthServiceUSA(US DOD)In kind fundscontrolled by theUSAR586 773Project MASIBAM-BISANE (Programmeto educate and preventthe transmission <strong>of</strong> HIVamong DOD members)A comprehensivedatabase <strong>of</strong> implementedprogrammesis available at theMilitary PsychologicalInstitute. There hasbeen a deviation fromplanned programmes/activitiesUSA(US DOD andHenry JacksonFoundation)UK<strong>Department</strong> forInternationalDevelopment(DIFID)In-kind fundscontrolled by theUSAIn kindR37 233 152R96 233Project PHIDISA(Establish a clinicalresearch capability and,through six clinics,secure the participation<strong>of</strong> 10 000 members onprotocol 1 and 2 800members on protocol 2.)Capacity-building training<strong>of</strong> 100 health carepr<strong>of</strong>essionals to assistwith the ARV roll-outprogramme. In addition,planned for refreshertraining <strong>of</strong> 50 HealthCare Practitioners6 clinics have beenestablishedPHIDISA Protocol 1 =5 162 patientsPHIDISA Protocol 2 =1 491 patients86 members weretrained in theFY<strong>2006</strong>/<strong>07</strong>USAPresident Bush'sEmergency Planfor AIDS Relief(PEPFAR)In-kind fundscontrolled by theUSARm2 804 835Sponsorship <strong>of</strong> antiretroviraldrugsLess donor fundingwas utilised thanplanned and projectedReason for Deviation Pending Applicationsfor AssistanceThere are various reasons forthe deviation, such as a delayin processing by the USOffice for <strong>Defence</strong>Cooperation, managementchange in the SAMHSDirectorate HIV and AIDS,units planning more than theycan execute due to HumanResources shortages6th clinic actual openingdelayed to 1 April 20<strong>07</strong> due tostaffing challenges andNational Health accreditationprocessOngoing projectuntil donorsindicate otherwise5-year project thatcommenced on26 April 2005 andends in 201014 members did not report forthe course for different reasons.Refresher training hasbeen postponed until May20<strong>07</strong> in order to build acapacity <strong>of</strong> mirror trainersfrom within the SAMHS tosustain training after donorfunding has been completedFewer patients than projectedhave come forward for treatmentand three <strong>of</strong> the accreditedanti-retroviral rollout sitesare not fully functional due tostaff shortages and delays ininfrastructure developmentprocesses with the National<strong>Department</strong> <strong>of</strong> Public WorksFurther funding willbe available untilJune 2008NilANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 165
Reason for Deviation Pending Applicationsfor AssistanceForeign Aid AssistanceNilNilNilNilAppendix Cprogramme 1166<strong>Report</strong>ing on Foreign Aid Assistance to the SANDF for the FY<strong>2006</strong>/<strong>07</strong> (Continued)Programme Donor Country Type <strong>of</strong> Aid Rand Value Intended Use <strong>of</strong> Performance on the Use(Source) (Funds or In Kind)Assistance<strong>of</strong> the AssistanceThe system was utilisedto provide pre-missiontraining to SANDF personneldeployed inpeacekeeping missionsThe exercise was conductedsuccessfully andthe USA paid allaccounts as contracted.Donation <strong>of</strong> a mobilepeacekeeping trainingsimulation capability(computers and associatedequipment)Payment <strong>of</strong> vendor andsupplier accounts forExercise AFRICAENDEAVOURRm2 1In kindJoint Support(Joint Training)R605,395FundsUSA AfricanContingencyOperations TrainingAssistance(ACOTA)USAEuropeanCommand(USEUCOM)CommandManagementand InformationSystems DivisionDEPARTMENT OF DEFENCE
FINANCIAL PERFORMANCEREPORT OF THE AUDITCOMMITTEEfor the year ended 31 March 20<strong>07</strong><strong>Report</strong> <strong>of</strong> the Audit CommitteeWe present our report for the financial year ended 31 March 20<strong>07</strong>.Audit Committee Members and Attendance:The Audit Committee consists <strong>of</strong> the members listed hereunder and meets at least 4times per annum as per its approved terms <strong>of</strong> reference. During the current year 5meetings were held.Name <strong>of</strong> External MembersNumber <strong>of</strong> Meetings AttendedDr L KonarMr D S MolapoMr K A RossMr G R Witthöft(Chairperson)5455a nationalpartnershipto build abetter lifefor allDEPARTMENT:DEFENCEName <strong>of</strong> Internal MembersMr T E MotumiLt Gen J L Jansen van RensburgAudit Committee ResponsibilityNumber <strong>of</strong> Meetings AttendedThe Audit Committee reports that it has complied with its responsibilities arising fromsection 38(1)(a) <strong>of</strong> the PFMA and Treasury Regulation 3.1.13.S38(1)(a)S38(1)(a)(ii) <strong>of</strong> the PFMA states the following:(a)The accounting <strong>of</strong>ficer must ensure that the department has andmaintains -(i) effective, efficient and transparent systems <strong>of</strong> financial and riskmanagement and internal control;(ii) a system <strong>of</strong> internal audit under the control and direction <strong>of</strong> anaudit committee complying with and operating in accordance withregulations and instructions prescribed in terms <strong>of</strong> sections 76and 77;(iii) an appropriate procurement and provisioning system which isfair, equitable, transparent, competitive and cost effective.33ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong>167
D EPARTMENT OF D EFENCE, VOTE 21REPORT OF THE AUDIT COMMITTEEfor the year ended 31 March 20<strong>07</strong> (continued)The Audit Committee also reports that it has adopted appropriate formal terms <strong>of</strong> reference as its audit committee charter,has regulated its affairs in compliance with this charter and has discharged all its responsibilities as contained therein.The effectiveness <strong>of</strong> internal controlThe system <strong>of</strong> internal control was not entirely effective for the year under review, as compliance with prescribed policiesand procedures were lacking in certain instances. During the year under review, several instances <strong>of</strong> non-compliancewere reported by internal and external auditors that resulted from a breakdown in the functioning <strong>of</strong> controls.Significant control weaknesses have been reported by the Auditor-General under a qualified opinion and in the managementletter. In certain instance, the weaknesses reported previously have not been fully and satisfactorily addressed.The effect <strong>of</strong> these instances has been included in the annual financial statements and the report <strong>of</strong> the AccountingOfficer.The quality <strong>of</strong> in year management and monthly and quarterly reports submitted in terms <strong>of</strong> the PFMA and theDivision <strong>of</strong> Revenue ActThe Audit Committee is largely satisfied with the content and quality <strong>of</strong> monthly and quarterly reports prepared andissued by the Accounting Officer and the <strong>Department</strong> during the year under review.Internal Audit FunctionThe <strong>Department</strong> <strong>of</strong> <strong>Defence</strong> does have a dedicated Internal Audit Function that is carried out by the Inspector General.While it has carried out various activities in terms <strong>of</strong> the requirements <strong>of</strong> the Public Finance Management Act andTreasury Regulations, the Internal Audit Function is still in need <strong>of</strong> further capacity and enhanced skills to enable it toprovide the required support to management and external audit.<strong>Report</strong> <strong>of</strong> the Audit CommitteeEvaluation <strong>of</strong> Financial StatementsThe Audit Committee has:● reviewed and discussed the audited annual financial statements to be included in the annual report withthe Auditor-General and the Accounting Officer;● reviewed the Auditor-General's management letter and management's response thereto;● reviewed changes in accounting policies and practices; and● reviewed significant adjustments resulting from the audit.The Audit Committee concurs and accepts the Auditor-General's conclusions on the annual financial statements, and is<strong>of</strong> the opinion that the audited annual statements be accepted and read together with the report <strong>of</strong> the Auditor-General.Dr L Konar……………………………………Chairperson <strong>of</strong> the Audit Committee29 August 20<strong>07</strong>……………………………………Date168DEPARTMENT OF DEFENCE
DEPARTMENT OF DEFENCEVOTE 21REPORT OF THEACCOUNTING OFFICERfor the year ended 31 March 20<strong>07</strong><strong>Report</strong> by the Accounting Officer to the Executive Authority and Parliament <strong>of</strong> theRepublic <strong>of</strong> South Africa.1. General review <strong>of</strong> the state <strong>of</strong> financial affairs1.1 Strategic decisions and issues1.1.1 Strategic decisions1.1.1.1 The <strong>Department</strong> <strong>of</strong> <strong>Defence</strong> (DOD) has consciously developed a frameworkthrough which it continuously reviews its positioning and sustainability strategythrough co-operation, in pursuit <strong>of</strong> both the DOD as well as governmentwide destiny, defining priorities and programmes premised on the CoregrowthOne-force concept.a nationalpartnershipto build abetter lifefor allDEPARTMENT:DEFENCE1.1.1.2 To ensure alignment between the DOD Planning Processes and that <strong>of</strong>Government, the DOD decided that the <strong>Defence</strong> Strategy will consist <strong>of</strong> theWhite Paper on <strong>Defence</strong> (1996), the <strong>Defence</strong> Review (1998), and the <strong>Defence</strong>Update (<strong>2006</strong>), respectively, to execute its Constitutional obligations. This willensure alignment with the Ten-Year-Review (2014) <strong>of</strong> Government andGovernment's annual strategic direction amendments through the CabinetMakgotla minutes and Government's Programme <strong>of</strong> Action. The <strong>Defence</strong>Review Update <strong>2006</strong> incorporated strategic decisions taken in 2004, whichincluded aspects such as the desired outcome <strong>of</strong> determining a credible ForceDesign and Structure.1.1.1.3 The DOD continued to support the peace and security objectives <strong>of</strong> the SouthAfrican Government, as expressed in the Medium Term Strategic Framework(MTSF) and the annual Government Programme <strong>of</strong> Action through theemployment <strong>of</strong> its military capabilities for Peace Support Operations andGeneral Military Assistance Missions.1.1.1.4 The <strong>Department</strong> conducted a high-level strategic analysis with respect to contributiontowards Accelerated and Shared Growth Initiative-South Africa(ASGISA) as well as its potential future contribution. The analysis comprisesthe functional areas <strong>of</strong> human resources, defence acquisition, information andcommunication technology, military health service support, as well as the collateralcapabilities <strong>of</strong> the SANDF.1.1.1.5 To ensure that the DOD has a viable and comprehensive systemic performanceANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong>169
D EPARTMENT OF D EFENCE, VOTE 21REPORT OF THE ACCOUNTING OFFICERfor the year ended 31 March 20<strong>07</strong> (continued)<strong>Report</strong> <strong>of</strong> the Accounting Officermanagement tool, the DOD has piloted theBalanced Score Card project through the SANavy and the Financial Management Divisionand will in the Financial Year 20<strong>07</strong>/08 train theDOD's top management and there after cascadethe implementation there<strong>of</strong> to other Services andDivisions in the following years.1.1.2 Strategic issues1.1.2.1 The DOD annually monitors its internal andexternal environment as part <strong>of</strong> its GovernanceProcess to ensure alignment and synchronisationwith Government's strategic intent as reflectedin the Cabinet Makgotla minutes andGovernment's Programme <strong>of</strong> Action. Thisallows the DOD to detect changes that have asignificant impact on the achievement <strong>of</strong> theDOD's vision, mission, strategic objectives andplan.1.1.2.2 The DOD identified thirteen strategic issues during2005. The nature and extent <strong>of</strong> these issuescan only be resolved in the medium to long term.1.1.2.3 The following issues, which form part <strong>of</strong> financialmatters, were addressed during the reportingperiod:● Project LOQUACIOUS, with the aim to aligncore and support processes with the PFMAimperatives, was registered and initiated toestablish Business Process Managementwithin the DOD and was adopted in ChapterOne <strong>of</strong> the <strong>Defence</strong> Update <strong>2006</strong>. Theseprocesses will ensure that the DOD's businessprocesses are aligned to its strategy andpolicy framework, that resources are alignedto its business processes thereby promotingthe effective, efficient and economical utilisation<strong>of</strong> resources. This will allow the DOD tocope with the external and internal changeimperatives.● The s<strong>of</strong>tware solution to facilitate all aspects<strong>of</strong> Enterprise Architecture (includingBusiness Architecture) was acquired inMarch 20<strong>07</strong> and is in process <strong>of</strong> implementation.It is anticipated that significant progresswill be made with the alignment betweenprocesses and the regulatory framework duringthe forthcoming financial year.● Progress continues to be made with thetransformation and revitalisation <strong>of</strong> theReserve Force so that it can fulfil its primary●●●●●●role <strong>of</strong> providing the majority <strong>of</strong> the conventionallandward capability <strong>of</strong> the SANDF,whilst at the same time supplementing thepeace support missions conducted by theRegular Force. Although the Reserves arecurrently rejuvenated through the MilitarySkills Development System (MSDS), alternativesystems are being investigated to complementthe rejuvenation <strong>of</strong> the Reserves.The DOD is consulting with other governmentdepartments and defence related roleplayers to formulate and implement a<strong>Defence</strong> Related Industry Strategy to ensurean economically viable, and technologicallyappropriate defence related industry for theRSA. The to be established <strong>Defence</strong>Evaluation and Research Institute (DERI)will ensure that leading edge technologydirects the defence related industry.The DOD prioritised the requirement for therepair and maintenance <strong>of</strong> facilities and allocatedthe available resources to these priorities.Additionally the DOD is in liaison withNational <strong>Department</strong> <strong>of</strong> Public Works(NDPW) to support this focused effort and isin process <strong>of</strong> creating an in-house capabilityin the form <strong>of</strong> a Works Regiment to supportthe repair and maintenance <strong>of</strong> infrastructure.The DOD has completed its policy update onthe White Paper on <strong>Defence</strong> and the <strong>Defence</strong>Review in the form <strong>of</strong> the <strong>Defence</strong> Update<strong>2006</strong>. The update addresses the alignment <strong>of</strong>policy aspects and is in the process <strong>of</strong> beingprepared for Cabinet approval. The updatealso addresses the issue <strong>of</strong> Force Design andStructure and the related funding needs forthe Medium Term Expenditure Framework.A <strong>Defence</strong> Enterprise Information System(DEIS) Master Plan has been developed andapproved by the DOD. The first phase <strong>of</strong>implementation is currently being initiated toensure an integrated Information andCommunication Technology (ICT) solutionfor the <strong>Defence</strong> function.An anti-fraud strategy (Fraud PreventionPlan) has been developed to protect DODassets and is in the process <strong>of</strong> being implemented.The rightsizing <strong>of</strong> the DOD is in processthrough the implementation <strong>of</strong> HR Strategy170DEPARTMENT OF DEFENCE
D EPARTMENT OF D EFENCE, VOTE 21REPORT OF THE ACCOUNTING OFFICERfor the year ended 31 March 20<strong>07</strong> (continued)2010 and the continuous implementing <strong>of</strong>measures to optimise its support structures.1.1.3 Significant events1.1.3.1 Restructuring <strong>of</strong> the DOD. The restructuringefforts resulted in the development and adoption<strong>of</strong> new high-level processes according towhich the DOD would conduct its future business.To this end, the constitutions <strong>of</strong> all relevantgoverning bodies <strong>of</strong> the DOD were overhauledand their agenda frameworks were developed tosupport the high-level process outcomes.1.1.3.2 Strategic <strong>Defence</strong> Packages. As part <strong>of</strong> therecapitalisation <strong>of</strong> the DOD, three frigates andone submarine were commissioned for the SANavy to give it, for the first time in twenty years,a blue water surface capability, and sixteenHawk trainer aircraft delivered to 85 CombatFlying School for the SA Air Force.1.1.3.3 Military Skills Development System (MSDS)and Youth Foundation Training Programme(YFTP). The MSDS was introduced in 2003 andhas led to 12 490 young people entering theSANDF since its introduction; with the fourthintake, <strong>2006</strong>, peaking at 4 733 members. Thisinfusion <strong>of</strong> youth has significantly improved therejuvenation challenge in the SANDF's juniorranks where 40 % <strong>of</strong> all Regular Force privatescurrently fall within the required age bracket <strong>of</strong>18 - 24 years. Through the YFTP and MSDS programmes,the DOD is already contributingtowards skills development and job creation,being amongst the objectives <strong>of</strong> ASGISA thatshould lead to the halving <strong>of</strong> poverty and unemploymentby 2014.1.1.3.4 Revenue Management. The FinancialManagement System (FMS) has been enhancedto improve the accounting <strong>of</strong> revenue collectedand supporting management information. Theinteraction between the financial, salary andlogistics systems will be enhanced further topromote interaction and better revenue management.1.1.3.5 In the peace support operations the followingevents are worth mentioning:● Disarmament, Demobilisation andReintegration in the Democratic Republic<strong>of</strong> the Congo (DRC). An amount <strong>of</strong>Rm38,750 was administered by the DOD onbehalf <strong>of</strong> the Royal Kingdom <strong>of</strong> the●Netherlands for the refurbishment <strong>of</strong> the twointegration centres in the Eastern DRC. Theproject was successfully completed and theintegration centres were handed over to theDRC government in June <strong>2006</strong>.African Renaissance Fund (ARF). The ARFgranted the DOD Rm7,5 for the initiatives inthe DRC. These funds were utilised for therefurbishment <strong>of</strong> equipment at the aforementionedintegration centres. This project wasalso successfully accomplished.1.2 <strong>Defence</strong> Vote: Rm23 830,105 (AppropriationAct <strong>2006</strong> (Act No 7 <strong>of</strong> <strong>2006</strong>)).1.2.1 The DOD <strong>2006</strong>/20<strong>07</strong> budget was compiled on acash basis per programme and amounted toRm23 830,105. The approved budget coveredthe period 1 April <strong>2006</strong> to 31 March 20<strong>07</strong> andincluded all entities under control <strong>of</strong> theMinister <strong>of</strong> <strong>Defence</strong>. The original budget wasapproved through legislative action and specificallythe Appropriation Act, <strong>2006</strong> (Act No 7 <strong>of</strong><strong>2006</strong>). The original budget objectives and policiesper main division <strong>of</strong> the Vote were publishedin the <strong>2006</strong>/20<strong>07</strong> Strategic Business Planand the performance against objectives arereported on in detail in Part 3 <strong>of</strong> the <strong>Annual</strong><strong>Report</strong>.1.2.2 The <strong>2006</strong>/20<strong>07</strong> <strong>Defence</strong> Vote increased byRm1 242,401 (5,5%) from the 2005 MTEF allocationfor the same year and increased withRm1 159,623 (5,12%) from the previous financialyear. <strong>Defence</strong>'s Vote amounted to 1,36% <strong>of</strong> SouthAfrica's gross domestic product or 5,06% <strong>of</strong> totalgovernment expenditure. These percentageslargely correspond with the 2005/<strong>2006</strong> <strong>Defence</strong>Vote. The relatively large MTEF-to-MTEFincrease in the overall <strong>Defence</strong> budget is mainlydue to additional allocations for military skillsdevelopment and defence modernisation as wellas the devolvement <strong>of</strong> property managementportfolios from the NDPW to the nationaldepartments. The relatively low year-on-yearincrease in the overall <strong>Defence</strong> budget is mainlydue to the decrease in the provision for theStrategic <strong>Defence</strong> Procurement Programmewhich is nearing completion.1.2.3 The following additional allocations were majorcontributories to the increase in the <strong>2006</strong>/20<strong>07</strong><strong>Defence</strong> Vote:ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 171
D EPARTMENT OF D EFENCE, VOTE 21REPORT OF THE ACCOUNTING OFFICERfor the year ended 31 March 20<strong>07</strong> (continued)<strong>Report</strong> <strong>of</strong> the Accounting Officer● Property Management - Rm999● Procurement <strong>of</strong> a strategic - Rm370airlift capability● Maintenance <strong>of</strong> operational - Rm150vehicles● <strong>Defence</strong> intelligence systems - Rm121● Military skills development - Rm100system● Armscor (VAT adjustment) - Rm59● <strong>Defence</strong> information and - Rm50communication systems● <strong>Defence</strong> anti-retroviral - Rm26roll-out programme1.2.4 The Special <strong>Defence</strong> Account (34,51%) andLandward <strong>Defence</strong> (17,02%) remain the twolargest programmes within the <strong>Defence</strong> Vote.The year-on-year increase <strong>of</strong> 14,5% in theAdministration programme was mainly due tothe increased provision for the DOD's propertymanagement portfolio as received from the<strong>Department</strong> <strong>of</strong> Public Works. The other largeyear-on-year increase <strong>of</strong> 15,5% in the Landward<strong>Defence</strong> programme was mainly due to theadditional allocations for the maintenance <strong>of</strong>operational vehicles and the Military SkillsDevelopment System. The continued strengthening<strong>of</strong> the SA Rand against other major currencieshas resulted in a further decrease <strong>of</strong> theprojected cost <strong>of</strong> the overall Strategic <strong>Defence</strong>Procurement Programme from Rb52,944(2003/2004) to Rb48,744 (2004/2005) toRb45,615 (2005/<strong>2006</strong>) to an estimated Rb44,793for the reporting period.1.2.5 Exploring the <strong>2006</strong>/20<strong>07</strong> budget from an economicclassification perspective, Transfers andSubsidies (36,24%) and Compensation <strong>of</strong>Employees (37,67%) combined represents73,91% <strong>of</strong> the Vote leaving an available 26,09%for the operating <strong>of</strong> the <strong>Department</strong>. SignificantStandard Chart <strong>of</strong> Accounts classification providedfor were:● Maintenance, repair - Rm1 853and running costs● Inventory - Rm1 225● Computer services - Rm 671● Travel and subsistence - Rm 654● Operating leases - Rm 200● Consultants, contract- - Rm 153ors and special services1.3 <strong>Defence</strong> Adjustment Vote: Rm72,799(Adjustment Appropriation Act, <strong>2006</strong>).1.3.1 The <strong>Defence</strong> Vote was increased by Rm72,799through the Adjustment Vote from self financingexpenditure resulting from the sale <strong>of</strong> equipmentduring the previous financial year originallyprocured through:● The General <strong>Defence</strong> Account - Rm16,621● The Special <strong>Defence</strong> Account - Rm56,1781.3.2 No claims were submitted for roll-over expenditurefrom the financial year 2005/<strong>2006</strong> as therewas no under spending for that particular financialyear.1.3.3 Unforeseeable requests from the United Nationsand the African Union for participation in peacesupport operations in Africa were funded by theDOD through the reprioritising <strong>of</strong> activitieswithin the department's budget allocation.These services included the following:● OP CORDITE (Sudan). The African Union'srequest to increase the number <strong>of</strong> deployedpersonnel: Rm35.● OP MISTRAL (DRC). The United Nation'srequest to redeploy aircraft from Burundi tothe DRC: Rm27.● OP TRITON IV (Comores). An AfricanUnion's request to deploy additional personnelfor the elections: Rm12.● OP CURRICULUM (Burundi VIP protection).Changing the deployment from aUnited Nations mission to an African Unionmission: Rm12.1.4 Adjusted <strong>Defence</strong> Vote : Rm23 902,9041.5 Expenditure1.5.1 The total expenditure against the Adjusted Voteamounted to Rm23 817,584 resulting in an underexpenditure <strong>of</strong> Rm85,320. This under expenditureis primarily as a result <strong>of</strong>:● Under spending <strong>of</strong> the PropertyManagement Portfolio funds as devolvedfrom the National <strong>Department</strong> <strong>of</strong> PublicWorks - Rm58,083● Committed capital works funds not spentand to be claimed as a roll-over in the financialyear 20<strong>07</strong>/2008 - Rm24,924● Unspent transfer payments - Rm0,512172DEPARTMENT OF DEFENCE
D EPARTMENT OF D EFENCE, VOTE 21REPORT OF THE ACCOUNTING OFFICERfor the year ended 31 March 20<strong>07</strong> (continued)1.6 Spending trend<strong>Defence</strong> has again achieved an immaterial underexpenditure <strong>of</strong> Rm85,320 for unavoidable reasonsas indicated in par 1.5.1 above. The expenditurefor the reporting year in comparison withthe last two years is indicated below:<strong>of</strong> expenditure on the Mobility Exit Mechanism.1.7.2.4 From Programme 2: Landward <strong>Defence</strong>;Programme 4: Maritime <strong>Defence</strong> andProgramme 7: Joint Support to Programme 1:Administration; Programme 3: Air <strong>Defence</strong>;Programme 5: Military Health Support;Financial year 2004/20052005/<strong>2006</strong> <strong>2006</strong>/20<strong>07</strong>Vote RmExpenditure RmAmount surrendered RmAmount surrendered as a percentage <strong>of</strong> Vote19 411,81919 410,8121,0<strong>07</strong>0,01%22 670,48222 664,8465,6360,02%23 902,90423 817,58485,3200,36%1.7 Virements. The following virements wereapproved during the reporting period.1.7.1 Approved by the National Treasury.1.7.1.1 From the Economic Classification: Goods andServices to the Economic Classification:Compensation <strong>of</strong> Employees, the amount <strong>of</strong>Rm146,000 to facilitate the increase in the compensation<strong>of</strong> employees resulting from:● Mobility Exit Mechanism● Rejuvenation <strong>of</strong> the Force● Military Aviation Career Incentive Pay andTechnical Career Incentive Pay● Internal Deployments● Peace Support Operations1.7.2 Approved by the Accounting Officer.1.7.2.1 From Programme 2: Landward <strong>Defence</strong> toProgramme 7: Joint Support. Rm11,149 to correctlyallocate the expenditure <strong>of</strong> the HumanResource Support Satellites after the transformation<strong>of</strong> the organisational structure <strong>of</strong> the<strong>Department</strong>.1.7.2.2 From the Economic Classification: Goods andServices to the Economic Classification:Compensation to Employees within Programme8: Force Employment. Rm110,000 to correctlyallocate the payment <strong>of</strong> foreign allowances forpeace support operations.1.7.2.3 From the Economic Classification:Compensation <strong>of</strong> Employees to the EconomicClassification: Transfers to Households.Rm191,374 to provide for the correct allocationProgramme 6: <strong>Defence</strong> Intelligence andProgramme 8: Force Employment, to cover interalia the shortfall in the expenditure on peacesupport operations, the increase in SITA tariffs,the short payment <strong>of</strong> the Regional ServicesCouncil levies and other smaller adjustments.2. Services rendered by <strong>Defence</strong>2.1 The services rendered by <strong>Defence</strong> are detailed inChapter 2 <strong>of</strong> the <strong>Annual</strong> <strong>Report</strong>.2.2 Tariff policy2.2.1 DOD tariff policy consists <strong>of</strong> the following elements:● Tariffs instituted by law.● Tariffs prescribed by a national departmentthat are applicable to all spheres <strong>of</strong> government.● Tariffs unique to the DOD as determined bythe tariff owner and where the tariff structurewas approved by the National Treasury.2.3 Free servicesThe following free services were provided by theDOD during the reporting period:2.3.1 Fire fighting services provided by the SA AirForce to the total amount <strong>of</strong> Rm0,021.2.3.2 Harbour services provided by the SA Navy tovarious vessels to the total amount <strong>of</strong> Rm0,092.2.3.3 Technical training provided by the Service Corpsin assistance to the Mozambique SkillsDevelopment Project to the amount <strong>of</strong> Rm2,292.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 173
D EPARTMENT OF D EFENCE, VOTE 21REPORT OF THE ACCOUNTING OFFICERfor the year ended 31 March 20<strong>07</strong> (continued)<strong>Report</strong> <strong>of</strong> the Accounting Officer2.4 Inventory. The DOD is unable to disclose theaccurate monetary value <strong>of</strong> its inventory atyear-end because accurate prices are not carriedin current DOD logistic systems. Valuesfor inventory, reported in previous periods,were also materially inaccurate to the extentthat it should be ignored.3. Capacity constraints3.1 Operationalisation <strong>of</strong> the <strong>Defence</strong> Update<strong>2006</strong>. Since the promulgation <strong>of</strong> the <strong>Defence</strong>White Paper on <strong>Defence</strong> 1996 and the <strong>Defence</strong>Review 1998 cognisance was taken <strong>of</strong> the mismatchbetween the required funding <strong>of</strong> theforce design and actual allocation <strong>of</strong> funds to<strong>Defence</strong>. In an effort to formulate a forcedesign that represents the absolute minimumlevel <strong>of</strong> <strong>Defence</strong>, the DOD launched a processin updating the <strong>Defence</strong> White Paper/Review.The <strong>Defence</strong> Update <strong>2006</strong> culminated in a proposedforce design that still requires funding inexcess <strong>of</strong> 30% <strong>of</strong> present <strong>Defence</strong> funding levels.3.2 The successful execution <strong>of</strong> the DOD's missionis dependent on the SANDF being a technologicallyadvanced force. This requirement has ledto significant investment by Government inequipping the SANDF with technology thatrequires advanced, scarce skills competencies.The DOD's scarce skills competencies are howevereroded mainly due to market forces beyondits control.3.3 The DOD is facing the challenge <strong>of</strong> retainingscarce skills due to competitive salary packagesthat the private sector labour market <strong>of</strong>fers. Thischallenge is to the extent that, during the reportingperiod, the department lost 988 memberscomprising <strong>of</strong> pr<strong>of</strong>essional and technical personnel,pr<strong>of</strong>essional engineers, military healthworkers, Special Forces operators, gunners andanti-air defence operators.3.4 To mitigate this unacceptable outflow <strong>of</strong> skills,the DOD developed various incentive schemesfor a number <strong>of</strong> scarce skills groups. The financialimplication <strong>of</strong> this is that a substantial portion<strong>of</strong> funds, which were allocated for operatingcosts, were utilised to fund these incentives.The amount involved was Rm250,657 which ledto the erosion <strong>of</strong> the operating budget.3.5 Furthermore the DOD still faces a challenge tocapacitate the <strong>Defence</strong> Procurement andAcquisition function. Efforts were made in theprevious financial year to investigate the effectiveness<strong>of</strong> all affected structures. Althoughprogress has been made, some functions remainincapacitated and some challenges still need tobe resolved. The initiative to capacitate the commanderswith appropriate delegations is startingto show positive results. The DOD is in process<strong>of</strong> training all commanders on the PFMA, supplychain management processes and the relevantpolicies. The codification function has beenestablished within the logistic environment andis beginning to stabilise. Delays are still experiencedwith the generation <strong>of</strong> suppliers' codes asa result <strong>of</strong> users not providing correct informationtimeously. The latter is also being addressedthrough continuous training. The DOD andArmscor are engaging in a new process to realignthe agency with the new ministerial guidelines,which may result in its classification beingreviewed. This process may result in furtherenhancement <strong>of</strong> the capacity <strong>of</strong> the DOD as awhole.3.6 Impact on planned programmes3.6.1 The above-mentioned capacity constraints had anegative impact on the delivery <strong>of</strong> the programmesthat are planned to realise the CoregrowthOne-force concept as well as ensuringadequate force readiness and preparation. Thereis a critical capacity constraint betweenresources and the operational mandate. Thistranslates into the consumption <strong>of</strong> all reservecapacity at the cost <strong>of</strong> sustainability <strong>of</strong> <strong>Defence</strong>capabilities and the subsequent ability to deploysoldiers in support <strong>of</strong> Peace Missions.3.6.2 Ins<strong>of</strong>ar as the human resource constraint is concerned,this arises primarily from using the operatingbudget for incentive schemes to curb skillsmigration. As such, the operating budget isinsufficient and this adversely affects the variousprogrammes <strong>of</strong> the DOD, including provision <strong>of</strong>training facilities required for future MilitarySkills Development System intakes <strong>of</strong> 10,000members per year.3.6.3 Ins<strong>of</strong>ar as the procurement function goes, theimpact <strong>of</strong> not having an effective codificationand supplier registration system will lead toineffective asset management. This will in turntranslate to barriers for suppliers trying to enter174DEPARTMENT OF DEFENCE
