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Department of Defence Annual Report 2016/2017

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Department of Defence Annual Report 2016/2017 2016/17 DEPARTMENT OF DEFENCE Annual Report “Together we move South Africa forward” DEPARTMENT OF DEFENCE Annual Report FY2016/17 Vote 19 “Together we move South Africa forward” The Department of Defence Annual Report is available on the DOD website (www.dod.mil.za) Annual Report Enquiries: Head of Communication: Mr S. Dlamini Tel: +27 12 355 6365 Fax: +27 12 355 0118 E-mail: [email protected] RP: 134/2017 ISBN: 978-0-621-45461-1 ii Department of Defence – Annual Report – 2016/17 defence Department: Defence REPUBLIC OF SOUTH AFRICA DEPARTMENT OF DEFENCE ANNUAL REPORT FOR THE FY2016/17 Ms N.N. Mapisa-Nqakula, MP Minister of Defence and Military Veterans Dear Minister THE DEPARTMENT OF DEFENCE ANNUAL REPORT FOR THE FY2016/17 I have the honour of submitting to you, in accordance with the Public Finance Management Act, 1999 (Act No. 1 of 1999), the Department of Defence Annual Report for the reporting period 01 April 2016 to 31 March 2017. (DR S.M. GULUBE) SECRETARY FOR DEFENCE: DIRECTOR-GENERAL Department of Defence – Annual Report – 2016/17 iii defence Department: Defence REPUBLIC OF SOUTH AFRICA STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY To the best of my knowledge and belief, I confirm the following: • All information and amounts disclosed throughout the Annual Report are consistent. • The Annual Report is complete, accurate and is free from any omissions. • The Annual Report has been prepared in accordance with the guidelines on the Annual Report as issued by the National Treasury. • The Annual Financial Statements have been prepared in accordance with the modified cash standard and the relevant frameworks and guidelines issued by the National Treasury. This should however be considered in conjunction with the modified audit opinion by the Auditor-General South Africa. • The Accounting Officer is responsible for the preparation of the Annual Financial Statements and for the judgements made in this information. • The Accounting Officer is responsible for establishing and implementing a system of internal control that has been designed to provide reasonable assurance as to the integrity and reliability of the performance information, the human resources information and the Annual Financial Statements. • The external auditors were engaged to express an independent opinion on the Annual Financial Statements. • In my opinion, the Annual Report fairly reflects the operations, the performance information, the human resources information and the financial affairs of the department for the financial year which ended on 31 March 2017. Yours faithfully (DR S.M. GULUBE) SECRETARY FOR DEFENCE: DIRECTOR-GENERAL iv Department of Defence – Annual Report – 2016/17 TABLE OF CONTENTS PART A: GENERAL INFORMATION .......................................................................................... 1 Department of Defence General Information ..................................................................................................................................................... .. 3 List of Abbreviations/Acronyms ........................................................................................................................................................................... 4 Foreword by the Executive Authority ................................................................................................................................................................... 8 Strategic Statement by the Head of the Department ...................................................................................................................................... 10 Introduction by the Chief of the South African National Defence Force .............................................................................................................. 12 Strategic Overview .............................................................................................................................................................................................. 14 Organisational and Legislative Mandates ........................................................................................................................................................... 15 Organisational Structure ...................................................................................................................................................................................... 17 Information on the Ministry ................................................................................................................................................................................... 18 PART B: PERFORMANCE INFORMATION ............................................................................... 23 Financial Performance Information .................................................................................................................................................................. 25 The Defence Vote ......................................................................................................................................................................................... 25 Capital Investment, Maintenance and Asset Management Plan .................................................................................................................. 28 Non-Financial Performance Information ......................................................................................................................................................... 37 Auditor-General’s Report on Predetermined Objectives ............................................................................................................................... 37 Strategic Outcome-Orientated Outputs ........................................................................................................................................................ 37 Overview of Departmental Performance ...................................................................................................................................................... 41 Performance Information by Programme ...................................................................................................................................................... 49 Appendix A ................................................................................................................................. 87 DOD Mid-Term Performance Against Strategic Indicators and Targets ................................................................................................................ 87 Appendix B ................................................................................................................................ 101 DOD Selected Performance Indicators, Targets and Actual Achievements ........................................................................................................ 101 Department of Defence – Annual Report – 2016/17 v Appendix C ................................................................................................................................. 103 SA Defence Review 2015 (Milestone 1) Implementation within FY2016/17 Resource Allocation: Status Report .............................................. 103 Appendix D ................................................................................................................................ 109 DOD Performance Indicators, Targets and Actual Achievements ......................................................................................................................... 109 PART C: GOVERNANCE ........................................................................................................... 151 Introduction ......................................................................................................................................................................................................... 153 Management Performance Assessment Tool ...................................................................................................................................................... 153 Risk Management ................................................................................................................................................................................................ 156 Corruption and Fraud Prevention ........................................................................................................................................................................ 158 Code of Conduct .................................................................................................................................................................................................. 159 Health, Safety and Environmental Issues ............................................................................................................................................................ 160 Portfolio Committees ............................................................................................................................................................................................ 160 Standing Committee on Public Accounts Resolutions ........................................................................................................................................ 161 Internal Audit and Audit Committees ...................................................................................................................................................................
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