Department of Defence Budget & Strategic Plan 2007/08: Briefings by Minister, Airforce & Navy

Meeting report

SECURITY AND CONSTITUTIONAL AFFAIRS SELECT COMMITTEE
4 June 2007
Department Of Defence Budget & Strategic Plan 2007/08: Briefings By Minister, Airforce & Navy

Chairperson: Kgoshi L Mokoena (ANC)

Documents handed out:
Department of Defence’s 2007/08 MTEF Budget (Vote 20)
Strategic Business Plan of the Department of Defence for 2007 (MTEF 2007/08 – 2009/10)

Audio Recoding of the Meeting

SUMMARY
The Department of Defence briefed the Committee on its Strategic Business Plan and budget for 2007/08. It outlined the government’s priorities, cluster objectives, and DOD strategic objectives. These included rightsizing of the DOD, consideration of defence capabilities, the infrastructure, alignment of general regulations  with the Defence  Act, 2002, a review of the White Paper on defence, improving the health of the South African National Defence Force (SANDF) members. Attention would also be paid to improved asset protection, development of the value system to improve the morale, effectiveness and efficiency, information systems, the reserve force and management. The interventions taken were described and the activities of each branch and programmes were fully outlined in the presentation. All defence strategies were derived from the White Paper on Defence 1996, and the Defence Review 1998, and the Defence Review update 2006. Military strategic objectives were to enhance and maintain comprehensive defence capabilities, to promote peace, security and stability, developing the strategy for the reserve force, joint logistics and capital renewal. It was noted that the current force structure and design was not affordable and exit mechanisms were in place to bring numbers down. The Department was implementing its human resource strategy 2010, with particular focus on right sizing, youth development and gender and racial balances. Particular challenges were outlined for the air defence, navy, military health and intelligence and counter intelligence services. The Department’s budget and estimates of expenditure were tabled. The allocation for 2007/08 was R25.9 billion, rising to R28.6 billion in 2009/10. There was average annual growth of 11.9%. Full details were tabled across the programmes.

The major issues in the discussion which followed the presentations were the reduction of flying hours, the Qualified report received by the DOD from the Auditor General, the responsibility border control, the underspending of the DOD despite its staff shortages, the pre-employment HIV/AIDS testing conducted by the SANDF, the termination of integration of ex-combatants, the exit mechanism and re-training of soldiers, the social development aims of the DOD, the capacity of the DOD and the relationship between the DOD and the SANDF and other bodies such as local municipalities, home affairs and private security companies. 

MINUTES
Strategic Business Plan 2007-2010: Briefing by the Department of Defence
Mr Tsepe Motumi, Deputy Director General: Policy, Department of Defence,  presented the Strategic Business Plan of the Department of Defence (DOD) for the Medium Term Expenditure Framework (MTEF) 2007-2010. He outlined the government’s priorities, cluster objectives, and DOD strategic objectives. These included rightsizing of the DOD, consideration of defence capabilities, the infrastructure, alignment of general regulations with the Defence Act, 2002, a review of the White Paper on defence, improving the health of the South African National Defence Force (SANDF) members. Attention would also be paid to improved asset protection, development of the value system to improve the morale, effectiveness and efficiency, information systems, the reserve force and management.

Mr Motumi said that the interventions taken to address these included the designing of the Southern African Development Community (SADC) Mutual Defence Pact, the African Standby Force and the establishment of Continental and Regional “Early Warning Centres’, continued participation in peace support operations in the DRC, Burundi, Ethiopia/Eritrea and the Sudan, and deployment of more than 3000 members in external peace support missions. DOD was in the process of implementing the Human Resource Strategy 2010, with particular focus on youth empowerment and scarce skills development, delivery of new weapons and transporters, conceptualisation of the regiment, and had opened a new training facility for fighter pilots.

