chapterchapter 7department of defence annual report fy 2004 - 2005 all enquiries with respect to...

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D E P A R T M E N T O F D E F E N C E A N N U A L R E P O R T F Y 2 0 0 4 - 2 0 0 5

All enquiries with respect to this report can be forwarded to

Brigadier General A. Fakir at telephone number +27-12 355 5800 or Fax +27-12 355 5021

Col R.C. Brand at telephone number+27-12 355 5967 or Fax +27-12 355 5613email: [email protected]

All enquiries with respect to the Annual Financial Statements can be forwarded toMr H.J. Fourie at telephone number+27-12 392 2735 or Fax +27-12 392 2748

ISBN 0-621-36083-X RP 159/2005

Printed by 1 MILITARY PRINTING REGIMENT, PRETORIA

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iD E P A R T M E N T O F D E F E N C E A N N U A L R E P O R T F Y 2 0 0 4 - 2 0 0 5

D E P A R T M E N T O F D E F E N C E

A N N U A L R E P O R T

2 0 0 4 / 2 0 0 5

Mr M.G.P. LekotaMinister of Defence

Report of the Department of Defence: 1 April 2004 to 31 March 2005.

I have the honour to submit the Annual Report of the Department of Defence.

J.B. MASILELASECRETARY FOR DEFENCE: DIRECTOR GENERAL

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List of TablesList of Figures

Foreword by the Minister of Defence Foreword by the Deputy Minister of Defence

Strategic overview by the Secretary for DefenceThe Year in Review by the Chief of the SA National Defence Force

P A R T 1 : S T R A T E G I C D I R E C T I O NC h a p t e r 1 S t r a t e g i c D i r e c t i o n

IntroductionAim

Scope of the Annual ReportStrategic Profile

Alignment with Cabinet and Cluster PrioritiesMinister of Defence's Priorities for FY2004/05

Strategic FocusFunctions of the Secretary for Defence

Functions of the Chief of the SANDFParys Resolutions

C h a p t e r 2 D e f e n c e O b j e c t i v e s , O u t c o m e a n d O u t p u t sIntroduction

Department of Defence ProgrammesStrategic Objectives

Defence OutcomeDefence Outputs

Services RenderedDiscontinued Services

New/Proposed ServicesLosses and Damages

Events after the Accounting Date

P A R T 2 : O R G A N I S A T I O N A L S T R U C T U R E A N D H U M A N R E S O U R C E S

C h a p t e r 3 O r g a n i s a t i o n a l S t r u c t u r e a n d H u m a n R e s o u r c e s M a n a g e m e n t

Annual ReviewOrganisational Structure

Department of Defence Human Resource Strategy 2010: Implementation ProgressMacro-workforce Composition

Personnel ExpenditureEmployment and Vacancies

Employment ChangesEmployment Equity

Performances RewardsForeign Workers

Utilisation of LeaveJob Evaluation

Skill DevelopmentLabour Relations

T A B L E O F C O N T E N T S

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Injury on DutyDiscipline

Reporting on HIV/AIDS and Health Promotion Programmes

P A R T 3 : P R O G R A M M E P E R F O R M A N C EC h a p t e r 4 S y n o p s i s o f G e n e r a l P e r f o r m a n c e

IntroductionGovernance and Accountability

OperationsDefence DiplomacySocial Contribution

Reserve ForceAnnual Review

SA Army ReserveSA Air Force Reserve

SA Naval ReserveSA Military Health Service Reserve

Joint SupportCorporate Staff Division

Utilisation of Reserve Force Members in Staff DivisionsReserve Force Council

Conclusion

C h a p t e r 5 D e f e n c e A d m i n i s t r a t i o nIntroduction

Political Direction Departmental Direction

SANDF Command and ControlPolicy and Planning

Annual ReviewPerformance Report: Core Divisional Objectives

Other Outputs of Policy and Planning Division in Support of Government ObjectivesFinancial Management


Other Outputs of Financial Management Division in Support of Government ObjectivesDepartmental Acquisition and Procurement Division


Other Divisional Outputs in Support of Government ObjectivesCorporate Staff Division


Other Corporate Staff Divisional Outputs in Support of Government ObjectivesDefence Inspectorate


Other Divisional Outputs in Support of Government ObjectivesEqual OpportunitiesAnnual Review

Performance Report: Core Divisional ObjectivesOther Divisional Outputs in Support of Government Objectives

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C h a p t e r 6 C o m m a n d a n d C o n t r o l Annual Review

Performance Report: Core Divisional Objectives

Other Outputs Produced for DOD Clients

C h a p t e r 7 L a n d w a r d D e f e n c eAnnual Review


Strategic DirectionInfantry CapabilityArmour CapabilityArtillery Capability

Air Defence Artillery CapabilityEngineer Capability

Operational Intelligence CapabilitySupport Capability

General Training CapabilityCommand and Control Capability

Other Outputs Produced for DOD ClientsConclusion

C h a p t e r 8 A i r D e f e n c eAnnual Review


Strategic DirectionOperational Direction

Air Combat CapabilityAir Transport and Maritime Capability

Helicopter CapabilityCommand and Control Capability

Operational Support and Intelligence CapabilityBase Support Systems Capability

Education, Training and Development CapabilityTechnical Support Capability

Other Outputs ProducedOther Outputs in Support of Government

C h a p t e r 9 M a r i t i m e D e f e n c eAnnual Review


Maritime Direction CapabilityMaritime Combat CapabilityMaritime Logistic CapabilityMaritime Training Capability

General Base Support CapabilityOther Outputs in Support of Government

Conclusion

C h a p t e r 1 0 M i l i t a r y H e a l t h S e r v i c eAnnual Review


Strategic Direction

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Military Health SupportArea Military Health Service

Specialist/Tertiary Health ServiceProduct Support Capability

Base Support CapabilityMilitary Health Training Capability

Occupational Health and SafetyOther Outputs in Support of Government

Conclusion

C h a p t e r 1 1 D e f e n c e I n t e l l i g e n c eAnnual Review

Challenges to the Achievement of Objectives

C h a p t e r 1 2 J o i n t S u p p o r tAnnual Review


Strategic DirectionHuman Resources Support and Management

Joint Logistic ServicesCommand and Management Information Systems

Service CorpsJoint TrainingMilitary Police

Other Outputs ProducedOther Divisional Outputs in Support of Government

A p p e n d i x A U t i l i s a t i o n o f C o n s u l t a n t sA p p e n d i x B S e r v i c e D e l i v e r y I m p r o v e m e n t

