All enquiries with respect to this report can be forwarded to Colonel E. van der Post at telephone number +27-12 355 5312 or Fax +27-12 355 5021 email: [email protected] Ms C.K. Ramulifho at telephone number +27-12 355 5087 or Fax +27-12 355 5613 email: [email protected] All enquiries with respect to the Annual Financial Statements can be forwarded to Mr H.J. Fourie at telephone number +27-12 392 2735 or Fax +27-12 392 2748 ISBN 0-621-36760-5 RP 163/2006 Printed by 1 MILITARY PRINTING REGIMENT, PRETORIA DEPARTMENT OF DEFENCE ANNUAL REPORT FY 2005 - 2006 D e p a r t m e n t o f D e f e n c e A n n u a l R e p o r t F Y 2 0 0 5 / 2 0 0 6 Mr M.G.P. Lekota Minister of Defence Report of the Department of Defence: 1 April 2005 to 31 March 2006. It is my pleasure and privilege to submit to you the Annual Report of the Department of Defence for the period 1 April 2005 to 31 March 2006, in terms of the Public Finance Management Act, 1999. J.B. MASILELA SECRETARY FOR DEFENCE: DIRECTOR GENERAL DEPARTMENT OF DEFENCE ANNUAL REPORT FY 2005 - 2006 i TABLE OF CONTENTS PAGE PART 2: ORGANISATION AND HUMAN RESOURCE MANAGEMENT PAGE Chapter 2 Human Resource Management List of Tables v List of Figures x Organisational Structure 10 Overview of DOD 11 Macro-workforce Composition 11 INTRODUCTORY INFORMATION Human Resource Strategy 2010 Implementation Progress 11 Personnel Expenditure 12 Foreword by the Minister of Defence xi Employment and Vacancies 15 Foreword by the Deputy Minister of Defence xiii Job Evaluation 17 Overview by the Secretary for Defence xv Employment Changes 18 Overview by Chief of the SA National xvi Employment Equity 21 Defence Force Performance Rewards 27 Information on the Ministry xviii Foreign Workers 29 Utilisation of Leave 29 PART 1: STRATEGIC DIRECTION HIV/Aids and Health Promotion Programmes 33 Labour Relations 35 Chapter 1 Strategic Overview Disciplinary 39 Skills Development 39 Injury on Duty 42 Introduction 1 Use of Consultants 43 Strategic Profile 1 Vision 1 Mission 1 PART 3: PROGRAMME PERFORMANCE Legislative Mandate of the Department of Defence 1 Departmental Values 2 Voted Funds 45 Alignment with Cabinet and Cluster Priorities 2 Aim of the Vote 45 Defence Outcome 3 Key Measurable Objectives and Programmes 45 Minister of Defence’s Objectives 3 Departmental Revenue, Expenditure and other 47 Minister of Defence’s Strategic Guidelines FY2005/06 3 Strategic Focus 5 Chapter 3 Defence Administration Functions of the Secretary for Defence 5 Functions of the Chief of the SANDF 5 Functions of the SA National Defence Force 5 Introduction 52 Defence Strategic Objectives 6 Political Direction 52 Defence Outputs 7 Departmental Direction 53 Parys Resolutions 8 SANDF Command and Control 55 Services Rendered 9 Policy and Planning 55 Discontinued Services 9 Overview 55 New/Proposed Services 9 Output Detail (Performance Report) 56 Losses and Damages 9 Financial Management 60 Events after the Accounting Date 9 Overview 60 ii DEPARTMENT OF DEFENCE ANNUAL REPORT FY 2005 - 2006 PAGE PAGE Output Detail (Performance Report) 61 Policy Development 113 Acquisition and Procurement Services 66 Services Scaled Down, Suspended or abolished during Overview 66 FY2005/06 113 Output Detail (Performance Report) 66 Inspection Services 69 Chapter 5 Landward Defence Overview 69 Audit Trends 70 Overview 114 Anti-coruption and Anti-fraud 70 Purpose 115 Output Detail (Performance Report) 71 Output Detail (Performance Report) 115 Equal Opportunities and Affirmative Action (EO) and (AA) 72 Service Delivery Improvement 123 Overview 72 Policy Development 126 Output Detail (Performance Report) 74 Services Scaled Down, Suspended or abolished Goverment Information Technology Officer (GITO) 77 during FY2005/06 126 Overview 77 Output Detail (Performance Report) 78 Corporate Staff Division 82 Chapter 6 Air Defence Overview 82 Overview 127 Output Detail (Performance Report) 83 Purpose 128 Strategy and Plan Office 83 Output Detail (Performance Report) 129 Overview 83 Service Delivery Improvement 142 Output Detail (Performance Report) 84 Policy Development 144 Military Legal Services 85 Services Scaled Down, Suspended or abolished Overview 85 during FY2005/06 144 Output Detail (Performance Report) 85 Religious Services 86 Overview 86 Chapter 7 Maritime Defence Output Detail (Performance Report) 87 Defence Corporate Communication 88 Overview 145 Overview 88 Purpose 146 Output Detail (Performance Report) 89 Output Detail (Performance Report) 146 Reserve Force Office 91 Performance and Service Delivery Improvement 155 Overview 91 Policy Development 159 Output Detail (Performance Report) 91 Services Scaled Down, Suspended or abolished Defence Foreign Relations 92 during FY2005/06 159 Overview 92 Output Detail (Performance Report) 92 Chapter 8 Military Health Service