Reply:

The response to be provided to this question currently forms the basis of a court case brought by the Democratic Alliance on 10 February 2017.  A response to this question will thus only be provided once the court case has been finalised.

Reply:

The information requested relates to the movement of the VVIP and such information can only be disclosed in a closed session of the Joint Standing Committee on Defence.

Reply:

1. (a) There have been two burglary incidents at the Silvermine Military Complex.

(b) In the first incident copper cables and parts of antennas were stolen and the second incident cables were stolen.

(c) Cost of stolen equipment estimated at R50 000-00 in the first incident, whilst estimated value in the second incident, still being determined.

2. Security levels were escalated in the area by increasing security patrols by the Military Police and deploying additional SA Navy security personnel to the complex.

Reply:

1. No, it is not a national key point.

2. The security measures in place are considerable

Reply:

a) Six of the nine C130s are operational with three of those six being serviceable.

b) None of the seven Dakotas are currently operational or serviceable due to the implementation of Air Worthiness Directive on the primary flight controls.

Reply:

The Board of Inquiry is not completed yet

Reply:

(a) Officer Commanding SA Army Support Base Eastern Cape instructed the members to be armed as per Army Doctrine.

(b) No, there was no specific site targeted. More than one family who stayed illegally was evicted. The Officer Commanding reported that the choice of delivering near the municipality was as requested by the lady being removed out of the military house.

(c) When the SANDF trucks were leaving, someone tried to block their way by putting a vehicle in front of them. The vehicle was left unoccupied, trying to block the way.

Orders were given by the Officer Commanding SA Army Support Base Eastern Cape.

The Board of Enquiry is currently at LEGSATO for legal advice once returned actions will be taken as been advised by LEGSATO.

Reply:

1. (a) It is in a serious state of disrepair.

(b) No.

(c) No.

(d) Yes.

(e) No.

2. N/A.

3. Yes.

Reply:

1. (a) The primary function of Navcomcen Cape (NCC) at Silvermine Complex is to support strategic and tactical radio communication for the SA Navy. In addition, NCC also provides strategic HF Communications to the SA Air Force (SAAF).

In order to provide these functions, NCC comprises of an Upper and Lower Antennae Farms. The lower antenna farm was destroyed by fire and the repair solution to get this antenna farm back to operational status is currently in process. The antenna cables from the upper antenna farm runs underground through this field and was not damaged in the fire. It is these cables that were cut and stolen leaving the communication centre with a limited reception capability.

(b) NCC had limited reception capability due to the antenna cable theft and Navcomcen Durban (NCD) (standby communications centre) provided support as a back-up for reception services. However, NCC is still able to maintain daily strategic communications with SAS AMATOLA currently on OP KETANE and NCD provided communications for the SAN.

(c) The antenna and the perimeter fencing that were damaged in the fires have not been repaired. After the recent theft in Jan 17, repairs have been effected on one antenna which was fully restored. After the theft in Feb 17, the restored antenna was damaged again and awaiting further repairs.

(d) Yes.

Reply:

There is no capped budgetary allocation for individual military residential upgrades. Budgetary allocations wrt building and maintenance are centralised and, therefore, all repairs and day-to-day maintenance are done on request. This also includes emergency repairs. The house of Col Mongo, the Officer Commanding of the Unit is repaired as need arises. Depending on the condition of a house, where breakages and wear and tear takes place, houses are repaired. The following repairs were done in the official residence of the OC:

(a) 2012 Lifting of old floor covering and replacing with Novillon.

2012 Fitting of blinds to windows

2013 Renovation of bathroom and toilet.

2014 Paving

2015 Replacement of gutters.

2015 Replacement of burst geyser.

2015 Painting of the exterior (unit purchased paint and only labour was outsourced as the house is a double storey).

2016 Roof leaks repaired.

(b) The house needs much attention but since funds are not available, repairs are done in relation to wear and tear, OHS matters, etc. Paving was done as the house is surrounded by big trees from the neighbours causing permanent shade that kills the grass.

