1. SCOS&CA 8 May 08 1 PRESENTATION TO THE PORTFOLIO COMMITTEE ON DEFENCE Department of Defence Strategic Business Plan for FY2008/09 (MTEF FY2008/09 – FY2010/11) DEPARTMENT OF DEFENCE 13 May 2008

2. SCOS&CA 8 May 08 2 AIM To present the Department of Defence Strategic Business Plan for FY2008/09 to the Portfolio Committee on Defence

3. SCOS&CA 8 May 08 3 Scope Overview of the Strategic Business Plan Contents of the Plan Questions and Discussion

4. SCOS&CA 8 May 08 4 Overview of the SBP The Strategic Business Plan (SBP) for FY 2008/09, represents the culmination of a strategising and planning process that began in September 2006 and has resulted in the development of strategic business plans and supporting plans, eg human resources, information technology and logistics at all levels in the DOD. These plans are horizontally and vertically aligned. The DOD SBP is the “tip of the planning iceberg” and provides a strategic overview of the DOD’s planned activities for the year. The SBP structure has changed slightly and it now consists of 10 chapters.

5. SCOS&CA 8 May 08 5 Contents of the Strategic Business Plan Chapter 1: Strategic Overview Chapter 2: Medium Term Strategic Focus Chapter 3: Defence Administration Chapter 4: Force Employment Chapter 5: Landward Defence Chapter 6: Air Defence Chapter 7: Maritime Defence Chapter 8: Military Health Support Chapter 9: Defence Intelligence Chapter 10: General Support

6. SCOS&CA 8 May 08 6 Overview of the SBP Chapter 1 presents the constitutional mandate of the DOD, how it is operationalised, the governance, and resource strategies adopted. Chapter 2 provides an overview of DOD ‘s policy and legislative developments that will impact on the spending patterns, outputs with accompanying key performance indicators, the budget allocation, overarching corporate risks* and key service delivery improvement initiatives *Detailed risks to the outputs of the DOD are contained in the Service and Division Level 2, 3 and 4 plans.

7. SCOS&CA 8 May 08 7 Overview of the SBP Chapter 3 contains the purpose, financial resources, and outputs of the Administration Programme. Chapters 4 – 10 contain the purpose, financial resources, measurable objectives and outputs of the other seven funded programmes.

8. SCOS&CA 8 May 08 8 Chapter One Strategic Overview This chapter describes, inter alia, the DOD’s strategic framework, strategic focus, mission success factors, Minister of Defence’s priorities, values system and strategies. Of particular note are the following: –Minister of Defence’s priorities (unchanged from previous financial year) [4] and –The implementation of the Balanced Scorecard strategising and performance management tool [6].

9. SCOS&CA 8 May 08 9 Chapter One Strategic Overview … The Minister of Defence’s priorities remain: Rejuvenation and upgrade of the Landward Programme. Improvement of the DOD’s Infrastructure and the creation of a DOD Works Regiment Operationalisation of the Defence Review Update. Revitalisation of the Reserves. The exploitation of information technology to facilitate administrative processes and upgrade accountability.

10. SCOS&CA 8 May 08 10

11. SCOS&CA 8 May 08 11 Chapter Two Medium Term Strategic Focus The key aspects of this chapter are: Influences on programme spending plans over the MTEF period. Alignment with Government Priorities. Outputs of the DOD. Defence Budget Allocation. Key Performance Indicators. Overarching Strategic Risks to DOD Outputs.

12. SCOS&CA 8 May 08 12 Chapter Two Medium Term Strategic Focus INFLUENCES ON PROGRAMME SPENDING PLANS OVER THE MTEF PERIOD POLICY DEVELOPMENTS [15] The Defence Update addresses the modernisation and renewal of the SANDF’s landward forces (SA Army, Military Health Services and Command and Management Information Systems). The first prioritisation being the light and mobile forces, airborne forces, intelligence and engineer elements used mainly in the support of international commitments and concomitant air and maritime lift. The second prioritisation will be the conventional elements of the SANDF’s landward capability, such as mechanised infantry, artillery and armour.

13. SCOS&CA 8 May 08 13 Chapter Two Medium Term Strategic Focus LEGISLATIVE CHANGES [16] Military Discipline Bill The constitution enjoys the state to respect the dignity off all persons and some of the offences and penalties are not in line with this injunction National Conventional Arms Control Amendment Bill RSA has the obligation in terms of international law to ensure that its arms control measures are in line with international standards

14. SCOS&CA 8 May 08 14 Chapter Two Medium Term Strategic Focus … LEGISLATIVE CHANGES … Defence Amendment Bill The Bill aims to bring about uniformity in the manner which salaries and benefits of SMS members are determined in the public service, it also addresses Reserve service and the powers of the Inspector General. Castle Management Act Repeal Bill The preservation of national memory and heritage, including military heritage, is the responsibility of the Minister of Arts and Culture and not the Minister of Defence.