P A R T 4 M A N A G E M E N T R E P O R T C h a p t e r 1 3

Report of the Audit CommitteeReport of the Accounting Officer

for the year ended 31 March 2005

P A R T 5 A U D I T O R - G E N E R A L ' S R E P O R T O N D O D F I N A N C I A L S T A T E M E N T S

C h a p t e r 1 4 R e p o r t o f t h e A u d i t o r G e n e r a l t o P a r l i a m e n t o n t h e F i n a n c i a l S t a t e m e n t s o f V o t e 2 2

C h a p t e r 1 5 S t a t e m e n t o f A c c o u n t i n g P o l i c i e s a n d R e l a t e d M a t t e r s

C h a p t e r 1 6 R e p o r t o f t h e A u d i t o r - G e n e r a l t o P a r l i a m e n t o n t h e F i n a n c i a l S t a t e m e n t s o f t h e S p e c i a l D e f e n c e A c c o u n t

C h a p t e r 1 7 A n n e x u r e A : P r o g r e s s m a d e w i t h P r e v i o u s l y R e p o r t e d M a t t e r s

L i s t o f A b b r e v i a t i o n s a n d A c r o n y m s

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L I S T O F T A B L E S

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TITLEC H A P T E R 3

Personnel Expenditure by Programme for the period 1 April 2004 to 31 March 2005

Personnel Expenditure by Salary Band for the period 1 April 2004 to 31 March 2005

Salaries, Overtime, Home Owners' Allowance and Medical Assistance by Programme for

1 April 2004 to 31 March 2005

Salaries, Overtime, Home Owners’ Allowance and Medical Assistance by Salary Band for

the period 1 April 2004 to 31 March 2005

Employment and Vacancies by Programme as at 31 March 2005

Employment and Vacancies by Salary Bands as at 31 March 2005

Employment and Vacancies by Critical Occupation as at 31 March 2005

Annual Turnover Rates by Salary Bands for the period 1 April 2004 to 31 March 2005

Annual Turnover Rates by Critical Occupation for the period 1 April 2004 to 31 March 2005

Reasons for Termination of Service in the Department for the period 1 April 2004 to

31 March 2005

Promotions by Critical Occupation for the period 1 April 2004 to 31 March 2005

Promotions by Salary Band for the period 1 April 2004 to 31 March 2005

Progress on the Status of Employment Equity within the Department of Defence since 1994

Total Number of Employees by Occupational Category as on 31 March 2005

Total Number of Employees by Occupational Band as on 31 March 2005

Recruitment by Occupational Band for the Period 1 April 2004 to 31 March 2005

Promotion by occupational Band for the Period 1 April 2004 to 31 March 2005

Terminations by Occupational Band for the Period 1 April 2004 to 31 March 2005

Performance Rewards (Salary Levels 1 - 12) by Race and Gender for the period


Performance Rewards by Salary Bands for Personnel below Senior Management Service

for the period 1 April 2004 to 31 March 2005

Performance Rewards by Critical Occupation for the period 1 April 2004 to 31 March 2005

Performance related rewards (cash bonus) by Salary Band, for Senior Management Service,


Sick Leave taken by DAP for the period 1 January 2004 to 31 December 2004

Sick Leave taken by PSAP for the period 1 January 2004 to 31 December 2004

Disability Leave taken by PSAP for the period 1 January 2004 to 31 December 2004

Annual Vacation Leave taken by DAP by Salary Band for the period 1 January 2004 to

31 December 2004

Annual Vacation Leave taken by PSAP by Salary Band for the period 1 January 2004 to

31 December 2004

Capped Leave taken by DAP by Salary Band in the DOD for the Period 1 January 2004 to

31 December 2004

Capped leave taken by PSAP by Salary Band in the DOD for the Period 1 January 2004 to

31 December 2004

Leave Pay-outs for DAP as a Result of Leave that was not taken for the Period

1 January 2004 to 31 December 2004

TABLE

3.1

3.2

3.3

3.4

3.5

3.6

3.7

3.8

3.9

3.10

3.11

3.12

3.13

3.14

3.15

3.16

3.17

3.18

3.19

3.20

3.21

3.22

3.23

3.24

3.25

3.26

3.27

3.28

3.29

3.30

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TABLE3.31

3.32

3.33

3.34

3.35

3.36

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3.38

3.39

3.40

3.41

3.42

3.43

3.44

3.45

3.46

3.47

4.1

4.2

4.3

4.4

4.5

4.6

4.7

6.1

6.2

6.3

6.4

6.5

6.6

7.1

7.2

7.3

8.1

TITLELeave Pay-outs for PSAP as a Result of Leave that was not taken for the Period

1 January 2004 to 31 December 2004

Job Evaluation, 1 April 2004 to 31 March 2005

Profile of employees whose salary positions were upgraded because their posts were

upgraded, 1 April 2004 to 31 March 2005

Employees whose salary levels exceed the grade determined by job evaluation,


Training Needs Identified, 1 April 2004 to 31 March 2005

Training Provided, 1 April 2004 to 31 March 2005

Collective Agreements 1 April 2004 to 31 March 2005

Misconduct and disciplinary hearings of PSAP finalized, 1 April 2004 to 31 March 2005

Types of Misconduct Addressed at Disciplinary Hearings

Individual Grievances Lodged for the Period 1 April 2004 to 31 March 2005

Disputes Lodged with Councils for the Period 1 April 2004 to 31 March 2005

Strike Actions for the Period 1 April 2004 to 31 March 2005

Precautionary Suspensions of PSAP for Period 1 April 2004 to 31 March 2005

Injury on duty, Defence Act Personnel for the period 1 April 2004 to 31 March 2005

Injury on duty, Public Service Act Personnel for the period 1 April 2004 to 31 March 2005

Most Commonly Reported Offences (DAP) for FY2004/05

Details of Health Promotion and HIV/AIDS Programmes in the DOD

C H A P T E R 4Military Ranks and their Civilian Equivalents

Bilateral and Trilateral Structure Meetings FY2004/05

DOD Participation in the Inter-State Defence and Security Committee, SADC and other