Reply:

Response (a) and (b): of the 14 666 the following military veterans accessed services:

Year	Authorised to access Health care	Number of military veterans Head Count at SAMHS Facilities	Accessed through road show conducted by MVHPA	Accessed through MVHPA doctors	Accessed through ZEAL Health doctors
2015/16	14666	4069			1096
2014/15	11514	3824	5479	1299
2013/14	4719	2526	2121
2012/13		691
2011/12		362

(2) what amount out of the amount that was spent in the 2015-16 financial year on the specified sub-programme (a) was for expenditure on health and wellness for the current financial year and (b) what amount was for previous years;

Response (2):

Service Provider	2015/16 invoices	Previous Financial Years	Total
SAMHS	R30 966 202.48	R24 500 000.00	R55 466 202.48
MVHPA	0	R826 320.85	R826 320.85
ZEAL	R474 984.63		R474 984.63
TOTAL	R31 441 187.11	R25 326 320.85	R56 767 507.96

(3) in view of the fact that there is no other service provider other than SA Military Health Services (SAMHS), (a) exactly which service providers were paid for which services delivered and (b) when were the services delivered;

Response (3):

ZEAL Health Innovations was procured for a 3 month contract (1 April 2015 to 30 June 2015) with a total payment of R 474 984.63 for provision of:

1. Primary and Chronic health services and related medication for military veterans.
2. Dedicated counselling services for military veterans and their dependent

(4) (a) what amount of the payment that was made for the subprogram was paid to SAMHS and (b) for which years?

Response (4):

Service Provider	2015/16	Previous Financial Years	TOTAL
SAMHS	R30 966 202.48	R24 500 000.00	R55 466 202.48

NW2709E

Reply:

This matter is the subject of a police investigation, as per this member’s own press release, and as such responses are to be provided as part of that investigation.

Reply:

1. Yes, the supply chain management and procurement policies are strictly adhered to and all required committees to approve acquisition are in place.

2. No, all acquisition matters are done through credible committees.

3. Measures are always in place as the unit follows the supply chain management prescript.

4. (a) Challenges:

(i) All the vehicles disposed of, must go through a process of eNaTIS and Microdotting. The vehicle must be cleared by SAPS.

(ii) The above-mentioned process is lengthy and time-consuming. Normally, vehicles that have been acquired recently have already gone through the above-mentioned processes. Therefore, during their disposal, they do not need to repeat the processes.

(iii) Vehicles that become BER (beyond repair) as a result of an accident cannot be disposed of immediately because of Board of Inquiry still needs to be convened and possible claims determined for claims for or against the state. Such vehicles will only be disposed of after the investigation is complete.

 

Reply:

(a) (i) No, the incident was reported and the Board of Inquiry was convened.

(ii) The matter is under investigation.

(b) (i) The outcome of the investigation will determine what tools inside the toolboxes were lost.

(ii) Matter is under investigation to determine value loss per tool.

Reply:

The details of the sickness of any member of SANDF are confidential. The SANDF cannot disclose the member’s duration, nature of the illness, sick certificates issued by medical practitioners.

Reply:

(1) Grievances 2014:

(a) Number of grievances lodged by staff members: 07

(b) Nature and trend: placement, MEM, Pers Assess, Previous Grievance, Promotion, Acting Allowance

(c) (i) Resolved: 05

(ii) Unresolved: 02

(2) Grievances 2015:

(a) Number of grievances lodged by staff members: 03

(b) Nature and trend: Promotion and housing.

(c) (i) Resolved: 03

(ii) Unresolved: 00

(3) Grievances 2016:

(a) Number of grievances lodged by staff members: 02

(b) Nature and trend: Promotion and Performance Assessment

(c) (i) Resolved: 00

(ii) Unresolved: 02

Reply:

1. (a) The number of burglary incidents since 01 January 2014 is 23.

  (b) The burglaries occurred within the base on different dates.

   (c) The outcome of the investigation conducted:

    Theft of oil and negligence: 02 members were charged.

     The following are under investigation:

      - Theft of vehicle parts

      - Copper theft

      - Theft of Cannon camera

     - Breaking of window

    - Theft of toolbox

    - Theft of batteries

2. The military police is still investigating the cases and to date no evidence of collusion between staff and the criminals has been discovered.

3. (a) and (b) It must be noted that some of the members have been suspect in the investigation, some charged and some are the subject for investigation. Therefore our guards have done whatever they could in combating the burglary incidents. The arming and disarming of soldiers is not for public.

4. The total number of guards and the routine is not for public. The security of the military base is determined by the Guard Commander on duty after going through an analytical process regarding threats in the base.

5. Yes, our Military Bases comply with military security requirements. In terms of the National Key Point legislation, SAPS is tasked as the protecting authority and will be in a position to provide what is and what isn’t a key point.

Reply:

Yes - 10926244PE Staff Sergeant K.C. Mbulawa – Mashalaba.(20 January 2011 to 31 October 2016)

(a) The ASB Western Cape had to await the outcome as it was a civilian court case which only took place on 04 April 2012.

(b) (b)(i) The member’s remuneration over the period 20 January 2011 to 31 October 2016 was: R 1 205 511 (Annual Bonus included).

         (ii) Nil.

