11 DEPARTMENT OF DEFENCE AND MILITARY VETERANS (DOD&MV) (DEFENCE SECRETARIAT [DEF SEC] AND SOUTH AFRICAN NATIONAL DEFENCE FORCE [SANDF]) ANNUAL PERFORMANCE

11

DEPARTMENT OF DEFENCE AND MILITARY VETERANS (DOD&MV)

(DEFENCE SECRETARIAT [DEF SEC] AND SOUTH AFRICAN NATIONAL DEFENCE

FORCE [SANDF]) ANNUAL PERFORMANCE PLANS

2013

22

Aim Introduction Part 1: Strategic Overview

DOD Vision and Mission Constitutional and Legislative Mandates DOD Macro Organisational Structure (2008) MOD&MV Strategic Priorities: FY2013/14 MOD&MV Strategic Focus Areas: FY2013/14

Part 2: Financial Allocations of the Defence Programme: FY2013/14 Medium-Term Expenditure Framework (MTEF) Budget Summary Financial Allocation of the Defence Programme

SCOPE

33

Part 3: DOD Core Performance Information DOD Annual Selected Performance Indicators

(Estimate of National Expenditure [ENE] and Targets for the FY2013/14)

DOD Performance Information EA OASS link with Planning Instruments Public Entities reporting to the Executive Authority Organs of State reporting to the Executive Authority

SCOPE (CONT.)

44

Part 4: DOD FY2013/14 MTEF Budget Plan Financial performance as at 31 March 2013 Baseline reductions Requirements to MTEC Budget cut as per November 2012 allocation

letter Further budget cut as per February 2013

allocation letter MTEF allocations: 2013/14-2015/16 Budget reduction implications Vote 22: Allocation per main programme:

FY2013/14 Vote 22: Allocation per economic

classification: FY2013/14 Concluding remarks

SCOPE (CONT.)

55

AIM

To present to the core corporate overview of the Def Sec and SANDF APPs for 2013 to the

Portfolio Committee of Defence and Military Veterans.

66

INTRODUCTION• Planning instruments aligned to outcomes based

principles of government (Change [Core Performance Information] and Sustained Agenda).

• Aligned with National Treasury Framework for SP and APP.

• DOD APPs aligned to FY2011/12 – 2015/16 Strategic Plans.

• DOD First Draft APP submitted to NT/Presidency (DPM&E) during August 2012.

• DOD Second Draft APP submitted to NT/Presidency (DPM&E) during November 2012.

• DOD APPs tabled in Parliament on 13 March 2013 (60 Copies and 1x electronic CD).

7

PART 1: STRATEGIC OVERVIEW

88

DOD VISION

“Effective defence for a democratic South Africa”.

DOD MISSION

“To provide, manage, prepare and employ defence capabilities commensurate with the needs of South Africa as regulated by the Constitution, national legislation and Parliamentary and Executive direction. The above will be

provided through the proper management, provision, preparedness and employment of defence capabilities, which are in line with the domestic and global needs of

South Africa”.

99

LEGISLATIVE REQUIREMENTS FOR THE DEVELOPMENT OF THE APPs

Public Service Regulations:

Part III 3B. indicates the requirements for the Executing Authority to prepare a Strategic Plan.

National Treasury Regulations:

Chapter 5, (5.1 and 5.2) indicates the requirements for the Accounting Officer to prepare plans.

National Treasury Framework for SP and APP:

Departments are required to produce and table an APP including forward projections for a further two years, consistent with the medium-term expenditure framework (MTEF) period, with annual and quarterly performance targets, where appropriate, for the current financial year and the MTEF.

National Treasury Framework for Programme Performance Information.

1010

Legislation ResponsibilitiesConstitution of the Republic of South Africa

Section 199: The defence force is the only lawful military force in the Republic.Section 200: Defence force (Structuring/Mandate).Section 201: Political responsibility. Section 202: Command of defence force.Section 203: State of national defence.Section 204: Defence civilian secretariat.