Multinational Organisational Activities

Military Attaché and Advisor Corps Representation in South Africa

Foreign Learning Opportunities Offered to and Utilised by SANDF Members

Training Offered to Foreign Military Students

Reserve Force Budget FY2004/05 and FY2005/06

C H A P T E R 6Ordered Operations: External

Internal Operational Deployments: "Support to the People of South Africa"

Humanitarian Relief Deployments

Ad Hoc Deployments

Joint and Multinational Exercises

Other Outputs Produced for the DOD

C H A P T E R 7Redundant Force Structure elements Closed Down

SA Army Participation in Exercises (Single, Joint and Multinational)

Outputs Produced for DOD Clients

C H A P T E R 8 Outputs in Support of the Short-term Force Employment Plan

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L I S T O F F I G U R E S

FIGURE3.1

4.1

4.2

TITLEOrganisational Structure of the DOD

SANDF Peace Support Operations on the African Continent

Map of Deployed SANDF Military Attachés

TABLE

9.1

9.2

9.3

9.4

9.5

9.6

9.7

9.8

10.1

10.2

10.3

10.4

10.5

10.6

10.7

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10.11

10.12

12.1

12.2

A.1

B.1

TITLEC H A P T E R 9

Formative Training: Planned vs Achieved Output

Military Skills Development Training: Output Achieved

Military Functional and Warfare Training: Planned vs Achieved Output

Technical Training: Planned vs Achieved Output

Staff Training: Planned vs Achieved Output

Foreign Learning Opportunities Utilised

Training Afforded to Foreign Learners

Foreign Deployment of SA Navy Personnel and Equipment

C H A P T E R 1 0General and SA Military Health Service Orders, FY2004/05

Mobile Military Health Formation Force Preparation Exercises, FY2004/05

Services Supplied by Area Military Formation, FY2004/05

Services Supplied by Tertiary Military Health Formation, FY2004/05

Aviation Health Services Provided, FY2004/05

Services Rendered by the Military Psychological Institute, FY2004/05

Maritime Health and Base Orientated Services, FY2004/05

Veterinary Health Services provided, FY2004/05

Analysis of Orders placed and valued, FY2004/05

Course presented at the School for Military Health Training, FY2004/05

Results of Nursing Courses, FY2004/05

Other Services Rendered by 7 Medical Battalion Group to Other State Departments,

FY2004/05

C H A P T E R 1 2Land Restitution by the Department

Other Outputs Produced by the Joint Support Division

A P P E N D I X AReport on Consultants Appointments Using Appropriated Funds during FY2004/05

A P P E N D I X B Service Delivery Improvements and Management Interventions

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b u i l d i n g a S o u t hA f r i c a t h a t t r u l yb e l o n g s t o a l l

D E P A R T M E N T :D E F E N C E

FOREWORD BY THE HONOURABLEM.G.P. LEKOTA,MINISTER OF DEFENCE

he year under reviewmarks the beginning ofthe Second Decade ofFreedom of South Africa'syoung democracy: thusfinancial year (FY2004/05) was a period in which

the Department of Defence (DOD) wasengaged in a critical review of its strate-gic direction, performance againstplans, constitutional mandate to ensurean appropriate defence capability, andthe imperative of an affordable SouthAfrican National Defence Force(SANDF). To this end our alignmentwith South African foreign policy objec-tives, and the continued implementa-tion of the Military Strategy and HumanResource Strategy 2010 remained a keypriority.

In pursuing the Government's supportfor growing democratisation on ourcontinent, the DOD continued to play apivotal role during the period underreview by creating an environment ofsecurity and stability to enhance thediplomatic initiatives of various Africanstates which were aimed at ensuringpeaceful, free and fair elections. In thisregard our key effort to promote peace-keeping in Africa continued to focus onthe Democratic Republic of the Congoand Burundi, where most of our troopsare still stationed. Further afield small-er-scale deployments in Ethiopia and

Eritrea, Liberia, the Sudan and Côted'Ivore continued.

DOD support for the United Nations,the African Union, the New Partner-ship for Africa's Development and theSouthern African Development Com-munity's (SADC) imperative of peacefor sustainable economic developmentcontinued with an increasinglyfocussed approach with regard to thepredetermined priority issues of vari-ous regional and continental multilat-eral forums.

The external deployment of the SANDFinvolved personnel and logistics sup-port for the roll-out of hardware andprocedures to ensure free and fair elec-tions, securing the general public andkey role players in potentially volatileareas during elections, support for thedisarmament, demobilisation and reha-bilitation of ex-combatants, the integra-tion of armed forces, and support forpost-conflict reconstruction initiatives.

Issues relating to peace, security andstability in the SADC were furtheremphasised by the development ofDOD activities through South Africa'stenure as Chair of the SADC Inter-stateDefence and Security Committee. Inthis regard the DOD played a signifi-cant role in the development of theSADC Brigade of the African Standby

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Force and the Early Warning System, both of which aredue to be fully operational in 2005.

The DOD continued to grapple with the twin challengesof an affordable force design and the imperative of arevised mandate aligning the White Paper on Defenceand the Defence Review. This review takes place in thecontext of the external focus of defence operations. Inthis regard the Department will finalise the White Paperon Defence and Defence Review by 2005.

Under ministerial guidance to strengthen further theoffice of the Secretary for Defence, the DOD has contin-ued to be reorganised and restructured. In this regard,together with the Public Service Commission and theDepartment of Public Service and Administration, wehave been supported by a special ministerial task teamcomposed of different sectors of Government and civicsociety. Their findings and recommendations will formthe basis of the new organisational structure. Part of thiswork involves enforcing the cohesion and effective oper-ation of our logistics capability, which is central to suc-cessful operations.

The transformation agenda of the DOD at senior man-agement level continued to progress during the periodunder review. In this regard key appointments at theleadership level of the SANDF were Lieutenant GeneralS.Z. Shoke as Chief of the South African Army, ViceAdmiral J. Mudimu as Chief of the South African Navy,Lieutenant General C. Gagiano as Chief of the SouthAfrican Air Force and as SANDF Chaplain General,Brigadier General M. Cornelissen.

The DOD remains fully committed and continues tosupport the President and the people of South Africa to

enhance and deepen democracy within our country,across our region and on the continent of Africa. In thisregard I wish to thank Deputy Minister Mluleki George,the Secretary for Defence, Mr January Masilela, and theChief of the SANDF, General Siphiwe Nyanda, and therest of the senior personnel and the staff of the DOD fortheir leadership and commitment to the work of theDepartment.