15. SCOS&CA 8 May 08 15 Chapter Two Medium Term Strategic Focus … LEGISLATIVE CHANGES … Prohibition or Restriction of Certain Conventional Weapons Bill The focus of the bill is to enact the convention into domestic law as contemplated in terms of section 231 of the Constitution Geneva Conventions Bill The Focus of the Bill is to enact the Geneva Conventions into domestic law as contemplated in terms of section 231 of the Constitution.

16. SCOS&CA 8 May 08 16 Chapter Two Medium Term Strategic Focus … LEGISLATIVE CHANGES … To give effect to the Constitutional Court Judgement Specific Regulations developed in terms of Chapter XX of the General Regulations for the SANDF and the Reserves

17. SCOS&CA 8 May 08 17 Enhancing and maintaining the defence capabilities of the DOD. Promoting regional security through among others, participation in peace missions and military foreign relations Supporting the Government’s diplomatic drive through participation in multi-national organisations. Systematically reducing the SANDF’s routine internal deployments. Withdrawal from these operations will be completed by April 2009. Actively striving to contribute towards national (APEX) priorities and the Cluster programme of Action. Chapter Two Medium Term Strategic Focus … Alignment with Government Priorities [16]. Ensured by

18. SCOS&CA 8 May 08 18 Chapter Two Medium Term Strategic Focus … OUTPUTS OF THE DOD [17] Defence Administration Conduct the policy development, management and administration of the department Force Employment Provide and employ defence capabilities, including an operational capability, to successfully conduct all operations, and joint and multinational military exercises. Landward Defence Provide prepared and supported landward defence capabilities for the defence and protection of South Africa

19. SCOS&CA 8 May 08 19 Chapter Two Medium Term Strategic Focus … OUTPUTS OF THE DOD … Air Defence Provide prepared and supported air defence capabilities for the defence and protection of South Africa Maritime Defence Provide prepared and supported maritime defence capabilities for the defence and protection of South Africa Military Health Support Provide prepared and supported military health capabilities and services for the defence and protection of South Africa.

20. SCOS&CA 8 May 08 20 Chapter Two Medium Term Strategic Focus … OUTPUTS OF THE DOD … Defence Intelligence Provide a defence intelligence and counter-intelligence capability. General Support Provide general support capabilities and services to the department.

21. SCOS&CA 8 May 08 21 Chapter Two Medium Term Strategic Focus … DEFENCE BUDGET ALLOCATION [17] PROGRAMMEFY2008/09 (‘000s) FY2009/10 (‘000s) FY2010/11 (‘000s) Administration2 426 9302 741 8083 022 963 Landward Defence6 792 237729 4888 503 142 Air Defence9 006 5148 349 1258 912 754 Maritime Defence1 809 6302 009 1082 005 189 Military Health Support2 119 1452 446 5852 609 049 Defence Intelligence509 850579 687608 462 General Support3 933 7464 237 2684 687 027 Force Employment1 635 1031 767 4981 851 887 GRAND TOTAL28 233 15529 860 56732 200 473

22. SCOS&CA 8 May 08 22 Chapter Two Medium Term Strategic Focus … SELECTED PERFORMANCE INDICATORS [19-20] A small number of performance indicators of those measurable outputs of the DOD that can be published have been included in the Estimate of National Expenditure (ENE) and the SBP. The detailed performance measures of the department are contained in the Service and Division plans.

23. SCOS&CA 8 May 08 23 Chapter Two Medium Term Strategic Focus … The continued deterioration of infrastructure, equipment and facilities due to insufficient funding for maintenance and repairs. The continuous loss of scarce skills to the private sector. The provision of updated defence-related internal administrative systems for finance, human resources and procurement. The servicing of Memoranda of Understanding. RISKS TO DOD STRATEGIC OBJECTIVES [21]

24. SCOS&CA 8 May 08 24 Chapter Two Medium Term Strategic Focus … The DOD has consistently tried to improve it efficiency and effectiveness and thereby its service delivery to its clients. One of the methods of improving service delivery is improving the quality and reducing the cost of human resources whilst a second is the continuous and ongoing improvement of performance. These processes are epitomized by the Military Skills Development Programme and the implementation of measures to improve the department’s management of performance. SERVICE DELIVERY IMPROVEMENT [21-26]

25. SCOS&CA 8 May 08 25 Chapter Three Defence Administration Purpose The Defence Administration Programme conducts policy development, management and administration of the department. Financial Resources Output Table [27-38]

26. SCOS&CA 8 May 08 26 Chapter Four Force Employment Purpose The Joint Operations Division provides and employs defence capabilities, including an operational capability, to successfully conduct all operations, and joint and multinational military exercises. Outputs.. Operations and Joint and Multinational Exercises Measurable objectives Conduct/participate annually on average in nine external peace missions over the three year period in accordance with requirements to promote peace and security.