Mr Motumi described in detail the activities of each branch and its programmes (see document). He emphasised the destruction of obsolete material which endangered life, plans on capital renewal for landward defence, which would be put in place in this year, full integration of Strategic Defence Package equipment, ensuring operational capacity for peace missions, and implementation of the HR Strategy 2010, which must be visibly nearing completion and must encompass the mainstreaming of gender.

Mr Motumi noted that the Defence Strategy was derived from the White Paper on Defence 1996 and the Defence Review 1998 and the Defence Review update 2006. Military strategic objectives were to enhance and maintain comprehensive defence capabilities, to promote peace, security and stability, developing the strategy for the reserve force, joint logistics and capital renewal.

The current force structure and design was presently not affordable. The authorised posts stood at 70 000, but the Defence Update, which was to be presented year for Cabinet approval, envisaged a viable force design of 85,375 (including Military Skills Development System). Exit mechanisms were being used to bring the numbers down. The new organogram was listed.

Mr Motumi indicated that the risks for air defence included an insufficient budget to meet commitments and required maintenance, deterioration of main equipment, weapons systems and ground support infrastructure, and retention of suitably qualified and experienced personnel. Flying hours were to be scaled down. In maritime defence, challenges included spares and support contracts for strategic defence package vessels, deterioration of facilities and equipment due to under funding and availability and development of personnel. The MSDS programmes aimed to address these problems. Certain stores depots and maintenance units would be closed down and their functions absorbed by existing units. Similar problems faced the Military Health Service, with deterioration of hospitals and equipment exacerbated by the high rate of medical inflation and high workload of health professionals. Reprioritisation had taken place and incentives were introduced. The Defence Intelligence and Counter-Intelligence Capabilities were challenged by an inability to collect digital information and imagery efficiently, deteriorating conditions of the headquarters building, and retention of experienced personnel.
 
Budget Briefing 2007/08: Department of Defence
Mr Banie Engelbrecht, Chief Director of Budget Management, DOD, presented the Department of Defence’s 2007/08 MTEF Budget and estimates of expenditure. He gave the historical perspective, the submission, and indicated that the allocation for 2007/08 was R25.9 billion, rising to R28.6 billion in 2009/10. There was average annual growth of 11.9%. Mr Engelbrecht noted that the administration programme had doubled due to devolution of funds from Department of Public Works (DPW), and a 27% increase for departmental direction catered for relocation of the National Conventional Arms Control Committee (NCACC). For landward defence there was an increase of 41.6% in general training to expand conventional reserves training and to account for MSDS member intake. New generation artillery equipment was being commissioned. Air defence and maritime defence both showed an 8.2% annual average growth. The Military Health Support budget had also increased to cater for the increased MSDS intake and for training of members in emergency care for 2010. Defence intelligence showed a 623% increase for strategic direction, due to the centralisation of personnel related expenditure, and 13.9% increase in support services to take account of recruitment, training and infrastructure rejuvenation at training units. Details of increases were tabled also for Joint Support (12% annual growth over MTEF), Force Employment (7% growth), and the Special Defence Account (1.1% growth). Full details of the new equipment were also tabled.

Discussion
The Chairperson asked that the Committee be briefed about the most recent Constitutional Court judgment on the matter of labour rights. 

Lt-General Jurinus Jansen van Rensberg, Chief: Corporate Staff, SANDF, replied that although SANDF did not yet have a copy of the full written judgment some points had found in favour of the SANDF, and some against.

The Chairperson asked the visiting delegation to say something about the role the DOD had played in the strikes that had taken place.

Vice-Admiral Refiloe J Mudimu, Chief, SA Navy, replied that emergency care practitioners, general practitioners and general assistants had been deployed in various regions. 

The Chairperson asked that the DOD comment on the qualified audit report it had received from the Auditor General.

Mr Motumi replied that a “Clean Audit” plan had been put in place to remove the qualifications. The DOD would come back to the Committee in the future in this regard.

The Chairperson responded that this report tarnished the image of the Department and needed some serious attention.

