DEPARTMENT OF DEFENCE Annual Report FY2003 - 2004

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DEPARTMENT OF DEFENCEAnnual Report FY2003 -
2004

• By
• Mr A. Visser
• Chief Director Strategic Management
• 19 October 2004

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INTRODUCTION

• The Department of Defence Annual Report for the
  financial year 2003/04 needs to be contextualised
  and read together with the Strategic Business
  Plan for the same period.
• The Strategic Business Plan outlined the
  programme, sub-programmes, and subsequent outputs
  for the DOD which were identified within the
  constraints of the Medium-term Expenditure
  Framework.

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SCOPE

• Strategic Direction
• Defence Objectives, Outcome and Outputs
• Organisational Structures and Human Resources
  Management
• Programme Performance
• Synopsis of General Performance (Chapter 4)
• Defence Administration (Chapter 5)
• Command and Control (Chapter 6)
• Landward Defence (Chapter 7)
• Air Defence (Chapter 8)

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SCOPE (Cont)

• Maritime Defence (Chapter 9)
• Military Health Service (Chapter 10)
• Defence Intelligence (Chapter 11)
• Joint Support (Chapter 12)
• Report on the Reserve Force (App A)
• Service Delivery Improvement (App B)
• Financial Statements

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CHAPTER 1 STRATEGIC DIRECTION

• Confirms the following
• Alignment with Cabinet Priorities
• Strategic Profile
• Minister of Defences Priorities
• Responsibilities and Strategic Direction in the
  DOD
• Policy Decisions taken during FY2003/04
• Funding for Operations Planning for operations
  should not exceed the allocation.
• White Paper on Defence To be revisited.
• Defence Review To be revisited.

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CHAPTER 2 DEFENCE OBJECTIVES, OUTCOME AND
OUTPUTS

• DODS Strategic Military Objectives
• Defence against Aggression.
• Promoting Security.
• Supporting the People of South Africa
• Defence Outcome
• Effective defence for a democratic South Africa
• Government clusters. DOD participates in the
  following clusters in order to accommodate the
  Governments immediate operational needs
• Justice, Crime Prevention and Security (JCPS).
• International Relations, Peace and Security
  (IRPS).
• Governance and Administration (GA).

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CHAPTER 3STRUCTURES HR

• Contents prescribed by Public Service
  Regulations.
• HR Strategy 2010. The macro HR strategic
  direction for the DOD to be followed until the
  year 2010 is contained in HR Strategy 2010. This
  strategy addresses the high-level HR management
  concept to align the HR composition of the DOD to
  effectively and efficiently execute the DODs
  mission. Desired end-states of HR Strategy 2010
  are
• A rejuvenated SANDF HR Composition
• An affordable DOD HR Composition
• A practised One-Force Model
• A new way that members serve
• An optimally representative DOD
• Excellent HR service delivery
• Harmony between the uniformed and civilian
  components
• Retention of operational and functional expertise
• Labour peace

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CHAPTER 3 (Contd)

• Employee cost. The actual employee cost as a
  percentage of total cost including Strategic
  Defence Packages is 36 which is within the
  benchmark of 40 as stated in the 1998 Defence
  Review. However, employee cost as a percentage of
  total cost, excluding Strategic Defence Packages,
  is 52.
• Also included are
• Macro-workforce composition
• Personnel expenditure
• Employment and vacancies
• Employment changes
• Employment equity
• Performance rewards
• Utilisation of leave
• Labour relations
• Discipline
• Skills development

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CHAPTER 4SYNOPSIS OF GENERAL PERFORMANCE

• Governance and Accountability
• The DOD made great strides in improving
  efficiency and ensuring compliance with
  Government imperatives.
• Legislation and Policy
• The Antipersonnel Mines Prohibition Bill and the
  ARMSCOR Act were processed during the year under
  review.
• Defence Diplomacy
• Memoranda of Understanding
• SADC activities
• African Union activities African Standby Force

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CHAPTER 4 (Contd)

• Operations
• Regional Security operations were mainly
  deployments as part of the UN mission to the
  Democratic Republic of Congo (MONUC), and the
  African Union Mission in Burundi (AMIB). SANDF
  military observers and staff officers were
  deployed on UN missions in Ethiopia, Eritrea,
  Liberia, and Comoros. A daily average of over
  3000 men and women of the SANDF were deployed on
  these operations, making the SANDF a significant,
  if not the largest, contributor of peacekeeping
  troops in Africa.
• Support to the People operations were mainly
  focused on continuous borderline control
  operations (Op INTEXO), involving on a daily
  basis, an average of eleven companies of troops,
  (over 2600 men and women).

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CHAPTER 4 (Contd)

• Defence Capabilities
• The number of men and women serving full-time in
  the Defence Force, which peaked at 103 000 in
  1996, has been reduced to the current strength of
  just over 75 000.
• SANDF providing credible deterrence against
  aggression.
• Strategic Defence Package. The first naval
  vessels were delivered during the year and the
  first aircraft and more vessels will be supplied
  in FY2004/05.

