Nosiviwe Mapisa-
We lift up the memory of the former President of the ANC, Oliver Tambo, as one of Africa’s leaders who contributed greatly to the regeneration of Africa by leading the masses of our country in the struggle to liberate our country.
As a country, we have much to celebrate given the role that South Africa continues to play and the successes we score to bring about peace and stability in support of the continent’s collective efforts to create the necessary conditions for human development and betterment of all our people, as part of the Africa agenda. The role of the SANDF, recognised as a midwife for peace in the continent, has been integral in these efforts.
We are deeply encouraged by the levels of support and appreciation shown by our people towards the work of the SANDF. Testimony to this is the enthusiasm shown towards events like the Armed Forces Day and the various exhibitions we hold annually.
As we mark Africa Day, I wish to introduce to Parliament, some of the young men and women, who served in the United Nations Force Intervention Brigade in the eastern regions of the DRC.
They are led by Colonel Monwabisi Dyakopu, who was their National Contingent Commander. The Force Intervention Brigade was mandated to protect civilians, women and children and to remove all the negative forces in the DRC.
The Force Intervention Brigade played an important role in neutralising the M23, one of the negative forces in Eastern DRC.
We have introduced, as part of our appreciation of the commitment and sacrifices by our soldiers deployed in operations, a compensation policy in respect of those members who lose their lives, in line with the UN policy.
I am pleased to report that the Department of Defence, having completed the relevant plans intended to mitigate the decline of the capabilities of the SANDF. The plans are our foundation to engage with the National Planning Commission, the Department of Performance Monitoring and Evaluation and the National Treasury in a comprehensive and robust manner.
The primary focus is to address the serious mismatch between the current funding allocation to and the expectations placed on the Department of Defence. We should also appreciate that this is being done within the following five work packages:
The first is focused on Critical Organisational and Efficiency Interventions that can be executed within the current resource allocation to defence.
The second is to revisit the functional Policies, Strategies and Plans that will ensure the implementation of the DR 2015. This can be done within the current allocation.
The third is critical interventions that are focused on operational support systems that are required to sustain current operations. This requires additional funding in the form of an increase to the baseline R10.67 billion allocation to the SANDF.
The fourth addresses specific capital interventions to improve and renew priority capabilities required to execute current operational commitments. These interventions require additional funding in the form of a baseline increase of R8.96 billion.
The fifth are the interventions to maintain comprehensive defence capabilities in line with the constitutional mandate of the Defence Force. These interventions require an additional baseline increase of R35.44 billion. Funding Implications In reality, the defence allocation has been declining by 5% per annum in real terms over the last 20 years to a mere 1% of the GDP. Meanwhile, the appropriate funding level as articulated in the Defence Review 2015 would require a steady state increase to at least 2% of GDP over time.
While there is great appreciation for the competing pressures on the fiscus, the persistent and continued dramatic downward trend in real terms of the funding allocation to defence has reached a point where the DoD runs the risk of losing more of its essential capabilities in addition to those already lost. Engagement with the National Treasury It is clear that a closer relationship between the DoD and the NT is required to take the implementation of the Defence Review forward.
To this end, the Minister of Finance and I agreed that an inter-departmental Budget Task Team should be established. The importance of this process is that we are endeavouring to develop a common proposal, endorsed by both ministries.
One of our important projects is the development of an integrated DoD Budgeting and Costing Tool with which we intend to strengthen defence financial management.
The Task Team is working towards achieving a long-term perspective on the required resources to implement the Defence Review through the following initiatives:
Firstly, developing in conjunction with the National Treasury. specific policy options and funding trajectories from the fiscus;
Secondly, developing and driving a comprehensive DoD efficiency programme in order to make the current DoD allocation more efficient,
Thirdly, leveraging alternative defence revenuestreams by the sweating of assets, developing intellectual property, ensuring reimbursement from United Nations Peace Missions as well as other initiatives. Economic Impact of a Viable Defence Force in Peacetime South Africa will continue to employ, inter alia, the following principal security strategies:
er to assist provincial governments in their rural development initiatives.
A total of 13 youth entrepreneurship service camps were presented in the North West province that trained 2 600 learners.
The order was given in 2016 for military messes in the Defence Force to procure commodities produced by local communities.
Optimised Utilisation of the DoD Works Capability
The Defence Works Formation capacitation is currently at 83%. Continuous training and skilling of artisans is taking place.
To date, a total of 988 members have been trained and qualified as artisans, technicians, site supervisors and project managers in various fields. The Defence Works Formation is conducting 168 projects throughout the nine provinces out of DoD’s own resource
allocations. OPERATION THUSANO During the 2016/17 period, 1 871 vehicles were repaired in collaboration with the Cuban armed forces, at a cost-saving of R108 334 million. Cuba has deployed an additional 41 technical specialists across the country to assist us in resuscitating the Technical Service Corps capability.
In addition, the Cuban specialists were able to repair the following equipment: the bio-medical workshop; vehicle diagnostic machinery; medical technology equipment; and a magnetic particle test bench, among others.