(c) The member was administratively discharged wef 31 October 2016.

(d) (i) Her work was distributed among her colleagues.

     (ii) Nil.

Reply:

(1) (a) and (b) The names and ranks for uniformed members of the SANDF who received performance bonuses cannot be provided as it might compromise individual’s confidentiality and this also includes the amount received in each case.

Total number of members who received bonuses 2013 – 2015: 305

(2) Yes, there are portfolios of evidence and motivations, by the line superiors to award bonuses to the specified persons and it is actually contained in each member’s PMDS Booklet, as follows:

• 1. Each individual score per KRA and GAF is motivated.

• 1. Each superior has to have at least two compulsory interviews with his/her member, in order to highlight good or bad performances.

• 1. Superiors also have the opportunity throughout the year of assessment to have performance related interviews with members, which can be captured in the PMDS Booklet.

(3) No, these PMDS booklets are not open for scrutiny by any persons other than the specific individual, the immediate supervisor, the Service Centre Manager, the Personnel Officer, members of the PMDS Moderating Board and the Officer Commanding. These PMDS Booklets are kept in filing cabinets in the office of the Warrant Officer in charge of PMDS Administration. These booklets can only be accessed by means of authority given by higher HQ via the Officer Commanding.

(4) No, Col M.R. Mongo did not receive a bonus in each of the specified financial years. He only received a bonus in 2012 and nothing since then. The Unit Officer Commanding is assessed by the GOC Support Formation, and nomination for a bonus comes from the GOC. The unit does not even capture the PMDS of the officer commanding.

Reply:

1. (a) and (b) No, the member was charged for AWOL and drunkness in October 2016.

2. Yes, the member was reported that he was drunk and the matter was addressed by his immediate supervisor.

3. Yes, the OC was aware and the OC since charged the member in October 2016 and even sent him to Military Correctional Services for one night.

Reply:

(a) (i) 461 - Number of members in each division that are based in Youngsfield Military Base in Wetton, Cape Town.

     (ii) 73 – Number of uniform members involved in traffic accidents.

     (aa) 2014/15 – 14 traffic accidents

     2015/16 – 08 traffic accidents

     2016/17 – 08 traffic accidents

    (bb) Since April 2016

    (iii)  (aa) 03 vehicle accidents investigated.

    (bb) 04 cases unresolved

(b) (i) Cases include members with the state cover and members liable for damages as indicated.

    (ii) Cases include members with the state cover and members liable for damages as indicated.

(c) 2014/2015 – R42 295.19.

2015/2016 – R163 393.70.

2016/2017 – Cases still pending.

 

Reply:

(1) with reference to the summary report which indicates that her department is still busy with investigations of irregular expenditure that occurred in 2015-16 financial year, (a) how far have the specified investigations gone and (b) by what date can a report on the specified investigations be expected;

Response:

(1)(a) The Financial Misconduct Committee of DMV is busy considering each of the incidents. They will be reported to the Accounting Officer for action.

(1)(b) Scopa has given the Department till the middle of January to report on the investigations and consequent management actions taken. The Accounting Officer is aiming to complete these actions by the 15 January 2017.

(2) what steps has she taken with regard to her department’s disregard of the recommendations of the Auditor-General and concerns of the Portfolio Committee on Defence; if not, why not; if so, what are the relevant details;

Response:

(2) I am not aware of what issues the Honourable Member is referring to. However the Portfolio Committee has developed a dashboard of issues for the department to report on and the department is following this plan.

Question (3)

What steps is her department taking to ensure that there is no poor performance with regard to rendering services to the destitute military veterans whilst the officials of the department receive performance bonuses; if not, why not; if so, what are the relevant details;

Response: I have ensured that a full complement of DDGs, a new CFO and an acting DG have been appointed. They have entered into performance agreements to which they are being held responsible.

The department is in the process of reviewing the organisational structure to address capacity issues. In addition to that the department has developed its service delivery model to enhance service delivery.

(4) does her department have a policy to hold officials personally responsible for delinquency or dereliction of duties; if not, why not; if so, what are the relevant details;

Response:

(4) The Department utilises the Public Service Prescripts; Public Service Act, SMS Handbook and Public Service Regulations to hold officials accountable. Regarding Finance and Supply Chain Management the PFMA and National Treasury Regulations are utilised.

(5) how does her department justify the approval of bonuses while there are outstanding performance contracts?

Response: The level 1-12 employees were paid performance bonuses after being assessed by their respective managers and supervisors. The department did not award performance bonuses for SMS Members. By direction of the then Acting Director-General employees were instructed to submit their Performance Agreements. All except one SMS member have submitted Performance Agreement by 1 December 2016.