D EPARTMENT OF D EFENCE, VOTE 21REPORT OF THE ACCOUNTING OFFICERfor the year ended 31 March 20<strong>07</strong> (continued)the DOD procurement system.4. Utilisation <strong>of</strong> donor funding4.1 The DOD did not receive any donations duringthe reporting period that had to be directlyadministered by the <strong>Department</strong>.4.2 The DOD received reimbursements from theUnited Nations for the DOD's participation inpeace support operations, in accordance withthe Memoranda <strong>of</strong> Understanding, amountingto Rm272,165. This was deposited into theNational Revenue fund and recognised in Note2.3 <strong>of</strong> the financial statements under<strong>Department</strong>al Revenue (Transactions inFinancial Assets and Liabilities).5. Public entitiesCorporation <strong>of</strong> South Africa (Armscor) arereported as public entities under the ownershipcontrol <strong>of</strong> the Minister <strong>of</strong> <strong>Defence</strong> in Annexure2B to the financial statements. A Board <strong>of</strong>Directors reporting to the Minister <strong>of</strong> <strong>Defence</strong>,controls each public entity. The transfer paymentto Armscor is included in the table fortransfer payments (par 6 <strong>of</strong> this report) and notransfer payment was made to the Castle ControlBoard. The transfer <strong>of</strong> the Castle <strong>of</strong> Good Hopeto the <strong>Department</strong> <strong>of</strong> Arts and Culture is inprogress.6. Organisations to whom transfer paymentshave been madeTransfer payments were made to the followingorganisations :The Castle Control Board and the ArmamentsTransfereeReason forPaymentAccountabilityArrangementsVoted<strong>2006</strong>/<strong>07</strong>RmExpenditure<strong>2006</strong>/<strong>07</strong>RmArmaments Corporation<strong>of</strong> South Africa Ltd(Armscor)Permanent ForceMedical ContinuationFund (Medical Fund B)St Johns AmbulanceBrigadeTo subsidise Armscor intheir mission to meet theacquisition, maintenanceand disposal needs <strong>of</strong>the DOD and otherclients in terms <strong>of</strong><strong>Defence</strong> matériel, relatedproducts and services.To subsidise the MedicalFund B for PermanentForce members whoretired before 1964.To provide accreditationfor training <strong>of</strong> <strong>Defence</strong>members and make theirmembers and equipmentavailable to be called-upby the SA Military HealthService during times <strong>of</strong>national disaster andemergency.Armscor is a Schedule 2 Public Entitydirected by a Board <strong>of</strong> Directorsappointed by the Minister <strong>of</strong> <strong>Defence</strong>.Armscor annually submits a businessplan and an estimate <strong>of</strong> expenditure,which are motivated by the GeneralManager Finance and Administration<strong>of</strong> Armscor, to the <strong>Department</strong>'sProgramme and Budget EvaluationCommittee before such funds areincluded in the <strong>Department</strong>al Vote.Audited financial statements for thefinancial year 2005/06 were submittedaccording to payment conditions.Audited financial statements for thefinancial year 2005/06 were submittedaccording to payment conditions.Audited financial statements for thefinancial year 2005/06 were submittedaccording to payment conditions.396,2860,2750,050396,2860,2120,040ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 175
D EPARTMENT OF D EFENCE, VOTE 21REPORT OF THE ACCOUNTING OFFICERfor the year ended 31 March 20<strong>07</strong> (continued)TransfereeReason forPaymentAccountabilityArrangementsVoted<strong>2006</strong>/<strong>07</strong>RmExpenditure<strong>2006</strong>/<strong>07</strong>RmReserve Force CouncilTo subsidise the ReserveForce Council in theiraim to secure communityand private sector supportfor the ReserveForces and to maintain asound relationship andcommunication betweenthe Reserve forces, theMinister <strong>of</strong> <strong>Defence</strong> andthe SA National <strong>Defence</strong>Force.The Accounting Officer <strong>of</strong> the<strong>Department</strong> is represented in theNational Council. The Council annuallysubmits a business plan and estimate<strong>of</strong> expenditure before such fundsare included in the <strong>Department</strong>al Vote.Audited financial statements for thefinancial year 2005/06 were submittedaccording to payment conditions.2,7262,500<strong>Report</strong> <strong>of</strong> the Accounting OfficerSafety and SecuritySector Education andTraining Authority (SAS-SETA)Special <strong>Defence</strong>AccountRegional ServicesCouncilsHousehold EmployerSocial BenefitsTOTALTo subsidise the administrativeexpenditure <strong>of</strong>the SASSETA, whichacts as the SectorEducational and TrainingAuthority (SETA) for<strong>Defence</strong> in terms <strong>of</strong> theSkills Development Act,1998 (Act No 97 <strong>of</strong> 1998).To acquire, procure anddevelop armament andtechnology.To honour the<strong>Department</strong>'s obligationto Regional ServicesCouncils in terms <strong>of</strong> theRegional ServicesCouncils Act, 1985(Act No 109 <strong>of</strong> 1985).To cover the cost <strong>of</strong>employment benefits dueto <strong>Defence</strong> membersbeing separated from thedepartment through theMobility Exit Mechanism.Audited financial statements for thefinancial year 2005/06 were submittedaccording to payment conditions.Under control <strong>of</strong> the Accounting Officer<strong>of</strong> the <strong>Department</strong> <strong>of</strong> <strong>Defence</strong>.Financial statements attached to thisreport.None. Payment takes place in terms<strong>of</strong> the relevant tariffs laid down byeach Regional Services Council. Asannounced by the Minister <strong>of</strong> Financethese transfers were stopped on 30June <strong>2006</strong>.Approved by the Minister <strong>of</strong> <strong>Defence</strong>.7,9338 280,7383,967191,3748 883,3497,7208 280,7383,967191,3748 882,8377. Public private partnerships (PPPs)7.1 No formal Public Private Partnerships (PPPs)have been concluded in the DOD. The followingprojects are registered with the NationalTreasury as possible PPP's:7.1.1 SA Air Force. The DOD is in the process <strong>of</strong>advertising for the appointment <strong>of</strong> a transactionadvisor to conduct a feasibility study withrespect to the viability for commercial co-use <strong>of</strong>the Air Force Base Ysterplaat in Cape Town.7.1.2 SA Navy. A project was launched for a PPP toestablish a Sea Safety Training Centre inSimon'sTown and a preferred bidder was identifiedto conclude a feasibility study.7.1.3 SA Military Health Services. A feasibility studyhas been completed to create a PPP with privatehealth care providers for the provision <strong>of</strong> healthservices for serving and retired <strong>of</strong>ficials <strong>of</strong> theDOD in eight regional centres in South Africa.The request for proposal is awaiting approval bythe Secretary for <strong>Defence</strong> and the National176DEPARTMENT OF DEFENCE
D EPARTMENT OF D EFENCE, VOTE 21REPORT OF THE ACCOUNTING OFFICERfor the year ended 31 March 20<strong>07</strong> (continued)Treasury for the establishment <strong>of</strong> the PPP.8. Corporate Governance Arrangements (IFASStandard)8.1 Standard <strong>of</strong> Behaviour8.1.1 Leadership. Senior commanders and managers<strong>of</strong> the <strong>Department</strong> exercise their leadership inaccordance with the constitutional principles <strong>of</strong>transparency, good governance and accountability.Confidentiality is preserved in certain circumstanceswhen it is in the national interest todo so.8.1.2 Codes <strong>of</strong> Conduct. Codes <strong>of</strong> conduct have beenformally adopted for military members andpublic employees. All <strong>of</strong>ficials subscribed to thestandards contained in these codes by signature.Disciplinary procedures are applied for non-conformance.8.1.3 Conflict <strong>of</strong> Interest. Senior managers declaretheir economic interest annually. Members <strong>of</strong>management bodies dealing with procurementand acquisition are required to declare potentialconflicts and withdraw before commencement<strong>of</strong> meetings. All <strong>of</strong>ficials are required to declaregifts in registers open to scrutiny.8.2 <strong>Department</strong>al Structures and Processes8.2.1 Compliance. Applicable statutes and regulationsare complied with by the promulgation <strong>of</strong>ministerial directives and departmental instructions/ordersand publications that are legallyenforceable.8.2.2 Statutory Accountability. The Secretary for<strong>Defence</strong> accounts to Parliament for the management<strong>of</strong> the implementation <strong>of</strong> the <strong>Defence</strong> Vote.All departmental budget authorities are held toaccount by the Secretary for the economic, efficientand effective utilisation <strong>of</strong> resource toachieve the objects <strong>of</strong> their respective programmes.8.2.3 Communication with Stakeholders. <strong>Defence</strong><strong>of</strong>ficials appear regularly before relevantParliamentary committees on instruction <strong>of</strong> theMinister to explain departmental plans, programmesand budgets (including resource managementpolicies) as well as account for performance.All media enquiries are answeredthrough a corporate communication service.8.2.4 Roles and Responsibilities. The Minister <strong>of</strong>8.3 Control<strong>Defence</strong> directs and controls the <strong>Defence</strong> functionsthrough the Council <strong>of</strong> <strong>Defence</strong>. TheSecretary for <strong>Defence</strong> and the Chief <strong>of</strong> theNational <strong>Defence</strong> Force implement ministerialdirectives through the <strong>Defence</strong> Staff Council.Top level budget authorities are members <strong>of</strong> the<strong>Defence</strong> Staff Council. Subordinate boards andcommittees serve this Council. A formal strategicdirection and control process is followed thatsets the agenda for these councils, boards andcommittees.8.3.1 Risk Management. <strong>Defence</strong>'s risk managementstrategy, compiled by the Chief Financial Officeron behalf <strong>of</strong> the Secretary in his capacity as theAccounting Officer <strong>of</strong> the <strong>Department</strong>, is aimedat setting and formalising the <strong>Department</strong>'sapproach to risk management and also quantifiesand describes <strong>Defence</strong>'s risk appetite, takinginto account the materiality framework andfraud prevention plan that supports this strategy.The strategy <strong>of</strong> <strong>Defence</strong> in terms <strong>of</strong> risk managementis as follows:● Risk management forms an integral part <strong>of</strong>the total management process and is theresponsibility <strong>of</strong> each <strong>of</strong>ficial in the<strong>Department</strong>.● All pertinent risks are identified, prioritisedand action plans are subsequently developedto mitigate or minimise the materiality <strong>of</strong>these risks to an acceptable level, in line withthe risk management process, as indicated inthe policy on risk management.● Risks are identified as they relate to thestrategic objectives <strong>of</strong> <strong>Defence</strong> or the controlsystems that exist for a particular resource.All identified risks are categorised in terms<strong>of</strong> the control system elements namely policy,capacity, information system and accountabilityand action plans developed are thenaimed at addressing these elements.All Services and Divisions must compile riskmanagement plans as part <strong>of</strong> thatService/Division strategic plan, in line with theAccounting Officer's guidelines and quarterlyreports must be submitted on the progress on theaction plans developed to mitigate these risks.8.3.2 Fraud Investigation and Prevention. The AntifraudStrategy <strong>of</strong> the DOD is based on threeANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 177
D EPARTMENT OF D EFENCE, VOTE 21REPORT OF THE ACCOUNTING OFFICERfor the year ended 31 March 20<strong>07</strong> (continued)<strong>Report</strong> <strong>of</strong> the Accounting Officermain outcomes <strong>of</strong> the National Anti-corruptionSummit <strong>of</strong> 1999, namely preventing and combatingcorruption, building integrity as well asraising awareness. In order to achieve thedesired result, it was important to introduce astrategy to advise, direct and guide members <strong>of</strong>the DOD on the approach to the seriousness <strong>of</strong>fraud. <strong>Defence</strong> has an ongoing programme tocreate a culture <strong>of</strong> honesty, openness and assistanceby eliminating opportunities in order toraise fraud awareness and to promote the detection<strong>of</strong> fraud. The DOD's fraud prevention planfits into the context <strong>of</strong> global and national measures.The Directorate Anti-corruption and Antifraudis the main role player in combating fraudand corruption within the DOD. To combatfraud requires an effective fraud preventionplan. Although detection and investigation is areactive process, there are pro-active spin-<strong>of</strong>fs inthe sense that investigations have a major deterrenteffect on potential fraudsters.Recommendations regarding corrective measures,as well as preventative systems, processesand policies are the main product <strong>of</strong> investigations.Successful investigations result in legalaction - whether criminal, civil or disciplinary.During the reporting period investigators <strong>of</strong> theDirectorate Anti-corruption and Anti-fraudreceived training from the Scorpions with specificreference to the conducting <strong>of</strong> forensicinvestigations, the various stages <strong>of</strong> an investigation,the writing <strong>of</strong> reports and how to investigatean incident effectively. A number <strong>of</strong> <strong>of</strong>ficialsalso attended a course in forensic investigationsand fraud investigations at the University<strong>of</strong> Pretoria.8.3.3 Internal Audit. Internal Audit comprised out <strong>of</strong>both compliance and performance audit,reviewing aspects <strong>of</strong> economy, efficiency andeffectiveness. The Inspector General followed arisk-based approach over three years, in accordancewith the Rolling Three year Internal AuditStrategy. The <strong>Defence</strong> Inspectorate was externallyreviewed as a requirement <strong>of</strong> the TreasuryRegulations. This provided a holistic overview<strong>of</strong> the compliance by <strong>Defence</strong> Inspectorate to theInternational Standards for the Pr<strong>of</strong>essionalPractice <strong>of</strong> Internal Auditing. The externalreview highlighted non-compliance which theDivision is in the process <strong>of</strong> being rectified.Management's action addressed the appointment<strong>of</strong> a quality manager, to have an assessmentplan and annual assessment scheduleavailable. A training manager was appointed toaddress Internal Audit training to ensure internalauditors stay current in the latest developments<strong>of</strong> the internal audit pr<strong>of</strong>ession. Skillstraining were included in the operational planfor the next financial year. The outcome <strong>of</strong> theexternal quality assessment emphasised theweakness in the Division.The effectiveness <strong>of</strong> internal audit results couldfurther be measured by the positive impactresulting from the recommendation and advicegiven through audit reports <strong>of</strong> the <strong>Defence</strong>Inspectorate. As a result <strong>of</strong> audits conductedwithin the Joint Operations environment, operationalmeetings became more focused on theexecution <strong>of</strong> tasks. Audit reports in certaininstances expedite the appointment <strong>of</strong> criticalstaff. Standardised procedures for peacekeepingoperations were formulated and adopted. Adecision with regard to deployment <strong>of</strong> designatedpersonnel from Directorate Physical Training,Sport and Recreation (DPTSR) to co-ordinateleisure time utilisation (LTU) activities was seriouslyconsidered. Fewer members were able todeploy with incomplete Concurrent HealthAssessment because <strong>of</strong> audits conducted duringmobilisation in Bloemfontein. Companies thatoperated illegally at the mobilisation centre werefinally removed and stopped from operating atthe mobilisation centre. The issue regarding thetreatment <strong>of</strong> members <strong>of</strong> OP TEUTONIC atUnited Nations Health Care Facilities in theDemocratic Republic <strong>of</strong> the Congo was finallyresolved.The activities <strong>of</strong> the Pr<strong>of</strong>essional Internal AuditForum (PIAF) resulted in an improvementregarding co-ordination in work performed bythe <strong>Defence</strong> Inspectorate and Service InspectorGenerals. A thorough revision was undertakenon the Quality <strong>of</strong> Performance and RegulatoryAudit Core processes. There was an improvementin the dissemination <strong>of</strong> reports. The implementation<strong>of</strong> the Rolling Three-year InternalAudit Strategy was in place and included theactivities <strong>of</strong> the Service Inspector Generals,which enhanced the reporting to management <strong>of</strong>the DOD as a whole. The PIAF further improvedthe communication between the Auditor-General and the Inspector General <strong>of</strong> the DOD.178DEPARTMENT OF DEFENCE
D EPARTMENT OF D EFENCE, VOTE 21REPORT OF THE ACCOUNTING OFFICERfor the year ended 31 March 20<strong>07</strong> (continued)8.3.4 Audit Committee. The Audit Committee duringthe reporting period provided guidance tothe Internal Audit Division. Amongst manyissues it included the identification <strong>of</strong> shortcomingsin the Internal Audit Plan and the lack <strong>of</strong>expertise <strong>of</strong> internal auditors. The audit plan,Auditor-General's audit report and the quarterlyreports revealed that financial statements werenot addressed adequately, which was ascribed tolack <strong>of</strong> expertise. The external members <strong>of</strong> theAudit Committee made their services availableto assist the DOD to identify suitable candidatesthat could assist the DOD to bridge the gap. TheAudit Committee also approached the Secretaryfor <strong>Defence</strong> to provide assistance to the ChiefAudit Executive to enable and to equip the internalaudit function in order to deliver therequired services and to improve the InternalAudit function.The <strong>Defence</strong> Inspectorate provided the secretarialservices for the Audit Committee. The followinginformation regarding the AuditCommittee is relevant:8.3.4.1 Composition. During the year under review,the Audit Committee for the <strong>Department</strong> <strong>of</strong><strong>Defence</strong> (DOD AC) was duly constituted accordingto the Public Finance Management Act(PFMA). The external members were (appointmentdates indicated in brackets): Dr D. Konar(Chairperson) (27 May 2005); Mr D.S. Molapo(27 May 2005); Mr K.A. Ross (27 May 2005) andMr G.R. Witthöft (7 June 2005). The internalmembers were Lt Gen J.L. Jansen van Rensburg:(Chief <strong>of</strong> Corporate Staff) (1 February <strong>2006</strong>) andMr T.E. Motumi: (Chief <strong>of</strong> Policy and Planning)(7 February <strong>2006</strong>).8.3.4.2 Responsibilities. The Audit Committee compliedwith its responsibilities in terms <strong>of</strong> Section38(1)(a) <strong>of</strong> the PFMA and Treasury Regulation3.1.13. Four scheduled and two special meetingswere held. Special In-Committee Meetings wereheld between the Audit Committee members.Activities <strong>of</strong> the Audit Committee were formalisedinto a plan, allowing the coverage <strong>of</strong> thetotal spectrum <strong>of</strong> risk areas that needed to beassessed and monitored, in accordance with thePublic Finance Management Act and theNational Treasury Regulations. The terms <strong>of</strong> reference,which guide the activities <strong>of</strong> the DOD'sAudit Committee, were reviewed by the AuditCommittee during the reporting period and wasapproved by the Accounting Officer. The externaland internal members, Ex-Officio Officers,the Auditor-General, Chief Audit Executive andthe Accounting Officer, formally assessed theDOD Audit Committee.8.3.4.3 Activities. Audit Committee members duringthe reporting period had an opportunity to beexposed to DOD units through a physical visitand also accompanied audit team members inconducting audits. The Audit Committee haddirect access to the Auditor-General, theSecretary for <strong>Defence</strong> and the Chief <strong>of</strong> theSANDF.8.3.5 Internal Control. A framework <strong>of</strong> internal controlhas been implemented for financial managementin the <strong>Department</strong>. The framework consists<strong>of</strong> the various resource subsystems <strong>of</strong> controlthat are impacting on the revenue, expenditure,assets and liabilities <strong>of</strong> the <strong>Department</strong>.Each sub-system is evaluated bi-annually forcompliance with the regulatory framework takingrisks and adverse audit findings intoaccount. Certain control systems are inefficientbut are being improved through correctivemeasures that are monitored through the relatedmanagement council or board.8.3.6 Budgeting and Financial Management. Thedepartmental strategic business plan and relatedbudget is tabled in Parliament and authorised bythe related Appropriation Act. The plan, programmeand budget is based on Government'sPlan <strong>of</strong> Action and related guidelines by theMinister, Secretary for <strong>Defence</strong> and Chief <strong>of</strong> theNational <strong>Defence</strong> Force. Budgeting is integratedwith the accounting and cash management functions.The Minster, Secretary for <strong>Defence</strong> andbudget authorities monitor execution <strong>of</strong> thebudget monthly regarding expenditure, cashflow including improper expenditure andunder-collection <strong>of</strong> revenue. The FinancialManagement System is still cash-based, consequentlyfinancial information for decision-makingis fairly limited. A system is being developedto support revenue management on a parwith expenditure management.8.4 External reporting8.4.1 <strong>Annual</strong> <strong>Report</strong>. The Minister tables the annualANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 179
D EPARTMENT OF D EFENCE, VOTE 21REPORT OF THE ACCOUNTING OFFICERfor the year ended 31 March 20<strong>07</strong> (continued)<strong>Report</strong> <strong>of</strong> the Accounting Officerreport including financial statements to providean account <strong>of</strong> the <strong>Department</strong>'s performanceagainst the objectives set in the strategic businessplan and its financial position and performanceagainst the appropriate budget.8.4.2 Accounting Standards. The financial statementsare set out in accordance with GenerallyRecognised Accounting Practices (GRAP) asdetermined by the National Treasury.8.4.3 Performance Measures. The performance measuresfor departmental outputs are set out in thestrategic business plan as measurable outputsand targets. The actual performance againstthese measures is reported in the main portion <strong>of</strong>the annual report. The performance measures toensure that resources are procured economicallyand utilised efficiently and effectively have notbeen established since the financial managementinformation system is still cash-based and theother resource management information systemsare not integrated. The implementation <strong>of</strong>the integrated financial management systemdescribed below will enable the establishing <strong>of</strong>performance measures for resource utilisation.8.4.4 External Audit. An objective and pr<strong>of</strong>essionalrelationship has been established with theAuditor-General. The Secretary for <strong>Defence</strong>chairs first and final audit steering committeemeetings. Co-ordination meetings are held withthe Secretary for <strong>Defence</strong> quarterly and with theChief Financial Officer monthly. The AuditCommittee co-ordinates the internal audit programmewith that <strong>of</strong> the Auditor-General.8.5 Occupational Health and Safety (OHS)8.5.1 The Surgeon General is the delegated authorityto direct and monitor occupational health andsafety in the DOD. This function is executed inconjunction with all <strong>Defence</strong> Services andDivisions. Occupational health and safety policyare implemented to direct the provision andmaintenance <strong>of</strong> working environments that aresafe and without risk to DOD <strong>of</strong>ficials.8.5.2 Non-compliance with governance is vigorouslyinvestigated in conjunction with the Inspectorate<strong>of</strong> the <strong>Department</strong> <strong>of</strong> Labour to enforce correctiveactions. All corrective actions are monitoredto ensure that it is reasonably practical to eliminateor mitigate the hazards and risks beforeresorting to personal protective equipment.8.5.3 Daily health assessments and occupationalhygiene surveys contribute to the enhancement<strong>of</strong> operational readiness within the DOD andsupport the compensation process for occupationalinjuries and diseases. The shortages <strong>of</strong>specialised resources, including occupationalhygiene, are constantly being addressed.8.5.4 Current challenges include OHS restructuringdelays, the OHS awareness training at all levels<strong>of</strong> command, the human resources to managethe work environment, risks and quality relatedgovernance and the restricted management <strong>of</strong>the non-compliance with the FacilitiesRegulations and Ammunition and ExplosiveRegulations <strong>of</strong> the OHS Act, No 85 <strong>of</strong> 1993.8.5.5 The suitable rehabilitation <strong>of</strong> <strong>Defence</strong> facilities incompliance with the OHS Act is being supportedby the government to correct the funding constraintsexperienced within the DOD and at the<strong>Department</strong> <strong>of</strong> Public Works.8.5.6 Policy developments include the revised<strong>Defence</strong> instruction on OHS Management, thehearing conservation policy and an OHS Manualfor commanding <strong>of</strong>ficers and supervisors in theSA National <strong>Defence</strong> Force. Under revision arethe policies on the prevention <strong>of</strong> occupationalstress fractures during military training, immunisation,tobacco control (smoking policy), occupationalhealth monitoring and a joint defencepublication on the OHS management system in<strong>Defence</strong>. A complete OHS practitioner's manualhas been completed and will soon be available inthe form <strong>of</strong> an information database loaded onthe <strong>Defence</strong> Intranet. This will enable all commanding<strong>of</strong>ficers, supervisors and <strong>Defence</strong> personnelto be empowered with occupationalhealth and safety management tools.8.6 Environmental Matters8.6.1 Military Integrated Environmental Management(MIEM) - Green Soldering. If not managedproperly in accordance with national environmentallegislative provisions, military activitiescan have a pr<strong>of</strong>ound impact as well as adetrimental effect on the environment. The aim<strong>of</strong> environmental management in the DOD is toensure the sustainable management <strong>of</strong> militaryactivities and facilities in order to continuouslysupport the military mission both inside andoutside the borders <strong>of</strong> South Africa. Through180DEPARTMENT OF DEFENCE
D EPARTMENT OF D EFENCE, VOTE 21REPORT OF THE ACCOUNTING OFFICERfor the year ended 31 March 20<strong>07</strong> (continued)incorporating environmental considerations inthe planning and execution <strong>of</strong> all military activities,the environmental footprint can be reducedor mitigated. This is achieved through variousprogrammes <strong>of</strong> which the following are consideredthe most prominent:8.6.1.1 Environmental Considerations in MilitaryOperations (ECOps). The guidebook on ECOpswas finalised in conjunction with the UnitedStates <strong>Defence</strong> <strong>Department</strong> and distributedthroughout the DOD. Lessons learnt during OPTRITON in the Comores were incorporated inthe planning and deployment <strong>of</strong> an environmentalstaff member in Burundi to ensure that a minimalfootprint is left after the peace supportoperation. Various environmental staff membersreceived practical training with respect toECOps during Ex Seboka. An ECOps co-ordinatorhas been appointed to manage the implementationthere<strong>of</strong> in conjunction with the JointOperations Division.8.6.1.2 International co-operation. The RSA-USAEnvironmental Security Working Group (ESWG)under the <strong>Defence</strong> Committee continued towork on several joint projects. Five US DODmembers visited the South Africa and two RSAmembers visited the US to initiate a joint projecton the development <strong>of</strong> a guidebook onIntegrated Waste Management (IWM) <strong>of</strong> whichthe draft document was completed. The jointGuidebook on ECOps was finalised, printed anddistributed. The next project that has been initiatedwith the visit <strong>of</strong> five US members to SouthAfrica, is the development <strong>of</strong> a Plan <strong>of</strong> Learningfor the African Countries Operational TrainingAssistance (ACOTA) with regard to ECOps.8.6.1.3 Water Efficiency Programme. This co-operativeprogramme between the <strong>Department</strong> <strong>of</strong> WaterAffairs and Forestry (DWAF) and the<strong>Department</strong> <strong>of</strong> Public Works (DPW), which willhave a financial benefit <strong>of</strong> cost reduction andreduce the pressure on water resources, has progressedwith the identification <strong>of</strong> AFBHoedspruit as a trial base for implementation.8.6.1.4 Operation Vuselela. The partnership withDWAF and the sub-programme <strong>of</strong> Working forWater Programme on the eradication <strong>of</strong> alieninvaders through the utilisation <strong>of</strong> military veteranshas been extended to the Free StateProvince. The National Co-ordinatingCommittee continued to manage the teethingproblems with respect to the implementation <strong>of</strong>the programme.8.6.1.5 Environmental Clean-up and Rehabilitation.During the reporting period, environmental staffmembers have been involved in the clean-upand rehabilitation <strong>of</strong> the environment at theHell's Gate Training Area as part <strong>of</strong> the settlement<strong>of</strong> the restitution claim on this property.This involvement provided the basis for futureinvolvement in the closure <strong>of</strong> unused propertiesas well.9. Discontinued activities/activities to be discontinued9.1 Discontinued activities and activities to be discontinuedare described in Chapter 1 <strong>of</strong> the<strong>Annual</strong> <strong>Report</strong>.10. New and proposed activities10.1 New and proposed activities are described inChapter 1 <strong>of</strong> the <strong>Annual</strong> <strong>Report</strong>.11. Asset ManagementAsset management in the DOD has progressedfrom item management to a more comprehensivemanagement approach <strong>of</strong> through life (lifecycle) and financial management <strong>of</strong> assets. Thisapproach has been adopted by the DOD to alinethe <strong>Department</strong> with National Treasury requirementsand international standard <strong>of</strong> asset managementin the public sector.11.1 Progress with regard to capturing assets in theasset register. <strong>Defence</strong> has progressed well incapturing all items on the asset register. Morethan 90% <strong>of</strong> all items are currently on record andthe remaining items, mainly consisting <strong>of</strong> theStrategic <strong>Defence</strong> Packages items recentlyreceived, are presently being codified and cataloguedin order to bring it on record. This isdone in collaboration between the DOD, suppliersand international codification bureaus.Currently, the minimum requirements for assetregisters are being updated to accommodate forinformation not previously captured on the assetregister and are still to be fully updated.<strong>Defence</strong> is also integrating its four major logisticaccounting systems into one system, being theOperating Support Information System (OSIS) t<strong>of</strong>acilitate better control and management <strong>of</strong><strong>Defence</strong>'s inventory. This will enable improvedANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 181
