Chapter 7
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Department of Defence Chapter 7
D EPARTMENT OF D EFENCE
A NNUAL R EPORT 2 0 0 2 / 2 0 0 3
Mr M.G.P. Lekota Minister of Defence
Report of the Department of Defence: 1 April 2002 to 31 March 2003.
I have the honour to submit the Annual Report of the Department of Defence.
J.B. MASILELA SECRETARY FOR DEFENCE: DIRECTOR-GENERAL
2002-2003 Annual Report i Chapter 7
TABLE OF CONTENTS
PAGE
PART 1 GENERAL INFORMATION
Foreword by the Honourable M.G.P. Lekota, Minister of Defence ix Foreword by the Honourable N.C. Madlala-Routledge, Deputy Minister of Defence x
Chapter 1 Strategic Overview Annual Review 1 Aim and Scope of the Annual Report 2 Strategic Profile 2 Functions of the Department of Defence 4 Functions of the Defence Secretariat 4 Functions of the South African National Defence Force 4 Department of Defence Shared Values 4
Chapter 2 Defence Objectives Annual Review 6 Department of Defence Programmes 6 Business Strategy 8 Military Strategy 8 Cost of Defence 9 Strategic Issues 9 Losses and Damages 12
PART 2 ORGANISATION AND HUMAN RESOURCE MANAGEMENT
Chapter 3 Organisational Structure and Human Resource Organisational Structure 13 Overview 13 Department of Defence Human Resource Strategy 2010 16 Macro Workforce Composition 17 Personnel Expenditure 18 Performance Awards 25 Job Evaluation 29 HIV/AIDS and Health Promotion Programmes 29 Skills Development 31 Labour Relations 32 Discipline 35
PART 3 PROGRAMME PERFORMANCE
Chapter 4 Defence Administration Annual Review 36 Political Direction 38 Departmental Direction 39 Policy and Planning 39
ii Department of Defence Chapter 7
PAGE Financial Management 41 Departmental Acquisition and Procurement 42 Defence Inspectorate 47 Equal Opportunities 50 Corporate Staff Division 52
Chapter 5 Landward Defence Annual Review 57 Strategic Profile 59 Landward Defence Capabilities 59 Defence Commitments 62 Operations 62 Contribution to Internal and Multinational Exercises 62 Outputs Produced for Department of Defence Clients 64
Chapter 6 Air Defence Annual Review 68 Strategic Profile 71 Support of Government Initiatives 72 Defence Capabilities and Service Delivery Trends 72 Major Joint and Combined Exercises 79 Outputs Produced for Clients 81
Chapter 7 Maritime Defence Annual Review 84 Strategic Profile 86 Policy Development 87 Defence Capabilities and Outputs 88 Maritime Combat Capability 88 Exercises and Operations Conducted 89 Activities Undertaken to Achieve the Objectives of Government 93 Hydrography in the SADC Region 94
Chapter 8 SA Military Health Service Annual Review 95 Strategic Profile 97 Policy Developments 97 Defence Outputs and Capabilities 98 SAMHS Capabilities 100 Participation in Exercises 106
Chapter 9 Defence Intelligence Annual Review 109 Strategic Profile 109 Defence Intelligence Policy 111 Outputs of Defence Intelligence 111
Chapter 10 Joint Support Annual Review 113 Joint Logistic Services 115 Environmental Management 116 Defence Commitments 117 External Operations 117 Other Defence Outputs 117 Defence Capabilities 118
2002-2003 Annual Report iii Chapter 7
PAGE Logistic Management 119 Engineering Support 121 Command and Management Information Service 123 Defence Capabilities and Outputs 123 Service Corps 125 Performance Summary 127 Defence Outputs and Service Delivery Trends 128 Core Objectives 128 Joint Training 128 Human Resource Support Centre 130 Military Policing Agency 131
Chapter 11 Command and Control Strategic Profile 137 Policy Developments 137 Defence Commitments 138 Successes 140
PART IV ANNUAL FINANCIAL STATEMENTS
Chapter 12 Management Report 145
PART V REPORT OF THE AUDITOR GENERAL
Chapter 13 Auditor General’s Report - Defence - Vote 21 153
Chapter 14 Financial Statements - Vote 21 159
Chapter 15 Auditor General’s Report - Special Defence Account 217
Chapter 16 Financial Statements - Special Defence Account 221
LIST OF ABBREVIATIONS 228
iv Department of Defence Chapter 7
LIST OF TABLES
TABLE TITLE PAGE 2.1 Cost of Defence 9 2.2 Summary of Progress of Strategic Issues 10 3.1 Personnel Expenditure by Programme - Period 1 April 2002 to 31 March 2003 16 3.2 Personnel Expenditure by Salary Bands for the Period 1 April 2002 to 31 March 2003 17 3.3 Salaries, Overtime. Home Owners' Allowance and Medical Assistance by Programme for 1 April 2002 17 to 31 March 2003 3.4 Salaries, Overtime, Home Owners Allowance and Medical Assistance by Salary Bands for the Period 18 1 April 2002 to 31 March 2003 3.5 Employment and Vacancies by Programme as at 31 March 2003 18 3.6 Employment and Vacancies by Salary Bands as at 31 March 2003 19 3.7 Employment and Vacancies by Critical Occupation as at 31 March 2003 19 3.8 Annual Turnover Rates by Salary Bands for the Period 1 April 2002 to 31 March 2003 20 3.9 Annual Turnover Rates by Critical Occupation for the Period 1 April 2002 to 31 March 2003 20 3.10 Reasons for Termination of Service in the Department for the Period 1 April 2002 to 31 March 2003 21 3.11 Promotions by Critical Occupation for the Period 1 April 2002 to 31 March 2003 21 3.12 Promotions by Salary Bands for the Period 1 April 2002 to 31 March 2003 22 3.13 Total Number of Employees by Occupational Categories as on 31 March 2003 22 3.14 Total Number of DOD Employees by Occupational Bands as on 31 March 2003 23 3.15 Recruitment by Occupational Bands for the Period 1 April 2002 to 31 March 2003 23 3.16 Promotions by Occupation Bands for the Period 1 April 2002 to 31 March 2003 24 3.17 Terminations by Occupational Bands for the Period 1 April 2002 to 31 March 2003 24 3.18 Performance Rewards by Race and Gender for the Period 1 April 2002 to 31 March 2003 25 3.19 Performance Rewards by Salary Bands fior the Period April 2002 to 31 March 2003 26 3.20 Performance Rewards by Critical Occupations for the Period 1 April 2002 to 31 March 2003 26 3.21 Sick Leave taken by Defence Act Personnel for the Period 1 April 2002 to 31 March 2003 27 3.22 Sick Leave taken by Public Service Act Personnel for the Period 1 April 2002 to 31 March 2003 27 3.23 Disability Leave taken by Public Service Act Personnel for the Period 1 April 2002 to 31 March 2003 28 3.24 Annual Vacation Leave taken by Defence Act Personnel by Salary Bands for the Period 1 April 2002 28 to 31 March 2003 3.25 Annual Vacation Leave taken by Public Service Act Personnel by Salary Bands for the Period 28 1 April 2002 to 31 March 2003 3.26 Job Evaluation Performed in the DOD during FY 2002/03 29 3.27 Steps Taken to Reduce the Risk of Occupational Exposure 29 3.28 Details of Health Promotion and HIV/AIDS Programmes 29 3.29 Summary of Skills Development within the DOD - FY 2002/03 31 3.30 Misconduct and Disciplinary Hearings Finalised, 1 April 2002 to 31 March 2003 32 3.31 Types of Misconduct Addressed at Disciplinary Hearings (PSAP) 33 3.32 Grievances Lodged for the Period 1 April 2002 to 31 March 2003 33 3.33 Disputes Lodged with Councils for the Period 1 April 2002 to 31 March 2003 33 3.34 Individual Grievances Lodged for the Period 1 April 2002 to 31 March 2003 34 3.35 Disputes Lodged with Councils for the Period 1 April 2002 to 31 March 2003 34 3.36 Strike Actions for the Period 1 April 2002 to 31 March 2003 34 3.37 Precautionary Suspensions for the Period 1 April 2002 to 31 March 2003 35
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TABLE TITLE PAGE 3.38 Most Common Offences of DAP for FY 2002/03 35 4.1 Comparison for DOD Baseline Target 52 4.2 Foreign Students on Senior Courses 55 5.1 Exercises (Single, Combined and Multinational) 63 5.2 Outputs Produced for DOD Clients 64 5.3 Utilisation of Consultants 65 6.1 Report on Consultant Appointments Using Appropriated Funds 83 6.2 Analysis of Consultant Appointments Using Appropriated Funds, in terms of Historically 83 Disadvantaged Individuals 7.1 Financial Performance - SA Navy - FY 2002/03 86 8.1 General and SAMHS Orders Promulgated: FY 2002/03 98 8.2 Prescriptions Prescribed by SAMHS: FY 2002/03 98 8.3 Prescriptions Dispensed by SAMHS: FY 2002/03 98 8.4 Admissions to SAMHS Facilities: FY 2002/03 99 8.5 Admissions of SANDF Patients to Non-Military Hospitals: FY 2002/03 99 8.6 Referrals: FY 2002/03 99 8.7 Mortality: FY 2002/03 100 8.8 Potential Clients and Areas of Responsibility: Area Military Health Formation 104 10.1 Land to be Retained by the DOD 115 10.2 Land Claims in Investigation Phase 116 10.3 Support Rendered to the Private Sector by the DOD: FY 2002/03 116 10.4 Logistic Training Presented by the Logistic Agency: FY 2002/03 118 10.5 Total Clients Trained: FY 2002/03 127 11.1 Joint Operations Defence Commitments: External 141 11.2 Joint Operations Defence Commitments: Internal 142 11.3 Multinational Excercises 142
LIST OF FIGURES
FIGURE TITLE PAGE 3.1 Organisational Structure of the Department of Defence 14 3.2 Organisation Structure of the Defence Secretariat 14 3.3 Organisation Structure of the SA National Defence Force 15 4.1 SA National Defence Force Military Attaché Deployments 56 8.1 SAMilitary Health Service Inspection Reports: FY2002/03 101 10.1 Crime Cases Reported to the Military Policing Agency: FY2002/03 133 10.2 Economic Related Offences 134
vi Department of Defence Chapter 7
PART 1: GENERAL INFORMATION
M.G.P. LEKOTA Minister of Defence
N.C. MADLALA-ROUTLEDGE Deputy Minister of Defence
2002-2003 Annual Report vii Chapter 7
viii Department of Defence Chapter 7
FOREWORD BY THE HONOURABLE M.G.P. LEKOTA, MINISTER OF DEFENCE
The Department of Defence (DOD), and particularly the South African National Defence Force (SANDF), continued to grapple with the twin challenges of sustainability and affordability during the year under review. The finalisation and approval of the Human Resource Strategy 2010 and the Military Strategy were two major milestones on the road towards creating a sustainable and affordable defence force. The introduction of a systems approach in the DOD has culminated in the review and improvement on the Strategic Defence Process.
I am pleased to announce that a firm foundation has been laid for the DOD to proceed with the process of acquiring the optimal level of capabilities, technology and the introduction of the new weapon systems into operation.
It is also pleasing to report that during the period under review, the DOD intensified its efforts in promoting security, peace and stability on the African continent in support of the New Partnership for Africa's Development (NEPAD). This was evidenced by the deployment of members of the SANDF to Peace Missions in Burundi, Comoros, the Democratic Republic of the Congo (DRC), Uganda, Ethiopia and Eritrea.
I am proud of the role the DOD has played while participating in the structures of the African Union (AU). We continue to hold the view that conflict resolution should principally be effected by peaceful means. This is because more than often intra-state conflicts spill over into neighbouring states.
Our increased regional commitments have however brought about additional spending which brings pressures to bear on our budget allocation. We continue along the difficult path of aligning our mandate and tasks with our budget, especially but not exclusively with regard to our increased yet necessary external deployments. This is particularly challenging when it comes to operating funds for the maintenance of equipment.
Over and above the deployment of the SANDF in the DRC and Burundi, in line with Cabinet priorities, and guided by our Department of Foreign Affairs, we are serving 101 international agreements with 48 different countries. The DOD, there- fore, is faced, inter-alia, with challenges to ensure that the SANDF is orientated so that it is attuned to meet its obligations. Training, equipment and personnel must be aligned for our core function including peacekeeping operations.
The transformation of the DOD is ongoing. We are now at the stage in our transformation whereby we are on an even keel and out of the rough seas. We can now plan for the future in an organised and systematic way.
Our nation can be truly proud of its national defence force whose professionalism and discipline are recognised the world over. Through the commitment of the men and women in the SANDF and Defence Secretariat, the SANDF will be participating fully in whatever our country call upon us to do in our quest for peace and stability in the spirit of Batho Pele.
2002-2003 Annual Report ix Chapter 7
FOREWORD BY THE HONOURABLE N.C. MADLALA-ROUTLEDGE, DEPUTY MINISTER OF DEFENCE
We have yet again entered another challenging year for the Department of Defence (DOD). We can however look back at the preceding year with pride in that we were able to deal with the many issues that confronted us.
Our forces continue to contribute to keeping peace in the countries of the Great Lakes region. They continue to perform with utmost professionalism and dedication. This makes us proud of the role our country is playing in the efforts to recon- cile the various conflicting parties in the Democratic Republic of the Congo (DRC) and in Burundi. Our troops were able to provide excellent protection to the returning politicians in Burundi and one of these politicians, Domitien Nbadayizeye, was installed as the interim president of Burundi.
South Africa was proud to host the 40th Anniversary Celebration of the Organisation of African Unity, the predecessor of the African Union (AU). This important event on the continent's calendar was preceded by the launch of the AU in Durban, in July 2002. These events illustrate the importance our country attaches to the affairs of Africa. It is with pride that we also note the role that our soldiers played in contributing to the success of these festivities.
Closer to home, our forces have been involved in assisting communities in various ways. The South African Military Health Services has assisted rural communities in the fight against malaria and cholera, while the SA Army and other services continued to support the South African Police Service in the fight against crime. The Chief Directorate of Equal Opportunities was also called upon to contribute to the Inter-Congolese Dialogue. The Directorate participated in the first discussions in March 2003 when the talks were held in South Africa, and again in May 2003, I led their delegation to the DRC for the SA-DRC peace dialogue. In December 2003 the Directorate was invited by the Namibian Defence Force to assist in developing their gender focal point. We can look forward to the finalisation of the Shared Values Policy that the Directorate has spearheaded.
The year has also seen the growth of the Siyandiza Aviation Awareness Programme of the SA Air Force. Siyandiza was clearly visible at the Africa Aerospace and Defence Exhibition 2002. The Young Falcons Programme has been established as an academic programme that caters for learners in Grades 6 - 12. We expect that the improved programme will help address the issue of representivity in the SA Air Force and develop a sense of Air Force identity.
The issue of military pensions, for former non-statutory force members, has been a contentious issue that needed to be finalised. Thankfully the long wait is over. The Department of Defence was involved in efforts to have the Special Pensions Act of 1996 amended. We look forward in the coming year to the completion of the migration of the Service Corps into a national agency that will benefit not only present but also former members of the SANDF. The fight against HIV/AIDS was intensified during the year. The Masibambisane Beyond Awareness Campaign was able to reach the major- ity of members of the SANDF. Thousands of educators and health workers were trained under the Masibambisane cam- paign and a national co-ordinator was appointed. Plans are afoot to evaluate MASIBAMBISANE and to plan for the 'beyond the awareness' phase.
We look forward to the challenges of this year and thank all our personnel in the DOD for their commitment and dedication. One philosopher once said that it is only when you jump that you would fly. We in the DOD will keep on jumping higher and higher so that we may reach the sky of achieving our objectives.
x Department of Defence Chapter 1
STRATEGIC PROFILE
ANNUAL REVIEW
This Department of Defence (DOD) deployed in the Democratic Annual Report covers the period for Republic of the Congo (DRC), the Financial Year (FY) 2002/03. An Burundi, Ethiopia and Eritrea. attempt, in this Annual Report, has been made to adhere as closely as The introduction of a systems possible to the format required by approach in the DOD has culminat- National Treasury. ed in the review and improvement on the strategic defence processes. The report, however, was written to As the strategic defence process is match the required format without entrenched it will lead to ensuring compromising the integrity of the the development of a sustainable information. and affordable Defence Force.
The South African National Defence There have been losses of skills Force (SANDF) continued to grap- due to natural attrition as well as ple with the chal- employer initi- lenge of sustain- ated retrench- ability and afford- ment packages ability during the INTRODUCTION within the year. The DOD. approval of the Human Resources (HR) Strategy Measures to offer more competitive 2010 and the Military Strategy by packages to people with key skills the Minister of Defence were two have been put in place. Losses major milestones on the road due to natural causes remained towards creating a sustainable and unacceptably high during the year affordable Defence Force. and the launching of Project MASIBAMBISANE by the SA The participation by the SANDF in Military Health Service (SAMHS) peace support operations increased was but one measure introduced to during the year and members were address this problem.
2002-2003 Annual Report 1 Chapter 1
AIM Administration Cluster. The DOD's term human relations and training plans must therefore not only make plans. The strategic direction for The aim of the DOD Annual provision to meet its own objectives, the formulation of these plans is Report for FY 2002/03 is to but also to contribute towards the derived from the 1998 Defence give account regarding the achievement of the objectives of the Review. performance of the DOD government and the clusters to according to the approved which it belongs. The force design and defence capa- departmental business plan bilities are designed primarily to for the period 1 April 2002 to Cabinet and cluster priorities are protect the sovereignty of the 31 March 2003. finalised in January of the year in Republic of South Africa (RSA) and which the planned activities and to deter aggression. In time of SCOPE OF THE ANNUAL expenditure occur. In order to peace it is essential that the REPORT ensure that the objectives of Defence Force's capabilities be Government are achieved, the utilised to the country's best advan- The DOD Annual Report is present- DOD's strategic plans prepared dur- tage. The DOD Strategic Business ed in five parts. Part One describes ing the previous year are re- Plan therefore contains the objec- the strategic profile of the tives and outputs Department. Part Two required to fulfil the focuses on the Human DOD's mandate as Resources of the DOD. STRATEGIC FOCUS well as the priorities Part Three of the report is set for Defence in the based on the programmes Government's medi- or sub-programmes of the um-term strategic and DOD and the performance against planned and reprioritised when the expenditure framework and the plan of the Services and Divisions. Cabinet and cluster priorities are cluster priorities approved by the Part Four deals with the DOD received. The intrinsic flexibility in Cabinet annually. Management Report from the the DOD's strategic planning STRATEGIC FOCUS Department's Accounting Officer's process thus ensures that the desk. Part Five covers the Report DOD's activities at all levels are During the past year the DOD was of the Auditor General on the always fully aligned with, and in guided by the approach that over Financial Statements of Defence - support of the objectives of the next decade the DOD will focus Vote 21. Government. on acquiring the optimal level of competencies, technology and MANDATE OF THE DOD STRATEGIC PROFILE organisational structure as allowed by the Medium-term Expenditure The Constitution, the Defence Act, OVERVIEW Framework (MTEF). Over the the White Paper on Defence and medium term, the strategic focus of the Defence Review mandate the The DOD's vision, mission and aim, the DOD will be DOD. These laws and policies both which are derived from the mandate to create an affordable and direct and guide the execution of contained in the Constitution and sustainable force structure; the defence functions of the DOD the Defence Review, are long term to introduce the new weapon which consist of the Defence Secre- in nature and form the basis for the systems into operation, bear- tariat and the SANDF. All depart- SANDF force design, required to ing in mind the challenges mental policies and plans are drawn produce the SANDF's capabilities posed by its cost and com- up and executed in accordance with needed to execute the SANDF's plexity, and these and other relevant laws, poli- mandate. The extremely high cost to meet the DOD's obliga- cies and executive direction. of modern weapon systems, the tions. length of time required to introduce ALIGNMENT WITH the systems into service and the The short-term focus of the DOD CABINET PRIORITIES relatively long lifespans of modern will be to weapon systems require the DOD prepare and employ defence The DOD is a member of three to make long-term (thirty year) capi- capabilities to meet opera- Government clusters, namely the tal acquisition plans. Similarly, the tions and commitments Justice, Crime Prevention and level of skills required by the per- ordered by the Government; Security Cluster, the International sonnel operating, supporting and and to Relations, Peace and Stability maintaining the weapon systems continue with the restructur- Cluster and the Governance and requires the development of long- ing of the DOD.
2 Department of Defence Chapter 1
Painting by Tim Johnson 2002-2003 Annual Report 3 Chapter 1
VISION particular those necessary or leadership. expedient to enhance civil Command and control struc- The DOD ensures, in accordance control by tures that uphold civil over- with the Constitution, effective Parliament over the DOD; sight, yet allow the DOD to defence for a democratic South parliamentary committees execute its primary functions Africa, thereby enhancing national, having oversight over the (core operations processes) regional and global security through DOD; and in the most effective manner. balanced, modern, affordable and the Minister of Defence Systems and procedures technologically advanced defence over the DOD. that are in line with the capabilities. Providing the SANDF with requirements of effective comprehensive instructions public service management MISSION regarding the exercise of and transformation, keeping any powers delegated or the in mind the particular nature To provide, manage, prepare and performance of any duty of the military institution. employ defence capabilities com- assigned to members by the mensurate with the needs of South Secretary for Defence as FUNCTIONS OF THE SANDF Africa as regulated by the Consti- Head of Department and tution, national legislation, and par- Accounting Officer of the The SANDF is responsible for liamentary and executive direction. DOD. defending and protecting the sover- Monitoring compliance with eignty, territory and people of South AIM policies and directions Africa in order to secure an environ- issued by the Minister of ment of peace and prosperity for all. The aim of the DOD is to defend Defence to the SANDF and and protect the RSA, its territorial reporting thereon to the The Constitution, therefore, pro- integrity and its people in accor- Minister. vides that the SANDF may be dance with the Constitution and the Ensuring discipline of, deployed principles of international law regu- administrative control over for service in the defence of lating the use of force. and management of employ- the Republic; ees, including effective utili- for the protection of its sov- FUNCTIONS OF THE DOD sation and training. ereignty and territorial Instituting departmental integrity; The two primary functional investigations as may be in compliance with the inter- entities within the DOD are provided for in law. national obligations of the that of the Defence Republic to international Secretariat and the SANDF. The functions of the Defence bodies and other states; These respective entities ful- Secretariat, as stipulated in the for the preservation of life, fil unique and specific func- Defence Act, give clear indication health or property; tions within the DOD. that the Defence Secretariat was for the provision or mainte- instituted in order to ensure sound nance of essential services; FUNCTIONS OF THE DEFENCE and democratic civil-military rela- for the upholding of law and SECRETARIAT tions in the country. It was order in the Republic in co- designed to provide administrative operation with the South In terms of the Defence Act, 2002 control and support to the SANDF African Police Service (Act No 42 of 2002), the Defence and to serve as a reliable channel (SAPS), under circum- Secretariat is responsible for the fol- for instructions from Parliament and stances set out in law, where lowing: the Minister of Defence to the the SAPS is unable to main- Supporting the Secretary for SANDF. tain law and order on its Defence in his/her capacity own; and as Head of Department, Since 1998, certain transformation for the support of any Accounting Officer for the objectives with regard to the DOD Department of State for the department and Principal were managed: purpose of socio-economic Departmental Adviser to the Entrenchment of the princi- upliftment. Minister of Defence on ple of civil oversight through defence policy matters. designing and maintaining DOD SHARED VALUES Performing any function effective co-operation and entrusted by the Minister to mutual support between civil In 1994 the DOD was one of the the Secretary for Defence, in and military structures and leading state departments to initiate
4 Department of Defence Chapter 1
change by the integration of the for- Integrity. Like all military forces throughout mer non-statutory forces and the Leadership. the world, the SANDF also uses statutory forces into an integrated Accountability. numerous symbols and practices to SA National Defence Force. The Loyalty. bind the members of the organisa- non-statutory forces consisted of Patriotism. tion to its vision, mission and objec- former uMkhonto we Sizwe (MK) tives. As the process of transfor- and Azanian Peoples’ Liberation The DOD bases its shared values mation of South Africa continues, Army (APLA) and the statutory on three pillars, namely: new rank insignia, dress regula- forces were the former South Output-driven values that are tions, unit badges, etc are being African Defence Force (SADF) and aligned with strategic man- developed to further enhance the Transkei, Bophuthatswana, Venda agement principles. cohesion essential in a military and Ciskei (TBVC) defence forces. Civil-military relations values organisation which must be pre- This integration process brought that are aligned with interna- pared to fight the nation's wars if together diverse individuals and tional imperatives conducive required to do so. groups with equally diverse value to good governance execut- systems. Out of this arose the ed within the international CONCLUSION necessity to develop an appropriate rules regulating the use of organisational culture, with empha- force. The principles of transparency and sis on a shared value system that is The internalisation of a Code accountability take high priority in line with the national values as of Conduct into the daily within the DOD and its intention is defined in the Constitution, as well activities of all DOD officials to reflect responsibly to the as the strategic management princi- and soldiers. Government and the people of ples of the Department. South Africa, the sound foundation During 2000, Codes of Conduct upon which the DOD is based. For After comprehensive research, the were signed by all DOD members - this reason the DOD takes pride in DOD approved seven core values civilian and military. These codes its process of continued transforma- deemed essential to ensure organi- constitute a self-regulating mecha- tion and renewal which has become sational success. These are: nism and, if adhered to, will have a synonymous with this Department. Professionalism. significantly positive effect on the Human Dignity. conduct of DOD members.
2002-2003 Annual Report 5 Chapter 2
DEFENCE OBJECTIVES
ANNUAL REVIEW
The Department of Defence (DOD) and Government policy. identified seven strategic objectives Assuring sustainability, con- during its own transformation tinuous improvement of out- process. These relevant objectives put quality and reducing the form the basis of the DOD's cost of DOD processes as core (long-term) objectives well as the accounting there- reflected in the nine pro- of. grammes and the organisa- Assuring the continuous tional structure of the DOD; quality improvement of peo- key duties and responsibili- ple in the DOD. ties of the Department's Assuring the availability of leaders quality com- and man- mand and man- agers that agement infor- are con- INTRODUCTION mation in the tained in DOD. their per- Assuring formance agreements; and the continuous quality operational and service improvement of South delivery plans and the per- African National Defence formance agreements of the Force (SANDF) equipment officers and employees and facilities. responsible for their execu- tion, performance manage- DOD PROGRAMMES ment and service delivery improvement (SDI). The DOD is a contingency based organisation, therefore its service STRATEGIC OBJECTIVES delivery is only visible when and where the SANDF actually deploys The DOD’s strategic objectives, to counter a specific contingency. which guide the DOD, are as The core objectives of the DOD are follows: therefore directed at Executing of defence com- the preparation of the mitments as ordered. SANDF to enable it to Providing contingency ready respond to contingencies; and cost-effective defence command and control of capabilities as specified by SANDF forces during approved policy. deployments; and Administrating the DOD with- the administration and sup- in the prescripts of the law port of the DOD.
6 Department of Defence Chapter 2
2002-2003 Annual Report 7 Chapter 2
The DOD has developed nine long- administered whilst in bar- the SANDF. These objectives are term objectives that are consistent racks and when deployed on not prioritised, and cover the full with the defence programmes. missions of any nature. range of military and other ordered These defence programmes are: Aligning defence policy and commitments. The objectives are Defence Administration. plans with Government's as follows: Landward Defence. policies and priorities con- Defence against Air Defence. cerning governance and Aggression. To provide a Maritime Defence. administration. self-defence capability Military Health. Constantly improving the according to International Defence Intelligence. DOD's core business system Law against any threat of Joint Support. and accountability. aggression that endangers Command and Control. Constantly improving the the stability of South Africa. Special Defence Account. quality of DOD personnel, Promoting Security. To equipment, technology and provide for the internal and facilities. external deployment of mili- DOD CORPORATE tary forces to enhance secu- STRATEGY The Business Strategy therefore rity. facilitates the execution of the Supporting the People of In order to execute the DOD's mis- Military Strategy and its sub-strate- South Africa. To provide sion, as derived from its mandate, a gies, such as the force employment support to the general popu- departmental corporate strategy, strategy, the force preparation strat- lation or other Government based on the Defence Review and egy and the force support strategy. Departments of South Africa, White Paper on Defence, is being The various sub-strategies of the in operations other than war, finalised. This strategy will be pub- Business Strategy will be promul- by using collateral utilities. lished as a separate document. gated and implemented during the FY 2003/04. MILITARY STRATEGIC The DOD's corporate strategy con- CONCEPTS sists of the Business Strategy and MILITARY STRATEGY the Military Strategy. The business The military strategic objectives strategy informs about the way in The DOD developed a Military guide the SANDF when using a which the DOD conducts its busi- Strategy for the RSA, which is mission-based approach to achieve ness as a Department of State derived from the National Security the set objectives of the DOD. This whilst the Military Strategy indicates Strategy, which in turn is formulated approach uses wartime and peace- the way in which the DOD struc- by Government based on the time missions to direct the peace- tures, prepares for and executes its Constitution and the objectives of time strategy for force preparation, mission. the Government. The reintegration and to guide joint force preparation of South Africa into the political and force employment during inci- BUSINESS STRATEGY world and in particular African soci- dences of conflict. The mission- ety, since 1994, has resulted in far- based approach is based on the fol- The Business Strategy provides the reaching changes to national secu- lowing strategic concepts: manner in which, as a state depart- rity and therefore defence strategy. Provision of mission essen- ment, the DOD plans to conduct its This process occurred against the tial training. internal business in the most effec- backdrop of ongoing human and Capability of establishing a tive, efficient and economic manner cultural transformation of society mission-trained force. possible. It therefore aims to facili- and the Government's drive to Selective engagement, tate defence business by ensuring improve the way in which it does its where possible. that the existing supporting strate- business. The DOD is therefore Strategic positioning. gies, plans and change initiatives, engaged in a process of reviewing which facilitate the execution of the and reformulating its business and MISSIONS military strategy, are integrated and military strategy in order to ensure aligned. full alignment with the new realities. Missions are combinations of tasks that are required to achieve military The DOD's Business Strategy has MILITARY STRATEGIC strategic objectives. The missions the following objectives: OBJECTIVES have been prioritised in terms of Ensuring that the military risk, which in this context is defined forces are fully supported, The military strategic objectives are as "an exposure to danger owing to equipped, maintained and the ends that are to be achieved by the impact of the onslaught on the
8 Department of Defence Chapter 2
security of South Africa, and the Repelling of non-convention- COST OF DEFENCE probability of the onslaught being al onslaught. encountered by South Africa". Presidential tasks. The Defence Vote 22 for Regional disaster relief and FY 2002/03 was expended per The missions have been grouped in humanitarian assistance. main programme as indicated in three priority classes and describe Show of force. Table 2.1. the missions that are of importance Protection of foreign assets. to the DOD at present, and are sub- Regional peace enforce- STRATEGIC ISSUES ject to constant review. The priority ment. classes reflect the priorities for force Search-and-rescue. During the year under review the preparation. The prioritised mis- Regional search-and-rescue. DOD focussed on twelve strategic sions envisaged for the next ten Repelling of an unconven- issues. The original twelve strate- years are as follows: tional onslaught. gic issues (now eleven since one got resolved during the said period) Priority 1 Priority 3 were derived from the six mission Co-operation with the South Defence against a biological success factors, identified as: African Police Service and/or chemical onslaught. National Consensus on (SAPS). International peacekeeping. Defence. Sound and effec- Borderline control. Pre-emptive operations. tive civil-military relations Support military diplomacy. International humanitarian regulate the DOD. Defence Special operations. intervention. policy must therefore be Disaster relief and humani- International peace making. aligned with national policy. tarian assistance. Regional peace observation. Excellent Strategic Defence against an informa- Repelling of conventional Direction. The DOD must tion onslaught. onslaught. establish a Defence Force Maritime support. International peace enforce- with military capabilities that VIP transport. ment. will meet the needs of the Regional peacekeeping. International peace building. Government of the Republic Support to Government International disaster relief of South Africa (RSA). The departments. and humanitarian SANDF is required by Gov- Regional peace making. assistance. ernment to participate in International search-and- peace missions on the Afri- Priority 2 rescue. can continent, as well as to Regional peace building. International observation. undertake borderline control, Regional humanitarian inter- including the maritime coast- vention. line. A cost-effective force
Table 2.1. Cost of Defence (Rm)
Serial No Main Programme Expenditure (Rm) 1 Defence Administration 592 574 2 Landward Defence 3 504 882 3 Air Defence 2 046 950 4 Maritime Defence 969 848 5 Military Health 1 213 274 6 Defence Intelligence 132 731 7 Joint Support 1 974 801 8 Command and Control 588 303 9 Special Defence Account 7 786 232 10 Authorised Losses 26 206 11 Total 18 835 801
2002-2003 Annual Report 9 Chapter 2
structure is required as regu- nent is high, and dispropor- resultant deterioration of win- lated by the Public Finance tional relative to expenditure ning-edge capabilities is Management Act (PFMA) on operational and capital therefore foreseen. The loss 1999, Act No 29 of 1999. costs. This impacts on the of critical skills and know- Excellent Resource status of the Reserve Force ledge in vital operational Management. The manage- component and the upkeep capabilities is impacting neg- ment of human and material of DOD facilities. atively on the operational resources must result in Effective Combat Forces preparedness of the DOD cost-effectiveness within the and Support Forces. and must be addressed. DOD in the performance of Defence capabilities must Professionalism in the con- its mission. Expenditure in consist of effective combat- duct of operations. the DOD is regulated by ants supported by appropri- Implementation of the trans- Treasury regulations and ate materiél. The full spec- formation process. related circulars. The trum of defence technology expenditure on the full-time cannot be sustained within The progress made on the issues human resources compo- the defence allocation. A during the year is captured in the table below.
Table 2.2. Summary of Progress of Strategic Issues
Serial No Strategic Issue Responsibility Probable Target Dates 1 Defence Act. Implementation of the Defence Chief of Policy The Act was promulgated. The Act: The General Regulations must be aligned and Planning implementation of the Defence Act with the Act. and Regulations becomes a priority.
2 Defence Capabilities. There remains a mis- Plenary The Military Strategy Appreciation match between defence funding and the pres- Defence Staff and the Transitional Strategy, which ent force design. The latter is neither afford- Council forms the basis of the Military able nor sustainable and is not harmonised co-ordinated by Strategy, have been defined. The with the requirements of the strategic environ- Chief of Military Strategy has been formulat- ment and ordered defence commitments. Corporate Staff ed and will be presented to the President during 2003.
3 Transformation. Lack of resources, dynamic Chief of Policy In progress by means of the activi- decision-making and non-realisation of pre- and Planning ties executed in the DOD Planning conditions (e.g. Employer Initiated Retrench- Forum. ment (EIR), approved establishment tables, Command Management Information (CMI) support, General Support Bases (GSBs), organisation culture & Leadership, Command and Management Principles (LCAMPS), are hampering the implementation of transforma- tion.
4 Alignment of Core and Support Processes Chief of Policy The alignment of all operational and with PFMA Imperatives. The DOD's core and Planning support processes are being evalu- management processes (Strategic ated through a sub-task team aim- Development Process, Force Employment ing to identify and neutralise dupli- Process and Force Preparation Process) in cation of defence activities. conjunction with support management processes (Logistics, Human Resources, Finance, Defence Intelligence, Command Management Information, Corporate Communication, etc) are not fully developed, integrated and institutionalised to be functional- ly aligned, harmonised and implemented according to PFMA imperatives.
10 Department of Defence Chapter 2
Serial No Strategic Issue Responsibility Probable Target Dates 5 Reserves. The availability of the Reserves as Chief of Although many activities are in a contingent-ready force component cannot be Corporate Staff progress, the complexity, nature guaranteed. (Director and practical realities of the Defence Reserve Force have not resulted in Reserves) the definition of target dates as determined by the Reserve Force Strategy. An initiative through the Reserve Force Council is in progress to formulate a comprehen- sive study on the purpose of the Reserve Force.
6 DOD Infrastructure. The deteriorating condi- Chief of Joint A comprehensive database has tion of DOD facilities is adversely affecting the Support been compiled. The strategic issue DOD's financial resources, thereby threatening is to be completed at the end of operational readiness, morale and working 2003 as soon as the Military conditions. Strategy has been approved and specific force structure guidelines have been determined.
7 Low Morale and Loss of Expertise. Chief of Policy The Task Team has presented the Inadequate remuneration, allowances, benefits and Planning implementation strategy. Chiefs of and the continued pressure for the scaling Services and Divisions are execut- down of operational capabilities result in low ing the approved objectives. morale amongst members and a serious loss Feedback to the Plenary Defence of operational and functional expertise. Staff Council every six months.
8 White Paper and Defence Review. Certain Chief of Policy This issue is incorporated with the important aspects of policy in the White Paper and Planning Defence Capability strategic issue. on Defence and the Defence Review are not See serial 2. The intent to forward aligned with developments in and the require- probable changes to the White ments of the strategic environment. Paper on Defence is withheld until a clear indication is obtained on the effective and economical manage- ment of defence resources.
9 Collective Regional Security Management. Chief of Policy This issue depends on the outputs The apparent absence of a co-ordinated DOD and Planning generated through the Southern policy and strategy for collective security man- African Development Community agement with regional counterparts contributes (Interstate Defence and Security to conflicting approaches detrimental to the Committee structures) and other security interests of South Africa. sub-regional institutions. There is good progress with the restructuring of the Organ.
10 Health Status (HIV/AIDS). The number of Surgeon An awareness programme is in SANDF members unable to comply with the General progress (MASIBAMBISANE). prescribed health standards is increasing rap- idly, thus reducing the operational capability and draining the resources of the SANDF.
2002-2003 Annual Report 11 Chapter 2
Serial No Strategic Issue Responsibility Probable Target Dates 11 Crime in the DOD. The current strategy for the Chief of Joint The strategy has been approved by management of criminality should be reviewed Support the Plenary Defence Staff Council. and then be implemented to the lowest possible (DMPA) The implementation is in progress level. and feedback to be presented to Plenary Defence Staff Council every six months. Progress in the neu- tralisation of high levels of crime is slow and it is foreseen that through a total approach of resources man- agement results will become evi- dent.
12 The DOD Shared Value System. The estab- Chief Director The Code of Conduct parades and lishment of the DOD Shared Value System is a Equal signing of individual certificates priority. Opportunities were completed and awareness programmes are conducted through the Education, Training and Development system.
DISCONTINUED NEW/PROPOSED LOSSES AND SERVICES SERVICES DAMAGES
None. None. See financial statements for detail.
12 Department of Defence Chapter 3
PART 2: ORGANISATION AND HUMAN RESOURCE MANAGEMENT
ORGANISATIONAL STRUCTURE AND HUMAN RESOURCES
ORGANISATIONAL STRUCTURE
OVERVIEW
The Department of Defence (DOD) is a large, complex organisation that is constantly reviewing its organisational structure in order to ensure alignment between the Department's strategic objectives, the budget allocation, ordered commitments and likely missions. The Ministry of Defence consists of the Minister of Defence and the Deputy Minister of Defence. The DOD consists of the Defence Secretariat and the South African National Defence Force (SANDF). The organisational structure for the DOD as at the end of FY 2002/03 is shown in the fol- lowing figures.
2002-2003 Annual Report 13 Chapter 3
Figure 3.1. Organisational Structure of the Department of Defence
Minister of Defence
Deputy Minister of Defence
Ministry of Defence
Defence Secretariat South African National Defence Force
Secretary for Defence Chief SANDF
Policy and Finance Corporate Staff SA Air SA Military Planning Division Division Force Health Service Division
Equal Opportunities Defence Joint Support SA Navy Defence Chief Directorate Inspectorate Division Intelligence
Departmental Acquisition SA Army Joint Operations and Procurement Division Division
Figure 3.2. Organisational Structure of the Defence Secretariat
Defence Secretariat
Secretary for Defence
Policy and Planning Equal Opportunities Defence Division Chief Directorate Inspectorate
Finance Departmental Acquisition Division and Procurement Division
14 Department of Defence Chapter 3
Figure 3.3. Organisational Structure of the South Atrican National Defence Force
South African National Defence Force
Chief of the National Defence Force
Corporate Staff SA Army SA Navy SA Military Division Health Service
Joint Support SA Air Joint Operations Defence Division Force Division Intelligence
Strategy and Foreign Military Legal Permanent Joint Planning Office Relations Services Headquarters Division (HQ)
Special Forces MOD Chaplain Reserve Force Brigade General’s Office Division
Defence Corporate Regional Special Communication Joint Task Forces Force HQs Regiments
Maintenance Unit
2002-2003 Annual Report 15 Chapter 3
DOD HUMAN RESOURCE identified in HR Strategy 2010. If namely the Military Skills Develop- STRATEGY 2010 not addressed, these problems will ment System (MSDS). The aim of lead to a deterioration of the DOD's the MSDS is to grant young people, The macro Human Resource (HR) HR composition and the inability of mostly school leavers, the opportu- strategic direction for the DOD to be the DOD to execute its mission. nity to do voluntary military service followed until the year 2010 is spelt The strategy is configured in terms for a two-year term. Upon comple- out in HR Strategy 2010. This strat- of a metaphorical "cap stand" with tion of the term of service, the egy addresses the high-level HR "hooks" that make provision for the SANDF will select a number of management concept to align the development of departmental and applicants for continued service in HR composition of the DOD to ef- administrative, operational and the Regular Force, whilst the major- fectively and efficiently execute the technical (AOT) policies, as well as ity of the intake will feed the DOD's mission. The implementa- sub-strategies. The focus is on the Reserves. During January 2003 the tion of HR Strategy 2010 has been predominant systems, processes first intake of 1 350 MSDS mem- identified as one of the Minister of and issues which drive, or signifi- bers reported for training. Defence's priorities to commence cantly influence, the "provide hu- during the FY 2003/04. man resources process", from a Emanating from HR Strategy 2010 strategic perspective. are the following nine "desired end During the last quarter of states", which identify the results FY 2002/03, HR Strategy 2010 was Given a limited budget, demanding that should be obtained by imple- workshopped with the Portfolio operating requirements, and menting the strategy: Committee on Defence and the increasing external deployment A rejuvenated SANDF HR Joint Standing Committee on De- expectations, the principles of composition. fence in Parliament. The Minister affordability and flexibility in force An affordable DOD HR com- of Defence also approved the strat- levels will continue to be pursued position. egy for implementation in the DOD. by the DOD. The DOD therefore A practised one-force model. requires a new service system, A new way in which mem- The strategy is based on a practical which is based upon accruing opti- bers serve. analysis of the current DOD HR mal cost-benefit advantages for the An optimally representative composition. The DOD's HR reali- organisation. During FY 2002/03 Department of Defence. ties require strategic direction to the DOD developed the first career Excellent HR service deliv- solve the main HR problem areas stage of the new service system, ery.
Table 3.1. Personnel Expenditure by Programme - Period 1 April 2002 to 31 March 2003
Programme Total Total Personnel Administrative Professional Personnel Average Expendi- Expenditure Expenditure and Special Cost as a Personnel Cost ture Services % of Total per Employee R’000 R’000 R’000 R’000 Expenditure R’000 Administration 592 574 455 032 72 069 16 786 77% 113 Landward Defence 3 504 882 2 507 306 133 650 459 175 72% 48 Air Defence 2 046 950 1 021 086 85 082 691 809 50% 88 Maritime Defence 969 848 620 383 49 055 138 955 64% 85 Military Health Support 1 213 274 774 580 42 334 127 534 64% 97 Defence Intelligence 132 731 104 374 7 912 11 403 79% 138 Joint Support 1 974 801 941 367 90 336 603 645 48% 71 Command and Control 588 303 217 908 132 354 116 499 37% 152 Special Defence 7 786 232 - - - - - Account Special Functions: 26 206 - - - - - Authorised Losses Total 18 835 801 6 642 036 612 792 2 165 806 35% 67
16 Department of Defence Chapter 3
Harmony between the uni- the implementation of the stated Personnel (DAP) (members serving formed and civilian compo- plan. The success of this strategy in the Long-term Service, Medium nents. is dependent on the support of all term Service, Short-term Service Retention of operational and commanders and managers at all and Auxiliary Service) decreased by functional expertise. levels. A detailed HR Strategic 1 per cent from 59 523 as at Labour peace. Implementation Plan will guide the 1 April 2002 to 58 890 as at fulfilment of this strategy. Various 31 March 2003. Once the DOD has realised these efforts are underway to communi- The Public Service Act Personnel nine desired end states, the HR cate the strategy throughout the (PSAP) component decreased by strategic issues would have been DOD. 3 per cent from 16 622 as at addressed, and HR Strategy 2010's 1 April 2002 to 16 016 as at aim achieved. MACRO-WORKFORCE 31 March 2003. This reduction was COMPOSITION achieved by making use of selective The methods of achieving the stat- appointments, natural attrition and ed goals require significant effort, During FY 2002/03, the DOD's the employer initiated package commitment and the will to execute Regular Force, the Defence Act (EIP). Owing to the intake of MSD
Table 3.2. Personnel Expenditure by Salary Bands for the Period 1 April 2002 to 31 March 2003
Salary Band Personnel % of total Average Personnel Strength Expenditure Personnel Cost Cost per Employee R’000 Lower Skilled (Levels 1-2) 515 954 7.77% 33 676 9 215 Skilled (Levels 3-5) 2 028 395 30.54% 44 780 33 500 Highly skilled production (Levels 6-8) 2 508 313 37.76% 89 292 24 373 Highly Skilled Supervision (Levels 9-12) 1 441 247 21.70% 148 506 7 530 Professionals (Levels 13-16) 27 808 0.42% 695 203 37 SMS (Levels 13-16) 120 319 1.81% 432 803 251 Total 6 642 036 100.00% 67 273 74 906
Table 3.3. Salaries, Overtime, Home Owners' Allowance and Medical Assistance by Programme for 1 April 2002 to 31 March 2003
Salaries Overtime Home Owners' Medical Assistance Allowance Programme Amount % of Amount % of Amount % of Amount % of Person- Person- Person- Person- R’000 nel Cost R’000 nel Cost R’000 nel Cost R’000 nel Cost Administration 340 069 74.74% 123 0.03% 9 282 2.04% 5 313 1.17% Landward Defence 1 908 548 76.12% - 0.00% 36 552 1.46% 10 780 0.43% Air Defence 736 757 72.15% - 0.00% 17 618 1.73% 3 688 0.36% Maritime Defence 444 559 71.66% 2 201 0.35% 15 068 2.43% 12 252 1.97% Military Health Support 560 815 72.40% 43 620 5.63% 13 478 1.74% 5 247 0.68% Defence Intelligence 77 607 74.35% 3 387 3.25% 2 150 2.06% 602 0.58% Joint Support 716 137 76.34% - 0.00% 20 149 2.15% 9 911 1.06% Command and Control 121 485 54.94% 190 0.09% 2 541116 1.15% 307 0.14% Total 4 905 977 73.86% 49 521 0.75% 839 1.76% 48 103 0.72%
*The Naval Dockyard employs a high number of PSAP, proportionally to DAP.
2002-2003 Annual Report 17 Chapter 3
Table 3.4. Salaries, Overtime, Home Owners' Allowance and Medical Assistance by Salary Bands for the Period 1 April 2002 to 31 March 2003
Salaries Overtime Home Owners' Medical Assistance Allowance Amount % of Amount % of Amount % of Amount % of Programme Person- Person- Person- Person- R’000 nel Cost R’000 nel Cost R’000 nel Cost R’000 nel Cost Lower Skilled 381 097 5.74% 3 536 0.05% 7 284 0.11% 15 646 0.24% (Levels 1-2) Skilled (Levels 3-5) 1 498 224 22.56% 1 771 0.03% 28 784 0.43% 8 357 0.13% Highly Skilled 1 852 704 27.89% 6 129 0.09% 55 372 0.83% 20 116 0.30% Production (Levels 6-8) Highly Skilled 1 064 541 16.02% 33 322 0.50% 25 332 0.38% 3 583 0.05% Supervision (Levels 9-12) Professionals 20 540 0.31% 3 659 0.06% 9 0.00% 136 0.00% (Levels 13-16) SMS (Levels 13-16) 88 871 1.34% 1 104 0.02% 57 0.00% 267 0.00% Total 4 905 977 73.86% 49 521 0.75% 116 839 1.76% 48 104 0.72%
members, it is envisaged that the PERSONNEL all personnel expenditure has de- projected Defence Review guideline EXPENDITURE creased from 39 per cent to 35 per of a full-time component (DAP and cent of the DOD's total expenditure. PSAP) strength of 70 000 would Despite an average salary increase The expenditure of 35 per cent has therefore theoretically be achieved of 7 per cent in FY 2001/02 and been calculated with the inclusion of by the end of 2004. 9 per cent in FY 2002/03, the over- the Strategic Defence Packages.
Table 3.5. Employment and Vacancies by Programme as at 31 March 2003
Programme Establishment Number of Vacancy Rate Additional to Employees as at Establishment 31 March 2003 Administration 4 380 3 648 16.71% -732 Landward Defence 32 872 33 793 -2.80% 921 Air Defence 11 506 10 621 7.69% -885 Maritime Defence 7 609 6 053 20.45% -1,556 Military Health Support 8 126 6 599 18.79% -1,527 Defence Intelligence 11 025 676 34.05% -349 Joint Support 4 657 12 252 16.41% -2,405 Command and Control 1 817 1 264 30.43% -553 Total 81 992 74 906 8.64% -7,086
Note: The structure of 81 992 is unaffordable and restructuring to a baseline of 70 000 in terms of the Defence Review is in process.
18 Department of Defence Chapter 3
Changes in the force design and design and force structures are, transitional post establishment, as force structure, as well as an envis- however, prerequisites for defining restructuring and re-engineering in aged transition from the current ser- the appropriate and affordable size the DOD have not yet been vice system to a new service sys- and shape of the DOD's HR compo- completed. Guided by a structural tem for DAP, will determine future sition. The expenditure for overtime audit conducted in July 2001, pro- personnel strengths and expendi- includes the commuted overtime gramme managers adjusted their ture. payable to health workers and baseline establishment figures medical professionals. accordingly. These figures will The full-time component needs to again be adjusted after completion be reduced to provide more funds, EMPLOYMENT AND of the restructuring and re-engineer- among other things to ensure a VACANCIES ing process in terms of the viable contingent-ready Reserve Department of Public Service and Force. DOD's Establishment. The estab- Administration's Resolution 7 of lishment figures indicated in the 2002 and the DOD's Planning Clearly defined and stable force tables below reflect only the Instruction 7 of 2002.
Table 3.6. Employment and Vacancies by Salary Bands as at 31 March 2003
Salary Band Number of Number of Employees Vacancy Additional to Posts as at 31 March 2003 Rate Establishment Lower Skilled (Levels *1-*2) 7 721 9 215 -19.35% 1,494 Skilled (Levels *3-5) 30 485 33 500 -9.89% 3,015 Highly Skilled Production (Levels 6-8) 33 433 24 373 27.10% -9,060 Highly Skilled Supervision (Levels 9-12) 9 989 7 530 24.62% -2,459 Professionals (Levels 13-16) 101 37 63.37% -64 SMS (Levels 13-16) 263 251 4.56% -12 Total 81 992 74 906 8.64% -7,086
Note: *The levels 1 to 3 post structures are currently under review.
Table 3.7. Employment and Vacancies by Critical Occupation as at 31 March 2003
Critical Occupations Establishment Number of Employees Vacancy Additional to as at 31 March 2003 Rate Establishment Air Space Control 610 472 22.6% -143 Aircrew 765 507 33.7% -258 Anti-Aircraft 973 759 22.0% -214 Artillery 1 268 931 26.6% -339 Combat Navy 883 582 34.1% -313 Engineer 271 177 34.7% -94 Medical Professional 1 611 1 459 9.4% -158 Nursing 2 295 1 515 34.0% -781 Technical 10 184 7 337 28.0% -2,847 Total 18 860 13 739 27.2% -5,147
2002-2003 Annual Report 19 Chapter 3
The staffing process in the DOD is ing process in terms of Resolution 7 Funded vacancies are predomi- reliant on the completion of the re- of 2002 will be completed during nantly the vacancies in critical structuring process. The number of the FY 2003/04. This process will occupations. employees indicated as additional see the further adjustment of the to the establishment in the following structure. It should be noted, EMPLOYMENT CHANGES tables is based on a statistical however, that the indicated comparison of the establishment vacancies are predominantly Appointments in comparison with figure as well as the number of per- unfunded, that they reflect an terminations of service are signifi- sonnel and does not necessarily establishment still in the process of cantly lower. Selective appoint- mean that the personnel indicated restructuring and that the DOD is ments within the whole spectrum of as additional to the establishment currently working towards an HR race and gender have contributed have been individually identified. composition of 70 000 personnel as to the overall improvement of repre- The transformation and restructur- stated in the Defence Review. sentivity in the Department. Budget
Table 3.8. Annual Turnover Rates by Salary Bands for the Period 1 April 2002 to 31 March 2003
Salary Bands Number of Employ- Appointments and Terminations and Turnover ees per Band as at Transfers into the Transfers out of Rate 1 April 2002 Department the Department Lower Skilled (Levels 1-2) 9 900 30 414 -3.88% Skilled (Levels 3-5) 36 353 1 124 1 353 -0.63% Highly Skilled Production (Levels 6-8) 22 913 322 1 150 -3.61% Highly Skilled Supervision (Levels 9-12) 6 695 127 572 -6.65% Senior Management Service Band A 201 0 13 -6.47% Senior Management Service Band B 68 2 7 -7.35% Senior Management Service Band C 11 1 0 9.09% Senior Management Service Band D 4 0 0 0.00% Total 76 145 1 606 3 509 -2.50%
Table 3.9. Annual Turnover Rates by Critical Occupation for the Period 1 April 2002 to 31 March 2003
Occupation Number of Employ- Appointments and Terminations and Turnover ees per Band as at Transfers into the Transfers out of Rate 1 April 2002 Department the Department Anti-aircraft 734 51 33 2.45% Air Space Control 474 24 45 -4.43% Artillery 904 73 53 2.21% Technical 7 387 187 413 -3.06% Engineer 183 20 11 4.92% Medical Professional 1 388 248 189 4.25% Nursing 1 497 109 88 1.40% Aircrew 517 36 42 -1.16% Combat Navy 628 19 46 -4.30% Total 13 712 767 920 -1.12%
20 Department of Defence Chapter 3
constraints necessitated the restric- Occupations included in the Medical adequate to maintain the capabili- tion of appointments to only spe- Professional occupation include ties of the DOD. The high private cialised and professional occupa- medical practitioners, pharmacists, sector demand for specific person- tions within the guidelines of specialists and ancillary health. nel in the DOD's critical occupa- Resolution 7 of 2002. tions, as well as substantially better With regard to critical occupations, remuneration being offered in most It needs to be noted that initial it is clear that most terminations cases, is mainly responsible for the appointments in the regular compo- occurred in occupations where the constant turnover in critical occupa- nent are only made at entry level. DOD has the greatest need, and tions. Subsequent levels are filled through the rate of replacement by either promotion. promotion or appointment is not The integration of former forces and subsequent appointments of histori- cally disadvantaged individuals Table 3.10. Reasons for Termination of Service in the Department enabled the DOD to attain an equi- for the Period 1 April 2002 to 31 March 2003 table black composition, with Africans comprising 61.58 per cent of the total personnel strength. Termination Type Number % of total Retirement 185 5.27% Since 1994 the DOD has made sig- nificant progress in improving repre- Deceased 851 24.25% sentivity, especially in respect of Departmental Transfer 125 3.56% race and gender. Recruiting, Contract Expiry 89 2.54% appointments, promotions and Discharge 161 4.59% career development are all execut- ed in compliance with the relevant Resign 1 045 29.78% criteria for representivity. Contract Change 49 1.40% Normalisation of representivity Medical Discharge 101 2.88% must, however, still occur in the Employer Initiated Package 864 24.62% specialised occupations. This process proves to be a daunting Other 39 1.11% challenge, as the private sector also Total 3 509 100.00% places a premium on the normalisa- tion of their own representivity ratios in specialised occupations. In many
Table 3.11. Promotions by Critical Occupation for the Period 1 April 2002 to 31 March 2003
Occupations Employees Promotions to Salary Level Progressions to Notch Progressions as at 1 April Another Salary Promotions as a Another Notch as a % of Employ- 2002 Level % of Employees Within Salary Level ees by Occupation by Occupation Anti-aircraft 734 125 17.03% 70 9.5% Air-space Control 474 87 18.45% 77 16.2% Artillery 904 201 22.23% 180 19.9% Technical 7 387 1 345 18.21% 854 11.6% Engineer 183 41 22.40% 6 3.3% Medical Professional 1 388 377 27.16% 176 12.7% Nursing 1 497 416 27.79% 188 12.6% Aircrew 517 86 16.63% 18 3.5% Combat Navy 628 94 14.97% 133 21.2% Total 13 712 2 772 20.22% 1,702 12.4%
2002-2003 Annual Report 21 Chapter 3
cases, the better entry-level remu- 1998 owing to a large number of In general, whilst the number of neration and conditions of service members leaving the service by members of the DOD leaving the offered by the private sector for means of the Voluntary Severance organisation has decreased when blacks in specialised occupations Package (VSP). The attrition rate measured as a percentage of the dissuade candidates from seeking has, however, been reduced to 2.43 total strength, no significant change employment in the DOD. per cent during FY 2002/03. The in the reasons for leaving has been Employer Initiated Package (EIP) noted. A slight increase in the attri- The DOD has experienced a 6 per with less success replaced the tion figure due to deaths has, how- cent attrition rate per year since VSP. ever, been experienced.
Table 3.12. Promotions by Salary Bands for the Period 1 April 2002 to 31 March 2003
Salary Bands Employees Promotions to Salary Level Progressions to Notch Progressions as at 1 April Another Salary Promotions as a Another Notch as a % of Employ- 2002 Level % of Employees Within Salary ees by Occupation by Occupation Level Lower Skilled 9 900 11 0.1% 1 273 12.9% (Levels 1-2) Skilled (Levels 3-5) 36 353 3 124 8.6% 3 488 9.6% Highly Skilled 22 913 4 936 21.5% 3 937 17.2% Production (Levels 6-8) Highly Skilled 6 695 1 257 18.8% 1 330 19.9% Supervision (Levels 9-12) Senior Management 284 24 8.5% 6 2.1% (Levels 13-16) Total 76 145 9 352 12.3% 10 034 13.2%
Table 3.13. Total Number of Employees by Occupational Categories as on 31 March 2003
Occupational Categories Male Female Total (SASCO) Asians Africans Coloureds Whites Asians Africans Coloureds Whites Legislators, Snr Officials 3 92 4 136 0 8 0 15 258 and Managers Professionals 32 243 54 595 38 210 35 425 1 632 Technicians and Associate 256 4 878 1 802 6 439 67 1 545 423 2 886 18 296 Professionals Clerks 48 4 246 757 586 40 1 623 281 1 879 9 460 Service and Sales 169 20 637 2 458 1 514 19 1 692 393 371 27 253 Workers Craft and Related Trades 168 3 364 771 2 546 17 504 121 399 7 890 Workers Plant, Machine Operators 85 570 619 136 1 48 31 27 1 517 and Assemblers Elementary Occupations 3 4 752 1 100 119 8 1 717 448 453 8 600 Total 764 38 782 7 565 12 071 190 7 347 1 732 6 455 74 906
22 Department of Defence Chapter 3
EMPLOYMENT EQUITY els for 2003 for Whites is 0.38 per per cent and Africans 3.1 per cent cent over the required 24.35 per under the required 64.68 per cent. Overall Picture. In terms of the cent, Coloureds 2.2 per cent over requirement set by the Defence the required 10.22 per cent, Asians Changes in Representivity. Review, the DOD representivity lev- 0.52 per cent over the required 0.75 Between 1994 and 2003 the follow-
Table 3.14. Total Number of DOD Employees by Occupational Bands as on 31 March 2003
Occupational Bands Male Female Total Asians Africans Coloureds Whites Asians Africans Coloureds Whites Top Management 0 9 0 5 0 2 0 0 16 Senior Management 4 86 4 155 0 7 0 16 272 Professionally qualified 95 1 355 481 4 093 44 307 24 1 131 7 530 and experienced special- ists and mid-management Skilled technical and aca- 405 7 400 3 110 6 360 85 1 999 610 4 404 24 373 demically qualified work- ers, junior management, supervisors, foremen and superintendents Semi-skilled and discre- 251 24 681 3 049 1 414 61 2 634 533 877 33 500 tionary decision making Unskilled and defined 9 5 250 921 45 0 2 398 565 27 9 215 decision making Total 764 38 781 7 565 12 072 190 7 347 1 732 6 455 74 906
Table 3.15. Recruitment by Occupational Bands for the Period 1 April 2002 to 31 March 2003
Occupational Bands Male Female Total Asians Africans Coloureds Whites Asians Africans Coloureds Whites Top Management 0 1 0 0 0 0 0 0 1 Senior Management 0 2 0 0 0 0 0 0 2 Professionally qualified 5 25 4 49 3 17 4 20 127 and experienced special- ists and mid-management Skilled technical and aca- 3 53 13 43 13 85 20 92 322 demically qualified work- ers, junior management, supervisors, foremen and superintendents Semi-skilled and discre- 20 423 138 204 9 169 86 75 1,124 tionary decision making Unskilled and defined 0 7 3 7 0 0 12 1 30 decision making Total 28 511 158 303 25 271 122 188 1 606
2002-2003 Annual Report 23 Chapter 3
Table 3.16. Promotions by Occupation Bands for the Period 1 April 2002 to 31 March 2003
Occupational Bands Male Female Total Asians Africans Coloureds Whites Asians Africans Coloureds Whites Top Management 0 0 0 0 0 0 0 0 0 Senior Management 0 9 0 14 0 0 0 1 24 Professionally qualified 25 289 92 515 14 116 9 197 1 257 and experienced special- ists and mid-management Skilled technical and aca- 65 1 742 559 1 136 21 653 152 608 4 936 demically qualified work- ers, junior management, supervisors, foremen and superintendents Semi-skilled and discre- 56 1 823 285 286 18 445 101 110 3 124 tionary decision making Unskilled and defined 0 1 1 2 0 6 0 1 11 decision making Total 146 3 864 937 1 953 53 1 220 262 917 9 352
Table 3.17. Terminations by Occupational Bands for the Period 1 April 2002 to 31 March 2003
Occupational Bands Male Female Total Asians Africans Coloureds Whites Asians Africans Coloureds Whites Senior Management 1 2 0 15 1 0 0 1 20 Professionally qualified 8 54 15 363 6 17 3 106 572 and experienced special- ists and mid-management Skilled technical and aca- 19 181 92 463 4 57 19 315 1 150 demically qualified work- ers, junior management, supervisors, foremen and superintendents Semi-skilled and discre- 14 908 137 157 2 58 19 58 1 353 tionary decision making Unskilled and defined 2 223 59 16 1 66 45 2 414 decision making Total 44 1 368 303 1 014 14 198 86 482 3 509
24 Department of Defence Chapter 3
ing positive changes in respect of management and entry level. that National Departments must representivity occurred: The female composition increased develop more refined targets to deal Whites decreased from from 19.8 per cent in 1994 to 20.99 with specific inequalities within par- 45.7% to 24.7%. per cent in 2003. The highest ticular groups and levels. It also Africans increased from female composition per rank group states that the Government will 37.5% to 61.58%. occurs in the junior officer group, review and reset the national mini- Coloureds decreased from which bodes well for the growth of mum targets by the end of 2000 15.7% to 12.41%. female representivity in the officer and every three years thereafter. Asians increased from 0.1% corps of the future. Overall, female The DOD has, in this respect, to 1.27%. representivity compares most developed a DOD Affirmative Action favourably with that of other Implementation Plan. In terms of total numbers, the DOD defence forces worldwide. has generally attained an optimal PERFORMANCE level of representivity, although On 31 March 2003, 20.99 per cent REWARDS accomplishing rightsizing in terms of the DOD's members were of race composition at all levels, women, with a racial distribution as The payment of performance re- especially middle management, as follows: wards was dealt with separately well as privates and certain spe- Africans 46.72% (-3.24%); from the annual performance ap- cialised and professional muster- Asians 1.21% (-0.12%); praisal process for the third consec- ings, remains a challenge. How- Coloureds 11.02% utive year running. The results of ever, race equity in junior levels (+2.78%); the process were positive, with an has increased significantly over the Whites 41.05% (+0.6%). average of 15.2 per cent of each past eight years from 37.5 per cent On 31 March 2003, 79 per cent of rank group/salary level in the DOD blacks in 1994 to 57.78 per cent the DOD's members were men, receiving a performance incentive blacks in 2003, with whites de- with a racial distribution as follows: payment. This represents a major creasing from 45.7 per cent in 1994 Africans 65.53% (+0.24%); improvement from the 1998/1999 to 12.36 per cent in 2003. The fo- Asians 1.29% (-0.13%); cycle, when the majority of incentive cus over the short to medium term Coloureds 12.78% allocations were for middle to senior should, however, shift towards nor- (+1.83%); and management. The DOD has man- malising the state of representivity Whites 20.40% (-1.93%). aged to remain within its budget in the SANDF's professional, highly allocation for the payment of incen- specialised combat and technical The White Paper on Affirmative tives for the third consecutive year musterings, as well as at middle Action in the Public Service states running.