Defence Amendment Act, 2010 (Act No. 22 of 2010)

Section 4: Appointment of the Military Command Council.Section 53/104: Rendering of service by the Reserve Force.Section 62: Establishment and Functions of the Defence. Service Commission.Section 62 (A): Establishment and composition of the Defence Service Commission.

CONSTITUTIONAL AND LEGISLATIVE MANDATES

1111

Legislation Responsibilities

Public Service Act, 1994(Proclamation 103 of 1994)

Section 7 (3)(a): Each department shall have a head.Section 7 (3)(b): Subject to the provisions of paragraphs (c) and (d), a head of department shall be responsible for the efficient management and administration of his or her department, including the effective utilisation and training of staff, the maintenance of discipline, the promotion of sound labour relations and the proper use and care of State property, and he or she shall perform the functions that may be prescribed.

Public Finance Management Act, 1999 (Act No 1 of 1999)

Section 36: Appointment as the Accounting Officer.

Military Ombud Act, 2012 (Act No. 4 of 2012)

Provides for the establishment and mandate of the Office of the Military Ombud.

CONSTITUTIONAL AND LEGISLATIVE MANDATES (CONT.)

1212

DOD MACRO ORGANISATIONAL STRUCTURE (2008)

Ministry of

Defence

LEVEL 0

LEVEL 1

LEVEL 2

Department of Defence

DefenceSecretariat

SA National Defence

Force

Human Resource Division

DefenceLegal

Service Division

DefenceInspectorate

Division

DefenceForeign

Relations Division

DefencePolicy,

Strategy and Planning Division

Financial Management

Division

DefenceMaterial Division

DefenceInternational

Affairs

Internal Audit

Division

DefenceEnterprise Information

Systems Management

Division DOD CENTRAL STAFF

Joint Operations

DivisionSA Army SA Air Force SA Navy

SA Military Health Service

DefenceIntelligence

Division

Corporate Staff Division

Military Policy

Strategy & Planning

DefenceReserves

Chaplain General

Logistics Division

Military Police Division

Command & Mngmnt

Information Systems Division

Sec DefStrategic Plan

and Annual Performance

Plan

Sec DefStrategic Plan

and Annual Performance

Plan

SANDF Strategic Plan and Annual

Performance Plan

SANDF Strategic Plan and Annual

Performance Plan

0

1

2 Services/Divisions (APP)

Overarching Executive Authority’s Policy Statement

1414

MOD&MV PRIORITIES: FY2013/14

Priority 1: Enhancement of the South African National Defence Force’s (SANDF’s) Landward Defence Capabilities. The Landward Defence Capability has not enjoyed the advantage of being part of the Strategic Defence Packages (SDP) and is to be modernised taking into consideration the financial expenditure ability of the SA Army and the overall DOD and ARMSCOR procurement systems and processes capabilities which support such expenditure.

Priority 2: Maritime Security. The South African Maritime Strategy has been developed and is currently in the process of being integrated within the broader Southern African Development Community (SADC) Maritime Security Strategies. The SANDF will continue to execute counter-piracy operations in support of the Mozambican Defence Force (MDF) in the Mozambique Channel amidst the on-going sourcing of appropriate funding levels for such operations.

1515

MOD&MV PRIORITIES: FY2013/14 (CONT.)

Priority 3: Force Rejuvenation (Job Creation). The DOD will endeavour to create job opportunities within the defence industry in accordance with approved DOD projects.

Priority 4: Enhancement of the SANDF’s Peacekeeping Capability (SANDF Deployability). The role of the SANDF in promoting peace and security in the region and on the African continent under the auspices of the United Nations (UN), African Union (AU) and hybrid Peace-Support Operations (PSOs), necessitates the enhancement of the SANDF’s peacekeeping capability that will include the SANDF’s Forward Deployment Capability.

1616

MOD&MV PRIORITIES: FY2013/14(CONT.)