D EPARTMENT OF D EFENCE, VOTE 21REPORT OF THE ACCOUNTING OFFICERfor the year ended 31 March 20<strong>07</strong> (continued)<strong>Report</strong> <strong>of</strong> the Accounting Officercompliance with current and future NationalTreasury reporting requirements. In the processthe small number <strong>of</strong> units still currently usingmanual logistic accounting systems will be computerisedand converted to OSIS.11.2 Establishment <strong>of</strong> asset management units andasset management teams. The DOD has a largenumber <strong>of</strong> asset management units distributedthroughout the country under command andcontrol <strong>of</strong> the different Services and Divisions.These units operate as depots and distributionpoints for goods as well as administration centresperforming the logistic accounting functionfor the depot itself and for the units within itsarea <strong>of</strong> responsibility. The DOD has establisheda corporate asset management team to overseethe following functions:● Ensure a smooth transition <strong>of</strong> the differentlogistic accounting systems to a single systemto improve control <strong>of</strong> assets and to establisha high standard <strong>of</strong> asset management.● Ensure that DOD becomes fully compliantwith National Treasury requirement inrespect <strong>of</strong> accrual accounting by means <strong>of</strong>applications and training.● Ensure that logistic functions and systemsare managed to the extent that a smoothtransition to the Integrated FinancialManagement System is achievable.11.3 Compliance with minimum asset managementrequirements. The DOD continues to manageits inventory according to the North AtlanticTreaty Organisation (NATO) prescripts for assetmanagement and not in accordance with theStandard Chart <strong>of</strong> Accounts (SCOA) as requiredby the National Treasury. This is due to the factthat commonality between the DOD and other<strong>Defence</strong> Forces is a requirement during the executionand support <strong>of</strong> joint military operations.SCOA classifications are dissimilar to the classificationused by NATO. However to be able toreport in the SCOA format, the DOD has createda conversion table to bridge the differencesbetween the two formats and significantprogress has already been achieved.Unfortunately, due to the complexity <strong>of</strong> both formatsthe updated version is still found to be sufficientfor budget purposes but insufficient forlogistic reporting purposes. The DOD will continueto upgrade and update the bridging tool tomeet the reporting requirements as soon as possiblebut, as reported in the previous year, thevast DOD inventory still makes it very difficultto report in the SCOA format. The DOD willtherefore have to continue to report in the NATOformat until all items have been allocated both aNATO and a SCOA code. Meetings was heldand follow-up meeting are to be held with otherdepartments to share knowledge and experiencein this regard and to achieve quick success to fasttrack the solution to the impasse currently experiencedby the DOD.11.4 Compliance with Asset Management Reformmilestones. A departmental investigation is stillin progress to determine the gap between thepresent status <strong>of</strong> the asset register versus thenew requirements. Currently the asset registerconforms largely to the requirements determinedbut is lacking in primarily the pricing andthe financial management <strong>of</strong> assets. Measureswill be affected to fully comply with requiredstandards, however conclusion in this regardwill be slow due to the fact that only with the fullmigration to one logistic system the DOD will befully compliant. Basic asset management policiesare in place based on cash accounting principlesand distributed throughout the <strong>Department</strong>.Policies based on accrual accounting principleshave been formulated and distributed as adiscussion document at the Logistic StaffCouncil. Approval, promulgation and distributionis planned for the financial year 20<strong>07</strong>/2008.An asset management strategy and life cyclemanagement plans, for capital equipment only,have been formulated and published and thestrategy and plan for all other equipment andstores is still in process to be formulated and willbe managed by the appointed AssetManagement Task Team.11.5 Movement in Tangible and Intangible CapitalAssets. Opening balances, current year adjustmentsto prior year balances, disposals and closingbalances for Tangible and Intangible CapitalAssets (Notes 29 and 30 to the <strong>Annual</strong> FinancialStatements <strong>of</strong> the General <strong>Defence</strong> Account)could not be disclosed because accurate pricesare not carried in current DOD logistic systems.11.6 Accounting and <strong>Report</strong>ing in terms <strong>of</strong> GRAP182DEPARTMENT OF DEFENCE
D EPARTMENT OF D EFENCE, VOTE 21REPORT OF THE ACCOUNTING OFFICERfor the year ended 31 March 20<strong>07</strong> (continued)11.6.1 Historically, the DOD expensed assets at date <strong>of</strong>purchase in terms <strong>of</strong> cash based accounting andthereafter accounted for assets in terms <strong>of</strong> itemaccounting. Due to the moratorium by theNational Treasury the DOD was restricted toenhance its asset accounting systems in lieu <strong>of</strong>the envisaged IFMS. The DOD is thus unable toreport on assets as required by GRAP. TheNational Treasury was approached for authorityto deviate from GRAP, however approval wasdenied.11.6.2 Subsequent to the submission for a deviation,numerous meetings with National Treasury andthe Auditor General to resolve the matter hastaken place. It was made clear by the DOD atthese meetings that the <strong>Department</strong> was unableto report in terms <strong>of</strong> GRAP.11.6.3 The DOD subsequently has endeavoured toclean up its asset register by means <strong>of</strong> verifyingdata and items on charge as well as to formulateaccrual accounting policies. Simultaneouslybenchmarking has taken place with otherNational <strong>Department</strong>s to expedite progresswhile a substantial number <strong>of</strong> members havebeen trained by the South African Institute forGovernment Auditors (SAIGA) to improveaccrual accounting competency levels.11.6.4 It is foreseen that problems regarding accrualaccounting and reporting in terms <strong>of</strong> GRAP willonly be solved in the long term without theoption <strong>of</strong> quick solutions. A draft plan has beenformulated concerning the way forward.12. Events after the reporting date12.1 The transfer <strong>of</strong> the SA Naval Dockyard toArmscor on 1 April 20<strong>07</strong> did not materialise asintended due to an interdict obtained by theNational Education; Health and Allied WorkersUnion against the DOD. At the main hearing theinterim interdict was dismissed affording theDOD to proceed with the transfer. The transferis now intended for 1 September 20<strong>07</strong>.12.2 A loan, authorised by the Minister <strong>of</strong> Finance, tothe amount <strong>of</strong> R13 400 000 was granted to theSouth African Forces Institute to be paid back by31 March 20<strong>07</strong>. The borrower has failed to complywith the loan conditions by not redeemingthe loan on the determined date. The DOD willrequest the Minister <strong>of</strong> Finance for an extension<strong>of</strong> the pay back period. (See Note 14 to theFinancial Statements.)13. Performance information13.1 Performance information, per programme, iscomprehensively reported on in Chapters 3 to 11<strong>of</strong> the <strong>Annual</strong> <strong>Report</strong>.14. SCOPA Resolutions14.1 SCOPA Resolutions on the 2002/2003 and2003/2004 financial year were listed in the<strong>Annual</strong> <strong>Report</strong> for the previous period, togetherwith the DOD's progress on the action plansimplemented to address these resolutions. Asthere was no SCOPA hearing held in <strong>2006</strong>, boththe 2004/2005 and the 2005/<strong>2006</strong> financial yearswere covered during the SCOPA hearing held on9 March 20<strong>07</strong>. To date the DOD has not yetreceived any SCOPA Resolutions forthcomingfrom this hearing. The DOD did, however, submita response to SCOPA dated 8 August 20<strong>07</strong> oncertain issues raised during the hearing <strong>of</strong> 9March 20<strong>07</strong>.14.2 Further progress on the Resolutions from thehearing on 14 September 2005 are provided:15. Progress with financial managementimprovement15.1 The DOD is in the third phase <strong>of</strong> a long-termstrategy reported on previously to improve theANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 183
D EPARTMENT OF D EFENCE, VOTE 21REPORT OF THE ACCOUNTING OFFICERfor the year ended 31 March 20<strong>07</strong> (continued)Referenceto the2003/2004<strong>Annual</strong><strong>Report</strong>SCOPAResolutionsdated14 Sep 05Recommendations by SCOPAProgress on Action Plans<strong>Report</strong> <strong>of</strong> the Accounting OfficerPage 143,par 3.1Page 144,par 3.2Par 2 -ContingentLiabilities andLeavePar 3 -Physical andIntangibleAssetMovementSchedulesAdherence to all relevant rules, regulationsand instructions <strong>of</strong> the internalcontrol system.Proper management controls, includingindependent checking and reviewing<strong>of</strong> attendance and leave registers.Establish a single logistical system orupgrade the present logistical systemsto make provision for accrual accounting.CSANDF has instituted numerous control measuresto further strengthen internal controls over theadministration <strong>of</strong> leave and compliance by allmembers. SecDef has instructed that membersresponsible for non-compliance be disciplined.Presently the DOD's logistic accounting does notcomply with National Treasury's requirements foraccrual accounting and therefore the DOD is notable to provide figures as required for the"Movement in tangible and intangible capitalassets".The DOD has investigated the bridging <strong>of</strong> theSCOA categories with NATO categories. A bridgingtool has been developed after consultationbetween the DOD and National Treasury. The toolhas been found to be successful when higherorder groupings, for example budgeting purposes,are required. However the accuracy <strong>of</strong> reportingrequired for the "Movement in tangible and intangiblecapital assets" is greater than what the bridgingtool presently can give in respect <strong>of</strong> individualitems.The DOD is presently planning a long-term projectto upgrade its systems to become compliant.However due to the moratorium placed on theDOD by National Treasury, the <strong>Department</strong> cannotprocure or develop new systems and will thereforeremain non-compliant until a new or upgraded systemis in place.184DEPARTMENT OF DEFENCE
D EPARTMENT OF D EFENCE, VOTE 21REPORT OF THE ACCOUNTING OFFICERfor the year ended 31 March 20<strong>07</strong> (continued)Referenceto the2003/2004<strong>Annual</strong><strong>Report</strong>SCOPAResolutionsdated14 Sep 05Recommendations by SCOPAProgress on Action PlansPage 144,par 3.2 (continued)Page 144-146,par 5.1Page 144,par 3.4Par 3 -Physical andIntangibleAssetMovementSchedules(continued)Par 4 -Inventory,MachineryandEquipmentPar 5 -Purchasesand Payables(Accruals)Submit timeframes for implementation<strong>of</strong> a system that is integrated and ableto report the financial informationrequired.Internal control procedures be revisedand improved where necessary.Vacancies should be filled with skilledpersonnel and relevant training shouldbe given and Portfolio Committee on<strong>Defence</strong> should monitor progress.Disciplinary action is to be taken wherenon-compliance is detected.Storage facilities are to be upgraded.The reporting structure should beinvestigated to ensure that <strong>of</strong>ficerscommanding are held responsible.Logistic systems are to be integrated.Disposal plans must be finalised ontime and SCOPA must receive aprogress report within 60 days <strong>of</strong>tabling this report.An integrated system must be implementedto ensure compliance withaccrual accounting principles or thatthe current systems are upgraded/replaced or that National Treasuryrevisits its requirements on disclosure.The DOD is presently planning a long-term projectto upgrade its systems to become compliant.However due to the moratorium placed on theDOD by National Treasury, the <strong>Department</strong> cannotprocure or develop new systems and will thereforeremain non-compliant until a new or upgraded systemis in place. However, the DOD will approachthe IFMS Clearinghouse <strong>of</strong> the GITO council, tocarry out enhancement <strong>of</strong> current systems in orderto solve the matter.According to the draft DOD Log Accountingand Accrual Accounting Plan, phase one started1 August 20<strong>07</strong> and full reporting on accrual isenvisaged for 29 March 2013.CSANDF has instructed Services and Divisionsto revise and improve their internal controlprocedures.Posts are being identified and staffed. Training isdone via the existing Command and Staff programs.The Portfolio Committee on <strong>Defence</strong> isbriefed regularly regarding progress made.The delegations have been signed and will beimplemented according to the ImplementationInstruction. Service and Divisional Chiefs havealready received the delegations.C Log is tasked to engage DPW to affect upgradeswhere needed.Some GSBs are being decommissioned and delegationsare given back to Service Chiefs and theirlevel 4 commanders to ensure a wider span <strong>of</strong>control.Implementation <strong>of</strong> the IFMS by NT will achieve thisrequirement.Disposal plans are monitored via quarterly reportssubmitted to the Log Staff Council and the AMC. Aprogress report was submitted to SCOPA on 26Oct 05.The DOD is working with NT to implement a suitedIFMS. The DOD is currently busy migrating its Logsystems to OSIS. NT granted the DOD approvalto deviate from the prescribed accounting practicesfor 04/05 and 05/06 FYs in respect <strong>of</strong> accruals.For the 06/<strong>07</strong> FY deviation wrt accruals was againrequested.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 185
D EPARTMENT OF D EFENCE, VOTE 21REPORT OF THE ACCOUNTING OFFICERfor the year ended 31 March 20<strong>07</strong> (continued)Referenceto the2003/2004<strong>Annual</strong><strong>Report</strong>SCOPAResolutionsdated14 Sep 05Recommendations by SCOPAProgress on Action Plans<strong>Report</strong> <strong>of</strong> the Accounting OfficerPage 144,par 3.3Page 144,par 3.5Par 6 -<strong>Department</strong>alIncomePar 7 -Irregularitiesand LossesSteps to ensure that monies receivedare regularly reconciled and checkedby senior personnel at unit level; andsystems must be reconfigured toensure that income can be managedand controlled at unit level.Losses must be reported and the lossregister must be updated, reviewedand reconciled regularly.Training in financial management forsenior personnel at unit level must beimplemented.The Revenue Management Policy is being revisedand will be promulgated. A Tariff Policy andDatabase are being developed whilst budgetguidelines were enhanced to include revenue estimates.The Financial Management System hasbeen enhanced to account for income at the point<strong>of</strong> origin to ensure effective control. Performanceagreements <strong>of</strong> Chiefs <strong>of</strong> Services and Divisionswere amended to include the responsibility for revenuecollection.The policy was revised and is promulgated toensure compliance.An integrated system <strong>of</strong> reporting incidents, namelythe Consolidated Control Project, is being developedby the CFO in conjunction with all other roleplayers.This system will give the DOD the abilityto trace and manage all incidents at all levels,thereby improving follow-up and corrective actions.It has been confirmed that damages and lossesare included in the evaluation sheet <strong>of</strong> the StoresControl Specialists and in-post training is beinggiven during these evaluations.Where irregularities exist, rectification plans areperused to ensure that these aspects areaddressed. Feedback is given on a monthly basisto the Materiel Administration ManagementMeeting.Services and Divisions have been instructed tomonitor outstanding cases and provide quarterlyprogress report with regards to these cases.In order to ensure management involvement in themanagement and administration <strong>of</strong> damages andlosses, Services and Divisions have been instructedto convene a Review Board at least monthly toscrutinise investigations (BOIs/OCIs/UI/BI) inrespect <strong>of</strong> line and functional command matters.Presently the Losses and Damages DODI is beingupgraded by the Logistic and Finances Divisions toaccommodate the weaknessServices and Divisions have been instructed toensure that registers are checked and signed bythe GOCs/OCs on a monthly basis to ensure thatall reported incidents are investigated.Follow up inspections at units where these omissionstook place is scheduled. Management actionwill be taken against units who do not comply withpolicy.E-learning and awareness programs are beingimplemented. Formal compulsory courses aredeveloped for implementation.186DEPARTMENT OF DEFENCE
D EPARTMENT OF D EFENCE, VOTE 21REPORT OF THE ACCOUNTING OFFICERfor the year ended 31 March 20<strong>07</strong> (continued)Referenceto the2003/2004<strong>Annual</strong><strong>Report</strong>SCOPAResolutionsdated14 Sep 05Recommendations by SCOPAProgress on Action PlansPage 146,par 5.3Page 147,par 5.7Page 146,par 5.5Pages 49 &89Par 9 - Gifts,DonationsandSponsorshipsPar 11 -InformationSystemsPar 12 -Revenue andReceivables(Foreign Aidin Kind)Par 13 -RooivalkHelicopterRevision <strong>of</strong> internal control measuresto ensure that all gifts, donations andsponsorships are reported and reflectedcorrectly in the financial statements.Improvement <strong>of</strong> CALMIS securitymanagementThe Committee recommends that aprogress report be submitted toSCOPA within 30 days.SCOPA must be supplied with a costbenefit analysis <strong>of</strong> the project and howfuture operational cost will be funded.Two policies were promulgated and internal controlmeasures were implemented on 1 Apr 06 toenhance accurate registering and reporting <strong>of</strong> gifts,donations and sponsorships.SITA implemented a register on 11 Mar 05 to logall DBA activities, monitored by the DOD. Oraclelogs were activated by SITA on 31 Mar 05.Two policies were promulgated and internal controlmeasures were implemented on 1 Apr 06 toenhance accurate registering and reporting <strong>of</strong> gifts,donations and sponsorships. A report was submittedto SCOPA on 26 Oct 05.A report on the operational requirement, acquisitioncosts and process as well as the life cycle operatingcosts was submitted to SCOPA on 26 Oct 05.financial management <strong>of</strong> the <strong>Department</strong> substantially.The current phase consists <strong>of</strong> broadeningthe scope <strong>of</strong> implementation <strong>of</strong> the publicfinancial management framework to other functionsaffected by public financial managementsuch as personnel, matériel and informationmanagement. The initiatives include ensuringpromulgation <strong>of</strong> legally enforceable instructions,an integrated financial management informationsystem supporting generally recognisedaccounting practices, building <strong>of</strong> departmentalcapacity and reinforcing accountability arrangements.15.2 The principal constraint in the third phase hasbeen the legacy resource management informationsystems that are unique to the DOD andwere developed independently from a cashbasedtransaction-processing origin. These systemsare unable to support emergent generallyrecognised accounting practices includingreporting requirements and are inadequate todetect and prevent non-compliance with financialmanagement policies and instructions. Thecost-effectiveness <strong>of</strong> developing and integratingthese systems to support compliance with theemergent accounting standards and financialreporting requirements is questionable. Cabinethas decided that a common integrated financialmanagement information system that supportsrecognised accounting practices be implementedin the next five years. The DOD is thus obligedto continue with the legacy resource managementinformation systems making only essentialenhancements to accommodate policy changesand breach serious control weaknesses.15.3 The DOD is busy implementing new structuresfor resource management systems such as personnel,matériel (including supply chain) andinformation management. Structural componentsare being consolidated and streamlined toimprove efficiency and accountability arrangements.Personnel are undergoing functional andskills training based on the duties and authoritiesdefined in departmental prescripts. An inhousetraining programme for the statutory generalfinancial management responsibilities containedin PFMA Section 45 has been designedand was implemented during the financial year<strong>2006</strong>/20<strong>07</strong> as a medium to long term project totrain all departmental <strong>of</strong>ficials.15.4 The Accounting Officer chairs a monthlyAccountability Management Committeethrough which all cases <strong>of</strong> non-compliance withfinancial management prescripts (identified byANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 187
D EPARTMENT OF D EFENCE, VOTE 21REPORT OF THE ACCOUNTING OFFICERfor the year ended 31 March 20<strong>07</strong> (continued)departmental detective measures as well asinternal and external audit findings) are dealtwith. The effectiveness <strong>of</strong> this committee hasbeen improved by the compulsory attendance <strong>of</strong>top managers to personally account for noncompliancewith departmental prescripts by<strong>of</strong>ficials within their respective areas <strong>of</strong> responsibility.Accountability management was furtherenhanced by the compulsory attendance <strong>of</strong> auditsteering committee meetings by Chiefs <strong>of</strong>Services and Divisions.The progress and success <strong>of</strong> the <strong>Department</strong>'sachievements over the past year is due to theefforts <strong>of</strong> many. The strategic guidance and support<strong>of</strong> the Minister and Deputy Minister <strong>of</strong><strong>Defence</strong> has been consistent exemplary and isacknowledged. The funding and support providedby the Minister <strong>of</strong> Finance and theNational Treasury is appreciated. My colleaguesin the Plenary <strong>Defence</strong> Staff Council and the<strong>Defence</strong> Secretariat Board have provided wisecouncil and shared the operational load. To ourvarious forces, locally and abroad, and ouradministrative and management personnel gomy heartfelt thanks for their commitment, dedicationand perseverance in a challenging year <strong>of</strong>major accomplishments.<strong>Report</strong> <strong>of</strong> the Accounting Officer15.5 The migration from a cash basis <strong>of</strong> accounting tothe accrual basis <strong>of</strong> accounting as required by theNational Treasury still poses a serious challengeto the <strong>Department</strong> to comply with the emergentpractices and reporting requirements given thecurrent state <strong>of</strong> the legacy resource managementinformation systems and organisational capacity.The DOD nevertheless remains committed toactive participation in National Treasury financialmanagement improvement initiatives duringthe reporting period by providing extensiveinputs on the development <strong>of</strong> the IntegratedFinancial Management System.16. AppreciationApprovalThe audited <strong>Annual</strong> Financial Statements set out in pages199 to 279 have been approved by the Accounting Officer.(J.B. Masilela)Secretary for <strong>Defence</strong>: Director GeneralPretoria31 August 20<strong>07</strong>188DEPARTMENT OF DEFENCE
REPORT OF THE AUDITOR-GENERAL TO PARLIAMENT ONTHE FINANCIAL STATEMENTSAND PERFORMANCEINFORMATION OF VOTE 21 -DEPARTMENT OF DEFENCEfor the year ended 31 March 20<strong>07</strong>a nationalpartnershipto build abetter lifefor allDEPARTMENT:DEFENCEREPORT ON THE FINANCIAL STATEMENTSIntroduction1. I have audited the accompanying financial statements <strong>of</strong> the <strong>Department</strong> <strong>of</strong><strong>Defence</strong> which comprise the statement <strong>of</strong> financial position as at 31 March20<strong>07</strong>, appropriation statement, statement <strong>of</strong> financial performance, statement<strong>of</strong> changes in net assets and cash flow statement for the year that ended, anda summary <strong>of</strong> significant accounting policies and other explanatory notes, asset out on pages 199 to 266.Responsibility <strong>of</strong> the accounting <strong>of</strong>ficer for thefinancial statements2. The accounting <strong>of</strong>ficer is responsible for the preparation and fair presentation<strong>of</strong> these financial statements in accordance with the modified cash basis <strong>of</strong>accounting determined by National Treasury as set out in accounting policy1.1 and in the manner required by the Public Finance Management Act, 1999(Act No. 1 <strong>of</strong> 1999) (PFMA). This responsibility includes:● designing, implementing and maintaining internal control relevant tothe preparation and fair presentation <strong>of</strong> financial statements that are freefrom material misstatement, whether due to fraud or error● selecting and applying appropriate accounting policies● making accounting estimates that are reasonable in the circumstances.Responsibility <strong>of</strong> the Auditor-General3. As required by section 188 <strong>of</strong> the Constitution <strong>of</strong> the Republic <strong>of</strong> South Africa,1996, read with section 4 <strong>of</strong> the Public Audit Act, 2004 (Act No. 25 <strong>of</strong> 2004), myresponsibility is to express an opinion on these financial statements based onmy audit.4. I conducted my audit in accordance with the International Standards onAuditing and General Notice 647 <strong>of</strong> 20<strong>07</strong>, issued in Government Gazette No.29919 <strong>of</strong> 25 May 20<strong>07</strong>. Those standards require that I comply with ethicalANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong>189
equirements and plan and perform the audit to obtain reasonable assurance whether the financial statementsare free from material misstatement.5. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in thefinancial statements. The procedures selected depend on the auditor's judgement, including the assessment <strong>of</strong>the risks <strong>of</strong> material misstatement <strong>of</strong> the financial statements, whether due to fraud or error. In making thoserisk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation<strong>of</strong> the financial statements in order to design audit procedures that are appropriate in the circumstances,but not for the purpose <strong>of</strong> expressing an opinion on the effectiveness <strong>of</strong> the entity's internal control.6. An audit also includes evaluating the:● appropriateness <strong>of</strong> accounting policies used● reasonableness <strong>of</strong> accounting estimates made by management● overall presentation <strong>of</strong> the financial statements.7. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my auditopinion.Basis <strong>of</strong> accounting8. The department's policy is to prepare financial statements on the modified cash basis <strong>of</strong> accounting determinedby the National Treasury, as set out in accounting policy note 1.1 to the financial statements.Basis for qualified opinion9. Tangible and intangible capital assets<strong>Report</strong> <strong>of</strong> the Auditor-GeneralThe movement in tangible and intangible capital assets per asset register was not disclosed. Disclosure in notes30 and 31 was limited to cash additions as disclosed in note 8. It did not include the opening balance, currentyear adjustments to prior year balances, non-cash additions and disposals and did not conform to the modifiedcash basis <strong>of</strong> accounting determined by National Treasury. Consequently, the closing balance is understated.The effect <strong>of</strong> these omissions could not be quantified due to the inadequacy <strong>of</strong> the asset registers in use andthe weaknesses identified in internal control.10. Irregular expenditure: R481 000 (2005-06: R955 000)Irregular expenditure, as disclosed in note 26 to the financial statements, is understated mainly due to:● The salary increase granted to the South African National <strong>Defence</strong> Force members not being approved inaccordance with section 55, subsection (1) and subsection (2) <strong>of</strong> the <strong>Defence</strong> Act, 2002 (Act No. 42 <strong>of</strong> 2002).It therefore constitutes irregular expenditure in terms <strong>of</strong> section 45(c) <strong>of</strong> the Public Finance ManagementAct, 1999 (Act No. 1 <strong>of</strong> 1999). Irregular expenditure, as disclosed in note 27 to the financial statements, isunderstated by an amount <strong>of</strong> approximately R170 000 000 for the period 1 July <strong>2006</strong> to 31 March 20<strong>07</strong>. Thedepartment is <strong>of</strong> the opinion that the salary increases do not constitute irregular expenditure and did notreport or disclose the expenditure as such.● The department did not classify and disclose the expenditure incurred on contract RT3 <strong>of</strong> 2000 and RT3 <strong>of</strong>2003 as irregular expenditure. Practice note 5 <strong>of</strong> <strong>2006</strong>/<strong>07</strong> issued by National Treasury granted approval forthe irregular expenditure incurred as a result <strong>of</strong> departments entering into finance lease transactions interms <strong>of</strong> National Treasury's transversal contract RT3 <strong>of</strong> 2000 and RT3 <strong>of</strong> 2003.11. Travel and subsistence: R463 415 000 (2005-06: R567 669 000)The sample drawn from the financial management system (FMS) to test the validity <strong>of</strong> travel and subsistenceclaims could not be traced back to the relevant documentation supporting the claims. The completeness <strong>of</strong> theexpenses could also not be verified as the supporting documentation supporting the claim could not be tracedback to the FMS. This resulted in a limitation <strong>of</strong> scope as 49% <strong>of</strong> the identified sample in rand value could notbe tested for validity. No practicable alternative procedures could be performed.12. Prepayments and advances: R176 471 000 (2005-06: R144 659 000)The sample drawn from the FMS to test the existence, valuation, rights and obligation assertions on advancesoutstanding at year-end could not be traced back to the relevant documentation supporting the advances outstanding.This resulted in a limitation <strong>of</strong> scope on advances as 95% <strong>of</strong> the identified sample in rand value could190DEPARTMENT OF DEFENCE