Table 3.18. Performance Rewards by Race and Gender for the Period 1 April 2002 to 31 March 2003
Race and Gender No of No of Employees % of Total Cost Average Cost Beneficiaries as at 1 April 2002 within Group R’000 per Employee Asians 172 956 17.99% 1 349 7 843 Male 138 782 17.65% 1 096 7 942 Female 34 174 19.54% 253 7 443 Africans 6 166 46 732 13.19% 32 000 5 190 Male 5 259 39 498 13.31% 27 204 5 173 Female 907 7 234 12.54% 4 795 5 287 Coloureds 1 429 9 327 15.32% 9 180 6 424 Male 1 172 7 641 15.34% 7 747 6 610 Female 257 1 686 15.24% 1 434 5 578 Whites 3 560 19 130 18.61% 31 994 8 987 Male 2 133 12 427 17.16% 20 116 9 431 Female 1 427 6 703 21.29% 11 878 8 324 Total 11 327 76 145 14.88% 74 523 6 579
2002-2003 Annual Report 25 Chapter 3
Table 3.19. Performance Rewards by Salary Bands for the Period 1 April 2002 to 31 March 2003
Salary Bands No of No of % of Total Cost Average Total Cost as a % of Beneficiaries Employees as within Cost per the Total Personnel at 1 April 2002 Group R’000 Employee Expenditure Salary level 1-2 841 9 900 8.49% 2 867 3 409 0.56% Salary level 3-5 4 741 36 353 13.04% 21 185 4 468 1.04% Salary level 6-8 4 313 22 913 18.82% 32 081 7 438 1.28% Salary level 9-12 1 432 6 695 21.39% 18 391 12 843 1.28% Total 11 327 75 861 14.93% 74 523 6 579 1.15%
Table 3.20. Performance Rewards by Critical Occupations for the Period 1 April 2002 to 31 March 2003
Salary Bands No of No of Employees % of Total Cost Average Cost per Beneficiaries as at 1 April 2002 within Group R’000 Employee Anti-aircraft 110 734 14.98% 641 5 825 Air Space Control 81 474 17.09% 658 8 125 Artillery 134 904 14.82% 894 6 675 Technical 1 079 7 387 14.61% 8 521 7 897 Engineer 9 183 4.92% 80 8 937 Medical Professional 106 1 388 7.64% 1 060 10 002 Nursing 204 1 497 13.63% 1 538 7 541 Aircrew 63 517 12.19% 686 10 880 Combat Navy 84 628 13.38% 733 8 720 Total 1 870 13 712 13.64% 14 811 7 920
26 Department of Defence Chapter 3
This spending of performance instrument, depending on their mili- during the FY 2002/03 were in pos- incentives was also lower in real tary rank or salary level. session of RSA citizenship. terms, indicating an acceptance of The aim of this system will be to the principle among supervisors focus the attention of supervisors UTILISATION OF LEAVE that, on average, only 15 per cent on the developmental role of the of personnel can be considered for appraisal system, and to establish a There was a tendency among indi- a performance incentive. more accurate indication of the viduals to require sick leave more The new interim performance competency and skills level of than once a year. It was also appraisal system for the DOD was personnel. noticeable that the highest figures finalised. The system represents a were for employees at salary levels major break from past appraisal FOREIGN WORKERS 1-2 and 3-5. practices, and all DOD personnel will be assessed on a universal All personnel employed by the DOD
Table 3.21. Sick Leave taken by Defence Act Personnel for the Period 1 April 2002 to 31 March 2003
Salary Bands Total Days No of Employees % of Total Average per Cost Taken Using Sick Leave Employees Using Employee Using Sick Leave Sick Leave Lower Skilled (Levels 1-2) 1 161 109 6.8% 10.7 102 415 Skilled (Levels 3-5) 142 058 13 524 41.5% 10.5 16 786 665 Highly Skilled Production 93 115 10 151 47.8% 9.2 19 725 649 (Levels 6-8) Highly Skilled Supervision 23 673 2 683 37.5% 8.8 8 695 663 (Levels 9-12) Senior Management 482 69 27.6% 7.0 333 463 (Levels 13-16) Total 260 489 26 536 42.2% 9.8 45 643 854
Note: Sick leave taken by Defence Act Personnel for the period is indicated in calendar days.
Table 3.22. Sick Leave taken by Public Service Act Personnel for the Period 1 April 2002 to 31 March 2003
Salary Bands Total Days No of Employees % of Total Average per Cost Taken Using Sick Leave Employees Using Employee Using Sick Leave Sick Leave Lower Skilled (Levels 1-2) 33 378 4 456 47.7% 7.5 2 951 893 Skilled (Levels 3-5) 9 648 1 360 60.1% 7.1 1 188 371 Highly Skilled Production 19 743 2 718 63.9% 7.3 4 010 510 (Levels 6-8) Highly Skilled Supervision 2 092 323 36.3% 6.5 837 396 (Levels 9-12) Senior Management 82 13 22.8% 6.3 70 289 (Levels 13-16) Total 64 943 8 870 52.8% 7.3 9 058 459
Note: Sick leave taken by Public Service Act Personnel for the period is indicated in working days.
2002-2003 Annual Report 27 Chapter 3
Table 3.23. Disability Leave taken by Public Service Act Personnel for the Period 1 April 2002 to 31 March 2003
Salary Bands Total Days % Days with No of % of Total Ave per Cost Taken Medical Employees Employees Employee Certification Using Sick Using Sick Using Sick Leave Leave Leave Lower Skilled (Levels 1-2) 15 361 792 792 8.0% 19.4 1 350 107 Skilled (Levels 3-5) 4 557 236 236 0.6% 19.3 567 823 Highly Skilled Production 7 881 429 429 1.9% 18.4 1 537 411 (Levels 6-8) Highly Skilled Supervision 473 30 30 0.4% 15.8 190 661 (Levels 9-12) Senior Management 2 1 1 0.4% 2.0 1 675 (Levels 13-16) Total 28 274 1 488 1 488 2.0% 19.0 3 647 677
Table 3.24. Annual Vacation Leave taken by Defence Act Personnel by Salary Bands for the Period 1 April 2002 to 31 March 2003
Salary Bands Total Days Taken Average per Employee Using Vacation Leave Lower Skilled (Levels 1-2) 6 556 32 Skilled (Levels 3-5) 976 138 32 Highly Skilled Production (Levels 6-8) 660 216 32 Highly Skilled Supervision (Levels 9-12) 224 699 33 Senior Management (Levels 13-16) 7 402 32 Total 1 875 011 32
Note: Annual vacation leave taken by Defence Act Personnel for the period is indicated in calendar days.
Table 3.25. Annual Vacation Leave taken by Public Service Act Personnel by Salary Bands for the Period 1 April 2002 to 31 March 2003
Salary Bands Total Days Taken Average per Employee Using Vacation Leave Lower Skilled (Levels 1-2) 222 056 25 Skilled (Levels 3-5) 44 092 21 Highly Skilled Production (Levels 6-8) 85 328 21 Highly Skilled Supervision (Levels 9-12) 13 442 20 Senior Management (Levels 13-16) 1 055 20 Total 365 973 23
Note: Annual vacation leave taken by Public Service Act Personnel for the period is indicated in working days.
28 Department of Defence Chapter 3
JOB EVALUATION resulted in 1 816 job evaluations The Integrated Management Sys- with a summary of jobs evaluated at tems Directorate evaluated a total various Salary Levels given in Table number of 226 job types. This 2.24.
Table 3.26. Job Evaluations performed in the DOD during FY 2002/03
Salary Level Post No of Job Types Posts Upgraded Posts Downgraded Establishment Evaluated Number % of Total Number % of Total Salary Level 1-2 6 087 1 2 3.13% 0 0.00% Salary Level 3-5 32 448 4 37 57.81% 81 50.00% Salary Level 6-8 33 472 43 21 32.81% 72 44.44% Salary Level 9-12 9 867 37 4 6.25% 9 5.56% Total 81 874 85 64 100% 162 100%
* Positions where they are registered with professional bodies (eg engineers, etc.).
HIV/AIDS AND HEALTH PROMOTION PROGRAMMES
Table 3.27. Steps taken to reduce the risk of Occupational Exposure
Units/categories of employees identified to be at Key steps taken to reduce the risk high risk of contracting HIV & related diseases All Department of Defence Workplaces/Units Training of HIV/AIDS Workplace Programme Managers appointed to implement HIV/AIDS Workplace Programmes according to poli- cy, and Occupational Health and Safety Representatives at work- places according to legislation with personal protective equipment available throughout the organisation All Health Care Personnel Training of all health care personnel in HIV/AIDS, including the prevention and management of occupational transmission with personal protective equipment available throughout the organisation
Table 3.28. Details of Health Promotion and HIV/AIDS Programmes
Question Yes No Details, if yes Has the department designated a member of the SMS to implement the provisions contained in Part VI E of Chapter 1 of the Public Service Regulations, 2001? If so, provide her/his name and position.
2002-2003 Annual Report 29 Chapter 3
Question Yes No Details, if yes Does the department have a 9 x area military health unit (provincial) health dedicated unit or have you designated promotion managers (general health promotion pro- specific staff members to promote the grammes); 9 x area military health prevention man- health and well-being of your employ- agers (general health and specific HIV/AIDS prevention ees? If so, indicate the number of programmes). No specific budget allocated. employees who are involved in this task and the annual budget that is available for this purpose. Has the department introduced HIV/AIDS prevention; prevention of substance abuse; an Employee Assistance or Health prevention of suicide; family preservation and Promotion Programme for your employ- resilience; financial empowerment; life skills; healthy ees? If so, indicate the key lifestyle programmes; gender equity programmes elements/services of this programme. Has the department established HIV/AIDS committees at Level 2, 3 and 4 of the (a) committee(s) as contemplated in Part SAMHS (statutory directors and staff officers; HIV posi- VI E.5 of Chapter 1 of the Public Service tive members; medico-legal officers, corporate commu- Regulations, 2001? If so, please provide nication and pastoral services) and military community the names of the members of the com- development committees in all other services (com- mittee(s) and the stakeholder(s) that manding officers, occupational health and safety repre- they represent. sentatives, HIV workplace programme managers, pas- toral services, social work officers, personnel, labour relations, legal officers, warrant officers) Has the department reviewed the employment policies and practices of your department to ensure that these do not unfairly discriminate against employ- ees on the basis of their HIV status? If so, list the employment policies/prac- tices so reviewed. Has the department introduced Policy formulation; mass awareness (posters, measures to protect HIV positive pamphlets and industrial theatre); grievance proce- employees or those perceived to be HIV dures; GIPA programme; HIV/AIDS training programme positive from discrimination? If so, list with peer education; training of medico-legal officers in the key elements of these measures. HIV/AIDS Does the department encourage Results of 2002 KAP study indicates that 85.9 per cent its employees to undergo voluntary have had an HIV Test and 47.9 per cent of members counselling and testing? If so, list the assessed have asked for a HIV test in the past 12 results that you have achieved. months. The reason most often provided for not having an HIV test is that respondents were sure that they did not have HIV. The majority of last mentioned respon- dents were older than 39 Has the department developed Monitoring and evaluation of the DOD HIV/AIDS measures/indicators to monitor & evalu- Training Programme with pre- and post-training ques- ate the impact of your health promotion tionnaires, monitoring of condom use and STI consulta- programme? If so, list the tions, organisational KAP questionnaires, monitoring of measures/indicators. total SANDF health profile, bi-annual comprehensive health assessments
30 Department of Defence Chapter 3
SKILLS DEVELOPMENT the information provided and will be Services and Divisions inter- specifically addressed to ensure pret professional develop- The following factors had an impact that the information for FY 2003/04 ment and functional training on the availability and accuracy of conforms to the requirements: differently.
Table 3.29. Summary of Skills Development within DOD - FY 2002/03
Description Male Female Africans Coloureds Asians Whites Disabled Africans Coloureds Asians Whites Disabled Professional 752 114 71 700 0 141 28 10 190 0 Development: Officers Professional 3 611 637 638 1549 1 590 127 20 341 0 Development: Other Ranks Professional 39 163 0 55 1 23 27 6 278 1 Development: Public Service Act Personnel Functional Training: 723 118 84 917 2 233 47 5 214 0 Officers Functional Training: 6 433 966 373 1485 2 1040 256 56 470 1 Other Ranks Functional Training: 17 8 0 1 2 18 17 3 82 0 Public Service Act Personnel Tertiary Studies at 195 49 8 111 0 41 23 0 57 0 Military Institutions: Full-time: All DOD Personnel Tertiary Studies at 261 58 42 267 0 36 6 5 38 0 External Institutions: Full-time: All DOD Personnel Tertiary Studies at 7 4 0 33 0 1 5 0 37 0 Military Institutions: Part-time: All DOD Personnel Tertiary Studies at 1 094 251 92 1 118 2 454 170 81 481 0 External Institutions: Part-time: All DOD Personnel ETD Seminars: 103 33 5 202 2 74 17 1 144 0 Internal: All DOD Personnel ETD Seminars: 420 290 70 939 0 531 73 15 398 0 External: All DOD Personnel Total 13 655 2 691 1 383 7 377 12 3 182 796 202 2 730 2
Comments on Table The SANDF is unique in that it provides both professional development and functional training for its officers
2002-2003 Annual Report 31 Chapter 3
and other ranks to ensure the continual quality improvement of Defence Act Personnel in order to prepare them for operations. This training is not available anywhere else in the RSA and is unique to the military. PSAP development and training within the DOD are in line with rest of the Public Service and are based on individual career development requirements as included in the Codes of Remuneration for each specific occu- pational class or group. Emphasis is placed on the officer corps to obtain higher tertiary qualifications so as to ensure that the leaders of tomorrow are suitably equipped to meet the challenges of the future.
The information requested determine the costs involved. Little to no communication was not always available in The formula varies between was evident in providing the format required. Services and Divisions leading guidelines to the holders of No financial data was provid- to inconsistencies when the developmental information at ed, as there is a large dis- information is consolidated at the beginning of the financial crepancy in the formula to corporate level. year.
LABOUR RELATIONS
No collective agreements were entered into with trade unions within the Department.
Table 3.30. Misconduct and Disciplinary Hearings Finalised, 1 April 2002 to 31 March 2003
Outcomes of disciplinary hearings Number % of total Correctional counselling 1 2.12% Verbal warning Written warning 9 19.16% Final written warning 12 25.54% Suspended without pay Fine Demotion 1 2.12% Dismissal 16 34.04% Not guilty 4 8.51% Case withdrawn 4 8.51% Total 47 100%
32 Department of Defence Chapter 3
Table 3.31. Types of Misconduct addressed at Disciplinary Hearings (PSAP)
Type of misconduct Number % of total Theft of State money/property 8 17.02 Failure to maintain effective, efficient and transparent 1 2.12 systems to prevent unauthorised and irregular expenditure Mismanagement of State finances 9 19.16 Absence without leave (AWOL) 16 34.04 Fraud 2 4.26 Prejudice towards the administration, discipline and/or 2 4.26 efficiency of the DOD Failure to carry out lawful orders 2 4.26 Loss of State monies 2 4.26 Unauthorised use of State property 2 4.26 Disclosure of official information 1 2.12 Criminal offences 1 2.12 Sexual harassment 1 2.12 Total 47 100
Table 3.32. Collective Grievances lodged for the Period 1 April 2002 to 31 March 2003
Number % of total Number of grievances resolved 1 25% Number of grievances not resolved 3 75% Total number of grievances lodged 4 100%
Table 3.33. Collective Disputes lodged with DOD Bargaining Council and Military Bargaining Council for the Period 1 April 2002 to 31 March 2003
Number % of total Number of disputes upheld 0 0.00% Number of disputes dismissed 0 0.00% Total number of disputes lodged 10 100%
Commencement of activities of the Military Arbitration Board (MAB). The MAB commenced with its activities on 3 July 2002. A large number of matters were referred to the Board for arbitration. In most of the cases a number of in limine arguments were raised by both councils and have therefore not been finalised as yet. Resolution of disputes before the MAB. None of the matters brought before the MAB have been resolved for the following reasons The testing of legal principles that may serve as precedents in future. Interpretation anomalies of certain sections of Chapter XX of the General Regulations for the South African National Defence Force and Reserves. South African National Defence Union's (SANDU) insistence to be involved in managerial matters and the denial of the managerial prerogative and responsibilities as provided for in all recognised labour practice. The perceived calculated confrontational stance of SANDU, possibly linked to their quest for membership.
2002-2003 Annual Report 33 Chapter 3
Table 3.34. Individual Grievances lodged with Sectoral Councils for the Period 1 April 2002 to 31 March 2003
Number % of total Number of grievances resolved 534 64, 9 Number of grievances not resolved 289 35, 1 Total number of grievances lodged 823 100%
Kindly note that the grievances statistics submitted are for the level of Chief of the SANDF/Secretary for Defence and upwards (President and Public Service Commission). Statistics are drawn from interim database, which was established in May 2002. Grievance statistics include both DAP and PSAP.
Table 3.35 - Disputes lodged with Councils for the Period 1 April 2002 to 31 March 2003
Number % of total Number of disputes upheld 0 0.00% Settlement by means of agreement on procedural fairness 7 16, 3% Number of disputes dismissed 36 83, 7% Total number of disputes lodged 43 100%
Table 3.36. Strike actions for the Period 1 April 2002 to 31 March 2003
COSATU Demonstration for Decent Public Rail Transport Protest Action - 13 June 2002 Total number of person working days lost Nil Total cost (R'000) of working days lost Nil Amount (R'000) recovered as a result of no work no pay Nil COSATU Anti-Privatisation Campaign which took place during 01-02 Oct 2002 DAY ONE Total number of person working days lost 288 Total cost (R'000) of working days lost 2,296 Amount (R'000) recovered as a result of no work no pay 129,701.70 DAY TWO Total number of person working days lost 285 Total cost (R'000) of working days lost 2,272 Amount (R'000) recovered as a result of "no work no pay" 129,446.90
Note: COSATU = Congress of South African Trade Unions.
34 Department of Defence Chapter 3
Table 3.37. Precautionary Suspensions for the Period 1 April 2002 to 31 March 2003
Number of people suspended 7 Number of people whose suspension exceeded 30 days 7 Average number of days suspended 173.6 Cost (R'000) of suspensions R319 444.77
DISCIPLINE
The most common offences occur- ring among uniformed members of of cases from disciplinary hear- Judge and Senior Military Judge, the DOD as measured at the review ings and the Courts of Military are given in the table below.
Table 3.38. Most Common Offences of DAP for FY 2002/03
Most Common Offences 2000/01 2001/02 2002/03 Section 14(a) MDC 4231 5007 2727 Absence without leave (AWOL) Section 14 (b) MDC 1593 2162 1021 Absence from place of parade, duty, etc Section 19 (2) MDC 657 992 247 Disobeying a lawful command Section 17 MDC 112 - 163 Using threatening, insubordinate or insulting language Section 33 (a) and (b) Drunkenness 142 435 121
Note: MDC = Military Disciplinary Code.
2002-2003 Annual Report 35 Chapter 4
PART 3: PROGRAMME PERFORMANCE
DEFENCE ADMINISTRATION
ANNUAL REVIEW
The Department of Defence (DOD) DEFENCE OUTPUTS1 Annual Report reports the perform- ance of the DOD against its plans The outputs of the DOD consist of for the FY 2002/03. This report is defence commitments; and in effect the DOD's performance defence capabilities. report. Therefore the full outputs, including the operational outputs Defence commitments are those (outputs for internal consumption) operations consumed by divisions inside the which are ongoing in nature, DOD during the process of produc- and for which plans and ing the defence financial provi- outputs for use sion can be by Government, made in are detailed in INTRODUCTION advance; this report. which must be execut- The nine defence programmes ed during the year and, if administer, acquire, support and unforeseen, for which no prepare the capabilities required to provision has been made; deter aggression and protect the and RSA's sovereignty. During periods for which joint and multina- of conflict it is easier to observe the tional exercises are required outcome of defence and the outputs to prepare forces for opera- of defence than during time of rela- tions. tive peace. Government funds the defence programme in order to be The defence capabilities required to prepared for contingencies that meet the defence needs of South could arise as identified in the prior- Africa are described in terms of the ity classes. force design and combat readiness.
1 Outputs are defined by Treasury as "…the final goods or services rendered by departments to external customers or clients". The DOD defines the final goods and services produced by Services and Divisions that are supplied to internal customers or clients as "operational outputs".
36 Department of Defence Chapter 4
2002-2003 Annual Report 37 Chapter 4
The South African National De- the processes necessary for partici- force development and force fence Force (SANDF) Force pation in peace missions outside employment to viably source both Design (FD) indicates the level of the country. Continued presence in the Regular and Reserve Force, capabilities required by the DOD to a number of African countries dis- and lastly to rightsize the DOD. achieve its mission. The force played South Africa’s and specifi- design of the SANDF was derived cally the DOD's contribution to pro- New Partnership for Africa's from the Defence Review, and is mote regional security. These mis- Development (NEPAD). The DOD continually reviewed in response to sions included deployment in coun- was given direction regarding its changes in the environment reflect- tries such as the Democratic role within NEPAD. The DOD ed in the Military Strategic Appre- Republic of the Congo (DRC), approach was to make available ciation and the Military Strategy. Burundi, Ethiopia and Eritrea. The excess defence articles and provide These documents, as well as guide- MOD directed the Defence learning opportunities to other lines issued by the Minister of Secretariat and the SANDF in plan- defence forces. Defence, the Secretary for Defence ning and servicing the military and the Chief of the SANDF are Memoranda of Understanding with The African Union (AU). South used to design a force structure states in accordance with the Africa's position as first Chair of the (including the force design) that is International Relations Peace and AU requires South Africa and the affordable within the DOD budget Security (IRPS) Cluster priorities for DOD to demonstrate their willing- allocation. states to enhance collective security ness and the ability to deploy their and early warning. Instructions defence resources in order to Combat Readiness2, which is a were issued concerning prepara- ensure that the AU becomes a measure of the ability of a unit to tions for the staffing of the Inter- recognised vehicle for pursuing and carry out its assigned mission, is State Defence and Security attaining the NEPAD objectives. the primary performance measure Committee (ISDSC), as part of the The areas identified where the DOD used to evaluate the quality of the Southern African Development was to play a role were: outputs of the capabilities that pro- Community (SADC). This was duce combat and combat-support done with a view to the execution of Participation in the AU units. multi-national exercises and opera- structures. The emphasis tions through the sharing of was put on a main custodian The performance reports per pro- resources, concurrently contributing for all AU-related matters gramme are contained in the follow- towards interoperability. within the DOD. ing chapters: The MOD also instructed prepara- Common Defence and Chapter 4. Defence Administration. tion for the training of personnel on Security Policy. The DOD Chapter 5. Landward Defence. mediation, negotiation and arbitra- had to develop its position Chapter 6. Air Defence. tion techniques that could assist and mainly along the lines of Chapter 7. Maritime Defence. with the participation and staffing of the SADC Mutual Defence Chapter 8. Military Health Service. the African Union (AU) peace and Pact, whilst considering the Chapter 9. Defence Intelligence. security structures. The challenge impact on the military strate- Chapter 10. Joint Support. of foreign languages in the regional gy and the force design. Chapter 11. Command and Control. context where SANDF forces are deployed, was also addressed. Protocol on the Peace and POLITICAL DIRECTION Security Council (PSC). The sustainable composition of the The DOD investigated its The Minister of Defence and the DOD is the primary purpose of the role in the PSC and the pos- Deputy Minister of Defence (collec- Human Resource Strategy 2010 sible seconding of DOD per- tively known as the Ministry of that was accepted in FY 2001/02. sonnel to the PSC. Defence - MOD) are responsible for This strategy would enable the providing political direction to the DOD to rejuvenate the SANDF SADC Security Management. The DOD. human resource composition, MOD made the DOD aware of the implement the new way that mem- possible overlapping of require- During the period under review the bers serve in the SANDF, and the ments for security co-operation at MOD continued their role in guiding "one force concept" was used for the regional (AU) and the subre-
2 This term is synonymous with the term "force preparedness". In this plan combat readiness refers to the readiness states prescribed by Chief of Joint Operations on behalf of C SANDF, whilst force preparedness refers to the readiness states prescribed by the Service Chief.
38 Department of Defence Chapter 4
gional (SADC) levels. The DOD surrounding the AU and NEPAD further exacerbated by a number of had to consider the taxing nature of further dictated national and inter- visits abroad that were not planned such commitments. national obligations, which necessi- and/or budgeted for. tated correct management of bilat- DEPARTMENTAL eral and multilateral agreements. The Directorate Planning and DIRECTION The significant defence implications Programming has been in existence of these agreements called for since March 2002 as a fully func- This subprogramme provides for sound administrative systems and tional directorate rendering a dedi- the Secretary for Defence as the procedures. cated and focused service to the Head of Department, the Account- DOD. The Directorate has to deal ing Officer and the Principal Policy ANNUAL REVIEW with multiple processes of planning Advisor to the Minister of Defence. and reporting simultaneously at var- As Accounting Officer, the Secre- The Policy and Planning Division ious levels, namely the Policy and tary for Defence dealt with the had an impressive but very chal- Planning Division, the Defence strategic plan for the forthcoming lenging year. The output of the divi- Secretariat and, ultimately, at DOD Medium-term Expenditure Frame- sion was significantly increased level when the SANDF material is work (MTEF), submitting to Parliam- despite challenges pertaining to integrated. The Directorate has to ent the measurable objectives for staffing and insufficient budgetary ensure not only compliance with each main division of the DOD, and allocation. The cumbersome staf- national and departmental regula- eventual accounting to Parliament fing procedure for Public Service tions and guidelines, but it is also for the Defence Vote 22. Act Personnel (PSAP) was largely responsible for quality assurance of responsible for the under-expendi- all the above-mentioned products. The Secretary for Defence spear- ture during the period under review. The Directorate Integrated Manage- headed the continued revisiting of ment Systems implemented func- the Defence Review to validate the The Chief Director Defence Policy tional control over the DOD organi- relevance of strategic scenarios and and Director Research and Analysis sational structures and performed contingencies. A precondition is the were appointed. The function shift an elaborate job evaluation of achievement of general consensus from the Civic Education Evaluation Senior Management System (SMS) on the type of defence to ensure Advisory Board (CEEAB) of Joint posts. cost-effective defence, a primary Training to the Policy and Planning concern for the Secretary for Division without the requisite budget Despite the plethora of challenges Defence. put more pressure on the division's encountered by the Division with operating budget. regard to functional planning, budg- Primary activities within the DOD etary and human resource capacity, were characterised by the prepara- The other new mandates given to the division managed to perform tions for the Mutual Defence Pact, the division that were not planned impressively against its set objec- with the focus on early warning or budgeted for were the Military tives. Some of the significant high- mechanisms, interoperability and Arbitration Board (MAB) and the lights of the period included the fol- logistic support. Military Bargaining Council (MBC). lowing: Funding for the MAB and MBC was Another area of focus was the only received through the Depart- Drafting of the Prohibition of alignment and improvement of mental Programme and Budget Anti-personnel Mines Bill, which departmental programmes, planning Evaluation Committee (DPBEC) was approved by Cabinet, the and processes to comply with the towards the end of the 3rd quarter of Portfolio Committee on Defence policies of government and execu- FY 2002/03. and the National Assembly. The tive expectations. Bill was hailed by both the One great concern during the peri- Portfolio Committee on Defence POLICY AND PLANNING od under review was the planning and the National Assembly as and management of peace mis- one of the best written Bills from INTRODUCTION sions for the SANDF. Efforts to the DOD since 1994. The Bill improve co-ordination between the has also been received as con- The range of transformational and Defence Secretariat and the stituting best practice by interna- structural changes that occurred in SANDF were further hampered by tional organisations such as the the DOD during the past year the dysfunctional National Office for International Committee of the required the DOD to continuously Co-ordination of Peace Missions Red Cross (ICRC) and the adapt and adjust to these changing (NOCPM) of the Department of International Campaign to Ban circumstances. The developments Foreign Affairs (DFA). This was Landmines (ICBL).
2002-2003 Annual Report 39 Chapter 4
The formalisation and institutionali- thereof by the President in February The Policy on the Working sation of the Performance Against 2003, took place. Hours and Working Plan Control System was success- Arrangements in the DOD fully introduced during the year The tabling and adoption of the was approved by the PDSC under review. National Conventional Arms Control in March 2002. Committee Act, 2002, took place, of The Policy on Organisational Eleven international agreements which the Act was also assented to Rights of Public Service Act were concluded and twelve bilateral by the President in February 2003. Personnel (PSAP) Unions in meetings (defence committees) the DOD was signed and were hosted for the purposes of fur- CORE DIVISIONAL OBJECTIVES ratified by both the employer thering RSA defence interests and and the employee represen- promoting government diplomatic The core objectives of the Policy tatives on 26 September agendas of forging closer ties with and Planning Division are the fol- 2002. countries having common interests lowing: The Constitution of the DOD with the RSA. Providing expert inputs relat- Bargaining Council was ing to general defence policy brought in line with the The DOD position paper on the to the Minister of Defence, Public Service Co-ordination World Summit on Sustainable Deputy Minister of Defence, Bargaining Council (PSCBC) Development (WSSD) was drafted Secretary for Defence and guidelines. This Constitution and it also became part of the RSA the Chief of the SANDF. was approved and ratified by Government delegation to the Managing of the strategic the DOD Bargaining Council WSSD's proceedings and management, strategic plan- on 27 November 2002. discussions. ning and strategic control The Policy on the Manage- processes of the DOD. ment of Cabinet Memoranda There was successful participation Managing the policy-formula- in the DOD was approved by in the United Nations' (UN) negotia- tion process of the DOD. the PDSC in August 2002. tions on the proposed amendments Drawing up, promulgation The DOD position paper on to the Certain Conventional and promotion of the depart- the proposed amendments Weapons (CCW) Convention. A mental plan to Parliament. to the Conventional Service member of the Division has been Integrating and performing Writing (CSW). This paper appointed as a member of the UN- analysis of management was approved by the PDSC established body of Government systems in the DOD. in October 2002. experts to advise the UN on the Interpreting inputs/influences The Ministerial Directive and merits of the proposed amendments which could affect the overall the Secretary for Defence to the CCW Convention. national defence strategy; Implementation Instruction Providing human resource on the Donations and RSA positions were presented at policy and planning for the Sponsorships Policy was the UN Ad Hoc Committee meeting DOD. brought in line with the on the strengthening of the UN Regulating conventional requirements of the Public Convention on the safety of UN per- arms transfers in accordance Finance Management Act sonnel and associated personnel. with government policy. (PFMA). This was approved Co-ordinating the drawing up by the PDSC. The first of a series of four US- of national contingency plans The Policy Instruction for the sponsored policy writers/instructors for a state of national Implementation of Civic courses took place, which should defence (war). Education in the DOD, was see the competency for the training approved. of policy writers established in the POLICY DEVELOPMENT DOD by 2004. OUTPUTS The following policies were devel- Ministerial approval was given for oped and promulgated by the Policy Provision of advisory servic- the policy on the inherent rank/age and Planning Division during the es to the Secretary for requirements and an updated period under review: Defence and the Ministry on Human Resource (HR) Strategy The Policy on the Promotion matters pertaining to 2010. of Access to Information Act defence policy. was approved by the Ple- The Division continued to The finalisation of the Defence Act, nary Defence Staff Council provide legal advice to the Act 42 of 2002, and the signing (PDSC) in May 2002. Secretary for Defence and
40 Department of Defence Chapter 4
Ministry, especially during The division, headed by the Chief CORE DIVISIONAL OBJECTIVE the formulation of defence- Financial Officer, makes use of the related legislation. Financial Management Board and To provide an effective, efficient Provision of strategic man- related committees in exercising and economic financial manage- agement services, including control over the execution of plans. ment service to the Secretary for departmental planning and Since the enactment of the PFMA, Defence, our principals and clients reporting. a structured and regular reporting appropriate to point of delivery, in Provision of integrated man- mechanism has been introduced. terms of statutory prescripts, by agement services, including means of one professional repre- the DOD structure manage- ANNUAL REVIEW sentative civilian finance corps and ment. appropriate financial management Provision of secretariat serv- The Financial Management Division systems. ices concerning the manage- continued to render an excellent ment of conventional arms service to clients and principals. POLICY DEVELOPMENTS transfers and related issues. The good relationship between the division and National Treasury as Policies that were approved and SERVICE DELIVERY well as the Auditor General has promulgated during the period IMPROVEMENT helped to ensure continued profes- under review are: sional service. Ministerial Policy Directive The division strongly believes that on Risk Management in the Finance is challenged by transfor- through proper training and relevant DOD - DODI/00001/2002, mation imperatives. These chal- exposure, service delivery and effi- 31 July 2002. lenges are being attended to in ciency could be improved and costs DOD Policy on Risk Man- three phases over ten years: reduced. It is against this back- agement - DODI/CFO/ Phase 1: Fundamental re- ground that the division invests 00001/2002, 31 July 2002. design for improved cost- heavily in granting opportunities to DOD Policy Publication on effectiveness of service study at State expense and pro- Risk Management in the delivery (1998 - 2001). vides opportunities in competency- DOD - JDP/00001/2002, Phase 2: Compliance with enhancement courses that are 31 July 2002. legislative and regulatory offered by high-profile institutions prescripts for public financial both internally and abroad. OUTPUTS management (2002 - 2003). Phase 3: Converting from The Division is currently being Budget Management cash-based to accrual-based analysed in order to determine the accounting policy (2004 - appropriateness of the current A cost-effective corporate 2008). structure in respect of its functions. budget preparation service It is envisaged that there may be a Finance has completed Phase 1, was achieved as planned. reconfiguration of functions and except for a specific labour issue The following were produced structures in order to ensure effi- relating predominantly to represen- timeously, efficiently, effec- ciency and effectiveness. tivity which is currently being dealt tively and economically: with. The self-generated PFMA Budget guidelines. FINANCIAL MANAGEMENT compliance audits were completed Budget submission. by 31 July 2002. The core and Estimate of national INTRODUCTION improvement objectives for FY expenditure. 2002/03 and other years have been Departmental vote. The Financial Management Division revised accordingly. Departmental input - and provides a financial management output-based motivation service to the DOD in order to Finance has achieved the mile- report. ensure compliance with statutory stones of the core and improvement Approved Special Defence prescripts when obtaining and utilis- objectives set for the FY 2002/03 as Account. ing financial resources in pursuit of detailed in the report. The aggres- A cost-effective corporate defence objectives. The Finance sive pursuit of the objectives of the budget execution service Division thus plays a critical role in Financial Management Division is was achieved as planned. supporting the Secretary for sought from all the managers, The following were executed Defence as the Accounting Officer supervisors and workers because as required: for the DOD. financial management is the spinal In-year programme adjust- cord of the DOD. ments budget submission.
2002-2003 Annual Report 41 Chapter 4
Monthly early warning re- ing subsystem on the Financial year of relative tranquillity after the ports, including exception Management System (FMS) has turbulence created by the so-called reports, when necessary. been finalised. No further enhance- "Armaments Package Scandal". Mr
Virement and fund reallo- ments are envisaged. B.E. Ramfolo filled the post of Chief cation submissions/ of Acquisitions of the DOD, which authorities. Production of a project baseline was vacated in April, with effect
Funding of underfunded monitor instrument (red light from 1 July 2002. and unfunded mandates. reports) phase I and II have been
Roll-over claim submis- completed. Phases III and IV are During this time the DOD managed sion. continuing. The target date for 69 weapon system acquisition proj- A cost-effective budget man- the finalisation of the project is ects and 22 technology acquisition agement service to program- 31 March 2004. domains. New milestone authorisa- me managers was achieved tions to 48 of these weapon system as planned. Enhancement of the FMS to cap- projects were given at the appropri- ture the adjustment budget was ate Ministerial or Secretary for Accounting implemented in December 2002. Defence approval forum.
The corporate financial asset Progress was made on a method to Of a total capital budget allocation and annual reporting service more accurately predict cash flow amounting to some Rb7,8 for the were achieved as planned. through the Paymaster General purchase of new weaponry, less Bank accounts were man- (PMG) Account. The State Informa- than 0,1 per cent was left uncom- aged strictly according to tion Technology Agency (SITA) has mitted at the end of the financial prescripts. In the area of done preliminary investigations. year. At variance with the previous debtor management, prob- Further feedback is awaited. It has six financial years, a very substan- lems were experienced with been put on temporary hold due to tial amount of money, representing the implementation of the the implementation of the Special almost 16 per cent of the capital debtor system. The system Defence Account bank account. budget, could not be paid, either was, however, implemented because the contractual milestones in February 2002. The re- Development and implementation of were not achieved or because quired policy has been com- a Debtor Management and some other administrative problems piled and only needs to be Accounting System: were experienced. promulgated. Write-off of irrecoverable debt is still lag- Take-on and registration of Essentially, this underspending ging. debt from the 12 serials onto (approximately 11 per cent) was on The stores, services, related the debtor system is in the strategic defence packages payments and revenue man- process and is to be com- (SDPs). On the corvette program- agement service were pleted by April 2003. me in Germany a very substantial achieved as planned. The 1st debtors course took cabling problem was encountered A revenue manager has place over the period 3 to 14 which has since been successfully been appointed. A problem March 2003 at the Edu- resolved. On the light utility heli- relating to delays of payment cation, Training and Devel- copter a few interim milestone shifts documentation through the opment (ETD) Centre. were unavoidable, but the ultimate Support Bases to the pay- delivery schedule of the helicopters ment sections is still being A database for security clearance will not be adversely affected. experienced. per post on the FMS has been cre- The remuneration adminis- ated. Furthermore, the strengthening of tration service was achieved An inter-departmental loss preven- the local currency resulted in some as planned. tion system was compiled and the exchange rate savings on all the A cost-effective finance support DOD plan will be derived from this. SDP’s. Some of these savings will service, a compliance service direc- be utilised to invest in additional torate was established, but has not DEPARTMENTAL training of crew members and sup- yet been fully staffed. ACQUISITION AND port staff in pursuance of transfor- PROCUREMENT mation objectives. As far as the SERVICE DELIVERY other programmes were concerned, IMPROVEMENT ANNUAL REVIEW substantial payment delays were experienced on the C130 aircraft Enhancement of the current budget- FY 2002/03 was characterised as a programme of the SA Air Force
42 Department of Defence Chapter 4
(SAAF) contracted in the United Furthermore, the setting up of a Successful operational test Kingdom and the Ground Based Air new DOD procurement regime is and evaluation (OT&E) was Defence System of the SA Army envisaged, in compliance with done on the following: contracted with Denel (force Government procurement reform Automatic grenade majeure). initiatives. A lot of preparatory work launcher.
has already been performed Olifant MK1B main battle As far as the SDP are concerned, towards this objective. tank. approximately 24 per cent of the Tank transporter. estimated total of Rb52,8 has been SA ARMY ACQUISITION expended to date. This total Several requirements for future requirement of Rb52,8 should, how- SA Army Acquisition continued to capabilities were registered as capi- ever, be substantially reduced when engage in a number of smaller proj- tal projects, viz: new multi-year forward forecasting ects that were envisaged to Logistical supply support of the Rand exchange rate perform- enhance the Army's capability. At systems (cargo and fuel ance becomes available from the same time it is in the process of handling), including a new National Treasury. upgrading some of the Army's main vehicle which will eventually equipment. New additions to the replace the SAMIL 100 vehi- Contracted project deliverables from Army's capability are as follows: cle. both local and overseas suppliers Deeper level logistical vehi- were generally speaking, reason- Rapid Deployment cles. able. However, there is some Logistical Vehicle (RDLV). Upgrade of additional scope for improvement. With the The production and delivery Casspirs. ever-increasing globalisation of the of the first 75 vehicles were Upgrade of the GV6 self-pro- local defence-related industry, a successful and another 31 pelled artillery systems. tendency seems to be emerging vehicles will be delivered in New generation light artillery where local industry favours contin- the latter part of 2003. capability. ued performance against offshore- Ground Based Air Defence New generation anti-armour contracted timescales to the detri- System (GBADS). An order capability. ment of DOD obligations. for the delivery of the local New generation indirect fire warning segment of the capability for the infantry. The Acquisition Division, in conjunc- GBADS was placed and the tion with Armscor, will endeavour to procurement of this phase The main challenge for Army increase the efficiency of industrial will now commence. Acquisition is the shortage of capital output in order to shorten the time- Artillery Target funds allocated to satisfy the total scales within which to field the more Engagement System needs of the Army Acquisition pro- modern technology as it becomes (ATES). This project is pro- grammes, resulting in long lead available. gressing according to plan. times and limited upgrades of main The complete rewriting of the acqui- The order for the Unmanned equipment. sition policy proved to be a more Aerial Vehicle (UAV) compo- daunting task than originally envis- nent of the ATES was SA AIR FORCE ACQUISITION aged. The policy endeavoured to placed during this report alleviate all deficiencies that emerg- period. The three SA Air Force (SAAF) ed during the activities of the Joint Rapid Deployment SDP programmes are progressing Investigation Team and simultane- Reconnaissance Vehicle according to schedule. The follow- ously incorporated best practices (RDRV). This project is in ing relate to the specific projects: that become available in the local the acquisition phase and and overseas arenas of acquisition. will be commissioned in Augusta A-109 Light Utility The first draft of the new policy will 2005. Helicopter (SDP). 30 Light be available for comment by May utility helicopters are aquired 2003 and should be in force soon Progress on other Army Acquisition for the SAAF. In conjunction thereafter. projects include the following: with the main contractor, a Delivery of the upgraded project team is monitoring A challenge that will be pursued in light machine-guns. the progress of the major de- the forthcoming financial year will Delivery of the first 120 sign-engineering milestones. be to significantly improve audit upgraded Mamba MkIII vehi- The first South African air- findings on projects, in particular cles, with the upgrade of an craft has been completed those related to the SDP. additional 100 in process. and has undergone extreme
2002-2003 Annual Report 43 Chapter 4
cold flight trials in Sweden. ed to do the full engine eval- craft is due for delivery in It is currently undergoing uation programme in South 2012. flight tests in Italy. The sec- Africa, thereby adding impe- Rooivalk Attack Helicopter. ond South African aircraft is tus to their programme. A 12 Rooivalk Attack Helicop- currently on the flight line in combined Denel/SAAF ters are acquired for the Italy and the majority of the ground-crew team, including SANDF. Some of the air- initial functional acceptance two historically disadvan- craft have already been tests have been completed. taged individuals (HDIs) in delivered to the SAAF. Aircraft three to five are in the SAAF contingent of six, Retrofit activities are being various stages of assembly. received eight weeks' train- undertaken on the aircraft to The Italian prototype aircraft ing at Warton in the UK to ensure that they are all of was in South Africa during enable them to participate in the same operational base- February 2003 undergoing the trials. line. Cabinet has approved testing and evaluation under Gripen Advanced Light the funding for the final com- local conditions. Denel Fighter (SDP). 28 Gripen missioning of the aircraft to Aviation has completed in- Advanced Light Fighter air- full operational status. Chief dustrialising the manufactur- craft are aquired for the Director Acquisition and Pro- ing process in order to com- SAAF. The contract for curement is currently negoti- mence with the final assem- development and delivery of ating through the Minister of bly of the first locally assem- the aircraft for South Africa Defence with the Mininster bled aircraft. Aircraft will be was activated in April 2002. of Finance for the allocation delivered to the SAAF in The South African project of the necessary funds. order to allow for the opera- team in Sweden, in conjunc- SAAF Intercontinental VIP tional test and evaluation tion with Saab, achieved the Aircraft. An Intercontinental phase to commence during functional baseline (FBL) for VIP aircraft was acquired for April 2004. The first squad- the SAAF Gripen according the SAAF. The aircraft was ron will be equipped by to schedule at the end of delivered to the SAAF in January 2005. 2002. The detail design pha- October 2002, completed the Hawk Lead-in Fighter se is now under way. Initial operational test and evalua- Trainer (SDP). 24 Hawk assembly of various parts tion phase and was declared Lead-in Fighter Trainer air- and components for the first operational in January 2003. craft are acquired for the SA Gripen will start in the The aircraft has been used SAAF. The acquisition of latter half of 2003, with the on numerous flights to date. the 24 Hawk Lead-in Fighter first flight due in Sweden in C130 Upgrade. The SAAF's Trainer aircraft is progress- November 2005. Saab/BAE C130 Medium Transport air- ing according to schedule, are well ahead of their De- craft are being upgraded. with the first aircraft com- partment Investment Pro- Three of the nine aircraft plete and production having gramme (DIP) commitments have been completed and commenced on a further 12 to date. The skills and tech- delivered to the SAAF. The aircraft. The first SAAF air- nology transfer programme fourth aircraft is due for com- craft is due for delivery in is advancing on schedule, pletion in May 2003, with the March 2005, with the final and has resulted in the final aircraft due for comple- aircraft due in February establishment of the Design tion in October 2004. 2006. The British Aero- and Development Centre at Maritime Helicopters. space Hawk New Demon- Denel Aviation. Fuselage 4 Maritime helicopters are strator Aircraft (HNDA) test sections and communication acquired for the SAAF. and evaluation aircraft is cur- system components are cur- Ministerial approval has rently at the SAAF Test rently being delivered to been received for the pro- Flight and Development Saab from South Africa for curement of four Maritime Centre undergoing extensive the Swedish Air Force's lat- Helicopters for the SAAF for testing of the engine. est batch of Gripen aircraft. operational deployment on Having recognised the ability The first dual-seater aircraft the SA Navy Corvettes. of local industry to assist in is due to arrive in South Contract negotiations will this test programme and the Africa for test flights in June commence shortly. availability of South African 2006 and is scheduled for New Generation testing facilities, British Aero- delivery to the SAAF in Nov- Communications. The dev- space Systems have decid- ember 2007. The final air- elopment of a secure high
44 Department of Defence Chapter 4
frequency airborne radio, as integrated test bed of the minesweepers has been- well as world-leading secure combat suite, 80 per cent of completed. This project will very high/ ultra high frequen- the components have been be closed after receipt of the cy airborne and ground- accepted and integrated. final audit report. based radios, has been suc- The logistic engineering Acquisition of Workboats. cessfully completed by local effort has been completed. The acquisition of six 8- industry. This equipment is All on-board and depot ves- metre workboats for the SA being fitted to all the new air- sel spares were procured. Navy's combat support ships craft being procured and will Platform training for SAS is progressing well. The first form the basis of an advanc- AMATOLA has been com- boat will be delivered in April ed secure communications pleted. Owing to the delays 2003 and the last in June capability within the SANDF. experienced, some retraining 2003; whereafter a closure at the contractor's cost will audit will be initiated. SA NAVY ACQUISITION take place in August 2003. Strike Craft Systems' Type 209 Submarine Logistic Supportability The SDP has dominated the activi- Acquisition Project. The Project. Some operational ties of the Naval Acquisition project teams for the three strike craft are currently fitted Directorate during FY 2002/03. The new Type 209 submarine with all but one of the new Directorate is pleased to report that projects are now well estab- systems acquired under this the acquisition of the Type MEKO® lished in their respective project. The scheduled A-200 (SAN) patrol corvettes and project offices in Kiel and completion date for this proj- Type 209 submarines has created Emden. Production of the ect is March 2004, when the the opportunity for a strong profes- hull for the first submarine is last element of this umbrella sional relationship to develop nearing completion, after project will have been between the South African and which it will be outfitted. accepted and integrated into German navies. Additionally, the Welding of the hull sections the existing combat systems. crews have become proficient in the for the second submarine is DAPHNÉ Class Submarine operation of the vessels' on-board progressing well and the Combat System systems, thereby exploiting an welding of the ring-frames Supportability Project. opportunity to transfer sophisticated for the third submarine has The combat system support- technology to the SANDF. commenced. Each subma- ability project for the rine will be manned by fully DAPHNÉ Class submarines' Type MEKO® A-200 (SAN) trained Navy personnel and combat system has been Patrol Corvette Acquisition undergo sea acceptance completed and delivered to Project. The first two ves- prior to leaving for South the SA Navy. The project sels, SAS AMATOLA and Africa. The first submarine will be closed upon receipt of SAS ISANDLWANA were is expected to arrive in the the final audit report. christened and launched in second quarter of 2005, fol- June and December 2002, lowed by the second and Challenges. Representivity respectively. During this third submarines in early remains the main challenge for the period it became apparent 2006 and 2007, respectively. Naval Acquisition Directorate. This that, as a result of defective The submarine project is still important matter has been taken up control cabling, there would on schedule as planned. with the human resources pool be a nine-month delay in Acquisition of Underwater manager and a medium-term plan terms of the vessel delivery Ranges. The staff require- has been established in order to schedule. The construction ment for a system to meas- meet the representivity require- of SAS AMATOLA was, ure and manage underwater ments. Additionally, a strong effort however, completed, and acoustic and magnetic sig- is being made to create opportuni- she successfully completed natures of vessels was ties for HDI’s to be exposed to the the contractor's sea trials. approved in March 2003. new technologies that are being SAS ISANDLWANA has yet The project team is currently transferred with the acquisition of to complete sea trials. The preparing the Value System the new ships and submarines. construction of the primary and the Request for structures of the third and Quotations. TECHNOLOGY DEVELOPMENT fourth vessels was complet- Acquisition of Type 351 ed, and outfitting has com- Minesweepers. The acqui- Satisfy Armament Requirements. menced. In respect of the sition of the Type 351 The viability of the defence-related
2002-2003 Annual Report 45 Chapter 4
industry in support of the corvette Very High Frequency (VHF) all started their functional study air-defence capability was boosted Project is complete and is phase: with the selection of the Denel/ being closed, while the High New Generation Tactical Kentron offer to provide an air Frequency (HF) Project is Radios. defence missile to Finland. completing its final activity, Replacement of the Static Success in international marketing after which it will also be and Mobile can translate into the "economy of closed. The surface-to-air Telecommunication scale" imperative of the White communications requirement Infrastructure. Paper on Defence related industry has been included in the New generation Static EW and provides vital sustenance for new project for digital com- System. satisfying the armament require- munications equipment, as is Transportable power supply ments of the SANDF. the requirement for short- equipment. range communications. Specialised equipment for Appropriate Technologies. The Tactical Vehicle the EW systems has been consolidation of scientific support in Telecommunications delivered. the areas of landward defence at Harness Systems. The Defencetek, CSIR, and human project's delivery schedule is Challenges resources at ERGOTEK, was fully on track, although the The major challenge lies in accomplished and authorised within installations have been the approach to the imple- the Acquisition Management delayed through both mentation of the tactical System during 2002/03. These changes in vehicle upgrade command and control sys- areas are in the vanguard of the programmes as well as con- tems. shifting emphasis on military capa- tractor delays. Another challenge is the bilities brought about by the trans- Static Telecommunications implementation of the fre- formation of defence. Infrastructure. The final quency migration plan from part of this project was the 1.8 GHz band. The maintenance of foundation delayed owing to the alloca- capabilities for the next two years tion of spectrum as well as SERVICE DELIVERY (2003/04 and 2004/05), specifically delivery delays experienced IMPROVEMENT in the Defence Evaluation and Re- by the contractor. After the search Institute (DERI) - defence completion of these activities The Departmental and Procurement science and engineering manpow- the project will also be Division will continue to improve er-domain, was secured during closed. service delivery to its clients, inter 02/03. Adaptation of this high-level Early Warning (EW) alia through the following: manpower to the momentous Systems. The tactical sys- Managing and acting as a changes impacting on defence tems were successfully nodal point for the SANDF forces internationally, and the delivered and the final instal- Capital Acquisition Master SANDF in particular, requires care- lation of specialised equip- Plan and all related ful co-ordination and implementa- ment in the static system is activities. tion. The involvement of the De- progressing according to Ensuring that multi-year partment of Science and Techno- plan. adjustments to the master logy was solicited in early 2003. Cryptography Equipment. plan, that is project schedul- This project is progressing ing and financial allocation, COMMON WEAPON SYSTEMS according to plan. are done in accordance with The common weapon systems Unique South African project prioritisation as deter- acquisition conducted projects relat- Identification Systems. mined by Chief Joint ing to Command and Management After some delays this proj- Operations and as approved Information (CMI) and Special ect obtained approval and by the Military Council and Forces product systems, and contracts for the delivery of the PDSC. included activities on a large num- components for integration in Ensuring that in-year adjust- ber of smaller projects. Four signifi- the SDPs were closed. ments to individual project cant new projects were approved at Progress is according to financial allocations due to the end of 2002. plan. performance and cash-flow deficiencies are done without Project Related Progress. Highlights essentially affecting the proj- Tactical Radios and Approval has been obtained for the ect multi-year ceiling authori- Related Equipment. The following new projects, which have sation.
46 Department of Defence Chapter 4
Striving to minimise adverse On Site Travel Agent Office. An DEFENCE INSPECTORATE audit reports as well as neg- On Site Travel Agent Office has ative feedback from the been established at the Central Pro- ANNUAL REVIEW defence industry and other curement Service Centre (CPSC) in Government departments. Thaba Tshwane (Pretoria) with The Head of Department issued an Striving to maximise the great success. The successful pay- instruction to the Inspector General operational capability of the ment of invoices has increased (IG) DOD to realign his/her function- SANDF within the con- drastically. al activities in accordance with the straints by the continued needs of the PFMA and Treasury early delivery of capable Computerised Procurement Regulations. The outcome thereof weapon systems. was that the roles of Directorate System (PROQURE). A new Reducing the impact of Inspections and Directorate Internal Treasury approved computerised exchange rate fluctuations Audit were redefined, and two new procurement system (PROQURE) by appropriate scheduling directorates were functionally was successfully installed at the and contracting of DOD renamed and organised as the CPSC in Thaba Tshwane in May requirements. Directorate Performance Audit and Maximising the contracting 2002. This procurement program Directorate Regulatory Audit. of Small, Medium and Micro has increased security of the adjudi- Enterprises (SMMEs) in cation process and enhanced the This annual report will cover the order to broaden the indus- transparency of the DOD procure- trends and tendencies against a trial base. ment process. It has also improved three-year rolling audit strategy. It lead times required for the adjudica- reports against categories of risk Procurement Administration tion of tenders and quotations. identified in the IG DOD Risk Course. In order to improve the Register and includes for the first service delivery by and the knowl- Trade World (Source Link). This time activities of the Directorate edge of the procurement officials of computerised requirement advertis- Anti-Fraud. various procurement entities within ing system installed at the CPSCs the DOD, three procurement admin- The Inspectorate had reached a 91 istration courses were presented by greatly reduces the administrative per cent staffing level at the end of a member of this Division during the lead times regarding the advertising March 2003 and has simultaneously year. 85 students successfully com- of requirements. obtained representivity marginally pleted the courses and all indicated close to the prescribed require- that they had learnt a lot through Compliance Audit. In the spirit of ments. their attendance. the PFMA, a compliance audit for Type MEKO® A-200 (SAN) Patrol It can be proudly reported that the National Treasury Workshops. Corvette Acquisition Project has IG DOD thus obtained international Workshops were attended by pro- been initiated. Lessons learned in curement officials of this Division recognition through ISO 9001: respect of the management of the and the 3 corporate entities, where- 2000 Certification. acquisition process will be imple- in staff of the National Treasury mented within the other projects. gave guidance on the application of Audit Committee. During the year the Preferential Procurement Policy under review, the DOD Audit Framework Act and the Preferential Risk Management. In compliance Committee (AC) for the DOD was Procurement Regulations when with the PFMA, the Departmental duly constituted according to the applied to tenders relating to the fol- Acquisition and Procurement Divi- PFMA. The committee consists of lowing: sion has established a Risk Regis- six members who are external to Joint ventures. ter at divisional level and is repre- the DOD, two who are independent Professional services. sented at the DOD Resource Risk members within the DOD, two who Management Subcommittee. In are ex-officio officers, the Auditor Envisaged transfer of the Office General and representatives of the addition to the risk management of the State Tender Board (OSTB) Inspectorate. Four scheduled implicit in the acquisition process, functions to the DOD. The envis- meetings were held in the 2002 cal- each project is required to manage aged transfer of the OSTB functions endar year and one special meeting and report its own risks explicitly. to the DOD is eagerly awaited. The was arranged. This is the first year A member of the Division is being DOD Standing Tender Committee that the Audit Committee approved has ensured that all processes have trained in fraud prevention in order the IG DOD's Strategic Business been put into place to address the to establish a credible fraud preven- Plan. The activities of the Audit function shift. tion plan. Committee are formally structured
2002-2003 Annual Report 47 Chapter 4
into a plan, which will allow cover- was performed during the period perceptions pertaining to age of the total spectrum of work under review. Areas of concern management in general that needs to be evaluated and identified via these inspections persist. monitored. include: Positive reports were Misuse of State Property. received where manage- International Standards With regard to board and ment implemented the Organization (ISO) 9001:2000 lodging fees, neither person- South African Excellence Certification. The Inspectorate nel nor logistic line man- Foundation (SAEF) Model. sought and successfully obtained agers took sufficient preven- The utilisation of the SAEF ISO 9001:2000 certification from the tative action with regard to Model as a management South African Bureau of Standards the misuse of State property tool to continuously (SABS). This historic first for a and the failure to collect improve and strive for DOD division has greatly improved funds payable to the State. excellence was advocated the capabilities and output of the The Human Resour-ce extensively. Units that Defence Inspectorate and Internal Services produced a DOD apply this management Audit activity in the DOD. A conse- Instruction (DODI) that par- tool enjoy the advantages quence of this achievement is that tially covers the aspects. of the programme, and the Defence Inspectorate is subject This matter was addressed since they have realised to ongoing audits by the SABS to at the Accountability that the end-users of their ensure that the quality and stan- Management Committee product or service are dards are maintained. (AMC), which convenes on a "customers", their attitude monthly basis. Chief of Joint toward customers and POLICY DEVELOPMENTS Support, who is the respon- service delivery has sible line functionary for hos- improved tremendously. No new policies were developed pitality services, has been Logistic Control. Internal during the period under review. informed of the situation. controls in the logistic envi- Management Problems. ronment are generally inade- INTERNAL AUDITS Management at unit level quate. No reliance could be does not adequately apply placed on stock verification The Directorate Performance internal control measures certificates and main ledger Audit's target for inspections, survey to ensure that basic office accounts. A case was reports and Warrant Officers' re- administration is sound. reported where the security ports was 152, of which 121 reports This leads to poor roll-call fencing surrounding the unit were completed. Performance administration, with the was found to be inadequate against plan was negatively influ- result that Chief Personnel and stores-stores were not enced by the preparation for ISO Payments is notified late fenced off, whilst the unit 9001:2000 Certification. However, of deceased members or carries expensive strategic this led to a quantum improvement members that are absent stock items that must be in the quality of the Directorate's without leave (AWOL), operationally ready at any reports. which is largely the reason given time. It was, however, Directorate Regulatory Audit had for irrecoverable depart- reported that weapons and set a target of 479 audits. Total mental debts. Linked to ammunition are well secured audit reports delivered were 576 the maladministration of at inspected units. reports. Performance against plan the roll-call administration, DOD Projects. The internal was negatively influenced by the irregularities were found in controls with regard to proj- staffing levels (36 per cent vacant) the Inland Accommodation ects are, in general, unac- and the preparation for ISO Expenditure (IAE). ceptable. The main trend is 9001:2000. Closing down audits A failure to optimise the the absence of approval were dealt with as a priority, with utilisation of resources as documentation pertaining to the result that most of the audits a result of inappropriate the projects. Chief of were conducted in this field to the management practices Acquisitions and detriment of management audit has become visible in the Procurement should put reports. following examples: the measures in place to Internet Policy is not being address the issue of non- INSPECTIONS implemented, file muster- compliance, as well as to ing is not carried out and assure the Secretary for A wide-ranging scope of inspections negative Defence and Chief of the
48 Department of Defence Chapter 4
SANDF that no unauthorised highest level since 2000. contrary is experienced, expenditure will be incurred Transformation. Just over such report information is by the DOD. 50 per cent of the respon- used effectively to improve Strategic control risks identi- dents of the total sample the service to clients. fied: indicated that transformation Filling of vacant posts was
The use of contractors and was progressing very expedited and this will fur- consultants are not well/well/reasonably well. ther improve the audit cover- exposed to sufficient Respondents reacted rela- age during the next financial control. tively negatively to integra- year. The development of logis- tion, rationalisation, fairness An effort was launched to tic information systems is in the execution of affirma- enhance the quality of the hampered by a lack of pol- tive action, cuts in the Departmental Internal Audit icy guidance. Defence Force budget, function in pursuit of both
Detention quarters within restructuring of the DOD/ superior performance deliv- the DOD are inadequately SANDF, the way gender ery and good governance. managed. equality is applied and the To this end an ISO Fitness Levels. Traditional inception of the Defence Certification (9001:2000) physical fitness training and Secretariat. The majority of was attained towards the fitness tests are maintained. the sample reacted positively end of 2002. This brought However, there is a lack of to their adaptation to new the Defence Inspectorate on policy to regulate fitness lev- circumstances in the DOD. a par internationally with els in the SANDF. The most dominant prob- regard to processes and pro- Use of the Reserve Force. lems that the sample identi- cedures to be documented There are insufficient direc- fied for the transformed DOD and delivery of production. tives with regard to the utili- are loss of skilled personnel, The above-mentioned will sation and maintenance of racism, application/enforce- result in a reduction in costs the Reserve Force. ment of discipline, differ- in relation to improvement of Small Arms. The develop- ences in military culture and services provided to ment, industrialisation and perceived preferential treat- Services /Divisions and manufacturing of small arms ment of certain cultural lower levels. in the SANDF/DOD are ham- groups. Objectives. The core objectives of pered by insufficient direc- Communication Media. the Inspectorate were as follows: tives. The majority of the survey To ensure the verification of Relations within the DOD. participants reported posi- management information. A high percentage of the tively on the effectiveness of This was done by means of sample indicated that rela- the MASIBAMBISANE audits and inspections that tionships between members HIV/AIDS Industrial Theatre were conducted over eleven of the different population production as a medium of identified risk areas. Nine of groups are sometimes tense, communication, as well as to the eleven risk areas were due to misperceptions ema- its perceived impact on reported on. nating from pre-1994 racial members/personnel of the To ensure the availability and military training back- DOD. and integrity of appropriate grounds. resources to enable the Peace-support Operations. SERVICE DELIVERY Inspectorate's output. This The majority of the sample IMPROVEMENT objective was achieved agreed that it is necessary almost completely, except for the DOD/SANDF to Measures implemented to improve for the fact that, although all deploy peace-support forces. service delivery were as follows: vacant posts were staffed, A noticeable number The Effectiveness Model to not all new incumbents expressed negative feelings assist in determining the sta- accepted the appointment about the feasibility of tus of combat readiness has offered. This resulted in deploying peace-support been almost completely staffing that was not fully forces. The percentage of implemented. completed. the total sample that claimed Evaluation reports received To ensure that all members that they would volunteer to from clients regarding audit of the Inspectorate enjoy participate in peace-support services reflect positively on equal opportunities and fair missions has risen to its the situation. Where the labour practices. This objec-
2002-2003 Annual Report 49 Chapter 4
tive was applied throughout The following challenges were The undermentioned DODIs were the Inspectorate's activities, experienced: either promulgated, reviewed or whether it was with regard to Non-compliance with prepared in a draft format: merits, commendations, pro- Government imperatives. Fast-tracking Policy (promul- motions or staffing. namely outdated regulatory gated). To fully develop the internal framework, e.g. the White DOD EO & AA Policy as processes of the Defence Paper on AA: Targets (1999) revised (promulgated). Inspectorate. All processes and attainment of represen- A draft policy was completed and procedures are docu- tivity targets in the DOD. on departmental values that mented in full. To this effect Financial constraints limit the have been identified as a an ISO Certification degree to which EOCD can sub-driver of the strategic (9001:2000) was attained by perform its core function (for- issue "Low Morale and Loss 20 November 2002. eign travel is a key compo- of Expertise". This will serve nent). as a platform for the creation EQUAL OPPORTUNITIES Changing attitudes is time of an effective corporate cul- consuming and restricts ture and currently the aware- development. ness programme and curri- ANNUAL REVIEW The Department of Labour, culum is being aligned spe- Department of Public cifically to accommodate and The Equal Opportunities Chief Service Administration, reflect the following values:
Directorate (EOCD) is charged with Public Service Commission, Professionalism the responsibility to "institutionalise Office on the Status of Human dignity equal opportunities" in the DOD. In Women in the Presidency Integrity many ways 2002 proved to be a (OSW), Office on the Status Leadership very successful year in reaching of Disabled Persons Accountability this strategic goal of the DOD. (OSDP), Parliamentary Loyalty
Committee and the EO & AA Patriotism The Directorate Equal Opportunities Advisory Board are crossing (EO) Policy and Plans had a fruitful command and control lines Draft DOD Policy on Sexual year in the execution of the EOCD's within the DOD. Orientation. mission and that of the DOD's Attainment of representivity Draft DOD Policy on strategic goals. Many EO related targets within DOD. Violence against Women & policies were promulgated, assis- Commitment by manage- Children. tance was given by means of ment regarding the imple- DOD's Policy Guidelines on advice and the presence of EO per- mentation of the policy to the the Prevention and sonnel at various forums was lowest level. Elimination of Unfair significant. Discrimination towards POLICY DEVELOPMENT People with Disabilities (promulgated). Various aspects of the DOD were The following policies have been influenced. Affirmative Action (AA) developed, annulled and autho- RESEARCH issues that were monitored through rised: Parliament, the Council on Defence, The Pregnancy Policy has The fifth annual EO and AA the PDSC and the EO Advisory been developed and is in the survey was conducted by Board, gender issues were main- process of promulgation. the IG DOD Effect Analysis streamed and the DOD Disability The Policy on Fast Tracking. Section in 2002. Forum provided a useful platform, The Policy on DOD Shared Gender-Integration Research not only to discuss the plight of our Values. forms part of an ongoing disabled, but to put in place action The Sexual Harassment research project on gender plans to accommodate these indi- Policy was promulgated and integration. viduals in our organisation. distributed. The perceptions of members and employees in respect of The past year also saw the imple- OUTPUTS racism in their units/bases mentation of an evaluation instru- are continually researched in ment and evaluation teams in order The following were outputs of conjunction with Section to monitor the implementation of the CDEO during the period under Effect Analysis by means of EO and AA policy within the DOD. review: focus group research.
