annrep 1011 1 to 148.qxp - Department of Defence

D E P A R T M E N T O F D E F E N C EFY2011/12. The Landward Defence Capability has nothad the advantage of being part of the Strategic DefencePackage programme and is thus lagging in technologicallyadvanced prime mission equipment. The developmentof this capability relies on the acquisition of specificcombat and logistic product systems. This capabilityis essential to ensure the sustainment of deploymentsbeyond the borders of the RSA. Apart from additionalfunding allocated for the upgrade of the operationalambulance fleet in FY2011/12, no additional funds havebeen allocated or approved.Infrastructure and the Department of DefenceWorks Regiment. At the end of the period underreview, Project LEBAKA was completed and transferredfrom the SA Army to the Logistics Division andmerged with the Service Corps and existing facilitymanagement agencies to form the Defence WorksCapability. The macro-structure was approved by theMinister of Defence on 23 March 2011. Subsequently,the A/CSANDF issued an implementation instructionfor the establishment of the Defence Works Formationunder command of Chief of Logistics with effect from01 April 2011. The new formation is aimed at providingefficient, effective and economical operational levelfacility management, including maintenance, repair andconstruction, in support of the strategy and objectives ofthe DOD. The Service Corps, previously under commandof Chief of Human Resources, has also been integratedinto this capability. Skills development traininghas been undertaken with 676 members (56 alreadyqualified) who have gained valuable practical experienceby working on DOD and other construction projects.These members will form the core of the DefenceWorks Formation.Alignment of Defence Secretariat with its Constitutionaland Legislative Mandate. Research has beenconducted into the best possible manner of repositioningthe Defence Secretariat so as to assist the Minister in hercivil control responsibility. Both domestic and internationalexperiences were taken into account in thisresearch. During 2010, a Defence Secretariat repositionproposal was submitted to the Minister for consideration.Depending on which option is adopted, the repositioningof the Defence Secretariat might have consequentialpolicy implications.The Establishment of the Defence Force ServiceCommission and Supporting Structures. The DefenceAmendment Act (Act No 22 of 2010) which providesfor the establishment of the permanent Defence ForceService Commission was promulgated in December2010. FY2011/12 will see the promulgation of theapplicable regulations to give content to the DefenceAmendment Act with respect to the ServiceCommission. Over and above this, all necessary supportstructures to the Service Commission will also be establishedand operationalised.Transformation of ARMSCOR. ARMSCOR is establishedin terms of legislation to serve as the acquisitionagency of the DOD. ARMSCOR is therefore a criticalstakeholder in so far as the SANDF operational effectivenessis concerned. ARMSCOR falls under the jurisdictionalauthority of the Minister. Experience over theyears has repeatedly pointed towards the need for areview of the relationship between the DOD and ARM-SCOR so as to enhance efficiency and economy. A conceptualFramework for the repositioning of ARMSCORhas been developed. This framework addresses detailsof the relationship between ARMSCOR and the DOD inthe areas of business process, governance, risk, complianceand accounting.Incremental Refocusing of DENEL to Support theidentified Defence Strategic Capabilities. DENEL isa public enterprise that falls under the jurisdiction of theMinister of Public Enterprises. DENEL is crucial to theDOD in as much as it serves as the repository of certainSANDF strategic capabilities. Noting the importance ofDENEL to the SANDF operational efficiency and effectiveness,the DOD has adopted a framework whichforms the basis of its discussions with the Department ofPublic Enterprises on its relationship with DENEL. Theaim is an end state in which DENEL remains a strategicsupplier to the DOD whilst maintaining economic viabilityin its own right.Promote a Culture of Good Governance Prescripts.During 2009, the DOD introduced specific interventionsto strengthen internal controls. These interventions haveresulted in the reduction of audit qualifications fromseven to one. The one remaining audit qualification inthe area of defence asset management has been the focusfor this financial year. International experience hasshown that most defence forces across the world experiencemajor challenges with asset management.Notwithstanding this, the DOD has made significantimprovement to the management of its tangible andintangible assets. A new single logistic process has beendeveloped to ensure compliance with National Treasuryaccounting and reporting requirements and internationalauditing standards. An organisational structure wasdeveloped to support this process.Information Technology (IT). The pilot HumanResource Module has been rolled-out with a formallaunch by the Department of Public Service andAdministration. The DOD is currently undergoing trainingand testing of the module which is intended toreplace the current Human Resources application withinthe National Treasury set timelines. The DOD and theNational Treasury are finalising the discussions to gainapproval for the lifting of the moratorium for the developmentof the DOD unique logistics systems. An inte-ANNUAL REPORT FY 2010/2011 3