NW2714E

Reply:

Question 1: Whether, in respect of the AG’s 2015-2016 Annual Financial Report and with specific reference to her department, and in view of the general perception that public servants find it easy to be involved in fruitless litigation cases mainly because the State funds the cases and not the individuals behind them, there is a policy regulating the management of litigious matters of her department; if so, who is responsible for litigation processes within the department?

Answer 1:

Yes, the department has a “Policy on the Management and Administration of Civil Claims (Including Legal Representation and Legal Opinion) in the Department of Military Veterans”. The Director Legal Services is responsible for litigation processes within the department.

Question 2: How does her department account for the amount of R205 million regarding potential liability?

Answer 2: It is reported as a contingent liability in Note 16.1 to the 2015/16 Annual Financial Statements.

Question 3: How many court cases is the DMV involved in?

Answer 3: The DMV is involved in eight court cases; Of the eight cases, two relate to labour relations and six are contract related.

Question 4: Whether the department does conduct a risk profiling of the cases to assess chances of success?

Answer 4: Legal Services does determine the merits of each case and also attempts to mediate a matter in order to resolve it amicably without having to resort to litigation. This is done in conjunction with the State Attorney, where applicable.

Question 5: Whether there is a cost benefit analysis done when cases are allowed to go to Court, if so, what are the relevant details, if not, why not?

Answer 5: Yes a cost benefit analysis is done for all cases involving the department. The cost benefit analysis is also addressed in the mediation process where the department attempts to settle matters amicably without resorting to court. When a letter of demand is received the process starts to resolve the matters without court processes. Where summons was issued and parties have entered into a settlement agreement, the settlement agreement is then made an Order of Court. It is only in exceptional cases where matters are referred to Court for a decision.

Reply:

Response (1):

Dates for the hearing of court cases are set by the judiciary. The department is finalizing its papers in this matter and hopes that a court date will be set for early 2017.

(2) Whether a risk assessment was done in relation to the specified court case with regard to the potential financial and human costs? NW2707E

Response (2): The merits of the case where looked into and the human and financial costs were taken into consideration by the before the matter was referred to Court.

Reply:

Response

The matter is sub judice and therefore no further comment is possible at present in terms of Rule 89 of the National Assembly which says, “No member may reflect upon the merits of any matter on which a judicial decision in a court of law is pending.”

(2) whether a certain person (name furnished) or any official of her department involved in the alleged irregular contract has been called to any disciplinary enquiry given the devastating consequences of the dispute; if not, why not; if so, what are the relevant details;

Response

The Public Service Commission is busy with an investigation into this contract and the processes followed in awarding it. DMV is awaiting the outcome of the investigation.

(3) whether she has found that corruption might be the real reason behind the dispute and these serious allegations levelled against a certain person (details furnished); if so,

Response

DMV is awaiting the outcome of the Public Service Commission investigation and will act on its recommendations.

(4) has her department investigated these serious allegations of corruption; if not, why not; if so, what are the relevant details;

Response

DMV is awaiting the outcome of the Public Service Commission investigation and will act on its recommendations.

(5) whether her department provided protection for the whistle-blower in this matter as provided for in the Protected Disclosures Act, Act 26 of 2000; if so, (a) what steps has her department taken to ensure that the whistle-blower is not targeted and (b) what are her department’s plans to fight corruption? NW2708E

Response (5)

The investigation into the Zeal contract arises from internal processes of the department and steps I took as the Executive Authority in October 2015, after the matter was brought to my attention, to request the Public Service Commission to begin an investigation.

The Public Protector has confirmed in writing that an official of the DMV lodged a complaint to their office on 3 June 2016. As this disclosure was made long after I asked the Public Service Commission to investigate the matter, I am taking advice as to whether this can be considered a protected disclosure in terms of the Protected Disclosure Act of 2000.

Reply:

1) The Annual Performance Plan of the DMV for 2015/16, which was adopted by Parliament, set the target of providing 8000 military veterans with access to health care. As of 31st March 2016, 8 264 military veterans were authorised to access health care services adding to a total accumulative number of 14 666 as from the 2013/14 financial year to the 2015/16 financial year. This is the indicator the department reports on in the Annual Report and is aligned with Section 5 (1)(i) of the Military Veterans Act, Act 18 of 2011, which of speaks to “access to health care.” As part of its strategic planning processes the department is discussing other indicators which can be used to measure access to health care.

2): The expenditure incurred is for military veterans who have received the healthcare services.

Reply:

(1) (a) MVHPA is the Military Veterans Health Professional Association, a network of service providers which provided military veterans with access to primary healthcare services prior 2014.