27. SCOS&CA 8 May 08 27 Chapter Four Force Employment … Conduct 36 joint, interdepartmental and multinational military force preparation exercises over the three year period towards defence capability management. Undertake missions in support of other Government Departments, and to comply with international obligations. Provide special operations capability in accordance with National requirements. Output Table [40-44]

28. SCOS&CA 8 May 08 28 Purpose The Landward Defence Programme provides prepared and supported landward defence capabilities for the defence and protection of South Africa. Outputs. Landward Defence Capabilities Measurable Objectives Providing an infantry capability three battalions for external deployment, three companies for internal deployment, one air landed battalion and two multi- role battalions in reserve and four battalions involved in exercises. Chapter Five Landward Defence

29. SCOS&CA 8 May 08 29 Chapter Five Landward Defence … Measurable Objectives …  Exercising one tank squadron and one armoured car squadron.  Exercising one composite artillery regiment and one light artillery battery and having one light artillery battery in reserve.  Exercising one air defence artillery regiment and one light air defence artillery battery and having one light air defence artillery battery in reserve.

30. SCOS&CA 8 May 08 30 Chapter Five Landward Defence… Measurable Objectives … Providing an engineer capability of three engineer squadrons for external deployment, one composite engineer squadron for internal deployment, and exercise one light (parachute) engineer squadron. Output Table [46-48]

31. SCOS&CA 8 May 08 31 Chapter Six Air Defence Purpose The Air Defence Programme provides prepared and supported air defence capabilities for the defence and protection of South Africa. Outputs. Air Defence Capabilities. Measurable Objectives Providing a helicopter capability to annually provide four mixed (medium and light) squadrons and one combat support squadron.

32. SCOS&CA 8 May 08 32 Chapter Six Air Defence… Providing a transport and maritime capability three medium transport squadrons, one maritime and transport squadron, one light transport squadron and nine Reserve squadrons. Providing an air combat capability one combat squadron. Providing capacity for a 24-hour air command and control capability. Output Table [50-52] Measurable Objectives …

33. SCOS&CA 8 May 08 33 Chapter Seven Maritime Defence Purpose The Maritime Defence Programme provides prepared and supported maritime defence capabilities for the defence and protection of the RSA. Outputs. Maritime Defence Capabilities. Measurable Objectives Providing a surface combat capability of four frigates, one combat support vessel, three inshore patrol vessels and a maritime reaction squadron.

34. SCOS&CA 8 May 08 34 Chapter Seven Maritime Defence … Providing a sub surface combat capability of three submarines. Providing a mine countermeasures capability of two mine countermeasures systems to ensure safe access to RSA harbours and where mine clearance may be required. Output Table [54-55] Measurable Objectives

35. SCOS&CA 8 May 08 35 Chapter Eight Military Health Service Purpose. The Military Health Support Programme provides prepared and supported health capabilities and service for the defence and protection of South Africa. Outputs. Military Health Services and Capabilities. Measurable Objectives Providing medical support elements for deployed and contingency forces consisting of five medical battalion groups, including one specialist medical battalion group.

36. SCOS&CA 8 May 08 36 Chapter Eight Military Health Service… Measurable Objectives … Providing a comprehensive multi-disciplinary health service to a patient population of 230 000. Output Table [58-60]

37. SCOS&CA 8 May 08 37 Chapter Nine Defence Intelligence… Purpose The Defence Intelligence Programme provides a defence intelligence and counter-intelligence capability. Outputs Defence Intelligence and Counter-Intelligence Capabilities. Measurable Objectives Provide a defence intelligence capability and service. Provide a counter intelligence capability and service. Output Table [62]

38. SCOS&CA 8 May 08 38 Chapter Ten General Support Purpose The General Support Programme provides general support capabilities and services to the Department. Outputs. Joint Support Capabilities (Log, MP, CMI). Measurable Objectives Ensure a 90% serviceability of deployed equipment through a joint logistic operational support group Repairing and maintaining the DOD’s facilities over the next three years to a projected total of 32 projects.

39. SCOS&CA 8 May 08 39 Measurable Objectives Providing centralised command and management information capabilities annually and ensuring that the mainframe service is available 98% of the time and that Wide Area Network is available 95% of the time. Providing a military policing capability of one provost company for deployment, as well as 22 area offices and 21 detachments for investigations and crime prevention to reduce the number of new cases by 5% per year. Chapter Ten General Support … Outputs Table [64-66]

40. SCOS&CA 8 May 08 40 CONCLUSION The SBP and ENE are now fully aligned. The DOD is on track to meeting National Treasury’s requirements for full performance reporting by 2010. The DOD is systematically addressing the strategic issues that pose a threat to output whilst successfully meeting its ordered commitments.

41. SCOS&CA 8 May 08 QUESTIONS?