In June 2017, 40 SANDF members will be graduating in the Republic of Cuba in Air Traffic Control, Technical Air and Mechanical Engineering, as well as Ground-School training. This is made of 27 cadets and 13 officers.
Maritime Security The transfer of the Dockyard to the South African Navy is under way as recommended by the Defence Review 2015. The multi-lateral agreement between the DoD, Denel and Armscor has been signed and Denel is awaiting National Treasury approval.
Consultations with the employees of the dockyard are continuing to ensure that all labour matters are attended to.
The South African Navy has continued to deploy vessels in support of the Maritime Security Strategy. Over the past year, the SA Navy has conducted three protracted patrols in the Mozambique Channel utilising a Frigate, an Offshore Patrol Vessel and the SAS DRAKENSBERG respectively.
sewhere on the continent. During the current period, units of the defence force participated in rescue missions of one kind or the other, including aircraft accidents and fire disasters. Development of Cyber Warfare and Sensor Capabilities This year, the DoD will provide a comprehensive departmental Cyber Warfare Strategy and Sensor Strategy to the Justice, Crime, Prevention and Security (JCPS) Cluster HUMAN RESOURCE
RENEWAL The new HR strategy has been completed and maps out the rejuvenation of the Defence Force. However, due to the reduced HR budget allocation, the new recruits’ intake is expected to decrease in size thus negatively affecting force-rejuvenation. This is exacerbated by the high rate of natural attrition, which is about 3 500 persons per annum.
Following the reduction in the aggregate expenditure ceiling, the department’s budget for compensation of employees was reduced by R1.9 billion in the 2017/18 financial year.
Defence Foreign Relations and Gender
Equity The DoD has kept true to its approach of a layered defence through a substantial footprint of Defence Attachés. The SANDF has, and will continue to deploy over the current Medium Term Expenditure Framework a complement of 44 Defence Attachés, 10 of which cover the 12 SADC countries on a residential and nonresidential basis, 13 in the rest of Africa and 21 with the rest of the world.
By the end of January 2017, the department had a total of 40 female uniform members in command positions out of a total of 225. The percentage of female-generals is gradually increasing from 16% in 2013 to 19% in 2017.
It is envisaged over this financial period that a total of 11 female defence members will be deployed as Attachés. We will continue to make progress in this regard. SANDF Education Trust The SANDF Education Trust, based on voluntary contributions from members of the public, was established in October 2013 and since then has awarded bursaries to 90 beneficiaries. We seek the support of Parliament to translate this fund to a formal fund of the department supported
ARMSCOR The Armscor’s Turnaround Strategy has resulted in a number of African countries showing interest in using its services. Furthermore, Armscor is registered as a strategic supplier with UN Procurement to ensure the increased participation of SA Defence Industry in the supply of their requirements.
Armscor remains committed to providing military veterans support in various areas such as, economic empowerment, corporate social investment, skills development as well as employment.
We are not planning to fail despite the challenges...
National Defence Industry Council Transformation of the defence industry remains a critical strategic goal. In this regard, we established the National Defence Industry Council (NDIC) last year to facilitate a platform for government support and repositioning of the Defence Industry.
The NDIC has already developed the Defence Industry Strategy and the Defence Industry Charter, providing pathways for the transformation and growth of the Defence Industry.
The charter has been submitted to the Minister of Trade and Industry to initiate the process towards publication and public comment.
It is our intention to officially launch the charter in June of this year.
Truck Africa To enhance the landward defence programme, a partnership of DoD, Armscor, CSIR and Denel has taken the initiative to locally build a multi-purpose support vehicle called Truck Africa.
Apart from creating jobs, this initiative will help develop skills led by the local defence industry. A prototype of Truck Africa has been produced with production planned to begin in the medium term. AAD 2016 The AAD 2016 was the most successful to date and for the very first time the AAD 2016 promoted Africa’s defence capabilities
DEPARTMENT OF MILITARY VETERANS The Turnaround Strategic Initiative introduced two years ago to assist the DMV to deliver on its mandate in a more effective and efficient manner is beginning to yield concrete positive results.
Furthermore, the DMV managed to spend 85% of its allocated budget in 2016/17 financial year, as opposed to almost 60% expenditure during year 2015/16 FY.
The DMV management team is now hard at work to put in place the necessary systems, processes as well as policies to ensure that all the R622m allocated funds are spent prudently.
The long overdue process of amending the Military Veterans Act, 2011 is now firmly on course and will be put before Parliament during the course of this financial year.
The budget allocation for the entire vote in the financial year 2017/18 is R48bn which is approximately 1% of the GDP. The MTEF allocations indicate that for financial year 2018/19 our budget will decline to less than 0.98% of GDP. These figures indicate a persistent decline of the defence budget.
Given the planning that has gone in embedding our change programmes into our normal APPs for both departments, we have deemed this the YEAR OF CHANGE.
Despite the challenges we have outlined here, we are not planning to fail. We need your support in this regard.