Mr D Worth (DA:  Free State) asked what was being done to reduce the risk with regards to unstable ammunition and how many tons were being destroyed each year.  He referred specifically to the recent explosion in Mozambique.

Lt-General Jansen van Rensberg replied that the DOD had received a R50 million top-up from the National Treasury to deal with this problem.  Subsequently, most of the unstable ammunition had already been discarded and removed.  DOD was moving forward with the Mobile Plant and work was being done to improve the situation.  It was not the same as the situation in Mozambique.

Mr Worth was concerned with the cutback of flying hours.  He asked whether there were, in fact, qualified pilots to fly the new Gripens.  He asked whether a 6,5 % budget increase was sufficient in this regard.

Mr N Mack (ANC: Western Cape) was also concerned wit the reduction of flying hours and asked whether pilots used simulators instead. 

Lt-Gen Jansen van Rensberg replied that there would be budget changes in-year. The Gripens were being actively used.  The pilots were being trained but there was indeed a shortfall in the budget.

Mr Mudimu added that simulators were used to breach the gap.

Dr F van Heerden (FFP, Free State) asked how well the fighter pilots were being trained.  He asked whether these pilots were being trained by South Africans or by trainers from the countries supplying the aircraft. 

Lt-Gen Jansen van Rensberg replied that trainers from the Zimbabwe Air Force were used and they were very well-trained in running their systems. 

The Chairperson asked whether the SANDF assisted other countries in training fighter pilots and how South Africa benefited from this. 

Lt-Gen Jansen van Rensberg replied that the SANDF did not train foreign fighter pilots.

Mr Worth asked whether it was worth it to manufacture certain equipment locally, or whether it should in fact be imported.

Lt-Gen Jansen van Rensberg replied that the public had been misled, and that five prototypes of equipment had been ordered over the next two to three years, as soldiers and equipment needed to be able to deal with extreme weather conditions.

Mr Worth asked what was happening with the Rooivalk helicopter.

Lt-Gen Jansen van Rensberg replied that Denel had been unsuccessful in its last attempt to sell the prototype to Turkey. They had been beaten in terms of price. The future of the Rooivalk was being looked at. 

Mr Worth asked what the situation was with regards to border patrols and whether this had been turned over to the South African Police Service (SAPS).

Mr M. Mzizi (ANC, Gauteng) also asked about border control.

Lt-Gen Jansen van Rensberg replied that a government decision had been made that DOD would withdraw by March 2009.  So far DOD had withdrawn from the Namibian and Botswana borders but were still deployed on the Zimbabwean, Mozambican, Lesotho and Swaziland borders.  The SAPS received an increase in funding in order to take over this role.  However, the SANDF would always be there to support them. 

Dr van Heerden asked what the New Military Justice System was.

Lt-Gen Jansen van Rensberg replied that this made sure that the appropriate Bills and Acts were presented by the DOD to parliament and that the DOD adhered to the legislation correctly.

Dr van Heerden asked for more information regarding the rural safety mentioned in the strategic plan.

Lt-Gen Jansen van Rensberg replied that the rural safety was part of the task of Homeland Defence and Border protection and that SAPS had been trained and funded for it.

Dr van Heerden asked whether the IT-based internal control systems were in line with the Electronic Communications Security (Pty) Ltd Act of 2002.

Lt-Gen Jansen van Rensberg replied that the DOD was working closely with the guidance of this and other acts.  It was critical that they upgrade their systems in order to enhance Human resources, finance and logistical sectors.

Dr van Heerden asked what the future of Simonstown as a naval base was.

Mr Mudimu replied that the naval base at Simonstown would remain and it would be able to be used for other jobs to generate some other income. 

Mr J le Roux (DA:  Eastern Cape) asked what the intake policy was with regard to quotas.

Dr van Heerden referred to the responsibility to establish and develop a “non-racial, non sexist and non-discriminatory culture within the Defence Force”.  He asked whether this also pertained to the matter of appointments.

