Chapter 2 - P rogramme 1 - Department of Defence

REASONS FOR ADDITIONS TO,
OR VIREMENTS BETWEEN, MAIN
APPROPRIATION ALLOCATIONS
National Treasury approved the following
virements:
Increase in compensation to employees by
R85 million;
Increase in transfers to a public entity
(Armscor Dockyard Simon’s Town) by
R6,4 million; and
Increase in transfer payments to non-profit
institutions (Reserve Force Council) to fund
an operating shortfall.
The Accounting Officer approved the following
virements:
Building and construction work done at
Naval Base Simon’s Town; and
Alamander Consulting Services – escalation
in maintenance and upgrade costs and user
training of the Integrated Architecture
Solution.
Defraying expenditure accrued in respect of:
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Transfers to households;
Department of Public Works devolved
funds; and
Regional Council levies.
Effecting approvals granted by the Plenary
Defence Staff Council in respect of the
Departmental Programming and Budget
Committee and year-end consolidation; for
example, providing funds to defray expenditure
in respect of the mission account, licence fees,
etc.
Description of significant developments
external to the DOD that may have impacted
either on the demand for the DOD’s services or
the DOD’s ability to deliver those services
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Unforeseeable and unavoidable deployment
requests (ad hoc) at short notice;
Unpredictability of the political process in
foreign countries (Burundi) delaying the peace
process and leading to an increase in expenditure
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and deployment periods; and
Non-implementation of, and delays in, the
implementation process of ceasefire agreements
in foreign countries.
The following unforeseeable and unavoidable
peace support operations activities led to the
reprioritisation of activities:
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Operation CURRICULUM (Burundi): A
shortfall of R98 million arose as a result
of the withdrawal of the United Nations
operation in Burundi. South Africa was
subsequently requested by the African
Union to contribute to the African Union
Special Task Force established for the
protection of Palipehutu-FNL leaders
and combatants. National Treasury was
requested to augment the Defence allocation
through the adjustments budget process for
Op CURRICULUM. The request was not
approved and Defence had to reprioritise
within its allocation.
Project THEBE (Democratic Republic of
the Congo): A shortfall of R9,142 million
arose as a part of the Defence Cooperation
Agreement and the Memorandum of
Understanding on Practical Assistance
with the Integration of Armed Forces in
the Democratic Republic of the Congo.
Defence had to reprioritise within its
allocation since this request was received
after the adjustments budget process.
The unforeseeable and unavoidable request
for support to the Central African Republic
(Op VIMBEZELA) was submitted to
National Treasury through the adjustments
budget process, but the shortfall of R81, 386
million was not approved by the Treasury
Committee. The committee approved that
the support be funded through the African
Renaissance Fund.
COMMENTARY ON THE DOD’S
OVERALL PERFORMANCE, OUTLINING
KEY OUTPUTS
The actual performance against plan is reported in
Chapters 2 to 10 of the Annual Report.
13 Annual Report FY 2007 - 2008
| Chapter 1 - Strategic Profile and Defence Objectives |