(b) The Department of Military Veterans signed a Memorandum of Understanding with Military Veterans Health Professional Association (MVHPA) on the 23rd May 2013. This was followed by a partnership between DMV, South African Military Health Services (SAMHS) and MVHPA on a program to conduct healthcare assessment for all qualifying military veterans in order to obtain their disease profile as well as provision of related treatment and referral for appropriate level of healthcare. An agreement existed between MVHPA and SAMHS but no Service Level Agreement was in place to formalize the arrangement between DMV and MVHPA and hence the finding by the Auditor-General that the relationship was illegal, which rendered all payment transactions made to MVHPA irregular.

However the service still had to be rendered until another service provider was appointed.

Question (2)

What is her department’s position with regard to the perception of double standards on how it deals with perceived or actual irregular service provider contracts, given the dispute on the current service provider contract that is currently in court;

Response (2): The question refers to matter that is currently in court and is consequently sub judice. In terms of Rule 89 of the National Assembly, “No member may reflect upon the merits of any matter on which a judicial decision in a court of law is pending.”

Question (3)

whether she has found that there are personal relationships between theowners or managers of the company and current senior managers of (a) her department and/or (b) her Ministry; if so, (i) what is the nature of the relationship and (ii) has this been disclosed in any way;

Response (3):

No personal relationships have been disclosed and the department is not aware of any. The department is awaiting the outcome of a Public Service Commission investigation into this matter.

Question (4)

(a) what amount was paid to the MVHPA and (b) when was the last payment made to them;

Response (4):

(a) Total amount paid is R14 883 532.00. (b) The last payment was made on 17 October 2014.

Question (5)

whether she has found that there are military veterans who might have died as a result of lack of access to health care services; if not, what has been done to investigate whether the lack of access to health care contributes to the deaths of military veterans; if so, how many military veterans have died as a result of lack of access to health care services? NW2711E

Response (5):

The Department entered into an MoU with SAMHS to afford military veterans access to health care. The department is not aware of any cases where Military Veterans have died as a result of lack of access to health care services. If the honourable member knows of such cases he is encouraged to report them to the Minister.

Reply:

(1) What steps has she taken to (a) monitor and (b) correct (i) the tangible capital asset register (ii) irregular expenditure (iii) organogram and (iv) reported failures as indicated by the Auditor-General in respect of the corporate services branch of her department;

Response:

(i) Assets Management:

(a) Monitoring: A permanent assets management unit has been approved by the Executive Committee. This unit will ensure that all assets of the department are fully accounted for all the times.

(b) Correction: During 2015/16 Financial Year, the assets register was reconstructed and reconciled with annual financial statement. The remaining item is the finalisation of the verification process which is currently at 80% completion.

(ii) Irregular expenditure:

(a) Monitoring: The registers have been compiled for each of the years and these are reconciled to the annual financial statements.

(b) Correction: The Irregular and Fruitless and Wasteful expenditure dates back to 2013/2014 financial year. The Financial Misconduct Panel has been formed and approved by the Accounting Officer. The Panel has been tasked to expedite the investigations. The timeline given by Executive Authority is 15 January 2017.

(iii) Organogram

(a) Monitoring: The organogram is closely monitored by HR with continuous engagements with branches concerned.

(b) Correction: The ideal organogram has been developed by the Department and continuous engagements with DPSA are in place.

(iv) Reported failures by AGSA

General failures as noticed by AGSA are as follows:

• Percentage of staff attending training
• Lack of consequence management to staff without Performance Agreements.
• Vacancy Rate on funded posts
• Non adherence to 30 days payment rule

(a) Monitoring: All of the above are presented at monthly management meetings. Where gaps may exist, action plans are put in place to correct such.

(b) Correction: The skills audit will be completed by the end of quarter four. All SMS performance agreements except for one, are in place. With the current funded structure where posts favours administration, a rebalancing exercise is being undertaken by the Department to address capacitation of Service delivery branches. This is being done whilst a consultative process is in place with DPSA. The issue of 30days payment rule is being addressed by re-looking and changing the invoice handling exercise.

Reply:

Response

Question (1):

The department is busy with an employee satisfaction survey in order to identify issues affecting morale amongst employees. The department is also conducting a skills audit to ensure that employees are placed appropriately according to their skills. These will be reported once they are completed.

The newly appointed Acting Director-General has begun a process of interacting with employees to inform them key developments in the department engage in team building and improve morale.

Question (2) Given the reported lack of relevant expertise on skills in the specified report, does her department have a policy regarding the recruitment of senior managers; if not, why not; if so, what are the relevant details;

Response

The Department has a Recruitment Policy and it is implemented in line with Public Service Commission requirements for Public Service Recruitment practices.

