C H A P T E R 1 Frontpage A n n u a l R e p o r t 2 0 0 1 / 2 0 0 2 1 The Published Annual Report is available on the website of the Department of Defence at http://www.mil.za All enquiries with respect to this report are to be forwarded to Brigadier General E. Mann at telephone number 012 355 5800 or Fax 012 355 5021 Mr M.B. Khanyile at telephone number 012 355 6309 or Fax 012 355 5813 email [email protected] ISBN 0-621-33248-8 RP 162/2002 Printed by FORMESET PRINTERS CAPE C H A P T E R 1 D EPARTMENT OF D EFENCE A NNUAL R EPORT 2 0 0 1 / 2 0 0 2 Mr M.P.G. Lekota Minister of Defence Report of the Department of Defence: 1 April 2001 to 31 March 2002. I have the honour to submit the Annual Report of the Department of Defence. J.B. MASILELA SECRETARY FOR DEFENCE: DIRECTOR-GENERAL A n n u a l R e p o r t 2 0 0 1 / 2 0 0 2 i DEPARTMENT OF DEFENCE ANNUAL REPORT FOR THE FINANCIAL YEAR 2001/2002 Table of Contents PART 1: GENERAL INFORMATION Submission of Annual Report to the Executive Authority i Foreword by the Honourable Mr M.G.P. Lekota, Minister of Defence ix Foreword by the Honourable Ms N. Madlala-Routledge, Deputy Minister xi of Defence The Year in Review xiii Chapter 1: Strategic Overview Aim & Scope of the Report 1 Mandate 2 Vision 2 Mission 3 Strategic Issues 5 Discontinued Services 7 New Services 7 Losses and Damages 7 PART 2: HUMAN RESOURCES MANAGEMENT Chapter 2: Organisational Structure and Human Resources Organisational Stucture 9 DOD Human Resource Strategy 2010 14 Macro Workforce Composition 14 Personnel Expenditure 16 Employment and Vacancies 17 Job Evaluation 18 Employment Changes 18 Affirmative Action 23 Performance Rewards 26 Foreign Workers 28 Sick Leave 29 Labour Relations 29 Skills Development 30 ii D e p a r t m e n t o f D e f e n c e PART 3: PROGRAMME PERFORMANCE Chapter 3: Defence Administration Political Direction 33 Departmental Direction 34 Policy and Planning 34 Financial Management 37 Departmental Acquisition and Procurement 41 Defence Inspectorate 46 Equal Opportunities 47 Corporate Staff Division 52 Strategy and Planning Office 52 Defence Corporate Communication 53 Reserve Force Division 60 Military Legal Services 64 Chaplain General 65 Defence Foreign Relations 67 Chapter 4: Landward Defence Annual Review 71 Contribution to Joint and Multinational Exercises 76 Outputs for DOD Clients 77 Service Delivery Improvement 77 Chapter 5: Air Defence Outputs Produced for DOD Clients 80 Training Outputs Produced for Internal Consumption 80 Service Delivery Improvement 82 Chapter 6: Maritime Defence Annual Review 85 Major Exercises 89 Service Delivery Improvement 89 Chapter 7: SA Military Health Support Programme Outputs 91 Human Resources 93 Impact of Health Status on Readiness of the SANDF 93 Chapter 8: Defence Intelligence Defence Intelligency Policy 95 Outputs 96 A n n u a l R e p o r t 2 0 0 1 / 2 0 0 2 iii Chapter 9: Joint Support Service Corps 100 DOD Logistic Agency 102 Command Management Information Formation 108 Human Resources Support Centre 110 Joint Training Formation 112 Military Police Agency 115 B MATT (SA Brief) 115 Chapter 10: Command and Control Combating Crime in Co-operation with the SAPS 120 Borderline Operations in Support of the SAPS 120 Joint and Multinational Exercises 121 Support to other State Departments 122 International Obligations 123 PART 4: FINANCIAL STATEMENTS Chapter 11: Management Report 127 Chapter 12: Auditor-General’s Report - Vote 20 137 Chapter 13: Financial Statements - Vote 20 145 Chapter 14: Auditor-General’s Report - Special Defence Account 181 Chapter 15: Financial Statements - Special Defence Account 186 Chapter 16: Auditor-General’s Report - Trading Account for 195 Medical Stock Chapter 17: Financial Statements - Trading Account for 198 Medical Stock iv D e p a r t m e n t o f D e f e n c e List of Tables Table 1.1 Defence Expenditure per Main Programme 5 1.2 DOD Strategic Issues 5 2.1 Analysis by Rank, Race and Gender: Regulars 15 2.2 Analysis by Salary Level, Race and Gender: PSAP 15 2.3 DOD Personnel Costs by Programme 16 2.4 DOD Personnel Costs by Salary Level 16 2.5 DOD Overtime. Allowances and Benefits by Programme 17 2.6 DOD Overtime, Allowances and Benefits by Salary Level 17 2.7 Approved DOD Establishment by Budget Holder 17 2.8 Employment and Vacancies by Salary Level 18 2.9 Job Evaluation by Salary Level for FY 2001/2002 18 2.10 Appointments