50 Department of Defence Chapter 4
EQUAL OPPORTUNITY baan (3 posts) and Simon's and action plans developed DEVELOPMENT Town (2 posts). In Simon's according to plan. Owing to Town the large number of a continual change in per- EO and AA policy states that all labour related issues are an sonnel, corrective actions members and employees in the added burden for the under- have been hampered in this DOD shall periodically undergo staffed office. Owing to per- area as personnel have to mandatory training in EO and AA. sonnel problems the Port be trained before they can It also stipulates that all officers Elizabeth and Simon's Town commence with their tasks. commanding and managers should areas are the furthest behind Posts have recently been- attend special training programmes with the implementation of filled in Polokwane, but there on EO and AA. For this purpose a the EO policies by means of are still vacant posts at range of EO & AA seminars are briefings. Nelspruit and Hoedspruit. presented and DOD personnel The Central Region exposed to them regularly. (including Bloemfontein, General. There has been progress Kimberley, Kroonstad, within the EO field in all the areas AFFIRMATIVE ACTION Lohatlha and Potchef- with the completion of the evalua- stroom). These units, tions and the implementation of The South African Defence Review, according to plan, have been action plans, based on the areas of 1998, Chapter 10, gives the DOD evaluated and action plans concern identified through the eval- baseline targets regarding affirma- to address the problem uation reports. All corrective actions tive action. areas are in progress. Of are slow because the MSF teams main concern is the are small and have to service all the While progress in terms of racial Kroonstad area where the units within their GSB, as well as representivity has been noted, on MSF has not been trained manage the labour service and sep- both the regular force and PSAP and there is a vacant offi- arations related work. component, an area of concern is cer’s post. Bloemfontein and the rank/level, gender and disability Lohatlha have vacant clerical Many requests and criticism was representivity. posts. received in 2002 concerning the Gauteng Region (including fact that the evaluations did not give INSPECTIONS GSBs' Doornkop, Garrison, enough detailed information for the Thaba Tshwane, Waterkloof, use of officers commanding (OCs). The Evaluation Section has evaluat- Wonderboom, Johannesburg This has been corrected by the ed the implementation of equal op- and MOD). Evaluations are implementation of the Statistical portunities throughout the DOD, behind in this area owing to Product Service Solutions (SPSS) which has been divided into 5 geo- the absence of a coordinator Programme, which gives a large graphical regions. The manage- at EOCD. This post has now amount of detailed information to ment, evaluation and implementa- been filled and planning has the users, making it easy to identify tion of equal opportunities will be been undertaken to rectify areas of concern within the individ- discussed per region, each of which this situation. ual units. consists of a number of general Eastern Region (GSBs support bases (GSBs). The find- Durban and Ladysmith). The SPSS Programme has accu- ings in these geographical areas MSFs have been implement- mulated sufficient data to enable are: ing action plans within this the section to produce strategic Western and Eastern Cape region and are utilised by reports on the implementation of the (this included GSBs Port management and members. EO Policy within the DOD during Elizabeth, Oudtshoorn, All areas have been evaluat- 2003. Bredasdorp, Simon's Town ed and information briefings and Langebaanweg). are being given according to GENDER Evaluations have progressed plan. The re-evaluations will well in this area except for commence during 2003 to Visit to Germany. April 24 -06 May Simon's Town where there is establish if there has been the Senior Staff Officer Gender a shortage of personnel. improvement in the areas of accompanied the Deputy Minister of The Multi-skilled Functiona- concern. Defence to Germany on the invita- ries (MSF) posts have not Far North Region (GSBs tion of the SA Ambassador to been fully staffed in Port Hoedspruit, Louis Trichardt, Germany. The aim of the visit was Elizabeth (1 post), Oudts- Nelspruit and Polokwane). to enable the participation of SA hoorn (1 post) and Lange- Units have been evaluated women in the German women's
2002-2003 Annual Report 51 Chapter 4
Table 4.1. Comparison of DOD Baseline Target
DOD STRENGTH REQUIRED BASELINE PER RACE
African White Coloured Indian TOTAL Required % 64.68% 24.35% 10.22% 0.75% 100% Status at March 2003 62% 25% 12% 1% 100%
conference that coincided with the Collaboration Committee (IDCC) posts have created fresh staffing SA independence week. Apart from meetings at the Office on the Status challenges for the Division. The the DOD women, other State of Disabled Persons in the growing commitment to international departments as well as the Presidency. This was done to peacekeeping and regional security Parliamentary women's caucus also ensure collaboration between all arrangements will extend the sent delegations to this conference. spheres of government on reposi- SANDF's ability to provide military The DOD benefited by means of tioning disability as a development forces for these operations. exposure to the work done by the issue in South Africa, Africa and women of Germany. other developing parts of the world. STRATEGY AND PLANNING OFFICE DISABILITY SERVICE DELIVERY IMPROVE- The establishment of a crisis man- MENT agement centre for the Chief of the The DOD, in terms of the White SANDF is still in process. Consi- Paper on an Integrated National The application of sound manage- derable progress has been made, Disability Strategy, is committed to ment principles is adhered to for but a full operational status will only providing people with disabilities assurance of acceptable improve- be achieved in FY 2003/04. with information in forms accessible ment of service delivery. to them. The DOD considers The military strategy was success- access to communication as an CORPORATE STAFF fully promulgated within the integral part of the equalisation of DIVISION Department and communicated up opportunities for people with com- to Cabinet Level. The force design munication disabilities, such as deaf ANNUAL REVIEW and structure investigations were people, people with speech difficul- initiated to determine the most ties and people with visual disabili- The Corporate Staff Division has effective, efficient, and economic ties. A Beginners and Intermediate taken the Strategic Planning structure that will support the Sign Language Course was Process to heart, and has shown its required force design. embarked upon during June and determination to ensure the suc- July 2002 at the University of the cessful implementation and mainte- Measures taken to improve (align Witwatersrand. nance of the process. and refine) the Strategic Planning Process continued and yielded pos- Five disability forums were coordi- The most common challenge facing itive results including the develop- nated and held every second month the Division is the filling of posts ment and implementation of a to facilitate the process of fair with skilled and/or experienced strategic planning tool to improve acknowledgement of the rights of staff. This issue is being viewed as strategic control. people with disabilities at all levels a short-term problem which is being in the DOD and to determine the addressed by the training and expe- DEFENCE CORPORATE gap and required change. The riential exposure of a new genera- COMMUNICATION Disability Forum ensures the pro- tion of SANDF members. Use is motion, protection, development also being made of Reserve Force Defence Corporate Communication and attainment of equal opportuni- members with appropriate skills and (DCC) succeeded in reaching most ties for people with disabilities in the experience to assist with skills of its objectives and outputs accord- DOD. shortages. ing to plan in FY 2002/03, despite being understaffed, by means of The Disability Equity Section partici- New international commitments and harder and smarter work by all pated in three Interdepartmental the additional staffing of overseas members. Staffing appropriately
52 Department of Defence Chapter 4
skilled and knowledgeable person- Reservists and a severe shortage of is still not in line with the targets set nel into vital posts has been a con- leader group developed, due chiefly in the Defence Review due to insuf- stant challenge. A major effort has to insufficient flow of trained person- ficient personnel flow. The meas- been put into (mostly outsourced nel from the Initial Military Service ure of representivity achieved is professional) training and develop- (IMS) system. largely due to the initiatives of the ment of existing and newly appoint- units themselves who have recruit- ed staff members. A major internal Despite these challenges, reserve ed previously untrained persons training effort will be embarked on units have succeeded in recruiting locally. Gender representivity is, in the future, not only of its own members locally from previously however satisfactory with 26 per staff, but also of all corporate com- disadvantaged communities and cent of Reserve Force members munication functionaries in the almost 40 per cent of the Reserve being female, significantly higher DOD. Force are now African, Coloured than the Regular Force. and Asian persons who have re- MILITARY LEGAL ceived at least basic training and The SA Air Force and the SA Navy SERVICES limited functional training. have small Reserve Force elements consisting mainly of specialist per- The Reserve Force contingent is The capability of the Conventional sonnel in their respective muster- being developed to act as a force Reserve though has declined whilst ings. The Military Health Service multiplier to alleviate the effect of the ATR (previously known as the makes good use of their Reserve the loss of expertise and experi- Commandos) has been able to con- Force medical personnel to supple- enced staff in the Military Legal tribute to a relatively stable situa- ment their capacity and the Military Services Division. tion, largely due to their employ- Legal Service has significantly ment in support of the SA Police increased its capacity by recruiting RESERVE FORCE Service (SAPS). legally qualified persons into the DIVISION Reserve Force as military judges, PERSONNEL MATTERS prosecutors and defending officers. ANNUAL REVIEW The cost of the Regular Force has TRAINING AND DEPLOYMENT The Reserve Force is acknowl- been the chief reason for the lack of edged in the Constitution and the resources available to the Reserve The ATR has continued to supply White Paper on Defence as a Force. The limited budget for the personnel in support of the SAPS in national asset and an integral part IMS system has resulted in small crime-combating operations and the of the SANDF's force design and intakes and most of these members Rural Safety Plan. The ATR con- the chief means to provide a suffi- have moved into the Regular Force tributed in excess of 400 000 man ciently large defence capability at after their training. days in this role in FY 2002/03. an affordable cost. However, government decision to The new Military Skills Develop- phase out the Commandos has had The now Reserve Force was for- ment System, which was launched a significant effect on the morale of merly known as the Part- time in January 2003 as part of the ATR members. Component, whereas the then Full SANDF's Human Resource time Component is now referred to Strategy 2010, has also been limit- as the Regular Force. The previous- ed by the lack of resources and will Postal service to SANDF elements ly all-white, largely conscript force is also not significantly affect the flow deployed externally has continued now an all-volunteer force and of trained personnel to the Reserve to be supplied by 11 Field Post many new recruits from all sectors Force unless intakes can be Office, a Reserve Force unit of the of the population have been induct- increased substantially. CMIS Formation. Approximately ed into the Reserve Force. The SA one and a half tons of post and Army has the largest component A project to encourage ex-Regular parcels per month are handled by with 96 per cent of the total Force members to join the Reserve this unit. Reserve Force, made up of some Force is currently underway to try to 51 000 Army Territorial Reserve address the leader group shortage. SA Air Force Reserve Force Squad- (ATR) members and 7 000 Army However, many of these persons rons supply light air transport serv- Conventional Reserves. are in the more senior rank groups ices to the DOD, albeit this is limit- and this will not solve the shortage ed by available funds. The SA Air Since budgetary constraints were in the junior leader ranks. Force Reserve Force pool is also imposed in 1997, severe limitations employed on a regular basis to sup- on the ability to recruit and train Representivity in the Reserve Force plement aircrew and other specialist
2002-2003 Annual Report 53 Chapter 4
functions in SA Air Force transport Directorate Army Reserves A plan for specialist training squadrons and headquarters. and the appointment of per- of reserve force members in sonnel in the posts. battlefield medical support. The CMI and DOD Logistics The appointment of a Senior Formations have Reserve Force Staff Officer Reserves in all Chief of Joint Support units earmarked for the combat the Army formations as advi- CMIS Formation. support role. These are mainly sors to the GOC wrt the The revamping of Reserve units in the signals, logistics and renewal and management of Force structures according technical support fields. Most of the Reserve Force. to the requirements of the these units suffer the same chal- The approval and launching SANDF force design. lenges experienced by the Army of plans to identify and re- The updating of the Conventional Reserve in terms of cruit ex-Regular Force mem- Directorate Reserves and funding and the lack of conventional bers and former Non-Statu- appointment of personnel. training exercises. tory Force leader elements Limited staffing of leader into the Reserve Force. group posts and technical The Army Conventional Reserve The allocation of a "survival" personnel in Reserve has had limited training for several budget to all Reserve Force units. years although the smaller ele- units to enable training and Military Police Agency ments such as the Artillery and administration to take place Recruiting of 87 new mem- Armour Corps have, due to the at unit level. bers. The training of these smaller numbers required, been members will hopefully able to incorporate Reserve Force SA Air Force take place in FY 2003/04 elements into Regular Force train- The appointment of a depending on funds being ing. Due to the budget constraints, Director Reserves. available. no formation-level exercise has The establishment of a plan been held since 1996. The conven- for the use against repay- CONCLUSION tional reserve as a whole is there- ment of the Reserve fore currently not adequately squadrons. The establishment of Project combat ready. Approval of a concept to PHOENIX has had a very positive establish a Reserve Foce effect in terms of raising awareness PROJECT PHOENIX combat capability. of the essential part, which the A draft plan to re-establish a Reserve Force must play in the Due to the overall state of the Re- Reserve Tactical Airfield design of the SANDF and the capa- serve Force, the SANDF launched unit. bility to expand to a wartime force. Project PHOENIX in September The role of the Reserve Force as a 2002 with the aim of establishing SA Navy major component of South Africa's plans for the renewal and transfor- The appointment of a new deterrent capability has been rein- mation of the Reserve Force. The Director Reserves. forced. Reserve Force Division is responsi- A plan for the complete ble for co-ordinating and monitoring restructuring of the Naval The approval of a draft Doctrinal the compilation and execution of Reserve and the re-alloca- Framework for the Reserve Force these plans by the Services and tion of current reserve force has also served to direct thinking Divisions that command Reserve members to ships together and planning on a structured and Force units. with the deactivating of the goal-orientated basis with desired current administrative end-states in mind. In line with the Military Strategy, Reserve Force units. which envisages a complete with- The critical issues remain, however, drawal of the SANDF from support Military Health Service the following: to the SAPS by 2009, the focus of Appointment of Reserve staff Adequate funding of the Project PHOENIX is directed mainly officers in the Directorate Reserve Force, which will towards the conventional reserve. Reserves. remain a challenge under Since the establishment of Project The establishment of a struc- the current budget allocation PHOENIX, the following has been ture for reserve combat sup- and the current size of the achieved: port and staff elements. Regular Force. The strengthening of reserve Staffing of the Reserve SA Army infrastructure posts and Force with adequately The restructuring of the appointments. trained personnel for the
54 Department of Defence Chapter 4
same reasons as stated ence in the field of defence diplo- tries. Nine accreditation/de- above. macy and military foreign relations. accreditation ceremonies The revisiting of legislation At the same time the lack of co- were held. Twenty two differ- with a view to enabling the ordination often does not advance a ent events were organised call-up of the Reserve Force professional image of the DOD and for the MA and Advisor in peacetime is an issue, SANDF. Corps to expose them to the which is becoming increas- Foreign dignitaries handled SANDF and the RSA, to ingly relevant given the submissions for 394 visits ensure that they are correct- SANDF's commitment to abroad by DOD personnel, ly informed and to enable peace support operations. and for 180 official visits to them to identify possible the RSA. Eleven ministerial areas of cooperation be- CHAPLAIN GENERAL visits were arranged interna- tween the SANDF and other tionally, and three visits na- foreign armed forces. The The Division set itself a number of tionally. Ten visits were ar- MA and Advisor Corps strategic goals over a period of five ranged for the Deputy Minis- Guide has been revised and years (1999-2003). This year saw ter internationally, and she a year programme has been the reaching of most of the goals hosted four national counter- issued to enhance service whilst good progress with the others part visits. One inbound delivery to the members of were made. courtesy visit and one inter- the MA and Advisor Corps. national visit were arranged Foreign military students DEFENCE FOREIGN for the Secretary for Defen- attended courses in SANDF RELATIONS ce. The Chief of the SANDF training institutions during had five visits internationally, the year (this includes cours- Constant changes and develop- and hosted one locally. es of a year to only a few ments in the arena of international 1969 official and diplomatic weeks' duration). See Table affairs and defence diplomacy affect passports were issued; 4.2 for details. the execution of Defence Foreign 1 580 visas processed and Relations (DFR) responsibilities and 255 air tickets were issued. Military Attachés. The SANDF how it plans and co-ordinates its Vehicle hire reservations and has 26 MAs deployed in twenty-two functions in relation to the needs of hotel reservations were (22) countries. These MAs' are the SANDF and the DOD. The con- made for some of these vis- accredited to 33 countries. In terms duct of SANDF and DOD activities its and courier letters were of the Force Employment Strategy influencing the defence foreign rela- issued. and the Military Council decisions of tions environment are not integrated There are 54 military atta- 3 March 2003, more MA offices are and co-ordinated. This impacts chés (MAs) accredited to the to be opened from FY 2003/04 to directly on the ability to exert influ- RSA from 41 different coun- FY 2005/06. The planning and
Table 4.2. Foreign Students on Senior Courses
No of Course Attended Countries of Origin Students 7 Executive National Security Programme 05/02 Namibia, Kenya, Nigeria, USA, Egypt, (Jan-Jun 02) Botswana, Zambia 4 Executive National Security Programme 06/02 Nigeria, Pakistan, Tanzania, Zimbabwe (Jul-Nov 02) 5 Executive National Security Programme 07/03 Botswana, Malawi, Pakistan, UK, Zimbabwe (Jan- Jun 03) 4 Joint Senior Command and Staff Course-2002 Pakistan, India, Botswana, Zimbabwe 7 Joint Senior Command and Staff Course-2003 Botswana, Rwanda, Kenya, Egypt, Malawi, Tanzania, Nigeria
2002-2003 Annual Report 55 Chapter 7
Figure 4.1. SANDF Military Attaché Deployments
preparation for this is in process. abroad with military and security needs to be promulgated as However, insufficient funds prevent advice. See Figure 4.1. for SANDF a DOD Instruction. these offices from functioning to MA Deployments. Corporate communication their full potential. MAs monitor policy development is an geopolitical and military develop- POLICY DEVELOPMENT area of great need. ments abroad and provide early All existing standing work warnings on potential conflicts The following policy developments procedures and instructions abroad. Standard operating proce- occurred during the year: were updated and converted dures are being developed to A draft policy for the practice into divisional standing ensure that MAs deployed abroad of Media Liaison in the DOD, orders. Five new standing direct the correct information at the including guidelines for crisis order's were issued during correct time to the correct place. communication relating the reporting period. MAs assist Heads of Mission specifically to the media, still
56 Department of Defence Chapter 5
LANDWARD DEFENCE
ANNUAL REVIEW
The past financial year has been a a battalion to the Democratic challenging year for the SA Army Republic of Congo (DRC). owing to the limited budget versus Although these operations demand the ever-increasing costs for the a large number of troops, the SA sustainment of Prime Mission Army is always ready and willing to Equipment (PME), facilities and per- support the Government's initiative sonnel. to have lasting peace in the region.
Throughout the year the SA Army Force preparation has been taking continued to provide troops to Chief place quite well despite limited Joint Operations (C J Ops) for em- funds. The commencement of ployment during operations. Inter- training of the Military Skills nal deployments continue to require Development System (MSDS) at a substantial number of troops in both the SA Army Gymnasium for order to assist the South African the Leader Group and 3 SA Infantry Police Service Battalion for the (SAPS) in their rest of the troops fight against earmarked for crime and other INTRODUCTION other Services related issues. and Divisions The SA Army marks the begin- also provided troops during the ning of the rejuvenation of the SA launching of the African Union (AU), Army. The commencement of the the World Summit on Sustainable MSDS is much appreciated, as it Development (WSSD) and the will bring in new blood for the age- Cricket World Cup. The success of ing SA Army. It is, however, impor- these events cannot be attributed to tant that an exit mechanism be the SA Army only but its participa- implemented in order to downsize tion did make the difference. and right-size the Army to an ac- ceptable level. Currently the SA In external operations the SA Army Army spends almost 71 per cent on troops continue to make a differ- personnel related issues and this ence in Burundi, and all indications cuts into the operating funds need- are that finally peace in that country ed for the sustainment of PME and is about to prevail. Preparations training, as well as research and are afoot to increase the SA Army development. The current intakes contribution in Burundi, with an will lay the foundation for the bigger additional battalion about to deploy intakes that will commence their there to reinforce the one already training in July 2003 and other sub- there. There are also plans to send sequent intakes in the following years.
2002-2003 Annual Report 57 Chapter 5
58 Department of Defence Chapter 5
For the rest of the SA Army, training ing to influence these as well. Criti- SAAO/Chief Director Army and course attendance progressed cal spares required to keep most of Force Preparation/AOT/002/ well throughout the year. As part of the PME, which is reaching its full 02/99: Policy on Develop- force preparation, Exercise IRON life cycle and will need to be re- ment and Maintenance of EAGLE was held at the Combat placed in the near future, need Policy in the SA Army, which Training Centre (CTC). This exer- urgent replenishment. included the hierarchy of cise involved other Services as well, doctrine and policy, was dis- and it was a resounding success. The slow response by the Depart- tributed for implementation. The SA Army is, however, concern- ment of Public Works (DPW) is 43 SA Army policies were ed that only one exercise of this going to cost the SA Army a sub- registered, 12 were promul- nature can be conducted each year, stantial amount of money to main- gated and another 31 are in while three are required. Drill com- tain current buildings. The SA the process of promulgation. petitions organised by the Warrant Army is currently involved in emer- Officers of the SA Army have also gency repairs only, so as to be in LANDWARD DEFENCE contributed tremendously to improv- line with the requirements of Occu- CAPABILITIES ing discipline and the standard of pational Health and Safety (OHS) drill. Leadership, Command and Act. Many buildings are falling OVERVIEW Management Principles (LCAMPS) apart and becoming uninhabitable training has been institutionalised and the SA Army does not have The SA Army force design (FD) is within the SA Army and more than enough funds to address this issue. managed at various levels of readi- 1 000 members have attended ness. The intention is that the these courses. The intention is to STRATEGIC PROFILE capabilities at lower readiness lev- extend this training to involve the els are to expand should the neces- Reserve Force members as well. Mandate. To provide prepared and sity arise. This, however, implies supported landward defence capa- that a reasonable warning time During January 2003 Chief Army bilities for the defence and protec- (three months to eight years - de- undertook a "road show" under the tion of the RSA by providing strate- pending on the present readiness auspices of Project PHOENIX to gic direction for landward defence level), together with the necessary address both the members of the and establishing, training and main- resources, will be required to up- Army Conventional and Territorial taining prepared combat elements, grade the various units from their Reserves. The road show was auxiliary services and facilities. current status to fully operational very successful and many concerns deployable entities or combat-ready and misinformation regarding the Vision. The SA Army, our people user systems. future of the Reserves were in one spirit, has the commanding addressed. Chief Army also under- presence and power of a pride of The SA Army is mandated to pre- took to involve the Reserves in all lions. We are an excellent military pare combat-ready user systems/ managerial activities within the force, forever professional and higher order user systems accord- Army Office, and Director Army ready, making a difference wherev- ing to the Force Preparedness Reserve currently attends the Army er serving South Africa. Schedule, based on the Military Command Cadre (ACC) and the Strategy as appreciated. The Force Army Council (AC) meetings on a Mission. The SA Army provides Preparedness Schedule provides regular basis. Reserve Force mem- combat-ready forces to Chief for the short- to long-term require- bers are also involved in various SANDF, whilst playing a leading ments and is based on the premise Forums like the Army Planning role in sustaining a credible, cohe- that from FY 2006/07 40 per cent of Forum (APF) and the Army sive, joint landward defence capa- the SANDF active duty members Evaluation and Budgeting bility. will be Military Skills Development Committee (AECC). The Army con- System (MSDS) or Reserve Force POLICY DEVELOPMENTS tinues to appoint new members members. The Landward Defence from the Reserve Force in the Army The following policies were promul- Programme comprises of the follow- Office gated within the SA Army: ing sub-programmes: strategic direction, infantry capability, armour Sustainment of PME and facilities The Peace Support Oper- capability, artillery capability, air has reached an acceptable level. ations curriculum was devel- defence artillery capability, engineer Most of the capabilities are ticking, oped for testing during pre- capability, operational intelligence maintaining a "core growth capabili- deployment training for units capability, support capability, gener- ty" as required by the Military that must deploy outside the al training capability, and command Strategy, but limited funds are start- RSA. and control capability.
2002-2003 Annual Report 59 Chapter 5
STRATEGIC DIRECTION SA Army. The operational However, certain individual readiness of the Army members were deployed to This sub-programme, which is exe- Territorial Reserve (ATR) Burundi and the DRC. The cuted by the Army Office, provides units will also improve. SA Army Armour Formation direction to the Landward Defence is, however, scheduled to Programme. Its output is that it ARMOUR CAPABILITY deploy in its secondary role directs, orchestrates and controls during the FY 2003/04. the SA Army in the achievement of The aim of this sub-programme is its mission and comprising the fol- to provide the Armour Capability of ARTILLERY CAPABILITY lowing: the Landward Defence Programme. Office of Chief of the Army. Its outputs were as follows: The aim of this sub-programme is Chief Directorate for Army Armour Formation to provide the Artillery Capability of Force Structure. Headquarters. the Landward Defence Programme. Chief Directorate Army Corps School. Force Preparation. Regular and Reserve Force Actual Outputs Chief Directorate Army Tank Regiments. Artillery Formation Corporate Services. Regular and Reserve Force Headquarters. SA Army Inspector General. Armoured Car Regiments. Corps School. Reserve Force Armoured Regular Force Composite INFANTRY CAPABILITY Reconnaissance Regiment. Artillery Regiment. Regular and Reserve Force Regular Force Airborne Light This sub-programme, which is exe- Tank Transport Squadrons. Artillery Battery. cuted by the Infantry Formation, Artillery Mobilisation provides the Infantry Capability of Level of Achievement Regiment. the Landward Defence Programme. The absence of a "human The Infantry Formation comprises resource feeder system", the Level of Achievement both the Regular and Reserve absence of national legisla- As a result of the military Force. tion to support Reserve strategy and the force em- Force utilisation and a limit- ployment strategy, an appro- Actual Output ed budget caused the Res- priate draft Artillery Strategy Infantry Formation erve Force not to achieve has been formulated to act Headquarters. combat-readiness goals. as baseline for the force Corps School. The Armour Formation design investigations which The following infantry battal- Reserve Force units, howev- will be approved by the ions for both Regular and er, recruited potential leader Minister of Defence for Reserve Force: group members and, in co- implementation. Motorised. operation with the School of SOMCHEM conducted an
Mechanised. Armour, presented Basic investigation into the chemi-
Parachute. Training and Basic Armour cal degradation on the
Light Infantry. Training for more than 50 155mm charge system (M50 Special Infantry Battalion. potential junior leaders. series), and the future utili- Army Territorial Reserve The SA Army Armour sation of these charges. Units (23 Platoons per day Formation reached all its for- This has led the Artillery required). mal training objectives, but Formation, Director Army Group Headquarters. could not do sufficient con- Logistics and ARMSCOR to tinuation training owing to a dispose of those charges not Level of Achievement lack of Product System Man- adhering to the international While all the units performed agement support, especially standards for the safe han- according to expectation, for the Rooikat system. The dling of ammunition. This some experienced serious only force training done was resulted in an operational challenges especially with training of 1 SA Tank Regi- gap regarding both the regard to staffing and limited ment in the secondary role, 155mm GV5 Med Towed funding. It is hoped that the in order to be ready for Gun/Howitzer Artillery Sys- introduction of the MSDS will deployment on the Lesotho tem and the 155mm GV6 alleviate this situation, as border as from April 2003. Med Sp Gun/Howitzer healthy and young soldiers No units or sub-units were Artillery System of the will be introduced into the deployed during the year. SANDF.
60 Department of Defence Chapter 5
The artillery capability is ENGINEER CAPABILITY ed and a total number of 173 already within a core growth students were trained. capability, being one com- The aim of this sub-programme is All specialised intelligence posite regiment. The to provide the Engineer Capability equipment stores, headquar- staffing, training and equip- of the Landward Defence ters and clubs were fitted ping of 4 Artillery Regiment Programme. with alarm systems, burglar have been specific focus proofing and security doors areas for the Artillery Forma- Full Outputs to safe-keep the equipment. tion during the past financial Engineer Formation year. Headquarters. SUPPORT CAPABILITY The Reserve Force capabil- Corps School. ity within the Artillery Forma- Regular and Reserve Force The aim of this sub-programme is tion is on the brink of extinc- Combat Field Engineer to provide operational level com- tion and a deliberate effort Regiments. mand and control for the Support must be launched to ensure Regular Force Engineer Capability of the Landward Defence its survival. Of the seven Support Regiment. Capability Programme. Reserve Force units, three Reserve Force Engineer units effectively stopped Parachute Field Regiment. Full Outputs functioning due to insufficient Military Printing Regiment. Support Formation personnel being available. Survey and Mapping Headquarters. A total of 17 ceremonial gun Regiment. Regular Force Maintenance salutes were conducted dur- Units. ing the period under review, Level of Achievement Regular Force Workshops. including the opening of The engineer capability is National Ceremonial Guard Parliament and the inaugura- ready for deployment at any Unit. tion of the AU. This capabili- time but there are still critical Army General Support ty was maintained by means posts that need to be staffed Bases. of an integrated approach urgently. between the Reserve Force Level of Achievement and the Regular Force units. OPERATIONAL INTELLIGENCE Staffing and DOD guidelines CAPABILITY for the operating of ASBs not AIR DEFENCE ARTILLERY yet finalised. CAPABILITY (ADA) The aim of this sub-programme is Disposal process very slow to provide the Operational as there are as yet no DOD The aim of this sub-programme is Intelligence Capability of the auction centres. to provide the ADA capability of the Landward Defence Programme. The deployment of CALMIS Landward Defence Programme. not yet complete. Full Outputs A total of 388 military funer- Actual Output Intelligence Formation als were conducted during Formation Headquarters. Headquarters. the FY 2002/03. Corps School. Corps School. 960 members completed the Regular Force Composite Regular Force Tactical apprenticeship training and ADA Regiment. Intelligence Regiment. were classified as artisans. Reserve Force Mobile ADA Reserve Force Tactical Unleaded fuel tanks were Regiments. Intelligence Regiment. erected at all Army Support Reserve Force Towed ADA Bases. Regiment. Level of Achievement Ceremonial support was pro- Regular Force Air Mobile The School of Tactical Intel- vided for Chief of the ADA Battery (no equipment). ligence reached its goal of SANDF, Freedom Day, presenting all courses as opening of Parliament and a Level of Achievement planned and had an overall variety of other activities. The ADA capability is pass rate of 95.6 per cent. Continued support was pro- equipped with trained per- The total number of students vided for units deployed in sonnel, ready to be deployed trained was 878. A success- Operation FIBRE. immediately, but the Res- ful distance-training pro- erve component may need a gramme to train Reserve longer warning period. Force members was execut-
2002-2003 Annual Report 61 Chapter 5
GENERAL TRAINING DEFENCE COMMITMENTS Seized: 7 955. CAPABILITY Stolen precious metals OPERATIONS seized: 3 744 kg. The aim of this sub-programme is Head of stock seized: 898. to provide operational level com- The SA Army provides combat- Undocumented migrants mand and control for the General ready forces to Chief Joint Oper- apprehended: 57 774 indi- Training Capability of the Landward ations on request for deployment viduals. Defence Programme. within the budget allocation. During Casualties. One soldier died during the period under review the SA these operations. Full Outputs Army commissioned forces for both Training Formation internal and external operations. Within the Region the SA Army Headquarters. For internal operations ten Regular continues to provide troops for the SA Army College. Force companies and nine Reserve Burundi peace process for VIP pro- SA Army Combat Training Force platoons were constantly tection and other Peace Support Centre. deployed on internal operations. Operations (PSOs). About 1,500 3 SAI Battalion. These deployments utilised approxi- troops have been deployed in Bu- SA Army Gymnasium. mately 1 765 troops daily, or a total rundi during the period under review of 644 225 man days. Most opera- and this number is expected to Levels of Achievement tions internally include borderline increase in the near future. Plans Provisioning and mainte- protection, support to the SAPS, are also afoot to deploy troops in nance of general training VIP protection and patrols. Of most the DRC as part of Regional sup- capability for basic, junior significance is the participation of port. These deployments support leader, voluntary military the SA Army during the inaugura- the government's initiative for peace service, formation and staff tion of the AU and the WSSD, held and development in the Region and training at training establish- in Durban and Johannesburg, promote the principles of the AU ments continued according respectively, and the Cricket World and NEPAD. The SA Army has to plan. Cup. observers in African countries like Members from other coun- Ethiopia and Eritrea. tries have also been trained The following are the results of in the training institutions of internal operations conducted con- The following is the list of opera- the SA Army and this re- stantly throughout the year all over tions that the SA Army participated flects very well on the SA the country for support to the peo- in during FY 2002/03: Army. SA Army members ple and to assist the SAPS: also attended courses over- Roadblocks: 869. CONTRIBUTION TO INTERNAL seas and have benefited Vehicle control points: 968. AND MULTINATIONAL well from this exposure. Foot patrols: 7 503. EXERCISES Vehicle patrols: 9 006. COMMAND AND CONTROL Motorcycle patrols: 358. As part of force preparation the SA CAPABILITY Equestrian patrols: 292. Army conducted and participated in Air patrols: 88. various exercises at different levels The aim of this sub-programme is Farm visits: 8 885. in order to be able to provide com- to provide the tactical level Town visits: 318. bat-ready user systems/higher- Command and Control Capability National Key point visits: order user systems to C J Ops for for Higher Order User System 220. operational deployment. Exercise (HOUS) force preparation of the Observation posts: 2824. IRON EAGLE held at the Combat Landward Defence Programme. Listening posts: 1 286. Training Centre was the only force Cordon and search: 1 036. preparation exercise conducted dur- Full Outputs ing the year. The SA Army needs 43 SA Brigade Operational results for the same to carry out at least three force Headquarters. period were as follows: preparation exercises each year for 46 SA Brigade Modern Fire arms seized: evaluating realistically its prepared- Headquarters. 1 683. ness. The SA Army is requesting Kilograms Dagga seized: that more funds be allocated to be Level of Achievement 87 968 kg. able to address this anomaly. Performance of this sub-pro- Kilograms cocaine seized: Multinational exercises were also gramme was according to 41 kg. held with other countries as indicat- plan. Mandrax/grey tablets ed in the Table 5.1.
62 Department of Defence Chapter 5
Table 5.1. Exercises (Single, Combined and Multinational)
Exercise Duration Location Description of Exercise Participating Units Losses
TANZANITE 15/02/02 - Tanzania Multi-national peace 4 SAI Battalion - Nil 22/02/02 support operations 45 members Airborne Africa 01/06/02 - Botswana Multi-national friendly 44 Parachute Regi- Nil 14/06/02 airborne competition ment - 15 members Emergency Exercise 11/07/02 Upington Humanitarian exercise 8 SAI Battalion - Nil with Airports to test response of all 86 members Company of South role players in case of Africa (ACSA) aircraft emergency RAINBOW TREK Oct/Nov 02 Richards Bay Multi-national peace Two companies, Nil support operations 121 SAI Battalion and one company of 44 Parachute Regiment LAUREL 30/10/02 - Cape Town Multi-national Pathfinder Platoon, Nil 09/11/02 amphibious disaster 44 Parachute humanitarian relief Regiment and two companies of 121 SAI Battalion GOLDEN EAGLE 31/05/02 - Bloemfontein /Combat SAAF current opera- Two companies Nil 21/06/02 Training Centre tional capability and Pathfinder Platoon, 44 Para- chute Regiment IRON EAGLE 06/09/02 - Bloemfontein /Combat Airborne operations/ 563 members of Nil 13/09/02 Training Centre emergency evacuation 44 Parachute Regi- ment, 78 Reserve Force members and 350 members of 6 SAI Battalion Pre-deployment 06/01/03 - Potchefstroom Training Peace support 2 SAI Battalion - Nil combat-ready t 31/01/03 Area operations 481, 14 SAI raining Battalion- 160 118 SAI Battalion - 169
2002-2003 Annual Report 63 Chapter 5
OUTPUTS PRODUCED FOR DOD SERVICE DELIVERY Reserve Force Rejuve- CLIENTS IMPROVEMENT nation. As part of Project PHOENIX, Chief of the Army Outputs produced for internal con- Corrective measure/measures conducted a "road show", sumption by DOD clients are shown taken to effect savings during the addressing the Army in the table below. period include the following: Combat and Territorial
Table 5.2. Outputs Produced by the SA Army for DOD Clients
Description of Service Service Recipient Results
The funded Command and Control of supported CJ Operations Achieved deployed SA Army Regular and Reserve Force units.
The management and maintenance of SA Army HR Support Achieved Regular Force, Reserve Force and PSAP Centre The provision of Ceremonial Artillery Gun Salutes. DOD/ Presidency Achieved SA Army Services to SAMHS - 37 Sickbays and SAMHS Achieved facilities for Veterinary Services
Product Systems Support DOD Achieved DOD Cross-subsidisation. The provision of: DOD Services and Achieved
Ammunition for Force Preparation. Divisions
Uniform items to members of SA Army outside the SA Army.
Ration packs to other Services and Divisions during operations.
Centralised stationery.
Updated maps and charts. Course support for DOD Common Training DOD Achieved
Reserve members regarding regarding Procurement 1 Parachute Battalion.
their concerns and future Centres within the ASBs. Limited disposal of obso- role in the SA Army. The General Officer lete equipment took place
show was well received and Commanding (GOC) Indoor shooting ranges many issues were Support Formation was and shooting related addressed and this will go a mandated to identify capa- equipment at various units long way to improve the ble members to be placed were repaired and this will image and commitment of within the procurement contribute to improve the the SA Army towards the centres so as to assist standard of shooting in the Reserves. Through Project with processing of FAs SA Army. The use of sim- PHOENIX there is an and Orders received from ulators, especially for improved visibility of Army clients and expedite shooting training, also con- Reserve Force participation payments. tinued. at Army Office, and in time The procurement of critical Utilisation of the Landward this will be cascaded down items like the fuses for the Defence Institute for scientif- to Levels 3 and 4. 155 mm system and para- ic investigations into the SA Sustainment chutes in order to improve Army explosive ordnance
Intervention took place the combat-readiness of strategy, vehicle strategy
64 Department of Defence Chapter 5
2002-2003 Annual Report 65 Chapter 5
and stock policy, took place. Institutionalisation of UTILISATION OF Upgrading of various mess LCAMPS in the SA Army is CONSULTANTS facilities at units so as to use already underway and more these for accommodation by than 1 000 members have Most consultants utilised by Chief visiting personnel as oppos- already attended the course. Directorate Force Preparation were ed to private hotels thereby This is done in order to for translation of SA Army training cutting costs for Sustenance improve leadership within manuals from Afrikaans to English. and Travel (S&T) allowance. the SA Army. A new security system was In preparation for the bigger CONCLUSION installed at the Army Office intakes envisaged for the MSDS intake, plans are in order to enhance security Amid all the challenges that the SA underway to open a 2nd and prevent theft of govern- Army is currently facing, it contin- Depot at the School of ment equipment in general. ues to fulfil its role and mandate. Infantry that will be able to Several units have been The SA Army is proud to support accommodate up to 3 000 closed in line with the Mili- the government's initiatives both members at one time. tary Strategy. The self-ac- locally and regionally and will con- counting status of Level 4 The SA Army Office introduced a tinue to do so when instructed. units was withdrawn to new belt at the beginning of the The presence of the SA Army in improve service delivery. year, representing all Corps avail- Burundi is but one example of the The Warrant Officer (WO) of able within the SA Army. The new preparedness of the SA Army to the SA Army has instituted a belt replaces the current belts worn serve this country wherever and number of WO and Non- by the different Corps and acts as a whenever commanded. The prob- Commissioned Officer unifying symbol that embraces lems currently being experienced (NCO) competitions in order transformation. The belt promotes can be solved by timeous interven- to improve the standard of esprit de corps amongst Army tions and the implementation of an discipline and drill within the members and promotes the "one integrated approach - the "one SA Army. force" concept. force concept".
Table 5.3. Utilisation Of Consultants
Project Title Total Number of Consultants Duration of Work Contract Value who Worked on Project Days in Rand Translation of SA Army Vol 6: Hudson and 40 days R8 835.00 "Die Stormpioniers". Associates Translation of "SA Leër I. Hodgson 10 days R3 488.40 Opleidingsbeleidhandboek: Oorlewing". Translation of "SA Leër Olifant Gevegstenk". I. Hodgson 22 days R3 197.70 Translation of "Vestiging van Tegnieke". I. Hodgson 20 days R4 902.00 Vehicle Strategy Land Mobile Technologies Contracted Price R395 231.00 Ammunition Strategy Defence Research Centre Contracted Price R709 296.00 Stock Level Policy Konditek Contracted Price R236 664.00 Handling of Artillery Ammunition Ergotek Contracted Price R284 504.00 Structure of Mechanised Infantry Support Defence Research Centre Contracted Price R250 001.00 Company Financial Procedures Defence Research Centre Contracted Price R349 695.00
66 Department of Defence Chapter 5
2002-2003 Annual Report 67 Chapter 6
AIR DEFENCE
ANNUAL REVIEW
The past year was one filled with Police Service (SAPS) during crime great opportunities and some out- prevention and border-protection standing achievements. The SA Air operations. During the year the SA Force once again presented itself to Air Force flew 35 145 hours, of the national and international com- which 10 947 were force employ- munities as a valuable national ment in direct support of the SA Air asset and important contributor to Force's national mandate. A total of the New Partnership for Africa's 3 937 force employment missions Development (NEPAD) initiatives of were flown. government. During the year the SA Air Force contributed substantial During May 2002 the Chief of the manpower and other elements of air SANDF unveiled the stone dedicat- power to the con- ed to the tingents of the unknown air- South African man which National Defence INTRODUCTION formed the Force (SANDF) main event of that are currently the SA Air deployed in the Democratic Force memorial service held at Republic of the Congo (DRC) and Bays Hill. The stone honours all Burundi. The services rendered by unknown airmen who died in the SA Air Force members are good service of the SA Air Force, as well examples and visible confirmation as the Transkei, Bophuthatswana, of the SA Air Force's involvement in Venda and Ciskei Air Wings. It also and commitment to NEPAD, and honours those unknown members towards attaining and ensuring a of Umkhonto we Sizwe (MK) and peaceful and stable region. the Azanian Peoples Liberation Army (APLA), who were destined to As part of its normal support to the become part of the SA Air Force. people of South Africa, the SA Air Force was continuously involved in A highlight during the year 2002 transport, humanitarian and coastal was the sterling service rendered by patrol operations, with many hours SA Air Force members in saving flown in support of the deployment Russian and German sailors from in the DRC and Burundi, as well as the Antarctic ice in June and July in support of the South African 2002.
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2002-2003 Annual Report 69 Chapter 6
22 Squadron was honoured by the the Standing Aviation Committee Another major highlight was the Russian Federation at a formal Conference of the Inter-State De- progress made with the SA Air For- awards ceremony in Cape Town, fence and Security Committee ce aviation awareness programme, where SA Air Force members were (ISDSC) of the SADC. One of the SIYANDIZA. The guideline given given official recognition for their important issues addressed at the by the SAAF Board to the SIYAN- brave and selfless acts of service in Conference was a combined air DIZA project for the year 2002 was saving these foreign nationals forces preparation exercise, Exer- that it was to be more focused on under extremely difficult and dan- cise BLUE ANGEL, to be held dur- individuals, and thus to produce 50 gerous flying conditions. ing July or August 2003 in Zambia. applicants for an aviation career in The scenario for the exercise will be the SAAF by December 2002. To The SA Air Force contributed signif- a simulated disaster-relief operation this end, the programme was to be icantly to the World Summit on and its main aim will be to improve decentralised and its main objective Sustainable Development (WSSD) the interoperability of equipment to be focused on establishing avia- that took place in Johannesburg in and the harmonisation of proce- tion awareness programmes at August and September 2002, with dures. The Chief of the Air Force base and unit level, involving chil- the provision of Military Liaison attended this conference to person- dren from local communities. By Officers and the utilisation of Air ally strengthen and reinforce the SA means of this process, candidates Force Base (AFB) Waterkloof for Air Force's ongoing commitment with the right qualifications and an foreign aircraft movements. towards contributing to improved interest in aviation were identified. Approximately 50 SA Air Force offi- peace-support operations in the The result is that the SA Air Force cers performed duty as liaison offi- region. now has a name list of more than cers. AFB Waterkloof played host 80 specially selected black candi- to 46 aircraft from 32 different coun- The Chief of the Air Force was the dates who will enter the normal re- tries and handled 103 aircraft move- Revue Officer at the annual wings cruitment process of the defence force. ments. parade held at AFB Langebaanweg in December 2002. It was the 100th During the Africa Aerospace and AFRICA AEROSPACE AND pilots wings course held since Defence Exposition, SIYANDIZA DEFENCE EXPOSITION World War II. Fifty-four students was able to expose more than 8 received wings, of whom 23 were 000 learners to the world of avia- The Africa Aerospace and Defence pilots. Of significance at this wings tion. As a result of the active parti- Exposition was held at AFB Water- parade was that, for the first time cipation countrywide, some 25 000 kloof during September 2002. This ever, 4 SAAF Reserve officers re- learners and 5 000 teachers and very successful event offered many ceived their wings alongside Regu- parents were reached during the opportunities to strengthen friend- lar Force personnel. Three naviga- year. The project team has a data- ships with other air forces and part- tors, 5 flight engineers, 4 loadmas- base of 300 individuals who are ners in Industry. The Gripen, Hawk ters and four 4 attendants also re- actively part of a development pro- and Agusta, soon to be introduced ceived wings. The remaining 11 gramme. into service, were displayed to the wings were presented in the elec- public and provided a preview of tronic and telecommunication mus- The SA Air Force Medium-term Hu- the next generation of aircraft to be terings. man Resource (HR) Strategy and introduced into the SA Air Force. the HR Short-term Support Plan The annual SA Air Force Day Pa- were drafted and approved in Feb- The Sir Pierre van Ryneveld Air rade was held on 31 January 2003 ruary 2003. These plans are in- Power Symposium, well supported on Bays Hill at the SA Air Force tended to address the lack of ade- by the air forces of the Southern Memorial. The Deputy Minister of quate and skilled resources, while African Development Community Defence and other members of the at the same time addressing the (SADC) countries, formed part of Defence Staff Council attended the imperatives of representivity. They the Africa Aerospace and Defence event. The annual SA Air Force constitute sub-strategies of the SA Exposition 2002. More than 300 prestige awards were handed out at Air Force Strategic Transformation representatives from Government, the parade. The Prestige Award of Plan Towards Vision 2012 and play the military, industry and foreign the year went to the Mobile Com- a very important role in setting spe- countries attended, and the SA Air munication Unit. The SA Air Force cific objectives which have to be Force is proud of an event that pro- Protection Squadrons were hon- achieved in the HR resource envi- vided valuable insights into the oured with the Sword of Peace ronment to ensure that the SA Air challenges related to multinational award for their role in Africa, partic- Force becomes a fully representa- air operations. During the Defence ularly in Burundi, where they form tive, competent and combat-ready Exposition the SA Air Force hosted the core of the VIP Protection Unit. organisation.
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CHALLENGES tives during the year. Approval of dance with the prescripts of the the Transformation Plan Towards Transformation Plan Towards One of the major challenges facing Vision 2012 opens the way for the Vision 2012, provision has been the SA Air Force was addressing implementation of measures that made for the upgrading of the the lack of African flying instructors will make possible a larger portion General's house at Thaba Tshwane at the basic flying training school at of the operating budget to address and the establishment of a flagship Langebaanweg. This necessitated the issue of systems integrity, while Warrant Officers' mess in Pretoria, a special effort, and the SA Air the embedded HR strategy will as well as for the creation of a Force embarked on a programme to address the personnel shortcom- Garden of Remembrance at the SA train African flying instructors, not ings and imbalances. Measures to Air Force Memorial. All these initia- only at Langebaanweg, but also be implemented include logistical tives will commence during FY with the aid of foreign courses. The restructuring, optimisation of all 2003/04. air forces of the United States and support contracts and significant Algeria trained, and are still training, personnel reductions. The number The South African Excellence SA Air Force pilots to become flying of personnel contracted in from the Foundation (SAEF) model was instructors. It is envisaged that by Aerospace Manpower Group will be employed as a measuring tool to June 2003 there will be a total of reduced to 500 from the current 850 evaluate bases and units of the 9 African flying instructors at over the next three years. SAAF for the first time during FY Central Flying School 2002/03. 526 Squadron, a protec- Langebaanweg, including the first- Another highlight in the year was tion squadron based at Langebaan- ever African female flying instructor the arrival of the new intercontinen- weg, entered for the South African in the history of the SA Air Force. tal aircraft, "Inkwazi". It arrived in Excellence Foundation annual Initiatives like these not only benefit October, and, after the required excellence awards at national level, the SA Air Force in terms of its own release to service flights had been and the unit was awarded a nation- internal efficiencies, but they are completed, it was released to serv- al certificate for its achievements. proof of the fact that the SA Air ice in January 2003. Between for- Force is serious in its pursuit of the mal commissioning and the end of On the sporting front, SAAF mem- objective of becoming fully repre- the financial year it completed 10 bers excelled again, as in the past. sentative in the flying environment, flights in support of the President's Fourteen members - ten male and as explicitly stated in its transforma- office, six of which were internation- four female - were awarded national tion plan. al flights. The aircraft is expected colours, while 97 members obtained to fly well in excess of the 300 flying provincial colours in various sports. The year also saw the promotion of hours requested annually, and in All in all, FY 2002/03 was a great another female member into the anticipation of its increased usage sports year for the SA Air Force. rank group of brigadier general. the SA Air Force has planned on a This was another important step in target of 600 hours for FY 2003/04. enhancing gender representivity in STRATEGIC PROFILE the senior management service. The SA Air Force Benevolent Trust Eight African members were was established during the year. Its Vision. The SA Air Force appointed as officers commanding management committee is chaired adopted a ten-point vision, during the year. Of the 427 uni- by the Chief of the Air Force and named Vision 2012, which formed members and Public the trust will be applied for the ben- describes the desired future Service Act Personnel (PSAP) efit of all serving and former serving state of the SA Air Force, appointed during the year, 226 were members of the SA Air Force. It and forms the basis of the African, 126 were White, 58 were will also be used for the social SA Air Force Strategic Coloured, and 17 were Asian. The upliftment of members of previously Transformation Plan gender composition of new appoint- disadvantaged communities by Towards Vision 2012. ments was 363 males and 64 funding projects that will benefit Mission Statement. The females. This represents a signifi- those members as well as the SA SA Air Force provides com- cant step forward in correcting rep- Air Force. bat-ready air capabilities for resentivity imbalances. the SANDF in service of our Another milestone in preserving mil- country. Systems integrity and personnel itary aviation heritage was achieved Mandate. To provide and shortages in core musterings were when Defence Staff Council manage the Air Defence the major obstacles impacting on approval was obtained for the capability of the Department the SA Air Force's ability to achieve establishment of Swartkop as a mili- of Defence (DOD) on behalf combat-readiness and other objec- tary aviation heritage site. In accor- of the DOD, thereby
2002-2003 Annual Report 71 Chapter 6
participating in the service to One learner from Gabon success- its aircrew complement and, in line ensure fully completed the Officers with development targets set during
the sovereignty and pro- Formative Course at the SA Air the budget cycle, re-established tection of the Republic's Force College and one learner from essential combat competencies of territorial integrity; and Zambia completed the Junior Staff advanced mission execution and
compliance with the inter- Course at the SA Air Force College. basic night operations within the national obligations of the Of the eight learners from Lesotho allocated budget. In addition to Republic to international who underwent apprentice training, this, the unit was tasked to partici- bodies and states. one has already completed the pate in the SA Air Force Exercise training and returned to Lesotho. GOLDEN EAGLE, while the unit SUPPORT OF GOVERN- The Transformation Plan Towards also participated in an unscheduled MENT INITIATIVES Vision 2012 has also established joint exercise with the SA Army, that 10 per cent of the capacity of Exercise IRON EAGLE. This During the year the SA Air Force the SA Air Forces basic flying train- deployment was exploited to com- contributed substantial manpower ing should be made available to plete a series of tactical reconnais- and other elements of air power to regional partners in support of sance missions for Chief of Joint the contingents of the SANDF that NEPAD. The implementation of this Operations. Both initial fighter con- are currently deployed in the DRC initiative is still to be finalised. version and flight leader courses and Burundi. Just over 600 flying were completed on schedule, while hours were flown in direct support DEFENCE CAPABILITIES an air-to-air training camp was also of external operations in those AND SERVICE DELIVERY conducted for the first time in sever- countries. The SA Air Force TRENDS al years. During the year the unit Protection Squadrons were hon- lost three combat pilots through res- oured with the Sword of Peace AIR COMBAT CAPABILITY ignation, while a fourth pilot was award for their role in Africa, partic- fatally injured in an Impala Mk II ularly in Burundi, where they form The allocated budget for the direc- training accident. Planning was the core of the VIP Protection Unit. torate funded approximately 80 per also initiated to migrate the combat cent of the required flying hours for training capability to AFB Louis The funding of air mobility for diplo- Cheetah and Impala systems. In Trichardt in anticipation of the macy was one of the highest priori- addition to this, electronic warfare scheduled delivery of the new Hawk ties of the SA Air Force Board in activities of the SAAF had to be lim- lead-in fighter training system dur- the past year. The SA Air Force ited to only defensive capabilities, ing 2005. Through prudent man- committed itself to providing for all essential training and limited flying agement, the unit was able to fly a the air transport requirements of the on the Dakota C-47TP and Oryx total of 2 510 hours, thus exceeding President's Office. Of the 1 803 fly- Electronic Warfare platforms. Very the allocated target by some 300 ing hours flown in support of air limited funding was made available hours. In doing so, the tactical mobility for diplomacy, 59 flights, for the Boeing 707 systems. The competence of all allocated air- totalling 304 hours, were flown into challenge facing the Directorate crews was enhanced substantially, SADC and other African countries. was thus to optimise the flying resulting in a revival of morale in potential of the two funded flying the fighter line as a whole. As already indicated, the Sir Pierre systems while enhancing the elec- van Ryneveld Air Power Sympo- tronic warfare capabilities of the SA The primary objective allocated to sium was well supported by the air Air Force as a whole within the lim- the Cheetah unit was to regain forces of the SADC countries. They ited budget allocation. In addition combat proficiency in core missions also attended the Africa Aerospace to this, the directorate was charged after years of inadequate budgetary and Defence Exposition in Septem- with the task of re-establishing the allocations, while the technical ber 2002. During the Defence Boeing 707 capability as an essen- integrity of the aircraft systems had Exposition the Air Force hosted the tial component of service delivery, to be advanced significantly to sup- Standing Aviation Committee without access to a formal budget port the projected flying hours. Conference of the ISDSC. allocation. Through focused training and reten- tion plans the unit grew during the Various training opportunities were A total of 2 160 hours were funded year, while qualified combat pilots afforded to members from SADC for the Impala Mk I/II combat train- were released for flying instructor countries during the past year. Ten ing system, to be executed on 13 training to further address the back- learners from Zambia completed Impala Mk I and 13 Impala Mk II log in qualified pilot attack instruc- VIP protection training at the SA Air trainer aircraft. Despite a limited tors. During the year the dual-seat Force Gymnasium in March 2003. instructor core, the unit expanded aircraft were withdrawn for an
72 Department of Defence Chapter 6
engine modification programme to income of which should have the SAAF. While building on estab- reduce the cost of ownership of this accrued to the Boeing-707 system. lished Cheetah, Impala and Dakota capability, thus limiting the training This funding, as well as funding C-47TP capabilities, the section potential in-year. A revision of the from a similar support contract con- also introduced electronic self-pro- support concept ensured that air- ducted at the end of the 2001 finan- tection functionalities on the modi- craft availability improved signifi- cial year, was not reimbursed to the fied Hercules C-130BZ and Oryx cantly, with average mission avail- Combat System Group, necessitat- systems. The unit was also tasked ability in excess of 90 per cent ing cross-subsidisation of Boeing- to run two electronic warfare train- being achieved on the aircraft 707 operations from the Cheetah ing camps for the SAAF, where deployed to the air-to-air camp at budget to defray essential mainte- more advanced self-protection sce- Langebaanweg. The unit participat- nance activities, while logistic narios were practised with attached ed fully in Exercise GOLDEN reserves were severely depleted in DOD elements for the first time in EAGLE and continued to hone com- the process. several years. The capabilities of bat skills throughout the year, the Dakota C-47 TP and active including the re-establishment of Until financial mechanisms are electronic warfare systems on modi- core night-flying and aerial gunnery agreed to ensure reimbursement of fied Oryx helicopters were also competencies. Owing to the fixed-cost expenditures, any con- utilised to participate in a joint exer- unavailability of the air-refueling tracted support has been curtailed. cise with the SA Navy that had not capability at the time, the unit was Despite the loss of income the been budgeted for initially. The unit not able to participate in Exercise directorate achieved 601 flying thus succeeded in all its objectives IRON EAGLE. Finally, manage- hours on the Boeing-707 system and surpassed planned output ment intervention ensured that the during the period under review. In through innovative management unit was also tasked to execute a doing so, the value of this capability practices. host of reconnaissance missions for within the DOD force design was Chief of Joint Operations as part of clearly confirmed, while it was The Occupational Health and routine force preparation flying, thus proven that the survival of this Aviation Safety System had one adding to the collateral value of capability could be assured through major and six minor accidents. One such missions. A total of 1 150 commercial application. Owing to pilot was killed and the aircraft hours were flown on the Cheetah uncertainties about the future of the destroyed in an Impala Mk II flying system, almost equalling the bud- unit, three operational pilots termi- accident. geted flying potential of 1 200 nated their employment at the end hours. of their contracted service periods. AIR TRANSPORT AND MARITIME Exploitation under the Reserve CAPABILITY Only Rm1,0 was allocated from the Force regulations ensured that operating budget to sustain essen- Boeing-707 services could be con- The Directorate Air Transport and tial administrative functions in the tinued until March 2003, when all Maritime Systems approached FY absence of a formal budget for the three members found permanent 2002/03 with the intent to recover Boeing-707 capability. Through employment in the commercial avia- systems integrity. This meant that accepting specific logistic manage- tion sector. more funds were allocated towards ment risks, and utilising advances maintenance and force preparation from uncommitted aviation fuel Effective recruitment resulted in the at the cost of a reduction in force funding of the directorate, the flying re-appointment of two experienced employment hours. This would potential of two Boeing-707s was Boeing pilots, while two serving offi- position the System Group to be exploited in support of regional cers were transferred to the unit to well placed to improve service deliv- deployments in Burundi and the commence conversion training. ery in terms of force employment DRC. This service delivery was This has ensured that the capability hours for FY 2003/04. The result of against repayment and the income will again be operational from May this strategy was that the average generated allowed the funding of 2003. The allocation of a formal aircraft mission readiness of the critical maintenance tasks, while budget and the planned recovery of Systems Group improved from 54 essential flying training could also income for flights against repay- per cent at the outset of the year to be carried out. A support contract ment are, however, cardinal to the more than 80 per cent in March with Denel Overberg Test Range retention of this capability area. 2003. The aircrew readiness of the was also completed, during which Systems Group improved to 73 per air-refueling services were provided The unit was tasked to conduct cent in March 2003. to the German Department of electronic warfare awareness train- Defence. This generated some 60 ing as well as to re-establish essen- The air transport and maritime hours against repayment, the tial self-protection capabilities within capability, comprising 29 aircraft
2002-2003 Annual Report 73 Chapter 6
and 36 crew was planned to fly 5 was planned to fly 366 force utilised in this role owing to the 143 force employment and 5 052 employment and 584 force prepara- unavailability of suitable pilots at the force preparation and training tion and training hours, thus squadron. A drive was initiated to hours, thus totalling 10 195 hours. totalling 950 hours. This output was recruit suitable pilots for 110 This output was achieved. All achieved. The Dakota C-47TP Squadron and this will continue into capabilities performed to respective operations were limited due to allo- the new year. business plans and all financial cation of hours. Partial relief was transactions went according to plan. obtained in the last quarter through The Occupational Health and cross-funding from combat systems Aviation Safety System had one The VIP transport capability, com- for electronic warfare training. major and four minor accidents. The prising three aircraft (Boeing Maritime operations received extra fatality occurred when a ground Business Jet, Falcon 900 and funding to complete objectives. crew member fell out of a taxiing C- Falcon 50) and 4 crews, was 208 Caravan Aircraft; he was fatally planned to fly 1 276 force employ- The light transport/reconnaissance injured. ment and 546 force preparation and capability, comprising thirteen air- training hours, thus totalling 1 822 craft (Cessna-208 and Cessna-185) HELICOPTER CAPABILITY hours. This output was achieved. and ten crews was planned to fly 2 280 force employment and 2 420 The medium transport helicopter The medium heavy transport capa- force preparation and training capability consists of the Oryx heli- bility, comprising 2 aircraft and 4 hours, thus totalling 4 700 hours. copter fleet which is distributed crews was planned to fly 300 force This output was achieved. The throughout the RSA, at employment and 468 force prepara- Cessna-185 was utilised with great 15 Squadron (AFB Durban), tion and training hours, totalling 768 success in the Southern Coastline 17 Squadron (AFB Swartkop), hours on medium heavy transport Marine anti-crime programme in co- 19 Squadron (AFB Louis aircraft (Hercules C-130BZ). This operation with marine coastal man- Trichardt), output was achieved. Aircraft avail- agement and the SAPS. 22 Squadron (AFB Ysterplaat) ability at the squadron was low dur- and ing periods that Hercules 130-Bs The command and control capabili- 87 Helicopter Flying School were withdrawn for modification to ty comprising four aircraft and 5 (AFB Bloemspruit). Hercules C-130BZ. Progress on crews was planned to fly 521 force the operational test and evaluation employment and 546 force prepara- Owing to the decision to reduce the of Project EBB is according to plan. tion and training hours, totalling 1 fleet size, the financial allocation The Test Flight and Development 067 hours, on command and control was sufficient to generate 7 000 fly- Centre cleared the aircraft for com- transport aircraft (Cessna-550, ing hours, a substantial improve- pliance with the required navigation Beechcraft-30, Beechcraft-20 and ment on the previous year. performance. Pilatus PC-12). This output was Unfortunately, mainly owing to a achieved. During the year crew lack of ground forces, approximate- The medium/medium light transport availability was reduced due to ly 1 000 hours remained unused. capability, comprising two aircraft transfers to Directorate Education, (Casa-235 and Casa-212) and 5 Training and Development. The SA Navy halted the disposal crews was planned to fly 400 force process for the 10 aircraft in stor- employment and 470 force prepara- The SA Air Force Reserve age, as it was considered that it tion and training hours, thus Squadrons comprising 147 aircraft might be appropriate to use some totalling 870 hours. This output and 89 pilots in 9 SAAF Reserve of these airframes to satisfy the was achieved. During the year Squadrons, was planned to fly a maritime helicopter requirement. crew availability was reduced due to total of 2 400 force employment and Following a request from the transfers. No permanent Casa-235 force preparation hours on various Minister of Environmental Affairs crews were available, but staff and aircraft. This output was achieved. and Tourism to the Minister of Reserve Force members were Because of allocation of hours, only Defence to re-establish the utilised to man aircraft. Sufficient limited force employment and force Antarctic support, a support concept crews were, however, trained dur- preparation was possible. The fail- was formulated in which there ing the year to meet the policy for ure to utilise this capability has would be financial risk sharing FY 2003/04. affected the spirit of the members. between both departments and Members of 110 Squadron were proactive financial support from the The medium range maritime patrol introduced to possible surf-line Department of Environmental capability, comprising 5 aircraft operations for marine anti-crime Affairs and Tourism. The helicopter (Dakota C-47TP) and six crews operations, but have not yet been support to that department will be
74 Department of Defence Chapter 6
resumed in September 2004 on the fleet was utilised fairly extensively in ability rates during the second half expiry of the civilian contract. The anti-crime operations, it still tends to of the year, it is anticipated that with two M2 Antarctic Oryx helicopters be underutilised, as it cannot be the additional funding this situation were utilised very effectively during operated during poor weather con- should improve dramatically. a rescue operation of Russian sci- ditions or dark nights. Of the avail- entists off a German ship stuck in able 4 000 flying hours, 3 596 hours The Occupational Health and the Antarctic ice cap in mid-winter. were utilised. The limitations on Aviation Safety System had no The safety door modifications operations will be removed when major accidents, but recorded 51 necessitated by the catastrophic the Agusta 109 replaces the fleet minor accidents. 1999 Oryx accident were imple- during 2004. mented during the second half of COMMAND AND CONTROL the year. This process was delayed The spares clean-up exercise has CAPABILITY by the need to find an effective enabled the directorate to devise an technical solution and to ensure that extremely economical phase-out Directorate Command and Control this solution satisfied the airworthi- plan for the fleet. Sufficient spares Systems comprises four capability ness criteria. will be retained to cover the remain- areas that provide the main back- ing life of the fleet and surplus stock bone to the Ground and In-flight During October 2001 two Oryx heli- will be disposed of at the optimum Command and Control System of copters were deployed to Burundi time. Authority has been obtained the SA Air Force. These four with a planned utilisation rate of 120 to retain 10 aircraft until 2009 as capability areas are: hours per month. As the actual util- dedicated basic trainers with no Air Defence Management, isation rate was very low, an operational roles. This will release Air Traffic Management, Alouette III helicopter replaced one additional Agusta 109, which have Information Technology & Oryx in April 2002. These two air- very capable operational systems, Communications and craft flew a total of 128 hours for from training for more cost-effective Ground Command and the year. The capability has been operational use. Control. hard hit by the loss of experienced technicians owing to aggressive The availability of the BK-117 heli- Despite the challenges in terms of recruiting campaigns by commercial copter fleet was poor, which result- force preparation, financial con- airlines and slow progress with the ed in 1 143 hours being flown out of straints and personnel shortages, implementation of the technical the planned 1 700 hours. This fleet especially in the air traffic manage- incentive pay scheme. This result- has been supported with very few ment environment, this directorate ed in the SAAF not being able to spares since it was introduced into has served the needs of the SAAF satisfy the United Nations (UN) service in 1994, but the high utilisa- by providing a service which has deployment needs to the DRC tion rate during the Mozambique ensured that the main core function early in 2003. operation highlighted the need to of the SAAF was attained and com- support this fleet as a military heli- mand and control ground systems The light utility helicopter capability copter. met all unit policy commitments in consists of the Alouette III helicop- respect of equipment. The suc- ter fleet which is distributed at The combat support helicopter cessful implementation of the mar-
17 Squadron (AFB Swartkop), capability consists of the Rooivalk ket-related mission/air traffic con-
19 Squadron (AFB Louis helicopter fleet that operates out of troller incentive package has Trichardt), 16 Squadron AFB Bloemspruit. As already resulted in a large drop of
22 Squadron (AFB of the end of March 2003 ten air- resignations in these core muster- Ysterplaat), and craft of the order for 12 had been ings. The Memorandum of
87 Helicopter Flying School delivered. Cabinet has approved Understanding between the Air (AFB Bloemspruit) funding to complete the outstanding Traffic and Navigational Services and the BK-117 helicopter fleet development aspects and the in- Company and the SA Air Force which is distributed at service operating costs. The unit is regarding joint ventures in the provi-
15 Squadron (AFB Durban) currently busy with the operational sion of air traffic management serv- and test and evaluation phase of the ices, training, integration of systems
Air Force Station Port programme. The unit flew 569 and sharing of facilities will soon be Elizabeth and hours of the planned 800 hours, finalised.