not be tested for existence, valuation and rights and obligations. No practicable alternative procedures couldbe performed.13. Accruals: R272 966 000 (2005-06: R155 100 000)The department's accounting policy changed during 20<strong>07</strong> to include goods and services for which an invoicehad been received by year-end but final authorisation for payment had not been effected on the system, andwhere goods and services were received but an invoice had not been received. The accruals for both <strong>2006</strong> and20<strong>07</strong> did not include goods and services received for which an invoice had not been received at year-end. Thisresulted in an understatement <strong>of</strong> accruals by an unquantifiable amount. Further to the above, the result <strong>of</strong> thesample <strong>of</strong> accruals tested from the accrual listing included accruals to an amount <strong>of</strong> approximately R7 800 000that could not be substantiated, and accruals amounting to R1 901 858 that were incorrectly classified.Therefore the accruals disclosed in note 23 to the financial statements are not fairly presented.14. Lease commitments: R1 648 000 (2005-06: R8 060 000)With reference to paragraph 6.11 <strong>of</strong> my previous report on page 266 <strong>of</strong> the 2005-06 annual report, the existence,rights and obligations, completeness and valuation and allocation <strong>of</strong> lease commitment as disclosed in note 25to the financial statements could not be confirmed. This year there was again no efficient and effective system<strong>of</strong> control over the recording <strong>of</strong> operating lease commitments on which we could rely for the purpose <strong>of</strong> ouraudit, and the auditing procedures performed could not provide reasonable assurance that all operating leasecommitments were properly recorded and disclosed.Furthermore, the department did not disclose any finance lease commitments despite the fact that the departmentused transversal contract RT3 <strong>of</strong> 2000 and RT3 <strong>of</strong> 2003 entered into by National Treasury for the supply<strong>of</strong> photocopiers.15. Regional Service Council levies: R3 967 000 (2005-06: R15 144 000)With reference to paragraph 6.5 <strong>of</strong> my previous report, the test for completeness, once again, revealed that theamount paid in respect <strong>of</strong> Regional Service Council (RSC) levies, as disclosed in note 7 and annexure 1A, isunderstated by an amount <strong>of</strong> approximately R3 130 038. Furthermore, no supporting evidence could be submittedfor audit purposes to substantiate the recalculation <strong>of</strong> RSC levies accruals amounting to R37 922 268, asdisclosed in note 23, which resulted in a limitation <strong>of</strong> scope as the existence, obligation, valuation and completeness<strong>of</strong> the RSC accruals disclosed could not be confirmed. No alternative cost-effective procedures couldbe performed.16. Contingent liability: R1 513 838 000 (2005-06: R1 162 105 000)The completeness <strong>of</strong> contingent liabilities as disclosed in note 21 and annexure 3B could not be confirmed. Nopracticable alternative procedures could be performed to quantify the amount <strong>of</strong> the understatement.17. Misclassification <strong>of</strong> expenditureTransactions amounting to R3 115 322 in respect <strong>of</strong> current expenditure: compensation <strong>of</strong> employees, goodsand services and transfers and subsidies were incorrectly classified in the accounting records and the financialstatements <strong>of</strong> the department. Expenditure amounting to R9 195 234 was incorrectly classified within note 5:Goods and services.18. Receivables: R688 693 000 (2005-06: R103 317 000)The completeness <strong>of</strong> receivables could not be confirmed. The alternative audit procedure performed indicatedthe absolute minimum understatement <strong>of</strong> receivables as R5 043 108. Consequently, this also resulted in anunderstatement <strong>of</strong> recoverable revenue amounting to R3 594 850 and an overstatement <strong>of</strong> current expenditure:Goods and services amounting to R1 448 258.19. <strong>Department</strong>al revenue: R492 792 000 (2005-06: R729 136 000)With reference to paragraph 4.2 on page 262 <strong>of</strong> my previous report, sufficient appropriate audit evidence couldnot be obtained as to the completeness and recording <strong>of</strong> revenue in the correct accounting period. Furthermore,the department is losing revenue due to unserviceable equipment situated in the mission areas, which couldhave been prevented had reasonable care been taken.20. Commitments: R1 632 353 000 (2005-06: R1 359 847 000)The department only included commitments under "approved but not yet contracted", for which a financialANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 191
authority exists. All contracts approved by the different procurement committees, for which financial authoritiesdo not exist, should also be included under approved but not yet contracted. This resulted in the commitmentsas disclosed in note 22 for approved but not yet contracted commitments to be understated by anamount <strong>of</strong> R3 192 509.21. Clearing accountsAccording to Treasury Regulation 17.1.2 the usage <strong>of</strong> clearing/suspense accounts should be limited to exceptionalcases and the accounting <strong>of</strong>ficer should ensure that the amounts included in clearing or suspenseaccounts are cleared and correctly allocated to the relevant cost centres on a monthly basis. The departmentcould not provide information/detail in respect <strong>of</strong> the credit posted to a suspense account during <strong>2006</strong>-<strong>07</strong>amounting to R29 100 579 which arose due to the payment <strong>of</strong> severance packages in 2005-06. Consequently, therecording <strong>of</strong> R29 100 579 could not be confirmed. The department should investigate the recording <strong>of</strong> thisamount and submit the audit evidence required to the auditors during the 20<strong>07</strong>-08 financial year audit.22. Fruitless and wasteful expenditure: R959 000 (2005-06: R472 000)Sufficient appropriate audit evidence could not be obtained as to the completeness, allocation and presentationand disclosure <strong>of</strong> fruitless and wasteful expenditure as disclosed in note 10 to the financial statements.According to the Public Finance Management Act, 1999 (Act No. 1 <strong>of</strong> 1999) (PFMA), section 40(3)(b)(ii), theannual report and audited financial statements must include particulars <strong>of</strong> any criminal or disciplinary stepstaken as a result <strong>of</strong> fruitless and wasteful expenditure. This resulted in the disclosure <strong>of</strong> criminal or disciplinarysteps taken also being incomplete. The lack <strong>of</strong> policies and procedures for the identification, recording andreporting <strong>of</strong> fruitless and wasteful expenditure has contributed, in the main, to the understatement <strong>of</strong> fruitlessand wasteful expenditure. No reasonable alternative procedures could be performed to quantify the totalunderstatement.23. Rank review audit<strong>Report</strong> <strong>of</strong> the Auditor-GeneralWith reference to paragraph 4.4 on page 263 <strong>of</strong> my previous report, the department could still not submit sufficientand appropriate documentation in terms <strong>of</strong> the set criteria supporting the validity <strong>of</strong> each separate rankadjustment for audit purposes. The department did institute a process whereby condonation was requestedfrom the Minister <strong>of</strong> <strong>Defence</strong> to deviate from the guidelines prescribed by him. The Minister <strong>of</strong> <strong>Defence</strong> condoned154 former non-statutory force members' files. The remainder <strong>of</strong> the files, however, must still be scrutinisedand submitted for audit purposes. It is anticipated that this audit will be conducted during October 20<strong>07</strong>.I will be reporting on the final outcome in the 20<strong>07</strong>-08 audit report.24. ComparativesNational Treasury did not approve certain deviations for the department for the <strong>2006</strong>-<strong>07</strong> financial year. Thedepartment should have adjusted certain comparative figures to account for the effect <strong>of</strong> the changes inaccounting policies. The comparative figures for the following were not adjusted:● Accruals; and● Notes for tangible and intangible capital assets.Qualified opinion25. In my opinion, except for the effects <strong>of</strong> the matters described in the Basis for qualified opinion paragraphs, thefinancial statements present fairly, in all material respects, the financial position <strong>of</strong> <strong>Department</strong> <strong>of</strong> <strong>Defence</strong> asat 31 March 20<strong>07</strong> and its financial performance and cash flows for the year then ended, in accordance with themodified cash basis <strong>of</strong> accounting determined by the National Treasury as set out in accounting policy note 1.1to the financial statements, and in the manner required by the PFMA.Emphasis <strong>of</strong> mattersI draw attention to the following matter:26. Basis <strong>of</strong> accounting (departures and deviations)The National Treasury granted the <strong>Department</strong> <strong>of</strong> <strong>Defence</strong> approval to deviate from the prescribed comprehensivebasis <strong>of</strong> accounting for the year ended 31 March 20<strong>07</strong>, as indicated in accounting policy note 1.1 inrespect <strong>of</strong> the following notes to and requirements for the financial statements:● Note 27: Related-party transactions - Disclosure should have included the type <strong>of</strong> the related-party rela-192DEPARTMENT OF DEFENCE
●tionship, the type <strong>of</strong> transaction that occurred and the elements <strong>of</strong> the transactions. Disclosure was limitedto the entities where the Minister <strong>of</strong> <strong>Defence</strong> is registered as the intermediary and the type <strong>of</strong> relatedpartytransactions that had occurred between the department and the related party without quantifyingthe extent <strong>of</strong> the transactions and balances between the two parties.Investments: Given that the National Treasury is in the process <strong>of</strong> investigating the definition <strong>of</strong> ownershipcontrol for the public sector, the department may refrain from recognising and disclosing investmentin the statement <strong>of</strong> financial position and the related annexures.OTHER MATTERSI draw attention to the following matters that are ancillary to my responsibilities in the audit <strong>of</strong> the financial statements:27. Internal control27.1 Control environmentEmployees are not provided with orientation, training and tools to perform their duties and responsibilities,improve performance, enhance their capabilities, and meet the demands <strong>of</strong> changing organisational needs inrespect <strong>of</strong> receivables.27.2 Control activities● Appropriate policies, procedures, techniques and mechanisms do not exist with respect to the properidentification and recording <strong>of</strong> irregular, fruitless and wasteful expenditure, related parties, contingent liabilitiesarising from the National Environmental Management Act, 1998 (Act No. 1<strong>07</strong> <strong>of</strong> 1998) and commitments;● Transactions and other significant events are not properly classified and not promptly recorded withrespect to lease commitments, contingent liabilities, receivables and capital assets;● The control activities identified as necessary are not in place and are not being applied with respect to revenue,receivables, capital assets and clearing accounts;● Management does not review at functional or activity levels the appropriate control activities whichshould be employed, such as reconciliation <strong>of</strong> summary information to supporting details in respect <strong>of</strong>revenue, receivables and capital assets;● The department does not use physical control to safeguard vulnerable assets;● Key duties and responsibilities are not divided or segregated among different people to reduce the risk <strong>of</strong>error, waste or fraud in respect <strong>of</strong> capital assets;● Transactions and events relating to capital assets are not timeously authorised;● Access to resources and records is not limited and accountability for their custody is not assigned;● Transactions and other significant events are not clearly documented as the documentation supporting therank review process was not readily available for examination.27.3 Information and communicationThe department is unable to manage, develop and revise its information systems in an effort to continuallyimprove the usefulness and reliability <strong>of</strong> its communication <strong>of</strong> information. The department's current informationsystems do not comply with National Treasury's requirements as per the accounting framework, specificallyin respect <strong>of</strong> accruals, subsistence and travel expenditure, subsistence and travel advances, tangible andintangible assets. The department may not procure or develop new systems due to the moratorium placed onthe procurement, development or major enhancement <strong>of</strong> information systems by National Treasury. Thedepartment will remain non-compliant until new or upgraded systems are in place.28. Material corrections made to the financial statements submitted for auditThe financial statements, approved by the accounting <strong>of</strong>ficer and as submitted for audit on 31 May 20<strong>07</strong>, havebeen significantly revised in respect <strong>of</strong> the following misstatements identified during the audit:● Accruals to the amount <strong>of</strong> R96 006 483 were not complete;● Receivables and payables relating to performance awards to a net amount <strong>of</strong> R3 514 233 were not complete;● Unconfirmed interdepartmental balances to the amount <strong>of</strong> R28 338 158 were not complete;ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 193
●Receivables for departmental revenue to the amount <strong>of</strong> R109 373 000 were not valid;29. Performance audit reports issued during the yearTwo performance audits were finalised during the year under review. The focus areas <strong>of</strong> the two performanceaudits were:● The rendering <strong>of</strong> catering services at the <strong>Department</strong> <strong>of</strong> <strong>Defence</strong>; and● The management and provision <strong>of</strong> <strong>of</strong>ficial accommodation to staff at the <strong>Department</strong> <strong>of</strong> <strong>Defence</strong>.The management reports were submitted to the management <strong>of</strong> the department. Separate performance auditreports will be tabled in Parliament.30. Matters <strong>of</strong> governanceThe National Treasury granted a deviation to the department in respect <strong>of</strong> related-party transactions, providedthat the department, during 20<strong>07</strong>-08 financial year, investigates the relationship with entities internal to thedepartment, e.g. funds and institutions, including the South African Forces Institute, to determine whetherthese should be classified and disclosed as related parties to the department.31. <strong>Defence</strong> Industrial Participation Programme - Strategic <strong>Defence</strong> PackagesThe achievement <strong>of</strong> milestones in terms <strong>of</strong> the <strong>Defence</strong> Industrial Participation Programme is included in note11 <strong>of</strong> the notes to the financial statements <strong>of</strong> the Special <strong>Defence</strong> Account. With regard to the National IndustrialParticipation Programme, reference is made to the <strong>Department</strong> <strong>of</strong> Trade and Industry's annual report.32. Value for money matters<strong>Report</strong> <strong>of</strong> the Auditor-GeneralAn audit was performed on the vetting process in terms <strong>of</strong> South African National <strong>Defence</strong> Force Order: TheMaintenance <strong>of</strong> Security in the SANDF (SANDFO/INT DIV/2/96). The following findings in terms <strong>of</strong> complianceto the SANDFO were brought to the attention <strong>of</strong> the department:● Standing data with regard to members' personal details is incomplete;● A vacancy rate <strong>of</strong> 40% exists in the functional sections <strong>of</strong> the Vetting Directorate as at June 20<strong>07</strong>;● It could not be determined what processes and procedures were put in place to reduce the backlog <strong>of</strong> 6464 applications dating back to April 1997, while further unfinalised applications were noted dating backto 1974;● The period to process a security clearance application doubled since the 2002-03 year;● Policies and procedures are not in place to ensure that aspects or incidents which may adversely influencethe security competence <strong>of</strong> a member are reported;● Processes and procedures are not in place to ensure that photographs are not taken and sketches are notmade <strong>of</strong> military premises or installations;● A total <strong>of</strong> 10 313 members' clearances had expired as at 31 March 20<strong>07</strong>, for which no renewal <strong>of</strong> their clearanceoccurred and a further 19 139 members do not have a security clearance grading;● Members do not apply for the necessary or correct security clearance according to their post in the department;● A total <strong>of</strong> 652 active posts in the department do not have a security clearance grading attached to the post;● Unit Counter Intelligence Officers (UCIO) in the department do not comply with the guidelines for UCIOsas set in the SANDFO; and● Compliance with the SANDFO with regard to non-RSA citizens employed in the department could not bedetermined;33. Delay in finalisation <strong>of</strong> auditDue to the national public sector strike action during June 20<strong>07</strong> the Auditor-General had to delay the finalisation<strong>of</strong> affected departments. As a result, the Auditor-General's consistency review process <strong>of</strong> the audit reportscould only be conducted subsequent to 31 July 20<strong>07</strong>, the consequence <strong>of</strong> which was a delay in the finalisation<strong>of</strong> the audit <strong>of</strong> this department for the <strong>2006</strong>-<strong>07</strong> financial year.OTHER REPORTING RESPONSIBILITIES194DEPARTMENT OF DEFENCE
<strong>Report</strong>ing on performance information34. I have audited the performance information which is reported upon per programme as set out on pages 13 to129.Responsibility <strong>of</strong> the accounting <strong>of</strong>ficer35. The accounting <strong>of</strong>ficer has additional responsibilities as required by section 40(3)(a) <strong>of</strong> the PFMA to ensure thatthe annual report and audited financial statements fairly present the performance against predetermined objectives<strong>of</strong> the department.Responsibility <strong>of</strong> the Auditor-General36. I conducted my engagement in accordance with section 13 <strong>of</strong> the Public Audit Act, 2004 (Act No. 25 <strong>of</strong> 2004)read with General Notice 646 <strong>of</strong> 20<strong>07</strong>, issued in Government Gazette No. 29919 <strong>of</strong> 25 May 20<strong>07</strong>.37. In terms <strong>of</strong> the foregoing, my engagement included performing procedures <strong>of</strong> an audit nature to obtain sufficientappropriate evidence about the performance information and related systems, processes and procedures.The procedures selected depend on the auditor's judgement.38. I believe that the evidence I have obtained is sufficient and appropriate to provide a basis for the audit findingsreported below.Audit findings39. Non-compliance with regulatory requirementsThe strategic business plan, budget and annual report <strong>of</strong> the <strong>Department</strong> <strong>of</strong> <strong>Defence</strong> did not include the subprogrammeoutputs, indicators (measures) and targets <strong>of</strong> the subprogramme: <strong>Department</strong>al Support underprogramme 7: Joint Support as required by Treasury Regulation, chapter 5, section 5.2.3(d).40. Evidence materially inconsistent with reported information or lack <strong>of</strong> adequate evidence.The following actual achievement <strong>of</strong> targets could not be substantiated by adequate evidence/source documentation:The evidence provided to support the performance information reported in the annual report was materiallyProgramme Sub-programme OutputTarget AchievementsProgramme 2:Landward<strong>Defence</strong>Programme 3:Air <strong>Defence</strong>Programme 7:Joint SupportSupport capabilityTechnical supportservices capabilityJoint LogisticsservicesCommand andcontrol capabilityAircraft servicingcapabilityIntegrated logisticservices; logisticmanagement;logistic resourcemanagement; facilitysupport services;engineering supportservices; supplysupport; andlogistic support inaccordance withclient and forceemploymentrequirementsFormation headquartersrequired standard<strong>of</strong> at least 80%during all evaluations.Six aircraft servicingunits that provideserviceable aircraft inaccordance with systemgroup businessplansThree ammunitiondepotsThe Formation Headquarters achieved85% during all internal evaluations on alladministrative aspectsSix aircraft servicing units met 65% <strong>of</strong>system group requirements for serviceableaircraft. Loss <strong>of</strong> skilled technical personneland deteriorating infrastructurecontributed to a reduction in output. Animprovement in technical allowanceswas implemented wef July <strong>2006</strong> andshould contribute to improved output inthe FY20<strong>07</strong>/08.The target was 90% achieved. Thedeeper level depot storage <strong>of</strong> ammunitionwas successfully executed.Ammunition was maintained according topriorities and levels as instructed. TheAmmunition warehouse is licensed.Munitions support to operations was successful.Rm10 was obtained as additionalfunding for policy options.Rm12 was expended. The additionalfunds were allocated from DOD LogisticAgency's budget to ensure ammunitionsafety. Five ranges qualified forANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 195
Programme Sub-programme OutputTarget Achievements<strong>Report</strong> <strong>of</strong> the Auditor-GeneralOne air supply unitOne mobilisationcentreOne technical serviceunitFive maintenanceunits (Reserve)Six Field workshops(Reserve)One transit maintenanceunit (Reserve)90% serviceability <strong>of</strong>deployed equipmentdisposal by open detonation. A total <strong>of</strong> 1000 tons <strong>of</strong> dangerous ammunition wasdisposed. Ammunition logistic infrastructureat depots improved. Correctiveaction is being taken to improve thewarehousing facilities at Jan Kempdorp.The DOD Air Supply Unit achieved itsobjectives. Support was provided tocourses and combined training exercisessuch as Exercise YOUNG EAGLE. Airsupply was provided in support <strong>of</strong>SANDF operations. The facilities at theDOD Air Supply Unit are in a poor state.The target was achieved. The DODMobilisation Centre in Bloemfontein providedthe 4th line warehousing capabilityfor the DOD. Effective mobilisation anddemobilisation <strong>of</strong> forces took place witheach deployment <strong>of</strong> SANDF forces.However, the levels <strong>of</strong> the operationalreserves to be maintained are notacceptable. The realignment <strong>of</strong> themandate, structure and functions <strong>of</strong> theMobilisation Centre is underway in orderto reposition the unit to effectivelyrespond to new operational challenges.The management <strong>of</strong> universal equipment<strong>of</strong> the DOD Logistic Agency (Pretoria)through maintenance, repair or reconditioningwas 75% achieved due to challengesrelated to the structure, mandateand resourcing <strong>of</strong> the unit. The presence<strong>of</strong> sinkholes at the present locationcomplicates the execution <strong>of</strong> repairtasks. Different stakeholders do notadhere to stipulations regarding standardisationresulting in a proliferation <strong>of</strong>products and related support.The target was not achieved. Therenewal and transformation <strong>of</strong> theReserve in the DOD Logistic Agencywere not accomplished. The Reserves inthe DOD Log Agency are not fullytrained, properly structured, adequatelyresourced or well equipped. Since 1999all formal recruitment and training haveceased.Only 60 % serviceability <strong>of</strong> deployedequipment was achieved due to the lack<strong>of</strong> support resources such as funds torepair and maintain material handlingequipment in depots. The turn-aroundtime <strong>of</strong> repair to the s<strong>of</strong>t skin militarycargo carrying vehicles is not acceptable.The DOD Logistic Agency is currentlycooperating with SA Army toimprove availability and serviceability.196DEPARTMENT OF DEFENCE
Programme Sub-programme OutputTarget AchievementsThree joint supportbasesThree commodity/technical/Reservevehicle depotsNational CodificationBureau establishedby 31 March 20<strong>07</strong>Repair and maintenance<strong>of</strong> infrastructureas per clientrequirements in theRepair andMaintenance Plan(RAMP)Management <strong>of</strong> disposaland environmentaccording toclient requirementsThe target was 80% achieved. The JointSupport Bases (Joint Support BaseGarrison and General Support BaseMinistry <strong>of</strong> <strong>Defence</strong>) are incapable <strong>of</strong>rendering an effective, efficient service toits clients. Due to the structures beingunder-staffed and under- funded. Theclosure and migration <strong>of</strong> the joint supportbase concept within the DOD LogisticSupport Formation was completed. Animplementation instruction and a closingdown and migration plan per joint supportbase was completed and handedover to the Chief <strong>of</strong> Corporate Staff. TheDOD Logistic Agency is currently in aplanning process with the SA Army forthe transfer <strong>of</strong> JSB Garrison.The target was not achieved. Therenewal and transformation <strong>of</strong> theReserves in the DOD Logistic Agencywere not accomplished. The Reserves inthe DOD Logistic Agency are not fullytrained, properly structured, adequatelyresourced or well equipped. Since 1999all formal recruitment and training haveceased.The target was 25% achieved. TheCodification Bureau is established butnot yet fully functioning. The backloginherited is currently being addressed.The rejuvenation <strong>of</strong> the current structureis in process and full capacity should bereached by December 2008.The target was achieved as the DODspent 99.42% <strong>of</strong> the available funds forinfrastructure maintenance. The amount<strong>of</strong> Rm50 was insufficient to address themaintenance backlog resulting in anincreasing backlog. The rate <strong>of</strong> progressto eliminate the backlog is therefore notaccording to plan. The DOD once againobtained additional funding from theNational Treasure for the FY20<strong>07</strong>/08.100% <strong>of</strong> the identified high-risk ammunition(1 000 tons) was destroyed. Threedemolition ranges were qualified(Bergspits at 93 Ammunition Depot JanKempdorp, Roodewal bombing range atPolokwane and DOD Ammunition Sub-Depot Mookgopong). Five <strong>of</strong> the sevenranges now qualified with Simon's Townand De Aar scheduled for theFY20<strong>07</strong>/08. A mass ammunition disposalby open detonation capability forammunition <strong>of</strong> 60mm calibre and higherwas established. Risk managementactions were taken at Jan Kempdorp tomitigate risk factors.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 197
inconsistent with the reported performance information.ProgrammeSub-programmeOutputTargetTarget<strong>Report</strong>edSource <strong>of</strong>informationVarianceProgramme 2:Landward<strong>Defence</strong>Programme 7:Joint SupportInfantry capabilityLogistic supportservicesTraining CapabilityIntegrated logistic services;logistic management;logistic resourcemanagement; facilitysupport services; engineeringsupport services;supply support; andlogistic support inaccordance with clientand force employmentrequirements- One School <strong>of</strong>Infantry- 129 Learningopportunities- 7 <strong>07</strong>3 learners- Three trainingschools: technical,ammunitionand hospitality- 191 learningopportunities- 2 929 learners11316 71931873 04311257 90031652 008061 1810221035APPRECIATION41. The assistance rendered by the staff <strong>of</strong> the <strong>Department</strong> <strong>of</strong> <strong>Defence</strong> during the audit is sincerely appreciated.<strong>Report</strong> <strong>of</strong> the Auditor-GeneralG J Lourens for Auditor-GeneralPretoria31 August 20<strong>07</strong>198DEPARTMENT OF DEFENCE
DEPARTMENT OF DEFENCEVOTE 21ACCOUNTING POLICIESfor the year ended 31 March 20<strong>07</strong>The Financial Statements have been prepared in accordance with the following policies,which have been applied consistently in all material aspects, unless otherwise indicated.However, where appropriate and meaningful, additional information has been disclosedto enhance the usefulness <strong>of</strong> the Financial Statements and to comply with thestatutory requirements <strong>of</strong> the Public Finance Management Act, Act 1 <strong>of</strong> 1999 (as amendedby Act 29 <strong>of</strong> 1999), and the Treasury Regulations issued in terms <strong>of</strong> the Act.1. Presentation <strong>of</strong> the Financial Statements1.1 Basis <strong>of</strong> preparationThe Financial Statements have been prepared on a modified cash basis <strong>of</strong>accounting, except where stated otherwise. The modified cash basis constitutesthe cash basis <strong>of</strong> accounting supplemented with additional disclosureitems. Under the cash basis <strong>of</strong> accounting transactions and other events arerecognised when cash is received or paid.1.2 Presentation currencya nationalpartnershipto build abetter lifefor allDEPARTMENT:DEFENCEAll amounts have been presented in the currency <strong>of</strong> the South African Rand(R) which is also the functional currency <strong>of</strong> the department.1.3 RoundingUnless otherwise stated all financial figures have been rounded to the nearestone thousand Rand (R'000).1.4 Comparative figuresPrior period comparative information has been presented in the current year'sfinancial statements. Where necessary figures included in the prior periodfinancial statements have been reclassified to ensure that the format in whichthe information is presented is consistent with the format <strong>of</strong> the current year'sfinancial statements.1.5 Comparative figures - Appropriation StatementA comparison between actual amounts and final appropriation per major classification<strong>of</strong> expenditure is included in the appropriation statement.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong>199
D EPARTMENT OF D EFENCE, VOTE 21ACCOUNTING POLICIESfor the year ended 31 March 20<strong>07</strong> (continued)2. Revenue2.1 Appropriated fundsAppropriated and adjusted appropriated fundsare recognised in the financial records on thedate the appropriation becomes effective.Adjustments to the appropriated funds made interms <strong>of</strong> the adjustments budget process arerecognised in the financial records on the datethe adjustments become effective.Total appropriated funds are presented in thestatement <strong>of</strong> financial performance.Unexpended appropriated funds are surrenderedto the National Revenue Fund. Amountsowing to the National Revenue Fund at the end<strong>of</strong> the financial year are recognised in the statement<strong>of</strong> financial position.The proceeds received on sale <strong>of</strong> capital assetsare recognised in the statement <strong>of</strong> financial performancewhen the cash is received.2.2.5 Financial transactions in assets and liabilitiesRepayments <strong>of</strong> loans and advances previouslyextended to employees and public corporationsfor policy purposes are recognised as revenue inthe statement <strong>of</strong> financial performance onreceipt <strong>of</strong> the funds.Cheques issued in previous accounting periodsthat expire before being banked are recognisedas revenue in the statement <strong>of</strong> financial performancewhen the cheque becomes stale. When thecheque is reissued the payment is made fromRevenue.Forex gains are recognised on payment <strong>of</strong> funds.Accounting Policies2.2 <strong>Department</strong>al revenueAll departmental revenue is paid into theNational Revenue Fund when received, unlessotherwise stated. Amounts owing to theNational Revenue Fund at the end <strong>of</strong> the financialyear are recognised in the statement <strong>of</strong>financial position. Amounts receivable at thereporting date are disclosed in the disclosurenotes to the annual financial statements.2.2.1 Sales <strong>of</strong> goods and services other than capitalassetsThe proceeds received from the sale <strong>of</strong> goodsand/or the provision <strong>of</strong> services is recognised inthe statement <strong>of</strong> financial performance when thecash is received.2.2.2 Fines, penalties & forfeitsFines, penalties & forfeits are compulsory unrequitedamounts which were imposed by a courtor quasi-judicial body and collected by thedepartment. Revenue arising from fines, penaltiesand forfeits is recognised in the statement <strong>of</strong>financial performance when the cash is received.2.2.3 Interest, dividends and rent on landInterest, dividends and rent on land is recognisedin the statement <strong>of</strong> financial performancewhen the cash is received.2.2.4 Sale <strong>of</strong> capital assets2.2.6 Gifts, donations and sponsorships (transfersreceived)All cash gifts, donations and sponsorships arepaid into the National Revenue Fund andrecorded as revenue in the statement <strong>of</strong> financialperformance when received. Amounts receivableat the reporting date are disclosed in thedisclosure notes to the financial statements.All in-kind gifts, donations and sponsorships aredisclosed at fair value in the annexures to thefinancial statements.2.3 Local and foreign aid assistanceLocal and foreign aid assistance is recognised asrevenue when notification <strong>of</strong> the assistance isreceived from the National Treasury or when thedepartment directly receives the cash from thedonor(s).All in-kind local and foreign aid assistance aredisclosed at fair value in the annexures to theannual financial statements.The cash payments made during the year relatingto local and foreign aid assistance projectsare recognised as expenditure in the statement <strong>of</strong>financial performance. The value <strong>of</strong> the assistanceexpensed prior to the receipt <strong>of</strong> the fundsis recognised as a receivable in the statement <strong>of</strong>financial position.Inappropriately expensed amounts using localand foreign aid assistance and any unutilised200DEPARTMENT OF DEFENCE
