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D E P A R T M E N T O F D E F E N C EDepartment of Defence and Military VeteransVote 21REPORT OF THE ACCOUNTING OFFICERfor the year ended 31 March 20111.1.1.5 Provision of skills1.1.1.5.1 The Military Skills Development System (MSDS) was implemented in January 2003 with the aim of providing theSANDF with military human resources as required for force preparation and force employment specifications. Itforms the DOD's primary contribution to youth development. The MSDS also alleviates unemployment and povertyby preparing young people between the age of 18 and 26 years for rewarding careers either in the SANDF or for decentemployment in the broader public and private sectors. The MSDS is a two-year contract based service system and isthe main feeder system for the Regular Force and Reserves. The MSDS has the following goals:The system inducts new members into the SANDF.It equips members with basic military skills and functional training for service in the military.It evaluates member's development potential and suitability for continued services in the Regular Force andReserves.It tests members so that the organisation can choose individuals for a possible continued career in the military.It ensures a sufficiently trained pool of young and fit members to fulfil the SANDF's deployment needs.It feeds the Reserves with trained troops and junior leaders.Is the primary vehicle to rejuvenate the SANDF's Human Resource composition (Regular Force and Reserves)to improve mission readiness and to grant development opportunities to the youth.1.1.1.5.2 Since the inception of the MSDS, 33 536 youths joined the employment system of the SANDF. Of the total intake,8 542 are currently serving in the MSDS, 6 770 have separated from the SANDF (of whom 4 821 are serving in theReserves) and 18 224 translated to the Regular Forces where they are undergoing advanced training in various disciplinesand are being utilised accordingly.1.1.1.5.3 The results of implementing the MSDS are best viewed from the vantage point of rank-age compliance: only 10.8%of Privates were in the age group 18 to 24 years old in the year 2000 compared to 55% currently.1.1.1.5.4 The MSDS also is a feeder system, at entry levels, of scarce skills and critical musterings. Since its inception, 6 172youths have been employed in critical musterings i.e. air space control, aircrew, combat navy, engineer, medical professional,nursing, technical and technical air. Therefore, the MSDS significantly contributes, at entry level, to the sustainmentof scarce skills and critical musterings.1.1.1.5.5 The young men and women who emerge after MSDS service are on the whole much more mature, disciplined, servicedelivery orientated, career orientated and patriotic than one would normally expect from young people who havejust completed high-school. Through the MSDS, the SANDF continues to invest directly in South Africa's mostimportant asset, our youth. In support of the government initiative on job creation, the DOD plans to create job opportunitiesfor 5 700 young South Africans per year through the MSDS.1.1.1.6 Border Safeguarding. As per the 2009 Cabinet decision, the SANDF has assumed the borderline control function.In execution of this task under Operation CORONA, the SANDF has adopted a phased-in strategy. The first phase(Zimbabwe/South Africa border) and the second phase (Mozambique/South Africa border) has been rolled out. Thelast phase of the strategy with regards to the Lesotho/South Africa border will be completed by the financial year2012/13.1.1.1.7 Defence Industry.1.1.1.7.1 ARMSCOR and DENEL are central in this regard. Armscor is established in terms of applicable legislation to serveas the acquisition agency of the DOD. Because of this role, ARMSCOR is a critical stakeholder in so far as theSANDF's operational effectiveness is concerned. As the agency serving the DOD, ARMSCOR falls under the juris-154ANNUAL REPORT FY 2010/2011