Question (3) Does her department have a fair and transparent recruitment policy that prevents patronage and allows capable candidates to be appointed; if not, why not; if so, what are the relevant details

Response

All appointments within the department are done through the Public Service Regulations, Part VII. Procedures for Appointment, Promotions and Termination of Service. Our recruitment policy is transparent and fair.

Question (4): (a) By what date will existing vacancies be filled and (b) what is the cause of the delay in the appointment of permanent director-general

Response

(a) The department is in a process of filling all the posts and priority is being given to the two service delivery branches – Socio-Economic Support and Empowerment and Stakeholder Management. It is hoped this will be completed by the end of the financial year.

(b) The interview and evaluation processes for the appointment of the Director-General was completed. However, due to administrative challenges between DPSA and DMV the process was stalled. It is hoped that this post will be permanently filled soon.

Reply:

Due to the security implications of this question, a response can only be provided in a closed session of the Joint Standing Committee on Defence.

Reply:

Details as to the member’s medical condition cannot be disclosed as it would be a violation of doctor and patient privilege.

Reply:

(a) and (b)

    (i) Flight tickets

     A total amount of R 442 643.52 was spent on flight tickets on the trip to Cuba by the CSANDF and his delegation from 13-19 June 2016.

    (ii) and (iii)

     Accommodation, car rental and all other expenses were catered for by the host.

Reply:

Questions 1-5

The SAAF has not leased aircrafts from the consortium led by Atlantis Aviation.

The SAAF was approached by Atlantis Aviation in the run-up to the AAD 2016 with the view to showcase the Donier 328.

The SAAF did not make any commitment to acquire these aircrafts after the assessment by our maritime specialists.

Reply:

1. Fouriesburg was identified as an Operational Base facility to accommodate Force Structure Elements (FSE’s) on a rotational basis to effect Border Control as part of the South African National Defence Force’s Border Control Strategy. Utilization of this facility for this purpose was further augmented by a Cabinet decision and Directive to continue with Border Control Operations as well as a request from the Border communities. Fouriesburg forms part of fifteen (15) Operation Base Facilities that have been identified nationally.

2. (a) and (b)

There are no plans to resettle this facility from its current location as it was used previously and closed as part of the reduction of force levels. The base will be resuscitated to a permanent military base facility for utilization for border control operations.

Following an assessment by the National Department of Public Works and the Local municipality it was approved that the facility be re-established. The estimated costs will be R36 million for two financial years, 2017/18 and 2018/19.

3. Complaints have been received by a section of the population of Fouriesburg. The commanders are engaging the entire community to listen to their concerns including noise pollution.

4. There is no evidence of any complaints laid at the local SAPS Police Station.

Reply:

1. Armscor applied the 25% Black equity requirement as a selection criterion until September 2014 when the application of this criterion was discontinued. The objective of this strategic intervention was to address the dire transformational challenges facing the local defence industry.

When Armscor introduced the qualifying BEE requirement, the Preferential Procurement Policy Regulations were not applicable to Schedule 2 and 3 Public Entities. In 2011, National Treasury introduced the revised Regulations which became applicable to, inter alia, schedule 2 public entities and these entities were however granted exemption until 7 December 2012 for implementation of the Regulations. Armscor aligned its policy with the revised Regulations immediately but retained the 25% black equity ownership requirement.

Discussions were then started with the National Treasury, through which National Treasury was made aware of Armscor’ s policy of 25% black equity ownership requirement. Whilst in discussions with the National Treasury and in the process of applying for exemption subsequent to those discussions, the Auditor General declared monies spent on contracts which were subject to the 25% BEE requirement irregular expenditure.

The 13.2 million reported represents expenditure incurred during the 2015/16 financial period as a result of contracts placed during the period that the 25% black equity requirement was applied.

(2) The expenditure incurred while applying the 25% black equity criterion was condoned by National Treasury on 19 July 2016. The 25% black equity ownership requirement application resulted in some previously disadvantaged groups or persons entering the economic stream through participation in the acquisition/procurement contracts funded from the SDA, GDA and Armscor operational expenditure. To this end, this intervention has made strides in changing the ownership landscape in the South African defence industry.

Finally, the application of the 25% black equity ownership qualifying requirement has to an extent amongst others assisted in seeking to establish and retain sovereign and strategic capability for the benefit of the SANDF in local empowered entities.