Chapter 4 Command and Control (Joint Overview 160 Operations) Purpose 161 Output Detail (Performance Report) 162 Overview 94 Performance and Service Delivery Improvement 170 Purpose 95 Occupational Health and Safety 171 Output Detail (Performance Report) 95 Service Delivery Improvement 111 DEPARTMENT OF DEFENCE ANNUAL REPORT FY 2005 - 2006 iii PAGE PAGE Chapter 9 Defence Intelligence PART 4: MANAGEMENT REPORT OF THE DOD'S Overview 172 ACCOUNTING OFFICE Challenges to The Achievement of Objectives 173 Purpose 173 243 Output Detail (Performance Report) 173 Report of the Audit Committee Performance and Service Delivery Improvement 175 Report of the Accounting Officer for the year ended 31 March 2006 245 Chapter 10 Joint Support Overview 176 PART 5: AUDITOR-GENERAL'S REPORT ON Purpose 176 Output Detail (Performance Report) 176 DOD FINANCIAL STATEMENTS Command and Management Information Systems 177 DOD Logistic Agency 180 Asset Managment 189 Report of the Auditor General - Human Resource Support Center 190 Defence Vote 21 262 Joint Training 192 Military Police 194 Service Corps 196 Statement of Accounting Policies and Services Scaled Down, Suspended or abolished during FY2005/06 200 Related Matters 269 British Peace Support Team 200 Chapter 11 Special Defence Account Annexures to the Annual Financial Statments for the year ended 31 March 2006 327 Overview 201 Purpose 201 Output Detail (Performance Report) 201 Report of the Auditor-General to Parliament Performance and Service Delivery Improvement 213 on the Financial Statements of the Special Appendix A Defence Diplomacy 214 Defence Account for the year ended 31 March 2006 344 Appendix B State of the Reserve Force for the FY2005/06 225 List of Abbreviations and Acronyms 357 Appendix C Reporting on Foreign Aid Assistance to the SANDF for the FY2005/06 241 iv DEPARTMENT OF DEFENCE ANNUAL REPORT FY 2005 - 2006 PAGE LISTS OF TABLES TABLE TITLE PAGE INTRODUCTORY INFORMATION Part 1 Strategic Direction 1 International Trips xviii 2 Other Maters dealt with xx 3 Other Briefings and Meetings dealt with xxi 4 Appearances before Committees xxiv 5 Public Hearings xxiv 6 National Visits xxv 7 International Visits xxv 8 Public Participation in Activities and Interaction with Institutions xxvi 9 Sponsorship xxvi Chapter 2 Human Resource Management 2.2.1 Personnel Cost by Programme for the period 1 April 2005 to 31 March 2006, 13 2.2.2 Personnel Cost by Salary Band for the period 1 April 2005 to 31 March 2006, 13 2.2.3 Salaries, Overtime, Homeowners’ Allowances Programme and Medical Assistance by for the period 1 April 2005 to 31 April 2006, 14 2.2.4 Salaries, Overtime, Homeowners' Allowance and Medical Assistance by Salary Bands for 1 April 2005 31 March 2006, 15 2.2.5 Employment and Vacancies by Programme as at 31 March 2006, 15 2.2.6 Employment and Vacancies by Salary Bands as at 31 March 2006, 16 2.2.7 Employment and Vacancies by Critical Occupations as at 31 March 2006, 16 2.2.8 Job Evaluation 1 April 2005 to 31 March 2006 17 DEPARTMENT OF DEFENCE ANNUAL REPORT FY 2005 - 2006 v TABLE TITLE PAGE TABLE TITLE PAGE 2.2.23 Performance Rewards by Salary Band for Personnel 2.2.9 Profile of Employees whose salary Positions were below Senior Management Service for the Period upgraded owing to their Posts being upgraded, 1 April 2005 to 31 March 2006, 28 1 April 2005 to 31 March 2006, 18 2.2.24 Sick Leave taken by DAP by Salary Band for the peri- 2.2.10 Annual Turnover Rate by Salary Band for the period od 1 January 2005 to 31 December 2005, 29 1 April 2005 to 31 March 2006, 18 2.2.25 Sick Leave taken by PSAP for the period 1 January 2.2.11 Annual Turnover Rate by Critical Occupation for the 2005 to 31 December 2005, 30 period 1 April 2005 to 31 March 2006, 19 2.2.26 Disability Leave taken by DAP for the period 2.2.12 Reasons for Termination of Service in the Department 1 January 2005 to 31 December 2005, 30 for the period 1 April 2005 to 31 March 2006, 20 2.2.27 Disability Leave taken by PSAP for the period 2.2.13 Promotions by Critical Occupation for the period 1 January 2005 to 31 December 2005, 30 1 April 2005 to 31 March 2006, 20 2.2.28 Annual Leave taken by DAP for the period 2.2.14 Promotion by Salary Band for the Period 1 January 2005 to 31 December 2005, 31 1 April 2005 to 31 March 2006, 21 2.2.29 Annual Leave taken by PSAP for the period 2.2.15 Progress on the Status of Employment Equity within 1 January 2004 to 31 December 2005, 31 the Department of Defence since 1994, 21 2.2.30 Capped leave taken by DAP for the Period 2.2.16 Total Number of Employees by Occupational Category 1 January 2005 to 31 December 2005, 32 as at 31 March 2006, 22 2.2.31 Capped Leave taken by PSAP for the Period 2.2.17 Total Number of Employees by Occupational Band as 1 January 2005 to 31 December 2005, 32 at 31