Lt-Gen Jansen van Rensberg replied that the Department had passed the strategy Human Resource 2010 (HR2010) which was aimed at balancing the demographics within the Department.  The HR2010 was currently being rewritten.

Mr le Roux asked about the continual gradual withdrawal from internal situations of the SANDF, and whether the SAPS could cope, especially with the 2010 World Cup.

Lt-Gen Jansen van Rensberg replied that the SANDF were involved with SAPS with regards to 2010 World Cup.  SAPS had received additional funds for this. 

Mr le Roux asked if it was right to be spending so much money on technology when the DOD was struggling to perform everyday tasks.

Lt-Gen Jansen van Rensberg replied that it was necessary to do this spending. The SANDF was in a fortunate position because the National Treasury had given a top-up in allocation for the new technology and equipment. However, this was one of the shortfalls of the budget.

Mr le Roux asked what the estimated costs were of the relocation of the DOD Headquarters.

Lt-Gen Jansen van Rensberg replied that the relocation was of high priority for the DOD.  It was working with the National Department of Public Works (NDPW) in this regard.  Final costs were not yet available. 

Mr le Roux referred to the performance versus obligations referred to in the MTEF Budget document.  He wondered if DOD had been over-charged on some items, or if they were buying the incorrect items.

Lt-Gen Jansen van Rensberg replied that this was the responsibility of the Department of Trade and Industry. 

Mr Mack asked if there was any way to train unemployed people to halve unemployment and increase capacity.

Lt-Gen Jansen van Rensberg replied that a works regiment project was being put in place to support other departments and sectors.  They were also looking at the numbers of MSDS intakes and trying to encourage youngsters to come into the fold.  DOD was awaiting an increase from National Treasury in this regard.

Mr Mack asked whether the Exit Mechanism referred only to age or whether it was voluntary.  He asked whether people would be re-trained when they exited.  He feared that they would not receive support and would resort to crime.  He asked whether the DOD had a formal relationship with private security companies that could help to place these ex-force members.

Lt-Gen Jansen van Rensberg replied that the exit mechanism had nothing to do with age.  Any member could apply and this would then need to be approved by the Command Structure.  They were then reskilled in the Service Corps and relationships with the tertiary institutions were in place.  However, there was no formal relationship with the private companies.  Some people had been placed in SASOL, Gautrain and Correctional Services. 

Mr Mack asked whether the DOD had information regarding nuclear capabilities stored somewhere, should the need for such technology ever arise.

Lt-Gen Jansen van Rensberg replied that this issue was highly sensitive and information could not be shared. 

Mr Mack asked whether the integration of ex-struggle combatants had been completed and what was to be done with those people who had not been integrated.

Lt-Gen Jansen van Rensberg replied that legislation indicating  a cut off date had been passed and this would be a finite process.

The Chairperson said that some people had complained they were unfairly excluded. 

Mr Motumi said that the Termination of Integration Intake Act had been passed as it was thought that enough time had passed, and that this process had included public hearings. 

Mr Mack expressed concern over the defence force’s health status and asked how much HIV/AIDS would detract from its capabilities.

Lt-Gen Jansen van Rensberg replied that health status needed to be looked at in terms not only of HIV, but of other factors, such as age of the force.  There were two major projects with regards to HIV/AIDS.  The first dealt with creating awareness amongst officials and soldiers about AIDS and the dangers thereof.  The second project aimed to utilise anti-retroviral (ARVs) treatment under controlled circumstances.  It had so far been successful but needed to run its full course.   The Chaplain of the SANDF has a value-based training program of which HIV was a part. Upon entering the SANDF, individuals had to undergo a battery of tests including an HIV/AIDS test. 

The Chairperson asked for clarity on the issue of HIV/AIDS testing.  He was uncertain as to how it could be voluntary testing, if it was compulsory for entry into the SANDF.