Priority 5: National Youth Service (NYS). The execution of the NYS programme will continue during the FY2013/14 MTEF. For the year ahead it is envisaged that the NYS policy framework once considered, will lead to the implementation of the NYS policy framework.

Priority 6: Revitalisation of the Reserves. The Reserves will continue to be transformed and revitalised to fulfill their primary role of providing a large component of the conventional landward capability of the SANDF whilst at the same time supplementing peace support missions conducted by the Regulars.

1717

MOD&MV PRIORITIES: FY2013/14 (CONT.)

Priority 7: Restructuring and Support of the Defence Industry. The restructuring of the Defence Industry will focus on current and future defence capability requirements in support of the Defence mandate. The work of the Defence Industry Council will require strengthening.

Priority 8: Department of Defence Works Capability. The DOD has steadily progressed with the establishment of the Defence Works Formation which is currently functional and executing identified renovation projects for facilities occupied by the DOD in close co-operation with the National Department of Public Works (NDPW). A plan, in conjunction with the Council for Scientific and Industrial Research (CSIR), has been developed to establish a Joint Interim Operations Centre (JIOC) to manage the migration of functions and responsibilities wit respect to facilities management and maintenance from the NDPW to the DOD during a period agreed upon by both Departments.

18

MOD&MV STRATEGIC FOCUS AREAS

Military Skills Development System (MSDS). The MSDS shall continue to be a means for force rejuvenation as a component of the Human Resources (HR) Renewal Strategy and is not regarded as a broad initiative for job creation.

The Defence Review. Given that the Defence Review is reaching its final stage, planning for the short and medium term are to be undertaken in keeping with considerations for the possible future implications for defence as contained within the current draft Defence Review.

Transformation within the SANDF. The representation of both men and women in command structures of the SANDF shall remain a key focus area for the FY2013/14.

19

MOD&MV STRATEGIC FOCUS AREAS (CONT.)

DOD Grievance Procedure. The DOD grievance procedure must be fully functional and effective in protecting members of the department from abuse and illegality.

Reconfiguration of Force Number Allocation. To ensure that force numbers do not necessarily demonstrate the members’ time of joining in the DOD, the department will revisit the structuring of force number allocation.

Maintenance and Enforcement of Discipline. All Chiefs of Services, Devisions and Unit Commanders are responsible for discipline in the DOD. There should be a zero tolerance on all forms and maifestation of ill-discipline, including the abuse of power by commanders. Furthermore , the DOD legal system will be strengthened to attend to ill-discipline in the SANDF.

20


DOD Audit Findings. The DOD’s focus in the previous financial years has been on the introduction of specific interventions to strengthen internal DOD controls in order to eliminate current and possible future audit qualifications. For 2012 particular emphasis was placed on addressing the single remaining asset management qualification, as well as other matters of importance and the general enhancement of financial management and internal controls. Operation Clean Audit, an internal departmental co-ordinating mechanism, has served as such a mechanism to strengthen the DOD internal controls in the various resource areas of the department. For the FY2013/14 human resources, information technology, procurement and accounting shall be strengthened in order to avoid possible audit reports.

21


DOD Planning Instruments. Departmental planning will continue to be aligned with government’s outcomes oriented strategic planning, budgeting, risk management and monitoring and evaluation processes.

Corruption and Fraud. The DOD continues to adopt a zero-tolerance attitude to all forms of corruption and fraud within the department and internal infrastructures to combat fraud is in the process of being fully capacitated.