87 Helicopter Flying School mainly due to delays in production (AFB Bloemspruit). delivery and software upgrades. Besides having tentacles, which While the lack of operating funds extend throughout the SA Air Force, Although the Alouette helicopter has resulted in extremely low avail- the Directorate also provides the SA
2002-2003 Annual Report 75 Chapter 6
Air Force with two sector control ucts through its allocated force use of the system until a new sys- centres, various Base Command structure elements, ie the Joint Air tem can be purchased in 2006. Posts and an Air Force mobile Reconnaissance and Intelligence Indications are that the system will deployment wing, which incorpo- Centre (JARIC) at AFB Waterkloof not be available for operational use rates 140 Squadron (Umlindi Radar and the SA Air Force's unmanned before September 2003, after which Systems), 142 Squadron (Tactical aerial vehicle, the Seeker 1 System, it should be able to provide the Mobile Radar Systems), Mobile operated by Kentron. Intelligence required level of service until 2006. Communications Unit (MCU) and systems achieved its goals and Steps are being taken at present to 18 Deployment Support Unit. The objectives to a satisfactory level train SA Air Force operational and plan for the closure of 120 over the reporting period. technical staff to conduct UAV mis- Squadron (ground based air sions with limited assistance from defence) is in the final phases and The core business of the JARIC is the industry, which should substan- the squadron is no longer funded. to exploit the SANDF and other tially decrease the cost of future The MCU continues to supply the user clients' image intelligence deployments. The core business of main multi-channel communications requirements, the provision of the Seeker 1 UAV system is to infrastructure in Burundi under the image intelligence support, air intel- assist the SANDF, other govern- auspices of the Chief of Joint ligence training, the provision of air ment departments and clients dur- Operations as part of Operation reconnaissance and survey imagery ing internal operations of a diverse FIBRE. It made history by becom- and research and development kind, such as crime prevention, ing the first operational non-flying within its sphere of interest. crowd densities and concentrations unit to receive the SA Air Force during election periods, traffic moni- Prestige Award for Top Performer The JARIC achieved its goals and toring and border-control opera- during 2002. The upgraded ground objectives during the reporting peri- tions. This system is a force multi- command and control system has od, despite its ageing equipment plier and was utilised with great also been operationally accepted. and many challenges that arose success whenever deployed, both Systems within the Directorate's throughout the year pertaining to during day and night-time opera- force structure elements and the maintaining serviceability. The unit tions. It operated in conjunction integrated command and control provided the following image sup- with the JARIC's Tactical Image systems within the SA Air Force are port to its clients. 95% of requested Exploitation System which con- largely maintained by product sup- taskings were achieved, with 3 per tributed to tactical image exploita- port system manager contracts. cent being partially achieved and 2 tion on site to assist commanders in per cent not achieved. The JARIC their decision making and guiding of OPERATIONAL SUPPORT AND received the Best Support Unit of forces onto targeted areas, irre- INTELLIGENCE CAPABILITY the Year Award (2002) during the spective of time of day. SA Air Force's Annual Prestige This directorate provides force pre- Award Ceremony held early in The Counter-intelligence sub-sec- pared and developed intelligence 2003. tion is responsible for the following: and counter-intelligence and protec- Counter-intelligence related tion services personnel to the Air For the last few years Kentron has force preparation and force Force. It is also responsible for the kept the Seeker 1 System in a flying development in the SAAF. provision of intelligence and protec- condition by employing engineers Management and conduct of tion systems and effective counter- and highly qualified technicians to military security in the SAAF. intelligence and safeguarding meas- keep the various systems in a serv- Management of the strategy ures to ensure operationally and iceable condition. Funds for for criminality in the SAAF. security-prepared SA Air Force per- deployments as required by Joint Management of the SAAF's sonnel. This directorate has Operations were allocated from the code of conduct transgres- achieved its goals to a satisfactory DOD technology budget. However, sion database, as well as the level. the occurrence of random critical development and implemen- failures during a recent deployment tation of management inter- The SA Air Force's intelligence sys- of the system has prompted ventions in this regard. tems provide force-prepared and Kentron to declare the system The management and con- force-developed intelligence for unsafe for further operations until duct of safeguarding in the operations functionaries to the extensive refurbishing of several SAAF. SANDF in support of operations. It subsystems have taken place. The also ensures the effective manage- SAAF is presently negotiating with The Counter-intelligence Section ment of the SA Air Force's airborne Kentron to create an affordable and achieved its objectives to a satisfac- imagery sensors and imagery prod- sustainable model for the continued tory level.
76 Department of Defence Chapter 6
Protection Services' core protection ty to provide a standby ele- The Occupational Health and functions are being maintained by ment at most squadrons. Aviation Safety System had a major base level protection squadrons in The shortage of patrol/guard incident that occurred during FY the form of entrance control, patrols dogs limits the performance 2002/03, namely an electrical shock and dog patrols as well as point of dog patrols. sustained by a member during the guard duties. 500 Squadron main- operation of hangar doors at AFB tains a capability to provide spe- BASE SUPPORT SYSTEMS Waterkloof. Following the involve- cialised protection operations in the CAPABILITY ment of the Department of Labour, form of rapid deployment capability an on-site contractor has been (search and rescue and aircraft appointed over a four-year period to This capability provides force pre- down capability). They also provide address and monitor problems of pared and developed base support mobile protection, i.e. assets in this nature and prevent similar inci- services. The following services transit protection. The Protection dents from recurring. are provided as base support serv- Services achieved their goals. ices: EDUCATION, TRAINING AND The provision of airport serv- The Logistic Support Section pro- DEVELOPMENT CAPABILITY ices, in particular aerodrome, vides cost-effective integrated logis- fire-fighting and passenger tic support to Director Operational The majority of the outputs provided handling services. Support and Intelligence Systems. by this capability area can be The provision of aviation This section is also responsible for regarded as outputs for internal accommodation services, ie. the directorate's financial manage- consumption. facilities. ment. This section has achieved its The provision of transport goals to a satisfactory level. All basic flying and flying instructors and vehicle management courses are presented at Central services. Deviations concerning operational Flying School at AFB Langebaan- The provision of an apron support and intelligence capabilities weg. A combined course for pilots service to aircraft, in particu- Shortcomings at JARIC can wing courses, as well as a flying lar ground power units and be ascribed to technical diffi- instructors course, were presented aircraft tugs. culties experienced with with a planned output of 31 stu- The provision of aviation fuel hardware, non-availability of dents. A second flying instructors storage and dispensing serv- key personnel to perform course was cancelled as the stu- ices. tasks due to other functional dents were trained in the United obligations and other priority States of America and Algeria. To tasks received during their The Directorate Base Support accomplish this 5 475 flying hours period of occupation with Systems has partially achieved the were needed. The planned output specific tasks. majority of the goals for the past was achieved with all 31 students Budgetary constraints have year. passing and 4 079 hours (74,per resulted in the Seeker 1 cent) being flown. Owing to the UAV System not being fund- The price of achieving operational cancellation of the second flying ed at all. Technology funds goals in FY 2001/02 was as expect- instructors course, fewer hours were obtained to fund 63 ed and as mentioned in the previ- were flown. operational deployment days ous report, felt during FY 2002/03. for the year. This funding Owing to limited funds, the service All navigator and flying-related train- excluded the JARIC's delivery has been to the further ing, such as survival and parachute Tactical Image Exploitation detriment of the products and sys- sailing, is done at 80 Air Navigation System, which was funded tems required for supplying the School. Six courses were planned by Chief of Joint Operations. services. It is expected that the with an output of 138 students and The system has been sus- condition of the base support capa- 590 hours to accomplish the requir- pended whilst undergoing bility will seriously affect the opera- ed output. The planned output was safety modifications and will tional support capabilities of the SA partially achieved. 133 of the 138 be out of service until Air Force in the near future. The students (96 per cent) passed, with September 2003. project currently underway for the 453 hours being flown. The naviga- Because of personnel short- upgrading and procurement of new tors wings course had only 4 of the ages protection services fire-fighting systems, will alleviate planned 6 students. One student continue owing to the the problems faced to providing an navigator withdrew from the naviga- Burundi deployment and effective aviation fire-and-rescue tor course and one student failed adversely affect the capabili- capability. the survival course.
2002-2003 Annual Report 77 Chapter 6
All logistic non-technical training 70 passed. The 87 who did not apprentices on Basic Military courses are presented at 68 Air complete the courses were due to Training took their discharge from School and the SA Air Force Gym- students failing and/or withdrawing the SA Air Force for medical rea- nasium. A total of 101 courses with at own request. sons. One Lesotho student com- 1 768 students were planned at 68 pleted his apprenticeship success- Air School and 10 courses with 233 The output by the SA Air Force fully and returned to his country. 38 students at the SA Air Force School of Cookery at the SA Air artisans attended full-time technical Gymnasium for FY 2002/03. Force Gymnasium was partially tertiary training. Of the 22 vacan- achieved in that all 4 planned cies for artisans to complete tertiary The planned output at the Advan- courses took place and 70 of the 76 training, 10 students did not meet ced Training Wing - 68 Air School students who were earmarked minimum requirements, while 12 was partially achieved in that 50 of attended the courses presented at learner opportunities were not used the 55 (90 per cent) planned cours- the SA Air Force Gymnasium. Of owing to no operational require- es took place and 1 164 of the the 70 students who attended the ment. Four students were unsuc- 1 194 (97,48 per cent) students courses 44 passed. The 26 who cessful in their studies. attended the courses presented by did not complete the courses were- the Advanced Training Wing. The owing to academic failure, medical All command and control training reductions were due to the restruc- reasons or withdrawals at own within the SA Air Force takes place turing of courses, cancellation of request. at SA Air Force Command and courses, and the non-availability of Control School. A total of 20 learn- instructors who were undergoing During the period it was planned to ing interventions, with 205 students, competency training. Of the 1 164 train 2 988 members in various were planned to take place during students who attended the courses fields of advanced training. A total FY 2002/03. The output was par- all passed. of 3 759 members were accommo- tially achieved in that 17 of the 20 dated for training. The escalation learning interventions were present- The Commodities and Services was due to an increased require- ed to 157 learners. One learning Training Wing, 68 Air School, will ment, changes in the validity period intervention was cancelled owing to become the DOD's Logistical of certain competencies and one of the two learners failing School of Training Pretoria Satellite unplanned training due to the South (Approach Course). The remainder with the amalgamation of supply African Excellence Foundation of the cancelled learning interven- support training. The amalgamation model implementation and the mini- tions were due to redesigning and a is in the final stages. The output mum requirement set for artisan shifting in training priorities. Of the was partially achieved in that 37 of status. 157 members who received training the 46 (80,43 per cent) planned 136 passed (87 per cent pass rate). courses took place and 480 of the All technical training was done at 68 574 (83,62 per cent) students Air School and various air servicing All intelligence and counter-intelli- attended the courses presented by units during FY 2002/03. Three gence training within the SA Air the Commodities and Services courses were planned for 83 learner Force takes place at the Joint Air Training Wing. The reductions engineers at universities and Reconnaissance Intelligence were due to the restructuring of Centurion College. 35 courses Centre. A total of 19 courses with courses, cancellation of courses, were planned for apprentice training 271 learners were planned to take and the non-availability of instruc- at Centurion College and 68 Air place during FY 2002/03. The out- tors who were undergoing training. School for 560 students. Three put was partially achieved in that 16 Of the 480 students who attended courses were planned for 60 arti- of the 19 courses were presented to the courses 435 successfully sans to complete full-time technical 145 learners. Three courses were passed. All who failed were given a tertiary training at various colleges. cancelled owing to the unavailability second opportunity and then The output was partially achieved. of learners on the one hand, and a passed. 78 learner engineering students shift in priorities of training (a more The output by the SANDF Fire attended engineering courses. Five advanced course was required for a Training School at the SA Air Force learner engineers were withdrawn lesser number of learners) on the Gymnasium was partially achieved from the training programme - three other. Of the 145 members actually in that all 6 planned courses took due to poor academic performance trained, 129 members completed place and all 157 students that and two at request for possible their training successfully. This were earmarked attended the remustering within the Air Force. means a pass rate of 89 per cent. courses presented at the SA 550 students attended apprentice- AirForce Gymnasium. Of the 157 training courses, of which eight All protection training within the SA students that attended the courses were from Lesotho. Two first-year Air Force takes place at the SA Air
78 Department of Defence Chapter 6
Force Gymnasium. 25 learning pro- 161 learners (including Individual ing (ETD) takes place at the Col- grammes for 590 learners were Study Phase students) did not com- lege for Educational Technology planned for FY 2002/03. The out- plete the courses. This was due to (COLET). The inability of the put was partially achieved as 296 failure and withdrawals at own COLET to accommodate the SA Air learners were trained at the SA Air request, resulting in a pass rate of Force's requirement for FY 2002/03 Force Gymnasium. Ten learning 80,2 per cent. led to the SAAF instituting a tender programmes were cancelled due to process to fulfil the requirement to logistical support problems. It was planned to train 360 mem- train ETD practitioners (trainers). bers at tertiary training institutions, One intervention totalling 128 learn- Two African Mission Deployment of which 100 were newly selected ers was planned. The output was (Burundi) Courses were presented to be year 2003 students. 338 partially achieved in that of the 128 at the Pienaars River training facili- members were accommodated for learners who attended the pro- ty. A total of 300 learners were tertiary training. The shortfall was gramme, 41 did not successfully planned for, and 270 achieved the due to factors such as individuals complete the course. This was due learning objectives. not being successful with their stud- to failure and withdrawals at own ies from previous years and the request, resulting in a pass rate of All basic military training within the postponement of studies by mem- 67,9 per cent. SA Air Force takes place at the SA bers on account of military courses Air Force Gymnasium. Six learning and operational deployments. The Occupational Health and programmes for 400 learners were Aviation Safety System had one planned for FY 2002/03. The train- The ceremonial activities of the SA major accident and four minor acci- ing output was partially achieved as Air Force Band for the FY 2002/03 dents. A Harvard aircraft of the 385 of the 400 learners planned for were a scheduled total of 68. The museum suffered an engine failure FY 2002/03 were trained at the SA actual number of ceremonial activi- and was destroyed in the subse- Air Force Gymnasium (96 per cent). ties for FY 2002/03 was 147. The quent forced landing. The pilot suf- All officers' development training increased number of activities was fered only very minor injuries. takes place at the SA Air Force due to ad hoc requests received MAJOR JOINT AND College. Twelve courses for 454 from within the DOD and the SAAF, COMBINED EXERCISES learners were planned for FY such as medal parades, official functions, farewell parades, funer- 2002/03. The planned output was Exercise AIRBORNE AFRICA partially achieved in that 12 courses als, flag-hoisting parades, and offi- cial ceremonies for foreign digni- took place and were attended by Duration. 2 to 13 June 2002. taries. 332 of the planned 454 learners Aim. To conduct a combined (73,1 per cent). The reduced num- airborne combat-readiness The participation of SA Air Force bers were due mainly to under-sub- exercise. uniformed members in organised scription of the courses. Nineteen Geographic Area. Theba sport increased by 1,5 per cent to learners did not complete the cours- Patswa AFB in Botswana and 44,5 per cent of the actual strength. es. This was due to failure and Maun. Only 15 of the 17 SA Air Force withdrawals at own request. This Nature of the Exercise. The Sports Code Championships were relates to a pass rate of 94,3 per exercise took place in the for- presented. The highlight of the cent. mat of a competition. 2003 sport year was the presenta- Participating Forces. tion of the annual SA Air Force All Non-commissioned Officers Members from 44 Parachute Sports Awards. Altogether, 57 (NCO) development training takes Regiment, Special Forces awards were handed out to SA Air place at the SA Air Force College. Brigade, Botswana Defence Force members who excelled in 22 courses for 1 110 learners were Force, Botswana Air Wing, 28 their sporting codes. planned for FY 2002/03. The Squadron and 101 Air Supply planned output was partially Physical training and the overall Unit. achieved as 19 courses were pre- attendance of fitness evaluations Description of the Exercise. sented to 811 learners. Three increased from 70,6 to 72,3 per The exercise included para- courses (110 learners) were can- cent with an initial 70,1 per cent. chute jumps and drops, sever- celled owing to non-requirement. Fitness programmes at most al marches and various shoot- The attendance of only 811 of the bases/units were implemented in ing exercises. planned 1 000 learners (81,1 per order to improve fitness levels. Results Achieved. The exer- cent) was due mainly to under-sub- cise was regarded as very scription of the courses and mem- All e-learning, Education, Training successful. bers not arriving for the courses. and Development Practitioner train- Losses. Nil.
2002-2003 Annual Report 79 Chapter 6
Exercise GOLDEN EAGLE Exercise IRON EAGLE SA Air Force and the SAMHS.
Description of the Exercise.
Duration. 31 May to 21 June Duration. 6 to 12 September The exercise was conducted 2002. 2002. to gain experience in the fight-
Aim. To evaluate the SA Air Aim. To exercise the air- er environment by exercising Force's operational capability borne elements of the SA defensive and offensive in a joint environment. Army during the annual force counter-air operations.
Geographic Area. Louis preparation cycle. Results Achieved. All formu-
Trichardt, Hoedspruit, Geographic Area. The lated objectives were Madimbo and Port Alfred Bloemfontein training area in achieved.
area. the Free State Province and Losses. No losses were
Nature of the Exercise. The Combat Training Centre at encountered. Only one inci- exercise was designed to Lohatlha. dent involving a F-15 Fighter
evaluate the interoperability of Nature of the Exercise. The aircraft from the USAF was equipment and procedures exercise was conducted in experienced when the aircraft between the participating two phases, namely BLACK suffered a hydraulic failure, services. HAWK, which was an inde- but landed safely at AFB
Participating Forces. pendent airborne exercise, Louis Trichardt. Various bases and squadrons and PEACE DOVE, which of the SA Air Force, 44 was a Peace Support exer- Exercise XYLOGRAPH Parachute Regiment, 10 Anti- cise.
aircraft Regiment, elements Participating Forces. 43 SA Duration. 7 to 10 October from the Artillery Formation of Brigade, 44 Parachute 2002.
the South African Army, two Regiment, SA Army Artillery Aim. To conduct mutual strikecraft from the SA Navy, Formation, SA Army Air training in order to develop one medical task team from Defence Artillery Formation, counter-terror (anti-siege) the South African Military SA Army Engineer Formation, drills, procedures and inter- Health Services (SAMHS), aircraft from the SAAF and operability between the partic- members from 4 and 5 the SAMHS. ipating forces.
Special Forces Brigade and Description of the Exercise. Geographic Area. The members from the SAPS Task The exercise was a peace "Verdrag" Training Area in the Force participated in the support exercise based on a Gauteng Province and Theba Exercise. real-time scenario (Burundi) Patswa AFB in Botswana.
Description of the Exercise. with emphasis on emergency Nature of the Exercise. This The exercise was executed in evacuation. was a combined exercise
two phases, namely a mar- Results Achieved. All the between the RSA and itime phase over the period 31 set objectives were achieved. Botswana.
May to 12 June 2002, and a Losses. Nil. Participating Forces. counter-air phase over the Special Forces Brigade from period 3 to 21 June 2002. Exercise TAPIOCA South Africa and the Botswa-
Results Achieved. All the na Commando Squadron.
formulated objectives were Duration. 23 to 29 Transport aircraft and helicop- achieved and the exercise September 2002. ters from the SA Air Force
was regarded as very suc- Aim. To provide training, and a medical task team from cessful. enhance interoperability and the SAMHS. Members from
Losses. A total of 496 hours promote co-operation between the SAPS Task Force also were flown without any aircraft the SA Air Force and the Uni- participated.
incident or accident. Unfortu- ted States Air Force (USAF). Description of the Exercise.
nately one member of the Geographic Area. AFB Louis A counter-terror exercise that SAPS's Task Force was fatal- Trichardt. included transportation of
ly injured during a night free- Nature of the Exercise. troops to Botswana, parachut- fall parachute exercise with 5 Exercise Tapioca was a multi- ing and fast-roping.
Special Forces Regiment national force preparation Results Achieved. All the northeast of Madimbo. exercise that coincided with set objectives were achieved.
the Africa Aerospace and Losses. One member was Defence Exhibition. injured and flown back to the
Participating Forces. USAF, RSA.
80 Department of Defence Chapter 6
Exercise OXIDE II clients such as the the 2 545 hours requested, 1 Presidency, Parliament, 595 hours were allocated,
Duration. 12 to 17 November Government departments and 1 399 hours were actu- 2002. and the SANDF. Of the 6 ally flown. Aim. To provide training, 170 hours requested, 2 645 The Regional Joint Task enhance interoperability and hours were allocated, and 2 Force East is responsible for co-operation between the 960 hours were actually area protection and border- SANDF and French forces at flown. Non-usage of hours line control operations within La Reunion. allocated to other clients the Kwazulu-Natal Province.
Geographic Area. La enabled a higher than Of the 2 070 hours request- Reunion. planned output. ed, 1 125 hours were allo- Nature of the Exercise. The The Joint Offensive Support cated, and 1 050 hours were exercise was designed to test Centre is responsible to actually flown. and evaluate search-and-res- DOD clients such as The Regional Joint Task cue procedures between the Government departments, Force South is responsible forces participating. and force employment for area protection and bor-
Participating Forces. Three requirements from within the derline control operations ships from the French forces SANDF as well as joint within the Eastern Cape stationed in La Reunion and deployments/exercises with Province. Of the 610 hours one ship and one Dornier air- foreign countries. Of the 3 requested, 553 hours were craft from Mauritius. 2 X 624 hours requested, 2 200 allocated, and 434 hours Hercules C-130 aircraft and 1 hours were allocated, and were actually flown. X Oryx helicopter on board 728 hours were actually Regional Joint Task Force the SAS Drakensberg with flown. The underutilisation West is responsible for area contingents from the SAMHS of these hours was due to protection, borderline con- and the Military Police Agency low request levels and, at trol, and maritime patrol (MPA). times, the non-availability of operations within the Cape
Description of the Exercise. aircraft. and Northern Cape The exercise was conducted The SA Air Force Command Provinces. Of the 3 320 as a search-and-rescue exer- Post is responsible for carry- hours requested, 1 805 cise with the aim of retrieving ing out the execution of SA hours were allocated, and survivors from the sea. Air Force autonomous 1 917 hours were actually
Results Achieved. All objec- humanitarian operations. Of flown. Non-usage of hours tives formulated were the 210 hours that were allocated to other clients achieved and the exercise can requested, 204 hours were enabled a higher than be regarded as very success- allocated and 164 hours planned output. ful. The Hercules C-130 air- were flown. There was a craft flew a total of 8 hours lower number of emergency The following paragraphs show fur- and 20 minutes and the Oryx flight requests and SAR inci- ther detail of the utilisation of flying helicopter flew 3 hours and 45 dents than expected. hours. minutes. The Regional Joint Task Outputs in Support of
Losses. Nil. Force Central is responsible Border Control (Operation for area protection and bor- INTEXO). During the year a OUTPUTS PRODUCED FOR derline control operations total of 1 519 hours were CLIENTS within the Gauteng, Free flown by various aircraft in State and North West support of the SA Army, SA Outputs in support of the Short-term Provinces. Navy and the SAPS for Force Employment Plan, 11 849 Of the 1 730 hours request- Operation INTEXO. hours were planned for FY 2002/03, ed, 1 722 hours were allo- Outputs in Support of 10 339 hours were flown in 3 937 cated, and 1 687 hours were Crime Prevention in Rural missions. The distribution of the fly- actually flown. Areas (Operation STIP- ing hours between the various The Regional Joint Task PER). During the year a users was as follows: Force North is responsible total of 2 895 hours were for area protection and bor- flown by various aircraft in The Joint Air Transport derline control operations support of the SA Army, SA Support Centre is responsi- within the Limpopo and Navy and the SAPS for ble for air transport to DOD Mpumalanga provinces. Of Operation STIPPER.
2002-2003 Annual Report 81 Chapter 6
Outputs for Humanitarian flights with a passenger Air Force to save on storage costs Assistance (Operation total of 38. paid to Denel on an annual basis.
HUMAN). During the year a Other dignitaries, state 314 accounts were brought back to total of 1 102 hours were guests and VIPs: 64 the SA Air Force, which led to a flown by various aircraft in flights with a passenger saving of five million Rand. support of Operation total of 517. HUMAN. The reported suc- Outputs in Support of Air A substantial effort has been cesses were as follows: Mobility for Important launched within the SA Air Force in Casualty evacuation: 35 People. During the year a order to reduce the inventory of patients. total of 1 052 hours were excess and redundant materiél. An Medical evacuation: 44 flown by various aircraft in SANDF work group was established patients. support of air mobility for to recommend improvements to the Search-and-rescue: 207 important people not includ- current disposal process, and those people rescued and 8 bod- ed in the previous para- recommendations have been imple- ies recovered. graph. 217 flights, with a mented within the SA Air Force. Fire fighting: 8 522 500 passenger total of 3 179, The new process allows for materiél litres of water delivered by were undertaken. to be transferred to ARMSCOR for helicopters. Outputs in Support of marketing according to a business Outputs in Support of Other Air Operations. plan that will render the best possi- Maritime Reconnaissance During the year a total of ble return to the State whilst reduc- (Operation HARDER). 1 730 hours were flown by ing the stock holdings more effec- During the year maritime various aircraft in support of tively. A tender of some 65 500 line patrol aircraft in support of other air operations. These items was held over the last two the SA Navy for Operation included communication weeks of March 2003 to address HARDER flew a total of 238 flights, area familiarisation, mainly the redundant materiél in hours. The reported suc- logistic support, communica- stock, whilst the SA Air Force's cesses were as follows: tion station repairs, and Strategic Transformation Plan 2012 Vessels logged: 756. training for other services also addresses the current actions Infringements: 10. and divisions. to rid systems presently in use of High interest: 4 (incidents Outputs in Support of excess materiél in order to return where suspect behaviour External Joint Operations those inventories to optimum and was identified). (Operations FIBRE and economic levels. A total of 64 for- Outputs in Support of Air MISTRAL). The following mal disposal boards were finalised Mobility for Diplomacy. outputs were delivered in during FY 2002/03. During the year a total of 1 support of external joint 803 hours were flown by var- operations and were flown ious aircraft in support of air over and above those flown An Air Force instruction, complying mobility for diplomacy. A in support of the Short- term with the requirements of the minis- summary of flights undertak- Force Employment Plan: terial directive on risk management, has resulted in a programme being en and passengers flown is B707 (Operations FIBRE as follows: and MISTRAL) - 336 drafted. It is currently undergoing the approval process for SA Air President T. Mbeki: 77 hours. Force instructions and it is expected flights with a passenger C130 (Operations FIBRE total of 509. and MISTRALl) - 144 to be ready for promulgation early in 2003. The process is in its infan- Deputy President J. Zuma: hours. cy and will not reach full maturity for 93 flights with a passenger Alo3 (Operation FIBRE) - total of 727. 68 hours. some time. An Air Force represen- tative has been appointed to serve Minister of Defence, Mr. Oryx (Operation FIBRE) - M.G.P. Lekota: 13 flights 60 hours. as a member of the newly formed with a passenger total of Risk Management Council at the 137. SERVICE DELIVERY Defence Secretariat. Former President, Mr N.R. IMPROVEMENT Mandela: 75 flights with a A crime strategy which strives passenger total of 393. Reductions in the SA Air Force toward crime prevention received a
Deputy Minister of inventory and clean-up process very high priority over the past year. Defence, Ms. N.C. were initiated in Denel to bring all Officers commanding of all AFBs Madlala-Routledge: 5 Air Force equipment back to the SA and units developed crime-preven-
82 Department of Defence Chapter 6
tion measures and these were con- Restructuring of the Aero Towards Vision 2012. The Air solidated and issued for implemen- Manpower Group contract is also Force Board, together with 60 of the tation throughout the SA Air Force. under way and progressing well. most senior SA Air Force leaders New control measures have been (including 30 senior warrant offi- implemented at all SA Air Force The Air Force Staff Council was cers), have been exposed to a cre- units. Field officers on duty and established in January 2003 as a ativity development programme to stay awake orderly officer duties corporate management forum to support the transformation process have led to a reduction in internal manage Air Force corporate issues leading to the new value system. crime rates. and for controlling and monitoring the implementation and execution USE OF CONSULTANTS The restructuring of logistic support of the Transformation Plan Towards is ongoing and there have been Vision 2012. The State Information Technology some reductions in the fixed portion Agency (SITA), Armscor and their of the SA Air Force's operating A new leadership model is in place subsidiaries are not classified as budget in FY 2003/04. These to implement culture change in consultants, the SAAF's usage of reductions have been applied to order to move to the new SA Air consultants is minimal. The follow- improving systems integrity as well Force value system in accordance ing tables indicate consultant usage as increasing flying-hour output. with the Transformation Plan over the reporting period.
Table 6.1. Report on Consultant Appointments using Appropriated Funds
Project Title Total Number of Consultants Duration of Contract who Worked on Project Work Days Value in Rand Specialised Engineering Support 2 55 152 617
Table 6.2. Report on Consultant Appointments using Appropriated Funds
Project Title Ownership by HDI Duration of Consultants from HDI Groups Work Days Groups on the Project Specialised Engineering Support 50% 40% 0
2002-2003 Annual Report 83 Chapter 7
MARITIME DEFENCE
ANNUAL REVIEW
The Financial Year (FY) 2002/03 the exception of the Item 10 budget was not without challenges for the (underspent by Rm2,8 owing to cir- SA Navy but the SA Navy, through cumstances beyond the SA Navy's the efforts of its people, met these control), a 100 per cent financial challenges in an admirable manner. authority figure was achieved by the In particular, closure had to be end of the year. Overall the finan- achieved on objectives such as the cial performance has been as building of capacity to release per- reflected in Table 7.1 below. sonnel, facilities and equipment for Failure to achieve a 100 per cent the new vessel acquisitions, the payment figure was partly due to all reduction of Folio 02 pay- inventories and ments not the implementa- being effected tion of measures INTRODUCTION by Armscor (but to ensure person- as orders were nel retention. At placed, the full the same time the SA Navy had to amount will be rolled over to FY ensure that the Chief Joint 2003/04), and due to Folio 01 pay- Operations' (CJ Ops') requirements ments being outstanding in the for- for vessel availability was main- eign course environment. tained. With minor exceptions the SA Navy has performed in accor- In respect of force employment, the dance with its plan and has hours that the SA Navy provided in achieved its objectives for the year. accordance with the plan were not The following is a brief overview of fully utilised by CJ Ops. This is a the major incidents. matter that will be addressed in the re-planning for FY 2003/04 in order In terms of planning and budgeting, to ensure that over-capacity does the Navy Plan carried an under- not occur. A highlight is the contin- funded risk of Rm186. To minimise ued assistance to the South African the risk of not delivering the requir- Police Service (SAPS) and the ed output, given the aforementioned Marine and Coastal Management underfunding, a key objective of the (MCM) Department in the curbing of SA Navy was to achieve a 100 per illegal smuggling of marine cent expenditure of its budget. With resources.
84 Department of Defence Chapter 7
2002-2003 Annual Report 85 Chapter 7
The SA Navy achieved most of its ed into that of Naval Base ner of the Level 3 Assessment force preparation objectives. The Simon's Town. (Public Service/Defence Sector) shortage of qualified personnel, The SA Navy was primarily involved since the inception of the SAEF in ships in refit and the non-availability with the outsourcing of the Simon's 1998. The evaluation process of vessels due to operational Town Naval Dockyard during the included a site visit to the unit by an defects, however, had a negative reporting period. The investigation independent team of assessors impact on the achievement of all into transferring the Naval Dockyard drawn from South African busi- objectives. Simon's Town to Armscor has been ness/organisations. completed. The implementation The scaling down of the SA Navy's plan is currently being designed. STRATEGIC PROFILE force structure proceeded as Once approved, the migration planned. The following units are no process will commence. In addition The mandate of the SA Navy is longer operational and are in the to the dockyard investigation, an drawn from the 1998 Defence process of administrative closure: investigation was also conducted Review. This mandate requires the The general support func- into the future establishment of a provision of naval forces as ele- tions of Naval Base Durban Warship Support Agency. This will ments of the SANDF maritime (and the associated infra- be processed further when current capabilities structure, equipment and initiatives involving the dockyard to counter an attack from personnel) have been trans- have been completed. seaward and on shipping; ferred to the SA Army to provide for interdiction of General Support Base The retention of scarce expertise the maritime battlespace (GSB) in Durban. has been previously recognised by once hostilities have begun; Usable depot stocks of the SA Navy as being of significant to provide for counter-offen- Naval Stores Depot Durban strategic importance. Accordingly, sive actions to drive the have been back-loaded to incentive mechanisms were devel- enemy from own or friendly the Naval Stores Depot oped, approved and implemented sea-space; Wingfield. within the two domains most con- to ensure that naval units Naval Armament Depot strained by loss of expertise, name- have the inherent ability to Durban's establishment has ly the combat and technical environ- function within the SANDF been incorporated into that ments. While insufficient time has command and control sys- of Naval Armament Depot elapsed from the date of implemen- tem at the required joint lev- Simon's Town and the facili- tation in order to statistically predict els; ty now functions as an the impact of the incentive scheme to continuously prepare such agency of the Simon's Town mechanism on attrition rates, quali- naval forces to act for the Depot until such time as it is tative analysis suggests that the defence of the country; transferred to the Chief of impact has been most favourable. to prepare specified naval Logistics. units to participate in opera- Activities at the Fleet Performance excellence was tions other than war; and Maintenance Unit Durban excelled. SAS WINGFIELD entered to maintain effective support have ceased. the SA Excellence Foundation capabilities to support all The function of SA Naval (SAEF) annual awards competition naval forces. Works has been incorporat- for 2002 and was the first ever win-
Table 7.1. FY 2002/03 Financial Performance - SA Navy
Capability Current (RM) Paid (RM) % Cash Flow Indicator Strategic Direction 368 358 97 Deviation < 5%. Combat Capability 94 94 100 Deviation < 5%. Logistics Support Capability 160 158 99 Deviation < 5%. Training Capability 88 86 98 Deviation < 5%. Base Support Capability 249 249 100 Deviation < 5%. Reserve Capability 15 15 100 Deviation < 5%.
86 Department of Defence Chapter 7
Following from the mandate, and Quality. The SA Navy has Sail training in the SA Navy. subject to the Constitution and other the ability to provide forces Administration of foreign laws governing the defence of the that are completely fit for learner opportunities. RSA, the SA Navy has determined purpose as and when Authorisation for its core business, mission and required. planning/work sessions and vision respectively as being Will. The SA Navy has the team building exercises. to fight at sea; willingness of its individuals, Staffing of Defence Act to win at sea; and units and the command (Uniformed) members in the to be unchallenged at sea. chain to become completely SA Navy. engaged in whatever task, Guidelines regarding selec- Based on the above, it is clear that from low-intensity peacetime tion and development of the SA Navy is to contribute to safe- activities to high-intensity candidates within the broad ty, security and welfare through the war fighting, with utter deter- parameters of the military strategic and operational deploy- mination to succeed. skills development. ment of its prepared naval forces. Respect. The SA Navy is The SA Navy management In order to do so the SA Navy has an admired yardstick against process. adopted the following strategic pro- which similar sized navies Establishment of mecha- file: throughout the world judge nisms promoting continuous Regional Reach. The SA themselves. learner partnerships within Navy has the ability to oper- the SA Navy. ate and sustain its forces During the past year the SA Navy Policy on tobacco smoking throughout the Southern has actively applied this profile in in the SA Navy. oceans and Southern African executing the Navy Plan. This has The use of private domestic littoral. been particularly apparent in the appliances in naval messes. Balance of Force manner in which its personnel have Policy on the management Capabilities. The size and applied themselves and in the man- of information wrt submarine shape of the SA Navy ner in which it has engaged the heavyweight torpedoes. results in a coherent military regional navies. Naval Order on post profiles capability across all relevant POLICY DEVELOPMENTS in the SA Navy. areas of maritime warfare, together with the ability to In accordance with the Navy Plan, DEFENCE CAPABILITIES operate these balanced strategic and force preparation AND OUTPUTS forces effectively, giving bat- direction must respectively be pro- tle-winning combat capabili- vided by Navy Office and Fleet MARITIME COMBAT CAPABILITY ty. Command. This is achieved by Interoperability. The SA inter alia the provision of policy and The Maritime combat capability pro- Navy has the ability to oper- guidelines. In addition, the Navy vides prepared and supported mar- ate jointly or in combination Office is responsible for co-ordinat- itime combat capabilities in accor- with whatever other forces ing the drafting of lower level poli- dance with the approved force may be required, whether cies and ensuring that these poli- design: the South African armed cies are aligned with departmental The surface combat capabili- forces, the armed forces of policies. All the SA Navy direc- ty prepares WARRIOR class the UN, the armed forces of torates are continuously involved in strike craft to conduct sur- the Southern African providing inputs on policy advice, face warfare operations: Developing Community both formal and informal. Utilisation objectives (SADC) or other nations or achieved for force prepa- civilian authorities. A total of sixteen DOD instructions ration but not for force Information Superiority. were received and implemented employment. The set tar- The SA Navy has the ability during the reporting period. In addi- get was 2 528 hrs for force to use information to achieve tion, eleven Level 2 policies (naval preperation (achieved 2 mission success by orders) were promulgated and im- 503 hrs) and 2 152 hrs for increased situational aware- plemented. These were mainly in force employment ness, interoperability and the human resources domain. The (achieved 944 hrs).
increased speed of informa- following is a summary of the poli- The readiness-level objec- tion flow, whilst protecting cies promulgated by the Navy for tive for force employment and preserving own informa- the period 1 April 2002 to 31 March was not met due to a tion assets. 2003. shortage of personnel
2002-2003 Annual Report 87 Chapter 7
because of training prepares CITY Class veys for the RSA and inter- requirements for the patrol Minesweepers and RIVER national organisations:
corvettes. This caused class minehunters to con- Utilisation objectives not the SA Navy to operate duct mine countermeasure achieved for force prepa- two strike craft at a higher operations: ration and force employ-
level of readiness, and two Utilisation objectives ment. The set target was at a lower level of readi- achieved for force prepa- 1 296 hours for force ness. ration but not for force employment (achieved The submarine warfare employment. The set tar- 108 hours) and 120 hours capability prepares DAPHNÉ get was 600 hours for for force employment Class submarines to conduct force preparation (achieved 99 hours).
submarine warfare opera- (achieved 2 803 hours) The ship went into a refit tions: and 1 080 hours for force at the end of April 2002
Utilisation objectives employment (achieved and therefore could not achieved for force prepa- 675 hours). meet its objectives. ration but not for force Insufficient hours were The operational diving capa- employment. The set tar- allocated for force prepa- bility prepares an operational get was 1 200 hours for ration during the reporting diving team to conduct div- force preparation period. The mine counter- ing operations:
(achieved 1 792 hours) measures capability was Utilisation objectives and 168 hours for force also curtailed by the lack achieved for force employ- employment (achieved of operational mine-hunt- ment but not for force pre- zero hrs). ing sonars and control paration. The set target
Only one submarine was systems. The two RIVER was 800 hours for force operated during the report- class vessels in commis- preparation (achieved 263 ing period. The lack of sion were thus operated in hours) and 1 200 hours for qualified personnel, stores training and patrol roles force employment and spares seriously cur- only. The lack of an oper- (achieved 3 585 hours).
tailed the deployment of ational systems support An extensive service was the submarine. This capa- baseline and equipment rendered to the SAPS bility will improve once the not suited for minesweep- and MCM in anti-poaching new submarines enter ing also inhibited the oper- operations. The time operational service. ational use of the CITY available for force prepara- The combat support and class vessel in commis- tion was negatively influ- sealift capability prepares sion. The vessel was thus enced by rendering this combat support ships to pro- operated in a training role service. vide support to combat ves- only. The berthing assistance sels and to provide a sealift The diving support and tor- capability prepares tugs to capability: pedo recovery capability pre- render a berthing service:
Utilisation objectives pares a diving support ves- Utilisation objective was achieved for force prepa- sel to conduct diving support not achieved. The set tar- ration but not for force and torpedo recovery: get was 1 787 hours for
employment. The set tar- Utilisation objective was force employment get was 1 200 hours for not achieved. The set tar- (achieved 1 316 hours).
force preparation get was 936 hours for Only one tug was opera- (achieved 3 131 hours) force preparation tional during the reporting and 4 608 hours for force (achieved 429 hours). period. employment (achieved 1 Major technical difficulties The inshore patrol capability 074 hours). resulted in repairs taking prepares inshore patrol ves-
The combat support ships longer than expected. sels to conduct patrols and doubled their force prepa- Personnel shortages also sea training:
ration hrs mainly due to resulted in the ship spend- Utilisation objectives the transit times for joint ing more time alongside. achieved for force prepa- force preparation exercis- The hydrographic survey ration but not for force es being considered as capability prepares a hydro- employment. The set tar- force preparation. graphic survey vessel to get was 456 hours for The mine warfare capability conduct hydrographic sur- force preparation
88 Department of Defence Chapter 7
(achieved 1 366 hours) Aim. To display the capabili- illegal fishing activities. The and 768 hours for force ties of the SA Navy to the stu- ship was assisted in the exe- employment (achieved dents of the Joint Senior cution of the operation by the 501 hours). Command and Staff periodic allocation of an MPA
The over-achievement of Programme. for contact reporting of specif-
force preparation hours Geographic Area. Simon's ic areas. The operation was due to the training Town/Saldanha/Simon's formed part of the ongoing required to qualify the new Town. Operation INTEXO.
officers commanding. Participating Forces. SAS Results Achieved. 31 fishing These vessels are more PROTEA, SAS DRAKENS- vessels, of which only 1 was readily available for force BERG, SAS ISAAC DYOBHA, boarded, were encountered employment as the level of SAS MAKHANDA and SAS and interrogated during the expertise rises. UMZIMKULU. patrol. The adverse weather
Short Description of the and sea conditions prevented EXERCISES AND OPERA- Exercise . The Task Group any further boardings and TIONS CONDUCTED conducted various exercises eventually resulted in the in order to display the capabil- shortening of the patrol. Operation OUTLINE ities of the SA Navy enroute Losses. No losses occurred. from Simon's Town to Duration/Dates. 4 - 12 April Saldanha. Of particular note Operation BOBCAT III 2002. were the exercises conducted Aim. To conduct a fishery in Saldanha, which included Duration/Dates. 09 - 24 patrol along the east coast of minehunting demonstrations, June 2002. the RSA. fast-roping exercises and a Aim. To transit to St Helena Geographic Area. Simon's helicopter diver jump display. Island to participate in the Town/Richards Bay/Simon's A naval gunfire support exer- Quincentenary celebrations. Town. cise was also conducted in Geographic Area. Simon's Participating Forces. SAS False Bay, together with a Town/St Helena GALESHEWE, together with replenishment at sea demon- Island/Simon's Town. members of the MCM and stration. Participating Forces. SAS SAPS. The Military Police Results Achieved. The exer- DRAKENSBERG. Agency (MPA) also assisted cise was of good value to both Short Description of the during the patrol. the SA Navy and the stu- Operation. The SA Navy Short Description of the dents. received an invitation from the Operation. CJ Ops tasked Losses. No losses occurred. Governor of St Helena Island the SA Navy to conduct a fish- for a naval ship to participate ery patrol in the RSA's EEZ Operation BACON in the Quincentenary celebra- (between the 200m and tions on the island. After the 1000m contours) in order to Duration/Dates. 13 - 16 May necessary authority was deter illegal fishing activities. 2002. obtained, the ship departed The ship was assisted in the Aim. To conduct a fishery for St Helena. During the execution of the operation by patrol along the east coast of transit to the island a number the periodic allocation of the the RSA. of exercises were conducted MPA for contact reporting of Geographic Area. Simon's to familiarise new members specific areas. The operation Town/Port Elizabeth/Simon's with the ship's routine and to formed part of the ongoing Town. carry out continuation training Operation INTEXO. Participating Forces. SAS for other members of the Results Achieved. 57 fishing ISAAC DYOBHA, together ship's company. Flying train- vessels, of which 7 were with members of the MCM ing was also conducted. On boarded, were encountered and SAPS. The MPA also arrival at St Helena Island, and interrogated during the assisted during the patrol. various functions were attend- patrol. Short Description of the ed by members of the ship's Losses. No losses occurred. Operation. Regional Joint company, which included the Exercise SONKE Task Force West (RJTFW) Queens birthday party, lunch- was instructed by CJ Ops to eon at the Governor's resi-
Duration/Dates. 05 - 07 May conduct a fishery patrol in the dence, Zulu dancing, a visit to 2002. RSA's EEZ in order to deter the Boer war graves, a
2002-2003 Annual Report 89 Chapter 7
wreath-laying ceremony and a the maritime wing of the Information and intelligence number of sporting activities. Namibian Defence Force. gathering proved that most
On completion of the festivi- Geographic Area. Simon's poaching activities in the area ties, the ship departed and Town/Walvis Bay/Simon's occurred at night. arrived safely in Simon's Town. Deployments were scheduled
Town. Participating Forces. SAS around intelligence reports
Results Achieved. The visit OUTENIQUA, SAS UMHLOTI received on a daily basis. was extremely successful and elements of the SA Air Patrol times were varied in from a public relations point of Force and SAMedical Health order to avoid a set routine.
view and many letters of Service. Results Achieved. The
praise and thanks were Short Description of the deployment was very suc- received from organisations Operation. CJ Ops tasked cessful as the poachers were on the island. the SA Navy to conduct a JTF deterred from entering the
Losses. No losses occurred. visit to Namibia. In the execu- water.
tion of this instruction, various Losses. No losses occurred. Exercise GOLDEN EAGLE exercises and internal drills were conducted enroute to Operation SPOOK
Duration/Dates. 10 - 14 Walvis Bay. Whilst alongside
June 2002. in Walvis Bay, the JTF hosted Duration/Dates. 29 July - 07
Aim. To participate in the a number of functions. A August 2002.
maritime phase of the SAAF's Bridge Watchkeeping Board Aim. To conduct an EEZ Exercise GOLDEN EAGLE was also held, together with patrol along the west coast of 2002. harbour patrol boat training. the RSA.
Geographic Area. Simon's The JTF sailed for Simon's Geographic Area. Simon's Town/Mossel Bay/Simon's Town on completion of the Town/Orange River Mouth Town. visit. /Simon's Town.
Participating Forces. SAS Results Achieved. The Participating Forces. SAS MAKHANDA and SAS ISAAC deployment was a success ASSEGAAI.
DYOBHA. and all objectives were met. Short Description of the
Short Description of the Losses. No losses occurred. Operation. CJ Ops tasked Exercise. CJ Ops tasked the the SAN to conduct a patrol in SA Navy to participate in the Operation AIRLANE the RSA's EEZ for purposes maritime phase of the SA Air of intelligence gathering. The
Force's Exercise GOLDEN Duration/Dates. 22 July - 08 deployment was conducted in EAGLE 2002. The exercise August 2002. three phases; a dived transit
was conducted between Aim. To assist the MCM and from Simon's Town to the Mossel Bay and Cape Point. SAPS in an effort to combat designated patrol area, fol- Two tandem exercises were the poaching of marine lowed by a surveillance and conducted, one en route to resources. intelligence gathering phase
Mossel Bay and one en route Geographic Area. Simon's and a dived transit to Simon's to Simon's Town. Town/Gansbaai/Hermanus/Be Town. Significant merchant
Results Achieved. The exer- tty's Bay/Simon's Town. shipping activities were
cise was successful from the Participating Forces. One encountered between Cape point of view that it highlighted inshore patrol vessel and one Point and Cape Town, with a number of command and operational diving team. trawler activities between
control shortcomings that Short Description of the Saldanha and Lamberts Bay. need to be resolved. Operation. CJ Ops tasked Only two offshore mining ves-
Losses. No losses occurred. the SA Navy to assist the sels were observed in the MCM and SAPS in an effort to patrol area. A number of Interoperation WEST combat the poaching of Soutpansberg Military fishing marine resources. The partic- vessels were observed in the
Duration/Dates. 22 July - 3 ipating forces were utilised to anchorage of Port Nolloth. An August 2002. conduct coastal and inshore unsuccessful photo and video
Aim. To conduct a Joint Task patrols between the areas of reconnaissance were conduct- Force (JTF) visit to Namibia Quinn Point and Gansbaai, ed off Oranjemund. The fail- with the purpose of promoting including Dyer Island and from ure was due to the prevailing and strengthening ties with Hermanus to Hangklip. atmospheric conditions at the
90 Department of Defence Chapter 7
time. This exercise was, how- Results Achieved. The oper- Aim. Exercise OXIDE II (12 - ever, successfully repeated off ation was successful. 17 November 2002) was a
Port Nolloth. Losses. No losses occurred. force employment exercise
Results Achieved. The patrol and Exercise RUST (4 - 11 was considered a partial suc- Exercise RED LION November 2002 and 17 - 22 cess ito the objectives to be November 2002) a force
achieved. Duration/Dates. 14 - 25 Oct- preparation exercise. Exer-
Losses. No losses occurred. ober 2002. cise OXIDE II was designed
Aim. To prepare forces for to provide training, enhance Operation TANKER TWO future force employment by interoperability and co-opera- CJ Ops. This included prov- tion between the SANDF and
Duration/Dates. 16 August - ing the SA Navy's ability to French forces. Exercise 12 September 2002. support forces while away RUST was utilised for prepa-
Aim. To shadow the from a home base. ration training on the transit to
Greenpeace ship MV ESPER- Geographic Area. Simon's and from La Reunion.
ANZA (ESP) from Cape Town Town/Port Elizabeth/Simon's Geographic Area. Simon' s to Durban. Town. Town /Durban/La Reunion
Geographic Area. Simon's Participating Forces. SAS /Simon's Town.
Town / Cape Town / Durban / OUTENIQUA, SAS DRA- Participating Forces. SAS Cape Town. KENSBERG, SAS UMZIMKU- DRAKENSBERG, SAS
Participating Forces. SAS LU, SAS UMHLOTI, SAS MAKHANDA and SAS MAKHANDA, SAS ASSEGAAI, SAS GALESHEWE.
GALESHEWE, SAS UMZ- GALESHEWE, SAS Short Description of the IMKULU, inshore patrol ves- MAKHANDA and SAS KAPA. Exercise. The task group
sel, harbour patrol boats, 4 Short Description of the conducted various exercises Special Force Regiment Exercise. During the pas- in accordance with the (RSF) and SAPS task force sage to Port Elizabeth, vari- Exercise RUST programme elements. ous exercises and internal en route to Durban. The task
Short Description of the drills were carried out by the group went alongside in Operation. CJ Ops instructed task group. These exercises Durban for one day after the SA Navy to shadow the and internal drills were evalu- which it sailed for La Reunion. ESP when the vessel sailed ated by the Oper-ational Sea Once again various exercises from Cape Town to intercept Training Team to ensure the were conducted during this the PACIFIC TEAL, carrying maintenance of standards. phase. On arrival at La plutonium to the United King- The task group then went Reunion the task group went dom. On completion of this alongside in Port Elizabeth for alongside at Le Port, after interception, the ESP returned three days after which they which all forces were briefed to Cape Town harbour. The sailed for Simon's Town. on the conducting of the vessel again sailed a few Various exercises were again search-and-rescue exercise. days later and launched a carried out on the return pas- Four nations participated in rubber boat off the Koeberg sage to Simon's Town. Unfor- the exercise, namely Mada- Nuclear Power Station, which tunately the missile/torpedo gascar, Mauritius, Reunion subsequently resulted in the firing was cancelled due to (French forces), and the RSA. "attack" on the Power Station adverse weather conditions. On completion of the briefings
by activists. The ESP was Results Achieved. The exer- the forces sailed in accor- again shadowed whilst prepa- cise was of immense value to dance with the exercise rations got underway in the SA Navy with regard to instructions. The ensuing Simon's Town to load equip- the general preparation for search-and-rescue exercise ment, 4 SFR and SAPS per- future employment by CJ Ops. was very successful and all
sonnel on board one of the Losses. No losses occurred. parties benefited from it. On participating vessels. The completion of the exercise the shadowing operation contin- Exercise OXIDE II / RUST task group sailed from Le Port ued up the east coast to and reverted to the Exercise
Durban and back to Cape Duration/Dates. 4 - 11 RUST programme for the Town until the ESP finally left November 2002, 12-17 transit back to Simon's Town. the Cape Town area on November 2002 and 17-22 The two strike craft proceeded 11 September 2002. November 2002. to Durban, whilst the SAS
2002-2003 Annual Report 91 Chapter 7
DRAKENSBERG continued Operation CATEMBA voyage to Walvis Bay, the on her passage to Simon's normal internal drills and exer-
Town. The task group again Duration/Dates. 01 - 07 cises were held. On arrival in rendezvoused off Mossel Bay December 2002. Walvis Bay the ship anchored
and proceeded to Simon's Aim. To conduct a fishery and proceeded to unload the Town. patrol along the east coast of harbour patrol boats. On
Results Achieved. The exer- the RSA. completion of the handing-
cise was a success as all Geographic Area. over ceremony, the vessel objectives were achieved. Durban/Richards Bay/Durban. sailed for St Helena island.
Losses. No losses occurred. Participating Forces. Further exercises were con- Inshore patrol vessel. ducted during the passage to
Operation SALIENT Short Description of the the island. On arrival at the Operation. The vessel sailed island, an official call was
Duration/Dates. 6 - 15 as planned but had to return made on the Governor of the November 2002. to Durban because of adverse island and a reciprocal call
Aim. To conduct a fishery weather conditions. She how- was made to the ship by patrol along the south and ever sailed again early the guests from the island. In the east coasts of the RSA. next morning and headed meantime the yachts were
Geographic Area. Simon's north towards Richards Bay. loaded and the ship's crew Town /Port St Johns/Simon's The weather conditions were were given the opportunity of Town. favourable on sailing but dete- visiting places of interest on
Participating Forces. SAS riorated about 30 nm south of the island when not required UMHLOTI, together with Richards Bay, which forced onboard for watches or assist- members of MCM and SAPS. the vessel to seek shelter in ing with the loading of the The MPA also assisted during Richards Bay. As the weather yachts. On the return voyage the patrol. conditions did not improve to Cape Town the vessel
Short Description of the sufficiently, the vessel was experienced engine problems, Operation. The ship sailed ordered to return to Durban. which were repaired after the
from Simon's Town and suc- Results Achieved. No ves- main engines were shut down. cessfully boarded a number of sels were encountered owing The vessel then proceeded Soutpansberg Military fishing to the adverse weather condi- and arrived safely in Simon's vessels in the vicinity of Cape tions. Town.
Point. The ship unfortunately Losses. No losses occurred. Results Achieved. Despite had to return to Simon's Town the engine defects experienc- harbour to effect repairs to an Operation WIREBIRD ed during the passage, all operational defect. She sailed objectives were met and the
again later in the day and pro- Duration/Dates. 05 - 23 operation was deemed a suc- ceeded to Betty's Bay where December 2002. cess.
suspicious divers were detect- Aim. To deliver 2 x harbour Losses. No losses occurred. ed in the water (these divers patrol boats to Walvis Bay for were interrogated by the the Maritime Wing of the Operation COLD CUT SAPS). The ship proceeded Namibian Defence Force and
on her voyage and went to uplift the yachts that partici- Duration/Dates. 27 February alongside in Port Elizabeth. pated in the Governors Cup - 10 March 2003.
From Port Elizabeth the area Yacht Race between Cape Aim. To assist the to Mossel Bay and Simon's Town and St Helena Island. Department of Environment,
Town was again patrolled with Geographic Area. Simon's Agriculture and Tourism intermittent sightings, board- Town/Walvis Bay/St Helena (DEAT) in transporting a ing and interrogation of fishing Island/Simon's Town. member of Department of
vessels. The ship was assist- Participating Forces. SAS Public Works (DPW), equip- ed in the execution of the OUTENIQUA, SA Air Force ment and spares to effect operation by the periodic allo- and SAMHS elements. repairs to refrigeration equip-
cation of the MPA for contact Short Description of the ment and to take victuals to reporting of specific areas. Operation. The vessel's sail- Gough Island.
Results Achieved. 12 boats ing was delayed by one day Geographic Area. Simon's were boarded. due to operational defects that Town/Gough Island/Cape
Losses. No losses occurred. had to be repaired. On its Town/Simon's Town.
92 Department of Defence Chapter 7
Participating Forces. SAS cessful even though no illegal Navy provides and funds the OUTENIQUA, SAAF and fishing activities were detect- Permanent Secretariat for the SMC. SAMHS elements. ed or encountered. Short Description of the Losses. No losses occurred. CONFERENCE ON WARSHIP Operation. The vessel sailed SUPPORT IN AFRICA AND LAW for Gough Island as planned Operation WAVE SCAN ENFORCEMENT AT SEA and carried out internal drills and exercises during the pas- Duration/Dates. 11-14 In response to the SMC's request sage. On arrival at the island March 2003. for a regional workshop on Law the DPW members and equip- Aim. To assist the Institute Enforcement at Sea, the SA Navy ment were flown to the island for Maritime Technology (IMT) co-hosted a conference with IMT in to commence with the repairs with the transporting and lay- Simon's Town over the period 13- to the defective refrigeration ing of wavescan buoys at 14 February 2003. All SADC coun- equipment. On completion of Elands Bay and Lamberts tries were invited to send represen- the repairs, the victuals were Bay. tatives to the conference. The aim transferred to the island. The Geographic Area. Simon's of the conference was to address vessel then shaped course for Town/Hout Bay/Elands Bay/ the two interrelated topics of Law Cape Town and the ship's Lamberts Bay/Simon's Town. Enforcement at Sea and Warfare company settled into a normal Participating Forces. SAS Support in Africa with the view of routine. UMZIMKULU. developing viable recommendations Results Achieved. The Short Description of the for future consideration by the SMC. deployment was deemed to Operation. The vessel sailed The conference was well-attended have been successful as all from Simon's Town and and received positive media cover- objectives were met. shaped course for Hout Bay age. Losses. No losses occurred. where one of the wavescan buoys was to be uplifted. On Operation INTEXO completion of this task the MAPPING OF THE CONTINENTAL vessel shaped course for SHELF FOR PURPOSES OF INSTITUTING TERRITORIAL Duration/Dates. 03 - 06 Elands Bay. On arrival at March 2003. Elands Bay, the wavescan CLAIMS
Aim. To conduct a fishery buoy was successfully laid. patrol along the south-east The vessel then proceeded to The United Nations Law of the Sea coast of the RSA. Lamberts Bay where the sec- Convention (UNCLOS) was signed by the RSA in January 1998. Geographic Area. Port ond wavescan buoy was suc- Elizabeth/East London/Port cessfully laid. The vessel Under UNCLOS the RSA claimed a Elizabeth. then proceeded back to 200 nm maritime EEZ. Further claims for an extended continental Participating Forces. SAS Simon's Town. shelf beyond 200 nm must be sub- UMZIMKULU, SAS UMHLOTI, Results Achieved. The SAS KAPA, together with deployment was deemed a mitted to the UN by 2009 and must members of the MCM and success. include extensive bathymetric, seis- mic, magnetic and gravimetric sur- Border Police. Losses. No losses occurred. veys. In addition the adjacent mar- Short Description of the Operation. The task group ACTIVITIES UNDERTAKEN itime boundaries with French island sailed from Port Elizabeth and TO ACHIEVE THE OBJEC- possessions in the Southern Indian patrolled the designated patrol TIVES OF GOVERNMENT Ocean, Mozambique and Namibia area, en route to East London must be finalised. to take on bunkers. On STANDING MARITIME departing from East London COMMITTEE The Petroleum Agency of SA has the task group sailed to Port overall responsibility for the project Elizabeth. On arrival in Port The SA Navy is actively involved in and has established a steering Elizabeth the members of the Standing Maritime Committee committee to oversee the project. MCM and Border Police were (SMC) of the SADC's Inter-State The SA Navy's hydrographer is a landed, after which the task Defence and Security Committee member of the committee along group carried on with their (ISDSC). The last plenary session with representatives of the other exercise programme. was held in Luanda under Angola's State departments and applicable
Results Achieved. The chairmanship over the period 21-23 agencies. patrol was deemed to be suc- August 2002. Currently the SA
2002-2003 Annual Report 93 Chapter 7
It is planned that the SA Navy's sur- in the region, in conjunction with the TRAINING PROVIDED TO OTHER vey vessel, the SAS PROTEA, will Southern Africa and Islands AFRICAN COUNTRIES complete the required surveys over Hydrographic Commission (SAIHC). a period of two years commencing The SA Navy's hydrographic sec- The following is a summary of train- in 2004. tion plays a key role in SAIHC. ing provided by the SAN to African Improved charting is an essential countries: Angola - 2. HYDROGRAPHY IN THE SADC component of integrated coastal Ghana - 10. REGION management within the region. Lesotho - 2. Programmes being developed in Malawi - 1. SADC member countries are signa- this regard have the objective of Mozambique - 1. tories of the SADC Protocol on uplifting the living standards of the Namibia - 26. Transport, Communications and inhabitants of the coastal areas by Nigeria - 14. Meteorology, and have agreed to reducing insurance tariffs for ves- Seychelles - 1. co-operate in developing the stan- sels entering and leaving ports Swaziland - 2. dard for hydrographic practice with- throughout the region. Tanzania - 13.
94 Department of Defence Chapter 8
MILITARY HEALTH SERVICE
ANNUAL REVIEW
The health and healthy lifestyle of Reserves has passed the 50 per the patients of the South African cent mark in achieving representivi- Military Health Service (SAMHS) ty. Although more than 58 per cent remain of cardinal importance to the of Reserve Force members are organisation. This is, however, not African, Coloured and Indian, in the the responsibility of the SAMHS overall figures the bulk of these are alone but also that of each individ- in the entry level, while the top and ual in the organisation. The output middle orders are still predominant- of the SAMHS is very much influ- ly White. enced by the health profile of the patients and only rough estimates The Inter-State Defence and Se- are available of what disease pat- curity Committee (ISDSC) Health terns can occur. Work Group It should there- decisions are fore be realised starting to take that the output of INTRODUCTION effect and are this organisation being imple- is subject to mented. The changes in the health environment. management of HIV/AIDS is receiv- ing high priority and there is a sin- Through the management and spe- cere will to combat this disease cific decisions taken by the SAMHS throughout the military establish- executive, the SAMHS was able to ments in the Southern African host a very effective International Development Community (SADC) Congress of Military Medicine region. (ICMM). This benefited the SAMHS members through international SAMHS also participated in regional exposure and intellectual exchange sports activities through the Interna- of ideas at an internationally-recog- tional Council of Military Sport nised congress. (CISM). A Joint Working Commit- tee has been established where The SAMHS Reserves was the first representatives from the SANDF, ever non-NATO organisation to be the SA Police Service (SAPS) and admitted to the Confederatio the Department of Correctional Internallie des Officiers Medicaux Services will liase with the SA des Reserves (CIOMR) as an asso- Sports Commission to exploit possi- ciate member. The SAMHS ble areas of mutual cooperation.
2002-2003 Annual Report 95 Chapter 8
96 Department of Defence Chapter 8
Internally, the SAMHS was tasked The deployment of SAMHS person- establishment. with the training of SADC member nel in Operation MONUC and The SAMHS is committed to countries' medical orderlies. The Operation FIBRE posed certain providing the best possible decision is now being realised with challenges, but shows the SAMHS's health care to every patient the completion of the Regional ability to conduct its priority func- during peacetime and in Military Health Training Centre in tions whilst maintaining a secondary times of conflict. Thaba Tshwane. The centre was function in base facilities. The SAMHS strives to upgraded through donor funding empower its clients in their from the United States of America STRATEGIC PROFILE own health management (USA) and ensures that health train- through communication. ing for operational emergency care Vision Statement. The vision The SAMHS is an organisa- orderlies in the military clusters will statement " A healthy military com- tion that portrays the caring be at the same standard as and munity" was drawn from the man- side of life through support also comply with RSA national date and task placed on the given to its own members health care standards. The formal SAMHS. This implies the following: and its adversaries. opening of the centre was planned Health must be seen as the for June 2003. responsibility of the individ- Mission. The mission of the ual, as well as of the organi- SAMHS is to provide a comprehen- The SAMHS health courses includ- sation to its members. sive, excellent, self-supporting, ed members from several African Health encompasses the multi-disciplinary military health countries. This not only builds physical, psychological and service that ensures a healthy mili- capacity, but also indicates the will- social dimensions of every tary community. The operationali- ingness of the SAMHS to embrace member and his/her depen- sation of the mission entails the the New Partnership for Africa's dants. provision of strategic direction to Development (NEPAD) principles The SAMHS has the inher- provide health capabilities over the and involvement with national priori- ent ability to provide special- total spectrum, establishing and ties. In this area the SAMHS is in ist health inputs and advice maintaining a force structure, train- consultation with the Lesotho in support of the SADC. ing human resources, maintaining Defence Force to establish a sus- The SAMHS is structured to health facilities and equipment and tainable military health capability. provide a health service on preparing military health capabili- the primary, secondary and ties. tertiary military health levels Common commodities remain a to serving and retired mem- The core business of the SAMHS is problem area, as central procure- bers, their dependants and to combat disease and injury to the ment actions are creating delays approved clientele, whilst best of its knowledge. This is that are beyond the control of the being self-supporting regard- accomplished by the following: SAMHS. The shortage of general ing health logistics. Rendering a comprehensive, commodities, especially clothing, The SAMHS has the inher- excellent, self-supporting, hampers the effectiveness of the ent capability to operate multi-disciplinary military SAMHS. This includes low levels of jointly in support of its clients health service that ensures a serviceability of vehicles which will in the combat theatre. healthy military community. influence the efficiency of SAMHS. Knowledge is power, also in Investing in human health. The SAMHS strives resources, reinforced by rel- The SAMHS is proud of the fact to be up to date with the lat- evant technological equip- that Col Ben Steyn, the Chemical est health information, equip- ment and resources. and Biological Defence Advisor to ment and procedures to the Surgeon General, formed part ensure a dedicated service POLICY DEVELOPMENTS of the delegation to Iraq to try and to all its patients. avert war. This is indicative of the The SAMHS, through its The list and dates of DOD instruc- knowledge and experience levels statutory obligations, human tions (DODI) originating from the still available in the SAMHS. capital and health equip- Surgeon General and SAMHS ment, is able to provide qual- orders promulgated between 1 April The situation regarding the condi- ity care to its clients. 2002 and 30 March 2003 are indi- tion of SAMHS' buildings remains a The SAMHS is respected in cated in the table below. serious concern. This matter is cur- the Southern African region rently being addressed at director as a quality health care general level. provider for the military
2002-2003 Annual Report 97 Chapter 8
Table 8.1. General and SAMHS Orders Promulgated: FY 2002/03
Policy Title Date Promulgated Occupational Health and Safety in the DOD 03 April 2002 Implementation of Standard Biokinetic Evaluations 23 May 2002 SAMHS Patient Administration Policy and Procedures 21 June 2002 Revised Tobacco Policy in the DOD July 2002 Appointment of Honorary Colonels in the SAMHS 14 October 2002 Defence Against Chemical and Biological Weapons and Radioactive Materials 11 November 2002 Policy on the Route of Citations for Bravery and Merit Awards 30 November 2002
DEFENCE OUTPUTS AND The prescription function is The cost of initial prescribed CAPABILITIES reflected in two tables. Table medication is Rm67. The 8.2 indicates those prescrip- cost of dispensed medicine OUTPUTS tions prescribed by a service was Rm104. More important provider and is a close is the cost escalation per The following statistics indicate the reflection of real consulta- quarter. Over the period the most visible service outputs of the tions as it is captured in time escalation was in the order SAMHS: to comply with statutory reg- of 18 per cent on medicines About 1 112 767 consulta- ulations pertaining to the dis- and, until the third quarter, tions were conducted at a pensing of medicines. Table approximately 25 per cent. cost of Rm 110 during the 8.3 reflects the number of This is clearly under current period under review. prescriptions dispensed. funding principles an
Table 8.2 Prescriptions Prescribed by SAMHS: FY 2002/03
Period Prescriptions Items Prescription Average Items Average Cost Average Cost Cost Per Script Per Item Per Script (R) Apr - Jun 280 399 815 522 15 622 874 2,9 55,72 55,72 Jul- Sep 270 673 791 846 17 673 443 2,9 65,29 65,29 Oct - Dec 232 970 652 821 17 804 803 2,8 76,43 76,43 Jan - Mar 235975 657602 16 510 458 2,8 69,97 69,97 Total 1 020 017 2 917 791 67 611 578 2,85 66,85 66,85
Table 8.3 Prescriptions Dispensed by SAMHS: FY 2002/03
Period Prescriptions Items Prescription Average Items Average Cost Average Cost Cost Per Script Per Item Per Script (R) Apr - Jun 336 455 990 686 23 458 477 2,9 23,68 69,72 Jul- Sep 328 640 967 036 26 748 994 2,9 27,66 81,39 Oct - Dec 300 601 860 348 29 410 053 2,9 34,18 97,84 Jan - Mar 289 967 819 838 24 541 094 2,8 29,93 84,63 Total 1 255 663 3 637 908 104 158 618 2,88 28,86 83,4
98 Department of Defence Chapter 8
Table 8.4 Admissions to SAMHS Facilities: FY 2002/03
Period In-patients Intensive Ward In-patient Average In-patient Average In- Care Unit Days Days Length of Cost patient Cost Days Stay Per Day (R) Apr - Jun 9 275 1563.45 29 598 31 161 3.4 13 504 906 433 Jul- Sep 8 899 1372.35 28 325 29 697 3.3 12 598 260 424 Oct - Dec 5 859 704.4 15 233 15 937 2.7 6 686 858 419 Jan - Mar 8 451 1041.49 24 295 25 336 3 10 449 024 412 Total 32 484 4681.69 97 451 102 131 3.1 43 239 048 422
unhealthy situation, given (See Table 8.4). most appropriate handling of specif- the principle that all patients ic health-related cases. This is have to be treated and can- The structure and distribution of mainly because it is neither cost- not be denied medication. SAMHS facilities mean that in some effective nor viable to have a doctor cases external referrals must take at each SAMHS facility. Referrals The admissions to SAMHS facilities place. The SAMHS was able to to military medical institutes were are treated in a cost-effective man- restrict referrals to non-military hos- not made on the bases of the ner, as indicated by the average pitals to 2 499 patients. patients' health profiles, but on who length of stay. The cost factor for were treatable in the SAMHS. treatment in own facilities at The nature of the SAMHS core Referrals to private facilities were Rm43,2 is far less than it would business is such that referrals will made when military capacity was have been in the private sector always take place to ensure the not available for cost-effective rea- sons. For instance, it is not cost- effective to have very expensive Table 8.5. Admissions of SANDF Patients to Non-military internal facilities for rarely occurring Hospitals: FY 2002/03 diseases.
