Chapter 2 - P rogramme 1 - Department of Defence

| Department of Defence | Vote 20 |
REPORT OF THE ACCOUNTING OFFICER
for the year ended 31 March 2008
Report by the Accounting Officer to the Executive Authority and Parliament of the Republic of South
Africa.
1. General Review of the State of Financial Affairs
1.1 Strategic decisions and issues
This section provides an overview of the strategic positioning that the Department of Defence
has taken as directed by the Executive Authority and the Accounting Officer, during the period
under review, to improve the resource base as well as to maximise the efficient, effective, economic
and equitable accountability thereof.
1.1.1 Strategic decisions
1.1.1.1 Premised on the Minister of Defence priorities for the financial year 2007/2008 the mobilisation
of resources for the operationalisation of the Defence Update, which now includes the Landward
Defence Programme, continued to occupy center stage, both within the Ministry and Cabinet
during the financial year. This activity has further been given impetus by the long term planning
horizon of government, and the refocusing of the Defence Update to a credible force design,
with the ensuing implications for migration to 2025.
1.1.1.2 Additionally, the re-prioritisation of the Strategic Capital Acquisition Master Plan (SCAMP) in
alignment with the Defence Update has been completed. A second iteration is to be completed in
the financial year 2008/2009.
1.1.1.3 Premised on the Apex of Priorities (Presidential Projects) determined by the President in March
2007, strategic guidelines were issued to ensure that these Presidential Projects are captured in the
DOD processes and reported on at regular intervals.
1.1.1.4 The SA Defence Related Industry Strategy was completed during the period under review
with focus areas of strategic importance such as co-ordinating and promoting local defence
industries with the view to encourage economic growth and the widening of participation within
the Defence Industry, marketing of activities within this regulated industry and collaboration
between the affected organs of state. The future of public entities which service this industry has
received some attention as a means to sustain South African ownership of intellectual property
rights. Process analysis is also underway with regards to the strategic positioning of a SA Defence
Evaluation and Research Institute (DERI) to better service the country’s research and resource
base to ensure cutting edge regarding certain technologies and “niche” areas.
1.1.1.5 With regards to the management and accounting of essential resources, strategic interventions are
in process to empower the Chief of the SA National Defence Force to manage essential resources
in the SA National Defence Force by delegating powers to the Chief of the SA National Defence
Force in terms of section 38 to 45, read with section 76, of the Public Finance Management Act,
1999 (Act No 1 of 1999) and National Treasury Regulations.
1.1.1.6 During 2006 the Minister of Defence approved the Macro Structure of the DOD, which was
characterised by a central staff component. The efficacy of the central staff component (Human
Resource Division, Defence Legal Services Division, Defence Inspectorate Division and Defence
Foreign Relations Division) is to be reviewed to improve the efficiency, effectiveness and accelerate
service delivery of those divisions.
217 Annual Report FY 2007 - 2008
| Financial Performance |