D EPARTMENT OF D EFENCE, VOTE 21ACCOUNTING POLICIESfor the year ended 31 March 20<strong>07</strong> (continued)amounts are recognised as payables in the statement<strong>of</strong> financial position.3. Expenditure3.1 Compensation <strong>of</strong> employeesSalaries and wages comprise payments toemployees. Salaries and wages are recognised asan expense in the statement <strong>of</strong> financial performancewhen the payment is effected on thesystem (by no later than 31 March <strong>of</strong> each year).Capitalised compensation forms part <strong>of</strong> theexpenditure for capital assets in the statement <strong>of</strong>financial performance 1 .All other payments are classified as currentexpense.Social contributions include the employer's contributionto social insurance schemes paid onbehalf <strong>of</strong> the employee. Social contributions arerecognised as an expense in the statement <strong>of</strong>financial performance when the payment iseffected on the system.3.1.1 Short term employee benefitsShort term employee benefits comprise <strong>of</strong> leaveentitlements (including capped leave), thirteenthcheques and performance bonuses. The cost <strong>of</strong>short-term employee benefits is expensed assalaries and wages in the statement <strong>of</strong> financialperformance when the payment is effected onthe system (by no later than 31 March <strong>of</strong> eachyear).Short-term employee benefits that give rise to apresent legal or constructive obligation are disclosedin the disclosure notes to the financialstatements. These amounts are not recognised inthe statement <strong>of</strong> financial performance.3.1.2 Long-term employee benefits3.1.2.1 Termination benefitsTermination benefits such as severance packagesare recognised as an expense in the statement <strong>of</strong>financial performance as a transfer (to households)when the payment is effected on the system(by no later than 31 March <strong>of</strong> each year).3.1.2.2 Post employment retirement benefitsThe department provides medical benefits forcertain <strong>of</strong> its employees. Employer contributionsto the medical funds are expensed when the paymentto the fund is effected on the system (by nolater than 31 March <strong>of</strong> each year).3.2 Goods and servicesPayments made for goods and/or services arerecognised as an expense in the statement <strong>of</strong>financial performance when the payment iseffected on the system (by no later than 31 March<strong>of</strong> each year). The expense is classified as capitalif the goods and services were used for a capitalproject or an asset <strong>of</strong> R5000 or more is purchased.All assets costing less than R5000 willalso be reflected under goods and services.3.3 Interest and rent on landInterest and rental payments are recognised asan expense in the statement <strong>of</strong> financial performancewhen the payment is effected on thesystem (by no later than 31 March <strong>of</strong> each year).This item excludes rental for the use <strong>of</strong> buildingsor other fixed structures. If it is not possible todistinguish between payment for the use <strong>of</strong> landand the fixed structures on it, the whole amountshould be recorded under goods and services.3.4 Financial transactions in assets and liabilitiesDebts are written <strong>of</strong>f when identified as irrecoverable.Debts written <strong>of</strong>f are limited to theamount <strong>of</strong> savings and/or underspending <strong>of</strong>appropriated funds. The write-<strong>of</strong>f occurs at yearendor when funds are available. No provision ismade for irrecoverable amounts, but amountsare disclosed as a disclosure note.Forex losses are recognised on payment <strong>of</strong> funds.All other losses are recognised when authorisationhas been granted for the recognition there<strong>of</strong>.3.5 Unauthorised expenditureWhen discovered unauthorised expenditure isrecognised as an asset in the statement <strong>of</strong> financialposition until such time as the expenditure iseither approved by the relevant authority, recov-1This accounting policy is only relevant where the department elects to capitalise the compensation paid to employees involved oncapital projects.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 201
D EPARTMENT OF D EFENCE, VOTE 21ACCOUNTING POLICIESfor the year ended 31 March 20<strong>07</strong> (continued)Accounting Policiesered from the responsible person or written-<strong>of</strong>fas irrecoverable in the statement <strong>of</strong> financialperformance.Unauthorised expenditure approved with fundingis recognised in the statement <strong>of</strong> financialperformance when the unauthorised expenditureis approved and the related funds arereceived. Where the amount is approved withoutfunding it is recognised as expenditure, subjectto availability <strong>of</strong> savings, in the statement <strong>of</strong>financial performance on the date <strong>of</strong> approval.3.6 Fruitless and wasteful expenditureFruitless and wasteful expenditure is recognisedas an asset in the statement <strong>of</strong> financial positionuntil such time as the expenditure is recoveredfrom the responsible person or written-<strong>of</strong>f asirrecoverable in the statement <strong>of</strong> financial performance.3.7 Irregular expenditureIrregular expenditure is recognised as expenditurein the statement <strong>of</strong> financial performance.If the expenditure is not condoned by the relevantauthority it is treated as an asset until it isrecovered or written <strong>of</strong>f as irrecoverable.3.8 Transfers and subsidiesTransfers and subsidies are recognised as anexpense when the payment is effected on thesystem (by no later than 31 March <strong>of</strong> each year).3.9 Expenditure for capital assets4. AssetsPayments made for capital assets are recognisedas an expense in the statement <strong>of</strong> financial performancewhen the payment is effected on thesystem (by no later than 31 March <strong>of</strong> each year).the statement <strong>of</strong> financial position when the paymentsare made.4.3 Receivables4.4 LoansReceivables included in the statement <strong>of</strong> financialposition arise from cash payments made thatare recoverable from another party.Revenue receivable not yet collected is includedin the disclosure notes. Amounts that are potentiallyirrecoverable are included in the disclosurenotes.Loans are recognised in the statement <strong>of</strong> financialposition at the nominal amount when cash ispaid to the beneficiary. Loan balances arereduced when cash repayments are receivedfrom the beneficiary. Amounts that are potentiallyirrecoverable are included in disclosurenote 29.4.5 InventoryInventories purchased during the financial yearare disclosed at cost in the notes.4.6 Capital assetsA capital asset is recorded on receipt <strong>of</strong> the itemat cost. Cost <strong>of</strong> an asset is defined as the totalcost <strong>of</strong> acquisition. Where the cost cannot bedetermined accurately, the capital asset may bestated at fair value. Where fair value cannot bedetermined, the capital asset is included in theasset register at R1.Projects (<strong>of</strong> construction/development) runningover more than one financial year relating toassets, are only capitalised as assets on completion<strong>of</strong> the project and at the total cost incurredover the duration <strong>of</strong> the project.4.1 Cash and cash equivalentsCash and cash equivalents are carried in thestatement <strong>of</strong> financial position at cost.For the purposes <strong>of</strong> the cash flow statement,cash and cash equivalents comprise cash onhand, deposits held, other short-term highly liquidinvestments and bank overdrafts.4.2 Prepayments and advancesAmounts prepaid or advanced are recognised inDisclosure Notes 30 and 31 reflect the totalmovement in the asset register for the currentfinancial year.5. Liabilities5.1 PayablesRecognised payables mainly comprise <strong>of</strong>amounts owing to other governmental entities.These payables are recognised at historical costin the statement <strong>of</strong> financial position.202DEPARTMENT OF DEFENCE
D EPARTMENT OF D EFENCE, VOTE 21ACCOUNTING POLICIESfor the year ended 31 March 20<strong>07</strong> (continued)5.2 Lease commitmentsLease commitments represent amounts owingfrom the reporting date to the end <strong>of</strong> the leasecontract. These commitments are not recognisedin the statement <strong>of</strong> financial position as a liabilityor as expenditure in the statement <strong>of</strong> financialperformance but are included in the disclosurenotes.Operating and finance lease commitments areexpensed when the payments are made. Assetsacquired in terms <strong>of</strong> finance lease agreementsare disclosed in the annexures and disclosurenotes to the financial statements.5.3 AccrualsAccruals represent goods/services that havebeen received, but where no invoice has beenreceived from the supplier at the reporting date,or where an invoice has been received but finalauthorisation for payment has not been effectedon the system.Accruals are not recognised in the statement <strong>of</strong>financial position as a liability or as expenditurein the statement <strong>of</strong> financial performance but areincluded in the disclosure notes.5.4 Contingent liabilitiesA contingent liability is a possible obligation thatarises from past events and whose existence willbe confirmed only by the occurrence or nonoccurrence<strong>of</strong> one or more uncertain futureevents not wholly within the control <strong>of</strong> thedepartment; orA contingent liability is a present obligation thatarises from past events but is not recognisedbecause:● It is not probable that an outflow <strong>of</strong> resourcesembodying economic benefits or servicepotential will be required to settle the obligation;or● The amount <strong>of</strong> the obligation cannot bemeasured with sufficient reliability.Contingent liabilities are included in the disclosurenotes.5.5 CommitmentsCommitments represent goods/services thathave been approved and/or contracted, butwhere no delivery has taken place at the reportingdate.Commitments are not recognised in the statement<strong>of</strong> financial position as a liability or asexpenditure in the statement <strong>of</strong> financial performancebut are included in the disclosurenotes.6. Net Assets6.1 Recoverable revenueAmounts are recognised as recoverable revenuewhen a payment made in a previous financialyear becomes recoverable from a debtor in thecurrent financial year.7. Related party transactionsRelated parties are departments that control orsignificantly influence entities in making financialand operating decisions. Specific informationwith regards to the type <strong>of</strong> related partytransactions that have occurred between thedepartment and the related party where theMinister <strong>of</strong> <strong>Defence</strong> is identified as the intermediarybetween the relevant parties, is included inthe disclosure notes.8. Key management personnelKey management personnel are those personshaving the authority and responsibility for planning,directing and controlling the activities <strong>of</strong>the department.Compensation paid to key management personnelincluding their family members where relevant,is included in the disclosure notes.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 203
Financial StatementsD EPARTMENT OF D EFENCE, VOTE 21APPROPRIATION STATEMENTfor the year ended 31 March 20<strong>07</strong>AdjustedAppropriationR’000Shifting <strong>of</strong>FundsR’000Appropriation per ProgrammeVirementR’000<strong>2006</strong>/<strong>07</strong> 2005/06FinalAppropriationR’000ActualExpenditureR’000VarianceR’000Expenditureas % <strong>of</strong> finalappropriation%FinalAppropriationR’000ActualExpenditureR’0001 748 62921510 305---30 79916 6325 3211 779 42816 84715 6261 721 34516 84715 62658 083--96.7%100.0%100.0%761 0259 00514 559760 8899 00514 5594 052 4771 4417 129---(171 255)44 12657 4043 881 22245 56764 5333 879 42145 56764 5331 801--100.0%100.0%100.0%3 383 81829 <strong>07</strong>224 2793 378 43729 <strong>07</strong>224 2792 480 94138523 162---(48 878)37 25621 0272 432 06337 64144 1892 432 06337 64144 189---100.0%100.0%100.0%2 431 66511 15436 6362 431 66511 15436 6361 299 68236319 128---(45 626)21 65216 6411 254 05622 01535 7691 254 05622 01535 769---100.0%100.0%100.0%1 158 0489 24134 1301 158 0489 24134 1301 640 13440143 287---(47 543)23 48444 3441 592 59123 88587 6311 592 59123 88587 631---100.0%100.0%100.0%1 489 6859 77057 4511 489 6859 77057 451140 296673 299---2 0391 960(167)142 3352 0273 132142 3352 0273 132---100.0%100.0%100.0%136 9213 1764 219136 9213 1764 2192 219 672408 038112 970---(125 456)37 12719 1932 094 216445 165132 1632 094 216444 6531<strong>07</strong> 239-51224 924100.0%99.9%81.1%1 859 689381 514132 8941 859 689381 395132 894chapter 13programme 1204ProgrammeDEPARTMENT OF DEFENCE1. AdministrationCurrent paymentTransfers and subsidiesPayment for capital assets2. Landward <strong>Defence</strong>Current paymentTransfers and subsidiesPayment for capital assets3. Air <strong>Defence</strong>Current paymentTransfers and subsidiesPayment for capital assets4. Maritime <strong>Defence</strong>Current paymentTransfers and subsidiesPayment for capital assets5. Military Health SupportCurrent paymentTransfers and subsidiesPayment for capital assets6. <strong>Defence</strong> IntelligenceCurrent paymentTransfers and subsidiesPayment for capital assets7. Joint SupportCurrent paymentTransfers and subsidiesPayment for capital assets
D EPARTMENT OF D EFENCE, VOTE 21APPROPRIATION STATEMENTfor the year ended 31 March 20<strong>07</strong> (continued)Programme8. Command and ControlCurrent paymentTransfers and subsidiesPayment for capital assets9. Special <strong>Defence</strong> AccountTransfers and subsidiesTotalAdjustedAppropriationR'0001 331 1165978 9708 280 73823 902 904Shifting <strong>of</strong>FundsR’000---VirementR’00053 3289 405(2 813)--FinalAppropriationR’0001 384 4449 46476 1578 280 73823 902 904ActualExpenditureR’0001 384 4449 46476 1578 280 73823 817 584VarianceR’000-85 320-----Appropriation per Programme<strong>2006</strong>/<strong>07</strong> 2005/06Expenditureas % <strong>of</strong> finalappropriation%100.0%100.0%100.0%100.0%99.6%FinalAppropriationR’0001 321 0444 195108 4539 258 83922 670 482ActualExpenditureR’0001 321 0444 195108 4539 258 83922 664 846Reconciliation with Statement <strong>of</strong> Financial PerformanceAdd: <strong>Department</strong>al receiptsLocal and foreign aid assistanceActual amounts per Statement <strong>of</strong> Financial Performance (Total Revenue)Add: Local and foreign aid assistanceActual amounts per Statement <strong>of</strong> Financial Performance Expenditure492 792-24 395 69611 24023 828 824729 13638 75023 438 36827 51022 692 356ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 205
Financial StatementsD EPARTMENT OF D EFENCE, VOTE 21APPROPRIATION STATEMENTfor the year ended 31 March 20<strong>07</strong> (continued)AdjustedAppropriationR’000Shifting <strong>of</strong>FundsR’000Appropriation per Economic ClassificationVirementR’000<strong>2006</strong>/<strong>07</strong> 2005/06FinalAppropriationR’000ActualExpenditureR’000VarianceR’000Expenditureas % <strong>of</strong> finalappropriation%FinalAppropriationR’000ActualExpenditureR’0009 085 9855 826 962----(48 390)(322 159)17 9579 037 5955 504 80317 9579 037 5955 444 91917 957-59 884-100.0%98.9%100.0%8 196 3524 245 435100 1088 196 3524 239 918100 1083 6998 288 671396 286---268--3 9678 288 671396 2863 9678 288 458396 286-213-100.0%100.0%100.0%15 1449 265 940359 51515 1449 265 940359 5153 051----191 3743 051191 3742 752191 374299-90.2%100.0%2 91172 4562 79272 45674 097222 5981 55523 902 904-----161 222(272)-74 097383 8201 28323 902 90449 173383 8201 28323 817 58424 924--85 32066.4%100.0%100.0%99.6%73 884336 1732 56422 670 482chapter 13programme 173 884336 1732 56422 664 846206DEPARTMENT OF DEFENCECurrent paymentsCompensation to employeesGoods and servicesFinancial transactions in assets andliabilitiesTransfers and subsidiesProvinces and municipalities<strong>Department</strong>al agencies and accountsPublic corporations and private enterprisesNon-pr<strong>of</strong>it institutionsHouseholdsPayments on capital assetsBuildings and other fixed structuresMachinery and equipmentS<strong>of</strong>tware and other intangible assetsTotal
Programme per subprogramme1.1 MinisterCurrent payment1.2 Deputy MinisterCurrent payment1.3 Political DirectionCurrent paymentTransfers and subsidiesPayment for capital assets1.4 <strong>Department</strong>al DirectionCurrent paymentTransfers and subsidiesPayment for capital assets1.5 Policy and PlanningCurrent paymentTransfers and subsidiesPayment for capital assets1.6 Financial ServicesCurrent paymentTransfers and subsidiesPayment for capital assets1.7 Human Resources SupportServicesCurrent paymentTransfers and subsidiesPayment for capital assetsD EPARTMENT OF D EFENCE, VOTE 21DETAIL PER PROGRAMME 1 - ADMINISTRATIONfor the year ended 31 March 20<strong>07</strong>AdjustedAppropriationR’000Shifting <strong>of</strong>FundsR’000VirementR’000<strong>2006</strong>/<strong>07</strong> 2005/06FinalAppropriationR’000ActualExpenditureR’000VarianceR’000Expenditureas % <strong>of</strong> finalappropriation%FinalAppropriationR’000ActualExpenditureR’000887--887887- 100.0%843843721--721721- 100.0%68568512 5334232---1 708648414 2411<strong>07</strong>1614 2411<strong>07</strong>16---100.0%100.0%100.0%12 3921458612 2561458612 9002161---(125)-1 00312 77521 16412 77521 164---100.0%100.0%100.0%10 052637710 052637774 57818412---(16 248)2 18620858 3302 20462058 3302 204620---100.0%100.0%100.0%53 8561 32693353 8561 326933183 31012835(22 198)2 3811 535161 1122 3932 370161 1122 3932 370------100.0%100.0%100.0%151 6081 0833 140151 6081 0833 140194 447802 55770 2856 30554264 7326 3852 611264 7326 3852 611------100.0%100.0%100.0%275 7<strong>07</strong>2 0901 938275 7<strong>07</strong>2 0901 938ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 2<strong>07</strong>
Financial StatementsD EPARTMENT OF D EFENCE, VOTE 21DETAIL PER PROGRAMME 1 - ADMINISTRATIONfor the year ended 31 March 20<strong>07</strong> (continued)AdjustedAppropriationR’000Shifting <strong>of</strong>FundsR’000VirementR’000<strong>2006</strong>/<strong>07</strong> 2005/06FinalAppropriationR’000ActualExpenditureR’000VarianceR’000Expenditureas % <strong>of</strong> finalappropriation%FinalAppropriationR’000ActualExpenditureR’00080 381422 621---(4 343)2 5292176 0382 5712 64276 0382 5712 642---100.0%100.0%100.0%71 1257471 69371 1257471 69341 312181 740---(7 155)41(51)34 157591 68934 157591 689---100.0%100.0%100.0%33 9547082 23833 9547082 23840 70216175---(901)73136039 80174753539 801747535---100.0%100.0%100.0%36 8122 00465636 8122 00465621 4998124---(2 365)(2)16919 134629319 1346293---100.0%100.0%100.0%17 3518147817 351814786 6482170(621)89176 0278931776 027893177------100.0%100.0%100.0%5 4952923385 4952923384 469236777-935 24621295 2462129------100.0%100.0%100.0%chapter 134 4306824 430682programme 1208Programme per subprogrammeDEPARTMENT OF DEFENCE1.8 Legal ServicesCurrent paymentTransfers and subsidiesPayment for capital assets1.9 Inspection ServicesCurrent paymentTransfers and subsidiesPayment for capital assets1.10 Acquisition ServicesCurrent paymentTransfers and subsidiesPayment for capital assets1.11 Corporate CommunicationsCurrent paymentTransfers and subsidiesPayment for capital assets1.12 SANDF Command andControlCurrent paymentTransfers and subsidiesPayment for capital assets1.13 Religious ServicesCurrent paymentTransfers and subsidiesPayment for capital assets
Programme per subprogramme1.14 Reserve ComponentCurrent paymentTransfers and subsidiesPayment for capital assets1.15 <strong>Defence</strong> Foreign RelationsCurrent paymentTransfers and subsidiesPayment for capital assets1.16 Property ManagementCurrent paymentTransfers and subsidiesPayment for capital assets1.17 Authorised LossesCurrent payment1.18 IncomeCurrent paymentTotalD EPARTMENT OF D EFENCE, VOTE 21DETAIL PER PROGRAMME 1 - ADMINISTRATIONfor the year ended 31 March 20<strong>07</strong> (continued)AdjustedAppropriationR’000Shifting <strong>of</strong>FundsR’000VirementR’000<strong>2006</strong>/<strong>07</strong> 2005/06FinalAppropriationR’000ActualExpenditureR’000VarianceR’000Expenditureas % <strong>of</strong> finalappropriation%FinalAppropriationR’000ActualExpenditureR’00010 410-42---(3 103)3257 3<strong>07</strong>3677 3<strong>07</strong>367---100.0%100.0%100.0%8 331613138 3316131364 431111 200---4 6221 5611 41369 0531 5722 61369 0531 5722 613---100.0%100.0%100.0%63 390352 08763 390352 087999 401--------999 401--941 318--58 083--94.2%0.0%0.0%-------- 11 636 11 636 11 636- 100.0% 16 505 16 505-- (1 170) (1 170) (1 170)- 100.0% (1 511) (1 511)1 759 149- 52 752 1 811 901 1 753 818 58 083 96.8% 784 589 784 453ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 209
Financial StatementsD EPARTMENT OF D EFENCE, VOTE 21DETAIL PER PROGRAMME 1 - ADMINISTRATIONfor the year ended 31 March 20<strong>07</strong> (continued)AdjustedAppropriationR’000Shifting <strong>of</strong>FundsR’000VirementR’000<strong>2006</strong>/<strong>07</strong> 2005/06FinalAppropriationR’000ActualExpenditureR’000VarianceR’000Expenditureas % <strong>of</strong> finalappropriation%FinalAppropriationR’000ActualExpenditureR’000548 5611 200 068----26 872(7 709)11 636575 4331 192 35911 636575 4331 134 27611 636-58 083-100.0%95.1%100.0%580 600163 92016 505580 600163 78416 505215-(11)16 64320416 64320416 643----100.0%100.0%8778 1288778 12810 263421 759 149---5 363(42)52 75215 626-1 811 90115 626-1 753 818--58 083100.0%0.0%96.8%chapter 1314 53128784 58914 53128784 453programme 1210Economic classificationDEPARTMENT OF DEFENCECurrent paymentsCompensation <strong>of</strong> employeesGoods and servicesFinancial transactions in assets andliabilitiesTransfers and subsidiesProvinces and municipalitiesHouseholdsPayments for capital assetsMachinery and equipmentS<strong>of</strong>tware and other intangible assetsTotal
Programme per subprogramme2.1 Strategic DirectionCurrent paymentTransfers and subsidiesPayment for capital assets2.2 Infantry CapabilityCurrent paymentTransfers and subsidiesPayment for capital assets2.3 Armour CapabilityCurrent paymentTransfers and subsidiesPayment for capital assets2.4 Artillery CapabilityCurrent paymentTransfers and subsidiesPayment for capital assets2.5 Air <strong>Defence</strong> ArtilleryCapabilityCurrent paymentTransfers and subsidiesPayment for capital assets2.6 Engineering CapabilityCurrent paymentTransfers and subsidiesPayment for capital assets2.7 Operational IntelligenceCurrent paymentTransfers and subsidiesPayment for capital assetsD EPARTMENT OF D EFENCE, VOTE 21DETAIL PER PROGRAMME 2 - LANDWARD DEFENCEfor the year ended 31 March 20<strong>07</strong>AdjustedAppropriationR’000Shifting <strong>of</strong>FundsR’000VirementR’000<strong>2006</strong>/<strong>07</strong> 2005/06FinalAppropriationR’000ActualExpenditureR’000VarianceR’000Expenditureas % <strong>of</strong> finalappropriation%FinalAppropriationR’000ActualExpenditureR’000124 378298---(8 360)5 515473116 0185 544481116 0185 544481---100.0%100.0%100.0%117 4935 48613 856112 1125 48613 8561 520 44466713---(142)10 4694 8531 520 30211 1364 8661 518 50111 1364 8661 801--99.9%100.0%100.0%1 398 2397 7191 6051 398 2397 7191 605141 6775924---1 3172 091390142 9942 150414142 9942 150414---100.0%100.0%100.0%125 574717125125 574717125124 75540227762 591656124 8312 631883124 8312 631883------100.0%100.0%100.0%105 64222478105 6422247893 97349-(1 757)1 2531 18292 2161 3021 18292 2161 3021 182------100.0%100.0%100.0%85 0<strong>07</strong>46222085 0<strong>07</strong>462220233 06896323(26 113)3 560928206 9553 6561 251206 9553 6561 251------100.0%100.0%100.0%178 5541 721246178 5541 72124677 5362679(7 024)8149970 51284017870 512840178------100.0%100.0%100.0%59 5798053759 57980537ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 211
Programme per subprogramme2.8 Command and ControlCapabilityCurrent paymentTransfers and subsidiesPayment for capital assets2.9 Support CapabilityCurrent paymentTransfers and subsidiesPayment for capital assets2.10 General Training CapabilityCurrent paymentTransfers and subsidiesPayment for capital assets2.11 <strong>Defence</strong> CommitmentsCurrent paymentPayment for capital assets2.12 Authorised LossesCurrent payment2.13 Internal ServicesCurrent payment2.14 IncomeCurrent paymentTotalFinancial StatementsD EPARTMENT OF D EFENCE, VOTE 21DETAIL PER PROGRAMME 2 - LANDWARD DEFENCEfor the year ended 31 March 20<strong>07</strong> (continued)AdjustedAppropriationR’000Shifting <strong>of</strong>FundsR’000VirementR’000<strong>2006</strong>/<strong>07</strong> 2005/06FinalAppropriationR’000ActualExpenditureR’000VarianceR’000Expenditureas % <strong>of</strong> finalappropriation%FinalAppropriationR’000ActualExpenditureR’00061 77329165---2 1534 1445 06863 9264 1735 23363 9264 1735 233---100.0%100.0%100.0%56 6582161<strong>07</strong>56 6582161<strong>07</strong>1 472 8054065 692---(71 470)11 12943 6391 401 33511 53549 3311 401 33511 53549 331---100.0%100.0%100.0%1 214 19910 8086 4551 214 19910 8086 455202 06840598---(51 358)2 560116150 7102 60<strong>07</strong>14150 7102 60<strong>07</strong>14---100.0%100.0%100.0%134 8609141 534134 8609141 534----3 744-3 744-3 744---100.0%0.0%11 1951611 19516-- 4 173 4 173 4 173- 100.0% 20 175 20 175-- (15 156) (15 156) (15 156)- 100.0% (121 911) (121 911)-- (1 338) (1 338) (1 338)- 100.0% (1 446) (1 446)4 061 047- (69 725) 3 991 322 3 989 521 1 801 100.0% 3 437 169 3 431 788212DEPARTMENT OF DEFENCE
Economic classificationCurrent paymentsCompensation <strong>of</strong> employeesGoods and servicesFinancial transactions in assets andliabilitiesTransfers and subsidiesProvinces and municipalitiesHouseholdsPayment for capital assetsMachinery and equipmentS<strong>of</strong>tware and other intangible assetsTotalD EPARTMENT OF D EFENCE, VOTE 21DETAIL PER PROGRAMME 2 - LANDWARD DEFENCEfor the year ended 31 March 20<strong>07</strong> (continued)AdjustedAppropriationR’000Shifting <strong>of</strong>FundsR’000VirementR’000<strong>2006</strong>/<strong>07</strong> 2005/06FinalAppropriationR’000ActualExpenditureR’000VarianceR’000Expenditureas % <strong>of</strong> finalappropriation%FinalAppropriationR’000ActualExpenditureR’0003 238 044814 433----(86 576)(88 852)4 1733 151 468725 5814 1733 151 468723 7804 173-1 801-100.0%99.8%100.0%2 800 756562 88720 1752 800 756557 50620 1751 441-9444 0321 53544 0321 53544 032----100.0%100.0%5 88123 1915 88123 1917 083464 061 047---57 426(22)(69 725)64 509243 991 32264 509243 989 521--1 801100.0%100.0%99.9%24 217623 437 16924 217623 431 788ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 213
Programme per subprogramme3.1 Strategic DirectionCurrent paymentTransfers and subsidiesPayment for capital assets3.2 Operational DirectionCurrent paymentTransfers and subsidiesPayment for capital assets3.3 Helicopter CapabilityCurrent paymentTransfers and subsidiesPayment for capital assets3.4 Transport and MaritimeCapabilityCurrent paymentTransfers and subsidiesPayment for capital assets3.5 Air Combat andReconnaissance CapabilityCurrent paymentTransfers and subsidiesPayment for capital assets3.6 Operational Support andIntelligence CapabilityCurrent paymentTransfers and subsidiesPayment for capital assetsFinancial StatementsD EPARTMENT OF D EFENCE, VOTE 21DETAIL PER PROGRAMME 3 - AIR DEFENCEfor the year ended 31 March 20<strong>07</strong>AdjustedAppropriationR’000Shifting <strong>of</strong>FundsR’000VirementR’000<strong>2006</strong>/<strong>07</strong> 2005/06FinalAppropriationR’000ActualExpenditureR’000VarianceR’000Expenditureas % <strong>of</strong> finalappropriation%FinalAppropriationR’000ActualExpenditureR’00011 910-1 <strong>07</strong>3---(532)17(1)11 378171 <strong>07</strong>211 378171 <strong>07</strong>2---100.0%100.0%100.0%11 398977911 398977940 44162 737---98 572(6)(2 058)139 013-679139 013-679---100.0%0.0%100.0%155 199-1 926155 199-1 926277 764272 209---1 5387791 028279 3028063 237279 3028063 237---100.0%100.0%100.0%303 <strong>07</strong>33382 380303 <strong>07</strong>33382 380215 796354 622(3 228)1 960(2 203)212 5681 9952 419212 5681 9952 419------100.0%100.0%100.0%192 7506211 044192 7506211 044229 100231 146(33 971)7044 985195 1297276 131195 1297276 131------100.0%100.0%100.0%234 5272104 272234 5272104 272114 058472 354(4 592)735(814)109 4667821 540109 4667821 540------100.0%100.0%100.0%104 4763084 388104 4763084 388214DEPARTMENT OF DEFENCE
Programme per subprogramme3.7 Command and ControlCapabilityCurrent paymentTransfers and subsidiesPayment for capital assets3.8 Base Support CapabilityCurrent paymentTransfers and subsidiesPayment for capital assets3.9 Command PostCurrent paymentTransfers and subsidiesPayment for capital assets3.10 Training CapabilityCurrent paymentTransfers and subsidiesPayment for capital assets3.11 Technical Support ServicesCurrent paymentTransfers and subsidiesPayment for capital assets3.12 Authorised LossesCurrent payment3.13 Internal ServicesCurrent payment3.14 IncomeCurrent paymentTotalD EPARTMENT OF D EFENCE, VOTE 21DETAIL PER PROGRAMME 3 - AIR DEFENCEfor the year ended 31 March 20<strong>07</strong> (continued)AdjustedAppropriationR’000Shifting <strong>of</strong>FundsR’000VirementR’000<strong>2006</strong>/<strong>07</strong> 2005/06FinalAppropriationR’000ActualExpenditureR’000VarianceR’000Expenditureas % <strong>of</strong> finalappropriation%FinalAppropriationR’000ActualExpenditureR’000151 17731405---(3 617)2736 568147 5603046 973147 5603046 973---100.0%100.0%100.0%143 2675793 402143 2675793 402759 451951 214---(11 066)25 1354 973748 38525 2306 187748 38525 2306 187---100.0%100.0%100.0%699 9967 0653 690699 9967 0653 69023 62812856---39 0661 821( 23)62 6941 83383362 6941 833833---100.0%100.0%100.0%39 6733581539 67335815211 37962884---(21 363)1 6695 208190 0161 7316 092190 0161 7316 092---100.0%100.0%100.0%166 4731 2871 875166 4731 2871 875446 237475 662---6294 1693 364446 8664 2169 026446 8664 2169 026---100.0%100.0%100.0%493 91870212 065493 91870212 065-- 1 464 1 464 1 464- 100.0%721721-- (108 874) (108 874) (108 874)- 100.0% (110 350) (110 350)-2 504 488--(2 904)9 405(2 904)2 513 893(2 904)2 513 893--100.0%100.0%(3 456)2 479 455(3 456)2 479 455ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 215
Economic classificationCurrent paymentsCompensation <strong>of</strong> employeesGoods and servicesFinancial transactions in assets andliabilitiesTransfers and subsidiesProvinces and municipalitiesHouseholdsPayment for capital assetsMachinery and equipmentS<strong>of</strong>tware and other intangible assetsTotalFinancial StatementsD EPARTMENT OF D EFENCE, VOTE 21DETAIL PER PROGRAMME 3 - AIR DEFENCEfor the year ended 31 March 20<strong>07</strong> (continued)AdjustedAppropriationR’000Shifting <strong>of</strong>FundsR’000VirementR’000<strong>2006</strong>/<strong>07</strong> 2005/06FinalAppropriationR’000ActualExpenditureR’000VarianceR’000Expenditureas % <strong>of</strong> finalappropriation%FinalAppropriationR’000ActualExpenditureR’0001 319 2021 161 739-40 542(90 884)1 4641 359 7441 <strong>07</strong>0 8551 4641 359 7441 <strong>07</strong>0 8551 464------100.0%100.0%100.0%1 240 0661 190 8797211 240 0661 190 879721385-21237 04459737 04459737 044----100.0%100.0%2 2938 8602 2938 86023 162-2 504 48820 6393889 40543 8013882 513 89343 8013882 513 893------100.0%100.0%100.0%34 9311 7052 479 45534 9311 7052 479 455216DEPARTMENT OF DEFENCE
Programme per subprogramme4.1 Maritime DirectionCurrent paymentTransfers and subsidiesPayment for capital assets4.2 Maritime Combat CapabilityCurrent paymentTransfers and subsidiesPayment for capital assets4.3 Maritime Logistic SupportCapabilityCurrent paymentTransfers and subsidiesPayment for capital assets4.4 Maritime Training CapabilityCurrent paymentTransfers and subsidiesPayment for capital assets4.5 Base Support CapabilityCurrent paymentTransfers and subsidiesPayment for capital assets4.6 Authorised LossesCurrent payment4.7 IncomeCurrent paymentTotalD EPARTMENT OF D EFENCE, VOTE 21DETAIL PER PROGRAMME 4 - MARITIME DEFENCEfor the year ended 31 March 20<strong>07</strong>AdjustedAppropriationR’000Shifting <strong>of</strong>FundsR’000VirementR’000<strong>2006</strong>/<strong>07</strong> 2005/06FinalAppropriationR’000ActualExpenditureR’000VarianceR’000Expenditureas % <strong>of</strong> finalappropriation%FinalAppropriationR’000ActualExpenditureR’000330 7063632 130---(67 696)11 <strong>07</strong>8(539)263 01011 4411 591263 01011 4411 591---100.0%100.0%100.0%276 3015 2787 383276 3015 2787 383403 223-15 017---(36 962)4426 528366 26144221 545366 26144221 545---100.0%100.0%100.0%315 7992376 514315 7992376 514171 104-476---7 2042 5499 385178 3082 5499 861178 3082 5499 861---100.0%100.0%100.0%170 1617384 140170 1617384 14098 <strong>07</strong>1-148---34 5772 117(134)132 6482 11714132 6482 11714---100.0%100.0%100.0%105 1847852 473105 1847852 473296 578-1 357---17 2435 4661 401313 8215 4662 758313 8215 4662 758---100.0%100.0%100.0%291 6542 20313 620291 6542 20313 620--312312312- 100.0%353353-1 319 173(304)(7 333)(304)1 311 840(304)1 311 840----100.0%100.0%(1 404)1 201 419(1 404)1 201 419ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 217
Economic classificationCurrent paymentsCompensation <strong>of</strong> employeesGoods and servicesFinancial transactions in assets andliabilitiesTransfers and subsidiesProvinces and municipalitiesHouseholdsPayment for capital assetsMachinery and equipmentS<strong>of</strong>tware and other intangible assetsTotalFinancial StatementsD EPARTMENT OF D EFENCE, VOTE 21DETAIL PER PROGRAMME 4 - MARITIME DEFENCEfor the year ended 31 March 20<strong>07</strong> (continued)AdjustedAppropriationR’000Shifting <strong>of</strong>FundsR’000VirementR’000<strong>2006</strong>/<strong>07</strong> 2005/06FinalAppropriationR’000ActualExpenditureR’000VarianceR’000Expenditureas % <strong>of</strong> finalappropriation%FinalAppropriationR’000ActualExpenditureR’000800 262499 420-(19 806)(26 132)312780 456473 288312780 456473 288312------100.0%100.0%100.0%739 288418 4<strong>07</strong>353739 288418 4<strong>07</strong>353363-(75)21 72728821 72728821 727----100.0%100.0%1 1338 1081 1338 10818 3587701 319 17316 716(75)(7 333)35 <strong>07</strong>46951 311 84035 <strong>07</strong>46951 311 840------100.0%100.0%100.0%33 4586721 201 41933 4586721 201 419218DEPARTMENT OF DEFENCE