I also wish to also thank Lieutenant Generals GilbertRamano (former Chief of the South African Army),Rudolph Beukes, (former Chief of the South African AirForce) and Vice Admiral Johan Retief (former Chief ofthe South African Navy) for their sterling service to theSANDF and the DOD.

I also wish to pay tribute to our soldiers who fell in thecourse of duty both at home and outside the countrywhere they had been deployed on peacekeeping mis-sions.

Finally, the successful execution of our work has been toa significant extent due to the advice and intervention ofParliament and the Portfolio Committee on Defence.Your oversight role is appreciated.

M.G.P. LEKOTAMINISTER OF DEFENCE

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FOREWORD BY THE HONOURABLEM.E. GEORGE,DEPUTY MINISTER OF DEFENCE

uring the period underreview the Departmentof Defence (DOD),along with all otherGovernment depart-ments, celebrated theattainment of 10 Years

of Freedom whilst simultaneouslypreparing in earnest for the opportuni-ties and challenges of the SecondDecade of Freedom of the Republic ofSouth Africa.

In the planning and strategy processesthe DOD was fully satisfied that it hadsuccessfully complied with the Consti-tutional mandate to ensure that theSouth African National Defence Force(SANDF) was prepared at all times todefend the sovereignty and integrity ofthe people and territory of South Africa.Furthermore, support for the SA PoliceServices continued and support forGovernment's foreign policy initiativesin the Southern African DevelopmentCommunity (SADC) region and acrossthe continent of Africa was prioritisedand implemented accordingly.

Planning progressed in earnest with aclear priority to update the two man-dates, the White Paper on Defence andthe Defence Review, both of which arecritical to our realignment with Govern-ment priorities and issues in our envi-ronment that impact on our administra-

Dtive performance and defence capabili-ties. In this regard the update of theDefence Review and White Paper onDefence progressed as the DOD, andparticularly the SANDF, continued tograpple with the twin challenges ofsustainability and affordability.

The implementation of the DODHuman Resource Strategy 2010 (HR2010) continued as a key initiative toensure the rejuvenation of the SANDFand the establishment of the most effec-tive, efficient and economic defencehuman resources composition. Thisrelates to transformation and the suc-cessful management of the careers, wel-fare and future of the members andpersonnel of the DOD.

During this period the HR 2010 strate-gy progressed with initiatives aimed atthe attainment of greater effectiveness,efficiency and economy in the DOD.

The largest intake in the SANDF's his-tory occurred in January 2005 when3836 young Military Skills Develop-ment System (MSDS) members report-ed. The MSDS has grown to 6262 at theend of FY2004/05 and makes up 9%of the Regular Force, giving a boostto the SANDF's rejuvenation and mis-sion readiness. Through the MSDS,the SANDF has improved the numberof privates/airmen/seamen aged

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between 18 and 24 by 25% in just over two years.

Secondly, the rejuvenation of the Reserve Force also con-tinued apace through direct recruiting for the SA ArmyReserve Force. As a direct result of this initiative aReserve Force motorized infantry company is currentlydeployed in the Democratic Republic of the Congoimproving the combat-fitness and mission readiness ofthe SANDF.

Finally, youth empowerment through the DOD YouthFoundation Programme is another key leg of HR 2010which is aimed at preparing select youth for entry intothe DOD's advanced occupations, such as trainee pilots,trainee naval combat officers and military health profes-sional students. The DOD continued with this pro-gramme with an intake of 250 learners.

All the above programmes also had a direct impact onthe transformation targets of the DOD in terms of bothrepresentivity and gender.

In the external operational areas problems relating topoor discipline and general misconduct on the part ofsome SANDF members were relatively few. Incidentswhere there was clear evidence of misconduct by ourtroops were dealt with very swiftly and decisively by theSANDF.

SANDF troops were commended by the United Nations,local government officials and their peers in peace sup-port operations for their professionalism and high stan-dards relating to peacekeeping operations, and also forthe humanitarian support they rendered to the localcommunities, service delivery in areas like medical facil-ities, VIP protection services, engineering for local gov-ernment and operations projects, logistics support forreferendums and elections processes and crime controlutilising boat patrols on the Great Lakes. The SANDFpresence has in general been a credible and effectivepeacekeeping force and a major stabilizing factor.

During the period under review the future welfare of the

South African military veterans was placed high on theagenda of DOD priorities. In this regard the Ministry ofDefence instituted a national Imbizo programme toaddress the concerns of the veterans, and progress inthis regard has been reported in a number of provincesacross the country.

As a result of the Imbizo programme it became quiteapparent that failure to register formally on the databaseand poor communication between the Governmentdepartments concerned and the veterans, and within theveteran structures themselves, has been a major obstaclein dealing with veterans' affairs.

The training, job creation and work placement of the vet-erans were further prioritised through liaison with otherservice delivery departments of Government and lobby-ing of funding agencies for support.

Further progress with transformation, in respect of bothperformance and representivity, in the DOD and theSANDF in particular, will depend to a large extent onthe programmes of action such as HR 2010 and con-comitant funding to enable the Department to achieve itstargets on schedule, and increased funding of key strate-gic initiatives, such as our landward defence capability,where a significant number of our new recruits will beabsorbed.

In embracing the Batho Pele spirit of Government theDOD has prioritized excellence in our performance andthe enhancement of our workplace environment forevery individual. Ultimately, our human resources areby far our most valued assets.

M.E. GEORGEDEPUTY MINISTER OF DEFENCE

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STRATEGIC OVERVIEW BYJ.B. MASILELA,SECRETARY FOR DEFENCE

aving successfullycompleted the firstdecade of democracyand the establishmentof the South AfricanNational DefenceForce (SANDF), the

Department of Defence (DOD) is gear-ing itself towards pursuing the Govern-ment's objectives for the second decadeof democracy (2004 to 2014). This DODAnnual Report for FY2004/05 providesa clear indication of the DOD's consis-tent performance in pursuit of its man-date as captured in the Constitution ofthe Republic of South Africa Act, (No108 of 1996) and the Defence Act, 2002(No 42 of 2002).

While emphasis was placed on theimplementation of the strategic militaryobjectives of the Military Strategy, theDOD had to ensure that these remainedin line with higher-level objectives,especially in relation to peace missions.Thus, the objective of 'promoting securi-ty' enjoyed priority status in order toensure successful implementation of theGovernment's foreign policy initiatives.Consequently, South African troopswere deployed in countries such asBurundi, Côte d'Ivore, the DemocraticRepublic of the Congo and the Sudan.During the period under review SouthAfrica was ranked the largest troop con-tributing country in Africa and ninth

largest troop contributing country tothe United Nations in the world. Withthe support of the Minister of Defence,the DOD successfully processeddeployment papers in time and securedsufficient funding for deployments.