22

PART 2: FINANCIAL ALLOCATIONS OF THE DEFENCE PROGRAMME:

FY2013/14 MEDIUM-TERM EXPENDITURE FRAMEWORK (MTEF) BUDGET

SUMMARY

2323

FINANCIAL ALLOCATIONS OF THE DEFENCE PROGRAMME

Main Programme2013/14 2014/15 2015/16

R'000 R'000 R'000

Administration 4,434,602 4,778,369 5,096,303

Force Employment 3,283,875 3,423,185 3,647,456

Landward Defence 13,853,840 13,992,816 15,145,567

Air Defence 6,250,213 7,210,275 7,483,684

Maritime Defence 3,171,066 3,651,493 3,719,314

Military Health Support 3,642,498 3,791,342 3,904,539

Defence Intelligence 762,405 789,858 825,822

General Support 4,844,844 5,058,126 5,298,824

TOTAL 40,243,343 42,695,464 45,121,509

2424

PART 3: DOD CORE PERFORMANCE INFORMATION

2525

DOD ESTIMATES OF NATIONAL EXPENDITURE (ENE) FY2014/15 MTEF

DOD ESTIMATES OF NATIONAL EXPENDITURE (ENE) FY2014/15 MTEF

• The following high level criteria informs (amongst others) the identification of the DOD ENE on an annual basis:

–Level 0/1 Core Indicator.–Linked to the legislative / policy (sustained) mandate.–Linked to Output Deliverables.–Linked to major funding initiatives.–Have trendable information.–Linked to the MTSF Outcomes.–Linked to National Development Plan (NDP).

2626

27

DOD ANNUAL SELECTED PERFORMANCE (ENE) INDICATORS AND TARGETS FOR THE

FY2013/14

Indicator ProgrammeAnnual Performance

Past Current Projected

2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16

Percentage (%) compliance with the SADC standby force

agreement and South African

Pledge

Force Employment

- - 100% 100% 100% 100% 100%

Total number of defence attaché

offices

Admini-stration

37 37 39 40 40 40 40

Percentage (%) compliance with

number of ordered commitments

(external operations)

Force Employment

- 4 3 4(100%)

6(100%)

6(100%)

6(100%)

28


FY2013/14(CONT.)



2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16

Percentage (%) compliance with

number of ordered commitments

(internal operations)

Force Employment

5 5 4 5(100%)

4(100%)

4(100%)

4(100%)

Number of joint, interdepartmental

and military exercises conducted

per year

Force Employment

8 8 6 8 9 8 8

Number of military skills development

members in the system per year

Administration 8 874 8 662 11 213 6 673 4 208 4 420 4 807

29


FY2013/14 (CONT.)



2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16

Number of reserves utilised

per year

Administration 13 352 12 362 15 316 12 900 24 243 23 491 22 882

Number of force employment hours

flown per year

Air Defence 11 099 12 754 11 256 10 500 6 300 6 300 6 300

Number of hours at sea per year

Maritime Defence

8 236 12 945 14 088 35 000 22 000 22 000 22 000

Number of landward sub-units

deployed on border

safeguarding

Force Employment

- - 7 11 13 14 19

3030

PUBLICENTITY

LEGISLATIVE MANDATE

ARMSCOR ARMSCOR’S mandate is derived from the ARMSCOR Act No. 51 of 2003 to meet the defence materiel, technology, research development, analysis, test and evaluation requirements of the Department of Defence.

Reserve Force Council (RFC)

In terms of section 48 of the Defence Act, Act 42 of 2002, the RFC is a consultative and advisory body representing the Reserve Force in order to promote and maintain that Force as a integral part of the Defence Force and must be consulted on any legislation, policy or administrative measures affecting the Reserve Force.

Castle Control Board

The Castle Control Board as a public entity under the PFMA, Act (Act No 1 of 1999), Section 1, has the mandate to manage and protect the Castle of Good Hope on behalf of the MOD&MV having ultimate ownership responsibility for the Castle.

PUBLIC ENTITIES REPORTING TO THE EXECUTIVE AUTHORITY

3131

ORGAN OF STATE LEGISLATIVE MANDATE

Department Of Military Veterans The Military Veterans Act, (Act No 18 of 2011) provides the mandate and seeks to provide national policy and standards on socio-economic support, including benefits and entitlements, to military veterans and their dependants.

Defence Force Service Commission(DFSC)

The Defence Force Service Commission was established in terms of Section 62A of the Defence Amendment Act, (Act No 22 of 2010).

