1. DOD By MR ANTONIE VISSER CHIEF DIRECTOR STRATEGIC MANAGEMENT 01 February 2005 PRESENTATION TO PORTFOLIO/ STANDING COMMITTEE ON DEFENCE DOD STRATEGIC BUSINESS PLAN FY04/05 & 05/06

2. DOD AIM To brief members of the Portfolio/Joint Standing Committee on Defence on the highlights of the DOD’s Performance Against Plan for FY 04/05 and the draft DOD Strategic Business Plan for FY05/06

3. DOD SCOPE Introduction Defence Budget FY04/05 & FY05/06 Brief highlights of performance against plan and related risks for FY04/05 per Programme Broad framework of DOD Strategic Business Plan for FY05/06 per Programme DOD Strategic risks Prioritised Options for FY05/06 Conclusion

4. DOD INTRODUCTION DOD Business Plan & Budget for FY04/05 was presented to Portfolio/Joint Standing Committee on Defence before it was tabled in Parliament. DOD Plan is based on Environmental Analysis, approved strategic risks, and guidelines provided by the Minister of Defence, Secretary for Defence and the Chief of the SANDF. DOD monitors its performance against the plan per quarter through Quarterly Reports An Annual Report is compiled for the financial year as prescribed by law. This is still in process for FY04/05.

5. DOD DEFENCE BUDGET FY04/05 & FY05/06 Sub-ProgrammeVote 2004Estimate 2005Difference 1. Administration 594,275 681,398 87,123 2. Landward Defence 3,383,144 3,575,142 191,998 3. Air Defence 2,243,258 2,395,243 151,985 4. Maritime Defence 1,103,793 1,211,774 107,981 5. Military Health Support 1,317,113 1,517,578 200,465 6. Defence Intelligence 146,743 148,786 2,043 7. Joint Support 2,323,005 2,490,426 167,421 8. Force Employment 1,222,387 1,063,706 (158,681) 9. Special Defence Account 7,923,608 9,075,379 1,151,771 20,257,326 22,159,432 1,902,106

6. DOD PERFORMANCE SUMMARY Summary based on the last three DOD Quarterly Reports Annual Report still in process. To be tabled at the end of August 2005 in terms of law

7. DOD DEFENCE ADMINISTRATION Finalisation of the Integration process. This was presented to and accepted by the Portfolio Committee on Defence. Various Memoranda of Understanding (MOUs) concluded. DOD Communication Strategy was aligned and integrated with Govt cluster objectives and priorities. SAS MENDI arrived in Simon’s Town. DOD Fast Tracking Board continued with issues of representivity and fast-tracking in the DOD. Defence Inspectorate successfully retained its ISO 9001:2000 Quality Management System Certification.

8. DOD COMMAND AND CONTROL (JOINT OPERATIONS) Participated in peace support operations in support of NEPAD, esp in Burundi, the DRC and Sudan. Operations support to the national elections. Conducted numerous internal operations in support of SAPS.

9. DOD LANDWARD DEFENCE SA Army closed 611 of 658 Force Structure Elements (FSEs). Involvement in the integration process in the DRC. Successful completion of Ex AIRBORNE AFRICA 2004; participated in the SA Air Force’s Ex IRON EAGLE

10. DOD AIR DEFENCE SA Air Force hosted the 12 th International Air Reserve Symposium. Fourteen (14) countries attended. AFB Ysterplaat Airshow was also a highlight as it enabled the SIYANDIZA Project (aviation awareness project) to stimulate interest in aviation among the youth. The two-yearly Africa Aerospace and Defence Exhibition took place. Ex GOLDEN EAGLE, involving Indian and German Air Forces, took place during the period under review.

11. DOD MARITIME DEFENCE Seaman Nompumelelo Gaba became the first black woman to qualify as an SA Navy diver. Ex RED LION was successfully conducted. SAS TEKWANE provided assistance to the Mediterranean Shipping Company, Regatta, in Durban. Arrival of the corvettes: SAS SPIONKOP and SAS MENDI

12. DOD MILITARY HEALTH SERVICE SAMHS hosted the International Congress of Aviation and Space Medicine. SAMHS was requested by the UN to present a programme on sub-Saharan diseases and high-security bio-safety isolation techniques. 1 Med Bn Gp Pipe Band participated in an international competition in Edinburgh. Got 13 th position overall and won an award for best discipline

13. DOD JOINT SUPPORT 169 DOD members were recruited for re-deployment to the SAPS and did with the Conversion Training Course at Makwe. The Multi-Media Section of SANDF COLET won the prize in the category “Best Educational Video of 2004”. The War Simulation Centre, in co-operation with the British Peace Support Task Team and CJ Operations, completed the planning for Ex RED CARD – for deployment in the DRC of 43 Mech Bde

14. DOD DEFENCE INTELLIGENCE The first “DISC Intelligence Course” was presented successfully in Zimbabwe to members from 10 SADC countries. Defence Intelligence supported Ex MEDFLAG, AIRBORNE AFRICA and the Aerospace Africa Defence Exhibition. Defence Intelligence, together with Strategy & Planning Office, played a leading role in drafting the National Security Framework which was endorsed by the JCPS cluster.