In the period under review 868 Period Out Hospital Days Patients patients passed away (See Table Apr - Jun 1 895 673 8.7). This reflects a mortality rate of 11,5 per thousand members of the Jul- Sep 1 848 683 DOD, based on a figure of 75 000. Oct - Dec 1 630 597 If this is extrapolated to the poten- Jan - Mar 1 451 546 tial military patient population of Total 6 824 2 499 approximately 300 000, the rate drops to 2,9 deaths per 1 000.
Table 8.6. Referrals: FY 2002/03
Period Referrals Referrals Referrals Referral X-Rays X-Rays X-Rays Lab Test Lab Test Lab Test MMI Non Mil Private Total Private MMI Total Private MMI Total Apr - Jun 2 091 694 4 717 4 717 1 947 14 659 16 606 17 672 168 751 186 423 Jul- Sep 2 236 460 4 800 4 800 1 402 13 449 14 851 15 456 179 575 195 031 Oct - Dec 1 889 346 4 278 4 278 1 197 12 415 13 612 13 349 171 594 184 943 Jan - Mar 2 057 384 5 065 5 065 1 025 11 546 12 571 11 406 192 045 203 451 Total 8 273 1 884 18 860 18 860 5 571 52 069 57 640 57 883 711 965 769 848
2002-2003 Annual Report 99 Chapter 8
Table 8.7. Mortality: FY 2002/03 Processes are not regularly reviewed and updated. Customer and stakeholder Period Male Female Total satisfaction is not measured. Apr - Jun 172 72 244 Supplier performance is not monitored. Jul- Sep 189 81 270 Resolution of complaints is Oct - Dec 103 70 173 not done systematically. Jan - Mar 117 64 181 Some departments at unit Total 581 287 868 level do not have business plans.
Specific areas of achievement in the inspectorate environment were: SAMHS CAPABILITIES Some of the formations have A holistic control section has already changed their quar- been created at the SAMHS. The Surgeon General and staff pro- terly performance feedback The main functions of this vide strategic direction to the to be in line with the eleven section would be to capture Defence Health Programme through criteria set by the SAEM. In relevant information on a the formulation, promulgation and doing so, an awareness of database, process this infor- control of strategy, policies, plans performance excellence is mation and provide regular and advice in order to prepare and created and strengthened at reports to top management provide the health capabilities all levels. in respect of financial mis- required by the Chief of the The first SAMHS Quality conduct, criminality and SANDF. Award was awarded to the management of risks. Institute for Aviation The SAMHS Quality Award In the inspectorate environment 106 Medicine during the annual (Certificate) was introduced inspection reports were produced, awards evening of the by the SAMHS Inspectorate and this is graphically displayed in SAMHS in November 2002. and awarded for the first Figure 8.1 below. The Area Military Health Unit time in November 2002. It is Eastern Cape and 7 Medical envisaged to institute a float- The SAMHS Inspectorate was also Battalion Group were close ing trophy with effect from tasked with conducting four boards contenders for the award. November 2003, which will of inquiry during the period of SAMHS members have be awarded to the winner of reporting. The reports highlighted adopted the Batho Pele prin- the SAMHS Quality Award. the following positive aspects: ciples and continuously The staffing process of uni- strive to execute service de- The SAMHS Reserves is showing formed members is nearly livery according to these growth and revival, though at a slow completed. Most of the principles. The SAMHS pace, and the following positive staffed members reported at communication initiative to- aspects were experienced during their new units, which posed wards combating HIV/AIDS, the FY 2002/03: a challenge, namely for the Project MASIBAMBISANE, The SAMHS was the first training and in-post-training was fully supported at all the ever non-Nato organisation of all new members. units that were inspected. to be admitted to the The South Afican Excellence Confedaratio Internallie des Model (SAEM) has been Performance Excellence. The fol- Officiers Medicaux des implemented at all lower lowing general concerns were high- Reserves (CIOMR) as asso- units, and key members, lighted by the Inspectors: ciate member. The Reserve including officers command- Members do not keep re- Force Council played a ing of all units have attended cords to show the results on major part, alongside the the self-assessment training. their performance. Reserves Directorate in During the next inspection Recognition initiatives. achieving this goal. cycle starting off in Novem- General lack of review of SAMHS is part of Project ber 2003, the implementa- standard working proce- PHOENIX, the project for the tion of the model at service dures. revival of the Reserves. The and lower levels of the People satisfaction is not Parliamentary Portfolio SAMHS will be facilitated. measured. Committee on Defence has
100 Department of Defence Chapter 8
Figure 8.1. SAMHS Inspection Reports: FY2002/03
Inspections (106 Reports)
Possible Financial Misconduct 2
Facility Management 2
Gainful Employment 5
Funds and Institutions 2
Communication with Ambulances 2
Morale and Discipline 3
Handing and Taking Over 3
Stock Control 3
Accreditation for Training for CPD 3
CPD 3
Peer Review 3
Medical Accounts 3
Handling of Medical Waste 3
In-post-training 3
Recruiting 3
Patient Admin 3
Pharmacy Control 3
Loss Control 3
Labour Relations 3
Staffing 3
Information Technology Management 10
Military Security 13
OHS 13
Performance Excellence 12 02468101214
Period 01/04/2002 to 31/03/2003
also committed itself to sup- African, Coloured and Asian, Trauma Life and Saving porting these initiatives. in the overall figures the bulk (BATLS/BARTS) courses are The SAMHS Reserves has of these are at the entry lev- primarily run by Reserve passed the 50 per cent mark els, while the top and middle instructors and are widely in achieving representivity. orders are still predominantly supported. Although more than 58 per White. cent of the Reserves are The Battle Field Advanced The following negative aspects are
2002-2003 Annual Report 101 Chapter 8
hampering growth and flexibility in health processes and policies by ensures that training maintains the following areas: unit commanders through negotia- momentum through communication Owing to the extensive train- tion with lower level units for a with other Services and Divisions ing period of Operational regional commanders workshop to and Level 3. Lesson plans on plan- Emergency Care Orderlies take place to address the imple- ning and budgeting were developed (OECOs), a general short- mentation of the above policy, as and presented on the HIV/AIDS age of "current" operational well as the policy on HIV and com- programme development and man- medics exists. prehensive health assessments. agement course. Although more and more The implementation of employee medical officers are showing and workplace well-being is further The SAMHS initiated liaison with an interest in enlisting as actively marketed and addressed by three NGOs to submit a proposal volunteers, they are not the staff officers at the SAMHS on gender equity training in the keen to be deployed, placing Junior Command and Staff Course DOD, for which they obtained a a further burden on the and the Senior Command and Staff grant. They are instrumental in the Reserves, and this does not Course. planning of the training and the enhance the "one force" management and monitoring of the principle. This will be Project RESILIENCE ensured that implementation to peer group level. addressed in Project all pertinent issues affecting sol- PHOENIX and promotional diers during deployments were Furthermore, as the co-ordinator of exercises. tabled on the DOD agenda. As a the United States programme, the result, policy reviews and changes SAMHS ensured that the inputs for The Pastoral Service of the SAMHS have been made in order to ensure the year's plans and budget, to the exercises the following defence the social well-being of our mem- amount of US$750 000, as well as capabilities: bers. the quarterly expenditure plans, Conducting of spiritual wor- were consolidated. In this capacity ship and parade events. The SAMHS is working closely with the coordinators and nodal points Utilisation of well-being and non-government organisations from lower level units were enabled enrichment opportunities. (NGOs) to ensure the empower- and supported, and effective man- Pastoral counselling prac- ment of soldiers' wives. They are agement of the funds took place. tices. helped to find their niche in our Crisis intervention practices. society, and to build their capacity All client data is captured accurate- Spiritual support to the ill so as to participate actively in all ly, timeously and microfilmed for and dying. spheres of society. A pilot project future reference. Management Multidisciplinary teamwork directed towards this endeavour is information health service tenden- practices. being pursued at 10 SAI. The cies, irregularities, trends and solu- Military management prac- SAMHS has liaised with the private tions to problems are immediately tices. sector to organise a TV-set, books identified. Management information and educational toys for the must be secure, confidential and More functional training for chap- Retswelele Crèche established at comprehensive. lains in counselling practices, as the Molopo Base in Mafikeng. well as in facilitation skills to TERTIARY MILITARY HEALTH address HIV/AIDS, was implement- A resilience seminar is presented to FORMATION ed to improve service delivery. members prior to their deployment. Pertinent social issues which mem- The Tertiary Military Health The SAMHS, through the Social bers need to engage in, in order to Formation was formed during 2001 Work service, focuses on identified build cohesion amongst them have as a result of the transformation of strategic issues, namely: also been identified, for example the DOD. The formation consists of Social health promotion. issues such as values, interperson- the following: Cultural competency. al skills, trust, etc. These are pre- Formation headquarters. Family preservation. sented to our forces as part of mis- Three military hospitals. Financial recovery and man- sion-ready training prior to their Institute for Aviation agement. departure to deployment areas. Medicine. Violence in the family and Institute for Maritime the workplace. The Directorate plays an enabling Medicine. role at the SAMHS Training Military Veterinary Institute. Opportunities were optimally utilised Formation by means of mentoring Military Psychological to enhance the implementation of and advice to the training team. It Institute.
102 Department of Defence Chapter 8
The staffing of the formation is on ment by the local general support health and military health-related the verge of being completed, and bases ensure good service delivery. services outputs were achieved as this includes the PSAP and the reg- Poor facilities may cause poor serv- planned. ular force component. Owing to a ice delivery and it is essential that quick personnel turnover, approxi- facilities are well maintained and Members are encouraged to attend mately 15 per cent of posts are cared for. self-enrichment programmes, espe- vacant, especially within the line cially those that allow members to function. These are in the process The output of the Tertiary Health bring the knowledge they have of being staffed, as functional direc- Formation was achieved as the gained back to the unit to train and tors and pool managers are pulling Formation was well managed. inform those who could not attend. out all stops to ensure that the cor- Confirmation of this input can be Training and development are con- rect members for the correct posts seen in the financial successes sidered as vital within service deliv- are appointed within the guidelines achieved during the past financial ery and members are encouraged of DOD recruitment policy, as well year. Two of the major units to be trained, not only within their as within Government rules and received favourable audit reports specialist fields but also on a wider regulations. over the past year. The Auditor basis, especially within the military General once again conducted fol- field, where it has now become Unit commanders are trained to im- low-up inspections of their environ- apparent that the RSA will be plement the SAEF model to im- mental audits and reports of vast actively involved within the SADC prove service delivery. They have improvements were received. region, supplying knowledge and made the Batho Pele principles part medical expertise within the opera- of their service delivery enhance- The General Officer Commanding tional requirements. ment programmes and ensure dur- of the Formation involved all Unit ing forum meetings that the princi- Commanders in decision making, The commitment, caring, communi- ples of commitment, caring, com- which resulted in units taking own- cation and composition (or the four munication and compassion are ership. Successes are being Cs) ensured that SAMHS could adhered to at all times. A vast achieved, especially within the serv- deliver the following: improvement in service delivery has ice delivery domain. Over the past Hospitalisation services of been noted as unit commanders year a vast number of policies and high quality. concern themselves more with unit directives were received, dissemi- Excellent aviation services. members, as well as their clients. nated and forwarded to units. Unit Excellent maritime medicine commanders ensure that their services. Occupational health and safety laws members are trained on the com- Veterinary services of excep- are being enforced at all levels and puter systems and thus enable tional quality. during inspections and audits it is them to delve into the policies and Military psychological servic- becoming apparent that the facilities directives available on the DOD es of good quality. currently occupied urgently require systems. repair. 1 and 2 Military Hospitals Tertiary military health unique and are in urgent need of a major over- All members of the Formation are common support outputs were par- haul and it is foreseen that this will constantly made aware of the tially achieved, not because mem- be rectified if the ramp is funded Public Finance Management Act bers were unwilling to achieve, but and brought to completion. It is (PFMA), and unit commanders are because the common support serv- envisaged that the building and ren- utilising their respective forums to ices could not be supplied by the ovations to 3 Military Hospital will enhance these principles and to General Support Bases (GSBs) as commence during the first half of make members aware of their expected. It is, however, expected 2003. This project is eagerly await- respective responsibilities towards that the systems will kick into place ed. A project has been registered the State and the DOD. during September of 2003. to install a new centrifuge at the Institute for Aviation Medicine, as The Formation performed well over The morale of support workers is the old one is now in the process of the last financial year and it is with improving and they realize that their being declared beyond economical pride that an A grading is reported, dedication and input are of vital im- repair. The headquarters is co- as we feel that the specialist military portance to the service delivery of located with other formations and health component of the defence each and every unit. Patients are no problems are being experienced. capabilities is combat-ready and our business and their interests The institutes are well cared for. cost-effective. must always be put before own However, from time to time renova- interest. tions and proper facility manage- The provision of specialist military
2002-2003 Annual Report 103 Chapter 8
AREA MILITARY HEALTH the utmost importance for The AMHFs were responsible for FORMATION conducting service delivery. potential clients and area of respon- The replacement of capital sibility as indicated in the table 8.8. The aim of the Area Military Health equipment was vital for the Formation (AMHF) is to provide a execution of core business. These force structure elements multi-disciplinary military-health There was an increase in the were serviced by 3 141 Regular combat-ready capability (including patient load and the Health Force members and 209 PSAP, a specialised functions for land, air, Info System had to be adapt- total of 3 350 members. This maritime, clinical and evacuation ed to accommodate multiple means that every AMHF member support) and main medical equip- spouses. had to serve 64 potential clients. ment (MME) at short notice in ac- Project MASIBAMBISANE This is so despite the fact that many cordance with the DOD force had to be implemented at all of the members of the AMHF occu- design national and international levels to combat HIV/AIDS. py a support or managerial position. obligations. Occupational health and The AMHF achieved all its core The AMHF consists of: safety as a new field had to objectives to the best of its ability. Formation headquarters. be implemented at all levels. The achievement of core objectives 9 x area health units. Physical training, sport and such as healthy clients, an organi- 28 x health centres. recreation. sation conducive to health and com- 36 x sickbays. bat-ready user systems will remain 4 x base hospitals. The AMHF worked towards imple- a quest. 21 x MMC's. mentation of the SAEF model in all 5 x regional occupational units to ensure a service of quality. MILITARY HEALTH SUPPORT health and safety centres. Services were rendered during FY FORMATION 1 x presidential medical 2002/03 to the following health care team. clients: The Military Health Support Formation (MHFS) was formed in On formulating a strategy for the The Presidency. 2001 as a result of the transforma- AMHF the military health strategic Army units. tion of the SAMHS. Its primary aim issues which have been formulated Navy units. was to provide military health sup- for the DOD have been taken into Air Force units. port, warehousing of pharmaceuti- consideration. They were: SAMHS units. cals, sundries, SAMHS mobilisation Health promotion, concurrent Dependants. equipment and unique stock and health assessments and VPA members. procurement of SAMHS unique HIV/AIDS with its impact. Approved Government products, materials, services and Professional staff were of departments. electro-medical equipment asset
Table 8.8. Potential Clients and Areas of Responsibility: Area Military Health Formation
Unit Potential Clients Area of Responsibility (km2) Area Military Health Unit Western Cape 12 710 135 428 Area Military Health Unit Eastern Cape 15 217 348 000 Area Military Health Unit Northern Cape 11 400 361 830 Area Military Health Unit North West 28 000 156 400 Area Military Health Unit Free State 12 955 129 307 Area Military Health Unit KwaZulu-Natal 10 137 109 626 Area Military Health Unit Gauteng 98000 6400 Area Military Health Unit Mpumalanga 6 000 80 000 Area Military Health Unit Northern Province 20 951 225 861 Presidential Medical Team 60 RSA and abroad Total 215 370 1 546 532
104 Department of Defence Chapter 8
management service for Aarea and in the MHD was aligned with capability of the SAMHS, Mobile Military Health Formations, the Military Medicine Code Rm3 was spent on mobilisa- and the directing of SAMHS product List, and at present 70 per tion stock and Rm 4 089 on systems and co-operative common cent of the items on the list repair and maintenance of logistics. are stocked in the depot. B-vehicles. This contributes greatly to To replace an ageing D- The formation consists of the MHSF the availability of pharma- vehicle fleet, an amount of headquarters with an Electro-Medi- ceuticals in military hospitals Rm1 639 was used to pro- cal Service Centre attached to the and sickbays. cure 11 vehicles. Rm12 was structure, the Military Health Base The Military Health Mobilisa- spent on SAMHS unique Depot (MHBD) consisting of the tion Depot achieved a stock- common logistics to ensure Military Health Depot (MHD) and turning (receipts and issues) the continuous flow of med- the Military Health Mobilisation of Rm 139,9. Stock differ- ical forms and SAMHS pro- Depot (MHMD), and the Military ences were 0.32 per cent tective clothing and uni- Health Procurement Unit (MHPU). which is considerably less forms. than the benchmark figure of The staffing of Defence Act 2 per cent. SAMHS mobile MILITARY HEALTH TRAINING Personnel (DAP) was completed main medical equipment was FORMATION during FY 2002/03 and the staffing used in several BATLS/ The aim of the Military Health of Public Service Act Personnel BARTS courses presented Training Formation (MHTF) is to (PSAP) will be completed during during the year. This equip- provide military health services to FY 2003/04. A drive to have mili- ment was a major point of ensure the development, establish- tary members functionally trained attraction when displayed ment and maintenance of military has resulted in more than eight per during the ICMM hosted by health training capabilities within the cent of the members being qualified the SAMHS during Septem- parameters of relevant legislation both functionally and military-course ber 2002. and policies. qualified for their current ranks. At 22 291 orders to the value of present 7 members are studying Rm 213,3 were placed dur- The outputs of the MHTF for the towards B-degrees and Technicon ing the year for the SAMHS, period 1 April 2002 to 31 March Diplomas. Members from all the deployments in Burundi and 2003 are described below. units were trained in the SAEF the DRC, as well the Depart- School for Military Training model to ensure improved service ment of Environmental Trained 1 100 learners, delivery and client satisfaction. Affairs (DEAT) for Antarctica, including additional Gough and Marion Islands. requirements not initially The facilities of the MHBD will not Owing to the unavailability of planned for. comply with the new health legisla- funds to increase the stock- Revising training concept tion and the buildings are too old to holding in the MHD, the and implementing new be upgraded. New facilities will guideline of a 10 per cent methods and techniques have to be obtained to ensure com- out-of-stock limit was not to adhere to clientele pliance with new legislation. On the attained. This resulted in requirements. positive side it must be noted that units not being able to satis- School for Military Health the security system at the MHBD fy demands from patients. Training was upgraded to provide state-of- During the year the compila- Many courses were can- the-art surveillance. tion of medical equipment celled because of factors asset registers for the AMHU beyond the Formation's MHSF outputs from 1 April 2002 to commenced and the register control.
31 March 2003 for KwaZulu-Natal Military Plans are in place to pres- The MHD achieved a stock- Health Unit was completed. ent the same courses sup- turning (receipts and issues) Assistance is provided to the ported by more compre- of Rm 215,5. This was Product Systems manager hensive marketing. achieved with an average with regard to preventive Nursing College
inventory of only 40 days maintenance schedules for Courses that were pre- stock on hand. Stock differ- medical equipment as part of sented yielded positive ences were 0.23per cent, the introduction of a life- results. However, some which is considerably less cycle management pro- courses were cancelled than the benchmark figure of gramme in the SAMHS. because of factors beyond 2 per cent. The stockholding To improve the operational the Formation's control.
2002-2003 Annual Report 105 Chapter 8
Courses are also present- notice in accordance with the DOD Force's current operational ed at the two satellite cam- Force Design's national and interna- capability in a joint environ- puses of 2 and 3 Military tional obligations. ment.
Hospitals. Location. Air Force Base Joint Physical Training, The MMHF consists of the follow- Louis Trichardt.
Sport and Recreation ing: Participants. 7 Medical Training Centre Formation headquarters. Battalion Group. Research and develop- Two Regular Force medical Objectives Achieved.
ment capability not yet battalion groups (7 and 8 Management of casualty achieved will be finalised Medical Battalion groups). evacuations. in FY 2003/04. Three Reserve Force med- Deployment of the air drop-
Physical Training and ical battalion Groups (1,3 pable surgical post with the Sport and Recreation and 6 Medical Battalion paratrooping of its team.
management courses Groups). Evacuation procedures and have been addressed but patient administration of are currently making use Outputs of the Mobile Military casualties.
of SA Air Force Health Formation for FY 2002/03 Executing helicopter evacu- Gymnasium facilities. were as follows: ations after assisting with Combat Training Centre Outputs were partially the marking of landing Lohatlha achieved because neither zones.
Existing responsibility of the Formation headquater Losses. None. providing operational sup- nor any subordinate unit has port during exercises was self-accounting status. Exercise MEDFLAG successful. The current structure of the
Revision of existing aim formation is inadequate for Duration. 17 August to 01 regarding training will con- the management of current September 2002.
tribute during FY 2003/04 realities. Staffing for both Aim. Authority was obtained to improve training within DAP and PSAP is still for the SAMHS to participate SAMHS. incomplete. in Exercise MEDFLAG 02. SAMHS Band Formation members were This invitation by the US gov-
24 parades, functions and trained functionally and com- ernment presented an oppor- ceremonies were conduct- pleted military courses. At tunity to understand the role ed. present four members are and activities of the US studying towards degrees Defence Force during a Owing to the fact that the GSB and Technicon diplomas. humanitarian relief exercise Thaba Tshwane is not fully function- The SAEF model still has to on the African continent. al, line functionaries had to take the be presented to all members Location. Uganda. responsibility for support functions. in the formation to ensure Description. The exercise The Formation experienced prob- improved service delivery was conducted in three phas- lems with availability of sufficient and client satisfaction. es and lasted for approximate- vehicles, accommodation and class- ly 10 days. The phases rooms. It is hoped these will enjoy Facilities of the Formation require included: priority during FY 2003/04. urgent attention in order to comply Phase 1. The training of the with national legislation and the new African country's medical MOBILE MILITARY HEALTH FOR- mobilisation and demobilisation personnel in mass casual- MATION requirements. ties or disasters.
Phase 2. A simulated exer- The Mobile Military Health Forma- PARTICIPATION IN EXERCISES cise was conducted entirely tion (MMHF) was established in by the African country and 2001 as a result of the transforma- Exercise GOLDEN EAGLE included as many of the tion of the SAMHS. Its aim is to emergency response provide a multi-disciplinary military Duration. 31 May to 21 June departments as was feasi- health combat-ready capability 2002 ble.
(including specialised functions for Aim. The exercise concen- Phase 3. Medical Civic land, air, maritime, clinical and trated on mission-specific Action Programmes com- evacuation support) and main med- training in order to determine prised medical team mem- ical equipment (MME) at short and evaluate the SA Air bers, alongside their
106 Department of Defence Chapter 8
colleagues from the African ashore, using a simulated society. A pilot project directed country, who provided scenario. towards this endeavour is being
health care to the local pop- Location. Durban and pursued at 10 SAI. Liaison ulation at isolated daily Richards Bay. between the SAMHS and the pri-
clinics. Description. The SANDF vate sector has yielded a TV-set,
Participants. SAMHS was requested to participate books and educational toys for the observers. in a Command Post Exercise Retswelele crèche established at
Objectives Achieved. (CPX) and a Field Training the Molopo base in Mafikeng.
Taking part in the planning Exercise (FTX), including a and execution of the beach landing with the French A resilience seminar is presented to humanitarian relief exercise. forces of La Reunion (FAZ- members prior to their deployment.
Planning for the execution SOI) off the coast of South Pertinent social issues which mem- of Exercise MEDFLAG 04 in Africa. The scenario for bers need to engage in order to RSA. Exercise RAINBOW TREK build cohesion amongst them have
Losses. None. was developed to include also been identified, for example humanitarian aid/disaster issues such as values, interperson- Exercise OXIDE II relief, incorporating a peace- al skills, trust, etc. These are pre- keeping/peace enforcement sented to our forces as part of mis-
Duration. 11 to 17 November intervention, involving para- sion-ready training prior to their 2002. trooping, beach landing and departure to deployment.
Aim. Exercise OXIDE II was personnel evacuation to an to provide training, enhance emergency control centre. The SAMHS plays an enabling role
interoperability and co-opera- Participants. 7 Medical for the training team at the SAMHS tion between the SANDF and Battalion Group and Area Training Formation by means of French forces at La Reunion. Military Health Unit KwaZulu- mentoring and advice. It ensures
Location. Reunion Islands Natal. that training maintains momentum
Description. The Exercise Objectives Achieved. through communication with other
was conducted as a search- Taking part in the manage- services and divisions and level 3. and-rescue exercise with the ment of the emergency Lesson plans on planning and aim of retrieving survivors evacuation centre. budgeting were developed and pre-
from the sea. Providing military health sented on the HIV/AIDS programme
Participants. 7 Medical support to all participants. development and management
Battalion Group and Institute Taking part in the planning course. for Maritime Medicine. and execution of the
Objectives Achieved. humanitarian relief exercise. The SAMHS initiated liaison with
Taking part in the manage- Management of casualty three NGOs to submit a proposal ment of the Emergency evacuation. on gender equity training in the
Evacuation Centre. Losses. None. DOD, for which they obtained a
Providing military health grant. They are instrumental in the support to all participants. SERVICE DELIVERY planning of the training and the Losses. None. IMPROVEMENTS management and monitoring of the implementation to peer group level. Exercise RAINBOW TREK Project RESILIENCE ensured that all pertinent issues affecting sol- Furthermore, as the co-ordinator of
Duration. 31 March to 15 diers during deployments were the United States programme, April 2003. tabled on the DOD agenda. As a SAMHS ensured that the inputs for
Aim. Exercise RAINBOW result, policy reviews and changes the year's plans and budget, to the TREK was designed to pro- have been made in order to ensure amount of US$750 000, as well as vide training, enhance interop- the social well-being of our mem- the quarterly expenditure plans, erability and promote co-oper- bers. were consolidated. In this capacity ation between the SANDF and the coordinators and nodal points French forces in La Reunion. The SAMHS is working closely with from lower level units were enabled It also enhanced the peace NGOs to ensure the empowerment and supported, and effective man- support operations capability of soldiers' wives by helping them agement of the funds took place. in Africa. This was accom- find their niche in our society, and All client data is captured accurate- plished through a series of to build their capacity so as to par- ly, timeously and microfilmed for exercises, both at sea and ticipate actively in all spheres of future reference. Management
2002-2003 Annual Report 107 Chapter 8
information health service tenden- comprehensive. There is a new pressure on existing accommoda- cies, irregularities, trends and solu- concept of modular and distance tion facilities. The concept will be tions to problems are immediately training in the military training envi- executed and assessed during identified. Management information ronment that should lead to a FY 2003/04. must be secure, confidential and reduction in costs and relieve the
108 Department of Defence Chapter 9
DEFENCE INTELLIGENCE
ANNUAL REVIEW
Defence Intelligence continued to Community (SADC) region as part serve the Department of Defence of confidence building and improv- (DOD) with intelligence in support of ing mutual capacity. operations, planning and policy for- mulation. Although formal service Staffing of Defence Intelligence agreements with key clients such as posts with members with the correct Joint Operations is still outstanding, profile and training remains one of service delivery to these clients met the primary challenges. However, high standards. This is specifically training of intelligence members relevant in light of the current exter- continued successfully during the nal operations in period under the Great Lakes review. region. Currently a number of con- INTRODUCTION The renewal of tingencies are in Defence joint development Intelligence's with the client to ensure client satis- information systems in support of faction. the intelligence processes is anoth- er challenge. Defence Intelligence Defence Intelligence also continues completed the planning for the to render policy advice to clients, replacement of these systems especially in the counter-intelligence under the auspices of Command environment. A number of success- and Management Information es in this regard were reported. (CMI), and the envisaged systems Cooperation with other intelligence still have to be implemented. agencies to improve the current capacity is planned and should STRATEGIC PROFILE deliver tangible results in the forth- coming financial year. Not-with- Vision. Winning edge intelligence standing this envisaged coopera- for a secure future. tion, the collection environment is still lacking sufficient capacity to Mission. Defence Intelligence is cover all required areas. Defence the premier intelligence organisation Intelligence co-operates with the for the Ministry of Defence (MOD), intelligence structures in the with the mission to provide intelli- Southern African Development gence and counter-intelligence on
2002-2003 Annual Report 109 Chapter 9
110 Department of Defence Chapter 9
the strategic and operational level military-related intelligence products tional and strategic reports and to support activities of the MOD and to the DOD and other approved assessments, which were compiled national government in pursuit of national clients, including the separately in the past, are now security objectives of the country. National Intelligence Co-ordinating being integrated in order to provide Committee (NICOC) and to interna- a more complete intelligence pic- The following are the outputs ema- tional partners. Intelligence is sup- ture. This resulted in the improve- nating from the mission: plied by a matrix of interconnecting ment of products. The number of Intelligence and counter- chief directorates and directorates, briefings has increased as the num- intelligence for departmental working towards the same end, ber of mission ready exercises for and national policy formula- drawing on each others' expertise the deployment of SANDF forces tion and planning. and data to deliver to our clients externally increased during FY Intelligence and counter- integrated and relevant intelligence 2002/03. Client feedback from the intelligence support for force and thereby support their decision- Secretariat for Defence, the Office development, preparation, making and planning ability in the of Chief of the SANDF, Chief Joint and employment. defence/security environment. The Operations, the services, NICOC, Directorate's approach, to service CSIR (Deftek) and other Govern- DEFENCE INTELLIGENCE the diverse needs of Defence ment departments confirm that the POLICY Intelligence's clients, is based on products being produced, the partic- close co-operation and awareness ipation of members on various Defence Intelligence, in conjunction of the clients' changing intelligence forums and the intelligence briefings with the Policy and Planning requirements. given, satisfy almost all the require- Division, is in the process of draft- ments of the clients and the quality ing an intelligence policy for the Through DID's function as nodal is also of a high standard. DOD. The Information and Com- point between the DOD and NICOC munication Systems Security and with DID members seconded to Defence Intelligence officers are (ICSS) policy has been revised to the National Early Warning Centre, deployed externally in Burundi and keep in pace with technological the Directorate actively participates MONUC Headquaters in Kinshasa. developments and, even though the in the compilation of national strate- Defence Intelligence will be provid- revision of the Minimum Information gic products for government and is ing intelligence officers to the Security Standards (MISS) has still able to draw on interdepartmental SANDF contingent to be deployed not been finalised, it was decided to products to enhance intelligence to to Kindu in Eastern DRC as part of start with the updating of the DOD the DOD. During the reporting peri- MONUC Phase III, as well as to the security policy (See Annual Report od Defence Intelligence disseminat- African Union task force earmarked for FY 2001/02). ed reports, assessments, digests, for Burundi. studies, estimates and edited a OUTPUTS OF DEFENCE number of other documents and Defence Intelligence participated in INTELLIGENCE briefings to meet client needs. Both the advisory team to the Deputy quality and quantity of intelligence President's mediation on peace in The period under review served to products have improved in compari- Burundi. Seven members form part build on the previous review peri- son with the previous reporting peri- of the Third Party Verification od's successes. The main empha- od. A future challenge to DID is to Mechanism and members also sis was placed on the production of harness the technology base, attended the Inter-Congolese intelligence (including counter-intel- paving the way for fundamental Dialogue talks in Sun City. Defence ligence), in support of operations in changes in the way clients can Intelligence also participated in a the region, developing strategic request and receive the intelligence number of ISDSC committees and partnerships and confidence-build- they need. standing committees. ing with member countries of the SADC. Defence Intelligence will SUBDIVISION INTELLIGENCE Defence Intelligence continues with strive to improve the quality of serv- PROCESSING (SDIP) intelligence exchange conferences ice further so that the decision-mak- with strategic partners. Intelligence ing process can be enhanced. The quantity of Defence Intelligence obtained by way of exchange light- products remained more or less the ens the burden and provides cover- DIRECTORATE INTEGRATION same during FY 2002/03 in compar- age of additional military geographi- AND DISSEMINATION (DID) ison with FY 2001/02. A new philos- cal areas. ophy of integrated operational and At the core of DID's responsibility strategic intelligence products was are the quality and dissemination of introduced. This entails that opera-
2002-2003 Annual Report 111 Chapter 9
SUBDIVISION COUNTER- breaches were also analysed. Information Act, Act No 2 of 2000 INTELLIGENCE Construction of an ICSS laboratory (PAIA), has placed an exceedingly has started. high burden on the personnel Directorate Counter-Intelligence resources. However, during the Collection performed a number of Even though the revision of the reporting period the DOD received surveillance and technical opera- MISS has still not been finalised, it very positive feedback in the media tional tasks. The Counter- was decided that the need for an regarding the release of information Intelligence Collection Support updated security policy is of utmost requested in terms of the PAIA. Centre of Section Special Collection importance and the process for the successfully answered over a thou- drafting of the new DOD policy has Although a number of skilled per- sand requests. started. sonnel were lost to other depart- ments, counter intelligence still After completion of training, two The Operational Counter-Intelli- managed to issue security clear- qualified Technical Surveillance gence (OPCI) personnel have main- ances in accordance with post clas- Counter Measures (TSCM) teams tained good working relations with sifications. Notwithstanding these were available for deployment. As other role-players such as Joint measures, there is still a huge a result, a number of military Operations. The presentation of an backlog in security clearances that attaché and DOD offices have been OPCI specialist training course to will be addressed in the forthcoming electronically swept. Security lock- other services was also successful. financial year. smithing support was also given to The revision of the Joint Warfare the DOD internally, as well as to Publication 129 was completed. DIRECTORATE INTELLIGENCE external deployments in Burundi SUPPORT and the DRC. The increasing State Information Technology Agency (SITA) defence Intelligence Support continues to As already stated, the ICSS policy tariffs and escalating costs of both implement service centres to sup- has been revised to keep in pace ICSS and electronic counter-meas- port Defence Intelligence. The with technological developments. ures hardware and software put a human resource service point is the Counter-Intelligence personnel took strain on current financial latest of these. Intelligence Support an active part in the eradication of resources. The shortage of skilled also embarked on the process of NIMDA and other viruses from the personnel and loss of such person- creating Defence Intelligence Defence Information Systems nel to other departments and the unique plans for the support envi- Network (DISN). ICSS support in private sector impacts negatively on ronment. The first of these is the the form of forensic audits was the ability to conduct security tasks Defence Intelligence Human given to the Military Police Agency throughout the DOD. Resource Plan. Logistics and infor- and Inspector General for the inves- mation technology plans will follow tigation of computer fraud and other During the past year, the influence during the forthcoming financial crime. Various ICSS security of the Promotion of Access to year.
112 Department of Defence Chapter 10
JOINT SUPPORT
ANNUAL REVIEW
The aim of the Joint Support addressed. Firstly, agreement was Programme is to provide common reached with respect to the strate- supplies and services to all defence gic design of the division aimed at programmes and objectives through ensuring an integrated support a centralised support infrastructure service that is client-centred and under the ambit of the Joint Support which captures the principles of Division. Through this programme Batho Pele. The strategic design of supplies and services with respect the division is not fixed but will be to logistics, commodities, facilities, influenced by the shape (footprint) management information systems, of the South African National telecommunications as well as a Defence Force (SANDF) and its military policing requirements and military test- during the ing capability are preparation and provided. The INTRODUCTION deployment of administration forces. service for human Secondly, a resources (HR) is undertaken as process was initiated to review the well as certain common training and current structures and processes of skills development. To execute the the division aimed at optimising effi- support function, the Joint Support ciencies within a financial allocation Division consists of six subdivisions envelope of Rb1,98 for 2004 and namely: Service Corps, Logistic an establishment structure of Agency, Command and 16 640 posts. The two processes Management Information (CMI) will continue into the next year. Formation, the Human Resource Support Centre (HRSC), Joint Training Formation (J Trg Fmn) and Notwithstanding the turbulence gen- the Military Policing Agency (MPA). erated by the re-engineering and The Joint Support Division reports restructuring at the conceptual to the Chief of the SANDF. level, the Joint Support Division has had a successful year. The high- During FY 2002/03, two critical and lights of the year are presented per inter-dependent processes were sub-division hereunder.
2002-2003 Annual Report 113 Chapter 10
114 Department of Defence Chapter 10
JOINT LOGISTIC the Department of Defence (DOD) ture elements will physically SERVICES ensures optimal logistic support to execute these plans. all elements of the DOD in support ANNUAL REVIEW of military operations and other The policies and plans as promul- tasks assigned to the DOD. gated by the Logistic Division One challenge that the Department include the guidance of unique of Defence (DOD) is facing, from Strategy. The DOD Logistic logistics as executed by the the Joint Logistics perspective, is Agency is to provide an integrative Services and Divisions. the upgrading of state facilities logistics support system to the Joint logistics will be executed as (fixed assets) utilised by the depart- SANDF and customers as deter- follows: ment. This matter is currently being mined by Chief of the SANDF. This Deeper level logistic support addressed by the Minister of will be executed as follows: by depots and units under Defence, in co-operation with the The Logistic Division will command. Minister of Public Works and supply logistic direction and Third-line logistic support by Minister of Finance. guidance by means of logis- Reserve Force units. tic policy, doctrine, strategic Logistic support through the STRATEGIC PROFILE resource allocation and out- deployment of joint support put objectives. bases (JSBs). Vision. To be the authority and The DOD Logistic Support respected provider of choice for Formation will plan and exe- During peacetime and in war situa- integrated logistic support excel- cute the strategy by comply- tions, depots are employed to lence in the DOD. ing with the policies. ensure the capability and capacity The DOD Logistic Support to support the Short-term Force Mission. The Logistic Agency of Formation and force struc- Employment Plan (STFEP).
Table 10.1. Land to be Retained by the Department of Defence
Province Claim Status Northern Province Madimbo Corridor The Logistic Agency is currently revising its position regarding the need to retain the land. Gauteng Farm Boekenhoutkloof Due to the strategic importance of the facilities on the land to the DOD, the land could not be restored to the claimant community. The Department of Land Affairs is currently in a process of investigating alter- native compensation to the claimants. Farm Wahlmansthal Due to the strategic importance of the land and the development ito fixed assets on the land, the majority of the area could not be restored to the claimants. The Department of Land Affairs is currently in a process of investigating alternative compensation to the claimants. KwaZulu-Natal Boschhoek Training Area Due to the strategic importance of the land to the DOD, the land could not be restored to the claimant community. The Department of Land Affairs is cur- rently in a process of investigating alternative com- pensation to the claimants. Northern Cape Lohatlha Combat Training Due to the strategic importance of the land to the Centre DOD, the land could not be restored to the claimant community. The Land Claims Court made a deci- sion in favour of the DOD to retain the land for use by the DOD. The claimants could, however, be granted leave to appeal this decision.
2002-2003 Annual Report 115 Chapter 10
Table 10.2. Land Claims in Investigation Phase
Province Claim Status North West Zeerust : Farm Hazia The Land Claims Commissioner is currently investigating the validity of the claim. Limpopo Ben Viljoen Training Area Ditto.
ENVIRONMENTAL Province have accepted alternative environmental impact man- MANAGEMENT land. The land to be retained by agement is continuing. the DOD and the land claims still at Funding was made available The DOD is on track with the devel- investigation phase are shown in for the joint hosting of an opment of an integrated Environ- Table 10.1 and Table 10.2. International Conference on mental Management System based Military Integrated Environ- on the principles of International The activities of the RSA-USA mental Management to take Standards Oganisation (ISO) Environmental Security Working place in Pretoria in August 14000. The project will enter into a Group, which was established in 2003. Arrangements are trial stage during 2003. The com- 1997 under the RSA-USA Defence proceeding very well and pletion date for the project is Dec- Committee, is progressing very registrations of delegates ember 2004. well. Some of the major achieve- from more than 25 countries ments include the following: have been received. A Commanders' Guide for Environ- The fourth joint RSA-USA mental Compliance was developed environmental guidebook A study visit was paid to the and is about to be promulgated. was finalised and published. Netherlands and the United This guide will assist commanders It covers the subject "The Kingdom to benchmark best prac- to ensure compliance with environ- Development and Imple- tices in military environmental man- mental legislation. mentation of Environmental agement, with emphasis on land Education and Training management and waste manage- The claimants of the Roodewaal Programmes in the Military". ment. The results of the study are Bombing Range in the Northern Work on a guidebook on being incorporated in policies and
Table 10.3. Support Rendered to the Private Sector by the DOD: FY 2002/03
Company Service Rendered Defence Industry ATE Use of De Wet/De Brug Shooting Range Alkantpan (five occasions) Use of Vastrap Test Range Overberg Test Range Use of Boeing 707 Aerosud Materiél Support to Aerosud Naschem UAE Training Ammunition and Explosives RDI Test Flight Support to Reutech Defence Industry Total Pty Ltd Fuel Handling Services during the World Summit on Sustainable Development Alkantpan Use of GV5 Gun to Conduct Trials for Singapore Naschem Ammunition Lot Acceptance Tests Armscor Final Assessment of ETPS Students ATE Use of De Wet/De Brug Shooting Range BAE Systems AAD 2002 SAAF C 130 Flight
116 Department of Defence Chapter 10
Company Service Rendered Private Organisations/Individuals George Voortrekkers Lease of Tents Smit Marine SA Pty Ltd Lease of Military Vehicles Endemol Productions Use of Dry Dock: Fear Factor Advertisement Seejol Voortrekkers Lease of Tents Unitas Lease of Pantry Trucks SAATCHI & SAATCHI Firing of Noon Day Gun in Celebration of World Aids Day Anchor Marine Racing Utilisation of SAS OUTENIQUA for Transportation of Crew and Yachts Accommodation 48 Civilian Individuals Casual Accommodation Other State Departments Presidency Provisioning of Stewards: World Summit on Sustainable Development Department of Health Utilisation of SAMHS Personnel and Vehicles during the Mass Polio Immunisation Campaign Department of Sport Utilisation of SAMHS Personnel and Vehicles during the Love Life Games in Durban Presidency Provisioning of Stewards: State Banquet
guidelines that are being developed was finalised by 31 October 2002. Geographic Area. RSA (Air for the DOD. Although a 89,8 per cent success Force Base (AFB) Waterkloof) rate was achieved, the effort must and Burundi (Bujumbura) SUPPORT RENDERED TO THE be weighed against the many posi- Nature/Description of the PRIVATE SECTOR BY THE DOD tive outcomes of the project, such Operation or Exercise. as: Peacekeeping Operation. Support rendered to the private sec- system enhancements to the Results Achieved. Contin- tor is detailed in the Table 10.3. mainframe equipment regis- ues successful sustainment. ter; Losses. Recorded by Joint VEHICLE CENSUS: PROJECT identification and recovery of Operations. INZUZO so-called "lost" vehicles; identification of missing vehi- Operation MISTRAL The Inspector General of the DOD cles; and initiated his own special investiga- achieving an awareness of Duration/Dates. Since April tion into the misuse of DOD vehi- the importance and value of 2001. cles in the DOD during 2001. His vehicle control. Aim. Sustainment and cargo findings pointed to serious irregular handling. practices with regard to the marking Phase 2 of Project INZUZO, which Geographic Area. RSA (AFB of vehicles and the misuse of vehi- will be done during 2003, will Waterkloof) and DRC cles to an end not intended by include all other types of military (Kinshasa). departmental regulations, as well as vehicles. Nature/Description of the non-compliance with the regulations Operation or Exercise. for the administration of military DEFENCE COMMITMENTS Specialised support. vehicles. The Inspector General Results Achieved. Contin- instructed that the grave situation EXTERNAL OPERATIONS ues successful sustainment. needed immediate rectification. Losses. Recorded by Joint Operation FIBRE Operations. To rectify the above discrepancies, Project INZUZO (meaning "to gain") Duration/Dates. Since OTHER DEFENCE OUTPUTS was launched by Chief Logistics (C October 2001. Log). The first phase of the project Aim. Sustainment and cargo Members of the Logistic Agency commenced on 1 July 2002 and handling. participated successfully in the
2002-2003 Annual Report 117 Chapter 10
Inter-State Defence and Security Preparation and answering Logistics and Chief of the Navy, Committee (ISDSC) Chief Logistic of questions from the Surgeon General, Chief Acquisition sub-work group in Botswana. Standing Committee on and the General Officer Public Accounts (SCOPA) Commanding Special Forces DEFENCE CAPABILITIES was done successfully and Brigade were concluded. in allocated time. NATIONAL CODIFICATION Seven Parliamentary The United States (US) DOD mo- SYSTEM SUPPORT enquiries were received and bile training teams, under the aus- answered. pices of the US DOD International Aim. To provide a national codifi- 242 IG reports were receiv- Military Education and Training cation system support service to the ed, of which 190 were (IMET) programme, presented the SA Army, the SA Air Force, the SA finalised. first Regional International Defence Navy and the South African Military 10 new Auditor General Management Course (mobile train- Health Service (SAMHS). enquiries were received, of ing team) over the period 5 - 16 which 9 were answered sat- August 2002 at the Air Force Gym- Performance in FY 2002/03 isfactory. nasium. The first Senior Interna- System stable and a 45 per 5 Stores Administration tional Defence Management cent improvement in the pro- Review Boards were held. Regional Course over the period 4 - vision of a national codifica- 15 August 2003 will be presented tion system support service Evaluations, inspections and special as part of this programme. to designated DOD clients. tasks, as requested by DSSS, were This service will be delivered carried out by the Logistic Manage- The DOD School of Logistic at the right time, right place, ment Support Section. It was Training structure, including the and in the required quantity noticeable that members staffed in satellite, was approved and imple- as per client specifications. critical posts are in some cases not mented. Rm10 653 was received by able to cope with the workload. the National Codification The lack of resources for the execu- Additional funds were obtained from Bureau for FY 2001/02. tion of daily activities contributes to the SA Navy, Surgeon General and Shortcomings in the contract this situation. the Logistic Agency for the develop- were identified by the ment of supply-support training Inspector General and LOGISTIC EDUCATION TRAINING packages. This resulted in the com- Auditor General. AND DEVELOPMENT pletion and delivery of initial and junior supply administration training The following are a few of the activi- Service agreements for higher order packages. ties executed by the Stores Admin- logistic education, training and istration Management Section: development between Chief A liaison channel was established
Table 10.4. Logistic Training presented by the Logistic Agency: FY 2002/03
Training Number Number of Learners Institution of Race Gender Courses African White Asian Coloured Total Male Female DOD TS Training Centre 47 324 108 0 19 451 451 0 DOD School of Logistic 5 48 35 0 5 88 87 1 Training DOD School of 9 50 85 0 14 149 138 11 Munitions FET Colleges 20 698 61 0 3 762 758 4 44 Parachute Battalion 1 17 1 0 1 19 9 10 Logistics School 57 779 165 17 182 1 143 866 277 Total 139 1 916 455 17 224 1 469 2 309 303
NOTE. Three learners at FET Colleges were disabled (deaf and dumb).
118 Department of Defence Chapter 10
between the Chief of Logistics, Logistic Information Management support information systems Directorate Logistic Resources Systems (LIMS) Achievements (OSIS) implementation has Management and the Diplomacy, The phasing out of the infor- decreased the issuing from Intelligence, Defence and Trade mation management sys- UIMS and receiving on OSIS Sector Education and Training tems databases in item iden- from approximately one Authority (DIDTETA). A skills- tification resulted in fewer month to a week. development process was estab- databases that have to be The equipment register lished with qualified skills develop- updated. Furthermore, enhancements were suc- ment facilitators within the DOD approval was granted for the cessfully implemented on 15 Technical Service Corps. The train- consolidation of the corpo- July 2002. ing achievements are reflected in rate and functional databas- The barcode assisted Table 10.4. es, which resulted in more receipts and issues were space being available on successfully implemented in LOGISTIC MANAGEMENT integrated data management 13 general support bases systems and faster data dis- (GSBs) by the end of May The Directorate Logistic Manage- tribution from on-line cata- 2002. This lightened the ment has done tremendous work loguing information systems administrative burden on the over the past financial year to to corporate item identifica- uniform maintenance, as all ensure alignment within the Logistic tion. the vouchers had to be com- Agency and logistic community in The automating of the data pleted manually. general. Good products were streams from the external The cleanup of data, in developed and delivered by the test environment in on-line terms of the eradication of contracted service provider to the cataloguing information sys- duplication of location and various logistic environments. Work tems to corporate item iden- terrain names, created a was done in conjunction with the tification has enhanced the purer database. The relevant stakeholders, resulting in testing capabilities, ensuring process of transferring the 100 per cent client satisfaction. thorough programme adap- ownership of facilities from Development and research work tations and corrections the force structure elements was done not only in the strategic before implementation. to the GSBs is well under- environment, but also product sys- All related actions of the way. tem environments. Researched DOD Main Ordnance Depot and developed products included and DOD Main Ordnance Logistic Information Management support to the Directorate Logistic Sub Depot (Grahamstown), Systems (LIMS) Challenges Management and the Logistic Technical Stores Depots The rationalisation project Support Formation for the strategic have been successfully com- that would have ensured direction process, as well as finan- pleted, owing to the Change purer data and the optimal cial management and budgeting Control Board approval for interfacing between the sys- processes. the programmatic movement tems was put on hold. By of all the SCIs from the allowing the optimising of Various quality products were deliv- 00002/11 account to the order administration sys- ered that included a reviewed logis- 00002 account as "dis- tems, equipment register tic philosophy, budgeting and plan- posed". and facilities register sys- ning tool, as well as a Business Positive feedback was tems to continue parallel Process Architecture Baseline doc- received from the user on with the planning phase up ument that serves as the logistic what was built into the sys- to the implementation of baseline document to the Defence tem towards users of the Project MONOLOG, purer Enterprise Information Systems current and those transac- and correct data would have Plan. The development process of tions that have not been been guaranteed for migra- the Business Process Architecture used for the past two years. tion into the new system. Baseline included participation from This was done to determine The 4th line ammunition all the Services and all were even- which transactions could be depot implementation on tually satisfied with the end result. archived. Archiving has computer aided logistic man- Feedback received from CMI, the since been completed. agement information sys- end-user, indicates that the The download facility from tems (CALMIS) that was Business Process Architecture unit inventory management supposed to have started in Baseline product that has been systems (UIMS) that was September 2002 has been delivered is of a high standard. developed for operational moved to a possible June
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2003 date of implementation. AFB Louis Trichardt. the OSIS Product System.
This has a negative effect on Assistance to the DOD This service resulted in the scaling down of certain personnel at Burundi with resolving more than 90 per functionalities on LIMS. the audit of the aircraft cent of all baseline-related data where problems were and data problems encoun- Operational Support Information experienced prior to the tered by the SA Navy and Systems (OSIS) Achievements deployment of these air- SA Air Force users during OSIS Product craft to AFB Swartkop. the year on OSIS to ensure The finalisation of the war- This exercise offered the the integrity of the OSIS rant and entitlement func- ideal opportunity to act as weapon system baselines. tionality and acceptance trial and evaluation to ensure An internal audit of OSIS by the SA Navy. that OSIS can deploy on-line was done by the State
The finalisation of docu- by making use of satellite Information Technology ment distribution function- data communication. The Agency (SITA) Information ality and acceptance by satellite bandwidth was not Systems Department. A few services and divisions. always adequate, but the problem areas were high-
The finalisation of logistic replication activities could be lighted, but it was found that resource forecasting func- achieved successfully during the OSIS standards and pro- tionality and acceptance 24-hour cycles. cedures are in place and
by the system groups. The facilities personnel that the staff are complying
The operational functional- successfully tested various with them. ity to enable the opera- patches to the OSIS sys- tional community to have tem and one major OSIS Challenges more visibility of their fleet. release, and all of these OSIS Product
The finalisation of the were successfully imple- The network response and batch/lot functionality. mented. viruses caused the target Finalisation of the The facilities team has suc- dates to slip on many demand, issues and cessfully accepted the fol- occasions.
receipts interface between lowing organisations after The non-performance of OSIS and CALMIS. implementation on OSIS: Information Technology OSIS Implementation SAS PROTEA support Acquisition Centre (ITAC)
Finalisation of the GSB at ship in September 2002. on the CITRIX (software
Louis Trichardt. Naval Station Durban dur- program) acquisition
Finalisation of 10 AD ing December 2002. caused the project to slip
Disposal Unit. Naval Armament Depot by a year.
Finalisation of 1 Air Simon's Town during The single point of respon- Service Unit (ASU) and February 2003. sibility, ie the product the transfer of all The OSIS facilities personnel house concept, is not sup- Squadrons at Waterkloof continuously analyse reports ported by CMI structures. to 1 ASU. and evaluate operational OSIS Implementation OSIS Training data from operations in the The non-availability of
Enablement of instructors field for the different weapon funds almost caused at 68 Air School. systems implemented on implementation to stop in
Continuous training within OSIS. The recommenda- December 2002.
the SA Air Force. tions and advice given to the The reservations of the SA The OSIS facilities team was customer form the basis in Army to implement the involved in various actions respect of possible enhance- force structure elements with regard to the deploy- ments to the weapon system (FSE) on to OSIS.
ment of SA Air Force aircraft manager's business Burundi Information in Burundi. Examples are: processes and improving the Technology (IT) Support
Assistance to 85 Squadron workflow within the opera- Service. The OSIS support at Air Force Base (AFB) tional environment. This of the database manage- Hoedspruit with the audit business advice to the cus- ment system components of the aircraft data where tomer ensures that the differ- is the responsibility of the problems were experi- ent weapon system man- contracted operational enced prior to the deploy- agers maintain every config- database administration ment of these aircraft to uration item forming part of (DBA) personnel as part of
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the IT support service stances, but nevertheless practices in the DOD which within SITA to all the OSIS the CALMIS team has included:
operational environments. made a success of it. On The re-establishment of The DOD policy is that no 11 April 2002 Special DOD technical/engineering civilian support personnel Forces became opera- management structures will form part of any tional on CALMIS. and responsibilities.
deployment. Therefore the A major technical problem The planning, program- delivery of this service via in the equipment ming, budgeting, costing the satellite communica- register/serviceability sta- and control of mainte- tion link to Burundi is not tus system environments nance, explicitly as part of always effective or within was identified and it is the DOD Strategic expected service levels. being rectified in order to Business Plan (including
The workstations that ensure a smooth interface scrutiny by the DPBEC). access the OSIS server in between LIMS and Guidelines have been set Simon's Town were infect- CALMIS. Similarly, very for maintenance plans as ed on 16,17 and 18 good progress was made part of integrated logistic September 2002 with on implementing the force support plans and, in turn, viruses. This virus clean- structure management part of strategic business up process forced the non- system on CALMIS. plans. availability of OSIS to the Another operation to sup- The institution of strategic OSIS users in Simon's port was in process and sourcing and the establish- Town. planning for Operation ment of an optimised bal-
The OSIS users experi- MONUC III was underway. ance between internal and ence an increase in per- The box preparations had external engineering capabil- formance problems during been done and SITA rep- ities. Extensive guidelines the daily OSIS operations resentatives were identi- have been prepared and on the IT infrastructure at fied to take the required transferred to the alternative AFB Hoedspruit and AFB actions to install the new service delivery (ASD) sub- Louis Trichardt. site in the DRC. directorate at Procurement CALMIS Achievements CALMIS Challenge. for possible inclusion in the
The interface testing on Policy is still not available ASD DOD instruction. If the CALMIS and OSIS to guide the development adhered to, these guidelines systems were completed of certain CALMIS func- can have a major impact on and accepted. For the first tionalities such as the DOD effectiveness, efficien- time it was possible to do management of para- cy and economy. provisioning from an OSIS chutes, personal accounts, The re-establishment of dis- unit on a CALMIS supplier cartography and so forth. cipline within the DOD tech- and vice versa. The stock nical/engineering function transfer functionality is cur- ENGINEERING SUPPORT through the creation of a rently being developed technical governance frame- and tested and it will be The following challenges are facing work for the DOD, with pos- implemented within the the general/systems engineering in sible spin-offs into other gov- current financial year. the DOD: ernment departments with The war game exercise The amount of expired DOD significant asset inventories. was a huge success and a ammunition that needs to be Good progress is being lot of positive feedback disposed of, and the unman- made in this regard. The was received. Some ageable extent of the dispos- purpose of the technical gov- areas have been identified al workload. ernance framework would be that require some refine- The under-funding of engi- to ensure the through-life ment, but all things consid- neering functions (especially effectiveness, efficiency, ered, it was a job well maintenance) in the DOD, economy and integrity of done. the resultant backlog, and DOD systems at all levels of
The CALMIS team sup- the subsequent deterioration the systems hierarchy, in ported and continues to risk to DOD main equipment that they are conceived, support Operation FIBRE was made visible. designed, produced, operat- in Burundi. This is done The instituting of modern ed, supported/maintained, under very trying circum- maintenance management modified, managed, phased
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out and disposed of accord- incentives have been A specialist training functionary was ing to approved standards, approved, but with technical appointed in the fire and rescue complying with national instructors excluded. Work services education training develop- statutes and professional is in progress to include ment (ETD) environment to develop and authorised people. instructors and investigate and maintain fire and rescue servic- other, non-aviation speciali- es training and qualifications in ENGINEERING: MAINTENANCE ties. terms of acceptable national stan- A Technical Personnel dards. Special effort is being made A draft DOD Maintenance Policy Advisory Committee work- to ensure that the fire fighter in the and DOD manual for Product group was appointed to SANDF is properly trained in terms System Management were nearing investigate the feasibility of of the requirements and responsibil- finalisation for implementation dur- using a grant or bursary for ities placed on fire and rescue serv- ing FY 2003/04. Furthermore, the the training of apprentices. ices by relevant legislation, such as supply-support policy and adminis- The proposal made forms the: trative procedures for supporting the foundational framework Occupational Health and external operations were still being for the improvement of Safety Act; reviewed. These policies and proce- apprentice and other occu- Fire Brigade Services Act; dures are designed to improve the pational training systems. Veldt and Bush Fire Act; effectiveness, efficiency and econo- Actions were identified that Hazardous Materials Act. my for maintenance in the DOD. will improve the communica- tion and co-operation within A Fire Services Conference was Chief of Logistics and Senior Staff the technical training system. held during May 2002 to address Officer (SSO) Technical Mainten- The process is intended to matters of common concern among ance presented the structures and integrate the components of the DOD services and divisions. A processes of DOD Logistics and the technical training system fire services competition was also maintenance to the German military into a Joint Training process, held. Various working sessions and mission, resulting in improved liai- the FCA, SDF activities, and meetings occur on a regular basis son. The DOD maintenance envi- competency management. to develop and co-ordinate joint ronment was also presented as part matters within the DOD Fire and of the Joint Command and Staff There were at least two technical/ Rescue Services. Programme. engineering Standards Generating Bodies (SGBs) that were in opera- ENGINEERING: AMMUNITION A draft Maintenance Strategy for tion during the year under review. Logistic Support to internal and The idea was to keep the number The DOD provided inputs into the external operations was developed, as low as possible and rather to use Explosives Act and Explosives Re- war-gamed and found workable. It available unit standards that have gulations of the Occupational is believed that this strategy will been written in other sectors. Health and Safety Act, and to the reduce the maintenance costs in National Conventional Arms Control the DOD. Liaison was initiated with the SA Committee (NCACC) on the find- Chapter of Skills International, an ings and recommendations of the The Logistic Support Formation was organisation dedicated to the pro- investigation into the disposal of tasked to prepare a maintenance motion of vocational training for military surplus small-arms ammuni- plan for commercial off-the-shelf youths through competitions, to tion. (COTS) equipment deployed in determine if and how the DOD external operations such as Burundi should get involved. An unlicensed demolition range at and the DRC. Draft policy for the General Piet Joubert training COTS maintenance requirements in ENGINEERING: FIRE AND RES- area was closed during February the acquisition, operating and CUE SERVICES 2003. Liaison is continuing with the phase - out phases over the equip- SAPS and SA DERI (Paardefon- ment life-cycle was developed. Progress in fire and rescue services tein) on joint use of demolition train- policy development was hampered ing areas. A request by Special ENGINEERING/TECHNICAL by the scarcity of experienced fire Forces for a convenient training RESOURCES and rescue personnel in the DOD. area for their special demolitions The DOD policy was still being course was evaluated. CMI has The Technical Personnel Advisory finalised concerning fire and rescue, also been approached to upgrade Committee fire safety, training and promotion of radio communications on demolition Aviation-related technical fire fighters in the DOD. ranges.