Office Of The Military Ombud The mandate of the Office, which is derived from the Military Ombud Act, (Act No 4 of 2012), is to investigate complaints lodged in writing by identified members / sources.

ORGANS OF STATE REPORTING TO THE EXECUTIVE AUTHORITY

• DOD Performance Information continues to mature over the short and medium term. The approval during March 2013 of the first DOD Performance Information Plan (PI Plan) “Road Map” for the FY2013/14 to FY2015/16, as prescribed by the NT Performance Information Handbook 2007, highlights in detail the focus areas that will enable structured refinement of DOD Performance Information during the current MTSF period and beyond. These areas include amongst others the following:

Integrated Strategic Management Enabler. Detailed performance reports based on the actual DOD Performance Information to ensure auditability and uniformity of reporting and base-line determination (target setting) through an electronic/automated DOD Integrated Strategic Management Enabler (ISME).

Performance Information (PI) Design. The development of core DOD (mandate based) PIs and associated technical data sheets. Performance Indicators are design to improve their relevance, well-defined, verifiability, cost-effectiveness, appropriateness and reliability.

3232

DOD PERFORMANCE INFORMATION

PERFORMANCE INFORMATION (CONT.)

The DOD PI Plan (a three year strategy) will furthermore facilitate the following:

–The identification of PIs used to measure DOD programme performance (PI Framework), linked to budget allocation/expenditure.–The source data used to construct the indicators.–The storage and accessibility of PI data.–The use of PI in DOD decision making.–Criteria for PI selection.

A comprehensive DOD PI Implementation Plan will be implemented during the FY2013/14 MTEF to ensure the realisation of the PI Plan (strategy) to improve current PI identification, development, implementation and reporting in support of the Defence mandate.

The development of the first automated DOD Integrated Strategic Management Enabler (ISME) will ensure the integration of the planning, budgeting, reporting and risk management functions within Defence.

33

DOD LOGICAL MODEL (OUTCOMES BASED PLANNING

APPROACH)

Economy

Efficiency

Equity

Effectiveness

Performance Measures

34

35

PERFORMANCE INFORMATION

Description of DOD Outputs Description of Performance Indicators Responsibility/Programme

DOD Output 1: Conduct ordered Defence Commitments in accordance with Government policy and strategy

Percentage (%) Compliance with Force Levels for external operations.

C SANDF (Force Employment)

Percentage (%) Compliance with serviceability of main equipment of external operations.


Percentage (%) of the value of claims reimbursed by the UN/AU recognised.


Percentage (%) Compliance with self-sustainment of personnel.


Number of landward sub-units deployed on Border Safeguarding.


Percentage (%) Compliance with Number of Ordered Commitments.


DOD Output 2: Provide mission-ready Defence capabilities

Percentage (%) Compliance with Joint Force Employment (JFE) Requirements.


36


Description of DOD Outputs

Description of Performance Indicators Responsibility/Programme

DOD Output 3: Provide sound Defence direction

Percentage (%) Adherence to DOD governance promulgation schedule.

Sec Def / C SANDF (Administration)

Development of the NYS Policy. Sec Def (Administration)

Number of positions filled against allocated quota for international institutions.

C SANDF (Defence Intelligence)

DOD Output 4: Ensure Defence compliance with Regulatory Framework

Number of adverse audit findings. Sec Def (Administration)

Percentage (%) Compliance with submission dates of DOD statutory documents.

Sec Def (Administration)

Percentage (%) Deployments including training exercises, where applicable, supported with

appropriate legal instruments.

Sec Def(Administration)

Number of incidents of fraud and corruption investigated.

C SANDF (General Support)

3737

Description of DOD Activities


Activity 1: Administrate the DOD

Projected number of deliberate crime prevention operations. C SANDF(General Support)

Percentage (%) Achievement of signed and submitted Performance Agreements by DOD SMS members.