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CHAPTER 4 (Contd)

• Social Contribution
• SAAF Project SIYANDIZA - which is an aviation
  awareness programme launched by the SA Air Force,
  reached some 60 000 learners in 55 schools.
• The Service Corps Projects Agricultural Food
  Security Project Working for Water Project and
  the Mukula Stone Crushing Project.
• Introduction of Military Skills Development.
• Project Phoenix. Transforming the Reserve Force
  young and fit recruits.

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CHAPTER 4 (Contd)

• Environmental Management
• The International Conference on Military
  Integrated Environmental Management took place in
  Pretoria in August 2003. The governments of South
  Africa and the USA sponsored the Conference,
  which was attended by 120 delegates from 26
  countries.
• During Exercise SEBOKA, held at Lohatlha, an
  environmental support team participated in the
  exercise to prepare a report on environmental
  issues. This led to the establishment of an
  Integrated Project Team for environmental
  considerations in operations.

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CHAPTER 5DEFENCE ADMINISTRATION

• The Defence Administration Programme is
  responsible for administrating and directing the
  DODs activities.
• Comprises of the following sub-programmes
• Political Direction (Ministry of Defence)
• Departmental Direction (Secretary for Defence)
• SANDF Command and Control (Chief of the SANDF)
• Policy and Planning
• Financial Services
• Departmental Acquisition and Procurement
• Corporate Services
• Inspection Services
• Equal Opportunities and Affirmative Action

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CHAPTER 5 (Contd)

• Legislation developed and finalised
  Anti-Personnel Mines Prohibition Bill Bill to
  review Armscor Act.
• International Conventions and Agreements and
  Policies developed, eg Certain Conventional
  Weapons Convention SADC Mutual Defence Pact
• Defence diplomatic activities (MOUs, bilateral
  and multilateral agreements were drafted and/or
  signed).
• In supporting the National Conventional Arms
  Control Committee, 3311 permits were issued
  during the year under review.
• Statutory requirements with regard to Strategic
  Business Plans and Annual Reports were complied
  with.

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CHAPTER 5 (Contd)

• The Defence GRAP Project was registered with the
  purpose of aligning the information support
  systems with the requirements of the PFMA and NT.
  Phase 1 (Proposed Defence Accounting Standards)
  2 (Evaluation of Directional Options) were
  successfully completed during the period under
  review.
• The delivery of corvettes as part of the
  Strategic Defence Packages.
• The first Hawk was released to the public in
  February 2004.
• The Corporate Staff Division provided sound
  centralised staff capability to the SANDF with
  regard to planning, legal, defence foreign
  relations, corporate communications, defence
  reserves and chaplain services. The Head of
  Communication was appointed in the Office of the
  Minister of Defence

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CHAPTER 5 (Contd)

• The Defence Inspectorate sought and successfully
  obtained ISO 9001200 Certification in November
  2002 from the South African Bureau of Standards
  (SABS). Thus the Inspectorate remains subject to
  ongoing audits by the SABS.
• Various policies pertaining to Equal Opportunity
  were revised.
• Good progress in making DOD facilities
  barrier-free for the disabled members.
• A Hot-line was established jointly with the
  Military Police Agency to monitor violence
  against women.

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CHAPTER 6COMMAND AND CONTROL

• The new structure comprises of a strategic level
  divisional headquarters, a joint operational
  headquarters at the operational level, and nine
  joint tactical headquarters on the tactical level
  for each province.
• The main focus of the Joint Operations Divisional
  Headquarters is on directing, planning and the
  conducting of operations in accordance with the
  Military Strategy and Employ Forces Strategy.
• The missions cover the three military strategic
  objectives, namely, Defence Against Aggression,
  Support to the People, and Promote Regional
  Security.

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CHAPTER 6 (Contd)

• External Operations Burundi, DRC, Ethiopia,
  Eritrea, Rwanda and Liberia.
• Internal Operations Operation INTEXO (Support to
  the SAPS) - Combating organised crime
• Joint and Multinational Exercises.

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CHAPTER 7LANDWARD DEFENCE

• FY2003/04 - high levels of operational activity.
  Deployments in Burundi and the Democratic
  Republic of Congo.
• Twelve Regular Force Companies and 23 Reserve
  Force Platoons were deployed internally under
  extremely restrictive funding conditions, on a
  continuous basis.
• 15 776 SA Army members also qualified on formal
  career developmental courses during the year.
• Progress in the phasing out of the Commandos,
  awaiting the SA Police Service Entry Strategy
  before the phasing out can be finalised.
• Costs of sustainment of main combat equipment,
  facilities, and general commodities have a
  serious negative impact on combat-readiness.