and Transfers by Race: 19 2.11 Appointments, Promotions and Terminations of Service: Regulars 19 2.12 Appointments, Promotions and Terminations of Service: PSAP 20 2.13 Appointment and Terminations by Salary Level: Regulars 20 2.14 Appointments and Terminiations by Salary Level: PSAP 21 2.15 Initial Appointments and Termination of Service by 21 Critical Occupation: Regulars 2.16 Appointments and Termination of Service by 21 Critical Occupation: PSAP 2.17 Attrition by Reasons for leaving the Department: Regulars 22 2.18 Attrition by Reasons for Leaving the Department: PSAP 22 2.19 Changes in Representivity: Regulars 24 2.20 Changes in Representivity: PSAP 24 2.21 SMS Representivity in the DOD 25 2.22 Performance Rewards by Race and Gender: Regulars 26 2.23 Performance Rewards by Race and Gender: PSAP 27 2.24 Performance Rewards by Salary Level: Regulars 27 2.25 Performance Rewards by Salary Level: PSAP 28 2.26 Performance Rewards by Critical Occupations: Regulars 28 2.27 Performance Rewards by Critical Occupations: PSAP 28 2.28 Sick Leave: Regulars 29 2.29 Sick Leave: PSAP 29 2.30 Diciplinary Offences 30 2.31 Skills Development 30 3.1 Policies Developed by Policy and Planning Division 36 3.2 Policies Developed by Finance Division 38 3.3 Policies Developed by Equal Opportunities Directorate 48 3.4 Views and Attitudes of the SA Public on Defence Issues 58 3.5 Spiritual and Moral Support Statistics 66 3.6 Deployment of SANDF Military Attachés 68 3.7 Foreign Militaries Attachés in SA 68 4.1 Forces Prepared 72 4.2 SA Army Outputs for DOD Clients 77 6.1 SA Navy Defence Capabilities 86 A n n u a l R e p o r t 2 0 0 1 / 2 0 0 2 v 7.1 Consultations 92 7.2 Admissions 92 7.3 X-Rays 92 7.4 Laboratory Tests 92 7.5 Medicine Dispensed 92 9.1 Service Corps 101 9.2 Land Restored to Claimants 105 9.3 Land still to be Restored to Claimants 105 9.4 DOD Logistic Agency Service Delivery Outputs 107 9.5 CMI Capabilities and Excercises 108 9.6 Other CMI Outputs 109 9.7 CMI Service Delivery Improvement 109 9.8 Cost of BMATT to the UK 117 9.9 Cost of BMATT to the RSA 117 List of Figures Figure 2.1 Organisation Diagram of the DOD 9 2.2 Organisation Diagram of the Defence Secretariat 10 2.3 Organisation Diagram of the SANDF 10 2.4 Organisation Diagram of the SA Army 11 2.5 Organisation Diagram of the SA Air Force 12 2.6 Organisation Diagram of the SA Navy 12 2.7 Organisation Diagram of the SA Military Health Service 13 2.8 Organisation Diagram of the Joint Support Division 13 List of Abbreviations and Acronyms 207 vi D e p a r t m e n t o f D e f e n c e P A R T 1 - I N T R O D U C T I O N A n n u a l R e p o r t 2 0 0 1 / 2 0 0 2 9 MR M.G.P. LEKOTA Minister of Defence MS N.C. MADLALA-ROUTLEDGE Deputy Minister of Defence MR J.B. MASILELA Secretary for Defence GENERAL S. NYANDA, SSA, DMG, MMS, MMM Chief of the SA National Defence Force viii D e p a r t m e n t o f D e f e n c e FOREWORD BY THE HONOURABLE MR M.G.P. LEKOTA, MINISTER OF DEFENCE The principal responsibility of the Department of Defence is to protect South Africa's sov- ereignty, and to safeguard her territorial integrity effectively and efficiently. The Department of Defence therefore has to maintain a core force that is able to meet its com- mitments to deal with a wide range of contingencies. The force must have the capacity to expand to an appropriate size when necessary. External military threats, internal threats to the constitutional order, the promotion of regional security through defence co-operation within the SADC framework, and the pro- motion of international security through participation in peace operations and military co- operation in support of our foreign policy goals are among the contingencies for which we must be prepared. The end of the Cold War and a subsequent changing world situation has imposed con- straints on all defence forces worldwide. The absence of a direct military challenge allows countries to focus on economic rather than military growth and expenditure. But conflict must be eliminated if we are to stabilise, develop, and move towards prosperity. Today, we understand South Africa's security to incorporate political, economic, social and environmental matters. Conflict beyond our borders potentially impacts on our security. During the period in review the SANDF contributed military capacity for regional and con- tinental peace support operations.