Percentage (%) Military court cases outstanding. C SANDF (Administration)

Percentage (%) PSAP disciplinary cases finalised within 90 days in the DOD.


Percentage (%) Litigation settled in favour of the DOD. Sec Def (Administration)

Percentage (%) Collective grievances and disputes resolved. C SANDF (Administration)

Percentage (%) Criminal cases finalised. C SANDF (Administration)

DOD Enterprise Risk Management maturity level. Sec Def (Administration)

Established DOD policy research capability. Sec Def (Administration)

DOD Management Performance Assessment Tool (MPAT) assessment level.



3838



Activity 2: Enable the DOD

Percentage (%) Compliance with the approved Force Structure.

C SANDF (Administration)

Percentage (%) Compliance with the approved Force Structure.

C SANDF (Administration)

Broader SANDF Health / Fitness Status. C SANDF (Military Health Support)

Trend of deployable status on concurrent health assessments.

C SANDF (Military Health Support)

Compliance with DOD formal training courses. Sec Def / C SANDF (Administration)

Number of health care activities per year. C SANDF (Military Health Support)

Number of units closed down per year. C SANDF (Administration)

Number of Defence Intelligence Products. C SANDF (Defence Intelligence)


3939



Activity 3: Employ the SANDF

Number of planned Joint Interdepartmental and Multinational (JIM) exercises conducted per

year.


Number of Defence Attaché Offices. C SANDF (Administration)


4040


Description of DOD Inputs

Description of Performance Indicators Responsibility

DOD Input 1:Provide professional and supported DOD Human Resources

Percentage (%)( Compliance with planned staffing of funded posts.

Sec Def / C SANDF (Administration)

Number of MSDS members in the system per year. C SANDF (Administration)

Number of Reserves utilised per year. C SANDF (Administration)

Percentage (%) DOD skills audit completion status. Sec Def / C SANDF (Administration)

Level of communication in the DOD. C SANDF (Administration)

4141




DOD Input 2: Provide appropriate and sustainable Matériel

Percentage (%) Compliance with DOD Refurbishment Programme annual schedule.


Percentage (%) of approved Capital Works Plan projects completed as scheduled per year.


Percentage (%) Compliance with DOD codification requirements.


Percentage (%) Availability of medical stock at all times. C SANDF (Military Health Support)

Percentage (%) Of expenditure in accordance with facilities plan.


Percentage (%) Requests approved for disposal versus requests received.


Percentage (%) Procurement requests fully completed within 60 days.


Percentage (%) Ammunition disposed versus the number of disposed tonnes planned.


4242




DOD Input 3: Provide integrated and reliable Defence Information Systems

Percentage (%) Compliance with the DOD ICT Portfolios of the Defence Enterprise Information

Systems Master Plan.


Percentage (%) Availability of the Defence Information and Communication Infrastructure (DICI) infrastructure

at all times.


DOD Input 4: Provide sound Financial Management

Percentage (%) Adherence to DOD Governance Promulgation Schedule.

(Sub indicator) Defence fiscal framework status.


4343


Description of DOD Building for the Future


DOD BFF 1: Ensure Appropriate Defence Reserves

Level of strategic reserves (Ammo). C SANDF(Force Employment)

DOD BFF 2: Renew DOD Main Equipment and Doctrine

Percentage (%) Budget Allocation for the renewal of DOD Main Equipment.


DOD BFF 3:Undertake Defence Research and Development

Percentage (%) Budget Allocation for Technology Development.

Sec Def / C SANDF(Administration)

Core Indicator: Percentage (%) Adherence to DOD Governance Promulgation Schedule.

(Sub indicator) Defence Intangible Capital Assets (ICA) Status.


4444


Description of DOD Building for the Future


DOD BFF 4: Promote an Appropriate Defence Industry


(Sub indicator) White Paper on Defence Industry status.



(Sub indicator) Strategy on Defence Industry Status.