Reply:

(1) The payments to executive directors for the financial year ending 31 March 2016 included the once-off buy out of the future medical liability which were not included in the period ending 31 March 2015 and this result in the increase over and above the annual increase. This settlement of the future medical liability as negotiated with the employees and retirees of Armscor reduced the future liability for medical contributions after retirement significantly.

The biggest contributor to the decrease in the total revenue of Armscor was the decrease of the allocation to Armscor that is in accordance to the National Treasury baseline reduction. The increase in expenditure furthermore is mainly influenced by the recognition of actuarial losses on the medical liability buy-out that is a result of the settlement of the liability. If the impact thereof is excluded the operating expenditure increased with only 2.3%.

(2) All Armscor employees (including management) have an agreed Balanced Scorecard (BSC) that contains the individual’s performance criteria to be achieved. This is an annual process and it cascades down from the executive management which BSC’s are based on the goals and objectives that is contained in the Corporate Plan. Armscor only consider the payment of a performance bonus if the goals as set in the Corporate Plan are achieved (as agreed) and the funding is available. Individual performance bonuses are then based on a combination of the company achievement and the achievement of the individual’s performance criteria.

Annual increases are informed by market surveys and affordability. The increase also takes into consideration the agreement reached with Organised Labour. In this regard, the executive and senior management receive the same or lower increase percentage – as has been the case over the past few years - than members forming part of the bargaining unit as represented by Organised Labour.

 

Reply:

2015/2016
	Department of Defence	Department of Military Veterans
Medium	(amount in rand)	(amount in rand)
(i) Africa News Network	100 000.00	0.00
(ii) SABC
(aa)SABC TV	600.000	1 100 000.00
(bb) SABC Radio Stations	180.000	1 276 827.36
(iii) National commercial radio stations	R 0.00	R 0.00
(iv) Community
(aa) television	800 000.00	R 0.00
(bb) radio stations	128 000.00	756 000.00
TOTAL	1 808 000.00	3 132 827.36
01 APRIL 2016 TO DATE
	Department of Defence	Department of Military Veterans
Medium	(amount in rand)	(amount in rand)
(i) Africa News Network	0.00	0.00
(vi) SABC
(aa)SABC TV	0.00	R 0.00
(bb) SABC Radio Stations	0.00	541 317.60
(vii) National commercial radio stations	0.00	545 208.00
(viii) Community	0.00	276 000.00
(aa) television	0.00	351 963.00
(bb) radio stations	0.00
TOTAL	0.00	1 714 488.60

Reply:

DEPARTMENT OF DEFENCE

(a) Chief Financial Officer qualifications:

• B Com
• MBA

b) Director-General qualifications:

• Doctor of Medicine,
• Post Graduate Training in General Surgery and Diploma in Management Advancement Programme.

DEPARTMENT OF MILITARY VETERANS

a) Chief Financial Officer qualifications:

• National Diploma: Accountancy
• Bachelor of Technology-CMA
• Masters in Business Administration

b) The Minister of Defence and Military Veterans appointed the Secretary of Defence as the Acting DG for the Department of Military Veterans.

Reply:

1. FeverTree Consulting has not been appointed to facilitate, adjudicate and make recommendation to Armscor for the intended lease of the BBJ VVIP aircraft.

 (a) (i) if not, why was the specified consulting firm appointed

Reply:

FeverTree Consulting is a Management Consulting company specialising in organisational turnarounds. The company was appointed to assist Armscor in the co-management of its turnaround.

(ii) what distinguished them from other companies

Reply:

The company was appointed through an open tender process conducted in accordance with applicable legislation and was the only company that complied with all of the criteria as specified in the tender documents.

(b) why was it necessary to appoint the specified consulting firm and not rely on Armscor’s expertise solely

Reply:

Armscor does not have the expertise in turnaround strategies.

(c) was any additional costs incurred above the R65 million fee already paid to the specified consulting firm;

Reply:

Armscor has not signed a contract worth R65 million with FeverTree Consulting and has not paid the said amount. Any amount that would be paid will be paid against the invoices received and verified deliverables

2. Whether she is aware that the Deputy President of the Republic, Mr. M Cyril Ramaphosa, is a former Board Member of the specified consulting firm; if not, why not; if so, what is the position in this regard;

Reply:

I am aware that he is a former Board Member.

3. Whether she has put any measures in place to ensure that any undue influences (a) have not been present to date in and (b) will not be present in future process to procure new VVIP aircraft; if not, why not; if so, what are the relevant details?

Reply:

Any procurement process must take place within the prescripts of the PFMA and National Treasury Regulations and such has been communicated to all role players at all times.

Reply:

ARMSCOR

(a) The total amount Armscor has paid to date for the Seriti Commission is R24 633 714.86, vat inclusive. This was paid to Bowman, Gilfillan Incorporated Company, who in turn appointed one senior Counsel and two junior Counsel.