Mr Motumi and Lt-Gen Jansen van Rensberg reiterated that the compulsory testing was pre-employment testing as part of the medical procedure, and therefore those making application to the Force were aware that the tests would be conducted, and must have consented to them by the very fact of continuing with their application. There was also In-service Contingent testing, and if members were proved to be unfit in any part of this, different measures were taken and their scope of service was decreased.  It was necessary to have strong, fit members of the SANDF so that they could undergo the strenuous training involved. 

Mr Mack asked how the Civil Union Bill affect the capabilities of the SANDF and whether the policies of the latter were in line with this Bill. 

Lt-Gen Jansen van Rensberg replied that this Bill was fully accommodated. 

Mr Mack asked how the DOD assisted in stopping drug trafficking. 

Lt-Gen Jansen van Rensberg replied that this was the task of SAPS.

Mr L Fielding (DA, Northern Cape) asked whether the DOD had a good relationship with the local municipalities.

Lt-Gen Jansen van Rensberg replied that they did have a good relationship.  They sat on the National Disaster Committee with members of local government so that they could monitor and secure this relationship.  An example of this was the role the SANDF was playing in alleviating the current strike. 

The Chairperson asked for a report on the shooting at Kroonstad and about the tension between the young officer and those in charge.

Lt-Gen Jansen van Rensberg replied that a formal board of enquiry was in place and the corporal had been removed.

Lt-Gen Jansen van Rensberg asked the Committee for their support in gaining more funding.

The Chairperson commented that it was hard to fight for more funding when the Department was underspending in some areas.   He did, however, sympathise with the budget cut from 16% to 4%.

Mr J (Rautie) Rautenbach, Chief Director Budget Management, DOD, explained that the budget was compiled over an 18 month process, during which priorities were changed.  Thus, it was not always an underspending but sometimes a saving. For the past four years, the DOD had underspent its budget. 

The Chairperson asked who paid when work was done for other departments.

Mr Rautenbach replied that this depended on the circumstances. 

The Chairperson asked how effective the campaign was to stop people from fishing illegally and why this was happening.

Mr Mudimu replied that people came for perlemoen.  The navy was, however, fully prepared for crime at sea.

The Chairperson asked how disciplined the members of the military and navy were.  Some members were known to commit suicide and kill their families.  He asked whether there was a specific unit to support SANDF members, and how defence force members in other countries were supported. 

Lt-Gen Jansen van Rensberg replied that the DOD was continually looking at how to strategically improve discipline.  The SANDF was a microcosm of society and as such suicide and murder would occur.  Commanders were, however, trained to be lookouts.  Psychologists, social workers and chaplains were there to support members, including those overseas.  Project Resilience was a high priority and was aimed at supporting family members of SANDF members.  The Sergeant Major had put forward a plan of discipline.

Mr Mudimu added to this that the SANDF was built on discipline.  Issues of trade unions in the military tended to erode on discipline and the taking of orders. 
 
The Chairperson asked how the recruitment strategy was taking place.

Lt-Gen Jansen van Rensberg replied that there were teams that went to schools.  The DOD advertised in Sunday papers and there were two television adverts and two radio adverts that would soon go out. 

The Chair asked what happened to members who were declared unfit to handle ammunition.

The Chair asked how many uniformed and civilian SANDF members there were.

Mr Motumi replied that there was a breakdown of the figures in documents.

The Chairperson asked about the debate about sending South African troops to support regional actors.  He expressed a concern that RSA was being exploited by other countries, and especially by the African Union.  

Mr Motumi replied that the deployment of troops was often pursuant to requests by the United Nations, African Union or SADC, and was often following the regional principles to which South Africa, as a member of the bodies, was bound. South Africa needed to concentrate on collaborative peace initiative efforts so as to reduce the burden on the continent and the region.

Mr Mudimu added that part of the challenge of deployment was to look at what was being left behind when the troops left. 

The Chairperson asked how facilities and equipment were being maintained.

Lt-Gen Jansen van Rensberg replied that the Repair and Maintenance Programme (RAMP) was concerned with the upkeep of facilities. Five priority bases had been identified.   The NDPW had had a meeting with the Portfolio Committee on Defence on the RAMP initiative.  Aging equipment was a constraint and was being attended through a range of programmes.