DOD BFF 5: Promote Consensus on Defence

Status of public opinion of the DOD. Sec Def / C SANDF (Administration)

Detailed information per DOD Programmes in support of the corporate DOD FY2013/14 MTEF Overarching Strategic Direction as presented above, is contained in the subordinate Def Sec and SANDF FY2013/14 MTEF Planning Instruments as tabled in Parliament on 13 March 2013.

EA OASS LINK WITH PLANNING INSTRUMENTS

45

46

PART 4: DOD FY2013/14 MTEF BUDGET PLAN

FINANCIAL PERFORMANCE AS AT 31 MARCH 2013

PCD brief 8 May 13 Vote 22.pptx

47

Programme

AdjustedAppropriation

Virements Final Approp Actual

Expenditure Variance

R'000 R'000 R'000 R'000 R'000 1 Administration 3,820,654 -30,176 3,790,478 3,784,343 6,135 2 Force Employment 2,748,195 47,608 2,795,803 2,778,456 17,347 3 Landward Defence 12,313,743 53,588 12,367,331 12,367,331 - 4 Air Defence 7,118,720 -43,216 7,075,504 7,075,504 - 5 Maritime Defence 2,862,252 32,612 2,894,864 2,894,864 - 6 Military Health Support 3,496,454 -36,237 3,460,217 3,460,217 - 7 Defence Intelligence 712,147 -7,096 705,051 705,051 - 8 General Support 4,816,377 -17,083 4,799,294 4,636,294 163,000

37,888,542 - 37,888,542 37,702,060 186,482 TotalComments: • Provisional Financial Performance Results. 99.51% expended in full compliance with

98% undertaking. • Administration. Under expenditure mainly within the Department of Military

Veterans (RM4,943) and the transfer payment to SASSETA (RM1,192) being less than anticipated.

• Force Employment. Under expenditure of RM17,347 on additional funds in the Peace Support Operations environment.

• General Support. RM153 for the Denel (AMG) contract termination retrenchment cost

(Roll-over claim).

47

BASELINE REDUCTIONS

2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16RM RM RM RM RM RM RM

2009/10 450 544 596 0 0 02010/11 447 627 624 0 02011/12 507 568 549 02012/13 516 531 6632013/14 50 85 350TOTAL 450 991 1,730 1,708 1,130 748 350

MTEF Cycle


4848


REQUIREMENTS TO MTEC

Request Received Request Received Request Received1 Border Safegaurding 1,814,800,000R 2,634,100,000R 2,672,000,000R 300,000R

2 Enhancement of the SANDF's Landward Defence Capability 235,160,000R 357,700,000R 490,600,000R

3 Maritime Security 585,000,000R 585,000,000R 585,000,000R 585,000,000R 585,000,000R 585,000,000R

4 Military Health Care 925,500,000R 1,000,157,000R 1,081,033,750R

5 VVIP Capability TBD TBD TBD

6 Department of Defence Works Capability 164,819,892R 100,754,581R 89,202,408R

7 Enhancement of the SANDF's Peacekeeping Capability (Deployability) 345,700,000R 200,000R 442,300,000R 215,000R 656,000,000R

8 Restructering of and Support to the Defence Industry 263,800,000R 239,900,000R 240,100,000R

9 Infratructure 756,260,000R 951,480,000R 744,982,250R

10 Other Additional Requirements 1,214,298,685R 1,566,309,158R 1,820,418,163R

11 TOTAL 6,305,338,577R 585,200,000R 7,877,700,739R 585,215,000R 8,379,336,571R 585,300,000R

2013/14 2014/15 2015/16Ser Activity

49

BUDGET CUT AS PER NOVEMBER 2012 ALLOCATION LETTER


50 50

FURTHER BUDGET CUT AS PER FEBRUARY 2013 ALLOCATION LETTER

51

7 February 2013

52 52

53 53

BUDGET REDUCTION IMPLICATIONS

• Impact on performance targets.

• Will result in numerous in-year reallocations within programmes and sub-programmes.