D EPARTMENT OF D EFENCE, VOTE 21DETAIL PER PROGRAMME 5 - MILITARY HEALTH SUPPORTfor the year ended 31 March 20<strong>07</strong>Programme per subprogrammeAdjustedAppropriationR’000Shifting <strong>of</strong>FundsR’000VirementR’000<strong>2006</strong>/<strong>07</strong> 2005/06FinalAppropriationR’000ActualExpenditureR’000VarianceR’000Expenditureas % <strong>of</strong> finalappropriation%FinalAppropriationR’000ActualExpenditureR’0005.1 Strategic DirectionCurrent paymentTransfers and subsidiesPayment for capital assets5.2 Military Health SupportCurrent paymentTransfers and subsidiesPayment for capital assets5.3 Area Military Health ServiceCurrent paymentTransfers and subsidiesPayment for capital assets5.4 Specialist Tertiary HealthServiceCurrent paymentTransfers and subsidiesPayment for capital assets5.5 Product Support CapabilityCurrent paymentTransfers and subsidiesPayment for capital assets5.6 Base Support CapabilityCurrent paymentTransfers and subsidiesPayment for capital assets96 053252 34251 184-4 783608 95421712 3685<strong>07</strong> 38515910 757141 142-3 828123 783-7 353---(14 090)3 6971159 483637(2 229)(12 793)7 43823 54550 4965 95610 900(37 231)4451 <strong>07</strong>9(25 0<strong>07</strong>)3 29211 35381 9633 7222 45760 6676372 554596 1617 65535 913557 8816 11521 657103 9114454 9<strong>07</strong>98 7763 29218 70681 9633 7222 45760 6676372 554596 1617 65535 913557 8816 11521 657103 9114454 9<strong>07</strong>98 7763 29218 706---------------------------------100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%73 5291 3446 06356 27690516566 4493 73314 916551 8572 68811 19<strong>07</strong>8 6315012 86975 8599818 82373 5291 3446 06356 27690516566 4493 73314 916551 8572 68811 19<strong>07</strong>8 6315012 86975 8599818 823ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 219
Financial StatementsD EPARTMENT OF D EFENCE, VOTE 21DETAIL PER PROGRAMME 5 - MILITARY HEALTH SUPPORTfor the year ended 31 March 20<strong>07</strong> (continued)Programme per subprogrammeAdjustedAppropriationR’000Shifting <strong>of</strong>FundsR’000VirementR’000<strong>2006</strong>/<strong>07</strong> 2005/06FinalAppropriationR’000ActualExpenditureR’000VarianceR’000Expenditureas % <strong>of</strong> finalappropriation%FinalAppropriationR’000ActualExpenditureR’0005.7 Military Health TrainingCapabilityCurrent paymentTransfers and subsidiesPayment for capital assets5.8 Authorised LossesCurrent payment5.9 IncomeCurrent paymentTotal111 633-1 856--1 683 822----(11 600)2 019( 419)247(7 048)20 285100 0332 0191 437247(7 048)1 704 1<strong>07</strong>100 0332 0191 437247(7 048)1 704 1<strong>07</strong>--------100.0%100.0%100.0%100.0%100.0%100.0%90 9688843 <strong>07</strong>41 568(5 452)1 556 90690 9688843 <strong>07</strong>41 568(5 452)1 556 906220DEPARTMENT OF DEFENCE
D EPARTMENT OF D EFENCE, VOTE 21DETAIL PER PROGRAMME 5 - MILITARY HEALTH SUPPORTfor the year ended 31 March 20<strong>07</strong> (continued)Economic classificationCurrent paymentsCompensation <strong>of</strong> employeesGoods and servicesFinancial transactions in assets andliabilitiesTransfers and subsidiesProvinces and municipalitiesHouseholdsPayment for capital assetsMachinery and equipmentS<strong>of</strong>tware and other intangible assetsTotalAdjustedAppropriationR’0001 <strong>07</strong>9 509560 625-40142 9443431 683 822-Shifting <strong>of</strong>FundsR’000VirementR’000(16 460)(31 330)24713623 34844 619(275)20 285FinalAppropriationR’0001 063 049529 29524753723 34887 563681 704 1<strong>07</strong>ActualExpenditureR’0001 063 049529 29524753723 34887 563681 704 1<strong>07</strong>VarianceR’000----------------<strong>2006</strong>/<strong>07</strong> 2005/06Expenditureas % <strong>of</strong> finalappropriation%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%FinalAppropriationR’0001 032 892455 2251 5682 01<strong>07</strong> 76057 451-1 556 906ActualExpenditureR’0001 032 892455 2251 5682 01<strong>07</strong> 76057 451-1 556 906ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 221
Programme per subprogramme6.1 Strategic DirectionCurrent paymentTransfers and subsidies6.2 <strong>Defence</strong> Counter IntelligenceServicesCurrent paymentPayment for capital assets6.3 <strong>Defence</strong> Intelligence SupportCurrent paymentTransfers and subsidiesPayment for capital assets6.4 Authorised LossesCurrent payment6.5 IncomeCurrent paymentTotalFinancial StatementsD EPARTMENT OF D EFENCE, VOTE 21DETAIL PER PROGRAMME 6 - DEFENCE INTELLIGENCEfor the year ended 31 March 20<strong>07</strong>AdjustedAppropriationR’000Shifting <strong>of</strong>FundsR’000VirementR’000<strong>2006</strong>/<strong>07</strong> 2005/06FinalAppropriationR’000ActualExpenditureR’000VarianceR’000Expenditureas % <strong>of</strong> finalappropriation%FinalAppropriationR’000ActualExpenditureR’00013667--1 096(67)1 232-1 232---100.0%0.0%1 206781 206786 504960--(1 683)924 8211 0524 8211 052--100.0%100.0%5 7464235 746423133 656-2 339---2 6242 027( 259)136 2802 0272 080136 2802 0272 080---100.0%100.0%100.0%129 9573 0983 796129 9573 0983 796--222-100.0%1212--143 662---3 832-147 494-147 494--0.0%100.0%-144 316144 316222DEPARTMENT OF DEFENCE
Economic classificationCurrent paymentsCompensation <strong>of</strong> employeesGoods and servicesFinancial transactions in assets andliabilitiesTransfers and subsidiesProvinces and municipalitiesHouseholdsPayment for capital assetsMachinery and equipmentTotalD EPARTMENT OF D EFENCE, VOTE 21DETAIL PER PROGRAMME 6 - DEFENCE INTELLIGENCEfor the year ended 31 March 20<strong>07</strong> (continued)AdjustedAppropriationR’000Shifting <strong>of</strong>FundsR’000VirementR’000<strong>2006</strong>/<strong>07</strong> 2005/06FinalAppropriationR’000ActualExpenditureR’000VarianceR’000Expenditureas % <strong>of</strong> finalappropriation%FinalAppropriationR’000ActualExpenditureR’000120 16420 132-4 279(2 242)2124 44317 8902124 44317 8902------100.0%100.0%100.0%115 55921 35012115 55921 3501267-(4)1 964631 964631 964----100.0%100.0%2272 9492272 9493 299143 662(167)3 8323 132147 4943 132147 494----100.0%100.0%4 219144 3164 219144 316ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 223
Programme per subprogramme7.1 Strategic DirectionCurrent paymentTransfers and subsidiesPayment for capital assets7.2 Joint Logistic ServicesCurrent paymentTransfers and subsidiesPayment for capital assets7.3 Command and ManagementInformation ServicesCurrent paymentTransfers and subsidiesPayment for capital assets7.4 Military PoliceCurrent paymentTransfers and subsidiesPayment for capital assets7.5 Service CorpsCurrent paymentTransfers and subsidiesPayment for capital assets7.6 Acquisition ServicesCurrent paymentPayment for capital assetsFinancial StatementsD EPARTMENT OF D EFENCE, VOTE 21DETAIL PER PROGRAMME 7 - JOINT SUPPORTfor the year ended 31 March 20<strong>07</strong>AdjustedAppropriationR’000Shifting <strong>of</strong>FundsR’000VirementR’000<strong>2006</strong>/<strong>07</strong> 2005/06FinalAppropriationR’000ActualExpenditureR’000VarianceR’000Expenditureas % <strong>of</strong> finalappropriation%FinalAppropriationR’000ActualExpenditureR’0005 756322---(1 898)522003 858552223 85855222---100.0%100.0%100.0%3 5555163 555516786 36134589 171---(89 997)15 7464 917696 36416 09194 088696 36416 09169 164--24 924100.0%100.0%73.5%600 3914 60080 805600 3914 60080 805913 09524517 040---23 6109 5366 687936 7059 78123 727936 7059 78123 727---100.0%100.0%100.0%836 1602 31242 895836 1602 31242 895251 9101214 219---(38 897)6 1426 974213 0136 26311 193213 0136 26311 193---100.0%100.0%100.0%208 7513 1265 716208 7513 1265 71654 78819621---(12 569)2 152(281)42 2192 17134042 2192 171340---100.0%100.0%100.0%44 03788981644 037889816363---(67)132961329613--100.0%100.0%7142<strong>07</strong>1420224DEPARTMENT OF DEFENCE
Programme per subprogramme7.7 Joint TrainingCurrent paymentTransfers and subsidiesPayment for capital assets7.8 AssistanceCurrent paymentTransfers and subsidies7.9 <strong>Department</strong>al SupportCurrent paymentTransfers and subsidies7.10 British Military Advisory andTrainingCurrent payment7.11 Authorised LossesCurrent payment7.12 IncomeCurrent paymentTotalD EPARTMENT OF D EFENCE, VOTE 21DETAIL PER PROGRAMME 7 - JOINT SUPPORTfor the year ended 31 March 20<strong>07</strong> (continued)AdjustedAppropriationR’000Shifting <strong>of</strong>FundsR’000VirementR’000<strong>2006</strong>/<strong>07</strong> 2005/06FinalAppropriationR’000ActualExpenditureR’000VarianceR’000Expenditureas % <strong>of</strong> finalappropriation%FinalAppropriationR’000ActualExpenditureR’000104 5187 9681 897---30 7663 499683135 28411 4672 580135 28411 2542 580-213-100.0%98.1%100.0%121 2708 1572 626121 2708 1572 626-325-----325-252-730.0%77.5%-314-19596 423399 012--(35 561)-60 862399 01260 862398 786-226100.0%99.9%35 113362 11135 113362 1116 458- (834) 5 624 5 624- 100.0% 9 571 9 571--808080- 100.0%127127--2 740 680--(89)(69 136)(89)2 671 544(89)2 646 108-25 4360.0%99.0%-2 374 0972 374 097ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 225
Economic classificationCurrent paymentsCompensation to employeesGoods and servicesFinancial transactions in assets andliabilitiesTransfers and subsidiesProvinces and municipalities<strong>Department</strong>al agencies and accountsPublic corporations and privateenterprisesNon-pr<strong>of</strong>it institutionsHouseholdsPayment for capital assetsBuildings and other fixed structuresMachinery and equipmentS<strong>of</strong>tware and other intangible assetsTotalFinancial StatementsD EPARTMENT OF D EFENCE, VOTE 21DETAIL PER PROGRAMME 7 - JOINT SUPPORTfor the year ended 31 March 20<strong>07</strong> (continued)AdjustedAppropriationR’000Shifting <strong>of</strong>FundsR’000VirementR’000<strong>2006</strong>/<strong>07</strong> 2005/06FinalAppropriationR’000ActualExpenditureR’000VarianceR’000Expenditureas % <strong>of</strong> finalappropriation%FinalAppropriationR’000ActualExpenditureR’0001 364 179855 493-(79 215)(46 321)801 284 964809 172801 284 964809 17280------100.0%100.0%100.0%1 173 497686 0651271 173 497686 0651277687 933396 286---(137)--6317 933396 2866317 720396 286-213-100.0%97.3%100.0%2 3137 101359 5152 3137 101359 5153 051----37 2643 05137 2642 75237 264299-90.2%100.0%2 9119 6742 7929 67474 09738 5193542 740 680-----19 439(246)(69 136)74 09757 9581082 671 54449 17357 9581082 646 10824 924--25 43666.4%100.0%100.0%99.0%73 88458 947632 374 09773 88458 947632 373 978226DEPARTMENT OF DEFENCE
D EPARTMENT OF D EFENCE, VOTE 21DETAIL PER PROGRAMME 8 - COMMAND AND CONTROLfor the year ended 31 March 20<strong>07</strong>Programme per subprogrammeAdjustedAppropriationR’000Shifting <strong>of</strong>FundsR’000VirementR’000<strong>2006</strong>/<strong>07</strong> 2005/06FinalAppropriationR’000ActualExpenditureR’000VarianceR’000Expenditureas % <strong>of</strong> finalappropriation%FinalAppropriationR’000ActualExpenditureR’0008.1 Strategic DirectionCurrent paymentTransfers and subsidiesPayment for capital assets8.2 Special OperationsCurrent paymentTransfers and subsidiesPayment for capital assets8.3 Regional SecurityCurrent paymentTransfers and subsidiesPayment for capital assets8.4 UN Peace Mission in DRCCurrent paymentPayment for capital assets8.5 Protection SupportDetachment in BurundiCurrent paymentPayment for capital assets8.6 Military ObserversCurrent paymentPayment for capital assets8.7 African Mission in SudanCurrent paymentPayment for capital assets137 820-5 369169 837594 476318 60043 319357 2665 1261 029-94 724317------43 0975 9582 088(13 784)3 4471 012133 755-1 600(79 776)(8 649)(160 796)1 10572-99 898231180 9175 9587 457156,0533 5065 488133 755-1 600238 82434 670196 4706 2311 101-194 622548180 9175 9587 457156,0533 5065 488133 755-1 600238 82434 670196 4706 2311 101-194 622548---------------------------100.0%100.0%100.0%100.0%100.0%100.0%100.0%0.0%100.0%100.0%100.0%100.0%100.0%100.0%0.0%100.0%100.0%165 9042 8153 309139 1871 38<strong>07</strong> 71460 867-4 250240 03965 617270 1541 987723-51 7212 722165 9042 8153 309139 1871 38<strong>07</strong> 71460 867-4 250240 03965 617270 1541 987723-----51 7212 722ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 227
Financial StatementsD EPARTMENT OF D EFENCE, VOTE 21DETAIL PER PROGRAMME 8 - COMMAND AND CONTROLfor the year ended 31 March 20<strong>07</strong> (continued)Programme per subprogrammeAdjustedAppropriationR’000Shifting <strong>of</strong>FundsR’000VirementR’000<strong>2006</strong>/<strong>07</strong> 2005/06FinalAppropriationR’000ActualExpenditureR’000VarianceR’000Expenditureas % <strong>of</strong> finalappropriation%FinalAppropriationR’000ActualExpenditureR’0008.8 Support to the PeopleCurrent paymentPayment for capital assets8.9 <strong>Defence</strong> CapabilityManagementCurrent paymentPayment for capital assets8.10 Internal ServicesCurrent payment8.11 Authorised LossesCurrent payment8.12 IncomeCurrent paymentTotal234 51720 36317 323----1 410 145(85 770)(5 679)(7 344)5 479124 02943(96)59 920148 74714 6849 9795 479124 02943(96)1 470 065148 74714 6849 9795 479124 02943(96)1 470 065--------100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%101 46022 854230 70460 647(362)1 433 692--101 46022 854----------230 70460 647(362)1 433 692228DEPARTMENT OF DEFENCE
D EPARTMENT OF D EFENCE, VOTE 21DETAIL PER PROGRAMME 8 - COMMAND AND CONTROLfor the year ended 31 March 20<strong>07</strong> (continued)Economic classificationCurrent paymentsCompensation to employeesGoods and servicesFinancial transactions in assets andliabilitiesTransfers and subsidiesProvinces and municipalitiesHouseholdsPayment for capital assetsMachinery and equipmentS<strong>of</strong>tware and other intangible assetsTotalAdjustedAppropriationR’000616 064715 052-59-78 970-1 410 145Shifting <strong>of</strong>FundsR’000VirementR’00081 974(28 689)43539 352(2 813)-59 920FinalAppropriationR’000698 038686 363431129 35276 157-1 470 065ActualExpenditureR’000698 038686 363431129 35276 157-1 470 065VarianceR’000----------------<strong>2006</strong>/<strong>07</strong> 2005/06Expenditureas % <strong>of</strong> finalappropriation%100.0%100.0%100.0%100.0%100.0%100.0%0.0%100.0%FinalAppropriationR’000513 694746 70260 6474103 786108 419341 433 692ActualExpenditureR’000513 694746 70260 6474103 786108 419341 433 692ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 229
Financial StatementsD EPARTMENT OF D EFENCE, VOTE 21DETAIL PER PROGRAMME 9 - SPECIAL DEFENCE ACCOUNTfor the year ended 31 March 20<strong>07</strong> (continued)Programme per subprogrammeAdjustedAppropriationR’000Shifting <strong>of</strong>FundsR’000VirementR’000<strong>2006</strong>/<strong>07</strong> 2005/06FinalAppropriationR’000ActualExpenditureR’000VarianceR’000Expenditureas % <strong>of</strong> finalappropriation%FinalAppropriationR’000ActualExpenditureR’0009.1 Procurement ServicesTransfers and subsidies9.2 Strategic <strong>Defence</strong>ProcurementTransfers and subsidies9.3 OperatingTransfers and subsidies9.4 Intelligence RelatedTransfers and subsidiesTotal2 947 3294 536 249590 193206 9678 280 738----------2 947 3294 536 249590 193206 9678 280 7382 947 3294 536 249590 193206 9678 280 738-----100.0%100.0%100.0%100.0%100.0%2 154 7096 429 469599 28575 3769 258 8392 154 7096 429 469599 28575 3769 258 839Economic classificationTransfers and subsidies<strong>Department</strong>al agencies and accountsTotalAdjustedAppropriationR’0008 280 7388 280 738Shifting <strong>of</strong>FundsR’000VirementR’000--FinalAppropriationR’0008 280 7388 280 738ActualExpenditureR’0008 280 7388 280 738VarianceR’000----<strong>2006</strong>/<strong>07</strong> 2005/06Expenditureas % <strong>of</strong> finalappropriation%100.0%100.0%FinalAppropriationR’0009 258 8399 258 839ActualExpenditureR’0009 258 8399 258 839230DEPARTMENT OF DEFENCE
D EPARTMENT OF D EFENCE, VOTE 21NOTES TO THE APPROPRIATION STATEMENTfor the year ended 31 March 20<strong>07</strong>1. Detail <strong>of</strong> transfers and subsidies as per Appropriation Act (after Virement):Detail <strong>of</strong> these transactions can be viewed in note 7 (Transfers and subsidies) and Annexure 1 (A-E) to the annualfinancial statements.2. Detail <strong>of</strong> specifically and exclusively appropriated amounts voted (after Virement):Detail <strong>of</strong> these transactions can be viewed in note 1 (<strong>Annual</strong> Appropriation) to the annual financial statements.3. Detail on financial transactions in assets and liabilities:Detail <strong>of</strong> these transactions per programme can be viewed in note 6 (Details <strong>of</strong> theft and losses) to the annualfinancial statements.4. Explanations <strong>of</strong> material variances from amounts voted (after Virement):4.1 Per programme:ProgrammeFinal AppropriationR'000Actual ExpenditureR'000VarianceR'000Variance as a % <strong>of</strong>Final Appropriation%AdministrationProperty Management 1 999 401Joint SupportJoint Logistic Services 2 806 543941 318781 61958 08324 9246%3%1<strong>Department</strong> <strong>of</strong> Public Works Funds. Roll over claim submitted to National Treasury.2Capital Works Funds. Roll over claim submitted to National Treasury.4.2 Per economic classification:Current expenditureGoods and servicesPayments for capital assetsBuildings and other fixed structuresR'00058 08324 924ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 231
D EPARTMENT OF D EFENCE, VOTE 21STATEMENT OF FINANCIAL PERFORMANCEfor the year ended 31 March 20<strong>07</strong>Note<strong>2006</strong>/<strong>07</strong>R'0002005/06R'000REVENUE<strong>Annual</strong> appropriation<strong>Department</strong>al revenueLocal and foreign aid assistanceTOTAL REVENUE12323 902 904492 792-24 395 69622 670 482729 13638 75023 438 368EXPENDITURECurrent expenditureCompensation <strong>of</strong> employeesGoods and servicesFinancial transactions in assets and liabilitiesLocal and foreign aid assistanceTotal current expenditure45639 037 5955 444 91917 95711 24014 511 7118 196 3524 239 918100 10827 51012 563 888Transfers and subsidies78 882 8379 715 847Expenditure for capital assetsFinancial StatementsBuildings and other fixed structuresMachinery and EquipmentS<strong>of</strong>tware and other intangible assetsTotal expenditure for capital assetsTOTAL EXPENDITURENET SURPLUSAdd back fruitless and wasteful expenditure8881049 173383 8201 283434 27623 828 824566 87249473 884336 1732 564412 62122 692 356746 01217NET SURPLUS FOR THE YEAR567 366746 029Reconciliation <strong>of</strong> Net Surplus for the yearVoted Funds to be surrendered to the Revenue Fund<strong>Department</strong>al revenue to be surrendered to the Revenue FundLocal and foreign aid assistanceNET SURPLUS FOR THE YEAR1516385 814492 792(11 240)567 3665 653729 13611 24<strong>07</strong>46 029232DEPARTMENT OF DEFENCE
D EPARTMENT OF D EFENCE, VOTE 21STATEMENT OF FINANCIAL POSITIONas at 31 March 20<strong>07</strong>Note<strong>2006</strong>/<strong>07</strong>R'0002005/06R'000ASSETSCurrent assetsUnauthorised expenditureFruitless and wasteful expenditureCash and cash equivalentsPrepayments and advancesReceivablesLoans91011121314966 44020 62595967 330176 471688 69312 362808 233495 82447251 599144 659103 31712 362TOTAL ASSETS966 440808 233LIABILITIESCurrent liabilitiesVoted funds to be surrendered to the Revenue Fund<strong>Department</strong>al revenue to be surrendered to the RevenueFundBank overdraftPayablesLocal and foreign aid assistance unutilised151617183857 06785 81437 919690 98742 347-745 7725 65354 099646 66528 11511 240TOTAL LIABILITIES857 067745 772NET ASSETS109 37362 461Represented by:Recoverable revenue109 37362 461TOTAL109 37362 461ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 233
D EPARTMENT OF D EFENCE, VOTE 21STATEMENT OF CHANGES IN NET ASSETSfor the year ended 31 March 20<strong>07</strong>Note<strong>2006</strong>/<strong>07</strong>R'0002005/06R'000Recoverable revenueOpening balanceTransfersDebts written <strong>of</strong>fDebts revisedDebts recovered (included in departmental receipts)Debts raisedBalance at 31 March6.613.362 46146 912(5 016)(2 401)(25 262)79 591109 37371 331(8 870)(10 351)-(28 035)29 51662 461TOTAL109 37362 461Financial Statements234DEPARTMENT OF DEFENCE
D EPARTMENT OF D EFENCE, VOTE 21CASH FLOW STATEMENTfor the year ended 31 March 20<strong>07</strong>Note<strong>2006</strong>/<strong>07</strong>R'0002005/06R'000CASH FLOWS FROM OPERATING ACTIVITIESReceipts<strong>Annual</strong> appropriated funds received<strong>Department</strong>al revenue receivedLocal and foreign aid assistance received1324 389 94723 902 904487 043-23 438 36822 670 482729 13638 750Net increase in working capitalSurrendered to Revenue FundCurrent paymentsTransfers and subsidies paidNet cash flows available from operating activities19(128 244)(514 625)(14 511 217)(8 882 837)353 024(54 552)(689 147)(12 563 871)(9 715 847)414 951CASH FLOWS FROM INVESTING ACTIVITIESPayments for capital assetsProceeds from sale <strong>of</strong> capital assetsNet cash flows from investing activities(434 276)5 749(428 527)(412 621)-(412 621)CASH FLOWS FROM FINANCING ACTIVITIESDecrease/(Increase) in net assetsNet cash flows from financing activities46 91246 912(8 870)(8 870)Net decrease in cash and cash equivalents(28 591)(6 543)Cash and cash equivalents at beginning <strong>of</strong> period(595 066)(588 523)Cash and cash equivalents at end <strong>of</strong> period20(623 657)(595 066)ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 235
D EPARTMENT OF D EFENCE, VOTE 21NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 20<strong>07</strong>1. <strong>Annual</strong> Appropriation1.1 <strong>Annual</strong> AppropriationIncluded are funds appropriated in terms <strong>of</strong> the Appropriation Act for National <strong>Department</strong>s (Voted Funds)ProgrammesFinalAppropriationR'000Actual FundsReceivedR'000Funds not requested/not receivedR'000AppropriationReceived 2005/06R'000AdministrationLandward <strong>Defence</strong>Air <strong>Defence</strong>Maritime <strong>Defence</strong>Military Health Support<strong>Defence</strong> IntelligenceJoint SupportCommand and ControlSpecial <strong>Defence</strong> AccountTotal1 811 9013 991 3222 513 8931 311 8401 704 1<strong>07</strong>147 4942 671 5441 470 0658 280 73823 902 9041 811 6823 991 5442 513 8931 311 8401 704 106147 4942 671 5421 470 0658 280 73823 902 904219(222)--1-2---784 5893 437 1692 479 4551 201 4191 556 906144 3162 374 0971 433 6929 258 83922 670 4822. <strong>Department</strong>al revenue to be surrendered to Revenue FundFinancial StatementsSales <strong>of</strong> goods and services other than capital assetsFines, penalties and forfeitsInterest, dividends and rent on landSales <strong>of</strong> capital assetsFinancial transactions in assets and liabilitiesTotal2.1 Sales <strong>of</strong> goods and services other than capital assetsSales <strong>of</strong> goods and services produced by the departmentOther salesSales <strong>of</strong> scrap, waste and other used current goodsTotalNote2.12.22.32.4<strong>2006</strong>/<strong>07</strong>R'000169 7632 2728135 749314 195492 792111 72358 040169 7632005/06R'000232 8442 448337-493 5<strong>07</strong>729 13695 202137 642232 8442.2 Interest, dividends and rent on landInterest 813 3372.3 Sales <strong>of</strong> capital assetsVehiclesEquipmentTotal5 4293205 749---236DEPARTMENT OF DEFENCE
D EPARTMENT OF D EFENCE, VOTE 21NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 20<strong>07</strong> (continued)<strong>2006</strong>/<strong>07</strong>R'0002005/06R'0002.4 Financial transactions in assets and liabilitiesNature <strong>of</strong> loss recoveredReceivablesOther receipts including recoverable revenueForeign gainsStale chequesTotal-313 774211210314 19542 970450 15325359493 5<strong>07</strong>3. Local and foreign aid assistance3.1 Assistance received in cash from RDPForeignOpening balanceRevenueExpenditureCurrentClosing Balance11 240-11 240--38 75027 51011 240Analysis <strong>of</strong> balanceLocal and foreign aid unutilisedClosing Balance--11 24011 2404. Compensation <strong>of</strong> employees4.1 Salaries and wagesBasic salaryPerformance awardService BasedCompensative/circumstantialPeriodic paymentsOther non-pensionable allowancesTotal5 891 111103 62729 478552 8059701 476 1388 054 1295 624 2437027 512448 4445091 178 0417 278 8194.2 Social contributions4.2.1 Employer contributionsPensionMedicalUIFTotal938 83744 211418983 466872 19144 908434917 533Total compensation <strong>of</strong> employees9 037 5958 196 352Average number <strong>of</strong> employees77 64277 136ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 237
D EPARTMENT OF D EFENCE, VOTE 21NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 20<strong>07</strong> (continued)Note<strong>2006</strong>/<strong>07</strong>R'0002005/06R'0005. Goods and servicesFinancial StatementsAdvertisingAirport servicesBank charges and card feesCateringCommunicationComputer servicesConsultants, contractors and special servicesCopy right servicesCourier and delivery servicesTracing agents and debt collectionsEntertainmentExternal audit feesEquipment less than R5000Freight servicesHarbour servicesInventoryLegal feesMaintenance, repair and running costMedical servicesOperating leasesMint <strong>of</strong> decorations/medalsPlants, flowers and other decorationsPreservation/restoration servicesPrinting and publicationsPr<strong>of</strong>essional bodies and membership feesResettlement costsSchool and boarding feesSubscriptionsStorage <strong>of</strong> furnitureOwned and leasehold property expenditureTranslations and transcriptionsTravel and subsistenceVenues and facilitiesProtective, special clothing and uniformsTraining and staff developmentWitness and related feesTotal5.15.25.35 72136 5975 53676 68391 173666 770310 010263 519184 81632 76597 9452 52020 7451 038 9391791 547 501164 905441 478156 1016 6821 40126 21291059143295 409-463 41517 1233 86775 6181275 444 9194 72423 9574 32172 70994 244582 156334 986172 212193 02827 034134 1993 15024 445977 6598967 653147 248139 099177315 3995 7964 45116 2473 478471617 683155567 66916 1941 69357 934804 239 9185.1 External audit feesRegulatory auditsPerformance auditsOther auditsTotal external audit fees29 2<strong>07</strong>1 0602 49832 76526 <strong>07</strong>051844627 034238DEPARTMENT OF DEFENCE
D EPARTMENT OF D EFENCE, VOTE 21NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 20<strong>07</strong> (continued)Note<strong>2006</strong>/<strong>07</strong>R'0002005/06R'0005.2 InventoryDomestic consumablesAgriculturalLearning and teaching support materialFood and food suppliesFuel, oil and gasLaboratory consumablesOther consumablesParts and other maintenance materialStationery and printingVeterinary suppliesMedical suppliesTotal Inventory96 3241 1424 912292 956305 709-49 67328 47460 4581199 2901 038 939100 8851 0805 401223 732328 5641 35133 88638 85860 290228183 384977 6595.3 Travel and subsistenceLocalForeignTotal travel and subsistence292 299171 116463 415256 149311 520567 6696. Financial transactions in assets and liabilitiesMaterial losses through criminal conductTheftOther material losses written <strong>of</strong>fDebts written <strong>of</strong>fForex lossesTotal6.16.26.36.4614 8121 6311 50817 95739232 09067 292334100 1086.1 Material losses through criminal conductNature <strong>of</strong> lossesIncidentSubsistence and travel fraudDisciplinary steps taken/criminal proceedingsLiability still to be determined66392392ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 239
D EPARTMENT OF D EFENCE, VOTE 21NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 20<strong>07</strong> (continued)<strong>2006</strong>/<strong>07</strong>R'0002005/06R'0006.2 Other material losses written <strong>of</strong>fNature <strong>of</strong> lossesCompensation arising from a veld fire in LohatlaCompensation arising from a shooting accidentSettlement agreement with the CSANDFLegal fees State AttorneyMotor vehicle lossesLegal opinionsOther claims against the StateLegal feesInterest claimsSpectacle lossesLegal representationTotal919--7 9012 3952 <strong>07</strong>91 3061147424-14 8129 5525 0362 5008 2<strong>07</strong>1 9702 1192 2852143337232 0906.3 Debts written <strong>of</strong>fNature <strong>of</strong> debts written <strong>of</strong>fFinancial StatementsCollection <strong>of</strong> debt uneconomical (10 cases)Salary relatedState guaranteesEstatesSubsistence and travelSuppliers overpaidLoss <strong>of</strong> state propertyDebts raised concerning fruitless and wasteful expenditureMiscellaneousTreatment <strong>of</strong> private patients<strong>Department</strong>al transferLoss <strong>of</strong> state fundsMilitary assistance to the Kingdom <strong>of</strong> Lesotho during1998/1999 (Operation BOLEAS)Military assistance to the Kingdom <strong>of</strong> Lesotho during1999/2000 (Operation MALUTI)Cataloguing service for National TreasuryNo substantiating documentationTotal4048371651<strong>07</strong>769877443----1 631-779196244812337-1-14154 9365 6973 5141 90467 292Note: Not included above is an amount <strong>of</strong> Rm 566 which was expensed in prior years.6.4 Forex lossesNature <strong>of</strong> lossForeign exchange losses on operations 1 508 334240DEPARTMENT OF DEFENCE
D EPARTMENT OF D EFENCE, VOTE 21NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 20<strong>07</strong> (continued)Note<strong>2006</strong>/<strong>07</strong>R'0002005/06R'0006.5 Details <strong>of</strong> theft and lossesAdministrationLandward <strong>Defence</strong>Air <strong>Defence</strong>Maritime <strong>Defence</strong>Military Health Support<strong>Defence</strong> IntelligenceJoint SupportCommand and ControlTotal11 6344 1731 4653132472804317 95716 50520 1757213531 5681212760 647100 1086.6 Irrecoverable amounts written <strong>of</strong>fContractual liabilitiesMotor vehicle accidentsAviation servicesEstatesMedical services rendered to other entitiesState guaranteesTreatment <strong>of</strong> private patientsLoss <strong>of</strong> state propertySalary relatedAviation fuelOtherDamage to state propertyOperationsNo substantiating documentationDockyardTotal2 673900601189181179128983414136---5 016413718-14-97447563-28-8 1297521810 3517. Transfers and subsidiesProvinces and municipalities<strong>Department</strong>al agencies and accountsPublic corporations and private enterprisesNon-pr<strong>of</strong>it institutionsHouseholdsTotalAnnexure 1AAnnexure 1BAnnexure 1CAnnexure 1DAnnexure 1E3 9678 288 458396 2862 752191 3748 882 83715 1449 265 940359 5152 79272 4569 715 847ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 241
D EPARTMENT OF D EFENCE, VOTE 21NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 20<strong>07</strong> (continued)<strong>2006</strong>/<strong>07</strong>R'0002005/06R'0008. Expenditure for capital assetsBuildings and other fixed structuresMachinery and equipmentS<strong>of</strong>tware and other intangible assetsTotal49 173383 8201 283434 27673 884336 1732 564412 6219. Unauthorised expenditure9.1 Reconciliation <strong>of</strong> unauthorised expenditureOpening balanceAmounts approved by ParliamentTransfer to receivables for recovery (not approved)Unauthorised expenditure awaiting authorisation495 824-(475 199)20 625495 824--495 824Note: An amount <strong>of</strong> Rm 7,495 was approved by Parliament and will be collected from National Treasury in the20<strong>07</strong>/2008 financial year. An amount <strong>of</strong> Rm 467,703 was not approved by Parliament and provision hasbeen made to write it <strong>of</strong>f as irrecoverable debt (see note 29).10. Fruitless and wasteful expenditure10.1 Reconciliation <strong>of</strong> fruitless and wasteful expenditureFinancial StatementsOpening balanceFruitless and wasteful expenditure - current yearCurrent expenditureAmounts condonedCurrent expenditureTransfer to receivables for recovery (not condoned)Fruitless and wasteful expenditure awaiting condonementNote: An amount <strong>of</strong> R64 356 was transferred to receivables for recovery and reported as fruitless and wastefulexpenditure, but it was recorded in a suspense account and not accounted for as fruitless andwasteful expenditure.Analysis <strong>of</strong> current fruitless and wasteful expenditureIncidentDisciplinary steps taken/criminal proceedings472494(1)(6)959<strong>2006</strong>/<strong>07</strong>R'00046917(14)-472Penalties in respect <strong>of</strong> late paymentTermination <strong>of</strong> contract whereby thelandlord is not able to repay thedeposit (house lease) in Ivory CoastMembers was not entitled to medicaltreatment (19 cases)Partial payment <strong>of</strong> the cash-in-transitservices to Kinshasa due to serviceprovider being late with delivery <strong>of</strong>cash consignment for DODUnder investigation to determine liabilityAmount to be written <strong>of</strong>f as no liability couldbe determinedAmounts to be deducted from members’salaryAmount to be written <strong>of</strong>f as no liability couldbe determined41622129242DEPARTMENT OF DEFENCE