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CHAPTER 8AIR DEFENCE

• Support to the People of South Africa the SA
  Air Force was involved in air transport,
  humanitarian operations and coastal patrol
  missions. 1 356 hours Flown in support of the SA
  Police Services in crime prevention and border
  protection operations.
• Promoting Regional Security More than 1 800
  hours were flown in support of the deployments in
  the DRC and Burundi, and
• During the year the SA Air Force flew a total of
  35 472 hours and 3 384 force employment missions
  in service of the country.
• Return to regular operational service of the
  Boeing 707 aircraft system, by National Treasury
  approval to have all funds from flights against
  repayment returned to the SA Air Force's
  operating budget .
• Relief flights to Iran, Madagascar and Comoros.

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CHAPTER 9MARITIME DEFENCE

• SA Navy had an under-funded risk of Rm157,
  achieved the key objective of 100 expenditure
  of budget.
• Strategic Defence Packages (SDPs) delivery of
  first two Type MEKO A-200 (SAN) Patrol Corvette.
• In preparation for the new force structure
  elements, Navy reduced its geographic footprint
  by scaling down and abolishing units and ships.
• Naval Dockyard Simons Town to ARMSCOR,
  workgroups currently addressing issues of human
  resources, facilities and operating procedures.
• SA Navy was able to meet all of the set
  objectives in respect of the provision of
  prepared and supported forces as required by
  Chief of Joint Operations, well within Force
  Employment hours allocated.

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CHAPTER 10MILITARY HEALTH SERVICE

• SA Military Health Service participation in
  rescue efforts in the Algerian Disaster.
• The hosting of an International Congress of
  Military Medicine for Veterinarians.
• Opening of the first PHIDISA Clinic in January
  2004. The combined efforts of SAMHS and the USA
  regarding the HIV/AIDS retroviral research is
  gaining momentum.
• Aspects of Chemical and Biological Defence were
  presented to elements in the SANDF, personnel
  deployed to DRC and Burundi, various civilian
  institutions as well as at two international
  workshops.
• SA Excellence Model was successfully implemented
  to the lowest levels in SAMHS structure.

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CHAPTER 11DEFENCE INTELLIGENCE

• Contribution to the peace processes in the DRC
  and Burundi.
• Continuous engagement with national and
  operational initiatives ensured the delivery of
  products appropriate to security management in
  South Africa.
• Defence Intelligence continued to support other
  departments, especially in matters related to
  internal stability, security and law enforcement.
  
• The relocation of the Defence Intelligence
  Headquarters building remains a priority.
• The renewal of Defence Intelligences information
  systems is another challenge.
• Staffing of posts with members with the correct
  profile and training, remains one of the primary
  challenges.

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CHAPTER 12JOINT SUPPORT

• Provided excellent logistics, military policing,
  personnel administration, and Command and
  Management Information support to the external
  missions.
• The problem relating to the disposal of
  redundant/ obsolete ammunition is receiving
  urgent attention.
• Challenges are under-funding of Command and
  Management Information systems and services.
• Military Police Agency had to reprioritise its
  outputs/functions and to restrict, and in some
  cases even stop, the less important
  functions/outputs due to budget constraints.
• Facilities maintenance backlog - closing of 4 SAI
  Battalions barracks in March 2004 by the
  Department of Labour as the buildings did not
  comply with the provisions of the Occupational
  Health and Safety Act.

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RESERVE FORCE

• The state of the Reserve Force as a whole is a
  matter of concern, the Conventional Reserve,
  despite the interventions occasioned by Project
  PHOENIX, is still not a combat ready and
  deployable force.
• 3 000 Military Skills Development System trainees
  in 2005, promises to be the start of a limited
  flow of fully-trained personnel to the Reserves
  from 2007.

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RESERVE FORCE (Contd)

• The Army instituted a decentralised training
  programme to enable conventional units to do
  basic and individual training of members who are
  recruited directly into units - great morale
  booster and will deliver six deployable sub-units
  (infantry and engineers) by October 2004.
• As 96 of the Reserves lie within the Army, this
  is where the greatest challenges lie in terms of
  funds to execute the desired renewal and
  transformation.

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SERVICE DELIVERY IMPROVEMENT

• Pol Plan Div - reconfiguration of functions and
  structures in order to ensure efficiency and
  effectiveness.
• Fin Div busy enhancing the Financial Management
  System (FMS) to comply with the Chart of Accounts
  .
• First video-conference facility to external
  operational Headquarters was completed - improved
  the effectiveness of day-to-day activities.
• Army closing of Group HQs and Commandos.
• Air Force - Contract Review Committee was
  constituted to review adjust where necessary,
  all contracts for outsourced services and
  support.
• Anti-Retro Viral Rollout Plan was distributed to
  the units as a pro-active measurement for
  accreditation.

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FINANCIAL STATEMENTS

• General Defence Vote Qualified Audit Report due
  to
• Contingent liabilities leave.
• Physical and intangible asset movement schedules.
• Departmental income.
• Purchases and payables.
• Irregularities and losses.
• Special Defence Account Unqualified Audit
  Report.

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DISCUSSION