15. DOD DRAFT DOD STRATEGIC BUSINESS PLAN FY05/06

16. DOD DEFENCE ADMINISTRATION Political Direction (Minister of Defence) –Purpose: To provide political direction to the DOD. This ensures the democratic defence of South Africa by the execution of the required defence commitments and providing appropriate defence capabilities

17. DOD DEFENCE ADMIN… Departmental Direction (Secr for Defence) –Purpose: To provide departmental direction to the DOD to ensure the effective, efficient and proper conduct of defence activities in accordance with legislation and policy.

18. DOD DEFENCE ADMIN… SANDF Command and Control (Chief of the SANDF) –Purpose: To provide command and control of the SANDF

19. DOD DEFENCE ADMIN… Policy and Planning –Purpose: To advise on national security policy matters and co- ordinate the strategic direction process by developing, monitoring and adapting defence policy, strategy and plans in accordance with national policy to enable the effective, efficient and proper conduct of defence activities

20. DOD DEFENCE ADMIN… Policy and Planning –Outputs: Defence policy, strategies and plans Structure management services Human resource policy and planning for the DOD Policy advice to the DOD

21. DOD DEFENCE ADMIN… Financial Management –Purpose: To provide a cost effective public finance service to the Minister of Defence, Secretary for Defence and the Chief of the South African National Defence Force in accordance with the Public Finance Management Act, Treasury Regulations and Circulars. –Outputs: Budget Management Services for the DOD as directed by the Accounting Officer (AO); Accounting services to the DOD as directed by the AO. Services to ensure compliance with the PFMA.

22. DOD DEFENCE ADMIN… Acquisition and Procurement –Purpose: To manage the DOD acquisition and procurement processes and policies. –Outputs: Acquisition and procurement capability and services for the DOD.

23. DOD DEFENCE ADMIN… Corporate Staff Office –Purpose: To provide corporate staff capability for the Chief of the SANDF –Output: Corporate staff capability for the Chief of the SANDF

24. DOD DEFENCE ADMIN… Inspection Services (Defence Inspectorate) –Purpose: To ensure the validity and veracity of the management information of the DOD. –Outputs: Internal audit (performance and regulatory) Anti-fraud services.

25. DOD DEFENCE ADMIN… Chief Directorate Equal Opportunities and Affirmative Action (EO & AA) –Purpose: To provide EO and AA advice to Secretary for Defence –Output: Equal Opportunities direction and policy advice to the DOD.

26. DOD DEFENCE ADMIN… Human Resource Support Centre –Purpose: To provide full human resources support services to the DOD. –Output: Comprehensive human resources support service for the DOD.

27. DOD DEFENCE ADMIN… Legal Services –Purpose: To provide professional, legitimate and deployable military legal services and support commensurate to the needs of the DOD –Output: Military legal service capability and services.

28. DOD DEFENCE ADMIN… Religious Services –Purpose: To provide a Chaplains’ Service that cares for all DOD members and their dependants and promotes spiritual growth, social support and ethical conduct. –Output: Religious policy advice and chaplain capability for the SANDF.

29. DOD DEFENCE ADMIN… Defence Corporate Communication –Purpose : To provide defence communication policy, strategy and plans in accordance with DOD policy and national (Government Communication and Information System - GCIS) policy and provide a centralised corporate communication capability, services and products in order to enable effective, efficient, interactive two-way communication between the DOD and its publics/stakeholders. –Output : Defence communication advice, policy, strategy and plans in accordance with DOD policy and national (GCIS) communication policy. Corporate communication capability, products and services

30. DOD DEFENCE ADMIN… Reserve Force Division –Purpose : To direct the development and maintenance of the Reserve Force system, to provide specialist advice on Reserve Force matters and to promote/market the Reserves and the volunteer Reserve system. –Output : Strategic direction to the development and maintenance of the Reserve Force system by providing specialist advice, policy, strategy, plans and doctrine; promotional/marketing products and services.