D EPARTMENT OF D EFENCE, VOTE 21NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 20<strong>07</strong> (continued)IncidentCancellation fee in respect <strong>of</strong> hotelaccommodation (2 cases)Penalties in respect <strong>of</strong> late payment(2 cases)Private radiologist utilised by memberwhile he was under treatment at 1Military HospitalLegal cost on long outstanding medicalaccountMembers was not entitled to medicaltreatment (4 cases)Legal cost on long outstanding medicalaccountPayment <strong>of</strong> Commando rations formore members than which reportedfor duty (2 cases)Penalties in respect <strong>of</strong> late payment <strong>of</strong><strong>of</strong>ficial television licencesCancellation fee in respect <strong>of</strong> hotelaccommodation (2 cases)Repair <strong>of</strong> photocopier that was notdue to normal wear and tearMembers missed appointment(4 cases)Penalties in respect <strong>of</strong> late payment <strong>of</strong><strong>of</strong>ficial vehicle licencesMember was reimbursed for medicalexpensesVarious cases (3)TotalDisciplinary steps taken/criminal proceedingsAmount to be written <strong>of</strong>f as no liability couldbe determinedAmount to be written <strong>of</strong>f as no liability couldbe determinedUnder investigation to determine liabilityAmount to be written <strong>of</strong>f as no liability couldbe determinedAmounts to be written <strong>of</strong>f as no liability couldbe determinedUnder investigation to determine liabilityUnder investigation to determine liabilityUnder investigation to determine liabilityUnder investigation to determine liabilityUnder investigation to determine liabilityAmounts to be deducted from members’salaryAmount to be written <strong>of</strong>f as no liability couldbe determinedUnder investigation to determine liability2 Cases to be written <strong>of</strong>f and 1 case underinvestigation<strong>2006</strong>/<strong>07</strong>R'00065433222221111494<strong>2006</strong>/<strong>07</strong>R'0002005/06R'00011. Cash and cash equivalentsCash on handCash with commercial banksTotal39 94127 38967 33032 96118 63851 59912. Prepayments and advancesDescriptionTravel and subsistencePrepaymentsTotal49 846126 625176 47145 58899 <strong>07</strong>1144 659ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 243
D EPARTMENT OF D EFENCE, VOTE 21NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 20<strong>07</strong> (continued)13. ReceivablesStaff debtorsOther debtorsClaims recoverableTotalNote13.113.2Annex 3Less thanone yearR'00030 740579 08811 106620 934One tothree yearsR'0005 97421 4757127 520Older thanthree yearsR'0009 93829 84245940 239<strong>2006</strong>/<strong>07</strong>TotalR'00046 652630 40511 636688 6932005/06TotalR'00039 38957 9385 990103 317<strong>2006</strong>/<strong>07</strong>R'0002005/06R'00013.1 Staff debtorsDescriptionSalary relatedStudentsMotor vehicle accidentsDepositsState guaranteesLoss <strong>of</strong> state moneyPrivate patientsDamage to state propertyEstatesDischarge <strong>of</strong> members (2) not included in salary relatedTotal26 6037 8855 6242 9232 0911 <strong>07</strong>43353780-46 65214 4139 3025 7834 3472 1631 4612229061 60239 389Financial Statements244DEPARTMENT OF DEFENCE
D EPARTMENT OF D EFENCE, VOTE 21NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 20<strong>07</strong> (continued)<strong>2006</strong>/<strong>07</strong>R'0002005/06R'00013.2 Other debtorsDescriptionContractual liabilitiesSalary related (ex-members)Medical claimsLoss <strong>of</strong> state moneyMotor vehicle accidentsAviation servicesSuppliersEstatesState guaranteesOperationsHumanitarian aidPrivate patientsInstitutionsDockyardFruitless and wasteful expenditureMiscellaneousDamage to state propertyMarketing supportUnauthorised expenditure not approved by Parliament and tobe written <strong>of</strong>fLegal fees not included in SuppliersLoss <strong>of</strong> state funds not included in Loss <strong>of</strong> state moneyTotal32 08<strong>07</strong> 7221 4494 4473 6546 8015 3421 03285791 37647446641 634-15-2 719467 704-3 016630 40523 9427 4764 7624 1224 1203 0941 8351 3851 27881545030329<strong>07</strong>218811-1 2<strong>07</strong>2 75957 93813.3 Debts revisedDescriptionStudentsAviation servicesMotor vehicle accidentsLoss <strong>of</strong> state moneyPrivate patientsMedical claimsSalary relatedHumanitarian aidIntergovernmental receivablesDamage to state propertyInstitutionsOperationsTotal1 185619348219201157756622(65)(408)2 401Note: Comparative figures cannot be provided. The system was adjusted to be able to provide the figures.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 245
D EPARTMENT OF D EFENCE, VOTE 21NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 20<strong>07</strong> (continued)<strong>2006</strong>/<strong>07</strong>R'0002005/06R'00014. LoansPublic Corporations12 36212 362Analysis <strong>of</strong> BalanceOpening BalanceClosing Balance12 36212 36212 36212 362Current portion <strong>of</strong> loans12 36212 362This represents a loan to the South African Forces Institute (SAFI) for the purpose <strong>of</strong> finance bridging. Thisloan is unsecured. The interest rate is fixed at 0% per annum and is payable by March 20<strong>07</strong>.15. Voted funds to be surrendered to the Revenue FundOpening balanceTransfer from Statement <strong>of</strong> Financial PerformancePaid during the yearClosing balance5 65385 814(5 653)85 8141 0375 653(1 037)5 65316. <strong>Department</strong>al revenue to be surrendered to the Revenue FundFinancial StatementsOpening balanceTransfer from Statement <strong>of</strong> Financial PerformancePaid during the yearClosing balance54 099492 792(508 972)37 91913 <strong>07</strong>3729 136(688 110)54 09917. Bank overdraftConsolidated Paymaster General Account 690 987 646 66518. Payables - currentDescriptionAdvances receivedClearing accountsOther payablesTotalNote18.118.218.330 Days170627 64028 34730+ Days6411313 82314 000Total6581941 46342 347Total3<strong>07</strong>1427 37128 11518.1 Advances receivedDeposits received for use <strong>of</strong> Naval facilities 65 30246DEPARTMENT OF DEFENCE
D EPARTMENT OF D EFENCE, VOTE 21NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 20<strong>07</strong> (continued)<strong>2006</strong>/<strong>07</strong>R'0002005/06R'00018.2 Clearing accountsDescriptionSubsistence and TravelPension suspense accountSuppliersForeign Subsistence and Travel not included in Subsistenceand Travel aboveTotal316--50381920268843671418.3 Other payablesDescriptionState guaranteesUnclaimed salariesDebtors in creditSuppliersOther payablesSuppliers not included in Suppliers aboveTotal4 1256 58510 32811 8085 7492 86841 4636 1965 0417 7675525 7632 05227 37119. Net cash flow available from operating activitiesNet surplus as per Statement <strong>of</strong> Financial Performance(Increase)/decrease in receivables - currentIncrease in prepayments and advancesDecrease/(increase) in other current assetsIncrease/(decrease) in payables - currentProceeds from sale <strong>of</strong> capital assetsSurrenders to Revenue FundExpenditure on capital assetsOther non cash itemsNet cash flow generated by operating activities567 366(585 376)(31 812)474 71214 232(5 749)(514 625)434 276-353 024746 02987 334(114 945)(3)(26 941)-(689 147)412 6213414 95120. Cash and cash equivalents at end <strong>of</strong> periodConsolidated Paymaster General AccountCash on handCash with commercial banksTotal(690 987)39 94127 389(623 657)(646 665)32 96118 638(595 066)ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 247
D EPARTMENT OF D EFENCE, VOTE 21DISCLOSURE NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 20<strong>07</strong>These amounts are not recognised in the financial statements, and are disclosed to enhance the usefulness <strong>of</strong>financial statements and to comply with the statutory requirements <strong>of</strong> the Public Finance Management Act,1 <strong>of</strong> 1999.theAct21. Contingent liabilitiesLiable toMotor vehicle guaranteesHousing loan guaranteesClaims against the departmentOther departments (interdepartmentalunconfirmed balances)Environmental rehabilitation liabilityTotalNatureEmployeesEmployeesNoteAnnexure 2AAnnexure 2AAnnexure 2BAnnexure 4Annexure 2B<strong>2006</strong>/<strong>07</strong>R'000-115 2901 301 85331 4417 1701 455 7542005/06R'000246123 0261 002 32113 1817 1001 145 874Note:There is a dispute between National Treasury and the supplier <strong>of</strong> photocopiers with respect tophotocopiers delivered for which rental payments might be due from date <strong>of</strong> resolving the dispute.The possible liability could not be quantified.22. CommitmentsCurrent expenditureApproved and contractedApproved but not yet contractedTotal Commitments1 196 766435 5871 632 353927 776432 <strong>07</strong>11 359 84723. AccrualsFinancial StatementsBy economic classificationCompensation <strong>of</strong> employeesGoods and servicesTransfers and subsidiesMachinery and equipmentTotal30 DaysR'00<strong>07</strong>3 951106 209-3 29830+ DaysR'000-47 95337 9223 633TotalR'00<strong>07</strong>3 951154 16237 9226 931272 966TotalR'00043 514105 746-5 840155 100Listed by programme levelAdministrationLandward <strong>Defence</strong>Air <strong>Defence</strong>Maritime <strong>Defence</strong>Military Health Support<strong>Defence</strong> IntelligenceJoint SupportCommand and ControlTotal99 94662 34837 01915 22630 13090113 29414 102272 96620 17219 34630 44919 84218 56044031 9<strong>07</strong>14 384155 100248DEPARTMENT OF DEFENCE
D EPARTMENT OF D EFENCE, VOTE 21DISCLOSURE NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 20<strong>07</strong> (continued)<strong>2006</strong>/<strong>07</strong>R'0002005/06R'00024. Employee benefit provisionsLeave entitlementThirteenth chequePerformance awardsCapped leave commitmentsTotal2 535268 896-886 7501 158 181192245 55411963 8321 209 589Note:Prior year figures for leave entitlement are restated due to a printing error. Prior year figures for capped leavecommitments are restated.25. Lease Commitments25.1 Operating leasesNot later than 1 yearLater than 1 year and not later than 5 yearsTotal present value <strong>of</strong> lease liabilitiesMachinery and equipmentR'0001 5311171 648<strong>2006</strong>/<strong>07</strong>R'0001 5311171 6482005/06R'0006 1031 9578 06026. Irregular expenditure26.1 Reconciliation <strong>of</strong> irregular expenditureOpening balanceIrregular expenditure - current yearLess: Amounts condonedCurrent expenditureIrregular expenditure awaiting condonement<strong>2006</strong>/<strong>07</strong>R'000955-(474)4812005/06R'000624331-955Analysis <strong>of</strong> awaiting condonement per classificationCurrent expenditure481955Analysis <strong>of</strong> awaiting condonement per age classificationCurrentPrior yearsTotal-481481331624955Note: The condoned amount represents expenditure previously treated as irregular expenditure which was notirregular expenditure.27. Related party transactionsArmscor (Pty) Ltd, the Castle Control Board and the South African National <strong>Defence</strong> Force Fund (SANDF Fund) are relatedparties to the <strong>Department</strong> <strong>of</strong> <strong>Defence</strong> through the Minister <strong>of</strong> <strong>Defence</strong> as an intermediary. Armscor, the Castle ControlBoard, SANDF Fund and the <strong>Department</strong> <strong>of</strong> <strong>Defence</strong> are controlled by the Minister <strong>of</strong> <strong>Defence</strong>.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 249
D EPARTMENT OF D EFENCE, VOTE 21DISCLOSURE NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 20<strong>07</strong> (continued)27.1 Armscor (Pty) LtdArmscor (Pty) Ltd is mandated by the Armscor Act, Act 51 <strong>of</strong> 2003, to meet the defence material and other related requirements<strong>of</strong> the <strong>Department</strong>.The transactions between Armscor and the <strong>Department</strong> are mainly related to the sale and purchase <strong>of</strong> armament.27.2 Castle Control BoardThe Castle Control Board is the Board <strong>of</strong> the Cape Town Castle. The Board is appointed in terms <strong>of</strong> the Castle ManagementAct, Act 2<strong>07</strong> <strong>of</strong> 1993 and its function is to control the Cape Town Castle.The transactions between the Castle Control Board and the <strong>Department</strong> are mainly related to the provision <strong>of</strong> personnel,<strong>of</strong>fices and transport by the <strong>Department</strong>.27.3 SANDF FundThe SANDF Fund is established in terms <strong>of</strong> the Fund Raising Act, Act 1<strong>07</strong> <strong>of</strong> 1968. The aim <strong>of</strong> the Fund is to render aid toSA National <strong>Defence</strong> Force and Auxiliary Services and their dependants who suffer financial hardship and distress as aresult <strong>of</strong> duties in terms <strong>of</strong> the <strong>Defence</strong> Act.The transactions between the SANDF Fund and the <strong>Department</strong> are mainly related to the provision <strong>of</strong> personnel, <strong>of</strong>ficesand transport by the <strong>Department</strong>.27.4 Other possible related partiesFunds and Institutions such as the South African Forces Institute (SAFI), established in terms <strong>of</strong> the General Regulationsto the <strong>Defence</strong> Act, Act 42 <strong>of</strong> 2002, may be classified as related parties. During 20<strong>07</strong>/2008 the <strong>Department</strong> will investigatewhether these are in fact related parties and also to identify any other relationships that may exist.The transactions between the Funds and Institutions are mainly related to the provision <strong>of</strong> personnel and transport by the<strong>Department</strong>.Financial Statements28. Key management personnelDescriptionPolitical Office BearersOfficialsLevel 15 to 16Level 14TotalNo <strong>of</strong>individuals2128<strong>2006</strong>/<strong>07</strong>R'000Total1 8269 7674 34415 9372005/06R'000Total1 7629 9104 46716 139Note: Only members <strong>of</strong> the Plenary <strong>Defence</strong> Staff Council are listed as key management personnel.29. ProvisionsPotential irrecoverable debtsStaff debtorsOther debtorsClaims recoverableTotal1 988473 671459476 1181 7143 6814745 869250DEPARTMENT OF DEFENCE
D EPARTMENT OF D EFENCE, VOTE 21ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 20<strong>07</strong>ANNEXURE 1ASTATEMENT OF CONDITIONAL GRANTS TO MUNICIPALITIESNAME OF MUNICIPALITYAmatola District CouncilBenede Oranje District CouncilBloem-area District CouncilBo-Karoo Divisional CouncilBoland District MunicipalityBophirima District CouncilBosveld District CouncilCentral Transitional District CouncilCity <strong>of</strong> Cape TownDiamantveld District CouncilDurban Corporation District CouncilEastern Free State District CouncilEastern Gauteng Services CouncilGreater Johannesburg MetropolitanCouncilHighveld District CouncilIndlove Regional CouncilKalahari District CouncilKlein Karoo Divisional CouncilDivision <strong>of</strong>RevenueActR'000GRANT ALLOCATION TRANSFER SPENT2005/06RollOversR'000AdjustmentsR’0001531082101033761211252367824355928--TotalAvailableR'0001531082101033761211252367824355928--ActualTransferR'0001531082101033761211252367824355928--% <strong>of</strong> AvailableFundsTransferred%0.0%100.0%100.0%100.0%100.0%0.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%Amountreceived bymunicipalityR’000Amountspent bymunicipalityR'000% <strong>of</strong> AvailableFunds spentby municipality%Division <strong>of</strong>RevenueActR’0001681 23330101364101 5484204971022703182412229985ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 251
Financial StatementsD EPARTMENT OF D EFENCE, VOTE 21ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 20<strong>07</strong> (continued)ANNEXURE 1A (continued)STATEMENT OF CONDITIONAL GRANTS TO MUNICIPALITIESNAME OF MUNICIPALITYLowveld District CouncilMidland Divisional CouncilNamakwa District MunicipalityNorthern District CouncilOR Tambo District CouncilOosvaal District CouncilOverberg District CouncilPretoria Metro CouncilRustenburg District CouncilSouthern District CouncilStormberg District CouncilUthukela Regional CouncilUthungule Regional CouncilWest Coast Regional ServicesCouncilFezile Dabi District MunicipalityWestern Regional District CouncilVariousTotalDivision <strong>of</strong>RevenueActR'000GRANT ALLOCATION TRANSFER SPENT2005/06RollOversR'000------------------Amountspent bymunicipalityR'000AdjustmentsR’000532525118191 6922120149364026142893 967TotalAvailableR'000532525118191 6922120149364026142893 967--ActualTransferR'000532525118191 6922120149364026142893 967--% <strong>of</strong> AvailableFundsTransferred%100.0%0.0%0.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%Amountreceived bymunicipalityR’000------------------------------------% <strong>of</strong> AvailableFunds spentby municipality%--------------------------------------Division <strong>of</strong>RevenueActR’000208111 05117582796 2358588619211914697564115 144252DEPARTMENT OF DEFENCE
D EPARTMENT OF D EFENCE, VOTE 21ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 20<strong>07</strong> (continued)ANNEXURE 1BSTATEMENT OF TRANSFERS TO DEPARTMENTAL AGENCIES AND ACCOUNTSDEPARTMENTS/AGENCY/ACCOUNTSafety and Security Sector Educationand Training Authority (SASSETA)Special <strong>Defence</strong> AccountTotalAdjustedAppropriation ActR'00<strong>07</strong> 9338 280 7388 288 671TRANSFER ALLOCATION TRANSFER2005/06Roll OversR'000---AdjustmentsR’000---Total AvailableR'00<strong>07</strong> 9338 280 7388 288 671Actual TransferR'00<strong>07</strong> 7208 280 7388 288 458% <strong>of</strong> Availablefunds transferred%97.3%100.0%FinalAppropriation ActR’00<strong>07</strong> 1019 258 8399 265 940ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 253
Financial StatementsD EPARTMENT OF D EFENCE, VOTE 21ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 20<strong>07</strong> (continued)ANNEXURE 1CSTATEMENT OF TRANSFERS/SUBSIDIES TO PUBLIC CORPORATIONS AND PRIVATE ENTERPRISESPUBLIC CORPORATION/PRIVATE ENTERPRISEAdjustedAppropriationActR'000TRANSFER ALLOCATION EXPENDITURE2005/06Roll Overs AdjustmentsCapital CurrentR'000R’000TotalAvailableR'000ActualTransferR'000% <strong>of</strong> Availablefunds transferred%R'000R'000TotalAvailableR'000Public CorporationArmaments Corporation <strong>of</strong> South AfricaTotal396 286396 286----396 286396 286396 286 100.0%396 286----359 515359 515254DEPARTMENT OF DEFENCE
D EPARTMENT OF D EFENCE, VOTE 21ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 20<strong>07</strong> (continued)ANNEXURE 1DSTATEMENT OF TRANSFERS/SUBSIDIES TO NON-PROFIT INSTITUTIONSNON PROFIT ORGANISATIONAdjustedAppropriationActR'000TRANSFER ALLOCATION EXPENDITURE2005/06Roll OversR'000AdjustmentsR’000Total AvailableR'000ActualTransferR'000% <strong>of</strong> Availablefunds transferred%FinalAppropriationActR'000TransfersSt Johns Ambulance BrigadeMedical FundReserve Force CouncilTotal502752 7263 051--------502752 7263 051402122 5002 75280.0%77.1%91.7%402752 5962 911ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 255
Financial StatementsD EPARTMENT OF D EFENCE, VOTE 21ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 20<strong>07</strong> (continued)ANNEXURE 1ESTATEMENT OF TRANSFERS/SUBSIDIES TO HOUSEHOLDSNON PROFIT ORGANISATIONAdjustedAppropriation ActR'000TRANSFER ALLOCATION TRANSFER2005/06Roll OversR'000AdjustmentsR’000Total AvailableR'000Actual TransferR'000% <strong>of</strong> Availablefunds transferred%FinalAppropriation ActR’000TransfersDOD membersTotal----191 374191 374191 374191 374191 374100.0%191 37472 45672 456Severance packages paid out256DEPARTMENT OF DEFENCE
D EPARTMENT OF D EFENCE, VOTE 21ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 20<strong>07</strong> (continued)ANNEXURE 1FSTATEMENT OF GIFTS, DONATIONS AND SPONSORSHIPS RECEIVED FOR THE YEAR ENDED 31 MARCH 20<strong>07</strong>NAME OF ORGANISATIONNATURE OF GIFT, DONATION OR SPONSORSHIP <strong>2006</strong>/<strong>07</strong>R'0002005/06R'000----Received in kindCSIRCSIROld MutualCapitec BankCSIRVarious InstitutionsCSIRCSIREdit CaféMakhado SparSAAF BenevolentCSIRCSIRCoke MakhadoLilanga LodgeEdit Cape ProdCSIRAADPalm HavenCSIRRotary ClubDinnermatesShaheemsChair stackableVideo, camera and sound equipmentSA Navy Empowerment ConferenceNavy College open dayFansVarious gifts R1000,00 and lessFridges and microwaveTablesEquipment for a barDonation: Camp for the disabledDonation: Camp for the disabledDrive rackTwisted Wind TurbineCoca ColaAccommodation: Camp for the disabledSamsung television and DVD SystemVacuum cleanerTelevision sets (6)Donation: Camp for the disabledLounge suiteDonation: Camp for the disabledDonation: Camp for the disabledSnacks, hamburgers and patties2992445040371615141210101097766644432-25-----------------ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 257
Financial StatementsD EPARTMENT OF D EFENCE, VOTE 21ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 20<strong>07</strong> (continued)ANNEXURE 1F (continued)STATEMENT OF GIFTS, DONATIONS AND SPONSORSHIPS RECEIVED FOR THE YEAR ENDED 31 MARCH 20<strong>07</strong>NAME OF ORGANISATIONNATURE OF GIFT, DONATION OR SPONSORSHIP <strong>2006</strong>/<strong>07</strong>R'0002005/06R'000Mr N. ScottLimpopo DairySpa G/BayLeach PrintersCome & PlayCSIRMafikeng AirportLiyana Game LodgeSA Navy AssociationDistellWiley XSAFOMAREagle Tyres MakhadoRound Table 66SA Disable Support AssociationBenevolent FundOld MutualRDLWimpySanlamChipkinsBAE SystemsCol P. CookeTMATrophiesDonation: Camp for the disabledNavcol open dayPrinterFace painting & jumping castleHose airlessFuelUse <strong>of</strong> facilitiesCrockery and cutleryT-shirts (120) and caps (50)Protective eyewearPaint materialTyresGroceriesCaps and pensSponsorshipSheepSponsorship160 Meal vouchersSatellite dish and decoderMedia coversEnd year functionDonationSponsorship221111------------------------4621514886666666543333258DEPARTMENT OF DEFENCE
D EPARTMENT OF D EFENCE, VOTE 21ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 20<strong>07</strong> (continued)ANNEXURE 1F (continued)STATEMENT OF GIFTS, DONATIONS AND SPONSORSHIPS RECEIVED FOR THE YEAR ENDED 31 MARCH 20<strong>07</strong>NAME OF ORGANISATIONNATURE OF GIFT, DONATION OR SPONSORSHIP <strong>2006</strong>/<strong>07</strong>R'0002005/06R'000LogtronicsBAE - IFSDENEL AviationPalm HavenCoca ColaCrime Prevention BoardAMGBabcock CentralDENELLTT RotaryLeach PrintersDistellVeecraftManex MarineChubb SecurityGrintec ElectricalDENEL AviationMs S. le RouxDinner MatesSPARDr V. GovenderOBC ChickenTotalSponsorshipSponsorshipSponsorshipDonationCoke, caps and squeegeesCaps and T-shirtsT-shirtsAviation eveningT-shirtsDonationCertificates and name tagsAssorted2 Brass watchesWrist watchSatellite dish and decoderTheatre systemPainting hawkDining room chairsHamburger patties and baconGroceriesLG bar fridgeRussians and chickensNote - Totals do not form part <strong>of</strong> the totals as on the face <strong>of</strong> the Statement <strong>of</strong> Financial Performance-823---------------------3333332222222222211111640ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 259
Financial StatementsD EPARTMENT OF D EFENCE, VOTE 21ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 20<strong>07</strong> (continued)ANNEXURE 1GSTATEMENT OF LOCAL AND FOREIGN AID ASSISTANCE RECEIVED FOR THE YEAR ENDED 31 MARCH 20<strong>07</strong>NAME OF DONORReceived in cashThe Government <strong>of</strong> the Kingdom <strong>of</strong> theNetherlandsThe African Rennaisance FundReceived in kindGovernment <strong>of</strong> the United States <strong>of</strong> AmericaGovernment <strong>of</strong> the United States <strong>of</strong> AmericaGovernment <strong>of</strong> the United States <strong>of</strong> America(Henry Jackson Foundation)Government <strong>of</strong> the Federal Republic <strong>of</strong> GermanyGovernment <strong>of</strong> the United KingdomGovernment <strong>of</strong> the United Kingdom (<strong>Department</strong><strong>of</strong> Foreign International Development)Government <strong>of</strong> the United States <strong>of</strong> America(Emergency Programme for AIDS relief)Government <strong>of</strong> the United States <strong>of</strong> America(African Contingency Operations TrainingAssistance)Government <strong>of</strong> the United States <strong>of</strong> America(United States European Command)TotalImprovement <strong>of</strong> the Democratic Republic <strong>of</strong> the Congointegration centresSupport <strong>of</strong> the electoral process in the DemocraticRepublic <strong>of</strong> the CongoSubtotalAircrew simulator training and C130 aircraft sparesAids Awareness ProgrammeEstablish clinical research capabilityEvaluation and assistance with regards to training andonboard procedures on the new frigatesEvaluation and assistance with regards to training andonboard procedures on the new frigatesAids Awareness ProgrammeAids Awareness ProgrammePURPOSE OPENING REVENUE EXPENDI-BALANCETURER'000R'000R'000-Donation <strong>of</strong> a mobile peacekeeping training simulationcapabilityExpenses incurred by Africa and European countries participatingin the multinational exercise held in the RSA3 7403 740-7 50<strong>07</strong> 500-11 240------11 240---2 85758737 23318092962 8052 10060546 55511 240------11 240------CLOSINGBALANCER'0002 85758737 23318092962 8052 10060546 555260DEPARTMENT OF DEFENCE
D EPARTMENT OF D EFENCE, VOTE 21ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 20<strong>07</strong> (continued)ANNEXURE 1HSTATEMENT OF GIFTS, DONATIONS AND SPONSORSHIPS MADE AND REMISSIONS REFUNDSAND PAYMENTS MADE AS AN ACT OF GRACE FOR THE YEAR ENDED 31 MARCH 20<strong>07</strong>NATURE OF GIFT, DONATION OR SPONSORSHIP<strong>2006</strong>/<strong>07</strong>R'000Made in kindGeneral equipment - Mozambican <strong>Defence</strong> ForceVehicles - South African Police ServiceClothing and ETS - Central African RepublicImpala Aircraft spares - Zambian Air ForceFarm implements - South African Police ServiceAmmunition - South African Police Service (Special Task Force)Clothing - <strong>Department</strong> <strong>of</strong> Social DevelopmentClothing - Zambian Air ForceVehicles - <strong>Department</strong> <strong>of</strong> Agriculture Conservation and EnvironmentGame - Government <strong>of</strong> the Eastern CapeTactical signal equipment - South African Police ServiceMusic instruments - SAMETFiling cabinets - Dr I. Monare SchoolTotal15 0887 2242 3201 9701 5405283742432001286427529 711Note: Totals do not form part <strong>of</strong> the totals as on the face <strong>of</strong> the Statement <strong>of</strong> Financial PerformanceANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 261
Financial StatementsD EPARTMENT OF D EFENCE, VOTE 21ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 20<strong>07</strong> (continued)ANNEXURE 2ASTATEMENT OF FINANCIAL GUARANTEES ISSUED AS AT 31 MARCH 20<strong>07</strong> - LOCALGuarantor InstitutionGuarantee inrespect <strong>of</strong>OriginalguaranteedcapitalamountR'000Openingbalance asat 1 April<strong>2006</strong>R'000Guaranteesissuedduring theyearR'000Guaranteesreleasedduring theyearR'000Guaranteedinterest outstandingas at31 March 20<strong>07</strong>R'000Closingbalance31 March20<strong>07</strong>R'000Motor VehiclesStannicSubtotal246246246246--------HousingABSAAfrican BankBOE Bank (Boland)Business PartnersCape <strong>of</strong> Good Hope BankCiskei Peoples Development BankFirst National/First Rand BankFree State Development CorporationGrahamstown Building SocietyGreenstart Home LoansIthala Development Finance CorporationKhayalethu Home LoansMasikheniNedbankPerm/Peoples Bank/Nedcor32 4589522805112523 3151 218351 6387002741212 05623 337510-----402138-8086-24103-3 359-----1 01599--27-311 5181 253------------------------------29 6099522805112522 7021 257351 7187592740510 64122 084Realisedlosses notrecoverableR'000--134232-----------7242262DEPARTMENT OF DEFENCE
D EPARTMENT OF D EFENCE, VOTE 21ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 20<strong>07</strong> (continued)ANNEXURE 2A (continued)STATEMENT OF FINANCIAL GUARANTEES ISSUED AS AT 31 MARCH 20<strong>07</strong> - LOCALGuarantor InstitutionGuarantee inrespect <strong>of</strong>OriginalguaranteedcapitalamountR'000Openingbalance asat 1 April<strong>2006</strong>R'000Guaranteesissuedduring theyearR'000Guaranteesreleasedduring theyearR'000Guaranteedinterest outstandingas at31 March 20<strong>07</strong>R'000Closingbalance31 March20<strong>07</strong>R'000Northern Province DevelopmentCorporationOld Mutual BankRisima Housing CorporationSA Development Corporation LtdSA Home LoansSouth FinStandard BankVenda Building SocietyVenda National Development Corporation<strong>Department</strong> <strong>of</strong> Public WorksSubtotal-910 58170186185714 04782112-123 026--3880541 515-1 06336825259 251-------------------------------99 518108186182113 30285012-115 290Total- 123 272 1 515 9 497- 115 290Realisedlosses notrecoverableR'000-2219------7528528ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 263
Financial StatementsD EPARTMENT OF D EFENCE, VOTE 21ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 20<strong>07</strong> (continued)ANNEXURE 2BSTATEMENT OF CONTINGENT LIABILITIES AS AT 31 MARCH 20<strong>07</strong>Nature <strong>of</strong> LiabilityOpening Balance1 April <strong>2006</strong>R'000Liabilitiesincurred duringthe yearR'000Liabilities paid/cancelled/reducedduring the yearR'000LiabilitiesrecoverableR'000Claims against the departmentCivil claimsMotor vehicle accident claimsSubtotal998 1564 1651 002 321310 895892311 78712 06818712 255Environmental liabilitySubtotal7 10<strong>07</strong> 10<strong>07</strong><strong>07</strong>0--Total1 009 421311 85712 255------Closing Balance31 March 20<strong>07</strong>R'0001 296 9834 8701 301 8537 17<strong>07</strong> 1701 309 023264DEPARTMENT OF DEFENCE
D EPARTMENT OF D EFENCE, VOTE 21ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 20<strong>07</strong> (continued)ANNEXURE 3INTER-GOVERNMENTAL RECEIVABLESGovernment Entity<strong>Department</strong><strong>Department</strong> <strong>of</strong> Foreign Affairs<strong>Department</strong> <strong>of</strong> Public WorksNational Treasury<strong>Department</strong> <strong>of</strong> Education<strong>Department</strong> <strong>of</strong> Health<strong>Department</strong> <strong>of</strong> Social Development<strong>Department</strong> <strong>of</strong> Correctional ServicesNational Intelligence<strong>Department</strong> <strong>of</strong> Home Affairs<strong>Department</strong> <strong>of</strong> Safety and Security<strong>Department</strong> <strong>of</strong> Agriculture<strong>Department</strong> <strong>of</strong> Communication<strong>Department</strong> <strong>of</strong> Environmental Affairs and Tourism<strong>Department</strong> <strong>of</strong> TransportNational Director <strong>of</strong> Public Prosecution<strong>Department</strong> <strong>of</strong> Water Affairs and ForestryGauteng Provincial GovernmentLimpopo Provincial GovernmentSubtotalConfirmed balance31/03/20<strong>07</strong> 31/03/<strong>2006</strong>R'000R'000--7 4953--14-179-7 69127-----------3-7--3-7302-53357--Unconfirmed balance Total31/03/20<strong>07</strong> R'00031/03/<strong>2006</strong> R'00031/03/20<strong>07</strong>R'0002 063-106112236537540917-67423--1-3 9404 042143516321-2--345--11942341--5 6282 063-7 6011422361937540917-67423--180-11 631Other Government EntitiesState Information Technology AgencySubtotal----555555Total7 6913573 9455 63311 63631/03/<strong>2006</strong>R'0004 069143516324-9--348-742142341535 985555 990ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 265
Financial StatementsD EPARTMENT OF D EFENCE, VOTE 21ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 20<strong>07</strong> (continued)ANNEXURE 4INTER-DEPARTMENTAL PAYABLES - CURRENTGovernment Entity<strong>Department</strong>Amounts not included in Statement <strong>of</strong> Financial Position<strong>Department</strong> <strong>of</strong> Public WorksNational Treasury<strong>Department</strong> <strong>of</strong> Education<strong>Department</strong> <strong>of</strong> Health<strong>Department</strong> <strong>of</strong> Correctional Services<strong>Department</strong> <strong>of</strong> Justice and Constitutional Development<strong>Department</strong> <strong>of</strong> Safety and Security<strong>Department</strong> <strong>of</strong> Agriculture<strong>Department</strong> <strong>of</strong> Provincial and Local Government<strong>Department</strong> <strong>of</strong> Water Affairs and Forestry<strong>Department</strong> <strong>of</strong> Public Service and Administration<strong>Department</strong> <strong>of</strong> Foreign AffairsGovernment Garage Transport<strong>Department</strong> <strong>of</strong> HousingSocial Welfare Northern CapeFree State Provincial GovernmentTotalConfirmed balance31/03/20<strong>07</strong> 31/03/<strong>2006</strong>R'000R'000----------------------------------Unconfirmed balance Total31/03/20<strong>07</strong> R'00031/03/<strong>2006</strong> R'00031/03/20<strong>07</strong>R'000821941251803670432-4254128 321310-1-31 4415-28742491296110-251711 6601158-1713 181821941251803670432-4254128 321310-1-31 44131/03/<strong>2006</strong>R'0005-28742491296110-251711 6601158-1713 181266DEPARTMENT OF DEFENCE