Foreign deployments were further aug-mented with defence diplomatic activi-ties such as bilateral and multilateralagreements with South Africa's strate-gic partners. Bilateral and multilateralmeetings were held with countries suchas Algeria, Botswana, Brazil, France,India, Italy, Jordan, Lesotho, Namibia,Nigeria, Russian Federation, Sweden,Ukraine, United Kingdom, UnitedStates of America and Zimbabwe. Anumber of regional meetings were heldduring which the DOD played a criticalrole. These included the SouthernAfrican Development Community's(SADC) Inter-State Defence and Se-curity Committee (ISDSC) subcommit-tee meetings eg Spiritual and MoralAffairs group, Ministers of Defence,Operations Sub-subcommittee, Defen-ce Intelligence Standing Committee,Aviation Standing Committee, Tele-communications Workgroup, andAfrican Standby Force.

The DOD continued to improve itsinternal processes in order to minimisenegative audit findings and maximiseefficiency. In this regard, the Balanced

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Scorecard approach was adopted for implementation inthe department but it was first to be pilot-implementedwithin the two divisions, namely, the FinancialManagement Division and the SA Navy. Good progresswas made in this regard. Despite all efforts done toimprove compliance with statutory requirements relat-ing to good governance and accountability, the DOD isstill grappling with old information systems, which willonly be replaced once the Integrated FinancialManagement System (IFMS) is in place. Furthermore,the DOD continued to review its strategic policy docu-ments, particularly, the White Paper on Defence (1996)and the Defence Review (1998) in order to align themwith current realities in terms of threat perception, forcedesign and force structure.

As a member of three key Government Clusters, name-ly, the International Relations, Peace and Security(IRPS); Justice, Crime Prevention and Security (JCPS);and the Governance and Administration (G&A), theDOD kept track of the latest Government initiatives andit also gave feedback on its performance on the

Government Programme of Action, which include theSANDF's phased withdrawal from the routine internaldeployments and the phasing out of the Area DefenceCapability (Commandos).

I take pride in presenting this DOD Annual Report forFY2004/05 and I acknowledge the commitment of ourmen and women in the department for their continuedexcellent service delivery inside and outside the country.It is indeed humbling to know that our employees areprepared to expose themselves to ultimate danger dur-ing deployments in pursuit of the ideals of peace andsecurity in the continent.

MR J.B. MASILELASECRETARY FOR DEFENCE: DIRECTOR GENERAL

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THE YEAR IN REVIEWGENERAL S. NYANDA, SSA, SBS, CLS, DMG MMS, MMM

CHIEF OF THE SA NATIONAL DEFENCE FORCE

learly, the year 2004 wasa remarkable year for theSouth African NationalDefence Force (SANDF).The SANDF honouredits commitments to Gov-ernment and was em-

ployed in four peacekeeping theatres.The employment of the SANDF in thepeacekeeping initiatives marked adecade of Government policy initiativesand multilateral efforts aimed at creat-ing a climate of global and continentalpeace and stability, whilst on the homefront the SANDF, together with theNation, celebrated 10 years of Defencein a Democracy. The 10 Years ofFreedom celebrations saw the SANDFengage and participate with citizens ofSouth Africa who openly expressedtheir pride in the Forces and declaredtheir patriotism by signing up forrecruitment into the Military SkillsDevelopment System of the DefenceForce.

Honouring the peacekeeping commit-ments of Government was a key priori-ty of the SANDF in FY2004/05. Parlia-ment has committed South Africa tosupporting the African Union and theNew Partnership for Africa's Develop-ment for economic growth and sustain-able development. The SANDF willtherefore remain a key instrument ofGovernment and Parliament in support-

ing specifically the Peace and SecurityAgenda of the African Union and thecreation of the African Standby Force.

At a regional level, South Africaassumed the chair of the SouthernAfrican Development Community(SADC) Organ on Politics, Defence andSecurity Cooperation in August 2004.Under the leadership of the President,the Minister of Foreign Affairs and ourMinister of Defence, the SANDF playeda central role in planning the establish-ment of a standby brigade for theSADC region. The SANDF has forgedstrong partnerships with the SADCmember states in establishing theSADC Brigade. The role played by theSANDF has not only ensured that theAfrican Union and African StandbyForce are well on track, but has alsoensured a consultative planningprocess that will see the standbybrigade built on a solid foundation ofmutual commitment. This bodes wellfor the success of the African StandbyForce and peace in the region.

Defence diplomacy and the conduct ofDefence foreign relations have beenrealigned with the overall strategy anddirection of our Government. TheSANDF is now focussing on develop-ing military relations with its counter-parts in our immediate region andAfrica in general, whilst still maintain-

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ing our strategic military partnerships with the rest ofthe world.

During 2004, the SANDF made outstanding progress inmany fields of operations. South Africa is now the ninthlargest troop contributing country to the United Nationswith troops deployed in United Nations and AfricanUnion mandated operations. Our personnel deployedin Ethiopia and Eritrea, the Democratic Republic of theCongo, Burundi, Liberia and the Sudan have done out-standing work. In 2004 not only did we have over 3 000troops deployed, but also two senior SANDF officers incommand positions. The United Nations ForceCommander in Burundi, Major General D.M. Mgwebi,heads a multinational force to ensure the peace andBrigadier General D.D. Mdutyana was appointed theDeputy Divisional Commander deployed at the EasternDivision Headquarters in the Democratic Republic of theCongo. These deployments clearly reflect the fact thatthe United Nations and the African Union have greatrespect for our soldiers and their capabilities as a peace-keeping force.

International respect for the professionalism of theSANDF has seen an increase in the demand for our sol-diers to deploy externally in peace missions. Thisexpanded role was not envisaged in defence policy asoutlined in the White Paper on Defence of 1996 nor theDefence Review of 1998. Under the instruction of theMinister of Defence and the Parliamentary oversightcommittees, urgent attention was given to aligning theWhite Paper on Defence and the Defence Review withthe changing role of the SANDF as well as determiningan affordable force design. The revision process isscheduled to be completed by the end of 2005.