The Chairperson commented that other departments complained about the NDPW.

Mr Motumi said that they had faced considerable criticism. 

The Chairperson asked what the functions of the Secretary of Defence and the Chief of the Defence Force were.

Mr Motumi referred back to the presentation.  The Chief of the Defence Force was the Commander of the armed forces. 

The Chairperson asked what the relationship was between the forces at the borders and Home Affairs officials. 

Mr Motumi replied that the conduct of the DOD members was exemplary.  The DOD played a role in the Border Coordinating Control Committee

The Chairperson asked how the SANDF and DOD assisted communities to increase capacity through social development.  He also asked how they assisted other departments.

Lt-Gen Jansen van Rensberg replied that obsolete material was donated to schools.  DOD were also donating old artillery to SADC countries. 

Mr Mudimu added that two armour boats had been donated to Namibia.  Equipment had also been donated to Mozambique and Malawi.  Engineers were also involved in programmes to teach maths and science to school children during the evenings.  They were also training the NDPW.

Mr Motumi added that the Department attempted to help other departments where they could.  He cited the work the SANDF had done in Mpumulanga during the height of Foot & Mouth Disease epidemics.

Mr Engelbrecht added that the DOD was busy establishing a Defence Evaluation and Research Institute to support a science and technology strategy of the government.  Part of the planning included the education of young scientists with regards to science, maths and research.

The Chairperson asked what the vacancy rate of the DOD was.

Mr Motumi replied that there was an 18% rate specific to the military but that the figure was being revised every quarter.  At a senior and medium level DOD was working to address the vacancies.  There was a longer time lag in filling civilian posts due to the necessity to advertise in newspapers and so on.

Mr Antonie Visser, Director, Strategic Management, DOD, added that one needed to be careful when looking at post-structures of the Department.  One needed to look at affordable, funded posts.

Mr Mzizi asked for clarity on the Cluster Objectives of the DOD, specifically with regards to the African Agenda and how many countries were assisting in the implementation of NEPAD.

Mr Motumi replied that DOD was involved in working with other countries and were involved in exercises. 
 
The Chairperson asked what the gender balance within the Department was.

Lt-Gen Jansen van Rensberg replied that there was one female Major-General, two women in the Peace SAPS, sixteen women Generals and admirals, and two Civilian Peace SAPS female members at the top level structures. 

The Chairperson asked whether the e-procurement policy was now safe.

Mr Visser replied that DOD was adhering to all the prescripts in terms of procedures but there were problems in terms of the system. There were huge costs when it needed to be rolled out to all the units. 

The Chairperson asked why the outsourcing recruitment had occurred.

Mr Motumi replied that this had been misunderstood as DOD only out-sourced the advertising.  The HR department dealt with recruitment.

The Chairperson asked why the Department was right-sizing when they appeared to have a shortage of staff. 

Mr Motumi relied that the right-sizing would not lead to a loss of jobs.  In some departments there were too many members and in others too few. People needed to be shifted around. 

Mr Mack asked how large and ready the defence capability and reserves were if a situation should arise when they were needed.

Lt-Gen Jansen van Rensberg replied that there was currently a debate on defence reserves. There were not enough numbers in the reserves.  However, work was being done on the Defence Reserve Strategy and recruitment. 25 % of all slots on ships were allocated to Defence Reserves as part of an integral one-force concept.  Likewise, the air force was using defence reserves.  They were not ready but plans were in place.

Mr Mack asked if the DOD had the capacity to make RSA safe.  With regards to the increasing petrol price, he asked if there was there enough fuel to keep the SANDF going. 

Lt-Gen Jansen van Rensberg replied that DOD was as ready as they could be. They needed more reserves, but the diplomacy force was in place as were the early warning systems.  The fuel price influenced the budget hugely and DOD did not always get adjustments for it. They had certain fuel reserves but not enough.

The meeting was adjourned.