SPECIAL DEFENCE ACCOUNTREPORT OF THE AUDITOR-GENERAL TO PARLIAMENT ONTHE FINANCIAL STATEMENTSAND PERFORMANCEINFORMATION OF THESPECIAL DEFENCE ACCOUNTfor the year ended 31 March 20<strong>07</strong>a nationalpartnershipto build abetter lifefor allDEPARTMENT:DEFENCEREPORT ON THE FINANCIAL STATEMENTSIntroduction1. I have audited the accompanying financial statements <strong>of</strong> the Special <strong>Defence</strong>Account which comprise the balance sheet as at 31 March 20<strong>07</strong>, income statementand cash flow statement for the year then ended, and a summary <strong>of</strong> significantaccounting policies and other explanatory notes, as set out on pages271 to 279 .Responsibility <strong>of</strong> the accounting <strong>of</strong>ficer for thefinancial statements2. The accounting <strong>of</strong>ficer is responsible for the preparation and fair presentation<strong>of</strong> these financial statements in accordance with National Treasury approvaldated 30 March 20<strong>07</strong> and as disclosed in note 1 to the financial statements, andin the manner required by the Public Finance Management Act, 1999 (Act No.1 <strong>of</strong> 1999) (PFMA). This responsibility includes:● designing, implementing and maintaining internal control relevant tothe preparation and fair presentation <strong>of</strong> financial statements that are freefrom material misstatement, whether due to fraud or error● selecting and applying appropriate accounting policies● making accounting estimates that are reasonable in the circumstances.Responsibility <strong>of</strong> the Auditor-General3. As required by section 188 <strong>of</strong> the Constitution <strong>of</strong> the Republic <strong>of</strong> South Africa,1996, read with section 4 <strong>of</strong> the Public Audit Act, 2004 (Act No. 25 <strong>of</strong> 2004) andANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong>267
section 5 <strong>of</strong> the <strong>Defence</strong> Special Account Act, 1974 (Act No. 6 <strong>of</strong> 1974), my responsibility is to express an opinionon these financial statements based on my audit.4. I conducted my audit in accordance with the International Standards on Auditing and General Notice 647 <strong>of</strong>20<strong>07</strong>, issued in Government Gazette No. 29919 <strong>of</strong> 25 May 20<strong>07</strong>. Those standards require that I comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance whether the financial statementsare free from material misstatement.5. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in thefinancial statements. The procedures selected depend on the auditor's judgement, including the assessment <strong>of</strong>the risks <strong>of</strong> material misstatement <strong>of</strong> the financial statements, whether due to fraud or error. In making thoserisk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation<strong>of</strong> the financial statements in order to design audit procedures that are appropriate in the circumstances,but not for the purpose <strong>of</strong> expressing an opinion on the effectiveness <strong>of</strong> the entity's internal control.6. An audit also includes evaluating the:● appropriateness <strong>of</strong> accounting policies used● reasonableness <strong>of</strong> accounting estimates made by management● overall presentation <strong>of</strong> the financial statements.7. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my auditopinion.Basis <strong>of</strong> accounting8. Special <strong>Defence</strong> Account's (SDA) policy is to prepare the financial statements on the entity-specific basis <strong>of</strong>accounting set out in note 1 to the financial statements.Opinion<strong>Report</strong> <strong>of</strong> the Auditor-General9. In my opinion, the financial statements have been prepared, in all material respects, in accordance with thebasis <strong>of</strong> accounting described in note 1 to the financial statements and as approved by the National Treasuryon 30 March 20<strong>07</strong>.Emphasis <strong>of</strong> mattersWithout qualifying my audit opinion, I draw attention to the following matters:10. Significant uncertainty10.1 Sensitive nature <strong>of</strong> certain transactions:The level <strong>of</strong> audit assurance for certain sensitive transactions that are included in the financial statements to theamount <strong>of</strong> R37 727 146 is lower than for ordinary audits as a result <strong>of</strong> the circumstances under which they areincurred and recorded, as well as the circumstances under which the assets and services are procured andutilised.10.2 Claim against the state:Included in note 10 to the financial statements is an amount <strong>of</strong> R115 914 849 as a contingent liability for a potentialclaim against the state by a foreign company as a result <strong>of</strong> the withdrawal <strong>of</strong> the approval for the sensitiveproject by the minister. This could result in the claim against the SDA being considered as irregular expenditure.The matter is however being pursued at inter state level by the minister.OTHER MATTERSI draw attention to the following matters that are ancillary to my responsibilities in the audit <strong>of</strong> the financialstatements:11. Matters <strong>of</strong> governance11.1 Classification <strong>of</strong> the SDA:With reference to paragraph 5.2 <strong>of</strong> my previous audit report, the financial reporting framework classification<strong>of</strong> the SDA is still unknown due to the non-existence <strong>of</strong> an appropriate act and policy mechanisms for the man-268DEPARTMENT OF DEFENCE
agement and reporting <strong>of</strong> the SDA. For the present financial year, National Treasury approved an accountingframework for the SDA similar to the previous year's accounting treatment.The <strong>Department</strong> has indicated that they are still to engage the National Treasury regarding the accountingframework applicable for the SDA for the 20<strong>07</strong>-08 financial year and onwards and would reconsider theirrequest for reclassification <strong>of</strong> the SDA as a Schedule 4 entity in the light <strong>of</strong> new developments concerning thefuture <strong>of</strong> the SDA, as such, and the future role <strong>of</strong> Armscor.11.2 The compliance programme:As reported previously, a signed copy <strong>of</strong> the constitution for the Compliance Programme, namely the ArmsControl and Non-Proliferation Fund Committee, which was approved in principle by the NationalConventional Arms Control Committee (NCACC) in the 2004-05 financial year, is still awaited.This is due to the compliance programme not being subject to an integrated management strategy and riskassessment plan dealing with the programme-wide objectives, and the lack <strong>of</strong> a control structure to addressthose risks.Since 1997, the government <strong>of</strong> the Republic <strong>of</strong> South Africa (RSA) has in terms <strong>of</strong> the consent agreement certainresponsibilities towards the government <strong>of</strong> the United States <strong>of</strong> America (USA), for example:- To prepare a written manual that addresses the handling <strong>of</strong> United States Origin <strong>Defence</strong> Article, servicesor technical data, and which requires all employees <strong>of</strong> each company to follow the company's complianceprocedures;- A transparent and verifiable process for assessing the performance <strong>of</strong> each company in implementing theprogramme;- The appointment by the RSA <strong>of</strong> an impartial and independent ombudsman, who must be a citizen <strong>of</strong> theRSA, to monitor the performance <strong>of</strong> the company to ensure that the programme is fully implemented andto compile reports at regular intervals for submission to the relevant parties.The <strong>Department</strong> <strong>of</strong> Foreign Affairs responded to the Consent Agreement with the United States <strong>Department</strong> <strong>of</strong>States in Note no. 15 dated 24 January 1997, indicating that the Government <strong>of</strong> South Africa concurred with theagreement, and, unless otherwise agreed in writing between the two governments, payment and use <strong>of</strong> thesefunds would be effected by no later than 31 December 2000.In the absence <strong>of</strong> the above manuals and information, the Auditor-General is not in a position to confirmwhether the agreement between the RSA and USA has been fully implemented.12. Material non-compliance with applicable legislation12.1 Investment <strong>of</strong> balances:Control activities described in section 3 <strong>of</strong> the <strong>Defence</strong> Special Account Act, 1974 (Act No. 6 <strong>of</strong> 1974) are notapplied properly. According to section 3 <strong>of</strong> the <strong>Defence</strong> Special Account Act, any moneys to the credit <strong>of</strong> theaccount which are not required for immediate use or as a reasonable working balance, shall be invested. Duringthe audit it was found that the above requirement was not complied with. Furthermore, no policies and proceduresand/ or documented approval from National Treasury governing the handling <strong>of</strong> the above investmentsin the SDA environment, could be obtained.13. Internal control: Control activities13.1 Accounting for foreign project expenditure:Control activities described in policy and procedure manuals are not applied properly, which is contrary to therequirement that acquisitions relating to support activities, for example Programme Management, subsistenceand transport, and overseas operating expenditure, should be budgeted for and expensed by the General<strong>Defence</strong> Account (GDA). It was discovered that the requirements <strong>of</strong> the above policy were not complied withas acquisition-related support activities for foreign projects are accounted for against the SDA.OTHER REPORTING RESPONSIBILITIES<strong>Report</strong>ing on performance information14. I have audited the performance information as set out on pages 131 to 135.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 269
Responsibility <strong>of</strong> the accounting <strong>of</strong>ficer for the Special <strong>Defence</strong>Account15. The accounting <strong>of</strong>ficer has additional responsibilities as required by section 40(3)(a) <strong>of</strong> the PFMA to ensure thatthe annual report and audited financial statements fairly present the performance against predetermined objectives<strong>of</strong> the SDA.Responsibility <strong>of</strong> the Auditor-General16. I conducted my engagement in accordance with section 13 <strong>of</strong> the Public Audit Act, 2004 (Act No. 25 <strong>of</strong> 2004)read with General Notice 646 <strong>of</strong> 20<strong>07</strong>, issued in Government Gazette No. 29919 <strong>of</strong> 25 May 20<strong>07</strong>.17. In terms <strong>of</strong> the foregoing my engagement included performing procedures <strong>of</strong> an audit nature to obtain sufficientappropriate audit evidence about the performance information and related systems, processes and procedures.The procedures selected depend on the auditor's judgement.18 I believe that the evidence I have obtained is sufficient and appropriate to provide a basis for the audit findings.Audit findings19. No audit findings came to the fore.APPRECIATION20. The assistance rendered by the staff <strong>of</strong> the <strong>Department</strong> <strong>of</strong> <strong>Defence</strong> and Armscor during the audit is sincerelyappreciated.<strong>Report</strong> <strong>of</strong> the Auditor-GeneralJ.E. van Heerden for Auditor-GeneralPretoria31 July 20<strong>07</strong>270DEPARTMENT OF DEFENCE
SPECIAL DEFENCE ACCOUNTBALANCE SHEETas at 31 March 20<strong>07</strong>Note<strong>2006</strong>/<strong>07</strong>R'0002005/06R'000ASSETSCurrent assets4 044 9383 818 537Advances212 0498 842Trade and other receivables3117 06687 392Cash and cash equivalents43 898 8933 706 650Investments516 93015 653Total assets4 044 9383 818 537EQUITY AND LIABILITIESEquityReserves3 441 5862 763 145Current liabilitiesCreditors6603 3521 055 392Total equity and liabilities4 044 9383 818 537ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 271
SPECIAL DEFENCE ACCOUNTINCOME STATEMENTfor the year ended 31 March 20<strong>07</strong>Note<strong>2006</strong>/<strong>07</strong>R'0002005/06R'000Revenue8 378 4689 461 484Transfer from <strong>Department</strong> <strong>of</strong> <strong>Defence</strong>8 280 7389 258 839Other revenue797 720202 637Interest received108Less:Expenditure87 700 0277 870 012Net pr<strong>of</strong>it for the period678 4411 591 472Financial Statements272DEPARTMENT OF DEFENCE
SPECIAL DEFENCE ACCOUNTSTATEMENT OF CHANGES IN EQUITYfor the year ended 31 March 20<strong>07</strong><strong>2006</strong>/<strong>07</strong>R'0002005/06R'000AccumulatedincomeAccumulatedincomeBalance at beginning <strong>of</strong> the yearNet pr<strong>of</strong>it for the yearBalance at end <strong>of</strong> the year2 763 145678 4413 441 5861 171 6731 591 4722 763 145ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 273
SPECIAL DEFENCE ACCOUNTCASH FLOW STATEMENTfor the year ended 31 March 20<strong>07</strong>Note<strong>2006</strong>/<strong>07</strong>R'0002005/06R'000Cash flow from operating activitiesNet pr<strong>of</strong>itAdjustment for investment incomeOperating pr<strong>of</strong>it before working capital changesWorking capital changes(Increase)/decrease in trade and other receivables(Increase)/decrease in advancesDecrease in creditors678 441(10)678 431(484 921)(29 674)(3 2<strong>07</strong>)(452 040)1 591 472(8)1 591 464(16 009)12 7871 726(30 522)Cash generated from operationsInterest receivedNet cash flow from operating activities193 51010193 5201 575 45581 575 463Cash flow from investing activitiesInvestmentNet cash outflow from investing activities(1 277)(1 277)(983)(983)Financial StatementsNet increase in cash and cash equivalentsCash and cash equivalents at beginning <strong>of</strong> the yearCash and cash equivalents at end <strong>of</strong> the year4192 2433 706 6503 898 8931 574 4802 132 1703 706 650274DEPARTMENT OF DEFENCE
SPECIAL DEFENCE ACCOUNTNOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 March 20<strong>07</strong>1. Accounting policyThe Ministers <strong>of</strong> <strong>Defence</strong> and Finance approve an annual budget in accordance with the provisions <strong>of</strong> the <strong>Defence</strong>Special Account Act, 1974 (Act No. 6 <strong>of</strong> 1974), whereafter the budgeted amount is dealt with as a transfer paymentfrom the <strong>Department</strong> <strong>of</strong> <strong>Defence</strong>. The actual expenditure is reflected in the financial statements.The financial statements are prepared on the historical cost basis. The following are the principal accounting policiesused by the Special <strong>Defence</strong> Account, which are consistent with those <strong>of</strong> the previous year and approved by theAccountant General.1.1 Underlying assumptionThe financial statements are prepared on the modified accrual basis.1.2 Expenditure on fixed assetsFor the purpose <strong>of</strong> the Special <strong>Defence</strong> Account, assets purchased are written <strong>of</strong>f when they are paid for. The cost isbrought to account as expenditure. Advance payments made in terms <strong>of</strong> contracts are expensed at date <strong>of</strong> payment.The assets are included in the asset register <strong>of</strong> the <strong>Department</strong> <strong>of</strong> <strong>Defence</strong> at the date <strong>of</strong> delivery <strong>of</strong> the asset.1.3 RevenueWith the exception <strong>of</strong> funds transferred from the Vote, revenue from the sale <strong>of</strong> equipment is recognised after the<strong>Department</strong> <strong>of</strong> <strong>Defence</strong> identify it for sale and all the significant risks and rewards <strong>of</strong> ownership are transferred tothe buyer and it is probable that the economic benefits, which could be measured reliably, will flow to the Special<strong>Defence</strong> Account. The funds transferred from the Vote are accounted for on a cash basis.1.4 Foreign exchangeTransactions in foreign currency are translated at the rates <strong>of</strong> exchange ruling at transaction dates. Monetary assetsand liabilities are translated at the rates <strong>of</strong> exchange ruling at balance sheet date.<strong>2006</strong>/<strong>07</strong>R'0002005/06R'0002. Advances 12 0498 842National <strong>Defence</strong> Force projectsStrategic <strong>Defence</strong> Procurement Programme (SDPP) subsistence& travel advances5 2516 7983 7525 0903. Trade and other receivables 117 06687 392Trade debtorsIntelligence divisionSpecial forcesClearing account72 79226 8448 8968 53451 54626 6127 9941 2404. Cash and cash equivalentsPaymaster General Account3 898 8933 706 650ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 275
SPECIAL DEFENCE ACCOUNTNOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 March 20<strong>07</strong> (continued)<strong>2006</strong>/<strong>07</strong>R'0002005/06R'0005. Investments 16 93015 653Corporation for Public DepositsCorporation for Public Deposits (Compliance Programme)12716 80311815 5356. Creditors 603 3521 055 392Compliance Programme as per agreement between the USAand SA GovernmentsOpening balance at beginning <strong>of</strong> yearExpenditureInterest earned on investmentContract finesRevenue payable to the National Revenue FundTrade creditorsProvision for Strategic <strong>Defence</strong> Procurement ProgrammeOther16 80315 536-1 26720 827125 423205 116225 5779 60615 53514 560(40)1 01513 81056 179104 927864 7471946.1 Included in the provision <strong>of</strong> R225 576 721 is R213 301 791 for the foreign component <strong>of</strong> the Strategic <strong>Defence</strong>Procurement Programme consisting <strong>of</strong> EUR 8 234 652, GBP 2 808 608, USD 4 269 670 and SEK 55 881 771. Thisamount relates to invoices and goods received prior to 31 March 20<strong>07</strong> in respect <strong>of</strong> the Strategic <strong>Defence</strong>Procurement Programme. The amount is contractually payable in the 20<strong>07</strong>/2008 financial year and will be fundedfrom the 20<strong>07</strong>/2008 <strong>Department</strong> <strong>of</strong> <strong>Defence</strong> transfer payment. No forward cover was utilised.Financial Statements7. Other revenue 97 720202 637Other revenueSales <strong>of</strong> strategic equipmentForeign exchange pr<strong>of</strong>it on sales <strong>of</strong> strategic equipmentForeign exchange pr<strong>of</strong>it on the SDPPMarketing supportSensitive projectsInterest received on replacement ordersSundry223 143168 2222 04751 366-1 16519324258 81653 482703192 63627611 51512192Less: Payable to National Revenue Fund(125 423)(56 179)276DEPARTMENT OF DEFENCE
SPECIAL DEFENCE ACCOUNTNOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 March 20<strong>07</strong> (continued)<strong>2006</strong>/<strong>07</strong>R'0002005/06R'0008. Expenditure 7 700 0277 870 012Major projectsOther projectsLandward <strong>Defence</strong>Air <strong>Defence</strong>Maritime <strong>Defence</strong>Military Health SupportCommand and ControlJoint SupportOperating projectsSensitive projectsWrite-<strong>of</strong>fForeign exchange rate adjustmentsProvision for write down <strong>of</strong> foreign banks6 512 874359 16773 17779 32858 39460052147 616590 80985 875-143 82<strong>07</strong> 4826 727 245385 73269 32577 78769 803-15 879152 938656 93674 9519723 5331 5188.1 General expenditure such as auditor's remuneration is included in the General <strong>Defence</strong> Account.8.2 The total fruitless and wasteful expenditure amounts to R721 <strong>07</strong>1 (2005/06: R143 277).8.3 Included in major projects are legal fees <strong>of</strong> R154 644 (2005/06: R113 731) relating to the contingent liability in note10.8.4 Included in expenditure for sensitive projects is a foreign exchange pr<strong>of</strong>it <strong>of</strong> R64 352 (2005/06: R44 335).9. Estimated future expenditure approved by Armscor 17 494 992 18 686 150Strategic <strong>Defence</strong> Procurement Programme capital commitmentCommitmentsCommitments in respect <strong>of</strong> contracts entered intoCommitments approved, but contracts not yet entered into5 808 45211 686 5405 713 1575 973 3836 900 81811 785 3325 739 4656 045 8679.1 The amount relating to the Strategic <strong>Defence</strong> Procurement Programme capital commitment represents thecapital amount at prevailing exchange rates at year end, but excludes escalation and other additional costs (e.g.Finance costs). Included in the amount <strong>of</strong> R5 808 452 433 (2005/06: R6 900 818 447) is a foreign component <strong>of</strong>EUR 20 <strong>07</strong>9 008, USD 178 024 317, GBP 137 028 <strong>07</strong>8 and SEK 1 972 250 865 (2005/06: EUR 64 140 709,USD 261 425 333, GBP 210 512 701 and SEK 2 630 885 362). No forward cover was utilised.9.2 It is intended to finance expenditure from future <strong>Department</strong> <strong>of</strong> <strong>Defence</strong> transfer payment funds and from workingcapital generated within the Special <strong>Defence</strong> Account.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 277
SPECIAL DEFENCE ACCOUNTNOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 March 20<strong>07</strong> (continued)<strong>2006</strong>/<strong>07</strong>R'0002005/06R'00010. Contingent liabilityClaims against the state252 87223 957A case <strong>of</strong> litigation against the Special <strong>Defence</strong> Account relating to an administrative dispute on the tender processfor an estimated amount <strong>of</strong> R149 000 000 has been settled on R15 000 000.11. <strong>Defence</strong> Industrial Participation (DIP)11.1 DIP credits awarded and planned for current yearDIP credits awardedDIP credits awarded - SDPPDIP credits awarded - Non-SDPP2 206 5482 134 67171 8771 757 5751 595 822161 753Note: Previous year figures have been decreased with R6 600 509 restated due to the removal <strong>of</strong> values relatedto Eurocopter DIP which is a SA Police projectDIP credits plannedDIP credits planned - SDPPDIP credits planned - Non-SDPP1 587 4501 570 20017 2501 321 0591 246 54774 512Note: Previous year figures have been decreased with R9 998 235 restated due to the removal <strong>of</strong> values relatedto Eurocopter DIP which is a SA Police projectFinancial Statements11.2 Previous years DIP credits awarded and plannedCumulative DIP credits awardedCumulative DIP credits awarded - SDPPCumulative DIP credits awarded - Non-SDPPCumulative DIP credits plannedCumulative DIP credits planned - SDPPCumulative DIP credits planned - Non-SDPP16 906 91811 417 7115 489 2<strong>07</strong>15 708 94810 853 2414 855 7<strong>07</strong>14 700 3709 283 0405 417 330Note: Previous year figures have been decreased with R47 190 476 restated due to the removal <strong>of</strong> values relatedto Eurocopter DIP which is a SA Police project13 772 2228 933 7654 838 457Note: Previous year figures have been decreased with R50 588 203 restated due to the removal <strong>of</strong> values relatedto Eurocopter DIP which is a SA Police project11.3 Outstanding DIP obligationsOutstanding DIP obligationsOutstanding DIP obligations - SDPPOutstanding DIP obligations - Non-SDPP4 429 0443 693 05<strong>07</strong>35 9946 524 5755 827 721696 854Note: Previous year figures have been decreased with R33 182 236 restated due to the removal <strong>of</strong> values relatedto Eurocopter DIP which is a SA Police project278DEPARTMENT OF DEFENCE
SPECIAL DEFENCE ACCOUNTNOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 March 20<strong>07</strong> (continued)11.4 The DIP programme applies to all foreign defence purchases with an import content exceeding 2 million USD andattracts a DIP obligation <strong>of</strong> at least 50% <strong>of</strong> the import content. Armscor is responsible for the management and monitoring<strong>of</strong> the DIP programme on behalf <strong>of</strong> the <strong>Department</strong> <strong>of</strong> <strong>Defence</strong>. National Industrial Participation (NIP)applies to all foreign contracts above 10 million USD and are handled by the <strong>Department</strong> <strong>of</strong> Trade and Industry.11.5 DIP represents the obligations <strong>of</strong> foreign Original Equipment Manufacturers that supply military equipment to theDOD through Armscor. The obligation represents the value <strong>of</strong> orders to be placed on SA industry, and technologyto be transferred.12. Post Balance Sheet EventRevenue Payable to National Revenue FundNational Treasury has approved that the revenue payable to the National Revenue Fund in the <strong>2006</strong>/20<strong>07</strong> financialyear, as disclosed in Note 7, will be refunded in the 20<strong>07</strong>/2008 financial year.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 279
Financial StatementsSAS MENDI - The 4th <strong>of</strong> the Valor Class Frigates.280DEPARTMENT OF DEFENCE
NATIONAL CONVENTIONAL ARMSCONTROL ACTa nationalpartnershipto build abetter lifefor allDEPARTMENT:DEFENCEASSURANCE REPORT OF THEAUDITOR-GENERAL TOPARLIAMENT ONCOMPLIANCE WITH SECTION4 OF THE NATIONALCONVENTIONAL ARMSCONTROL ACT IN TERMS OFSECTION 12 OF THENATIONAL CONVENTIONALARMS CONTROL ACT, 2002for the year ended 31 March 20<strong>07</strong>Introduction1. We have performed our limited assurance engagement on the compliance bythe National Conventional Arms Control Committee (NCACC) with referenceto section 4 <strong>of</strong> the National Conventional Arms Control Act, 2002, Act No. 41<strong>of</strong> 2002, (the Act) as required by section 12 <strong>of</strong> the Act.To the fullest extent permitted by law, we do not accept or assume responsibilityto anyone other than the Parliament, for our work, for this report, or forthe conclusions we have formed.NCACC's responsibility2. The NCACC are responsible for compliance to the Act and related regulationslisted in the first paragraph 1 <strong>of</strong> this report.ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong>281
Auditor-General's responsibility3. As required by section 12 <strong>of</strong> the Act, our responsibility is to conclude on compliance <strong>of</strong> the NCACC withrespect to section 4 <strong>of</strong> the Act. We performed our assurance engagement in accordance with the InternationalStandard on Assurance Engagements (3000), Assurance Engagements Other Than Audits or Reviews <strong>of</strong> HistoricFinancial Information. That standard requires us to comply with ethical requirements and to plan and performour assurance engagement to obtain sufficient appropriate evidence regarding the subject matter <strong>of</strong> the engagementto support our assurance conclusion, expressed below.Summary <strong>of</strong> work performedNational Conventional Arms Control Act4. As the auditor <strong>of</strong> the NCACC, we have audited the <strong>Department</strong> <strong>of</strong> <strong>Defence</strong>, which provides the Secretariat tothe NCACC, for the period ended 31 March 20<strong>07</strong>. Our limited assurance procedures included the followingspecific procedures:● Inspected the processes and structures established by the committee for effective control <strong>of</strong> trade in conventionalarms.● Inspected the guidelines, structures and processes established by the committee for the scrutiny andassessment <strong>of</strong> the application for the issue <strong>of</strong> a permit.● Confirmed that the committee liaises with relevant Government agencies regarding the enforcement <strong>of</strong>the Act● Inspected all instances where the issue <strong>of</strong> a permit has been refused by the committee and confirmed thatthis has been done as set out in section 14 <strong>of</strong> the Act.● Inspected issued permits and confirmed that all these permits comply with the conditions as indicated inthe regulations. We have however not performed compliance procedures in the following areas <strong>of</strong> theNCACC responsibilities:■ Valuation <strong>of</strong> end user certificates received.■ Control evaluation at development and manufacturing companies.■ Compliance visit reports, conclusion and recommendations.● Inspected the register which must be kept in the prescribed form <strong>of</strong> persons involved in trade in conventionalarms.● Inspected the register for all permits issued.■ Selected a sample <strong>of</strong> permits issued and followed through to the register.■ Selected a sample <strong>of</strong> entries in the register and followed through to the issued permits.● Confirmed that all reports issued, have been issued as requested by section 23 <strong>of</strong> the Act.5. For the purpose <strong>of</strong> our limited assurance conclusion, our evidence gathering procedures are more limited thanfor a reasonable assurance engagement, as less assurance is therefore obtained than in a reasonable assuranceengagement.6. We believe that the evidence obtained as part <strong>of</strong> our assurance engagement <strong>of</strong> the NCACC for the period ended31 March 20<strong>07</strong>, is sufficient and appropriate to provide a basis for our conclusion expressed below.Conclusion7. Based on our work performed, except for the items listed below, nothing came to our attention to indicate thatthe NCACC did not comply with section 4 <strong>of</strong> the Act.● As required by section 4(1)(a) <strong>of</strong> the Act the NCACC should establish processes and structures necessaryfor effective control <strong>of</strong> trade in conventional arms. The administrative structure <strong>of</strong> the NCACC, theDirectorate <strong>of</strong> Conventional Arms Control (DCAC) operates in terms <strong>of</strong> the Draft DCAC processing unitoperating procedures, which are still in the process <strong>of</strong> being redefined. These procedures have not beenapproved by the NCACC.● Not all reporting requirements as per section 23 <strong>of</strong> the Act were complied with. The following matterrelates to non-compliance with section 23 <strong>of</strong> the Act:■ Section 23(1)(b) <strong>of</strong> the Act requires that the NCACC should submit quarterly reports to the Cabinetand Parliament. For the period under review no such quarterly reports have been submitted.282DEPARTMENT OF DEFENCE
●●■ Section 23(1)(c) <strong>of</strong> the Act require that the annual report for Parliament should be submitted in thefirst quarter <strong>of</strong> the following period. The January <strong>2006</strong> to December <strong>2006</strong> report has not been submittedto Parliament within the first quarter.Having reference to the audit report <strong>of</strong> the <strong>Department</strong> <strong>of</strong> <strong>Defence</strong> 2005/06 page 267 paragraph 6.15 it wasindicated that the inspectorate function for the NCACC, as required by section 9 <strong>of</strong> the Act has been establishedbut not yet staffed. During the audit for the period ended 31 March 20<strong>07</strong> it is confirmed that thefunction <strong>of</strong> the inspectorate has been established and that an inspectorate has been appointed. Howeverthey are still busy with the uplifting <strong>of</strong> this process to fully comply with section 9 <strong>of</strong> the Act.During the inspection certain permits could not be provided.APPRECIATIONThe assistance rendered by the staff <strong>of</strong> the DCAC during the engagement is sincerely appreciated.JE van Heerden for Auditor-GeneralPretoria17 August 20<strong>07</strong>ANNUAL REPORT FY <strong>2006</strong> - 20<strong>07</strong> 283
LIST OF ABBREVIATIONS, ACRONYMS AND REFERENCESACTCAFBAIDSArmy Combat Training CentreAir Force BaseAcquired Immune Deficiency SyndromeNCACCNICOCNational Conventional Arms ControlCommitteeNational Intelligence Co-ordinatingCommitteeAMHUArea Military Health UnitARMSCORArmaments Corporation <strong>of</strong> South AfricaLtdOSISOperational Support InformationSystemC 4 I 2 RSCIORCommand, Control, Computers,Communication, Information,Intelligence, Reconnaissance andSurveillanceConfederation Internallie des Officiersdes ReservesP5 CountriesPSAPPermanent members <strong>of</strong> United NationsSecurity Council: France, People'sRepublic <strong>of</strong> China, Russian Federation,United Kingdom and United States <strong>of</strong>AmericaPublic Service Act Personnel (civilians)PSOPeace Support OperationsAbbreviations, Acronyms and ReferencesDCACDIDTETADODDRCDSCEEZETDFYGCISHIVDirectorate <strong>of</strong> Conventional ArmsControlDiplomacy, Intelligence, <strong>Defence</strong> andTrade Education and Training Authority<strong>Department</strong> <strong>of</strong> <strong>Defence</strong>Democratic Republic <strong>of</strong> the Congo<strong>Defence</strong> Staff CouncilEconomic Exclusion ZoneEducation, Training and DevelopmentFinancial YearGovernment Communication andInformation SystemHuman Immunity VirusReg FRes FRSASAAFSADCSAMHSSANSANDFSAPSSCOPASDASDPSECDEFRegular ForceReserve ForceRepublic <strong>of</strong> South AfricaSouth African Air ForceSouthern African DevelopmentCommunitySouth African Military Health ServiceSouth African NavySouth African National <strong>Defence</strong> ForceSouth African Police ServiceStanding Committee on PublicAccountsSpecial <strong>Defence</strong> AccountStrategic <strong>Defence</strong> PackageSecretary <strong>of</strong> <strong>Defence</strong>IRPSISDSCInternational Relations Peace andSecurityInter-State <strong>Defence</strong> and SecurityCommitteeServicesSITASTFEPSA Army; SA Air Force; SA Navy; SAMilitary HealthServiceState Information Technology AgencyShort Term Force Employment PlanMOUMemorandum <strong>of</strong> UnderstandingMTEFMedium Term Expenditure Framework284DEPARTMENT OF DEFENCE
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