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The DOD was (and continues to be) STRATEGIC PROFILE However, a lack of French, Portu- represented at the following ammu- guese and African language-speak- nition-related forums: Vision Statement. To ensure the ing capabilities hampered the serv- The Chemical Industries availability of the right command ice levels with regard to CMI sup- Sector Education and and management information at the port during these exercises. This Training Authority (CHIETA). right place, at the right time, in the matter is receiving urgent attention. The SAPS Bomb Disposal right format to the users. Preparations for Exercise RAIN- workgroup. BOW TREK and Exercise FLINT The National Institute for Mission Statement. To provide LOCK have already started and will Explosives Technology command and management infor- commence during the 1st quarter of (NIXT). mation products and services which FY 2003/04. constitute the provision of a secure The Functional Competency capability to DOD users to capture, Apart from a fixed course schedule, Authority function for ammunition process, retrieve, distribute, store the South African Communications personnel were initiated, resulting in and manage information in the form Security Agency, presented crypto- frequent liaison on DOD ammuni- of voice, data, text, image and graphic courses for the National tion personnel career management, video or any combination thereof. Information Agency and the and the updating of the military Department of Foreign Affairs. training and promotion policy for Mandate. The Chief of CMI's man- Positive feedback was received on ammunition personnel. date derives from the White Paper the outcome of this training. on Defence, the Defence Review, During the period under review, it is the DOD Transformation Design FORCE EMPLOYMENT notable that the ammunition person- and Migration Plan dated 09 Feb- nel was progressively becoming ruary 1998, the DOD Level 1 Plan Operations. The CMI Division more representative in terms of dated 1 October 1999, the Perform- effectively supported the following race and gender. This momentum ance Agreement between the Chief internal deployments: would be maintained during of Joint Support and the Chief of Border Control. 2 Signal FY 2003/04. CMI and the legal requirements Regiment rendered mobile stemming from the Public Finance and tactical telecommunica- The DOD provided support for the Management Act (PFMA). tions support along the local training of United Arab Lesotho border. Emirates ammunition personnel. Against the above-mentioned gov- Coastal Patrols. 1 Signal erning framework, the mandate of Regiment rendered mobile COMMAND AND the Chief CMI is to provide com- and tactical telecommunica- MANAGEMENT mand and management information tions support to the SA Navy INFORMATION SERVICE to the DOD as and when required for coastal patrols on the and manage DOD information on south-east coast. ANNUAL REVIEW behalf of the DOD. Police Intelligence. 2 Signal Regiment rendered mobile Despite the initial uncertainty about DEFENCE CAPABILITIES AND and tactical telecommunica- the possible over-expenditure on OUTPUTS tions support for SAPS intel- the human resource budget (Rm20) ligence operations in the and under-expenditure on the total FORCE PREPARATION Northern Military Police SITA account (Rm6), the Com- Region. mand and Management Information 1 147 learners were trained over Emergency Support. 1 and 2 (CMI) sub-programme managed to the reporting period. This implies Signals Regiments rendered keep expenditure within acceptable that all the training targets set by mobile and tactical telecom- levels. the career managers for the FY munications (emergency) 2002/03 have been met, as well as support during the SAPS's The CMI Division can report that, all the promotional career path crime-combating operations. although it has not performed in requirements. accordance with its plan in all External Operations. The CMI aspects, good progress is being The CMI Division took part in seven Division effectively supported the made in those areas where short- training exercises during the period following external deployments: comings existed. 1 April 2002 to 31 March 2003. All 1 and 2 Signal Regiments activities were effectively supported provided mobile and static in respect of CMI related services. telecommunications support
2002-2003 Annual Report 123 Chapter 10
during operations in the SUPPORT TO GOVERNMENT An improved CMI Division DRC and Burundi. 3 INSTITUTIONS strategic direction process Electronic Workshop provid- and activity time line. ed a repair and maintenance Information Systems Security (ISS) A proposal for a CMI capability and 4 CMI Unit a Support. During the reporting peri- Division management frame- supply-support capability in od, various State departments and work. support of 1 and 2 Signal Provincial governments approached Regiments during these the CMI Division for maintenance Stemming from the information and deployments. Although satis- and support in order to ensure that communication technology acquisi- factory support was ren- existing ISS equipment stays opera- tion projects, the following solutions dered to the deployed tional. The top management of were provided: forces, optimal service deliv- these government institutions was The file track system for the ery was hampered by factors briefed on Information Systems HR Support Centre. such as the power supply Security equipment aspects, as well "Micro Issue Points" for the capability that has not yet as on the processes of obtaining issuing of DOD identification been upgraded, the lack of cryptographic equipment. cards at the various HR adequate logistic personnel Support Centres. and transportation as experi- DEFENCE DIPLOMACY The first iteration of the HR enced by 4 CMI Unit, as well budget planning system. as the lack of adequate Twelve foreign visits took place dur- French, Portuguese and ing the reporting period. The res- Three projects were completed to African language-speaking pective CMI personnel gained valu- enhance the provision of strategic operators. able experience and established information and communication The CMI Division Reserve good relations with their respective technology direction to the DOD Force capability provided by counterparts. and two projects were completed to 6 Signal Regiment rendered establish and maintain the defence the following support servic- Two incoming visits to the SANDF information and communication es, such as postal service (CMI Division) took place during the technology architecture. through 11 Field Post Office reporting period. The visitors were and rear links through Signal very impressed by the CMI Div- The Directorate Documentation Group during external ision's information and communica- Services achieved almost all its deployments. tions capabilities. Very valuable outputs. contacts pertaining to future bench- The CMI Division (2 Signal Regi- FORCE STRUCTURING marking initiatives were established ment) successfully provided tele- between the delegates of the visit- communications support at the vari- The project for the engineering of ing countries and the members of ous Provincial Joint Operations the CMI division's business pro- the CMI Division. Centres, which were established cess, was terminated on 31 March during the International World Cup 2003. The CMI Division's business It is foreseen that the knowledge Cricket Championships. process architecture baseline was and experience gained through updated and will serve as the base- international exposure will definitely The cryptographic equipment line for future Business Process Re- add value to the CMI Division's HR required for the business boeing jet engineering which will commence development programme and its was operationally evaluated and during FY 2003/04. service delivery in future. passed the avionic tests during the first trial. The integration of informa- The CMI Division's business HIGHLIGHTS tion systems is now taking place. process architecture baseline served as the basis for the CMI The Defence Enterprise Information The CMI Division presented a very Division's force design within the Systems Plan was completed. The successful Information Warfare context of Resolution 07/02. The CMI Project, which was terminated Seminar on 19 and 20 November CMI Division's structural concept on 31 March 2003, has the follow- 2002 at the Council for Scientific and macro-structure is completed ing deliverables. and Industrial Research (CSIR). and the re-structuring process of A CMI Division business The feedback reports that were re- the various force structure elements processes architecture base- ceived reflect appreciation for the will commence during the 1st quarter line. seminar and emphasise the impor- of the FY 2003/04. A standardised "planning tance of information warfare for the and costing tool" (prototype). SANDF.
124 Department of Defence Chapter 10
SERVICE DELIVERY since that would have provided an which it is uniquely equipped IMPROVEMENT indication of the magnitude of the in determining the needs of outflow of personnel from the DOD clients and the marketplace. The standardised "planning and and thus the clients for the Service costing tool" (prototype) has been Corps. In view of certain delays A uniquely packaged holistic ap- completed and will be implemented during the execution of the transfor- proach to skills enhancement will be by the CMI Division's force structure mation and restructuring program- provided to clients in a process elements as a first iteration planning me process members are only comprising of the following services: and costing methodology. This ini- expected to become available for Identification of eligible tiative will contribute to more accu- reskilling via the Service Corps at clients. rate planning and budgeting as well the end of May 2003. Assessing of clients. as to ease the burden on the plan- Counselling and career guid- ners at the various management The Service Corps budgeted alloca- ance. levels within the CMI Division. tion represents a zero input infra- Training and facilitation of structure cost budget. The Service training. The total integration of the search Corps does not budget for the cost Placement or employment- task system with the static electro- of re-skilling clients, because that is seeking assistance. nic warfare system, which was com- the responsibility of the service or Creation of an enabling envi- pleted during the period under division on whose strength the ronment that empowers review, will provide a wider search clients are. Considering the contin- those who opt for self task and will provide a quicker uing problem of accurately forecast- employment. response time to the clients. ing an optimal throughput of clients, which will ensure a good return on Mandate. The 1995 Mandate con- The modernisation/upgrading of investment, the issue of "value for tained the embryo of becoming a telephone switchboards in the money" will remain questionable. National Service Corps. The Pretoria area continues. This will The need for such a capability to Service Corps was established as a allow for "least-cost routing" to be address a government commitment, project of the Reconstruction and implemented at the upgraded sites. however, is not questionable. Development Programme (RDP), It implies a further saving on the aimed at military personnel who are DOD's telephone account. STRATEGIC PROFILE being demobilized. The Service Corps was initially to be part of the SERVICE CORPS Vision Statement. The Service SANDF but it would develop into an Corps is a skills enhancement insti- independent and predominantly ANNUAL REVIEW tution striving to enable eligible per- non-military organization. sons, who express such a desire, to During the past year many delibera- become empowered, employable A committee consisting of the tions regarding the mandate of the and self-sustainable in society. Ministers of Defence (Convenor), Service Corps took place. In 1998 Education, Safety and Security, the Plenary Defence Staff Council Mission Statement. In pursuit of Welfare and Population Develop- (PDSC) confirmed that the Service its purpose to deliver marketable ment, Finance, the Minister without Corps would be the resettlement clients to prospective employers, Portfolio and the Minister of Public agent for the DOD and ever since it and potential entrepreneurs in the Works, was to be established to has endeavoured to fulfil this role. small, micro and medium enterpris- urgently advise the Cabinet on the es marketplace, the Service Corps feasibility of extending the scope of The lack of an exit management will be directed to focus on the suc- the scheme to include other unem- framework (EMF) directly contrib- cessful re-integration of its clients ployed persons and the so-called uted to the Service Corps not being into society. This will be done as marginalised youth. able to show a contribution to the follows: output of the DOD from a financial An employment service The advice by the appointed and efficiency viewpoint and its capability in liaison with the Ministerial Committee resulted in existence was continually ques- public and private sectors to the formulation and approval of the tioned. The compilation of policies ensure successful employ- 1996 mandate. In less than 15 and work methods regarding an exit ment. months, in March 1996, Cabinet management system for personnel The utilisation of appropriate approved a mandate for the plan- that would be separated from the technology to maintain its ning of a National Service Corps DOD was crucial to the determina- core competencies. with the following specific provi- tion of a redeployment capability, Providing the service for sions:
2002-2003 Annual Report 125 Chapter 10
Establishment of a National Strategy. are all military veterans not previ- Service Corps with national The Service Corps bases its ously trained through any DOD responsibilities. strategy on a two-path paral- (Service Corps) system. This was Upgrading the standard of lel strategy in support of its in addition to the 98 members who education, vocational skills present mandate as the were already in training. and life skills of the following SANDF Resettlement Agent, groups: as well as the intended A most successful launch of the
Ex-service personnel migration out of the SANDF. Request for Information (RFI) was The youth (in particular The following focus areas held on 17 January 2003. At the females) identified for the Service Centre for Advanced Training (CAT)
The unemployed Corps have been deduced through an information day attend-
Public servants from Joint Support: ed by a very diverse and represen-
Parolees Defining and implementa- tative group of 43 private sector
Probationers tion of PFMA-based inter- participants. The RFI closed on 18
Ex-prisoners, etc nal control, budget and Februart 2003. Only 15 RFI pro- The creation of an enabling delegation models. posals were eventually received by
environment for these Establishment of service the closing date. The Service groups to find formal em- agreements that comply Corps held a workshop from 26-28 ployment or run their own with divisional policy February 2003 to: business, was a priority. between internal and determine a future Service Neither of these two man- external clients. Corps draft model; dates could come to full Formulation and imple- evaluate each submission fruition because of a lack of mentation of plans to cre- according to set criteria; and clients. ate a client-driven ap- generate a future Service proach in a flexible Corps business model that The 1996 Mandate therefore ampli- process-driven structure will be presented to the fied the 1995 Mandate. The sec- through a unifying organi- PDSC /Council of Defence ond part of the 1995 Mandate, sational culture. later in March 2003. which requires the Service Corps to develop into an independent and As a project of the Reconstruction A presentation was made to the predominantly by non-military and Development Programme Minister of Defence on 26 March organisation, still remains. The (RDP) of Government the Service 2003 on the proposed future busi- 1996 Mandate was further amplified Corps forms part of the upliftment ness approach of the Service by the March 1998 PDSC decision initiatives, residing with various Corps. He accepted this approach that the Service Corps must also other governmental departments. but also made the following obser- become the Resettlement Agent of Due to the fact that each depart- vations/decisions: the DOD. ment has various capabilities and The Service Corps will resources, opportunities became migrate to become a nation- After the strategic thinking process apparent to collaterally utilise these al asset outside of the DOD, conducted by the Service Corps in capabilities and resources to but the DOD will always be October/November 2000, the formu- achieve the common goal as pre- its major client. lated two-path strategy was ap- scribed by the RDP strategy. The A mandate must be sought proved by the PDSC on 11 Dec- 1995 Service Corps mandate is to empower the Service ember 2000. On 8 August 2001 the interpreted to include partnerships Corps to reach wider in a Council on Defence resolved that with other government departments, quest for clients. the Service Corps was to continue for example the Department of The Service Corps needs to planning to maintain its functionali- Labour and Department of Educa- be more visible and accessi- ty. tion involved in upliftment program- ble. It ought not to be mes for the illiterate and unem- accommodated within the STRATEGIC DIRECTION ployed in support of the RDP, to DOD. share the utilisation of Service The Minister of Defence will Goals. Corps infrastructure capacity. take charge of the convening To migrate the Service of the Inter-Departmental Corps to become a national HIGHLIGHTS Committee to direct the asset outside the DOD. future Service Corps. To empower eligible persons An intake of 94 members was via skills enhancement. realised in January 2003. Members The Service Corps provided consid-
126 Department of Defence Chapter 10
erable impetus to the process of PERFORMANCE SUMMARY being addressed internally by the resettlement of the SA Navy from Service Corps. Smidtsdrif to Platfontein Farm in the The Service Corps has introduced a Kimberley area. This initiative has new costing tool which will facilitate The financial challenge to execute triggered the local government and the compilation of the MTEF esti- the above activities is found in the its role-players to positively and mates and quarterly reports. non-budgeting by the Divisions for constructively engage in the impas- The SANDF Service Corps has the in-year requirements of the se that inhibited this process. been successfully activated with a employer initiated packages and mission to reintegrate ex-service expiring contracts of serving mem- An intake of 84 clients has taken members. To date the Service bers of the DOD. No budget is place at 17 Shaft between 31 Corps has been successful in train- available to address members on March 2003 and 03 April 2003. The ing their first intakes and in the the certified personnel register clients will be trained in hydroponics establishment of its headquarters, a requiring assistance through the and construction work on two-year central training centre and regional Service Corps as this has been leaderships under the Umsobomvo centres. Its planning defines an withdrawn. Youth Trust. The youths identified entity which could serve as the for this project are all related to mil- nucleus of a National Service AREAS OF CONCERN itary veterans and the Service Corps. Corps was instrumental in this. Al- A draft policy statement and imple- though these clients are not reflect- The Service Corps business con- menting instructions for official ed in the statistics of the Service cept provides the framework ac- donations and sponsorship have Corps, resources were used to cording to its performance, whilst been compiled. A meeting was assist with the intake. the mandate provides the rationale held on 17 February 2003 to work- for the business concept. The shop the draft documents further. The utilisation of the Service Corps Service Corps is dependent for its training capacity has been improved performance on clients derived The German technical advisors over the past year. This includes externally from demobilised persons group has warned that the contin- re-skilling of 170 DOD personnel not serving in the DOD, but who ued lack of throughput of clients since September 2002 at the CAT appear on the certified personnel utilising the facilities at the CAT under a German Aid Agreement, as register, as well as the DOD Exit could seriously hamper the contin- well as training of military veterans Management Framework driven by ued aid for re-skilling from the employ-ed on a work for water pro- the HR Strategy 2010. As the exit Federal Republic of Germany. gramme in terms of a poverty-relief management framework has not as Since the Service Corps has no partnership between the DOD and yet been institutionalised within the control over the client throughput to the Department of Water Affairs and DOD, members exit through the the CAT, other avenues to ensure a Forestry, called Operation employer initiated package and constant throughput of clients are VUSELELA. these are the members currently being investigated. This issue also
Table 10. 5. Total Clients Trained: FY2002/03
Category Client Description Total 1 Non-Statutory Force members not integrated into the DOD 280 2 Natural Attrition Group 0 3 Exit Management Framework 293 4 Clients outside of the DOD 1 037 5 Currently serving members still within the DOD: 6 i. Defence Act Personnel 173 ii. Public Service Act Personnel 150 324 Military Veterans 0
Grand Total of all Categories of Clients for this year 1 934
2002-2003 Annual Report 127 Chapter 10
impacts heavily on the negative per- support of the DOD HR Strategy Training. 89%. formance of the Serv-ice Corps and 2010. Practical Business School. cannot only be managed by the 100%. Service Corps alone; it will have to RESKILLING CAPABILITY be made visible and transferred to The following are the placement the department. Reskilling of former combatants. statistics: Costs were as follows: Career guidance provided to Since members exiting the DOD as Training: clients: 573. a result of the employer-initiated Total training costs: Total of clients advised package currently have the choice R2 440 944. about job opportunities: of utilising the services of the Total cost per client: 573. Service Corps, the lack of market- R4 571. Total of clients placed after ing of the organisation within the Total of courses: 534. the Service Corps process: DOD to all personnel has resulted Accommodation: 175. in a low turnout rate requiring the Total of accommodation services of the Service Corps. An cost: R799 400. The list of DOD members supplied aggressive marketing campaign will Total cost per client: by Directorate Personnel have to be undertaken by the R1 868. Separation: Service Corps within the DOD to Total of clients: 428. Total of members as per empower individuals to make redeployment plan: 600. informed decisions about develop- The PSAP costs are as follows: Total of members registered ment and re-skilling opportunities Training: to enter the Service Corps: when exiting the DOD. The Service Total courses: 150. 420. Corps planned to hold an ex-com- Total cost of training: Total of members entered batant intake of ± 100 as a partner- R649 801-00. the Service Corps process: ship with Department of Labour Total cost per client: 293. through the DIDTETA in January R4 332.
2003 throughout the country via the Accommodation: The Service Corps as a whole
Service Corps Regional Offices. Total clients: 145. achieved an expenditure of 97,2 per
The DIDTETA, through the National Total cost of accommoda- cent of the revised projected expen- Skills Development Fund, will fund tion: R847 900. diture for the period ending 31 the training costs and allowances Total cost per client: March 2003 (including human for the trainees. R5 848. resource expenditure with a surplus of R910 185,00). DEFENCE OUTPUTS AND SER- Reskilling of employer initiated VICE DELIVERY TRENDS package members. The costs were Problems relating to the provision- as follows: ing and procurement process were CORE OBJECTIVES Training: taken up with the relevant process
Total courses: 351. owners and are in the process of
To provide direction and leadership Total cost of training: being rectified. on the Service Corps process as R1 718 165. SERVICE DELIVERY part of the redeployment mecha- Total cost per client: nism of the DOD in accordance with R4 895. IMPROVEMENT approved policy. Total busy with training: Supporting plans are currently 30. being developed to be included in To provide re-skilling through in- Total registered: 420. the FY 2003/04 business plans. house and outsourced training, and The number of clients indi- Measures to track and report on an employment assistance service cated is according to the these supporting plans are still by means of public-private partner invoices received per client. being developed, but will be avail- shipping and networking initiatives, The total training costs able in the next financial cycle. for the redeployment mechanism of employer initiated package the DOD in support of the DOD HR members for the above JOINT TRAINING Strategy 2010. period is R2 065 827. STRATEGIC PROFILE To provide support for the Service The pass rate for clients at the Corps process within the redeploy- training institutions was as follows: Vision. We are leaders in military ment mechanism of the DOD in Centre for Advanced professional development.
128 Department of Defence Chapter 10
Mission. To present joint learning Actual Output SANDF COLET opportunities and to promote and Military Academy contract The primary objective of ensure the continuous improvement - 69 learners enrolled of COLET is the establishment of the DOD education, training and whom five withdrew, 64 of a centre of excellence for development system. promotable to the 2nd year. educational technology and
SAAF Aircrew contract - ETD systems integrity in the PERFORMANCE SUMMARY 22 learners enrolled of DOD. whom one withdrew, 21 The Foundation and The Youth Foundation training pro- complied with require- Implementation Centres gramme for FY 2002/03 successful- ments. have not yet been estab- ly completed, as determined by lished to full capacity. The service requirements, has been 2nd Year - Part of whole qualifica- unit was, however, granted achieved. It was planned for 200 tion temporary accreditation by learners to attend, and the pro- Planned. 36 learners to the ETDP SETA, which was gramme started with 205 members. enrol of whom at least 80 a great achievement. per cent should achieve the The provision of educational The South African National Defence required standards for a technology training was suc- College presents an integrated diploma. cessfully achieved for the strategic developmental learning Actual Output: 36 learners past year. 17 programmes opportunity to senior members of enrolled of whom three were planned and success- the DOD, other government depart- learners withdrew, 33 pro- fully presented. 445 learners ments, invited representatives from motable to the 3rd year. have been planned for whilst foreign defence forces and selected 509 were trained. The rea- SA defence industry representa- 3rd Year - Whole qualification son for training 64 more was tives. This learning opportunity is (Degree) due to special requests called the executive national securi- Planned. 49 learners to made for specific pro- ty programme (ENSP). The two enrol of whom at least 85 grammes. ENSPs planned for FY 2002/03 per cent should achieve the were successfully executed by the required standards for a Personnel Service School South African National Defence Degree. The Personnel Service College. 36 Members started on Actual Output. 54 learners School presents selected each programme and 72 members enrolled, two with further functional "non-combat/mis- completed it successfully. examinations pending. Eight sion" learning opportunities learners continued part-time, to members of the DOD. The Joint Senior Command and and 81 per cent graduated. This objective was success- Staff programme (JSCSP), which is fully achieved. A total of 25 presented once a year by the SA Post-graduate learning opportunities were National War College, was present- Planned. 55 learners to planned/scheduled and pre- ed with limited success. Of the 110 enrol of whom at least 95 sented. 495 learners were learners who started the program- per cent should achieve the planned for but 498 were me, 5 were unsuccessful. required standards. trained. Actual Output. 17 learners 37 additional learning oppor- The Military Academy provides were awarded B-Mil Hons tunities were presented and academic and military training pro- and two M-Mil during 554 more learners trained grammes to designated clients December 2002. The others than what was originally throughout the year. It issues cer- have various completion planned. The reason for the tificates, diplomas and degrees. dates. extra training provided was During the period under review it the urgent training requests partially achieved its objectives as Preparatory Certificate in Military by DPF. follows: Studies The development of new Planned. 30 learners to curricula was still in process 1st Year - Part of whole qualification enrol of whom at least 90 and should be in place by Planned. 92 learners to per cent should achieve the middle 2003 for the National enrol of whom at least 80 required standards. War Simulation Centre. per cent achieve the Actual Output. 30 learners The provisioning of a war- required standards for a achieved the required stan- gaming and simulation serv- Certificate. dards. ice to the DOD was success-
2002-2003 Annual Report 129 Chapter 10
fully achieved as a total of currently being captured on CD- and promulgated numerous stan- 26 learning opportunities ROM for ease of distance-learning dard operating procedures (SOPs) were planned for and 1 291 accessibility. Concurrently, the and policies. Included were SOPs learners were trained. It is National Qualifications Framework and policies pertaining to service very difficult to plan for the (NQF) accreditation (registration/ benefits, remuneration, data integri- exact mount of learners in certification) is being pursued with ty, honours and awards, and dress this environment. the forthcoming establishment of a regulations. Standards Generating Body (SGB). DOD Centre for Competence Curriculum development is cog- DEFENCE OUTPUTS Development (CCD) nisant of unit standards and out- Cape Town Office. 58 core comes-based formulation pre- International Relations (Visits competency modules scripts. abroad and visits to the RSA) (CCMs) were planned for, A German defence delega- and 841 learners were to A project was initiated to investigate tion visited South Africa and attend. The target output the possibility of providing access to HR Support Centre gave a was partially achieved. 54 the JSCSP for the Reserve Force presentation on the HR sup- learning opportunities were members, PSAP and other clients. port process in the DOD. presented and 773 learners A HR Support Centre mem- attended. HR SUPPORT CENTRE ber attended a course for Pretoria Office. 36 core military language teachers competency modules were STRATEGIC PROFILE which was extremely useful. planned for and 779 learners Another HR Support Centre Vision. Ultimate human resources were to attend. The target member attended a career (HR) support. output was partially achieved management seminar in because 35 learning oppor- Mission. To provide a timeous, Canada. tunities were presented and professional, credible and efficient 762 learners attended. HR service which meets organisa- OUTPUTS PRODUCED FOR DOD tional and individual needs. CLIENTS POLICY DEVELOPMENTS Mandate. The mandate of HR Chief of HR Support Office While a number of policies are still Support Centre is to provide the Objective. To exercise at different stages of development ultimate HR Support service to the command and control over and approval, the following were DOD. the HR Support Centre and approved and promulgated during HR Support Satelite offices. the period under review: OBJECTIVES Output. HR strategic direc- Policy on education, training tion; HR-related advice to The HR Support Centre seeks to and development (ETD) for the DOD and timely, credible achieve the following objectives: PSAP members. and professional HR Support Centralised control and Policy and procedures for Service according to organi- decentralised execution. the implementation of adult- sational and individual Empowerment of HR func- based education and training needs. tionaries. (ABET). This policy is cur- HR Support environment is rently under review. Directorate Personnel Acquisition to remain dynamic. Objective. To acquire and Maintenance of transparen- NEW PROJECTS provide personnel. cy. Achievements. Promotion of the "one force" The curriculum for a Joint Warrant 309 000 applications were concept. Officer programme (JWOP) at the processed. Client involvement in HR operational level is in its develop- 1 606 members were support processes. mental phase. Final preparation for recruited. Unification of the personnel implementation in 2004 is still in 63 career exhibitions were components in the DOD (full- progress. The envisaged WO/NCO attended. time, reserves and the Academy/Wing is to be established PSAP). at Military Base Wonderboom until Directorate Personnel Maintenance FY 2009/10, when it will be co- POLICY DEVELOPMENT Objective. To provide time- located to the Defence Training ly, credible and professional Institute. The Warfare Module is The HR Support Centre developed HR support service to the
130 Department of Defence Chapter 10
DOD, regarding service ben- staffing were received and MILITARY POLICING efits, service conditions, processed by the AGENCY remuneration and HR sys- Directorate. tem data integrity. ANNUAL REVIEW Achievement. Conform- Directorate Ceremonial Military ance to the administrative, Music Although the Military Policing operational and technical Objective. To plan, exe- Agency (MPA) could not provide the (AOT) policies and standard cute, manage and evaluate complete combat-ready provost operating procedures to sup- the ceremonial military company as required by Chief Joint port personnel maintenance music, honours and awards Operations, the MPA was still able with regard to housing, serv- process in the DOD. to achieve the objective by utilising ice benefits, medical admin- Achievement. 44 parades MPA resources from other MPA istration, termination of serv- were co-ordinated and 46 structures as an interim mecha- ice and pension benefits, 262 medals issued. nism. Sufficient MPA support was salary administration, sup- provided for all peace support oper- Directorate Languages port to Chief Joint Oper- ations. Objective. To direct and ations commitments, iden- render corporate language tification of SANDF/MOD With the exception of a few prob- services in the DOD. employees as instructed and lems experienced, especially in the Achievement. 10 Courses the implementation of equal processes of procurement, the MPA were presented in respect of opportunities and affirmative achieved its outputs as planned. the co-ordination of the lan- action. The budget allocation of the MPA guage function in the DOD. for FY 2002/03 entailed an amount 3 courses were presented in Directorate Military Personnel of Rm197.6, of which an amount of order to prepare forces for Utilisation Rm191.6 was paid, resulting in a peace support operations. Objective. To direct the util- 96.96% payment for the financial isation of Defence Act Directorate Labour and Service year. Personnel at corporate level. Relations Achievement. The direc- Objective. To direct and The MPA has for the past year pre- torate was successful in the provide labour and service sented general military competency development and directing of relations systems and sup- courses to members of the MPA career management for the port to the DOD. and from the SA Army, in an effort Defence Act Personnel. The Achievement. to qualify MPA members for promo- Structure Management 30 arbitration hearings in tion, which was not previously pos- Control System (SMCS) was terms of the Labour sible because of course acceptan- also managed successfully. Relations Act and ces. These courses were not Bargaining Councils' reso- included in the strategic plan of the Directorate Career Development for lution procedures with MPA, but the Chief of the MPA Public Service Act Personnel 100% success rate. decided to make funds available to (PSAP) 584 grievances were present the courses in order to Objective. To direct and resolved at corporate level ensure the career development of provide career development which included 50 Defence MPA members. The MPA will not and utilisation of PSAP Act Personnel in terms of continue to present these general employees. the Military Disciplinary military competency courses during Achievement. Personnel Code. the FY 2003/04. assessments for 3 783 had 410 cases of misconduct been worked through and were administered at cor- The MPA has developed a criminal- promotions of 85 would be porate level and 408 ity plan that will be implemented effected to the amount of cases were administered and reported on by the services and R1 927 770 once approval at the 23 client bases. divisions during FY 2003/04. had been obtained. Notches of 1 561 nominations were Directorate Personnel Separation STRATEGIC PROFILE audited. Merit awards to the Objective. To direct and act amount of R9 418 132 were as a nodal point for DOD Mandate. The MPA is responsible paid out to PSAP. personnel separation servic- for providing a military policing Numerous requests for the es as well as veteran admin- capability to the DOD that entails advertisement of posts and istration. the following:
2002-2003 Annual Report 131 Chapter 10
Policing services. The MPA is currently experiencing French forces and the Military correctional services. an increasing demand from C J SANDF, of which 10 members MPA strategic direction. Ops to increase the MPA support to were of the MPA. MP force preparation. peace support operations. The Results Achieved. MP force employment. MPA is not in a position to continue Improvement of combat-readi- with additional MPA support to ness for future purposes.
Vision. A crime-free and disci- peace support operations with the Losses. None. plined DOD. current approved structure and is in the process of addressing this Exercise OXIDE II Mission. The MPA provides a pro- shortcoming. 83 per cent of the fessional cost-effective military current medically fit personnel of 13 Duration/Dates. November policing service to the DOD and Provost Company are currently 2002. other interest groups in supporting being deployed simultaneously and Aim. To provide cost-effective the development of a crime-free there is insufficient provision avail- Military Police support to and disciplined environment, by able at 13 Provost Company to Exercise OXIDE II. means of the following: relieve the deployed personnel. Geographic Area. La Community involvement. Reunion Island. Competent members with DEFENCE COMMITMENTS Nature/Description of the high morale and integrity. Exercise. Search-and-rescue Mutual support. Exercise IRON EAGLE operation. Optimal utilisation of Participating Forces. The
resources. Duration/Dates. 14 August - French forces and the 13 September 2002. SANDF, of which 10 members
DEFENCE CAPABILITIES AND Aim. To provide cost-effec- were of the MPA.
OUTPUTS tive Military Police support to Results Achieved. Exercise IRON EAGLE. Improvement of combat-readi-
DEFENCE CAPABILITIES Geographic Area. SA Army ness for future purposes.
Combat Training Centre, Losses. None. The operational capability of the Lohathla.
MPA entails only one MP Coy, Nature/Description of the Operation MISTRAL namely 13 Provost Company, locat- Exercise. Practical exercise ed in Thaba Tshwane. 13 Provost as part of JCSD course at SA Duration/Dates. Rotation Company provides CJ Ops with Army Combat Training from April - September 2002 combat-ready MP forces for all Centre, Lohathla. and from October - March types of operations. 13 Provost Participating Forces. 60 2003.
Company consists of 3 Provost MPA. Aim. To provide cost-effec-
(MP) platoons and, according to MP Results Achieved. tive Military Police support to doctrine, a Provost platoon should Improvement of combat-readi- Operation MISTRAL. support a brigade-strong military ness for future purposes. Geographic Area. DRC. force. The rest of the MPA opera- Losses. None. Nature/Description of the tional capability resides in the Operation. UN peace mis- Reserve Force component of Exercise RAINBOW TREK sion.
1 Provost Regiment with the 3 Participating Forces. The
Reserve Force companies. Duration/Dates. 31 March - SANDF and other contributing 11 April 2002. countries. 48 MPA members
The force employment strategy Aim. To provide cost-effec- are involved during one rota- requires the MPA to provide 1 com- tive Military Police support to tion. bat-ready MP company to support Exercise RAINBOW TREK. Results Achieved.
CJ Ops. Although the MPA only Geographic Area. Richards Executing Military Police tasks partially met the specified require- Bay and Hellsgate Training (good successes as part of ment from CJ Ops through the Area. the investigation of crime) and capability of 13 Provost Company, Nature/Description of the also rendered MPA support to the MPA fully supported CJ Ops' Exercise. Command post SANDF forces deployed. requirement by providing the exercise and Field Training Losses. None. required MP Coy from MP person- exercise including a beach nel situated at other MPA struc- landing with French forces. tures. Participating Forces. The
132 Department of Defence Chapter 10
Operation FIBRE SANDF forces deployed. cent for the investigation of
Losses. None. case dockets over the same
Duration/Dates. From March period. 2002 - June 2003 with rotation MILITARY POLICE AGENCY The most cases (47 per of members. STATISTICS cent) were reported in the
Aim. To provide cost-effec- Northern MP Region, and tive MP support to Op FIBRE. Workload on CR Cases (Criminal more specifically in the
Geographic Area. Burundi. Offences). During FY 2002/03 the Pretoria area.
Nature/Description of the cases on hand, (backlog) increased Operation. UN authorised by a total of 758 cases (see SERVICE DELIVERY mission. Figure10.1). It is important to take IMPROVEMENT
Participating Forces. The cognisance of the following SANDF, of which 18 MPA aspects/trends: The MPA compiled a MPA strategy members formed part of the The total number of cases in October 2002 and has identified MP contingent and 20 MPA reported decreased by 363 the need to improve service delivery members formed part of the cases. A total of 4 403 to its clients. All the MPA structures VIP contingent. cases were reported to the have been instructed to place top
Results Achieved. MPA during FY 2001/02 and priority on service delivery, and the Executing Military Police tasks 4 040 cases were reported financial resource allocation for (good successes as part of during FY 2002/03. FY 2003/04 within the MPA has the investigation of crime) and The success rate decreased been adjusted accordingly. also rendered MPA support to from 69 per cent to 68 per
Figure 10.1. Crime Cases Reported to the MPA: FY 2002/03
Crime Cases Reported to the MPA 1 April 2002 to 31 March 2003 8 000
7 000 4 768
6 000 5 324 5 111 5 320 5 000 4 768 4 849 4 968 4 849 4 968 4 562 4 403 4 562 3 927 4 000 4 040 3 310 3 000 2 219 2 000 1 467 1 499 1 065 1 063 1 000
0 Carried over Received Successful Unsuccessful On Hand
FY 1999/00 FY 2000/01 FY 2001/02 FY 200203
2002-2003 Annual Report 133 Chapter 10
Figure 10.2. Economic Related Offences: FY 2002/03
Economic Related Offences 1 April 2002 to 31 March 2003 1 200
998 1 000 995 984 928
800 736 722
594 599 600 549 527 491 408 400
223 200 147 159 156
0 State Property Private Property House Breaking and Theft Fraud
FY 1999/00 FY 2000/01 FY 2001/02 FY 200203
134 Department of Defence Chapter 11
COMMAND AND CONTROL
ANNUAL REVIEW
The Joint Operations Division has tial and have gained the respect of undergone a structural change dur- the Burundian population. Despite ing this period of reporting. The minor internal disciplinary problems, military strategy is being used for which have been corrected within the guidance of the conduct of the South African contingent, operations both internally and exter- morale remains high. They realise nally. The emphasis has been on the importance of their task at hand. the conduct of external operations The gradual scaling down of inter- such as Operation MISTRAL in the nal operations in accordance with Democratic Republic of the Congo the force employment strategy is (DRC) and Operation FIBRE in taking place. During the period Burundi. The deployment of under review, there were seven SANDF soldiers to UNMEE to companies deployed for border con- observe the mon- trol purposes itoring of the bor- and the der area between Commandos Ethiopia and INTRODUCTION are responsible Eritrea has also for the conduct enjoyed the of ad hoc oper- attention of staff members of Joint ations in support of the South Operations Division. African Police Service (SAPS).
As far as Operation FIBRE is con- The SA Air Force continues to pro- cerned, attempts at establishing vide aircraft and crews for internal peace in Burundi have been frus- visual reconnaissance and trooping trated by the inability of the various in support of operations with the political factions of that country to SAPS. get together at various times. This Maritime coastal patrols are con- has meant that various members of ducted from time to time as the Joint Operations Division within required and patrols include Marion the operations planning staff com- and Prince Edward islands. partment had to be continuously involved in order to ensure the suc- Joint Operations Division is unique cess of the peace process. in that its responsibilities differ from the other Services and Divisions, as The South African Protection it is the only division that conducts Support Detachment (SAPSD) ele- operations. Due to this fact the ments deployed in Burundi have defence commitments table in this gained a reputation for being impar- report is of utmost importance.
2002-2003 Annual Report 135 Chapter 11
136 Department of Defence Chapter 11
STRATEGIC PROFILE Staff Council on 31 October 2002 allocation of funding for the prepa- and then to the Plenary Defence ration of forces and to meet project- Vision. To conduct successful and Staff Council (PDSC) meeting on 8 ed operational deployments, the efficient operations through joint- November 2002. The concept was combat readiness schedule was ness. approved by the PDSC as the basis introduced to the force provision for further development. The process. It indicates the required Mission. To initiate, plan, com- expected output of the proposed operational readiness of forces mand, control, co-ordinate and eval- process will include the following: and/or capabilities over the uate all authorised SANDF priori- A statement of required Medium-term Expenditure tised missions. capabilities. Framework (MTEF) period. It is still An assessment of current being refined and certain determi- POLICY DEVELOPMENTS and planned capabilities. nants are not yet present, eg mis- Prioritised research require- sion relationship to the capability. A Head of Department Instruction ments. As the process and schedule on the capital acquisition process mature, these factors will be intro- and the Public Finance Manage- Guidelines for force design, force duced to make the document more ment Act (PFMA), issued on 21 structure, force development, tech- prescriptive and accurate in guiding February 2002, ordered an evalua- nology development and equipment force preparation and will facilitate tion of all capital acquisition projects acquisition projects. more meaningful measurement of in terms of the PFMA and the align- effectiveness. ment of the capital acquisition pro- Development of the project pri- cess with international best prac- oritisation model. In order to as- MEDIUM-TERM FORCE EMPLOY- tice. An investigation into capability sist in determining the allocation of MENT GUIDELINES management was done to ensure funding to projects, an investigation that the process utilised by the was initiated into developing a In previous years the short- and SANDF, which determines the method of ranking projects in order medium-term force employment method of acquisition of defence of relative priority. This investiga- plan served as the indication from materiél, would meet with the re- tion commenced in 2000 and the Chief Joint Operations to the force quirements of the PFMA. Particular model was tested during 2001. Re- providers of what the force levels reference was made to Section 38 finement was done and the projects and employment requirements were of the Act relating to the responsibil- were subjected to the model again during the period of the plan. This ity of the head of department to in October 2002. The intention is was used as the basis for planning ensure that: that the prioritisation will eventually for the preparation and availability The department's resources constitute a sub-process of the cap- of forces. With the promulgation of are utilised in an effective, ability management process. The the military strategy and in particu- efficient economical and development has been conducted lar the force employment strategy, transparent manner, and under the leadership of Inspector the existing short- and medium-term A system is in place for the General DOD. In co-operation with force employment plan needed to proper evaluation of all representatives of the services and be reviewed to ensure that it reflect- major projects prior to final divisions, working groups were facil- ed the direction and force require- decision. itated to generate the required data ment priorities indicated in the force which was applied to the model. employment strategy. The initial conceptual process was This in turn has produced a priori- developed and is currently being tised list, which is in the process of The guidelines, which have refined. This is based on the rela- being evaluated against the military replaced to a large measure the tionship between higher-level DOD and force employment strategies short- and medium-term force processes and the capability man- and the medium-term force employ- employment plan, are an indication agement process, the sub-process- ment guidelines. Once mature, the of the operational requirements and es contained in the capability man- model is expected to improve the the estimated resources to perform agement process and the relation- quality of decision-making when al- the tasks identified for the DOD. ship between sub-processes. How- locating funds to projects supporting Based on the Minister's directive ever, the latter will only be devel- the required defence capabilities. issued to the Secretary for Defence oped to maturity once the process and Chief of the SANDF on 8 Sep- is implemented. Priority was given COMBAT READINESS tember 2002, the objective was to to the development of the conceptu- SCHEDULE produce a forecast of what al process which was completed resources could be needed, where and presented to the Operations In order to improve the method of and how they could be deployed
2002-2003 Annual Report 137 Chapter 11
and how they should be supported tors, a mission support unit, a INTERNAL OPERATIONS and sustained. Despite some minor guard and security unit, a shortcomings, the force employ- medical task team and an air Operation INTEXO (Border ment guidelines provide more spe- element. Protection Operations). cific direction to force providers than Operation INTEXO contin- in the past. Operation MONUC 1 ues on an ongoing basis as part of the SANDF commit- FINALISED JOINT OPERATIONS One officer (colonel) is deployed in ment to combat transnational DIVISION STRUCTURES Kampala, Uganda and fulfils the crime. Other operations, role of chief military liaison officer. which form part of Operation A three tier organisational structure INTEXO, include SA Air has been created. The structure Operation MISTRAL (MONUC) Force and SA Navy opera- comprises of a strategic level divi- tions along the coast of sional headquarters (HQ), a joint This is the contribution made to the South Africa within the RSA operational HQ and nine joint tacti- United Nations (UN) mission for the economic exclusion zone cal HQs. Each of the joint tactical DRC. (EEZ) in order to combat the
HQs is at provincial level and there The RSA forces include spe- smuggling of abalone and is one for each province. cialist elements such as cargo other commodities. An aver- HQ staff (maximum of 25) age of seven infantry com- Special Forces Brigade HQ with its handling teams (48), medical panies is deployed along the force structure elements remain personnel (6), staff officers national borders at any one unchang-ed and under command of (11), fire fighting teams (14) time for this purpose. They Chief Joint Operations. and military policemen (48). are deployed along the fol-
The MONUC mandate was lowing borders: DEFENCE COMMITMENTS extended by the UN to March Lesotho - Transkei. 2003 and also includes an Mozambique - Swaziland - Joint Operations Division is respon- increase of force levels to Natal. sible for the planning and conduct 8 700. Zimbabwe - Limpopo of all military operations and exer- Province. cises as instructed by the DOD Operation ESPRESSO Operation STIPPER (Rural according to DOD policy and strate- Safeguarding in Support of gy, which in turn is derived from This operation consists of the de- the SAPS). This operation national strategy. ployment of military liaison officers continues at Regional Joint and staff officers as part of the UN Task Force (RJTF) level PEACE SUPPORT/PEACE- mission to Ethiopia and Eritrea as where it is co-ordinated at KEEPING OPERATIONS part of UNMEE and OLMEE. At tactical level. Due to the present the following members of gradual withdrawal of per- The following external operations the SANDF are deployed: sonnel from RJTF HQs, the were conducted by Joint Operations UNMEE. Seven military involvement is gradually get- Division and still continue: observers/staff officers. ting less as per agreement
OLMEE. One senior military with the SAPS. However, Operation FIBRE representative, one military the SAPS are still inclined to assistant, two military liaison rely on the military for sup- The continued deployment of the officers and one driver. port, especially when it SAPSD in Burundi. This deploy- comes to the need for the ment is revised every six months. Planning for the African mission to deployment of specialist
The SAPSD provide VIP pro- Burundi enjoyed very high priority equipment only issued to the tection for returned opposition during the latter part of the reporting military. To date many leaders who are participating period. The hard work by staff offi- deployments have taken in the Burundi Transitional cers, sometimes under great pres- place to give the necessary Government. sure of limited time has been an protection to the SAPS while
The force structure elements indication of the loyalty and dedica- they conduct their tasks. are rotated every four months. tion of all Joint Operations Division The Army Territorial Reserve
On 4 March 2003 there were staff to the SANDF and especially (ATR), previously known as 772 SANDF members deploy- to do a professional job on behalf of the Commandos, have also ed in Bujumbura. This includ- the country as a whole. reacted to criminal activities es HQ elements, VIP protec- in various areas and suc-
138 Department of Defence Chapter 11
cesses have been attained. French landing ship LA and the local businesses In turn these successes GRANDIERE and the RSA also benefited. have given a positive image combat support ship SAS of the SANDF in general OUTENIQUA was an The Special Forces Brigade contin- despite one or two occa- excellent combination of ued to conduct specific operations sions where the protection and support where their expertise was required. Commandos have been from a maritime perspec- The Brigade, through their excellent accused of working outside tive in the conduct of service proved that they are of the law. beach landings, establish- absolutely indispensable. ment of a Naval MULTINATIONAL EXERCISES Evacuation Control Centre During the period under review the AND TRAINING and general support for mobilisation and demobilisation operations. sub-division was very busy ensuring Several multi-national exercises The SANDF paratroopers that the external troop commitments were planned during the reporting and pathfinders were the and rotations continued in a smooth period and some were also execut- most effective. Their deploy- manner. The following took place: ed as per planning. These include ment drills and approach Operation FIBRE. There Exercises RAINBOW TREK and encompassing light and were four mobilisations for OXIDE with the French and quick deployments to the four deployments involv- Exercise FLINTLOCK with the achieve the operational and ing more than 3 000 person- Americans. Exercise RAINBOW tactical objectives were nel. TREK is an excellent example of excellent. Operation MISTRAL, South the good co-operation between the The deployment of an on- African National Defence Force RSA (Joint Operations Division in board command post in a Specialist Contingent (SANDF- particular) and the French (specifi- SAAF Oryx was something SPEC). For MISTRAL III a cally the French Forces in the quite new for the French and total of 1 300 personnel Southern Indian Ocean FASZOI). they said that this was an were mobilised. Many lessons were learned by both excellent idea for controlling VIP Protection (Courses). nations in this humanitarian aid/ the operation. 580 personnel were peace support operations and the The use of modern technolo- mobilised for this purpose. members of Joint Operations gy by the French was a Division, who took part in the exer- good lesson to learn. The Intelligence structures, with requi- cise, had the opportunity of ensur- French pathfinders deploy site equipment and infrastructure, ing that their planning and execu- with a laptop computer, digi- were established in order to ensure tion at the strategic, operational and tal camera and a phone successful operations, especially tactical levels confirmed mission satellite link. This allows those outside the country. readiness. The following lessons them to immediately send were a positive experience for Joint photos of possible targets Successful counter-intelligence Operations Division: and objectives for confirma- activities and procedures were con- Operations can be conduct- tion and information to their ducted and implemented during the ed at short notice despite dif- intelligence elements. It also reporting period. Specific success- ferences in doctrine and lan- allows them to send written es recorded are as follows: guage. messages by computer eg, Full counter-intelligence par- Different approaches can be situation reports and gives ticipation was maintained amalgamated to work them the ability to download during all operations and towards success. real time satellite photogra- exercises by counter-intelli- Planning and execution of phy. gence task teams deployed joint and combined military The integration of members at the operational and tacti- assets works well. of the Department of Foreign cal levels. Examples of this are: Affairs (DFA), local town Specific successes include
The deployment of both management including dis- the containment of potential French and RSA para- aster management and traf- adversarial intelligence activ- troopers using French fic police, the local Red ities during the execution of C160 aircraft and RSA Cross Society, the Bay Exercise RAINBOW TREK Oryx helicopters. Hospital and the general as well as during the plan-
The deployment of the public interest contributed to ning stages of Exercise French frigate NIVOSE, the success of the exercise FLINTLOCK.
2002-2003 Annual Report 139 Chapter 11
Counter-intelligence activi- The deployment of RSA Operations Division and DFA ties greatly contributed forces to Kindu as part of the remains very good. Close towards force protection for Disarmament, Demobili- liaison took place for the the external operations sation and Reintegration deployment of troops exter- presently conducted and are (DDR) programme were pro- nally and the DFA was very reflected in the low occur- vided with satellite communi- helpful during multinational rence of security-related inci- cations as well as computer exercises within the RSA dents. equipment to allow them to where they rendered assis- Although existing information do their job effectively. This tance to allow foreign troops indicated that organised allows for effective command speedy entry into the RSA. crime syndicates targeted and control from Joint Ope- Exercise RAINBOW TREK is SANDF equipment stock- rations Division and to the an excellent example of piled and mobilised for exter- UN Mission HQ in the DRC. such assistance. nal operations, virtually no The project to provide new Co-operation remained good incidents of crime were computer cables for the new and the Department of recorded. This can be attrib- computer server is well Home Affairs assisted where uted to effective counter- underway and will allow for possible in internal opera- intelligence counter-meas- more effective computer tions in conjunction with the ures and planning proce- service to all Joint SAPS. Customs and excise dures. Operations Division staff members assisted in meet- A draft doctrine for the con- members, thus enhancing ings such as cross-border duct of counter-intelligence the effectiveness of day-to- liaison with our neighbouring within the SANDF was com- day activities. The deploy- countries. pleted during the reporting ment of elements of Joint Close co-operation is period and was being man- Operations Division to enjoyed with local govern- aged through the approval Swartkop Park required the ment establishments wher- process. provision of additional com- ever the SANDF conducts Aggressive counter-intelli- puter equipment and this operations. Local traffic gence measures during the was provided by Joint police assist military convoys conduct of internal opera- Operations CMI within a very and local hospitals in smaller tions resulted in the arrest of short space of time to allow towns render assistance 18 SANDF transgressors. the command cadre to con- where necessary. tinue with their tasks at Joint Operations Command and hand. SUCCESSES Management Information (CMI). Provision of CMI equipment Much support was rendered to and services for Exercise The following successes were ensure good command and control RAINBOW TREK allowed for achieved between 1 April 2002 and of RSA forces deployed externally. direct phone communica- 9 February 2003: Support to SAPSD has been tions to Joint Operations Weapons found - 1 877. a success story. Reliable Division Headquarters in Narcotics confiscated
communications through a Pretoria. Tactical communi- Dagga - 78 202 kg.
satellite link were estab- cations were also provided Mandrax - 5 970 tablets.
lished between Joint and allowed for command Cocaine - 30 tablets.
Operations Division and the and control to the lowest Grey tablets - 267 tablets.
troops deployed in Burundi. level. Other - 342 tablets. A number of computers and Precious metal recovered
related equipment were also ASSISTANCE TO OTHER STATE Gold dust (g) - 3 699.
made available to facilitate DEPARTMENTS Copper (Kg) - 110. planning and record keeping Livestock recovered - 1 751. for operations. CMI person- Assistance was given to the Undocumented migrants nel also participated in the SAPS as an integral part of apprehended - 51 522. planning process for the Operation STIPPER, Stolen vehicles recovered - deployment of the African INTEXO and BARRIER. 766. mission to Burundi. Co-operation between Joint
140 Department of Defence Chapter 11
Table 11.1 Joint Operations Defence Commitments: External
Exercise/ Duration Aim Area Nature Forces Description Operation Operation Continuous Deployment of Democratic Deployment 1 x C2 supt unit, Support to MISTRAL (Forces are South African Republic of of specialist 2 x airfield crash MONUC rotated every National Defence the Congo support teams rescue and fire throughout the 6 months) Force Specialist as part of UN fighting teams, Democratic Contingent Operation Republic of the 6 x air cargo (SANDFSPEC) MONUC Congo on an handling teams, ongoing basis 2 x emergency medical teams and 15 military observers
Operation Continuous Deployment of Burundi Deployment SAPSD RSA contribu- FIBRE (Forces are South African of troops to 1 x mission HQ, tion to establish- rotated every Protection and protect return- ment of peace 1 x protection unit, 6 months) Support ing leaders efforts in Central Detachment 1 x guard and Africa / Burundi (SAPSD) support unit
Operation Continuous Deployment of Ethiopia UN military UNMEE RSA contribu- ESPRESSO (Forces are Military Eritrea observers 7 x military tion to establish- rotated every Observers deployment observers/ staff ment of peace 6 months) officers. efforts OLMEE 1 x senior military representa-tive, 1 x military assistant, 2 x military liaison officers; and 1 x driver
Note: There were no losses to report on any of the operations mentioned above.
2002-2003 Annual Report 141 Chapter 11
Table 11.2 Joint Operations Defence Commitments: Internal
Exercise/ Duration Aim Area Nature Forces Description Operation Operation Continuous Border protection Swaziland, Border patrols 7 x infantry Conducted in INTEXO Zimbabwe to prevent ille- companies conjunction with and Lesotho gal border SAPS Border borders crossings into Police the RSA
Operation Continuous Rural safeguard- Rural areas of Reaction to Deployment of STIPPER ing in support of the RSA incidents of Commando mem- the SAPS violence in bers to assist the rural areas, SAPS in rural safe- area patrols guarding.
Operation 28 Jan 03 - Safeguarding of All provinces Sporting Ensuring inter- BARRIER 23 Mar 03 World Cup crick- of the RSA event nal security at et games in RSA cricket matches
Table 11.3. Multinational Exercises
Exercise Duration Aim Area Nature Forces Description Results Exercise 31 Mar 03 - Develop region- Richards Command RSA Practice beach CPX plan- RAINBOW 12 Apr 03 al co-operation in Bay and Post RJTF East staff, landing, estab- ning is com- TREK the field of peace- Hell's Gate Exercise lishment of plete at time Company 44 keeping and exer- (CPX) and Evacuation of writing Parachute cise joint command Field train- Control report. On Regiment and control ing Centre, para- site planning methodology with Exercise Company 121 chute drop, and FTX still the French Forces (FTX) Battalion, evacuation of to take place in the Indian SAS OUT- civilians Ocean (FAZSOI) ENIQUA, Harbour patrol boats France 1 x frigate, 1 x landing ship, 1 x parachute company, Supporting elements
Exercise 6 - 12 Nov Exercise search La FTX Practice com- Successful OXIDE 02 and rescue tech- Reunion bined multina- niques in conjunc- Island tional air and tion with French naval search Forces in the and rescue Indian Ocean ops
142 Department of Defence Chapter 11
Exercise Duration Aim Area Nature Forces Description Results Exercise Ongoing Exercise planning Pretoria CPX only RSA Practice run- Only initial CHIFFON planning. of UN mandated Still to be deter- ning a com- planning has /AFRICAN Exercise to Chapter 6 type mined but bined HQ, taken place SHIELD take place operation and con- includes Joint conduct com- 03 in Nov 03 duct war simulation Senior Command bined joint thereof and Staff planning and Program learners war simulation of plans Britain Approx 400 all ranks
Exercise Ongoing Exercise planning Bloemfon- CPX and RSA Practice exe- Only initial FLINT- planning. of humanitarian / tein / Army FTX Still to be deter- cution of a planning has LOCK Exercise to disaster prepared- Combat mined. humanitarian taken place take place ness training Training disaster USA in Jul 03 Centre and operation Laaiplek (West Cape)
Exercise Ongoing Exercise planning Zambia CTX and RSA Practice Only initial BLUE planning. of humanitarian/ FTX 1 x C130, humanitarian planning has ANGEL Exercise to disaster prepared- relief opera- taken place Command and take place ness training tions and dis- control elements, in Jul/ tribution of Mobile air opera- Aug 03 food within tion teams Zambia
2002-2003 Annual Report 143 Chapter 11
144 Department of Defence Chapter 12
PART 4: FINANCIAL STATEMENTS
DEPARTMENT OF DEFENCE VOTE 21
MANAGEMENT REPORT for the year ended 31 MARCH 2003
Report by the Accounting Officer to Programme resulted in a the Executive Authority and Parlia- marked increase in the allo- ment of the Republic of South Africa. cation to the Special Defence Account. The estimated cost 1. General review of the of the Strategic Defence state of financial Procurement Programme affairs amounts to Rb47,933. Up to 31 March 2003 Rb12,647 1.1 Budget allocation (main allo- has been paid, leaving a bal- cation) Rm18 414,380. ance of Rb35,286 to be paid over the period ending 1.1.1 The Defence Budget Vote for 31 March 2012. These esti- the financial year 2002/2003 mates are subject to the daily was increased by rate of exchange fluctuations Rm2 361,430 from the of the four major currencies adjusted appropriation of the in which payments are made. previous year, apportioned amongst the nine main pro- 1.1.3 The planned progress with grammes. As in previous the development and delivery years the Special Defence milestones of the Strategic Account (41,4%) and Land- Defence Procurement Pro- ward Defence (18,9%) re- gramme resulted in a marked ceived the biggest alloca- increase in the allocation to tions. The smallest portion the Special Defence Account. was allocated to the Defence The continued and increased Intelligence Programme involvement of the SA Na- (0,8%). tional Defence Force in peace support operations 1.1.2 The planned progress with was the main reason for the the development and delivery escalation in the Command milestones of the Strategic and Control programme. Defence Procurement Transformation and restruc-
2002-2003 Annual Report 145 Chapter 12
turing within the logistic, Rm24,211 for the payment to Account - Rm160,775. telecommunication and infor- the Auditor-General for audit mation technology functions services rendered. 1.3 Thus the total adjusted necessitated an increase in Defence Budget Vote for the the Joint Support Pro- 1.2 Adjustment Estimate: financial year 2002/2003 gramme. Rm430,354. amounted to Rm18 844,734.
1.1.4 Allocations to personnel The Defence Vote was 1.4 Spending trend: (34,4%) and transfer pay- increased by Rm430,354 Spending for the Department ments (42,6%) continued to through the Adjustment in comparison with the previ- dominate the Vote. Salaries Estimate as a result of the ous two financial years was and wages alone amounted following: as portrayed in table 11.1. to 24% of the total Vote mak- ing provision to pay approxi- 1.2.1 The approval of roll-overs The Department has for the mately 75 000 full time mili- from the financial year fifth consecutive year tary and civilian employees. 2001/2002 - Rm7,477. achieved an immaterial Provision was made for under- expenditure. A roll- wages and allowances for 1.2.2 Unforeseeable and unavoid- over claim for Rm6,453 has the Reserve Forces amount- able expenditure resulting been submitted to the ing to Rm146,335. Other from the expansion of the National Treasury for the items which received sub- deployment in Burundi financial year 2002/2003. stantial allocations were (Rm60,275), the requested rations (Rm287,875) and fuel participation in securing the 2. Services rendered by (Rm218,651). World Summit on the Department. Sustainable Development 1.1.5 Other substantial allocations (Rm14,810) and the offset of 2.1 Tariff Policy. that require mention are direct costs of deploying Different tariffs exist in the Rm143,610 budgeted for additional members of the Department depending on medical consumables for a Military Police in the the service provided. Tariff patient population of approxi- Democratic Republic of the structures are approved by mately 320 000, Rm44,000 Congo as part of the United National Treasury. Tariffs budgeted for the peace sup- Nations peace keeping oper- are determined by the port operation in the ation (Rm6,919) - Rm82,004. Services and Divisions which Democratic Republic of the provide the service and are Congo and Rm270,000 for 1.2.3 Higher than expected salary approved by the Accounting the protection support increases and covering the Officer. A Departmental detachment in Burundi. effect of the increase in gen- Tariff Policy is in the final Rm209,441 was budgeted for eral inflation - Rm180,098 stages of approval to be Armscor, one of the two pub- implemented during the lic entities under control of 1.2.4 Re-allocation of the revenue financial year 2003/2004. the Minister of Defence and of the Special Defence
Table 11.1 Spending for the Department in comparison with the previous two financial years was as follows:
2000/2001 2001/2002 2002/2003 Rm Rm Rm Vote 13 909,843 16 052,950 18 844,734 Expenditure 13 900,166 16 042,743 18 833,702 Amount surrendered 9,677 10,207 11,032 Amount surrendered 0,07% 0,06% 0,06% as percentage of Vote
146 Department of Defence Chapter 12
Table11.2 The Department rendered the under-mentioned free services.
Nature of service Service rendered to Estimated value Rm Lending of tents and furniture - Organisations and individuals 0,030 (21 cases) Harbour services - (7 cases) International navy ships 0,183 Transport services (3 cases) International navy ships 0,001 Total 0,214
2.2 The Department rendered year 2002/2003. Donations be done in the financial state- the free services indicated in in assistance of peace sup- ments for the financial year table 11.2. port and other operations in 2003/2004. Africa were made to the 3. Capacity constraints Reconstruction and Develop- 6. Public entities/ ment Programme Fund. The Trading entities 3.1 The Department was able to cost for the operations were meet all its commitments financed from the Depart- 6.1 Public entities. within the allocated Depart- mental Vote. The Castle Control Board mental Vote, however budget and the Armament constraints did have a nega- 5. Foreign aid Corporation of South Africa tive effect on the condition of assistance are reported as public entities military facilities, adversely under the ownership control affecting the operational Foreign aid assistance in the of the Minister of Defence in readiness, morale and work- form of medical and other Annexure 2A to the financial ing conditions of the equipment and stores was statements as previously. Department. received from the Both entities are directly con- Government of the United trolled by a board of directors 3.2 The skills shortage in spe- States of America to the esti- reporting to the Minister of cialised areas and muster- mated value of Rm39,825 Defence. ings remain a challenge for and the Government of the the Department. United Kingdom to the esti- 6.2 Trading entities. mated value of Rm0,610 dur- The Trading Account for 4. Utilisation of donor ing the financial year. Medical Stock which was a funds Because the transfer of own- controlled entity of the ership is still in progress, the Department has been closed The Department did not donations are not disclosed and the closing down audit directly receive any donor in the financial statements as was performed by the Audi- funds during the financial yet. Accurate disclosure will tor-General.
2002-2003 Annual Report 147 Chapter 12
7. Other organisations to whom transfer payments have been made
7.1 Transfer payments were made to the following organisations:
Table 11.3 Transfer payments were made to the following organisations:
Transferee Reason for Accountability Voted Expenditure payments arrangements 2002/2003 2002/2003 Rm Rm Armaments To subsidise Armscor in Armscor is a Schedule 2 209,441 209,441 Corporation of their mission to meet the Public Entity managed by a South Africa Ltd acquisition needs of the Board of Directors appoint- (Armscor) Department of Defence ed by the Minister of and other government Defence. The Accounting departments for arma- Officer of the Department ment and related prod- serves on this Board. ucts and resources. Armscor annually submits a business plan and estimate of expenditure, motivated by the General Manager Finance and Administration, Armscor at the Departmental Programme and Budget Evaluation Committee before funds are allocated to the Departmental Vote. Audited financial statements for the financial year 2001/2002 were submitted to request payment. St Johns To subsidise ambulance Audited financial statements 0,095 0,036 Ambulance services in South Africa for the financial year Brigade and especially the use of 2001/2002 were submitted services by the Military to request payment. Health Service. SA First-Aid To subsidise first aid Audited financial statements 0,095 - League services and training in could not be submitted for South Africa and espe- the financial year cially the use of such 2001/2002, consequently services and training payment was withheld. opportuni-ties by the Military Health Service. Medical Fund To subsidise the Medical Audited financial statements 0,700 0,274 Fund B for Force mem- for the financial year bers who retired before 2001/2002 were submitted 1964. to request payments.