At home the SANDF continued to support the SA PoliceService with crime-prevention operations and border-line patrols throughout the year under review. The SAPolice Service is growing in its ability to deal with crimeand therefore the support needed by the SANDF in thisregard has steadily declined. The phased withdrawalfrom internal roles is on track and will continue. Of the183 commando units, 17 commando units were to beclosed down in FY2004/05, but the process is not yetfinalised. The SANDF will not withdraw from any areauntil there is a proper plan and capacity to enable the SAPolice Service to take over the responsibility of ensuringsecurity for all in the rural areas. The target date for thecomplete withdrawal from routine internal deploymentsremains 31 March 2009.

The harsh realities and complexity of the modern battle-space, and particularly the African battle-space, place animmense responsibility on the SANDF to ensure that itsoperational and combat training standards are worldclass. Hence, in 2004 the SA Navy held a joint training

exercise with France off the Cape coast and a multina-tional exercise was conducted between South Africanand United States forces. The SA Military Health Serviceconducted the multinational Exercise MEDFLAG, whichconcentrated on the military health and air operationscapability of the SANDF. Not only the SANDF benefit-ed from the training, but also the communities of theLimpopo Province where the exercise took place. In2004, the four Services and support elements were putthrough rigorous testing under Exercise INDLOVU toassess their capability, combat readiness and the conceptof jointness.

The prestigious Exercise AIRBORNE AFRICA 2004 wasonce again conducted by the SANDF and saw 15 coun-tries participate in this highly competitive and strenuousinternational exercise. The SANDF flag flew high at thisevent for many reasons, the culminating accolade beingwhen the SANDF paratroopers won the combat-readi-ness competition. This is a strong indication that ourconventional combat training is of an international stan-dard. The SANDF has also begun doctrinal develop-ment in respect of peacekeeping training. This develop-ment and extension of major training to peacekeepingdoes not detract from conventional training. As theMinister of Defence expressed it "We are not creating anSANDF of peacekeepers, but we are training a profes-sional body of men and women schooled in the art ofdefence, who can use their skills in peacekeeping rolesand post-conflict reconstruction and development".

The year under review also saw the senior leadership ofcertain critical Services hand over the baton to new lead-ership. The Military Command saw changes in theServices with Lieutenant General S.Z. Shoke appointedas Chief of the SA Army, Lieutenant General C. Gagia-no as Chief of the SA Air Force and Vice AdmiralJ. Mudimu as Chief of the SA Navy.

Recruitment intakes into the Military SkillsDevelopment System were successful. Altogether 4 200bright, young and healthy South Africans entered intotraining service for a period of two years. Recruitingmen and women of talent and potential at this time, isregarded as a key factor in the success of the futureDefence Force in its expanded role. Similarly, the man-agement of the health and well-being of our men andwomen is a high priority on the agenda of the SANDF.The management and prevention of HIV/AIDS, throughProject PHIDISA, and the Masibambisane campaign arereceiving high priority.

The increasing role of peacekeeping missions saw theSANDF draw expertise from its Reserve Force fordeployment in the peacekeeping missions. The need forthe Reserve Force as an integral part of the SANDF 'coreforce concept' was thus confirmed. The strategy for the

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development of a transformed and viable Reserve Forcehas been approved, which will have a profound impacton the well-being of the Reserve Force in the yearsahead. The Council for the Support of National Defence,chaired by Mr Tokyo Sexwale, which comprises busi-ness leaders, labour leaders, academics and prominentindividuals, is aimed at promoting the Reserve Forceservice. The Council is in its early days, but it is envis-aged that it will play an important role in building anational spirit of volunteerism and patriotism among allSouth Africans.

The DOD has committed itself to the process of landreform in general and to the restitution process in par-ticular. The DOD commits itself to participating in landclaims negotiations in a spirit of social justice and withthe objective of resolving such claims. In total, landclaims that have been lodged against the DOD amountto 311 270 hectares. A court ruling made in FY2003/04in favour of the DOD's not restoring the land of the SAArmy Combat Training Centre (Lohatlha) has not yetbeen fully resolved. During the year under review noland was handed back, but the DOD has indicated thatit is willing to restore 53 178 hectares. A recent claimwas received regarding Air Force Base Hoedspruit inLimpopo Province, and this will receive the necessaryattention.

The force renewal and modernisation of the SANDF areon track. The SAS MENDI, the last of our four newcorvettes, was delivered to the SA Navy. The corvettesare in the process of being fitted with combat suites andare undergoing acceptance trials before they are put into

commission. The first of three submarines was launchedin Germany in June 2004 and we are expecting her toarrive in South African waters by July 2005. The firstAugusta A109 light utility helicopter produced by DenelAerospace was unveiled at the 2004 Africa Aerospaceand Defence Expo in September 2004. Flying andground crew training in the A109 are progressing well at87 Helicopter Flying School, while test flying of theHawk lead-in fighter trainers is continuing at the TestFlight and Development Centre at Bredasdorp. Theintegration of these systems will noticeably increase theoperational capabilities and readiness of the SANDF inthe interest not only of South Africa, but also of theregion and the continent.

I am privileged to have served under the command ofour President for the past six years and proud to haveled the SANDF, but it is now time to hand over to newleadership in Defence. As we advance into our seconddecade of democracy in South Africa, I want to urge themen and women who bear our national arms to standproud and always to uphold our National Flag andConstitution.

I salute you!

S. NYANDACHIEF OF THE SOUTH AFRICAN NATIONALDEFENCE FORCE: GENERAL

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PART 1: STRATEGIC DIRECTION

STRATEGIC DIRECTION

I N T R O D U C T I O N

inancial Year 2004/05was a particularly spe-cial year for the Depart-ment of Defence (DOD),which comprises the De-fence Secretariat and theSouth African National

ic objectives and targets as specified inthe DOD Strategic Business PlanFY2004/05. Furthermore, it demon-strates how the SANDF executes themilitary strategic objectives of theMilitary Strategy.

Like any other State department, thechallenges faced by the DOD are furthercompounded by limited budgetary allo-cation. However, despite these chal-lenges the DOD continued to performand execute its mandate in accordancewith its Strategic Business Plan.

A I MThe aim of this DOD Annual Report forFY2004/05 is to account for the per-formance of the DOD in accordancewith the approved DepartmentalBusiness Plan for the period 1 April2004 to 31 March 2005.