• Minister, Sec Def and C SANDF’s performance agreements are compromised.


5454

2012/13 2013/14 2014/15 2015/16R'000 R'000 R'000 R'000

Administration 3,820,654 4,434,602 4,778,369 5,096,303 Force Employment 2,748,195 3,283,875 3,423,185 3,647,456 Landward Defence 12,313,743 13,853,840 13,992,816 15,145,567 Air Defence 7,118,720 6,250,213 7,210,275 7,483,684 Maritime Defence 2,862,252 3,171,066 3,651,493 3,719,314 Military Health Support 3,496,454 3,642,498 3,791,342 3,904,539 Defence Intelligence 712,147 762,405 789,858 825,822 General Support 4,816,377 4,844,844 5,058,126 5,298,824

TOTAL 37,888,542 40,243,343 42,695,464 45,121,509

Main Programme

VOTE 22: ALLOCATION PER MAIN PROGRAMME: FY2013/14


5555

VOTE 22: ALLOCATION PER ECONOMIC CLASSIFICATION: FY2013/14


56

2012/13 2013/14 2014/15 2015/16

R'000 R'000 R'000 R'000

Current Payments 31,031,197 32,207,868 33,217,217 35,008,761

Compensation of Employees 19,346,063 20,863,845 21,763,302 23,225,255

Goods and Services 11,685,134 11,344,023 11,453,915 11,783,506

Transfers and Subsidies 6,078,898 7,355,004 8,724,049 9,661,887

Payment for Capital Assets 630,349 680,471 754,198 450,861

Payment for Financial Assets 148,098 0 0 0

TOTAL 37,888,542 40,243,343 42,695,464 45,121,509

Economic Classification

56

Challenges

•Rising fuel price Negative impact on executing borderline control. Negative impact on training in SA Army, SAAF,

SA Navy and supporting divisions. Negative impact on operating budget due to

envisaged price increases of a wide range of commodities used by Defence.

Note. It is hereby confirmed that the 2013/14 Estimates of Defence Expenditure is aligned with the Department’s Strategic Plan and Annual Performance Plan but not fully funded.

57

CONCLUDING REMARKS

57


58

Reducing the budget item contractors in programmes 2, 3, 4, 6 and 8 will have consequences for Defence: Programme 2: Force Employment. 86% of the reduction can only be applied to maintenance and repair of prime mission equipment resulting in reduced serviceability of peace support equipment and consequently a decrease in UN reimbursement; and decrease of deployable capabilities for border safeguarding operations. •Programme 3: Landward Defence. A further decline in number of serviceable vehicles and equipment will negatively impact on training and readiness levels and consequently on South Africa’s peace support and border safeguarding operations.

•Programme 4: Air Defence. Defence is dependent on outside contractors to adequately maintain and repair its current fleet of aircraft. Without this and proper maintenance of airfields, radar and communications and approach and landing systems, this may result in unsafe South African airspace.

CONCLUDING REMARKS (CONT.)

58

• Programme 6: Military Health Support. The reduced allocation impacts directly on the warehousing of pharmaceuticals, the maintenance and repair of medical equipment and asset management with a serious negative impact on health services provided to soldiers and dependents and other implications related to possible non-compliance with health related acts.

• Programme 8: Joint Support

– Joint Logistic Services. The reduced allocation to will negatively impact on asset management due to a reduced ability to comply with the asset management accounting framework.

– Command and Management Information. The maintenance and repair of communication equipment such as radio navigation equipment, communication security equipment, electronic counter measure equipment and radar equipment is placed at risk and impacts negatively on the execution of operations.

CONCLUDING REMARKS (CONT.)

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THANK YOU

Documents

11 DEPARTMENT OF DEFENCE AND MILITARY VETERANS (DOD&MV) (DEFENCE SECRETARIAT [DEF SEC] AND SOUTH AFRICAN NATIONAL DEFENCE FORCE [SANDF]) ANNUAL PERFORMANCE