31. DOD DEFENCE ADMIN… Strategy and Planning Office –Purpose: To provide military strategy and planning capability, advice and services for Chief SANDF –Output: Military Strategy and planning capability, advice and services for the Chief of the SANDF

32. DOD DEFENCE ADMIN… Defence Foreign Relations –Purpose: To provide the C SANDF with a foreign relations capability and services. –Output: Defence foreign relations capability and services as directed by C SANDF.

33. DOD DEFENCE ADMIN… RISKS –Servicing of Memoranda of Understanding (MOUs) –Renewal and sustainment of IT-based internal control systems for the management of finances, structure and personnel of the DOD MITIGATING ACTIONS: Reprioritisation

34. DOD LANDWARD DEFENCE PURPOSE: To provide prepared and supported landward defence capabilities for the defence and protection of South Africa MEASURABLE OBJECTIVE: Defend and protect South Africa by maintaining and providing prepared and supported landward combat forces for internal and external operations that meet the prescribed combat readiness, operational and other requirement of Government

35. DOD LANDWARD … OUTPUTS : –Strategic Direction capability –Infantry capability –Armour capability –Artillery Capability –Air Defence Artillery Capability –Engineer Capability –Operational Intelligence Capability –Command and Control Capability –Support Capability –General Training Capability

36. DOD LANDWARD … RISKS: –Provision of affordable and sustainable human resource requirements for external operations and simultaneously providing for joint and combined training requirements. This is compounded by health status and ageing HR profile of serving members –Funding for renewal of Army prime mission equipment MITIGATING ACTIONS: –Military Skills Development System (MSDS) to rejuvenate the SANDF –Reprioritisation and gradual phasing in of prime mission equipment

37. DOD AIR DEFENCE PURPOSE: To provide prepared and supported air defence capabilities for the defence and protection of South Africa MEASURABLE OBJECTIVE: Measurable objective: Defend and protect South Africa by maintaining and providing prepared and supported air combat forces, services and facilities for internal or external operations that meet the prescribed combat readiness, operational and other requirements of Government.

38. DOD AIR DEFENCE... OUTPUTS: –Strategic Direction –Operational Direction –Air Combat Capability –Helicopter Capability –Transport and Maritime Capability –Operational Support and Intelligence Capability –Command and Control Capability –Command Post Capability –Base Support Capability –Education, Training and Development Capability –Technical Support Services

39. DOD AIR DEFENCE... RISKS: –Main equipment, weapons systems and ground-support infrastructure do not comply with required standards for combat readiness. –Declining numbers of suitably skilled and experienced personnel –Loss of local industry expertise MITIGATING ACTIONS –Implementation of Strategic Transformation Plan Towards Vision 2012; HR Medium-term Strategy –Funding through payment of penalties for the late delivery of Agusta helicopters

40. DOD MARITIME DEFENCE PURPOSE: To provide prepared and supported maritime defence capabilities for the defence and protection of South Africa MEASURABLE OBJECTIVE:: Defend and protect South Africa by maintaining and providing prepared and supported maritime combat forces, services and facilities for internal or external operations that meet the prescribed combat readiness, operational and other requirements of Government

41. DOD MARITIME DEFENCE… OUTPUTS: –Maritime Direction Capability –Maritime Combat Capability –Maritime Logistics Support Capability –Maritime Training Capability –Base Support Capability

42. DOD MARITIME DEFENCE… RISKS –Logistic support, ordnance and facilities for the new corvettes and submarines –Deterioration of facilities and equipment MITIGATING ACTIONS –Limited funding provided by National Treasury –Reprioritisation

43. DOD MILITARY HEALTH SERVICE PURPOSE: To provide prepared and supported medical combat support elements and services MEASURABLE OBJECTIVE: To provide prepared and supported military medical health capabilities, services and facilities for internal or external operations that meet the prescribed combat readiness, operational and other requirements of Government

44. DOD MILITARY HEALTH SERVICE… OUTPUTS: –Strategic Direction –Military Health Support –Area Military Health Service –Specialist/Tertiary Health Service –Product Support Capability –Base Support Capability –Military Health Training Capability

45. DOD MILITARY HEALTH SERVICE… RISKS: –Deterioration of hospitals, facilities and equipment, high rate of medical inflation –Non-provision of Scarce Skills and Rural Areas Allowance negatively affects members –Due to changes in health legislation resulted in medical base depot can no longer be used for storage of medication. Buildings need to be upgraded or new ones built. MITIGATING ACTIONS: Limited additional funding provided by National Treasury will mitigate the risk.