S C O P E O F T H E D O DA N N U A L R E P O R TThe DOD Annual Report FY2004/05covers the non-financial performancereports of the Divisions and Services ofthe DOD per programme, while theaudited financial statements are includ-ed as Appendices to the report. Thereport is subdivided into five parts asfollows:

Part 1: Strategic Direction.Part 2: Organisational Struc-ture and Human Resources.

FDefence Force (SANDF). Not only wasit the final year of the Decade ofDemocracy but also the tenth year sincethe SANDF was established. Duringthe year under review, the SANDF hadchanges of command when the newChief of the SA Army, LieutenantGeneral S.Z. Shoke, Chief of the SA AirForce, Lieutenant General C. Gagiano,and Chief of the SA Navy, Vice AdmiralJ. Mudimu were appointed.

There was a significant increase in thenumber of SANDF troops deployedoutside the country in various peacemissions on the African continent. Thisrequired concerted efforts from theSecretary for Defence and the Chief ofthe SANDF to secure adequate fundingfor such deployments. The DOD imple-mented the Military Strategy to complywith Government's orders for conduct-ing external missions.

The DOD Annual Report FY2004/05provides a comprehensive feedback tothe public on the achievement of specif-

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Part 3: Programme Performance.Part 4: Management Report of the DOD'sAccounting Officer.Part 5: Auditor-General's Report on DODFinancial Statements.

S T R A T E G I C P R O F I L E

M A N D A T EThe DOD's mandate derives from the Constitution of theRepublic of South Africa (Act No 108 of 1996), the WhitePaper on Defence (May 1996), the Defence Review(April 1998) and the Defence Act (Act No 42 of 2002).

V I S I O NEffective defence for a democratic South Africa.1

M I S S I O NTo provide, manage, prepare and employ defence capa-bilities commensurate with the needs of South Africa, asregulated by the Constitution, national legislation, par-liamentary and executive direction.

M A N D A T EThe Constitution of the Republic of South Africa, theDefence Act, the White Paper on Defence and theDefence Review mandate the DOD/SANDF. Thesestatutes and policies, inter alia, provide the regulatoryframework that guides the execution of the defence pro-gramme.

A I M O F T H E D O DThe aim of the DOD is to defend and protect the RSA, itsterritorial integrity and its people in accordance with theConstitution and the principles of international law reg-ulating the use of force.

A L I G N M E N T W I T H C A B I N E T A N DC L U S T E R P R I O R I T I E SThe DOD is required to align its planning processes withthose of Government. Furthermore, it has to ensure theimplementation of Government's priorities as articulat-ed in the Ten-Year Review Report and managed throughGovernment Clusters to which the DOD belongs. TheMinister of Defence also provides strategic guidelinesand priorities for the given year so that decisions takenat Government's Makgotla meetings are properly incor-porated into the DOD's planning processes.

The DOD has a control process for the implementationof the Government's Programme of Action as they relateto the SANDF. While most of the DOD's responsibilitiesas identified in the Programme can only be implement-

ed over a number of years, the DOD has already madesignificant progress in many areas such as the phasedwithdrawal from routine internal deployments in sup-port of the South African Police Service.

M I N I S T E R O F D E F E N C E ' S P R I O R I T I E S F O R F Y 2 0 0 4 / 0 5The Minister of Defence identified four priorities for theDOD for FY2004/05:

To provide support for Government's diplo-matic drives/initiatives in Africa, to promoteregional security in the form of peace missions,including post-conflict reconstruction.To restore and maintain the conventionaldefence capabilities of the SANDF.To systematically reduce the SANDF's routineinternal deployments to zero by 31 March 2009.To address the critical challenges in HumanResources Strategy 2010 as a priority:

Determine the size and the composition ofthe required intakes to ensure that Govern-ment's objectives with respect to peace-sup-port operations are achieved and the con-ventional reserves are sufficiently proven toensure continuity in their ranks.Rejuvenate the SANDF human resourcescomposition.Implement the new way that members servein the SANDF.Use "one force concept" for force deploy-ment and force employment to adequatelyresource and utilise both the regulars andthe reserves.Right-size the DOD.

S T R A T E G I C F O C U SOn the basis of the Minister of Defence's priorities andthe strategic environmental analysis, the DOD/SANDFidentifies the strategic focus. The strategic focus of themedium term was identified as follows:

To create an affordable and sustainable forcedesign and structure.To introduce the new weapon systems intooperation, bearing in mind the challengesposed by its cost and complexity.To meet the DOD's approved and funded obli-gations.To provide support for the Government'sdiplomatic initiatives in Africa.To promote regional security in the form ofpeace missions, including post-conflict recon-struction.

1 The vision was changed from "The DOD ensures, in accordance with the Constitution, effective defence for a democraticSouth Africa, enhancing national, regional and global security through balanced, modern, affordable and technologicallyadvanced defence capabilities" at the DOD Strategic Worksession, March 2004.

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To systematically reduce the SANDF's internaldeployments to be completed by 31 March2009.

The short-term focus of the DOD/SANDF was onpreparing defence capabilities;employing defence capabilities to meet opera-tions and commitments by Government; andthe restructuring of the DOD.

F U N C T I O N S O F T H E S E C R E T A R Y F O R D E F E N C EIn terms of section 8 of the Defence Act, (Act 42 of 2002),the Secretary for Defence is

the Head of Department as contemplated inthe Public Service Act, 1994, and the account-ing officer for the Department as contemplat-ed in Section 36 of the Public FinanceManagement Act, 1999;the principal departmental adviser to theMinister of Defence on defence policy matters;advising the Minister on any matter referred tothe Secretary for Defence by the Minister;

performing any function entrusted by theMinister to the Secretary for Defence, in partic-ular those necessary or expedient to enhancecivil control by

Parliament over the DOD;Parliamentary committees having oversightover the DOD; and the Minister over the DOD.

providing the SANDF with comprehensiveinstructions regarding exercise of any powerdelegated or the performance of any dutyassigned to members by the Secretary forDefence as Head of Department andAccounting Officer of the DOD; monitoring compliance with policies and direc-tions issued by the Minister of Defence to theSANDF and report thereon to the Minister; andensuring discipline of, administrative controlover and management of employees, includingeffective utilisation and training.