(b) (i) and (ii) not applicable to Armscor

     (iii) breakdown of the expenditure is as follows:see the link

http://pmg-assets.s3-website-eu-west-1.amazonaws.com/RNW1669Table-161011.pdf

DEPARTMENT OF DEFENCE

(a) The total amount the Department has paid to date for the Seriti Commission is R 18 817 547.49. This was paid to appointed attorney’s firm Bowman, Gilfillan Incorporated, who in turn appointed three senior Counsel.

(b) The breakdown of the expenditure is a follows

CDLS/R/504/3/1

Item: 35059017 Serie: 11007443730 Legal Fees

2013/14 Financial Year

	Date	Invoice Number	Amount	Funding Total	Year Total
1	31-Oct-13	S6064206	1 104 643.68
		S6066538	2714429.53	3 819 073.21
2	18- Nov-13	S6067788	427343.66
		S6066474	1202855.80	1 630 199.46
3	04-Dec-14	S6069707	1473258.92	1 473 258.92
4	30-Jan-14	S6071637	213630.65	213 630.65	7136162.24

2014/2015 Financial Year

5	18-Apr-14	S6071637	213630.65
		S6075860	262760.26
		S6073864	100496.59	576 887.50
6	06-May-14	S6077431	929360.18
		S6078844	1241211.95	2 170 572.13
7	05-Jun-14	S6081498	1496880.40	1 496 880.40
8	13-Aug-14	S6086140	602399.95
		S6083245	413560.00
		S6082328	340272.04	1 356 231.99
9	08-Aug-14	S6090579	532932.35
		S6087379	416023.34
		S6088837	260047.16	1 209 002.85
10	28-Jan-15	S6095194	127782.11
		S6092750	408815.02	536 597.13	7 346 172.00
2015/2016 Financial Year
11	29-Apr-15	S6101291	2484828.23	2 484 828.23
12	02-Jun-15	S6098299	143553.72
		S6102711	26760.71	170 314.43
13	14-Aug-15	S6104314	234901.81
		S6105771	434471.69
		S6106678	834371.61	1503745.11
		S6108888	176325.48	176 325.48	4 335 213.25
Total Expenditure		18 817 547.49	18 817 547.49

Reply:

1. This was a planned visit to Cuba to his counterpart to strengthen military relations between the two defence forces and to further pay a visit to the SANDF members studying in Cuba to check on their progress.

The Chief of the SANDF did not stop over in France as was previously envisaged to deal with matters pertaining to the Centenary Commemoration of the Battle of Arque la Bataille and Deville Wood – where South African soldiers who died during the World War 1 were laid to rest in France.

2. Travelling expenses are budgeted for by each Service or Division as per their requirements and according to plans.

Reply:

Yes. The appointments were finalised before the end of May 2016.

Reply:

The information required relates to the movement of the VVIP, and for security reasons, the response to this question can only be presented to a closed session of the Joint Standing Committee on Defence.

Reply:

The information required relates to the movement of the VVIP, and for security reasons, the response to this question can only be presented to a closed session of the Joint Standing Committee on Defence.

Reply:

The information required relates to the movement of the VVIP, and for security reasons, the response to this question can only be presented to a closed session of the Joint Standing Committee on Defence.

Reply:

The information required relates to the movement of the VVIP, and for security reasons, the response to this question can only be presented to a closed session of the Joint Standing Committee on Defence.

Reply:

The information required relates to the movement of the VVIP, and for security reasons, the response to this question can only be presented to a closed session of the Joint Standing Committee on Defence.

Reply:

The information required relates to the movement of the VVIP, and for security reasons, the response to this question can only be presented to a closed session of the Joint Standing Committee on Defence.

Reply:

(a) The budget that is allocated for the leasing of the VIP-configured jet for the 2016/17 financial year is R100m.

(b) The Request for Offer (RFO) was issued on the 18th August 2016. After the tender process has been completed and if a successful bid is received, it is anticipated that the aircraft will be delivered to the SA Air Force on the 01st November 2016.

Reply:

a. The DOD currently runs the Defence Transformative Enterprise Development (DEFTED) Program through CSIR.

aa. the aim of the project is to address the defence industry transformation challenges through the development of Defence Black Industrialists. The DEFTED program will support the defence sector black industrialists and entrepreneurs with technical Human Capital Development (HCD), Technology Development (TD) and Enterprise Development (ED).

bb. For the FY2016/17 the budgeted amount is Rm50.4.

cc. A total of thirty (30) jobs have been created during the period under consideration.