148 Department of Defence Chapter 12
Transferee Reason for Accountability Voted Expenditure payments arrangements 2002/2003 2002/2003 Rm Rm Reserve Force To subsidise the Reserve The Accounting Officer of 1,938 1,938 Council Force Council in their aim the Department is repre- (Previously the to secure community and sented on the National Part Time Force private sector support for Council. The Council annu- Council) the Reserve Forces and ally submits a business plan to maintain a sound rela- and estimate of expenditure tionship and communica- before funds are allocated tion between the Reserve on the Departmental Vote. Forces, the Minister of Audited financial statements Defence and the SANDF. for the financial year 2001/2002 were submitted to request payment. Defence, To subsidise the adminis Audited financial statements 5,400 5,317 Intelligence, trative expenditure of the for the financial year Diplomacy and DIDTETA which acts as 2001/2002 were submitted Trade Education the Sector Educational to request payment. and Training and Training Authority Authority (SETA) for Defence in (DIDTETA) terms of the Skills Development Act, 1998. Province of the Contribution for the Audited financial statements 3,400 3,400 Northern Cape: relocation of the San for the financial year Department of Community from 2001/2002 were submitted Housing and Schmidtsdrift to to request payment. Local Platfontein. Government
Special Defence The acquisition of Under control of the 7 786,232 7 786,232 Account armament. Accounting Officer of the Department of Defence. Financial statements attached to this report. Total 8 007,301 8 006,638
8. Corporate governance identified and prioritised on financial year 2003/2004. arrangements an expected loss indicator matrix that serves to direct 8.2 Fraud prevention. 8.1 Risk management. the focus of audit activities. It An Anti-fraud Directorate was A risk management approach is envisaged that the established at the beginning has been established at the Departmental Risk Manage- of 2003. This Directorate will Defence Inspectorate. ment Programme will over- contribute to the Depart-men- Eleven major risk areas were take this risk register for the tal Anti-fraud Strategy and
2002-2003 Annual Report 149 Chapter 12
though already functional, is directs and controls the 9. Activities to be in the process to refine its Defence function through the discontinued mandate, legislative powers Council of Defence. The Activities to be discontinued and work procedures and Secretary for Defence and are described in the Annual finalising its staffing. Officers the Chief of the National Report. Commanding are required to Defence Force implements be fully involved in the execu- ministerial directives through 10. New matters tion of the anti-fraud strategy the Defence Staff Council. and plan. Various subordinate boards 10.1 The MONUC Phase II and committee serve these deployment of 150 members 8.3 Internal Audit. Councils. A formal strategic in the Democratic Republic of The recent re-alignment of direction and control process the Congo was extended till the Defence Inspectorate to is followed to enhance mana- April 2004. better comply with legislation gerial effectiveness and elim- and other prescripts has inate conflicts of interest. 10.2 The deployment of twelve resulted in a more functional members to the ULMEE and integration of its audit activi- 8.6 Code of conduct. OLMEE missions in Ethio- ties. The audit activities now All personnel in the employ of pia/Eritrea was extended to focus on both compliance the Department have signed 31 March 2004. and performance audits and into effect the appropriate are directed by the above military and civilian code of 10.3 The deployment of 800 mem- mentioned risk register. The conduct. It has since bers to Burundi was extend- Defence Inspectorate has become part of the military ed to June 2003. The man- recently been staffed to 91% tradition to read out aloud the date of the mission will how- of the requirement that direct- Codes of Conduct during mil- ever change to become the ly contributes to execution of itary parades and other simi- African Mission with the par- the audit function. The lar gatherings. ticipation of Mozambique, vacant posts are expected to Ethiopia and South Africa, be fully staffed in the immedi- 8.7 Occupational health and with the latter as the lead ate future. safety. nation. The Surgeon General is the 8.4 Audit Committee. delegated authority for occu- 10.4 The deployment of 18 mem- The Audit Committee is func- pational health and safety bers to the Comores over the tional and has to date had matters and undergoes regu- period 8 April 2002 to 10 four scheduled meetings and lar audit in this regard. June 2002 as observers to one special meeting. A pro- Officers Commanding pro- the general elections. gramme that covers all the vide direction and manage areas of responsibilities and occupational health and safe- 11. Proposed activities reporting is in place. This will ty issues through compulsory improve the effectiveness of forums for their units. Proposed activities are the Audit Committee. The described in the Annual involvement of the Audit 8.8 Environmental matters. Report. Committee was also sought The Chief of Joint Support is in the preparation and subse- the delegated authority for 12. Progress with finan- quent approval of the environmental matters and cial management im- Defence Inspectorate also undergoes audit in this provement Strategic Plan. The Audit regard. Officers Committee interacts with the Commanding undergo train- The following actions have Auditor-General. The Audit ing in environmental man- been taken to improve finan- Committee has commented agement using a manual cial management: on the financial statements relating to regulatory require- for this financial year. ments. 12.1 An audit of internal control
8.5 Management bodies. The Minister of Defence
150 Department of Defence Chapter 12
systems regarding compli- annual reporting processes. tion dispensation for the pub- ance with the financial man- Performance against plan is lic sector has resulted in agement regulatory frame- reported to the Defence Staff unjustified leave credits thus work and the implementation Council and lower order com- accumulated leave days not of corrective projects where mand and management bod- taken over the period. The necessary. ies. The Department pres- resultant reported contingent ently lacks the ability to pro- liability for leave is larger than 12.2 Refinement of the budget duce in-time performance appropriate. It is not feasible control system to assure a data due to the absence of a to make corrections because spent budget with minimal strategic control system. A of the duration of this dispen- improprieties. balanced scorecard sation. The related annual approach is presently being expenditure i.e. leave gratu- 12.3 Development and implemen- considered as an option. ities and discounted leave is tation of systems for risk, consequently greater than loss, audit and financial mis- 13.4 Performance assessments appropriate. The leave accu- conduct management and for all members are conduct- mulation dispensation was reporting. ed in terms of the Senior terminated on 30 June 2000 Management System and for civilians and on 31 March 12.4 Implementation of a compre- new performance manage- 2002 for the military. The hensive education training ment system. The assess- periodic discounting of accu- and development programme ment of military as well as mulated leave was intro- to professionalise financial civilian members is included duced to, amongst other rea- management staff. in one system. The sons, reduce the long term Department will be able to liability. Some additional 13. Performance complete the process for measures have already been information inclusion in the new pay pro- implemented whilst others gression system commenc- are being considered to tight- 13.1 The Departmental Strategic ing on 1 July 2003. en control measures. Business Plan reflects minis- terial direction by detailing 13.5 Performance improvement 14.1.2 Weaknesses in the physical the different programmes, initiatives are encouraged asset management system in strategic objectives, outputs through the Performance and general and the stock man- and performance indicators. Service Delivery agement system in particular All other business plans are Improvement Programme have resulted in the inaccu- aligned with the (Batho Pele) which was insti- rate and/or lack of disclosure Departmental Strategic tuted by means of a depart- in notes to the financial state- Business Plan. The mental instruction. Total ments and related annex- Departmental Programme Quality Management princi- ures. Various factors such as and Budget Evaluation ples are applied within nor- new reporting requirements Committee serves as the mal management practices of National Treasury, multiple coordinating body for this and suggestions are reward- logistic information systems, process. ed through application of the insufficient funds to install SA Excellence Model. logistic information systems 13.2 Performance agreements, International Standards at all units, inadequately service agreements, delega- Organisation standards for skilled personnel, ineffective tions and/or instructions are inspections and audits were responsibility/accountability aligned with the business adopted by the Chief arrangements and weak plans to ensure system inte- Executive Audit of the enforcement of prescribed gration and integrity of plans Department. practices have all resulted in and budget. The responsibil- a weakened physical asset ity for this activity is shared 14. Other management system. between the Policy and Specific intervention meas- Planning and the Corporate 14.1 Control system ures such as restructuring Staff divisions. inadequacies. reporting relationships and 14.1.1 Lack of control in recording responsibilities to bolster 13.3 Performance is measured leave taken from the incep- accountability, ensuring the through the quarterly and tion of the leave accumula- legal enforceability of pre-
2002-2003 Annual Report 151 Chapter 12
scribed practices and the 14.2 Financial management for recognition and disclosure training of both logistic func- compliance. purposes in the financial tionaries and line managers Two financial management statements as was used for are being prepared and compliance projects are the approval of the implemented. Examples of envisaged in the medium Departmental Vote because information not being able to term. the Department's Financial report on are: Management System does 14.2.1 A project to determine the not provide for a change of 14.1.2.1 Information regarding leas- impact of Generally Recog- the classification during the es cannot be provided nised Accounting Practices year. The Department will accurately and is conse- (GRAP) appropriate to de- engage the National quently omitted from the fence institutions, then test- Treasury in discussions statements. ing the potential of current regarding the alignment of information systems to com- the economic classification 14.1.2.2 Information regarding ply therewith. The objective used in the Estimate of physical- and intangible is to determine which direc- Expenditure and Financial asset movement cannot be tion to take to obtain compli- Statements for the provided, consequently the ant information systems. The Department of Defence and if required schedules are not project will be completed by necessary, introduce system submitted. the end of the financial year enhancements to facilitate 2003/2004. the requirement. 14.1.2.3 The amount for accruals for creditors in the financial 14.2.2 A follow-up project to imple- 14.4 Inter-departmental debt. statements is understated. ment the adopted direction to The verification of inter- The understatement can- obtain GRAP compliant infor- departmental debt between not be quantified. mation systems. This will be National Departments a medium to long term proj- remains a problem. This 14.1.2.4 Information regarding gifts, ect. Department will endevour to donations and sponsor- create an inter-departmental ships of a social nature is 14.3 Economic classification of forum, under the auspice of not provided because such expenditure. the National Treasury, where cases are not necessarily In the Estimate of National debt between departments recorded. Steps have Expenditure 2002 the majori- could be reconciled on a been taken to keep record ty of the Defence Vote was monthly basis. in the future for disclosure classified and appropriated purposes. as current expenditure, Approval according to international 14.1.3 The Secretary for Defence Government Financial The annual financial statement have has lacked organisational Statistics (GFS) standards been approved by the Accounting capacity in support of his developed by the Officer. responsibility as Accounting International Monitory Fund. Officer since 1998 when top The National Treasury speci- level departmental restructur- men Annual Financial ing took place. The Minister Statements for Provincial and for Defence is considering National Departments for the corrective measures to re- year ended 31 March 2003 instate the organisational however requires a different capacity and reporting rela- classification between capital tionships in support of the and current expenditure. In (J.B. MASILELA) Accounting Officer. Implem- preparing the financial state- SECRETARY FOR DEFENCE: entation will be finalised dur- ments for the financial year DIRECTOR-GENERAL ing 2003. 2002/2003 the Department used the same classification Date: 31 MAY 2003
152 Department of Defence Chapter 13
PART V: REPORT OF THE AUDITOR-GENERAL TO PARLIAMENT ON THE FINANCIAL STATEMENTS OF VOTE 21 - DEFENCE FOR THE YEAR ENDED 31 MARCH 2003
1. AUDIT ASSIGNMENT of material misstatement.
An audit includes: The financial statements as examining, on a test set out on pages 159 to 216, basis, evidence support- for the year ended 31 March ing the amounts and dis- 2003, have been audited in closures in the financial terms of section 188 of the statements, Constitution of the Republic assessing the accounting of South Africa, 1996 (Act principles used and sig- No. 108 of 1996), read with nificant estimates made sections 3 and 5 of the by management, and Auditor-General Act, 1995 evaluating the overall (Act No. 12 of 1995). These financial statement pres- financial statements, the entation. maintenance of effective con- trol measures and compli- Furthermore, an audit in- ance with relevant laws and cludes an examination, on a regulations are the responsi- test basis, of evidence sup- bility of the Accounting porting compliance in all Officer. My responsibility is material respects with the rel- to express an opinion on evant laws and regulations these financial statements, that came to my attention and based on the audit. are applicable to financial matters. 2. NATURE AND SCOPE I believe that the audit pro- The audit was conducted in vides a reasonable basis for accordance with Statements my opinion. of South African Auditing Standards. Those standards 3. QUALIFICATION require that I plan and per- form the audit to obtain rea- 3.1 Inventory - R6 615 063 000 sonable assurance that the financial statements are free In note 5.1 to the financial
2002-2003 Auditor-General Report 153 Chapter 13
statements inventories on during the changing of effect on the financial state- hand at year-end was dis- responsibilities. ments of the matters referred closed as R6,6 billion. Owing to in paragraph 3.1, the finan- to the nature of the (b) There was a lack of enforce- cial statements fairly present, Department of Defence's ment of existing policies and in all material respects, the (DOD) records I was unable procedures mainly due to the financial position of the to verify the accuracy and fact that all personnel department at 31 March 2003 completeness of this amount. responsible for the manage- and the results of its opera- Furthermore, the DOD could ment of stock and equipment tions and cash flows for the not submit evidence to sub- were not accountable to year then ended in accor- stantiate this amount, except management responsible for dance with prescribed that the figure was extracted asset management. accounting practice and in a by the State Information (c) The logistical accounting sys- manner required by the Technology Agency (SITA) tem consisted of three com- Public Finance Management from the LOGEIS manage- puterised systems and a Act of 1999. ment information system. manual system that are not integrated, with the result that 5. EMPHASIS OF The unreliability and unavail- stock balances were not reli- MATTER ability of consolidated logisti- able or readily available. Only cal information resulted, 29 per cent of units in the Without further qualifying the amongst others, from the fol- DOD were computerised. audit opinion expressed lowing: above, attention is drawn to (d) Of all the self-accounting the following matters: (a) The audit conducted on the units only 66 per cent per- management of inventories, formed stocktakings and sub- 5.1 Foreign aid assistance machinery and equipment sequently submitted stock- revealed the same weak- taking certificates. In some of (a) Foreign aid received in cash: nesses in internal controls as these cases the certificates With reference to paragraph reported on in prior years and were reported as not credi- 4.1.1(a) on page 140 of the existed in all main processes ble. The total value of stock previous report [RP of asset management. The counted for the financial year 162/2002], the amount of following findings need to be could not be submitted to R3,569 million for which the mentioned: audit. In the case of units that DOD could not supply sub- had computerised system stantiating documentation
Registers for receipt and values as per stocktaking was still in the process of issue vouchers were not certificates, values differed being audited and will be properly maintained. materially from those values reported on, if necessary, in
The recording of stores as per the LOGEIS manage- my next report. and equipment was not ment information system done completely and accu- (inventories, machinery and (b) Local and foreign aid rately, resulting in discrep- equipment), whilst no values received in kind: With refer- ancies between physical could be placed on the inven- ence to paragraph 4.1.1(b) stock on hand and general tories, machinery and equip- on page 140 of the previous ledger. ment of units that maintained report [RP 162/2002], there
The access to, control manual systems without was still no system in place over, storage of, and cus- stocktaking certificates hav- during the financial year for tody and care of assets ing been submitted. the recording and collation of were not sufficient. This local and foreign aid assis- resulted in unauthorised The findings of the audit is tance received in kind. access to stores, decaying also confirmed in paragraph Furthermore, no supporting and deterioration of stock, 14.1.2 of the DOD manage- documentation could be pro- as well as inadequate fire- ment report. vided with regard to an prevention and fire-fighting amount of R3 680 million of a equipment. 4. QUALIFIED AUDIT total of R4 653 million, which OPINION In certain instances no was disclosed as foreign aid handing and taking over assistance in note 3 to the certificates were completed In my opinion, except for the financial statements.
154 Department of Defence Chapter 13
5.2 Purchases and payables previous report [RP There was also a limita- 162/2002], the DOD was still tion in the controls, as (a) Accruals: Paragraph 14 of unable to provide the hours paid were not rec- the Statement of Accounting required information. onciled to the hours Policies states that accruals authorised. represented goods/services 5.3 Contingent liabilities that have been delivered, but (b) Leave credits and leave for which no invoice has been Leave entitlement: The short- administration: The internal received from the supplier at term employee benefit, leave controls in respect of the year-end, or where an entitlement of R1,366 billion leave administration system invoice has been receiv-ed it (2002: R1,025 billion) as dis- are still considered to be remained unpaid at year-end. closed in note 26 to the finan- inadequate. The following Accruals, disclosed at an cial statements, was calculat- findings similar to those re- amount of R6,022 million in ed based on the accumulated ported on paragraph 4.1.4 (b) note 28 to the financial state- leave days recorded on the of my previous report need to ments, represented only leave administration system. be mentioned: goods/services that have As a result of the findings been delivered and an mentioned in paragraph Leave application forms invoice has been received, 5.4(b) I could not reach a were not captured on the but the amount re-mained conclusion on the correct- computerised leave sys- unpaid at year-end. The ness of the leave entitlement tem on time, they were amount did not include and therefore the accuracy of not filed regularly in leave goods/services received dur- the amount disclosed. files of members and sec- ing the year for which no However, the Accounting tion heads did not invoice has been received Officer, in paragraph 14.1.1 approve it. and the amount remained of his management report, unpaid at the year-end. The refers to additional measures Parade registers were not accounting systems in place being considered to tighten completed daily, approv- at the DOD did not allow for control measures in this ed as prescribed and/or the generation of this infor- regard. reconciled with the leave mation. This has resulted in system. an understatement of the 5.4 Personnel expenditure amount disclosed as accru- Leave registers were not als. I am unable to quantify (a) Supplementary remunera- used as prescribed. the amount of the understate- tion: An audit conducted on ment. the payment of supplemen- The leave days on the tary remuneration revealed Persol system did not (b) Leases: Attention is drawn to that internal control meas- always agree with the paragraph 13 of the ures are not being adhered leave registers. Statement of Accounting to. The audit findings were Policies and related matters brought to the attention of the No internal control meas- and paragraph 5 of the DOD and were resolved in ures were included in the detailed guidance on notes some respects. However, computerised leave sys- for disclosure as included in the following need to be men- tem to ensure that only the Guide for the preparation tioned: leave, to which a person of annual reports of depart- is entitled, can be taken. ments, which require appro- Overtime priate disclosure of certain Hours worked were incor- Taking the above into information regarding leases rectly transferred from account, the inefficiencies entered into by the DOD. time sheets to the surrounding the administra- Notwithstanding the commit- Personnel Expenditure tion of leave impacted on the ment given by the DOD to Remuneration Soldiers following amounts in the properly disclose the afore- Pay (PERSOL) system. financial statements as the mentioned matter and as was There was an error rate of number of leave days was reported on in paragraph 20 per cent in the repre- used in the calculation of the 4.1.2(b) on page 140 of the sentative sample audited. amounts:
2002-2003 Auditor-General Report 155 Chapter 13
Table 13.1. Number of leave days taken
Discounting of leave R 3,2m Leave gratuities (included in gratuities of R52,5m) R45,4m Leave entitlement (note 30 to financial statements) R 4,1m Rand value included in the line item personnel costs as per income statement R52,7m
In this regard the Accounting Information obtained from enue (part of equity) in the Officer in his management various divisions within the balance sheet of the depart- report, paragraph 14.1.1, DOD was incomplete, inac- ment. confirms that the contingent curate and could not be com- liability for leave is larger than pared to prior year figures. 5.6 Asset management appropriated. 5.5 Revenue and receivables (a) Physical and intangible asset (c) Employment equity: A com- movements schedules parison of actual strength per (a) Departmental income: As (Annexure 4 & 5): The above level to equity targets for the mentioned in note 2 to the annexures as prescribed by entire department indicated income statement, depart- the National Treasury in the that the lower structure of the mental income generated for Guide for the preparation of Department of Defence was the financial year under annual reports of depart- predominantly black African, review amounted to ments, could not be supplied while the senior management R352 277 000 (including by the DOD and were there- structure and professional R160 775 000 Special De- fore not subjected to auditing staff were predominantly fence Account revenue), during the year under review. white. Senior management compared with R126 601 000 In this regard attention is whites represented 61 per of the previous year. The drawn to paragraph 14.1.2 of cent against an average of 24 audit again revealed the inef- the DOD management per cent for the other national ficient application of the inter- report. departments. nal controls to ensure com- pleteness and accuracy of (b) Biological assets: Attention is (d) Consultants: The Department income. drawn to note 35 to the finan- of Defence has not yet imple- cial statements where horses mented a final policy on the (b) Debtors and recoverable rev- and dogs are disclosed at management and utilisation enue: The DOD could not unit prices of R100 and R25 of consultants. supply substantiating docu- respectively. This is not in mentation with regard to line with the Guide for the (e) Employees on suspension: debtors amounting to preparation of annual reports At 31 March 2003, 21 R10 997 million included in of departments, which employees had been sus- the line item: receivables requires horses and dogs to pended with full pay for more (current assets) in the bal- be disclosed at fair value. than the three-month bench- ance sheet of the depart- mark period resulting in a ment, which originated from (c) Excessive stock level: In the total cost of R4,2 million to the previous debtor system. DOD's appearance before the Department of Defence. This system was in the the Standing Committee on Ten of the 21 members have process of being replaced by Public Accounts (SCOPA) on been on suspension with full a new debtors system. This 5 March 2003, SCOPA pay for more than 12 months also resulted in my office not expressed certain concerns at 31 March 2003. being able to verify recover- and asked certain questions able revenue suspense regarding the excessive (f) System of discipline: A com- accounts (a portion of the stock levels of the depart- plete and accurate list of all credit entry) amounting to ment. The DOD in turn made disciplinary actions within the R7 546 million, included in certain commitments regard- DOD could not be obtained. the line item: recoverable rev- ing feedback and the imple-
156 Department of Defence Chapter 13
mentation of corrective Many houses require sig- try before the scrutiny measures on the aforemen- nificant repairs and main- committee made the rec- tioned concerns/questions. tenance. ommendations to the NCACC and before the At the time of compiling this The Department of De- NCACC approved the report the feedback to fence or Public Works issuing of the permits. SCOPA, and implementation maintained none of the of correct measures were not houses at one of the units Neither the Minister of at a stage which warranted visited. Defence nor the NCACC an audit yet. However, my approved the policy or office will monitor this Lease agreements/con- procedural documents process and report thereon in tracts were not always in that are currently used by the 2003/2004 financial year. place. the DCAC and the scruti- ny committee. 5.7 Land and buildings 5.8 National Conventional Arms Control Committee No constitutions are in The audit conducted on land (NCACC) place to regulate the func- and buildings revealed the tioning of the NCACC or following: (a) Statutory Mandate the scrutiny committee.
(a) The information as per DoD The NCACC was instituted to The attendance of the records did not correlate with have control over arms devel- NCACC and scrutiny information received from the opment and production and committee meetings was Department of Public Works. is controlled by the found to be below 40 per Armaments Development cent for portfolio holders. (b) Furthermore, the following and Production Act, 1968 are examples of audit find- (Act No. 57 of 1968) and the As previously reported ings revealed at some of the Cabinet Memorandum 19 of the proposed inspec- audit points visited during the 1995 dated 18 August 1995. torate function is not in year under review: place yet. The current structures in Houses considered unin- place were evaluated and As uncertainty existed with habitable were occupied uncertainty exists whether regard to the delegations to without the knowledge of the Minister of Defence, in the DCAC and the scrutiny the housing officer. terms of the act, or the committee the DOD has NCACC, in terms of the cabi- undertaken to take corrective Properties, supposedly net memo, has the power to steps and to obtain a legal made available for the delegate responsibilities and opinion regarding these dele- use of DOD personnel, functions to the Directorate gations. The legal opinion were occupied by civil- Conventional Arms Control may have an influence on the ians at a fixed rate of (DCAC) situated within the findings as indicated above. R250 per month inclusive DOD structure and the scruti- of water and electricity. ny committee - recommenda- Furthermore, it came to my However, DOD personnel tion unit which is currently attention that, through were required to pay performing delegated func- Armscor, a German company seven per cent of their tions on behalf of the was authorised by the salaries, which exceeded NCACC. NCACC to destruct or demili- the fixed rental of the civil- tarise military small arms ians. (b) Audit findings ammunition. However, the German company sold por- Civilian occupants were With the execution of the tions of the consignment not issued with receipts compliance audit I also noted directly to third parties with- when rentals were paid. with concern that: out taking the ammunition through a process of destruc- No proper list/register of The DCAC issued per- tion or demilitarisation. At the occupants occupying mits, excluding contract- time of compiling this report houses existed. ing permits, to the indus- this matter was still in the
2002-2003 Auditor-General Report 157 Chapter 13
process of being investigated fact that I have been report- as Accounting Officer since and, if necessary, will be ing on the matter for four 1998. The Minister of reported on in my next report. consecutive years. Defence is considering re- instating the organisational The audit did not include the 5.10 Closing of the Trading capacity and reporting rela- following: Account for Medical Stock tionship in support of the (TAMS) Accounting Officer. The validation of end- user certificates, as it was With reference to paragraph I will consider the effect on not physically possible to 4.1.1 on page 197 of the pre- my audit of the above-men- verify the intended end vious report [RP 162/2002] it tioned matters, during the users. can be reported that the planning process of the DOD winding down process of the audit, for the 2003/2004 Control evaluation at TAMS had been finalised financial year. developing and manufac- during the year under review. turing companies. 5.12 Financial management 5.11 General matters of concern project Compliance visits reports, conclusions and recom- I draw attention to the follow- I would also like to draw mendations. ing matters as mentioned by attention to paragraph 14.2.1 the Accounting Officer in his of the aforementioned man- 5.9 Service Corps management report for the agement report that indicates year ended 31 March 2003: that the DOD has taken pro- With reference to paragraph active measures in determin- 4.2.8 on page 144, of the pre- (a) Capacity constraint: In para- ing to which extent current vious report [RP 162/2002], graph 3.1 of his management information systems within the Service Corps is still not report the Accounting Officer the department would be able to address the short- mentions that budget con- able to accommodate comings relating to its future straints had a negative effect Generally Recognised and direction that were under on the conditions of military Accounting Practise (GRAP). scrutiny by means of work- facilities, adversary effecting shops held during the period the operational readiness, The follow-up project would January 2002 to July 2002. morale and working condi- then be to obtain GRAP com- tions of the department. pliant information systems. Options for placement of the The department must be Service Corps in the broader (b) Performance information: In complimented on the pro- Public Sector have not yet paragraph 13.3 of his man- active initiative taken in this been concluded. The DOD agement report the regard. indicated that an approved Accounting Officer mentions proposal in terms of the end that the department presently 6. APPRECIATION product of the Service Corps lacks the ability to produce in would be made available in time performance data due to The assistance rendered by May 2003. However, at the the absence of a strategic the staff of Defence during time of compiling this report control system. A balanced the audit is sincerely appreci- this proposal was still in scorecard approach is ated. process. presently being considered as an option. Options for a migrated and state of the Service Corps (c) Organisational capability: In were still to be concluded on paragraph 14.1.3 the S A FAKIE by the Minister of Defence. Secretary for Defence, indi- Auditor-General This matter is of a concern to cates that he has lacked me, specifically because of organisational capacity in Pretoria the amounts involved and the support of his responsibility 29 July 2003
158 Department of Defence Chapter 14
DEPARTMENT OF DEFENCE VOTE 21
STATEMENT OF ACCOUNTING POLICIES AND RELATED MATTERS for the year ended 31 MARCH 2003
The financial statements have been when cash is received or prepared in accordance with the fol- paid. Under the accrual lowing policies, which have been basis of accounting transac- applied consistently in all material tions and other events are respects, unless otherwise indicat- recognised when incurred ed. However, where appropriate and not when cash is and meaningful, additional informa- received or paid. tion has been disclosed to enhance the usefulness of the financial state- 2. Revenue ments and to comply with the statu- tory requirements of the Public Voted funds are the amounts Finance Management Act, Act 1 of appropriated to a department 1999 (as amended by Act 29 of in accordance with the final 1999), the Treasury Regulations for budget known as the Adjust- Departments and Constitutional ed Estimates of National Institutions issued in terms of the Act Expenditure. Unexpended and the Division of Revenue Act, Act voted funds are surrendered 5 of 2002. to the National Revenue Fund. 1. Basis of preparation Interest and dividends The financial statements received are recognised have been prepared on a upon receipt of the funds, modified cash basis of and no accrual is made for accounting, except where interest or dividends receiv- stated otherwise. The report- able from the last receipt date ing entity is in transition from to the end of the reporting reporting on a cash basis of period. They are recognised accounting to reporting on an as revenue in the financial accrual basis of accounting. statements of the department Under the cash basis of and then transferred to the accounting transactions and National Revenue Fund. other events are recognised
2002-2003 Annual Report 159 Chapter 14
DEPARTMENT OF DEFENCE VOTE 21
STATEMENT OF ACCOUNTING POLICIES AND RELATED MATTERS for the year ended 31 MARCH 2003
3. Donor Aid the State Tender Board Act, reference to stock exchange or any regulations made in quoted selling prices at the Donor Aid is recognised in terms of this act, or close of business on the bal- the income statement in ance sheet date. accordance with the cash Irregular expenditure is treat- basis of accounting. ed as expenditure in the Non-current investments income statement. excluding marketable securi- 4. Current expenditure ties are shown at cost and Fruitless and wasteful expen- adjustments are made only Current expenditure is recog- diture means expenditure where in the opinion of the nised in the income state- that was made in vain and directors, the investment is ment when the payment is would have been avoided impaired. Where an invest- made. had reasonable care been ment has been impaired, it is exercised. Fruitless and recognised as an expense in 5. Unauthorised, irregu- wasteful expenditure must be the period in which the lar and fruitless and recovered from a responsible impairment is identified. wasteful expenditure official (a debtor account should be raised), or the vote Increases in the carrying Unauthorised expenditure if responsibility cannot be amount of marketable securi- means: determined. ties classified as non-current assets are credited to revalu- the overspending of a vote or 6. Debts written off ation and other reserves in a main division within a vote, shareholders' equity. or Debts are written off when Decreases that offset previ- identified as irrecoverable. ous increases of the same expenditure that was not No provision is made for marketable security are made in accordance with the irrecoverable amounts. charged to the income state- purpose of a vote or, in the ment. Increases/decreases case of a main division, not in 7. Capital expenditure in the carrying amount of accordance with the purpose marketable securities classi- of the main division. Expenditure for physical fied as current assets are Unauthorised expenditure is items on hand on 31 March credited/charged to the treated as a current asset in 2003 to be consumed in the income statement. the balance sheet until such following financial year, is expenditure is recovered written off in full when they On disposal of an invest- from a third party or funded are received and are ment, the difference between from future voted funds. accounted for as expenditure the net disposal proceeds in the income statement. and the carrying amount is Irregular expenditure means Physical assets acquired are charged or credited to the expenditure, other than unau- expensed i.e. written off in income statement. On dis- thorised expenditure, incur- the income statement when posal of a marketable securi- red in contravention of or not the payment is made. ty classified as a non-current in accordance with a require- asset, amounts in revaluation ment of any applicable legis- 8. Investments and other reserves relating to lation, including: that marketable security, are Marketable securities are transferred to retained earn- the Public Finance Manage- carried at market value. ings. ment Act, Market value is calculated by
160 Department of Defence Chapter 14
DEPARTMENT OF DEFENCE VOTE 21
STATEMENT OF ACCOUNTING POLICIES AND RELATED MATTERS for the year ended 31 MARCH 2003
9. Investments in con- in the balance sheet as a cur- 14. Accruals trolled entities rent asset or as income in the income statement, as the This amount represents Investments in controlled financial statements are pre- goods/services that have entities are those entities pared on a cash basis of been delivered, but no where the reporting entity accounting, but are disclosed invoice has been received has the ability to exercise any separately in the notes to from the supplier at year end, of the following powers to enhance the usefulness of OR an invoice has been govern the financial and the financial statements. received but remains unpaid operating policies of the enti- at year end. These amounts ty in order to obtain benefits 11. Payables are not recognised in the bal- from its activities: ance sheet as a liability or as Payables are not normally expenditure in the income To appoint or remove all, or recognised under the cash statement as the financial the majority of, the members basis of accounting. statements are prepared on a of that entity's board of direc- However, payables included cash basis of accounting, but tors or equivalent governing in the balance sheet arise are however disclosed. body; from cash receipts that are due to the National Revenue 15. Employee benefits To appoint or remove the Fund or another party. entity's chief executive offi- Short-term employee cer; 12. Provisions benefits
To cast all, or the majority of, A provision is a liability of The cost of short-term the votes at meetings of that uncertain timing or amount. employee benefits is board of directors or equiva- Provisions are not normally expensed in the income lent governing body; or recognised under the cash statement in the reporting basis of accounting, but are period that the payment is To control all, or the majority disclosed separately in the made. Short-term employee of, the voting rights at a gen- notes to enhance the useful- benefits, that give rise to a eral meeting of that entity. ness of the financial state- present legal or constructive ments. obligation, are deferred until Investments in controlled they can be reliably meas- entities are shown at cost. 13. Lease commitments ured and then expensed. Details of these benefits and 10. Receivables Lease commitments for the the potential liabilities are dis- period remaining from the closed as a note to the finan- Receivables are not normally accounting date until the end cial statements and are not recognised under the cash of the lease contract are dis- recognised in the income basis of accounting. closed as a note to the finan- statement. However, receivables includ- cial statements. These com- ed in the balance sheet arise mitments are not recognised Termination benefits from cash payments that are in the balance sheet as a lia- recoverable from another bility or as expenditure in the Termination benefits are party. income statement as the recognised and expensed financial statements are pre- only when the payment is Receivables for services pared on the cash basis of made. delivered are not recognised accounting.
2002-2003 Annual Report 161 Chapter 14
DEPARTMENT OF DEFENCE VOTE 21
STATEMENT OF ACCOUNTING POLICIES AND RELATED MATTERS for the year ended 31 MARCH 2003
Retirement benefits butions to the fund are ex- recognised in the income pensed when money is paid statement as an expense in The department provides to the fund. No provision is previous years, which have retirement benefits for its made for medical benefits in now become recoverable employees through a defined the financial statements of from a debtor due to non-per- benefit plan for government the department. formance in accordance with employees. These benefits an agreement. are funded by both employer Retirement medical benefits and employee contributions. for retired civil servants are Repayments are transferred Employer contributions to the expensed when the payment to the National Revenue fund are expensed when is made to the fund. Fund as and when the repay- money is paid to the fund. No ment is received. provision is made for retire- 16. Capitalisation reserve ment benefits in the financial 18. Comparative figures statements of the depart- The capitalisation reserve ment. Any potential liabilities represents an amount equal Where necessary, compara- are disclosed in the financial to the value of the invest- tive figures have been adjust- statements of the National ments and/or loans capi- ed to conform to changes in Revenue Fund and not in the talised, or deposits paid on presentation in the current financial statements of the behalf of employees of a for- year. The comparative fig- employer department. eign mission, for the first time ures shown in these financial in the previous financial year. statements are limited to the Medical benefits On disposal, repayment or figures shown in the previous recovery, such amounts are year's audited financial state- The department provides transferable to the National ments and such other com- medical benefits for certain of Revenue Fund. parative figures that the its employees through department may reasonably defined benefit plans. These 17. Recoverable revenue have available for reporting. benefits are funded by em- ployer and/or employee con- Recoverable revenue repre- tributions. Employer contri- sents payments made and
162 Department of Defence Chapter 14
DEPARTMENT OF DEFENCE VOTE 21
APPROPRIATION STATEMENT for the year ended 31 MARCH 2003
Programme 2002/03 2001/02 Adjusted Virement Revised Actual Savings/ Expenditure Revised Actual Programme Appropriation Allocation Expenditure Underspend as % of Allocation Expenditure (Excess) revised R’000 R’000 R’000 R’000 R’000 allocation R’000 R’000 1. Administration Current 585 420 7 154 592 574 592 574 - 0.00 532 750 531 781 2. Landward Defence Current 3 543 539 (38 657) 3 504 882 3 504 882 - 0.00 3 421 691 3 416 052 3. Air Defence Current 2 040 438 6 512 2 046 950 2 046 950 - 0.00 1 946 099 1 946 029 4. Maritime Defence Current 977 506 (7 658) 969 848 969 848 - 0.00 902 342 902 342 5. Medical Health Support Current 1 159 135 54 139 1 213 274 1 213 274 - 0.00 1 036 819 1 036 819 6. Defence Intelligence Current 142 862 (10 131) 132 731 132 731 - 0.00 139 176 138 585 7. Joint Support Current 1 985 284 (8 004) 1 977 280 1 974 801 2 479 (0.13) 1 834 117 1 833 180 8. Command and Control Current 624 318 (29 561) 594 757 588 303 6 454 (1.09) 390 831 390 736 9. Special Defence Account Current 7 786 232 - 7 786 232 7 786 232 - 0.00 5 830 075 5 830 075 10. Special functions: authorised losses Current - 26 206 26 206 26 206 - 0.00 19 050 19 050 Total 18 844 734 - 18 844 734 18 835 801 8 933 (0.05) 16 052 950 16 044 649
2002/03 2001/02 Direct charge against Adjusted Virement Revised Actual Savings/ Expenditure Revised Actual the National Revenue Appropriation Allocation Expenditure Underspend as % of Allocation Expenditure Fund (Excess) revised R’000 R’000 R’000 R’000 R’000 allocation R’000 R’000 1. Provinces Equitable - - - - - 0.00 - - Share State Debt Costs - - - - - 0.00 - - Total - - - - - 0.00 - -
2002-2003 Annual Report 163 Chapter 14
DEPARTMENT OF DEFENCE VOTE 21
APPROPRIATION STATEMENT for the year ended 31 MARCH 2003 (continued)
2002/03 2001/02 Adjusted Virement Revised Actual Savings/ Expenditure Revised Actual Economic Appropriation Allocation Expenditure Underspend as % of Allocation Expenditure classification (Excess) revised R’000 R’000 R’000 R’000 R’000 allocation R’000 R’000 Current 18 789 708 - 18 789 708 18 782 591 7 117 (0.04) 15 981 183 15 972 882 Personnel 6 579 735 62 301 6 642 036 6 642 036 - 0.00 6 159 148 6 159 149 Transfer payments 8 007 301 - 8 007 301 8 006 638 663 (0.01) 6 041 389 6 040 564 Other 4 202 672 (62 301) 4 140 371 4 133 917 6 454 (0.16) 3 780 646 3 773 169 Capital 55 026 - 55 026 53 210 1 816 (3.30) 71 767 71 767 Transfer payments - - - - - 0.00 - - Acquisition of capital 55 026 - 55 026 53 210 1 816 (3.30) 71 767 71 767 assets Total 18 844 734 - 18 844 734 18 835 801 8 933 (0.05) 16 052 950 16 044 649
2002/03 2001/02 Adjusted Virement Revised Actual Savings/ Expenditure Revised Actual Standard items Appropriation Allocation Expenditure Underspend as % of Allocation Expenditure classification (Excess) revised R’000 R’000 R’000 R’000 R’000 allocation R’000 R’000 Personnel 6 579 735 62 301 6 642 036 6 642 036 - 0.00 6 159 148 6 159 149 Administrative 627 800 (15 008) 612 792 612 792 - 0.00 496 016 496 016 Inventories 1 056 900 (80 667) 976 233 976 233 - 0.00 885 747 885 744 Equipment 326 088 77 421 403 509 397 055 6 454 (1.60) 348 080 340 605 Land and buildings 5 882 1 690 7 572 7 572 - 0.00 5 185 5 186 Professional and special 2 230 178 (62 556) 2 167 622 2 165 806 1 816 (0.08) 2 093 507 2 093 507 services Transfer payments 8 007 301 - 8 007 301 8 006 638 663 (0.01) 6 041 389 6 040 564 Miscellaneous 10 850 (9 387) 1 463 1 463 - 0.00 4 828 4 828 Special functions: authorised losses - 26 206 26 206 26 206 - 0.00 19 050 19 050 Total 18 844 734 - 18 844 734 18 835 801 8 933 (0.05) 16 052 950 16 044 649
164 Department of Defence Chapter 14
DEPARTMENT OF DEFENCE VOTE 21
DETAIL PER PROGRAMME 1 - ADMINISTRATION for the year ended 31 MARCH 2003
2002/03 2001/02 Adjusted Virement Revised Actual Savings/ Expenditure Revised Actual Programme per Appropriation Allocation Expenditure Underspend as % of Allocation Expenditure subprogramme (Excess) revised R’000 R’000 R’000 R’000 R’000 allocation R’000 R’000 1.1 Minister Current 685 - 685 685 - 0.00 646 646 1.2 Deputy Minister Current 557 - 557 557 - 0.00 525 525 1.3 Political Direction Current 21 737 (10 075) 11 662 11 662 - 0.00 8 089 9 260 1.4 Departmental Direction Current 5 121 (841) 4 280 4 280 - 0.00 3 281 3 281 1.5 Policy and Planning Current 39 858 (350) 39 508 39 508 - 0.00 34 905 34 905 1.6 Financial Services Current 146 826 (7 357) 139 469 139 469 - 0.00 126 940 124 800 1.7 HR Support Services Current 191 271 28 459 219 730 219 730 - 0.00 193 623 193 623 1.8 Legal Services Current 59 613 (5 004) 54 609 54 609 - 0.00 47 245 47 245 1.9 Inspection Services Current 21 202 (1 777) 19 425 19 425 - 0.00 16 808 16 808 1.10 Acquisition Services Current 23 610 2 551 26 161 26 161 - 0.00 38 305 38 305 1.11 Corporate Communications Current 18 687 (2 872) 15 815 15 815 - 0.00 14 678 14 678 1.12 SANDF Command and Control Current 7 222 (1 567) 5 655 5 655 - 0.00 5 937 5 937 1.13 Religious Services Current 3 328 (351) 2 977 2 977 - 0.00 3 010 3 010 1.14 Part Time Component Current 6 359 600 6 959 6 959 - 0.00 6 381 6 381 1.15 Defence Foreign Liason Current 39 344 6 129 45 473 45 473 - 0.00 32 377 32 377 1.16 Income Current - (391) (391) (391) - 0.00 - - Total 585 420 7 154 592 574 592 574 - 0.00 532 750 531 781
2002-2003 Annual Report 165 Chapter 14
DEPARTMENT OF DEFENCE VOTE 21
DETAIL PER PROGRAMME 1 - ADMINISTRATION for the year ended 31 MARCH 2003 (continued)
2002/03 2001/02 Adjusted Virement Revised Actual Savings/ Expenditure Revised Actual Economic Appropriation Allocation Expenditure Underspend as % of Allocation Expenditure classification (Excess) revised R’000 R’000 R’000 R’000 R’000 allocation R’000 R’000 Current 585 420 7 154 592 574 592 574 - 0.00 532 750 531 781 Personnel 443 030 12 002 455 032 455 032 - 0.00 411 746 411 746 Transfer payments - - - - - 0.00 - - Other 142 390 (4 848) 137 542 137 542 - 0.00 121 004 120 035 Capital - - - - - 0.00 - - Transfer payments - - - - - 0.00 - - Acquisition of capital - - - - - 0.00 - - assets Total 585 420 7 154 592 574 592 574 - 0.00 532 750 531 781
2002/03 2001/02 Adjusted Virement Revised Actual Savings/ Expenditure Revised Actual Standard items Appropriation Allocation Expenditure Underspend as % of Allocation Expenditure classification (Excess) revised R’000 R’000 R’000 R’000 R’000 allocation R’000 R’000 Personnel 443 030 12 002 455 032 455 032 - 0.00 411 746 411 746 Administrative 61 158 10 911 72 069 72 069 - 0.00 50 241 50 241 Inventories 29 223 (15 539) 13 684 13 684 - 0.00 10 836 10 836 Equipment 16 837 14 440 31 277 31 277 - 0.00 24 805 23 836 Land and buildings 703 3 005 3 708 3 708 - 0.00 419 419 Professional and special 34 119 (17 333) 16 786 16 786 - 0.00 34 460 34 460 services Transfer payments - - - - - 0.00 - - Miscellaneous 350 (332) 18 18 - 0.00 243 243 Special functions: authorised losses - - - - - 0.00 - - Total 585 420 7 154 592 574 592 574 - 0.00 532 750 531 781
166 Department of Defence Chapter 14
DEPARTMENT OF DEFENCE VOTE 21
DETAIL PER PROGRAMME 2 - LANDWARD DEFENCE for the year ended 31 MARCH 2003
2002/03 2001/02 Adjusted Virement Revised Actual Savings/ Expenditure Revised Actual Programme per Appropriation Allocation Expenditure Underspend as % of Allocation Expenditure subprogramme (Excess) revised R’000 R’000 R’000 R’000 R’000 allocation R’000 R’000 2.1 Strategic Direction Current 183 216 (41) 183 175 183 175 - 0.00 204 449 204 449 2.2 Infantry Capability Current 1 545 003 (145 596) 1 399 407 1 399 407 - 0.00 1 510 065 1 504 426 2.3 Armour Capability Current 108 044 3 705 111 749 111 749 - 0.00 97 454 97 454 2.4 Artillery Capability Current 94 953 (2 472) 92 481 92 481 - 0.00 80 524 80 524 2.5 Anti-aircraft Capability Current 68 359 2 046 70 405 70 405 - 0.00 59 298 59 298 2.6 Engineering Capability Current 147 618 25 819 173 437 173 437 - 0.00 157 975 157 975 2.7 Operational Intelligence Current 53 025 (3 150) 49 875 49 875 - 0.00 45 143 45 143 2.8 Command and Control Capability Current 33 009 1 650 34 659 34 659 - 0.00 37 662 37 662 2.9 Support Capability Current 1 113 153 93 798 1 206 951 1 206 951 - 0.00 980 871 980 871 2.10 General Training Capability Current 139 409 (29 854) 109 555 109 555 - 0.00 113 263 113 263 2.11 Defence Commitments Current 57 750 11 223 68 973 68 973 - 0.00 59 297 59 297 2.12 Communications Capability Current - 60 60 60 - 0.00 27 27 2.13 Infrastructure Current - 9 847 9 847 9 847 - 0.00 68 876 68 876 2.14 VIP Protection and Ceremonial Current - - - - - 0.00 6 787 6 787 2.15 Internal Services Current - (4 767) (4 767) (4 767) - 0.00 - - 2.16 Income Current - (925) (925) (925) - 0.00 - - Total 3 543 539 (38 657) 3 504 882 3 504 882 - 0.00 3 421 691 3 416 052
2002-2003 Annual Report 167 Chapter 14
DEPARTMENT OF DEFENCE VOTE 21
DETAIL PER PROGRAMME 2 - LANDWARD DEFENCE for the year ended 31 MARCH 2003 (continued)
2002/03 2001/02 Adjusted Virement Revised Actual Savings/ Expenditure Revised Actual Economic Appropriation Allocation Expenditure Underspend as % of Allocation Expenditure classification (Excess) revised R’000 R’000 R’000 R’000 R’000 allocation R’000 R’000 Current 3 543 539 (38 657) 3 504 882 3 504 882 - 0.00 3 421 691 3 416 052 Personnel 2 521 593 (14 287) 2 507 306 2 507 306 - 0.00 2 442 376 2 442 376 Transfer payments - - - - - 0.00 - - Other 1 021 946 (24 370) 997 576 997 576 - 0.00 979 315 973 676 Capital - - - - - 0.00 - - Transfer payments - - - - - 0.00 - - Acquisition of capital - - - - - 0.00 - - assets Total 3 543 539 (38 657) 3 504 882 3 504 882 - 0.00 3 421 691 3 416 052
2002/03 2001/02 Adjusted Virement Revised Actual Savings/ Expenditure Revised Actual Standard items Appropriation Allocation Expenditure Underspend as % of Allocation Expenditure classification (Excess) revised R’000 R’000 R’000 R’000 R’000 allocation R’000 R’000 Personnel 2 521 593 (14 287) 2 507 306 2 507 306 - 0.00 2 442 376 2 442 376 Administrative 113 961 19 689 133 650 133 650 - 0.00 136 010 136 010 Inventories 387 828 (57 715) 330 113 330 113 - 0.00 337 995 338 995 Equipment 68 188 5 737 73 925 73 925 - 0.00 107 135 101 496 Land and buildings 71 48 119 119 - 0.00 1 666 1 666 Professional and special 451 898 7 277 459 175 459 175 - 0.00 396 305 395 305 services Transfer payments - - - - - 0.00 - - Miscellaneous - 594 594 594 - 0.00 204 204 Special functions: authorised losses - - - - - 0.00 - - Total 3 543 539 (38 657) 3 504 882 3 504 882 - 0.00 3 421 691 3 416 052
168 Department of Defence Chapter 14
DEPARTMENT OF DEFENCE VOTE 21
DETAIL PER PROGRAMME 3 - AIR DEFENCE for the year ended 31 MARCH 2003
2002/03 2001/02 Adjusted Virement Revised Actual Savings/ Expenditure Revised Actual Programme per Appropriation Allocation Expenditure Underspend as % of Allocation Expenditure subprogramme (Excess) revised R’000 R’000 R’000 R’000 R’000 allocation R’000 R’000 3.1 Strategic Direction Current 4 574 (1 649) 2 925 2 925 - 0.00 34 260 34 260 3.2 Operational Direction Current 54 237 12 389 66 626 66 626 - 0.00 345 058 344 988 3.3 Helicopter Capability Current 222 788 17 870 240 658 240 658 - 0.00 215 549 215 549 3.4 Transport and Maritime Capability Current 166 038 5 845 171 883 171 883 - 0.00 149 270 149 270 3.5 Air Combat and Reconnaissance Current 237 436 (4 731) 232 705 232 705 - 0.00 197 010 197 010 3.6 Operational Support and Intelligence Capability Current 105 655 (7 363) 98 292 98 292 - 0.00 88 840 88 840 3.7 Command and Control Intelligence Current 128 291 2 393 130 684 130 684 - 0.00 136 260 136 260 3.8 Base Support Capability Current 453 188 48 247 501 435 501 435 - 0.00 391 832 391 832 3.9 Command Post Current 22 870 6 792 29 662 29 662 - 0.00 15 247 15 247 3.10 Training Capability Current 230 232 (31 353) 198 879 198 879 - 0.00 205 773 205 773 3.11 Technical Support Services Current 415 129 18 920 434 049 434 049 - 0.00 204 484 204 484 3.12 Internal Services Current - (47 408) (47 408) (47 408) - 0.00 (28 856) (28 856) 3.13 Income Current - (13 440) (13 440) (13 440) - 0.00 (8 628) (8 628) Total 2 040 438 6 512 2 046 950 2 046 950 - 0.00 1 946 099 1 946 029
2002-2003 Annual Report 169 Chapter 14
DEPARTMENT OF DEFENCE VOTE 21
DETAIL PER PROGRAMME 3 - AIR DEFENCE for the year ended 31 MARCH 2003 (continued)
2002/03 2001/02 Adjusted Virement Revised Actual Savings/ Expenditure Revised Actual Economic Appropriation Allocation Expenditure Underspend as % of Allocation Expenditure classification (Excess) revised R’000 R’000 R’000 R’000 R’000 allocation R’000 R’000 Current 2 040 438 6 512 2 046 950 2 046 950 - 0.0 1 946 099 1 946 029 Personnel 988 673 32 413 1 021 086 1 021 086 - 0.0 908 451 908 451 Transfer payments - - - - - 0.0 - - Other 1 051 765 (25 901) 1 025 864 1 025 864 - 0.0 1 037 648 1 037 578 Capital - - - - - 0.0 - - Transfer payments - - - - - 0.0 - - Acquisition of capital - - - - - 0.0 - - assets Total 2 040 438 6 512 2 046 950 2 046 950 - 0.0 1 946 099 1 946 029
2002/03 2001/02 Adjusted Virement Revised Actual Savings/ Expenditure Revised Actual Standard items Appropriation Allocation Expenditure Underspend as % of Allocation Expenditure classification (Excess) revised R’000 R’000 R’000 R’000 R’000 allocation R’000 R’000 Personnel 988 673 32 413 1 021 086 1 021 086 - 0.00 908 451 908 451 Administrative 75 941 9 141 85 082 85 082 - 0.00 84 272 84 271 Inventories 219 256 (9 779) 209 477 209 477 - 0.00 175 169 175 169 Equipment 54 876 (15 556) 39 320 39 320 - 0.00 41 694 41 624 Land and buildings - - - - - 0.00 - - Professional and special 701 692 (9 883) 691 809 691 809 - 0.00 736 483 736 483 services Transfer payments - - - - - 0.00 - - Miscellaneous - 176 176 176 - 0.00 30 31 Special functions: authorised losses - - - - - 0.00 - - Total 2 040 438 6 512 2 046 950 2 046 950 - 0.00 1 946 099 1 946 029
170 Department of Defence Chapter 14
DEPARTMENT OF DEFENCE VOTE 21
DETAIL PER PROGRAMME 4 - MARITIME DEFENCE for the year ended 31 MARCH 2003
2002/03 2001/02 Adjusted Virement Revised Actual Savings/ Expenditure Revised Actual Programme per Appropriation Allocation Expenditure Underspend as % of Allocation Expenditure subprogramme (Excess) revised R’000 R’000 R’000 R’000 R’000 allocation R’000 R’000 4.1 Maritime Direction Current 353 535 5 589 359 124 359 124 - 0.00 7 247 7 247 4.2 Maritime Combat Capability Current 101 490 (6 729) 94 761 94 761 - 0.00 7 418 7 418 4.3 Maritime Logistic Support Capability Current 165 577 (6 875) 158 702 158 702 - 0.00 11 534 11 534 4.4 Maritime Training Capability Current 131 176 (44 713) 86 463 86 463 - 0.00 10 208 10 208 4.5 Base Support Capability Current 211 693 37 908 249 601 249 601 - 0.00 16 393 16 393 4.6 Maritime Reserve Capability Current 14 035 1 260 15 295 15 295 - 0.00 621 621 4.7 Strategic Direction Current - 5 511 5 511 5 511 - 0.00 118 731 118 731 4.8 Maritime Combat Capability Current - 107 107 107 - 0.00 143 668 143 668 4.9 Maritime Logistic Support Capability Current - 421 421 421 - 0.00 248 485 248 485 4.10 Base Support Current - 16 16 16 - 0.00 206 089 206 089 4.11 Maritime Reserve Capability Current - 147 147 147 - 0.00 119 387 119 387 4.12 Maritime Reserve Capability Current - - - - - 0.00 10 264 10 264 4.13 Quality Assurance Current - - - - - 0.00 2 884 2 884 4.14 Maritime Communications Capability Current - - - - - 0.00 244 244 4.15 Internal Services Current - (56) (56) (56) - 0.00 - - 4.16 Income Current - (244) (244) (244) - 0.00 (831) (831) Total 977 506 (7 658) 969 848 969 848 - 0.00 902 342 902 342
2002-2003 Annual Report 171 Chapter 14
DEPARTMENT OF DEFENCE VOTE 21
DETAIL PER PROGRAMME 4 - MARITIME DEFENCE for the year ended 31 MARCH 2003 (continued)
2002/03 2001/02 Adjusted Virement Revised Actual Savings/ Expenditure Revised Actual Economic Appropriation Allocation Expenditure Underspend as % of Allocation Expenditure classification (Excess) revised R’000 R’000 R’000 R’000 R’000 allocation R’000 R’000 Current 977 506 (7 658) 969 848 969 848 - 0.00 902 342 902 342 Personnel 620 430 (47) 620 383 620 383 - 0.00 621 240 621 240 Transfer payments - - - - - 0.00 - - Other 357 076 (7 611) 349 465 349 465 - 0.00 281 102 281 102 Capital - - - - - 0.00 - - Transfer payments - - - - - 0.00 - - Acquisition of capital - - - - - 0.00 - - assets Total 977 506 (7 658) 969 848 969 848 - 0.00 902 342 902 342
2002/03 2001/02 Adjusted Virement Revised Actual Savings/ Expenditure Revised Actual Standard items Appropriation Allocation Expenditure Underspend as % of Allocation Expenditure classification (Excess) revised R’000 R’000 R’000 R’000 R’000 allocation R’000 R’000 Personnel 620 430 (47) 620 383 620 383 - 0.00 621 240 621 240 Administrative 46 714 2 341 49 055 49 055 - 0.00 34 563 34 563 Inventories 108 203 7 028 115 231 115 231 - 0.00 98 369 98 369 Equipment 48 407 (2 213) 46 194 46 194 - 0.00 35 666 35 666 Land and buildings - 8 8 8 - 0.00 - - Professional and special 153 752 (14 797) 138 955 138 955 - 0.00 112 279 112 279 services Transfer payments - - - - - 0.00 - - Miscellaneous - 22 22 22 - 0.00 225 225 Special functions: authorised losses - - - - - 0.00 - - Total 977 506 (7 658) 969 848 969 848 - 0.00 902 342 902 342
172 Department of Defence Chapter 14
DEPARTMENT OF DEFENCE VOTE 21
DETAIL PER PROGRAMME 5 - MILITARY HEALTH SUPPORT for the year ended 31 MARCH 2003
2002/03 2001/02 Adjusted Virement Revised Actual Savings/ Expenditure Revised Actual Programme per Appropriation Allocation Expenditure Underspend as % of Allocation Expenditure subprogramme (Excess) revised R’000 R’000 R’000 R’000 R’000 allocation R’000 R’000 5.1 Strategic Direction Current 124 816 (30 647) 94 169 94 169 - 0.00 84 331 84 331 5.2 Military Health Support Current 44 788 637 45 425 45 425 - 0.00 27 841 27 841 5.3 Area Military Health Support Current 402 635 18 140 420 775 420 775 - 0.00 353 592 353 592 5.4 Specialist Health Support Current 474 603 6 660 481 263 481 263 - 0.00 464 417 464 417 5.5 Product Support Capability Current 31 785 37 221 69 006 69 006 - 0.00 44 292 44 292 5.6 Base Support Capability Current 6 559 24 047 30 606 30 606 - 0.00 13 410 13 410 5.7 Military Health Training Current 73 949 4 079 78 028 78 028 - 0.00 58 047 58 047 5.8 Internal Services Current - (349) (349) (349) - 0.00 - - 5.9 Income Current - (5 649) (5 649) (5 649) - 0.00 (9 111) (9 111) Total 1 159 135 54 139 1 213 274 1 213 274 - 0.00 1 036 819 1 036 819
2002-2003 Annual Report 173 Chapter 14
DEPARTMENT OF DEFENCE VOTE 21
DETAIL PER PROGRAMME 5 - MILITARY HEALTH SUPPORT for the year ended 31 MARCH 2003 (continued)
2002/03 2001/02 Adjusted Virement Revised Actual Savings/ Expenditure Revised Actual Economic Appropriation Allocation Expenditure Underspend as % of Allocation Expenditure classification (Excess) revised R’000 R’000 R’000 R’000 R’000 allocation R’000 R’000 Current 1 159 135 54 139 1 213 274 1 213 274 - 0.00 1 036 819 1 036 819 Personnel 762 364 12 216 774 580 774 580 - 0.00 688 512 688 512 Transfer payments - - - - - 0.00 - - Other 396 771 41 923 438 694 438 694 - 0.00 348 307 348 307 Capital - - - - - 0.00 - - Transfer payments - - - - - 0.00 - - Acquisition of capital - - - - - 0.00 - - assets Total 1 159 135 54 139 1 213 274 1 213 274 - 0.00 1 036 819 1 036 819
2002/03 2001/02 Adjusted Virement Revised Actual Savings/ Expenditure Revised Actual Standard items Appropriation Allocation Expenditure Underspend as % of Allocation Expenditure classification (Excess) revised R’000 R’000 R’000 R’000 R’000 allocation R’000 R’000 Personnel 762 364 12 216 774 580 774 580 - 0.00 688 512 688 512 Administrative 40 770 1 564 42 334 42 334 - 0.00 28 280 28 280 Inventories 194 293 4 259 198 552 198 552 - 0.00 182 664 182 664 Equipment 54 222 15 962 70 184 70 184 - 0.00 38 267 38 267 Land and buildings 1 300 (1 300) - - - 0.00 - - Professional and special 106 186 21 348 127 534 127 534 - 0.00 98 261 98 261 services Transfer Payments - - - - - 0.00 - - Miscellaneous - 90 90 90 - 0.00 835 835 Special functions: authorised losses - - - - - 0.00 - - Total 1 159 135 54 139 1 213 274 1 213 274 - 0.00 1 036 819 1 036 819
174 Department of Defence Chapter 14
DEPARTMENT OF DEFENCE VOTE 21
DETAIL PER PROGRAMME 6 - DEFENCE INTELLIGENCE for the year ended 31 MARCH 2003
2002/03 2001/02 Adjusted Virement Revised Actual Savings/ Expenditure Revised Actual Programme per Appropriation Allocation Expenditure Underspend as % of Allocation Expenditure subprogramme (Excess) revised R’000 R’000 R’000 R’000 R’000 allocation R’000 R’000 6.1 Strategic Direction Current 112 549 (12 128) 100 421 100 421 - 0.00 107 122 106 531 6.2 Defence Intelligence Services Current 12 583 (2 474) 10 109 10 109 - 0.00 8 818 8 818 6.3 Defence Counter Intelligence Services Current 4 620 (1 028) 3 592 3 592 - 0.00 4 655 4 655 6.4 Foreign Military Relations Current 1 858 (718) 1 140 1 140 - 0.00 3 883 3 883 6.5 Defence Intelligence Support Services Current 8 705 7 044 15 749 15 749 - 0.00 14 042 14 042 6.6 Defence Intelligence Training Current 2 547 (804) 1 743 1 743 - 0.00 1 311 1 311 6.7 Income Current - (23) (23) (23) - 0.00 (655) (655) Total 142 862 (10 131) 132 731 132 731 - 0.00 139 176 138 585
2002-2003 Annual Report 175 Chapter 14
DEPARTMENT OF DEFENCE VOTE 21
DETAIL PER PROGRAMME 6 - DEFENCE INTELLIGENCE for the year ended 31 MARCH 2003 (continued)
2002/03 2001/02 Adjusted Virement Revised Actual Savings/ Expenditure Revised Actual Economic Appropriation Allocation Expenditure Underspend as % of Allocation Expenditure classification (Excess) revised R’000 R’000 R’000 R’000 R’000 allocation R’000 R’000 Current 142 862 (10 131) 132 731 132 731 - 0.00 139 176 138 585 Personnel 109 862 (5 488) 104 374 104 374 - 0.00 104 530 104 531 Transfer payments - - - - - 0.00 - - Other 33 000 (4 643) 28 357 28 357 - 0.00 34 646 34 054 Capital - - - - - 0.00 - - Transfer payments - - - - - 0.00 - - Acquisition of capital - - - - - 0.00 - - assets Total 142 862 (10 131) 132 731 132 731 - 0.00 139 176 138 585
2002/03 2001/02 Adjusted Virement Revised Actual Savings/ Expenditure Revised Actual Standard items Appropriation Allocation Expenditure Underspend as % of Allocation Expenditure classification (Excess) revised R’000 R’000 R’000 R’000 R’000 allocation R’000 R’000 Personnel 109 862 (5 488) 104 374 104 374 - 0.00 104 530 104 531 Administrative 10 008 (2 096) 7 912 7 912 - 0.00 11 581 11 583 Inventories 4 490 (742) 3 748 3 748 - 0.00 3 749 3 749 Equipment 6 389 (1 096) 5 293 5 293 - 0.00 6 631 6 036 Land and buildings - - - - - 0.00 - - Professional and special 12 113 (710) 11 403 11 403 - 0.00 12 676 12 676 services Transfer payments - - - - - 0.00 - - Miscellaneous - 1 1 1 - 0.00 9 10 Special functions: authorised losses - - - - - 0.00 - - Total 142 862 (10 131) 132 731 132 731 - 0.00 139 176 138 585
176 Department of Defence Chapter 14
DEPARTMENT OF DEFENCE VOTE 21
DETAIL PER PROGRAMME 7 - JOINT SUPPORT for the year ended 31 MARCH 2003
2002/03 2001/02 Adjusted Virement Revised Actual Savings/ Expenditure Revised Actual Programme per Appropriation Allocation Expenditure Underspend as % of Allocation Expenditure subprogramme (Excess) revised R’000 R’000 R’000 R’000 R’000 allocation R’000 R’000 7.1 Joint Support Management Current 111 012 27 045 138 057 138 057 - 0.00 115 904 115 904 7.2 Joint Logistic Services Current 288 116 21 081 309 197 309 197 - 0.00 243 081 243 081 Capital 55 026 - 55 026 53 210 1 816 (3.30) 71 767 71 767 7.3 Command and Management Information Services Current 768 399 26 779 795 178 795 178 - 0.00 769 404 769 404 7.4 Military Policing Current 202 353 (12 035) 190 318 190 318 - 0.00 186 268 186 156 7.5 Service Corps Current 46 918 (659) 46 259 46 259 - 0.00 45 786 45 786 7.6 Acquisition Services Current 22 628 (768) 21 860 21 860 - 0.00 3 547 3 547 7.7 Joint Training Current 159 741 (4 998) 154 743 154 660 83 (0.05) 153 253 153 253 7.8 Assistance Current 4 290 - 4 290 3 710 580 (13.52) 2 322 2 322 7.9 Departmental Support Current 314 948 (64 501) 250 447 250 447 - 0.00 236 060 235 235 7.10 British Military Advisory and Training Current 11 853 1 523 13 376 13 376 - 0.00 6 725 6 725 7.11 Internal Services Current - (1 323) (1 323) (1 323) - 0.00 - - 7.12 Income Current - (48) (148) (148) - 0.00 - - Total 1 985 284 (8 004) 1 977 280 1 974 801 2 479 (0.13) 1 834 117 1 833 180
2002-2003 Annual Report 177 Chapter 14
DEPARTMENT OF DEFENCE VOTE 21
DETAIL PER PROGRAMME 7 - JOINT SUPPORT for the year ended 31 MARCH 2003 (continued)
2002/03 2001/02 Adjusted Virement Revised Actual Savings/ Expenditure Revised Actual Economic Appropriation Allocation Expenditure Underspend as % of Allocation Expenditure classification (Excess) revised R’000 R’000 R’000 R’000 R’000 allocation R’000 R’000 Current 1 930 258 (8 004) 1 922 254 1 921 591 663 (0.30) 1 762 350 1 761 413 Personnel 907 713 33 654 941 367 941 367 - 0.00 811 754 811 754 Transfer payments 221 069 - 221 069 220 406 663 (0.30) 211 314 210 489 Other 801 476 (41 658) 759 818 759 818 - 0.00 739 282 739 170 Capital 55 026 - 55 026 53 210 1 816 (3.30) 71 767 71 767 Transfer payments - - - - - 0.00 - - Acquisition of capital 55 026 - 55 026 53 210 1 816 (3.30) 71 767 71 767 assets Total 1 985 284 (8 004) 1 977 280 1 974 801 2 479 (0.13) 1 834 117 1 833 180
2002/03 2001/02 Adjusted Virement Revised Actual Savings/ Expenditure Revised Actual Standard items Appropriation Allocation Expenditure Underspend as % of Allocation Expenditure classification (Excess) revised R’000 R’000 R’000 R’000 R’000 allocation R’000 R’000 Personnel 907 713 33 654 941 367 941 367 - 0.00 811 754 811 754 Administrative 101 047 (10 711) 90 336 90 336 - 0.00 102 144 102 144 Inventories 52 909 133 53 042 53 042 - 0.00 47 721 47 721 Equipment 52 026 9 682 61 708 61 708 - 0.00 46 641 46 527 Land and buildings 3 808 (72) 3 736 3 736 - 0.00 3 101 3 101 Professional and special 636 212 (30 751) 605 461 603 645 1 816 (0.30) 609 034 609 035 services Transfer payments 221 069 - 221 069 220 406 663 (0.30) 211 314 210 490 Miscellaneous 10 500 (9 939) 561 561 - 0.00 2 408 2 408 Special functions: authorised losses - - - - - 0.00 - - Total 1 985 284 (8 004) 1 977 280 1 974 801 2 479 (0.13) 1 834 117 1 833 180
178 Department of Defence Chapter 14
DEPARTMENT OF DEFENCE VOTE 21
DETAIL PER PROGRAMME 8 - COMMAND AND CONTROL for the year ended 31 MARCH 2003
2002/03 2001/02 Adjusted Virement Revised Actual Savings/ Expenditure Revised Actual Programme per Appropriation Allocation Expenditure Underspend as % of Allocation Expenditure subprogramme (Excess) revised R’000 R’000 R’000 R’000 R’000 allocation R’000 R’000 8.1 Command and Control Current 112 199 (2 653) 109 546 109 546 - 0.00 98 539 98 538 8.2 Special Operations Current 116 115 (755) 115 360 115 360 - 0.00 99 238 99 144 8.3 Ordered Operations UN Peace Mission in the DRC Current 50 919 (12 207) 38 712 38 712 - 0.00 45 686 45 686 Protection Support Detachment in Burundi Current 330 275 (61 886) 268 389 261 935 6 454 (2.40) 118 170 118 170 World Summit on Sustainable Development Current 14 810 (5 386) 9 424 9 424 - 0.00 - - Destruction of Small Arms and Ammunition Current - - - - - 0.00 342 342 8.4 Internal Services Current - 53 903 53 903 53 903 - 0.00 28 856 28 856 8.5 Income Current - (577) (577) (577) - 0.00 - - Total 624 318 (29 561) 594 757 588 303 6 454 (1.09) 390 831 390 736
2002-2003 Annual Report 179 Chapter 14
DEPARTMENT OF DEFENCE VOTE 21
DETAIL PER PROGRAMME 8 - COMMAND AND CONTROL for the year ended 31 MARCH 2003 (continued)
2002/03 2001/02 Adjusted Virement Revised Actual Savings/ Expenditure Revised Actual Economic Appropriation Allocation Expenditure Underspend as % of Allocation Expenditure classification (Excess) revised R’000 R’000 R’000 R’000 R’000 allocation R’000 R’000 Current 624 318 (29 561) 594 757 588 303 6 454 (1.09) 390 831 390 736 Personnel 226 070 (8 162) 217 908 217 908 - 0.00 170 541 170 541 Transfer payments - - - - - 0.00 - - Other 398 248 (21 399) 376 849 370 395 6 454 (1.71) 220 290 220 195 Capital - - - - - 0.00 - - Transfer payments - - - - - 0.00 - - Acquisition of capital - - - - - 0.00 - - assets Total 624 318 (29 561) 594 757 588 303 6 454 (1.09) 390 831 390 736
2002/03 2001/02 Adjusted Virement Revised Actual Savings/ Expenditure Revised Actual Standard items Appropriation Allocation Expenditure Underspend as % of Allocation Expenditure classification (Excess) revised R’000 R’000 R’000 R’000 R’000 allocation R’000 R’000 Personnel 226 070 (8 162) 217 908 217 908 - 0.00 170 541 170 541 Administrative 178 201 (45 847) 132 354 132 354 - 0.00 48 927 48 927 Inventories 60 698 (8 311) 52 387 52 387 - 0.00 29 109 29 109 Equipment 25 143 50 466 75 609 69 155 6 454 (8.54) 47 242 47 147 Land and buildings - - - - - 0.00 - - Professional and special 134 206 (17 707) 116 499 116 499 - 0.00 95 007 95 007 services Transfer payments - - - - - 0.00 - - Miscellaneous - - - - - 0.00 5 5 Special functions: authorised losses - - - - - 0.00 - - Total 624 318 (29 561) 594 757 588 303 6 454 (1.09) 390 831 390 736
180 Department of Defence Chapter 14
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DETAIL PER PROGRAMME 9 - SPECIAL DEFENCE ACCOUNT for the year ended 31 MARCH 2003
2002/03 2001/02 Adjusted Virement Revised Actual Savings/ Expenditure Revised Actual Programme per Appropriation Allocation Expenditure Underspend as % of Allocation Expenditure subprogramme (Excess) revised R’000 R’000 R’000 R’000 R’000 allocation R’000 R’000 9.1 Procurement Services Current 1 071 407 - 1 071 407 1 071 407 - 0.00 1 394 338 1 394 338 9.2 Strategic Defence Procurement Current 6 475 900 - 6 475 900 6 475 900 - 0.00 4 223 384 4 223 384 9.3 Operating Current 189 313 - 189 313 189 313 - 0.00 172 299 172 299 9.4 Intelligence Related Current 49 612 - 49 612 49 612 - 0.00 40 054 40 054 Total 7 786 232 - 7 786 232 7 786 232 - 0.00 5 830 075 5 830 075
2002/03 2001/02 Adjusted Virement Revised Actual Savings/ Expenditure Revised Actual Economic Appropriation Allocation Expenditure Underspend as % of Allocation Expenditure classification (Excess) revised R’000 R’000 R’000 R’000 R’000 allocation R’000 R’000 Current 7 786 232 - 7 786 232 7 786 232 - 0.00 5 830 075 5 830 075 Personnel - - - - - 0.00 - - Transfer payments 7 786 232 - 7 786 232 7 786 232 - 0.00 5 830 075 5 830 075 Other - - - - - 0.00 - - Capital - - - - - 0.00 - - Transfer payments - - - - - 0.00 - - Acquisition of capital assets - - - - - 0.00 - - Total 7 786 232 - 7 786 232 7 786 232 - 0.00 5 830 075 5 830 075
2002-2003 Annual Report 181 Chapter 14
DEPARTMENT OF DEFENCE VOTE 21
DETAIL PER PROGRAMME 9 - SPECIAL DEFENCE ACCOUNT for the year ended 31 MARCH 2003 (continued)
2002/03 2001/02 Adjusted Virement Revised Actual Savings/ Expenditure Revised Actual Standard items Appropriation Allocation Expenditure Underspend as % of Allocation Expenditure classification (Excess) revised R’000 R’000 R’000 R’000 R’000 allocation R’000 R’000 Personnel - - - - - 0.00 - - Administrative - - - - - 0.00 - - Inventories - - - - - 0.00 - - Equipment - - - - - 0.00 - - Land and buildings - - - - - 0.00 - - Professional and special - - - - - 0.00 - - services Transfer payments 7 786 232 - 7 786 232 7 786 232 - 0.00 5 830 075 5 830 075 Miscellaneous - - - - - 0.00 - - Special functions: authorised losses - - - - - 0.00 - - Total 7 786 232 - 7 786 232 7 786 232 - 0.00 5 830 075 5 830 075
182 Department of Defence Chapter 14
DEPARTMENT OF DEFENCE VOTE 21
DETAIL PER PROGRAMME 10 - SPECIAL FUNCTIONS: AUTHORISED LOSSES for the year ended 31 MARCH 2003
2002/03 2001/02 Adjusted Virement Revised Actual Savings/ Expenditure Revised Actual Programme per Appropriation Allocation Expenditure Underspend as % of Allocation Expenditure subprogramme (Excess) revised R’000 R’000 R’000 R’000 R’000 allocation R’000 R’000 10.1 Authorised losses Current - 26 206 26 206 26 206 - 0.00 19 050 19 050 Total - 26 206 26 206 26 206 - 0.00 19 050 19 050
2002/03 2001/02 Adjusted Virement Revised Actual Savings/ Expenditure Revised Actual Economic Appropriation Allocation Expenditure Underspend as % of Allocation Expenditure classification (Excess) revised R’000 R’000 R’000 R’000 R’000 allocation R’000 R’000 Current - 26 206 26 206 26 206 - 0.00 19 050 19 050 Personnel - - - - - 0.00 - - Transfer payments - - - - - 0.00 - - Other - 26 206 26 206 26 206 - 0.00 19 050 19 050 Capital - - - - - 0.00 - - Transfer payments - - - - - 0.00 - - Acquisition of capital - - - - - 0.00 - - assets Total - 26 206 26 206 26 206 - 0.00 19 050 19 050
2002/03 2001/02 Adjusted Virement Revised Actual Savings/ Expenditure Revised Actual Standard items Appropriation Allocation Expenditure Underspend as % of Allocation Expenditure classification (Excess) revised R’000 R’000 R’000 R’000 R’000 allocation R’000 R’000 Personnel - - - - - 0.0 - - Administrative - - - - - 0.0 - - Inventories - - - - - 0.0 - - Equipment - - - - - 0.0 - - Land and buildings - - - - - 0.0 - - Professional and special - - - - - 0.0 - - services Transfer payments - - - - - 0.0 - - Miscellaneous - - - - - 0.0 - - Special functions: authorised losses - 26 206 26 206 26 206 - 0.0 19 050 19 050 Total - 26 206 26 206 26 206 - 0.0 19 050 19 050
2002-2003 Annual Report 183 Chapter 14
DEPARTMENT OF DEFENCE VOTE 21
NOTES TO THE APPROPRIATION STATEMENT for the year ended 31 MARCH 2003
1. Detail of current and capital statements. budget. The current budget transfers as per Appro-pri- does not make provision for a ation Act (after virement): 3. Detail of specific functions roll-over. (authorised losses) Detail of these transactions 4.2 Command and Control: can be viewed in note 9 Detail of these transactions The funds are required to (Transfer payments) to the per programme can be view- cover the first commitments annual financial statements. ed in note 11.5 (Details of on the Defence budget. The special functions) to the current budget does not 2. Detail of specifically and annual financial statements. make provision for a rolled- exclusively appropriated over. amounts voted (after vire- 4. Explanation of material var- ment): iances from amount voted 4.3 Equipment: The funds are (after virement): required to cover the first Detail of these transactions commitments on the Defence can be viewed in note 1 4.1 Joint Support: The funds budget. The current budget (Charge to National Revenue are required to cover the first does not make provision for a Fund) to the annual financial commitments on the Defence roll-over.