46. DOD DEFENCE INTELLIGENCE PURPOSE: To provide a defence intelligence and counter- intelligence capability MEASURABLE OBJECTIVE: Defence intelligence and counter-intelligence capabilities, products and services that provide early warning and security for the defence and protection of South Africa and support to its people that meet the prescribed combat readiness, operational and other requirements of Government

47. DOD DEFENCE INTELLIGENCE … OUTPUTS: –Strategic Direction –Defence intelligence operations –Defence Intelligence support services

48. DOD DEFENCE INTELLIGENCE … RISKS: –Outdated Information Technology –Deteriorating condition of the Defence Intelligence HQ building MITIGATING ACTIONS: –Possibility of Public-Private Partnership is being investigated for relocating the Defence Intelligence HQ

49. DOD JOINT SUPPORT PURPOSE: To supply joint support capabilities and services to the department. MEASURABLE OBJECTIVE: Strategic Direction, Joint Logistic, Command and Management Information, Military Policing, Joint Training, Reskilling and Resettlement and Human Resources Support capabilities, services and facilities for the defence and protection of South Africa and support to its people that meet the prescribed combat readiness, operational and other requirements of Government.

50. DOD JOINT SUPPORT… OUTPUTS: –Strategic Direction –Command Management Information Capability –DOD Logistic Agency –Human Resource Support Centre –Joint Training Formation –Military Policing Agency –Service Corps –Acquisition Services

51. DOD JOINT SUPPORT… RISKS : –Maintenance and repair of facilities, vehicles and equipment –Inadequate skills and and experience levels of personnel –Unsafe and unstable ammunition due to lack of an ammunition disposal plan –Information Technology related to internal control systems (PERSOL, FMS and Health Information System) MITIGATING ACTIONS: –Reprioritisation

52. DOD COMMAND AND CONTROL (JOINT OPERATIONS) PURPOSE: The Joint Operations Division conducts all operations, joint and multi-national exercises for the DOD in service of the RSA. MEASURABLE OBJECTIVE: Defend and protect South Africa by the command and control of all ordered operations by the Defence Force as directed by Government.

53. DOD COMMAND AND CONTROL (JOINT OPERATIONS) OUTPUTS: –Strategic Direction (Operations Division HQ) –Command and Control –Special Operations –Peace Support Operations –Conventional Operations

54. DOD COMMAND AND CONTROL (JOINT OPERATIONS) RISKS –Gap between the outputs of force-providing Services and Divisions and the required force levels to meet the ordered commitments. –Shortfall in the allocation for external operations in the DRC, Burundi and elsewhere –Cost of internal deployments MITIGATING ACTIONS: Reprioritisation

55. DOD SPECIAL DEFENCE ACCOUNT PURPOSE : To acquire operationally capable, supportable and maintainable weapon systems congruent with authorised defence needs. OUTPUTS (SUB-PROGRAMMES): –Landward Programme –Air Defence –Maritime Defence –SA Military Health Services –Joint Support –Special Forces Brigade –Technology Development

56. DOD SPECIAL DEFENCE ACCOUNT… RISKS : –Adequacy of funding and local industrial capabilities. –SA Army not provided for in the Strategic Defence Packages (SDPs). MITIGATING ACTIONS –National Treasury has given an indication of favourably considering the renewal of the SA Army prime mission equipment

57. DOD DOD STRATEGIC RISKS 316 risks reduced to 76 corporate risks. 36 considered critical 14 options were developed. 4 options presented to MTEC

58. DOD PRIORITISED OPTIONS PRIORITISED OPTIONS FOR FY05/06 Policy option 2005/062006/072007/08 DEPT R'000 MTEC R'000 DEPT R'000 MTEC R'000 DEPT R'000 MTEC R'000 Option 1: Ammunition disposal 10 0005 00080 00010 00080 00050 000 Option 2: Facilities275 00010 000440 00050 000620 000250 000 Option 3: Integration of SDP47 51626 00040 00022 00031 40013 000 Option 4: Military Health Services 152 00020 000146 00012 000139 50014 000 Total484 51661 000706 00094 000870 900327 000

59. DOD CONCLUSION Stringent guidelines have been provided to the DOD to do its business within budget allocation. However, this is hampered by ordered operations which do not have sufficient budgetary allocation. Despite budgetary constraints, the DOD strives to deliver on its mandate, esp with regard to external and internal operations. International profile of SANDF has increased due to its leading role in various areas in defence and security in support of NEPAD. DOD still has a number of strategic risks, some of which were developed into options for funding by National Treasury.

60. DOD DISCUSSION