5. Reconciliation of Appro-priation Statement to In-come Statement:
2002/03 2001/02 R’000 R’000
Total expenditure per Income Statement 18 835 801 16 048 218 Plus: Investements acquired and capitalised during current financial year - - Less: Expenditure from other revenue - - Less: Local and foreign aid assistance (including RDP funds) - 3 569 Actual expenses per Appropriation Statement 18 835 801 16 044 649
184 Department of Defence Chapter 14
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INCOME STATEMENT (STATEMENT OF FINANCIAL PERFORMANCE) for the year ended 31 MARCH 2003
Note 2002/03 2001/02 REVENUE R'000 R'000
Voted funds Charge to National Revenue Fund 1 18 844 734 16 052 950 Non voted funds 352 277 130 170 Other revenue to be surrendered to the Revenue Fund 2 352 277 126 601 Local and foreign aid assistance (including RDP funds) - 3 569
TOTAL REVENUE 19 197 011 16 183 120
EXPENDITURE Current 18 782 592 15 976 451 Personnel 4 6 642 036 6 159 149 Administrative 612 792 496 016 Inventories 5.1 976 233 885 744 Machinery and equipment 6 397 055 340 605 Land and buildings 7 7 572 5 186 Professional and special services 8.1 2 112 597 2 021 740 Transfer payments 9 8 006 638 6 040 564 Miscellaneous 10 1 463 4 828 Special functions: authorised losses 11 26 206 19 050 Local and foreign aid assistance (including RDP funds) - 3 569 Total current expenditure 18 782 592 15 976 451
Capital Professional and special services 8.2 53 209 71 767 Total capital expenditure 53 209 71 767
TOTAL EXPENDITURE 18 835 801 16 048 218
NET SURPLUS 361 210 134 902
Add back unauthorised and fruitless and wasteful 12 2 099 1 906 expenditure disallowed
NET SURPLUS FOR THE YEAR 13 363 309 136 808
2002-2003 Annual Report 185 Chapter 14
DEPARTMENT OF DEFENCE VOTE 21
BALANCE SHEET (STATEMENTOF FINANCIAL POSITION) at 31 MARCH 2003
Note 2002/03 2001/02 ASSETS R'000 R'000
Current assets 699 614 726 821 Unauthorised, and fruitless and wasteful expenditure 12.1, 12.3 456 002 453 904 Cash and cash equivalents 14 30 539 37 201 Receivables 15 211 633 235 464 Loans 16 1 440 252
Non-current assets 25 177 12 842 Receivables 17 13 775 - Loans 16 11 402 12 842
TOTAL ASSETS 724 791 739 663
LIABILITIES
Current liabilities 640 557 644 889 Voted funds to be surrendered 18 11 032 10 207 Revenue funds to be surrendered 19 196 244 7 849 Bank overdraft 20 416 628 603 167 Advances received 21.1 397 1 002 Payables 21.2 16 256 22 664
TOTAL LIABILITIES 640 557 644 889
NET ASSETS/LIABILITIES 84 234 94 774
EQUITY Recoverable revenue 84 234 94 774
TOTAL EQUITY 84 234 94 774
186 Department of Defence Chapter 14
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STATEMENT OF CHANGES IN NET ASSETS/EQUITY for the year ended 31 MARCH 2003
Note 2002/03 2001/02 R'000 R'000 Recoverable revenue Opening balance 94 774 66 137 Transfer to Revenue Fund (17 896) (9 173) Debts written off 11.4 (7 984) 37 810 Debts raised 15 340 - Closing balance 84 234 94 774
2002-2003 Annual Report 187 Chapter 14
DEPARTMENT OF DEFENCE VOTE 21
CASH FLOW STATEMENT for the year ended 31 MARCH 2003
Note 2002/03 2001/02 R'000 R'000 CASH FLOWS FROM OPERATING ACTIVITIES Net cash flow generated by operating activities 23 243 152 208 575 Cash utilised to decrease working capital 24 (9 595) (4 669) Voted funds and revenue funds surrendered 25 (174 089) (181 374) Net cash flow available from operating activities 59 468 22 532
CASH FLOWS FROM INVESTING ACTIVITIES 120 157 (71 767) Capital expenditure on professional and special services (53 209) (71 767) Proceeds from sale of equipment 173 366 -
Net cash flows from operating and investing activities 179 625 (49 235)
CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from loans 252 1 351
Net increase/(decrease) in cash and cash equivalents 179 877 (47 884) Cash and cash equivalents at beginning of period (565 966) (518 082) Cash and cash equivalents at end of period (386 089) (565 966)
188 Department of Defence Chapter 14
DEPARTMENT OF DEFENCE VOTE 21
NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 MARCH 2003
1. Charge to National Revenue Fund
1.1 Included in the above are funds specifically and exclusively appropriated for National Departments (Voted funds):
Programmes Total Appropriation Actual Variance Total Appropriation 2002/03 over/(under) 2001/02 R'000 R'000 R'000 Administration 585 420 585 420 - 542 571 Landward Defence 3 543 539 3 543 539 - 3 483 344 Air Defence 2 040 438 2 040 438 - 1 945 823 Maritime Defence 977 506 977 506 - 929 468 Military Health Support 1 159 135 1 159 135 - 1 095 152 Defence Intelligence 142 862 142 862 - 151 175 Joint Support 1 985 284 1 985 284 - 1 668 823 Command and Control 624 318 624 318 - 406 519 Special Defence Account 7 786 232 7 786 232 - 5 830 075 TOTAL 18 844 734 18 844 734 - 16 052 950
1.2 A roll-over claim for Rm8,270 has been submitted to the National Treasury.
2. Other revenue to be surrendered to revenue fund
Description 2002/03 2001/02 R'000 R'000 Proceeds from sale of equipment 173 366 - Rendering of services 552 - Interest received 1 309 709 Recovery of housing rent 80 997 79 058 Recovery of loans 252 668 Money prescribed by law 1 350 1 245 Money not prescribed by law 9 175 10 167 Life insurance commission 28 378 14 905 Miscellaneous income 36 734 12 225 Other 20 164 7 624 352 277 126 601 Material items
Special Defence Account revenue 160 775 Debt recoveries 17 896
2002-2003 Annual Report 189 Chapter 14
DEPARTMENT OF DEFENCE VOTE 21
NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 MARCH 2003 (continued)
2.1 Gifts, donations and sponsorships received in kind excluding RDP funds by the department
Nature of gift, donation and sponsorship Received from 2002/03 2001/02 R'000 R'000 Turbo 4 Helmet, Turbo 4 battery/charger Stryker 58 - Various gifts for R1 000,00 or less Various institutions 16 2 Laptop Elly Lily 15 - Computer pentium Nurses Home Fund 6 - Fax machine Col Van den Berg 3 - Samsung fax machine Nurses Home Fund 2 - Grundig VCR Dr Tregoning 2 - T-shirts J TRG Formation 2 - File organiser executive Telemed Med Scheme 1 - Electrical vehicle for patient transportation Internal Medicine - 85 Multi-track system Smith & Nephew - 25 Lounge suite Foreign Affairs - 10 Basin Orthomed - 5 20 Blood analysers Rouche Diagnostics - 4 2 Fax machines Patient/Pharmacia - 3 Satellite dish BERCO Cleaning Service - 3 Blinds Launderdale - 2 105 139
3. Assistance received in kind (value not included in the income statement)
2002/03 2001/02 Local aid assistance (including RDP funds) R'000 R'000 Description Received from CX Delta machine Beckman Coulter - 500 Subsistence and travel Denel - 84 Subsistence and travel Armscor - 115 - 699 Foreign aid assistance Description Received from AIDS awareness promotion Government of the United States of America 4 653 400 Training assistance Government of the United States of America - 146 Air tickets and travel costs British Aero Space Systems - 82 Training assistance Government of the French Republic - 17 Training assistance Government of the Federal Republic of Germany - 12 4 653 657
Total Local and foreign aid assistance received in kind 4 653 1 356
190 Department of Defence Chapter 14
DEPARTMENT OF DEFENCE VOTE 21
NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 MARCH 2003 (continued)
4. Personnel
Current expenditure 2002/03 2001/02 R'000 R'000 Basic salary costs 4 906 700 4 557 068 Pension contributions 694 754 643 828 Medical aid contributions 47 041 43 627 Other salary related costs 993 541 914 626 6 642 036 6 159 149
Average number of employees 75 621 77 366
5. Inventories
5.1 Current expenditure
Inventories purchased during the year 976 233 885 744
Categories Fuels, lubricants and waxes 236 938 Subsistence 173 757 Medical and laboratory equipment 163 938 Clothing and textiles 118 450 Maintenance 67 942 Weaponry 65 738 Office supplies 53 507 Construction 35 056 Hygiene 18 549 Computer and communication 16 121 Miscellaneous 14 625 Gardening and chemicals 9 314 Agricultural supplies 2 020 Household furniture 238 Animals and animal food 40 976 233
Material items
Subsistence Rations for human consumption 80 884 Clothing and textiles Footwear for Landward Defence 30 849 Miscellaneous Miscellaneous for Operation Fibre 22 929 Fuel, lubricants, oils and waxes Marine fuel for vessels 21 839 Clothing and textiles Clothing for SA Army for special purposes 20 630 Fuel, lubricants, oils and waxes Aviation fuel for SA Airforce 20 524 Medical and laboratory equipment Medical pharmaceutical supplies 18 474
2002-2003 Annual Report 191 Chapter 14
DEPARTMENT OF DEFENCE VOTE 21
NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 MARCH 2003 (continued)
Current expenditure 2002/03 2001/02 R'000 R'000 Costing method used Inventories on hand at year end Current purchase 6 615 063 (The amount disclosed is only an estimate, as the price amount could not bedetermined accurately)
Note: Major categories and material items cannot be provided
6. Machinery and equipment
Note Current (Rentals, maintenance and sundry net of 6.1 397 055 340 605 Cash Discounts)
6.1 Current machinery and equipment analysed as follows:
Computer equipment 78 777 62 435 Furniture and office equipment 20 706 18 793 Other machinery and equipment 191 860 163 041 Specialist military assets 17 794 15 488 Transport 87 918 80 848 397 055 340 605
7. Land and buildings
Current expenditure (Net of Cash Discounts) 7 572 5 186 Rental
8. Professional and special services
8.1 Current expenditure
Maintenance and repair 615 903 516 118 Computer services 501 449 490 478 Other 374 799 369 992 Modifications of military aircraft 233 315 258 333 Contractors 228 820 249 559 Medical services 105 539 93 101 Auditors' remuneration 28 829 22 813 Research and development 18 970 16 723 Consultants and advisory services 3 778 4 599 Commissions and committees 1 195 24 2 112 597 2 021 740
192 Department of Defence Chapter 14
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NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 MARCH 2003 (continued)
8.2 Capital expenditure 2002/03 2001/02 R'000 R'000 Capital expenditure on buildings 53 209 71 767 53 209 71 767
Total Professional and special services 2 165 806 2 093 507
9. Transfer payments Note Transfers to public entities and institutions (current) Annexure 1 8 006 638 6 040 564
10. ` Miscellaneous
Current expenditure
Stabilisation fund 10.1 87 590 Remissions, refunds and payments made as an act 1 350 868 of grace Other 26 3 370 1 463 4 828
10.1 Remissions, refunds and payments made as an act of grace
Nature of remissions, refunds and payments
Payments as an act of grace 544 110 Contractual liability due to Employer Initiated Packages granted 493 396 Contractual liability due to Voluntary Severance Packages granted 281 139 Service rendered by a member 17 36 Contractual liability due to the death of members 6 187 Contractual liability due to circumstances beyond members' control 6 - Medical reasons 3 - 1 350 868
Material items
Financial relief 350 Payment as an act of grace 100 Contractual liability Employer Initiated Package granted (4 cases) 314
2002-2003 Annual Report 193 Chapter 14
DEPARTMENT OF DEFENCE VOTE 21
NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 MARCH 2003 (continued)
10.2 Gifts, donations and sponsorhips made in kind (items expensed in previous periods -Total value not included above)
Nature of gifts, donations and sponsorships 2002/03 2001/02 R'000 R'000 Harbour patrol boats 554 - 78 items (2001/2002 2 616 items) with residual 11 106 value less than R500,00 per item Executive Morabaraba chess game 2 - Espresso set with Big Five 1 - SANDF glass shield 1 - Shangaan warrior 1 - Framed traditional weapon 1 - Framed ebony elephant 1 - A5 Buffalo folder 1 - Rifle for museum display - 1 2 desk organisers - 1 10 old-technology computers - 1 573 109
11. Special functions: authorised losses
Note Material losses through criminal conduct 11.1 1 656 9 Other material losses written off 11.2 16 566 17 564 Debts written off 11.4 7 984 1 477 26 206 19 050
11.1 Material losses through criminal conduct
Nature of losses
Fraud on Warrant Vouchers 911 - Theft of State funds 364 - Counterfeit Dollars 186 - Theft of Warrant Vouchers 180 - Armed robbery 13 - Subsistence and travel fraud 2 - Theft of cash at 1 Engineers Regiment - 8 Theft of cash at Group 15 - 1 1 656 9
194 Department of Defence Chapter 14
DEPARTMENT OF DEFENCE VOTE 21
NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 MARCH 2003 (continued)
2002/03 2001/02 Material items R'000 R'000
Warrant Voucher fraud 613 Warrant Voucher fraud 264 Counterfeit Dollars at Air Force base 186 Theft of State funds 184 Theft of five Warrant Vouchers 180 Theft of State funds 96 Theft of State funds 64 Warrant Voucher fraud 26
11.2 Other material losses written off in income statement in current period
Nature of losses
Sundry losses (91 cases) 7 037 4 334 Legal fees 4 717 5 156 Motor vehicle accidents 2 862 2 337 Legal representation 1 860 3 786 Interest paid 64 571 Other 26 11 Foreign exchange losses - 1 369 16 566 17 564
Material items
Sundry losses Injury due to shooting incident 3 250 Legal representation One person 1 790 Sundry losses Loss of income 995 Sundry losses Loss of support through operational activities 471 Sundry losses Loss of income due to bush fire 454 Sundry losses Settlement: Irregular rental agreement 194
2002-2003 Annual Report 195 Chapter 14
DEPARTMENT OF DEFENCE VOTE 21
NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 MARCH 2003 (continued)
11.3 Other material losses of items expensed in previous periods
Current 2002/03 2001/02 Nature of losses expenditure R’000 R'000 R'000 Military aircraft damages and losses 7 cases 112 106 112 106 - Military vehicles damages and losses 1591 cases 14 461 14 461 15 190 Theft of assets 155 cases 743 743 - Damage to firearms 6 cases 252 252 - Theft of military vehicle 1 case 237 237 75 Loss of firearm accessory 1 case 103 103 - Theft of firearm 1 case 73 73 - Loss of assets 46 cases 71 71 - Damage to buildings and equipment 41 cases 59 59 - Miscellaneous 11 cases 16 16 360 Loss of State funds 1 case 4 4 - Loss of firearm 1 case 1 1 41 Damage to boat system 1 case - - 3 013 Stock discrepancies for ammunition 1 case - - 2 101 Theft of repeater system 1 case - - 54 Loss of computer equipment 1 case - - 39 128 126 128 126 20 873
Material items
Military aircraft damages and losses Loss of Cheetah C military aircraft 106 222 Military aircraft damages and losses Loss of Impala Mk II military aircraft 3 758 Military aircraft damages and losses Loss of Spitfire aircraft 1 221
11.4 Debts written off
Nature of debts written off
Motor vehicle accidents 506 cases 2 972 126 Salary related 983 cases 1 864 202 State guarantees 110 cases 1 142 25 Contractual liabilities 126 cases 629 25 Treatment of private patients 189 cases 485 145 Loss of State property 20 cases 193 - Estates 41 cases 168 - Miscellaneous 23 cases 139 10 Loss of State funds 28 cases 130 387 Other 9 cases 59 - Aviation fuel 9 cases 49 - Suppliers overpaid 9 cases 48 30
196 Department of Defence Chapter 14
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NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 MARCH 2003 (continued)
Nature of debts written off 2002/03 2001/02 R'000 R'000 Deposits 17 cases 44 - Damage to State property 1 case 14 - Interest 2 cases 12 14 Medical costs 8 cases 12 - Debts raised concerning fruitless and 5 cases 10 456 wasteful expenditure Dishonoured cheque 1 case 4 - Civil claim 2 cases 3 - Legal cost 5 cases 2 - Telephone account 1 case 2 - Subsistence and travel 52 cases 1 3 Loss of pistol 1 case 1 - VIP refreshments 3 cases 1 1 Housing subsidy 1 case - 36 Loss of stamps 1 case - 17 7 984 1 477
Material items
Treatment of private patients 190
11.5 Details of special functions (theft and losses)
Per programme
Administration 5 532 6 526 Landward Defence 13 954 7 044 Air Defence 1 724 454 Maritime Defence 433 431 Military Health Support 4 326 4 080 Defence Intelligence 67 196 Joint Support 96 319 Command and Control 74 - 26 206 19 050
2002-2003 Annual Report 197 Chapter 14
DEPARTMENT OF DEFENCE VOTE 21
NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 MARCH 2003 (continued)
12. Unauthorised and fruitless and wasteful expenditure
Note 2002/03 2001/02 R'000 R'000 Unauthorised expenditure 12.2 2 099 1 465 Fruitless and wasteful expenditure 12.4 - 441 2 099 1 906
12.1 Reconciliation of unauthorised expenditure balance
Opening balance 453 273 451 808 Unauthorised expenditure current year 2 099 1 465 Closing balance 455 372 453 273
12.2 Unauthorised expenditure
Incident Disciplinary steps taken/criminal proceedings
No authority for using Legislation is currently under review to include 2 099 1 465 state money to finance military museums to be funded from State funds the military museums
12.3 Reconciliation of fruitless and wasteful expenditure
2002/03 2001/02 R R Opening balance 630 388 189 600 Fruitless and wasteful current year - 440 788 Transfer to Income Statement - authorised losses - - Transfer to receivables for recovery (285) - Closing balance 630 103 630 388
12.4 Fruitless and wasteful expenditure
Incident Disciplinary steps taken/criminal proceedings - Interest payable due to Liability not yet determined 103 late payment of account - Penalties payable due to Liability not yet determined 386 late payment of account - Breach of contract Liability not yet determined - 425 000 Procurement of tyres Liability not yet determined - 15 014 Costs incurred for flight Liability determined. Money to be recovered from 285 rebooking member responsible in the 2002/2003 financial year - 440 788
198 Department of Defence Chapter 14
DEPARTMENT OF DEFENCE VOTE 21
NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 MARCH 2003 (continued)
13. Analysis of surplus
2002/03 2001/02 R'000 R'000 Voted funds to be surrendered to the Revenue Fund 11 032 10 207 Non voted funds Other revenue to be surrendered to the Revenue Fund 352 277 126 601 Total 363 309 136 808
14. Cash and cash equivalents
Cash with commercial banks 19 047 22 155 Cash in transit 658 4 066 Cash on hand 10 834 10 980 30 539 37 201
15. Receivables - current Note Amounts owing by other departments 96 239 96 255 Staff debtors 15.3 23 843 38 129 Other debtors 15.4 64 507 80 418 Advances 15.5 27 044 20 662 211 633 235 464
15.1 Amount of R10 567 394 (2002: R9 278 452) included above may not be recoverable, but has not been written off in the Income Statement.
15.2 Age analysis - receivables current and non-current
Less than one year 57 275 89 669 One to two years 23 826 12 818 More than two years 144 307 132 977 225 408 235 464
One to two years
Material items
Assistance to the Republic of Mozambique during the February/March 2000 flood 2 812 (Operation Lichi) Assistance to the Kingdom of Lesotho (Operation Maluti) 646 Medical evacuation by SAS Outeniqua from Marion Island (Operation Regent) 869 Fire fighting assistance to the Department of Water Affairs and Forestry in Western Cape 275 Contractual liabilities due by ex-member (contractual obligation - studies) 273
2002-2003 Annual Report 199 Chapter 14
DEPARTMENT OF DEFENCE VOTE 21
NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 MARCH 2003 (continued)
More than two years 2002/03 2001/02 R'000 R'000 Material items
Military assistance to the Kingdom of Lesotho during 1998 to 2000 54 938 (Operation Boleas) Cataloguing service for National Treasury 13 514 Logistic support during election to the Republic of Mozambique 7 473 (Operation Lynx) Assistance to the Kingdom of Lesotho (Operation Maluti) 5 697 Service to the Department of Public Works 1 628
15.3 Staff debtors
Salary related 12 381 7 304 Students 3 963 16 938 Motor vehicle accidents 3 285 7 558 Deposits 2 339 2 839 State guarantees 861 1 766 Damage to State property 650 1 359 Loss of State money 362 350 Estates 2 - Fruitless and wasteful expenditure - 14 Sundry losses - 1 23 843 38 129
Material item
Student Contractual obligation with regards to studies 389
200 Department of Defence Chapter 14
DEPARTMENT OF DEFENCE VOTE 21
NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 MARCH 2003 (continued)
15.4 Other debtors
Note 2002/03 2001/02 R'000 R'000 Contractual liabilities 21 111 16 136 Miscellaneous 10 997 12 388 Salary related 10 489 10 927 Motor vehicle accidents 9 301 11 146 Housing loan guarantees 4 113 4 696 Suppliers 3 127 6 853 Private patients 2 184 2 756 Aviation services 1 127 4 934 Estates 820 1 181 Provincial governments and institutions 518 4 170 Loss of State money 474 - Dockyard 132 - Sales per tender 49 - Humanitarian aid 34 316 Medical claims 18 - Fruitless and wasteful expenditure 13 - Loss of State property - 4 915 64 507 80 418
Material items
Miscellaneous Service to the Department of Public Works 1 628 Miscellaneous Part (40%) of civil claim against the Department 932 payable by a third party
15.5 Advances
Nature of prepayments/advances
Subsistence and travel 25 811 19 633 Other 1 233 1 029 27 044 20 662
Material item
Foreign subsistence and travel 282
2002-2003 Annual Report 201 Chapter 14
DEPARTMENT OF DEFENCE VOTE 21
NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 MARCH 2003 (continued)
16. Loans
Granted to Purpose 2002/03 2001/02 R'000 R'000
SA Forces Institute (SAFI) Interest free loan to SAFI. Payments 12 842 12 842 have been rescheduled to commence on 1 April 2003 Employees Subsidised Motor Vehicle Scheme - 252 12 842 13 094 Less amount repayable within 12 1 440 252 months included under current assets 11 402 12 842
16.1 This represents a loan to the South African Forces Institute (SAFI) for the purpose of finance bridging. This loan is unsecured. The interest rate is fixed at 0% per annum and is repayable by March 2007 in annual instalments of 2003/04: Rm1,440 (2004/05: Rm3,600; 2005/06: Rm3,600; 2006/07: Rm4,202) as from April 2003 to March 2007.
17. Receivables - non-current
Description
Students 7 126 Motor vehicle accidents 4 266 State guarantees 945 Salary related 760 Loss of State money 596 Damage to State property 78 Estates 4 13 775
Material items
Loss of State money/property Warrant Voucher fraud 261 Contractual liabilities Ex-member (contractual obligation - studies) 221 Student Contractual obligation with regard to studies 212 Student Contractual obligation with regard to studies 207 Contractual liabilities Ex-member (contractual obligation - studies) 186 Student Contractual obligation with regard to studies 183 Student Contractual obligation with regard to studies 181 Student Contractual obligation with regard to studies 181 Student Contractual obligation with regard to studies 179 Student Contractual obligation with regard to studies 166
202 Department of Defence Chapter 14
DEPARTMENT OF DEFENCE VOTE 21
NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 MARCH 2003 (continued)
18. Voted funds to be surrendered
Notes 2002/03 2001/02 R'000 R'000 Opening balance 10 207 9 947 Transfer from Income Statement 11 032 10 207 Paid during the year (10 207) (9 947) Closing balance 11 032 10 207
19. Revenue funds to be surrendered
Opening balance 7 849 52 675 Transfer from Income Statement for revenue to be surrendered 352 277 126 601 Paid during the year (163 882) (171 427) Closing balance 196 244 7 849
20. Bank overdraft
Paymaster-General Account 416 628 603 167
21. Payables - current
Description Note
Amounts owing to other departments - 15 628 Advances received 21.1 397 1 002 Other payables 21.2 16 256 22 664 16 653 39 294
21.1 Advances received
Deposits received to use Naval facilities 397 1 002
21.2 Other payables
Other 6 336 7 941 Housing loan guarantees 6 052 4 279 Unclaimed salaries 3 868 4 557 Salary tax - 5 887 16 256 22 664
2002-2003 Annual Report 203 Chapter 14
DEPARTMENT OF DEFENCE VOTE 21
NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 MARCH 2003 (continued)
22. Amounts owing to controlled entities
Note 2002/03 2001/02 R'000 R'000 Total amounts owing to controlled entities Annexure 2B - 6 182
23. Net cash flow generated by operating activities
Net surplus as per Income Statement 363 309 136 808
Adjusted for items separately disclosed Proceeds from sale of equipment (173 366) - Capital expenditure on professional and special services 8.2 53 209 71 767 Net cash flow generated by operating activities 243 152 208 575
24. Cash utilised to decrease working capital
Decrease/(increase) in receivables - current 21 733 (773) Increase in receivables - non-current (13 775) - Decrease in payables ( 6 408) (33 534) (Decrease)/increase in other current liabilities (11 145) 29 638 (9 595) (4 669)
25. Voted funds and Revenue funds surrendered
Voted funds surrendered 10 207 9 947 Revenue funds surrendered 163 882 171 427 174 089 181 374
204 Department of Defence Chapter 14
DEPARTMENT OF DEFENCE VOTE 21
DISCLOSURE NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 MARCH 2003
These amounts are not recognised in the financial statements, and are disclosed to enhance the usefulness of the financial statements and to comply with the statutory requirements of the Public Finance Management Act, Act 1 of 1999 (as amend- ed by Act 29 of 1999), the Treasury Regulations for Departments and Constitutional Institutions issued in terms of the Act and the Division of Revenue Act, Act 5 of 2002.
26. Contingent liabilities
Nature Note 2002/03 2001/02 Liable to R'000 R'000
Claims Legal 1 965 541 2 096 752 Housing loan guarantees Employees Annexure 3 114 442 122 484 Leave Employees 1 366 056 1 025 965 Contract amendments Modification and 1 327 - replacement of equipment Motor vehicle guarantees Employees Annexure 3 536 989 3 447 902 3 246 190
27. Commitments
Current expenditure
Approved and contracted/ordered 503 989 1 508 290 Approved but not yet contracted 474 284 160 097 Total commitments 978 273 1 668 387
28. Accruals
28.1 Listed by standard item
Administrative 191 896 Inventories 3 345 22 002 Equipment 69 9 807 Professional and special services 2 417 2 063 6 022 34 768
2002-2003 Annual Report 205 Chapter 14
DEPARTMENT OF DEFENCE VOTE 21
DISCLOSURE NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 MARCH 2003 (continued)
28.2 Listed by programme level
2002/03 2001/02 R'000 R'000 Administrative 1 1 115 Landward Defence 386 4 447 Air Defence 58 17 969 Maritime Defence 148 1 511 Military Health Support 5 362 6 852 Joint Support - 507 Command and Control 67 2 367 6 022 34 768
28.3 Amount of understatement could not be quantified.
29. Leases
29.1 Unable to provide information accurately.
30. Employee benefits
Note Thirteenth cheque 212 384 97 916 Performance bonus 85 228 49 800 Leave entitlement 30.1 4 056 - 301 668 147 716
30.1 Leave entitlement disclosure for the first time.
31. Receivables for services delivered
Nature of services
Medical services 1 069 Aviation services 612 Services rendered to private institutions 283 Services rendered to private patients 211 Dockyard services 105 VIP catering services 20 2 300
Material item Vetinarian services delivered to the Department of Safety and Security. 169
Note: Amounts of R344 937,99 included in above may not be recoverable.
206 Department of Defence Chapter 14
DEPARTMENT OF DEFENCE VOTE 21
DISCLOSURE NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 MARCH 2003 (continued)
32. Irregular expenditure
32.1 Reconciliation of irregular expenditure
Note 2002/03 2001/02 R'000 R'000 Opening balance - - Irregular expenditure - current year 858 1 557 Expenditure condoned (770) - Expenditure not condoned 32.2 (88) (1 557) Expenditure awaiting condonement - -
Analysis Current - - Prior years - - - -
32.2 Not condoned expenditure
Incident Disciplinary steps taken/ criminal proceedings Payments to members of the Civic Investigation determined that no official 88 - Education Monitoring and Advisory could be held accountable Committee (CEMAC) Irregular hiring of photocopiers. Outcome of court case is awaited - 1 557 Contracts concluded after processing price quotations instead of tenders 88 1 557
33. Key management personnel
33.1 Remuneration
Minister of Defence 774 728 Deputy Minister of Defence 572 535 Secretary for Defence (Accounting Officer) 769 722 Chief of the National Defence Force 772 715 Key management personnel of the Plenary Defence Staff Council 9 109 8 530 11 996 11 230
33.1 Previous year figure was calculated incorrectly and consequently restated.
2002-2003 Annual Report 207 Chapter 14
DEPARTMENT OF DEFENCE VOTE 21
DISCLOSURE NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 MARCH 2003 (continued)
33.2 Other remuneration and compensation provided to key management
Note 2002/03 2001/02 R'000 R'000 Minister of Defence 30 25 Deputy Minister of Defence 15 41 Secretary for Defence (Accounting Officer) 50 35 Chief of the National Defence Force 45 41 Key management personnel of the Plenary Defence Staff Council 235 198 375 340
34. Gifts, donations and sponsorships Nature of gift, donation or sponsorship
34.1 Unable to provide.
35. Biological/cultivated assets
Biological/Cultivated assets on hand
Horses 657 horses 66 Dogs 379 dogs 9 75
35.1 The amount disclosed is not a fair presentation of the value of the horses and dogs.
208 Department of Defence Chapter 14
DEPARTMENT OF DEFENCE VOTE 21
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 MARCH 2003
ANNEXURE 1
STATEMENT OF TRANSFERS TO PUBLIC ENTITIES AND INSTITUTIONS BY NATIONAL DEPARTMENTS AS AT 31 MARCH 2003
TRANSFER ALLOCATION EXPENDITURE NAME OF PUBLIC Appropri- Adjust- Roll- Total Actual Amount % of Capital Current ENTITY/INSTITUTION ation ments Overs Available Transfer not Trans- Available Act Estimate (1) ferred Trans- R'000 R'000 R'000 R'000 R'000 R'000 ferred R'000 R'000 Armaments Corporation of South Africa Ltd. 209 441 - - 209 441 209 441 - 100 - 209 441
St Johns Ambulance Brigade 95 - - 95 36 59 38 - 36
SA First-Aid League 95 - - 95 - 95 - - -
Medical Fund 700 - - 700 274 426 39 - 274
Reserve Force Council (Previously the Part Time Force Council) 1 938 - - 1 938 1 938 - 100 - 1 938
Defence, Intelligence, Diplomacy and Trade Education and Training Authority (DIDTETA) 5 400 - - 5 400 5 317 83 98 - 5 317
Province of the Northern Cape: Department of Housing and Local Government - 3 400 - 3 400 3 400 - 100 - 3 400
Special Defence Account 7 625 457 160 775 - 7 786 232 7 786 232 - 100 - 7 786 232
7 843 126 164 175 - 8 007 301 8 006 638 663 - 8 006 638
2002-2003 Annual Report 209 Chapter 14 Chapter 13
DEPARTMENT OF DEFENCE VOTE 21
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 MARCH 2003 (continued)
ANNEXURE 1
STATEMENT OF TRANSFERS TO PUBLIC ENTITIES AND INSTITUTIONS BY NATIONAL DEPARTMENTS AS AT 31 MARCH 2003
(1) Explain reasons for underspending, should this be less than 90 percent, what corrective steps were taken, mention early warning report on corrective steps as a result, and whether or not an application has been made for a roll over.
Public entity/Institution Reason for underspending Corrective steps St Johns Ambulance Budget provision was made according to the The budget provision for the financial year 2003/04 has Brigade amount approved by the Accounting Officer. been decreased to R45 000 which is more in line with The institution did, however, not request the full previous expenditure. No application for a roll-over has amount, which they were entitled to. been made.
SA First-Aid League Budget provision was made according to the The budget provision for the financial year 2003/04 has amount approved by the Accounting Officer. been decreased to R35 000 which is more in line with The institution did, however, not request the full previous expenditure. No application for a roll-over has amount, which they were entitled to. been made.
Medical Fund Budget provision was not adjusted in time The budget provision for the financial year 2003/04 has according to the number of members remaining been decreased to R250 000 which is more in line with in the Fund. the number of members in the Fund and with previous expenditure. No application for a roll-over has been made.
210 Department of Defence Chapter 14
DEPARTMENT OF DEFENCE VOTE 21
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 MARCH 2003
ANNEXURE 2B
STATEMENT OF OTHER CONTROLLED ENTITIES AS AT 31 MARCH 2003
Name of Entity Nature of Relevant Entity's PFMA Amounts owing to Amounts owing by Audit entities Act Schedule type R'000 Report business (state year end Status if not 31 March) 2002/03 2001/02 2002/03 2001/02 U/Q/A/D Trading Account To purchase, Exchequer Not listed - 6 182 - - U for Medical Stock distribute and and Audit Act, stockpile 1975 (Act No. strategic med- 66 of 1975) ical inventory Section 11a in trading agreements with various National Departments - 6 182 - -
2002-2003 Annual Report 211 Chapter 14
DEPARTMENT OF VOTE
ANNEXURES TO THE ANNUAL for the year ended
ANNEXURE 2A
STATEMENT OF INVESTMENTS IN AND AMOUNT OWING BY/TO CONTROLLED/PUBLIC ENTITIES AS AT 31 MARCH 2003
Name of Public Nature of Public Relevant Act Entity's % Number of shares Cost of Entity Entities business PFMA Held held investment Schedule R'000 type 2002/03 2001/02 2002/03 2001/02
Castle Control To preserve and pro- Castle 3 - - - - - Board tect the military and Management (under control of cultural heritage of the Act, 1993 (Act the Minister of Castle; optimise the No. 207 of Defence) tourism potential of the 1993). Castle; and maximise the accessibility to the public of the whole or any part, as the case may be, of the Castle which is not used by the SANDF, or any part thereof.
Armaments To acquire defence Armaments 2 100 75 000 000 75 000 000 75 000 75 000 Corporation of products, mainly for Development (Issued to (Issued to South Africa the SANDF, and co- and the Presi- the Presi- (managed and manage, with the Production dent of the dent of the controlled by a SANDF, the develop- Act, 1968 (Act Republic of Republic of Board of ment of technologies No. 37 of South Africa South Africa Directors for future weapon sys- 1968 as and in cus- and in cus- appointed by the tems and products and amended). tody at the tody at the Minister of also to manages the Department Department Defence). disposal of excess, for- of Defence) of Defence) feited, redundant, or surplus defence mate- rial for the SANDF and the subsidy companies which directly support technology and acqui- sition strategies. 75 000 75 000
Note*: Figures not yet audited
212 Department of Defence Chapter 14
DEFENCE 21
FINANCIAL STATEMENTS 31 MARCH 2003
ANNEXURE 2A (continued)
STATEMENT OF OTHER CONTROLLED ENTITIES AS AT 31 MARCH 2003
Profit(Loss) Are the Amount of Amount owing Amount owing AO Value Audit for the year losses losses to Entity by Entity of Invest- Report R'000 guaran- guaranteed R'000 R'000 ment Status 2002/03 2001/02 teed R'000 2002/03 2001/02 2002/03 2001/02 R'000 U/Q/A/D
664* 387 No ------Q 2001/2002
30 995* 13 400 No - - - 1 188 1 619 75 000 U (Group) (Group) 2001/2002
31 666 13 787 - - - 1 188 1 619 75 000
2002-2003 Annual Report 213 Chapter 14
DEPARTMENT OF DEFENCE VOTE 21
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 MARCH 2003
ANNEXURE 3
STATEMENT OF FINANCIAL GUARANTEES ISSUED AS AT 31 MARCH 2003
DOMESTIC
Guaranteed Institution Guarantee in Original Opening Guarantees Guarantees Guaranteed Closing Realised respect of Guaranteed balance as issued released interest out- balance losses capital at 1 April during the during the standing as 31 March i.r.o. amount 2002 year year at 31 March 2003 claims 2003 paid out R'000 R'000 R'000 R'000 R'000 R'000 R'000 Stannic Motor vehicles 2 087 989 - 453 - 536 - ABSA Home loans - 32 695 - 1 382 - 31 313 233 African Bank Home loans - 1 145 - 47 - 1 098 - BOE Bank Home loans - 515 - 145 - 370 - Business Partners Home loans - 6 - - - 6 - Cape of Good Hope Bank Home loans - 147 - 21 - 126 - Cash Bank Home loans - 2 064 55 24 - 2 095 - Ciskei Peoples Home loans - 5 - - - 5 - Development Bank Community Bank Home loans - - 46 - - 46 - First National/First Rand Home loans - 30 880 - 9 332 - 21 548 421 Bank Free State Development Home loans - 49 323 - - 372 - Corporation Grahamstown Building Home loans - 79 - - - 79 - Society Greenstart Home Loans Home loans - 188 718 - - 906 - Ithala Development Home loans - 309 - 36 - 273 - Finance Corporation Khayalethu Home Loans Home loans - 27 - - - 27 - Mamelodi Town Council Home loans - 14 - 14 - - - Mpumalanga Building Home loans - 13 - - - 13 - Society National Building Society Home loans - 6 583 - 3 079 - 3 504 179 Nedbank Home loans - 5 398 669 16 - 6 051 186 Perm/Peoples Bank Home loans - 17 955 3 186 - - 21 141 29 Northern Province Home loans - 9 - - - 9 - Development Corporation Old Mutual Bank Home loans - 11 326 675 28 - 11 973 - SA Development Home loans - 18 - - - 18 - Corporation Ltd SA Home Loans Home loans - 21 8 - - 29 - South Fin Home loans - - 267 - - 267 - Standard Bank Home loans - 12 596 242 125 - 12 713 94 Transkei National Building Home loans - 12 - 12 - - - Society Unibank Home loans - 46 - 46 - - - Venda Building Society Home loans - 372 76 - - 448 - Venda National Home loans - 12 - - - 12 - Development Corporation Total 2 087 123 473 6 265 14 760 - 114 978 1 142
214 Department of Defence Chapter 14
DEPARTMENT OF DEFENCE VOTE 21
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 MARCH 2003
ANNEXURE 4
PHYSICAL ASSET MOVEMENT SCHEDULE (Not including inventories)
PHYSICAL ASSETS ACQUIRED DURING Opening Additions Disposals Transfers Transfers Closing FINANCIAL YEAR 2002/03 Balance In Out Balance R'000 R'000 R'000 R'000 R'000 R'000 LAND AND BUILDINGS Land Dwellings Information cannot be provided, refer to Non-residential buildings Management Report. Investment properties Other structures (Infrastructure assets) Mineral & similar non regenerative resources Capital work in progress Heritage assets
MACHINERY AND EQUIPMENT Computer equipment Furniture and office equipment Information cannot be provided, refer to Other machinery and equipment Management Report. Specialised military assets Transport assets
PHYSICAL ASSETS ACQUIRED DURING Opening Additions Disposals Transfers Transfers Closing FINANCIAL YEAR 2001/02 Balance In Out Balance R'000 R'000 R'000 R'000 R'000 R'000 LAND AND BUILDINGS Land Dwellings Information cannot be provided, refer to Non-residential buildings Management Report. Investment properties Other structures (Infrastructure assets) Mineral & similar non regenerative resources Capital work in progress Heritage assets
MACHINERY AND EQUIPMENT Computer equipment Furniture and office equipment Information cannot be provided, refer to Other machinery and equipment Management Report. Specialised military assets Transport assets
2002-2003 Annual Report 215 Chapter 14
DEPARTMENT OF DEFENCE VOTE 21
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 MARCH 2003
ANNEXURE 5
INTANGIBLE ASSET MOVEMENT SCHEDULE (Not including inventories)
INTANGIBLE ASSETS ACQUIRED DURING Opening Additions Disposals Transfers Transfers Closing FINANCIAL YEAR 2002/03 Balance In Out Balance R'000 R'000 R'000 R'000 R'000 R'000 Patents, Copyrights, brand names & trademarks Computer software Airport landing rights Information cannot be provided, refer to Import/export licences Management Report. Fishing Quotas Utility rights Mineral extraction rights Capitalised development costs
INTANGIBLE ASSETS ACQUIRED DURING Opening Additions Disposals Transfers Transfers Closing FINANCIAL YEAR 2001/02 Balance In Out Balance R'000 R'000 R'000 R'000 R'000 R'000 Patents, Copyrights, brand names & trademarks Computer software Airport landing rights Information cannot be provided, refer to Import/export licences Management Report. Fishing Quotas Utility rights Mineral extraction rights Capitalised development costs
216 Department of Defence Chapter 15
REPORT OF THE AUDITOR-GENERAL TO PARLIAMENT ON THE FINANCIAL STATEMENTS OF THE SPECIAL DEFENCE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2003
1. INTRODUCTION 2. AUDIT ASSIGNMENT
The Special Defence Ac- The financial statements as count (SDA) was instituted in set out on pages 218 to 227, terms of section 1 of the for the year ended Defence Special Account 31 March 2003, have been Act, 1974 (Act No. 6 of 1974), audited in terms of section to defray the expenditure and 188 of the Constitution of the purchases incurred for spe- Republic of South Africa, cial defence activities as 1996 (Act No. 108 of 1996), approved from time to time read with sections 3 and 5 of by the Ministers of Finance the Auditor-General Act, and Defence. Income is 1995 (Act No. 12 of 1995) derived mainly from interest and section 5 of the Defence received and proceeds from Special Account Act, 1974 the sale of armament, in (Act No. 6 of 1974). These addition to the amount allo- financial statements, the cated annually from the vote. maintenance of effective con- trol measures and compli- The largest part of the SDA's ance with relevant laws and expenditure, namely regulations are the responsi- R6 150 901 000 (2001-02: bility of the Accounting R7 880 050 000), was incur- Officer. My responsibility is red by Armscor, while the to express an opinion on balance of R238 507 000 these financial statements, (2001-02: R84 979 000) was based on the audit. incurred and administered by the Department of Defence 3. NATURE AND SCOPE (DOD). The Chief Executive Officer of Armscor and the 3.1 Audit of financial state- Secretary for Defence, ments respectively, are account- able. The audit was conducted in
2002-2003 Auditor-General Report 217 Chapter 15
accordance with Statements at 31 March 2003 and the total liabilities exceeded its of South African Auditing results of its operations and total assets by R228 031 Standards. Those standards cash flows for the year then 000. This was mainly due to require that I plan and per- ended, in accordance with the provisions made for the form the audit to obtain rea- prescribed accounting prac- Strategic Defence Packages sonable assurance that the tice. (SDP’s) as reflected in note 6 financial statements are free to the financial statements: of material misstatement. 5. EMPHASIS OF Creditors. The provisions will MATTER be funded from the 2003-04 An audit includes: voted funds as approved by examining, on a test Without qualifying the audit Parliament on 21 February basis, evidence support- opinion expressed above, 2003. ing the amounts and dis- attention is drawn to the fol- closures in the financial lowing matters: 5.1.3 Compliance programme statements, assessing the accounting 5.1 Matters affecting the finan- As reflected in note 6 to the principles used and sig- cial statements financial statements, the bal- nificant estimates made ance in respect of the compli- by management, and 5.1.1 Bank account ance programme amounting evaluating the overall to R14 041 000 (2001-02: financial statement pres- For the year under review the R14 041 000), has been entation. SDA still did not have a bank recorded as creditors. The account of its own, but compliance programme was Furthermore, an audit in- shared one Paymaster-Gen- established in accordance cludes an examination, on a eral Account with the General with agreements between the test basis, of evidence sup- Defence Account. However, government of the United porting compliance in all the DOD responded positive- States of America (USA) and material respects with the rel- ly to the Standing Committee the government of the evant laws and regulations on Public Accounts Republic of South Africa which came to my attention (SCOPA), recommendation (RSA), after fines had been and are applicable to finan- in this regard, and imple- awarded in favour of the USA cial matters. mented a separate subledger as a result of legal actions account for the SDA on the instituted against Armscor, I believe that the audit pro- Financial Management Sys- Kentron (Pty) Ltd and Fuchs vides a reasonable basis for tem as from 1 April 2003. Electronics (Pty) Ltd by the my opinion. USA. The aforementioned The balance in the bank entities were indicted by the 3.2 Level of audit assurance account amounting to USA as a result of acts aris- R1 011 600 000 (2001-02: ing from illegal use of USA Owing to the nature of certain R429 154 000) was therefore technology and criminal and transactions, the circum- not readily determinable and civil fines were imposed on stances in which they are it is calculated as a balancing them. In terms of these incurred and recorded, as figure on the balance sheet. agreements the civil fines well as the circumstances in This impacts on the control imposed would be made which assets and services measures and verification available to the RSA for the are procured and utilised procedures of the bank bal- mentioned programme, within the sensitive projects, ances. which would be administered the level of audit assurance is by the government of the lower than is normally the 5.1.2 Growing concern RSA. case with ordinary audits. I draw attention to the finan- During the year under review 4. AUDIT OPINION cial statements which indi- a constitution was drafted to cate that, although the SDA establish a fund known as In my opinion, the financial made a net profit of "The Arms Control and Non- statements fairly present, in R1 460 138 000 during the Proliferation Fund all material respects, the year ended 31 March 2003, Committee" (the fund). The financial position of the SDA as at that date, the SDA's fund was to replace the com-
218 Department of Defence Chapter 15
pliance programme and er, satisfied that, prima facie, by the Office of Serious would consist of the unex- proper management Economic Offences and in pended portion of penalty processes were in operation terms of section 5(12) of fines paid to the USA (R14 to manage, control and Investigation of Serious 041 000 as at 31 March authorise the aforementioned Economic Offences Act, 2003). disposals. This office will 1991 (Act No. 117 of 1991), monitor the process and, if as well as all other relevant We raised various matters necessary, report on it in the information at his disposal, with the DOD pertaining to 2003-04 financial year. he has decided not to insti- the draft constitution govern- tute any criminal proceedings ing the fund. As this constitu- 5.2 Matters not affecting the in this matter. tion was not finalised/ financial statements approved at the time of writ- 5.2.3 Purchasing of training air- ing this report, the aforemen- 5.2.1 Strategic Defence craft tioned matters will be fol- Procurement Packages lowed up during the 2003-04 With reference to par. 5.2.3 financial year and, if neces- The Joint Investigation on page 184 of my previous sary, I will report on it in due Report into the Strategic report, the Directorate of course. Defence Procurement Pack- Special Operations Gauteng ages dated 14 November indicated that a report with 5.1.4 Sensitive projects 2001 [RP 184/2001] was the investigation team's final tabled in Parliament on 14 recommendations had been The total expenditure of a November 2001. The depart- forwarded to the Director: sensitive nature, which totals ment has reacted positively Special Operations. A deci- R41 359 000 for 2002-03 to the re-commendations sion was however still being (2001-02: R39 518 000), was made by the Joint Investiga- awaited. subjected to an audit for the tion Team (JIT) and is in the year under review. process of taking corrective 6. APPRECIATION steps. The effect of the imple- The closing-down process of mentation of the JIT recom- The assistance rendered by one of the projects, as report- mendations will be further fol- the staff of the DOD and ed in par. 5.1.5 on page 184 lowed up during the 2003-04 Armscor during the audit is of my previous report, is not audit. sincerely appreciated. yet finalised. Owing to the complex technical nature of 5.2.2 Commission paid during some of the items disposed the sale of Puma helicop- off, the sensitivity of the proj- ters ects and the associated security requirements, it was With reference to par. 5.2.2 not possible to determine on page 184 of my previous S A FAKIE whether the amounts negoti- report, the Director of Public Auditor-General ated upon disposal of the Prosecutions indicated that items concerned were rea- after careful consideration of Pretoria sonable. The office is howev- the record of the enquiry held 17 July 2003
2002-2003 Auditor-General Report 219 Chapter 16
SPECIAL DEFENCE ACCOUNT
BALANCE SHEET AS AT 31 MARCH 2003
Note 2002/03 2001/02 R'000 R'000
ASSETS
Current assets 1 626 066 467 239
Advances 2 18 071 13 386
Trade and other receivables 3 596 302 24 616
Cash and cash equivalents 4 1 011 600 429 154
Investment 5 93 83
Total assets 1 626 066 467 239
EQUITY AND LIABILITIES
Equity
Reserves (228 031) (1688 169)
Current liabilities
Creditors 6 1 854 097 2 155 408
Total equity and liabilities 1 626 066 467 239
220 Department of Defence Chapter 16
SPECIAL DEFENCE ACCOUNT
INCOME STATEMENT FOR THE YEAR ENDED 31 MARCH 2003
Note 2002/03 2001/02 R'000 R'000
Revenue 7 849 546 5 864 471
Transfer from Vote 21 7 786 232 5 830 075
Other revenue 7 63 304 34 389
Interest received 10 7
Less: Expenditure 8 6 389 408 7 965 029
Net profit/(loss) for the period 1 460 138 (2 100 558)
2002-2003 Annual Report 221 Chapter 16
SPECIAL DEFENCE ACCOUNT
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MARCH 2003
Note 2002/03 2001/02 R'000 R'000
Accumulated Accumulated income income
Balance at the beginning of period (1 688 169) 412 389
Net profit/(loss) for the period 1 460 138 (2 100 558)
Balance at the end of period (228 031) (1 688 169)
222 Department of Defence Chapter 16
SPECIAL DEFENCE ACCOUNT
CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2003
Note 2002/03 2001/02 R'000 R'000
Cash flows from operating activities
Net profit/(loss) 1 460 138 (2 100 558) Adjustment for investment income (10) (7) Operating profit/(loss) before working capital changes 1 460 128 (2 100 565) Working capital changes (877 682) 2 090 512 (Increase)/decrease in trade and other receivables (571 686) 32 860 (Increase)/decrease in disallowances - 1 796 Increase in advances (4 685) (3 933) (Decrease)/increase in creditors (301 311) 2 059 789
Cash generated from operations 582 446 (10 053) Interest received 10 7 Net cash flow from operating activities 582 456 (10 046)
Cash flows from investing activities
Investment (10) (7) Net cash outflow from investing activities (10) (7)
Net increase/(decrease) in cash and cash equivalents 582 446 (10 053) Cash and cash equivalents at beginning of the year 429 154 439 207 Cash and cash equivalents at end of the year 4 1 011 600 429 154
2002-2003 Annual Report 223 Chapter 16
SPECIAL DEFENCE ACCOUNT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2003
1. Accounting policy
The Ministers of Defence and Finance approve an annual budget in accordance with the provisions of the Defence Special Account Act, 1974 (Act No. 6 of 1974), whereafter the budgeted amount is dealt with as a transfer payment from Vote 21 - Defence to the Special Defence Account. The actual expenditure is reflected in the financial state- ments.
The financial statements are prepared on the historical cost basis. The following are the principle accounting poli- cies used by the Special Defence Account, which are consistent with those of the previous year.
1.1 Underlying assumption
The financial statements are prepared on the accrual basis.
1.2 Fixed assets
For purposes of the Special Defence Account, assets purchased are written off when they are paid for. The cost is brought to account as expenditure and the assets are included in the asset register of the Department.
1.3 Foreign exchange
Transactions in foreign currency are translated at the rates of exchange ruling at transaction dates. Monetary assets and liabilities are translated at the rates of exchange ruling at balance sheet date.
1.4 Comparatives
Where necessary, comparatives' figures have been adjusted to conform with changes in presentation in the current year.
2002/03 2001/02 R'000 R'000 2. Advances 18 071 13 386
National Defence Force Projects 11 154 4 821 Strategic Defence Packages S&T advances 3 662 8 565 Defence Material Disposal Project 3 255 -
224 Department of Defence Chapter 16
SPECIAL DEFENCE ACCOUNT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2003 (continued)
2002/03 2001/02 R'000 R'000 3. Trade and other receivables 596 302 24 616
Trade debtors 565 336 3 857 Joint Operations 30 955 20 666 Suspense account 11 93
3.1 Included in Trade debtors is an amount of R544 309 464 owed by National Treasury for the unspent portion of the Strategic Defence Package foreign component.
4. Cash and cash equivalents
Paymaster-General Account 1 011 600 429 154
5. Investment
Corporation for Public Deposits 93 83
6. Creditors 1 854 097 2 155 408
Compliance programme as per agreement between 14 041 14 041 the USA and SA Governments Opening balance at beginning of year 14 041 14 065 Expenditure for the year under review - ( 24) Contract fines 4 150 2 723 Revenue payable to National Revenue Fund 202 111 160 775 Trade creditors 292 649 8 063 Provision for Strategic Defence Packages 1 341 146 1 969 806
6.1 Included in the provision of R1 341 145 773 for Strategic Defence Packages is EUR 97 656 914 and GBP 13 798 758 equaling R1 017 258 619. This amount relates to invoices and goods received prior to 31 March 2003 in respect of Strategic Defence Packages (ECA loans). The amount is contractually payable in the 2003/04 financial year and will be funded from the 2003/04 Vote and reserves. No forward cover was utilised.
2002-2003 Annual Report 225 Chapter 16
SPECIAL DEFENCE ACCOUNT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2003 (continued)
2002/03 2001/02 R'000 R'000 7. Other revenue 63 304 34 389
Other revenue 265 415 195 164 Sales of strategic equipment for the Department 237 529 125 425 Marketing support 515 260 Contract recoveries - 26 Sensitive projects 10 289 7 271 Foreign exchange profit foreign banks - 3 Foreign exchange profit on sales 17 008 - Foreign exchange profit Strategic Defence Packages - 59 004 Sundry 74 3 175
Less: Payable to National Revenue Fund (202 111) (160 775)
8. Expenditure 6 389 408 7 965 029
Major projects 5 925 163 7 440 814 Other projects 229 762 289 704 Landward Defence 2 863 9 482 Air Defence 9 464 49 267 Maritime Defence - 805 Command and Control 220 - Technology 217 215 - Other projects - 230 150 Operating projects 187 138 194 140 Sensitive projects 41 359 39 518 Irrecoverable debt written off 2 083 1 088 Foreign exchange loss on foreign banks 189 - Provision for write down of foreign banks 3 714 (235)
8.1 General expenditure such as auditor's remuneration is included in the General Defence Account.
8.2 Included in Major projects are foreign exchange profits/losses on foreign currency denominated projects. The net foreign exchange profits/losses on these project payments are calculated by using the order date as the transac- tion date. The net foreign exchange profits/losses for these specific payments amounts to R1 873 780 734. This net amount is applicable to more than one financial year.
226 Department of Defence Chapter 16
SPECIAL DEFENCE ACCOUNT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2003 (continued)
2002/03 2001/02 R'000 R'000 9. Estimated future expenditure approved by Armscor 23 247 940 30 942 285
Strategic Defence Packages capital commitment 20 044 868 29 344 899 3 203 072 1 597 386 Commitments in respect of contracts entered into 2 430 374 1 002 564 Approved, but contracts not yet entered into 772 698 594 822
9.1 The amount relating to Strategic Defence Packages capital commitment represents the capital amount at pre- vailing exchange rates at year end, but excludes escalation and other additional costs (eg. Finance costs). Included in the amount of R20 044 868 283 is a foreign component of EUR 601 791 854, USD 481 731 660, GBP 393 937 624 and SEK 4 699 212 191. No forward cover was utilised. Prior year comparitives restated to exclude General Defence Vote funds.
9.2 It is intended to finance expenditure from future voted funds and from working capital generated within the Special Defence Account.
10. Post Balance Sheet Event Revenue Payable to National Revenue Fund
National Treasury has approved that the revenue surrendered, as disclosed in note 7, in the 2002/2003 finan- cial year will be refunded in the 2003/2004 financial year.
2002-2003 Annual Report 227 Chapter 7
LIST OF ABBREVIATIONS AND ACRONYMS
AA Affirmative Action ABET Adult-Based Education and Training AECC Army Evaluation and Budgeting Committee ACC Army Command Cadre ACTC Army Combat Training Centre AFB Air Force Base AFCP OPS Air Force Command Post Operations AIDS Acquired Immune Deficiency Syndrome AMHF Area Military Health Formation AMHU Area Military Health Unit AOT Administrative Operational and Technical APF Army Planning Forum APLA Azanian People's Liberation Army Art Artillery ASB Accounting Standards Board ASRL Air Sea Rescue Launches ASU Air Service Unit ATES Artillery Target Engagement System AWOL Absent without Leave BCARI Barcode Assisted Receipts and Issues BMATT British Military Advisory and Training Team Bn Battalion Bty Battery C Acq Chief of Acquisition C Log Chief of Logistics CALMIS Computer Aided Logistic Management Information Systems CAT Centre for Advanced Training CC Command and Control CCS Chief of Corporate Staff CDI Chief of Defence Intelligence CEAB Civic Education Advisory Board CFO Chief Finance Officer CFS Central Flying School CHIETA Chemical Industries Education and Training Authority CHRS Chief of Human Resources Support CI Counter Intelligence CIOMR Confederatio Internallie des Officiers Medicaux des Reserves CJ Ops Chief of Joint Operations CJ Sup Chief of Joint Support CJ Trg Chief of Joint Training CMC Crisis Management Centre CMI Command and Management Information COD Council of Defence COLET College for Educational Technology COTS Commercial off-the-Shelf CORE Code of Remuneration Coy Company CPP Chief of Policy and Planning CRUS Combat Ready User System CTC Collection Task Committee
228 Department of Defence Chapter 7
DAPD Departmental Acquisition and Procurement Division DDFR Directorate Defence Foreign Relations DDIP/IDIP Direct and Indirect Defence Industrial Participation DEAT Department of Environmental Affairs and Tourism DEOMI Defence Equal Opportunities Management Institute DFA Department of Foreign Affairs DI Defence Intelligence DIDETA Diplomacy, Intelligence, Defence and Trade Education and Training Authority DIL Directorate Intelligence Liaison DIMS Depot Information Management System DIO Deputy Information Officer DISC Defence Intelligence Standing Committee DKB SAS DRAKENSBERG DOD Department of Defence DOE Department of Education DPBEC Defence Programme and Budget Evaluation Committee DPF Defence Planning Forum DPSA Department of Public Service Administration DPW Department of Public Works DRC Democratic Republic of the Congo DSC Defence Staff Council DSV Diving Support Vessel EEZ Exclusive Economic Zone EIP Employer Initiated Packages EIR Employer Initiated Retrenchment Engr Engineer EO Equal Opportunities ESACC European South African Corvette Consortium ESCOM Electricity Supply Commission ETD Education, Training and Development EU European Union EW Electronic Warfare EWCOP Early Warning Centre for the Office of the President FAS Functional Application Support FASC Financial Accounting Service Centre FD Force Design Fmn Formation FMS Financial Management System FSE Force Structure Element FY Financial Year GSB General Support Base HBP Harbour Patrol Boat HIV Human Immunity Virus HPB Harbour Patrol Boats HR Human Resources HRD Human Resources Development ICBL International Campaign to Ban Landmines ICMM International Congress of Military Medicine ICRC International Commission of the Red Cross ICSS Information and Communication Systems Security ICT Information and Communication Technology ILS Integrated Logistic Support IMET International Military Exchange Training Programme IMT Institute of Maritime Technology Inf Infantry IP Industrial Participation IRPS International Relations Peace and Security
2002-2003 Annual Report 229 Chapter 7
ISDSC Inter-State Defence and Security Committee IWG Inter-Departmental Workgroup JARIC Joint Air Reconnaissance and Intelligence Centre LIMS Logistic Information Management Systems LMS Logistic Management Support LWT Light Workshops Troop MA Military Attaché/Advisor MAB Military Arbitration Board Maint Maintenance MBC Military Bargaining Council MCM Mine Countermeasures MCMV Mine Countermeasures Vessel MDC Military Disciplinary Code Mech Mechanised MILOBS Military Observers MISS Minimum Information Security Standards MK Umkhonto seSizwe MLO Military Liaison Officer MME Main Medical Equipment Mot Motorised MOU Memorandum of Understanding MPA Military Police Agency MS Military Strategy MSA Military Strategy Appreciation MTEF Medium Term Expenditure Framework MTT Mobile Training Team NATO North Atlantic Treaty Organisation NEPAD New Partnership for Africa's Development NCO Non-Commissioned Officer NCS National Codification System NGO Non-Government Organisations NIA National Intelligence Agency NICOC National Intelligence Co-ordinating Committee nm Nautical Mile NOCPM National Office for Coordination of Peace Missions NST Naval Staff Target OAS Order Administration System OMC Ordered Minimum Commitment OPCI Operational Counter Intelligence OSBL Operational Support Base Line OSIS Operational Support Information System OTQ SAS OUTENIQUA PAIA Promotion of Access to Information Act Para Parachute Persol Personeel Soldy Stelsel PDSC Plenary Defence Staff Council PFMA Public Finance Management Act of 1999 Pl Platoon PPP Public Private Partnership PRC People's Republic of China PRO SAS PROTEA PSAP Public Service Act Personnel PSO Peace Support Operations PSR Public Service Regulations RAF Royal Air Force RDLV Rapid Development Logistical Vehicles Reg F Regular Force
230 Department of Defence Chapter 7
Regt Regiment Res F Reserve Force RFI Requirements for Information RJTF Regional Joint Task Force RSA Republic of South Africa SAAF South African Air Force SADC Southern African Development Community SAIHC Southern Africa and Islands Hydrographic Commission SAMHS South African Military Health Service SAN South African Navy SANDF South African National Defence Force SAPS South African Police Service SC Strikecraft SCOPA Standing Committee on Public Accounts SDP Strategic Defence Package SECDEF Secretary of Defence SITA State Information Technology Agency SM Submarine SMC Standing Maritime Committee Sp Self-Propelled Sqn Squadron STFEP Short Term Force Employment Plan Sup Support SWP Standing Working Procedure TBVC Transkei, Bophuthatswana, Venda, Ciskei Tp Troop UAV Unmanned Aerial Vehicles UK United Kingdom UN United Nations UNCLOS United Nations Law of the Sea Convention USA United States of America USAF United States Air Force
2002-2003 Annual Report 231