F U N C T I O N S O F T H E C H I E F O F T H E S A N D FIn terms of section 14 of the Defence Act (Act 42 of 2002)the Chief of the SANDF

is the principle adviser to the Minister on anymilitary, operational and administrative matterwithin the competence of the Chief of theDefence Force;must comply with any direction issued by theMinister under the authority of the Presidentas contemplated in section 202(2) of theConstitution;

is responsible for formulating and issuing mil-itary policy and doctrines;must execute his command by issuing orders,directives and instructions, and by giving com-mands;is responsible for the direct management andadministration of the Defence Force in an effec-tive way, including the effective utilisation andthe education, training and development of allmembers of the Defence Force, and employeesof the department where so required by theSecretary for Defence;is responsible for the execution of approvedprogrammes of the budget for the DefenceForce;must supply the Secretary for Defence withsuch information with regard to the DefenceForce as may be requested by the Secretary forDefence;is responsible for the employment of theDefence Force in accordance with an authorisa-tion in terms of section 201(20) of theConstitution and section 18 (1) of the DefenceAct;is responsible for the training of members ofthe Defence Force to act in accordance with theConstitution and the law, including customaryinternational law and international agreementsbinding on the Republic;is responsible for the maintenance of such mil-itary response capabilities as may be autho-rised by the Minister;is responsible for planning of contingencieswhich may require the use of the DefenceForce;must manage the Defence Force as a disci-plined military force;is responsible for the development of a non-racial, non-sexist and non-discriminatory insti-tutional culture within the Defence Force inaccordance with the Constitution and depart-mental policy on equal opportunity and affir-mative action.

P A R Y S R E S O L U T I O N SIn pursuit of the affordability and sustainability of theDOD, the DOD's top management met in Parys, in theFree State, in March 2004, where the following strategicdecisions, called the Parys Resolutions were taken:

Resolution One: The Defence White Paper of1996 must be reviewed.Resolution Two: The Defence Review of 1998must be reviewed.Resolution Three: The DOD's vision was revis-ited and changed as indicated above.Resolution Four: The DOD must revisit itsstructural arrangements for optimal efficiency


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and effectiveness, including the appropriatecapacity for the Secretary for Defence and theChief of the SANDF.Resolution Five: The DOD must identifystrategic gaps and develop a Concept ofOperations and a Concept of Support.

Resolution Six: The DOD must improve itspublic image.Resolution Seven: The DOD must investigatethe use of the Balanced Scorecard approach asa performance management tool, in conjunc-tion with the SA Excellence Model.

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DEFENCE OBJECTIVES, OUTCOME ANDOUTPUTS


The Department of De-fence (DOD) is a contin-gency-based organisa-tion whose mandate isderived from the basicright of every nation todefend itself against ag-T

gression and protect its sovereignty.This mandate is enshrined in theConstitution and restated in theDefence Act. The DOD consists of theDefence Secretariat headed by theSecretary for Defence and the SouthAfrican National Defence Force(SANDF) headed by the Chief of theSANDF.

The purpose of the nine programmes ofDefence is to administer, acquire, sup-port, prepare and employ the capabili-ties required to protect South Africa'ssovereignty. The outcome and outputsof Defence are not highly visible, asSouth Africa is in a time of peace.However, Parliament funds the DefenceProgramme to prepare South Africa forcontingencies that could arise as identi-fied in the Military Strategy. Thus, theaim of the Defence Programme isgeared towards

preparing and providing capa-bilities - preparation of theSANDF to enable it to respondto contingencies;

executing Defence commit-ments as ordered - commandand control of the SANDFforces during deployments;andthe administration and sup-port of the DOD.

D E P A R T M E N T O FD E F E N C E P R O G R A M M E SThe outputs of the DOD are achievedthrough nine programmes which are asfollows:

Defence Administration withthe purpose of conducting thepolicy development, manage-ment and administration ofthe department.Landward Defence with thepurpose of providing pre-pared and supported land-ward defence capabilities forthe defence and protection ofSouth Africa.Air Defence with the purposeof providing prepared andsupported air defence capabil-ities for the defence and pro-tection of South Africa.Maritime Defence with thepurpose of providing pre-pared and supported maritimedefence capabilities for thedefence and protection ofSouth Africa. Military Health Service with


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the purpose of providing prepared and sup-ported medical combat support elements andservices.Defence Intelligence with the purpose of pro-viding a defence intelligence and counter-intel-ligence capability.Joint Support with the purpose of providingjoint support capabilities and services to thedepartment.Command and Control (Joint Operations) withthe purpose of providing an operational capa-bility to conduct all operations, joint and multi-national military exercises successfully as wellas the management of defence capabilities.Special Defence Account with the purpose ofproviding for special defence activities andpurchases.

S T R A T E G I C O B J E C T I V E SThe DOD has three enduring military strategic objec-tives1 in respect of which capabilities are prepared, pro-vided for and employed.

To Enhance and Maintain ComprehensiveDefence Capabilities. The provision of self-defence in accordance with international lawagainst any external threat of aggression,which endangers the stability of South Africa.To Promote Peace, Security and Stability inthe Region and on the Continent. The provi-sion of external deployment or support toenhance security in support of decisions by theexecutive.To Support the People of South Africa. Sup-porting the population of South Africa in oper-ations and activities other than war, when theresponsible State departments do not have ade-quate capacity to do so.

D E F E N C E O U T C O M E 2

During FY2004/05 the DOD, in co-operation with otherState departments, once again achieved the outcome of

"Effective defence for a democratic South Africa".

Clearly, the DOD is well on track towards its vision ofenhancing national, regional and global securitythrough acquiring and developing defence capabilitiesthat are balanced, modern, affordable and technological-ly advanced.

D E F E N C E O U T P U T S 3

According to its mission, the DOD/SANDF provided,managed, prepared and employed defence capabilitiesthat contributed to the security and defence of SouthAfrica during the year under review.

The SANDF produced its outputs within the frameworkof the military strategic objectives. All Services andDivisions have operational plans indicating the nature oftheir outputs, clients to benefit, the linkage between theiroutputs and Government's priorities, and the requiredresource requirements for those outputs. Risks whichare to be managed within sub-programmes as well asthose which are to be transferred to the Minister ofDefence and hence Parliament due to insufficientresources, are reflected in the plans. Included in theplans are the strategies and mechanisms to mitigatethose risks. The performance of the DOD in accordancewith its plans was measured quarterly as well as annu-ally against performance measures developed by theServices and Divisions.

The Inspector General of the DOD conducted regularaudits in order to verify the results achieved. The over-all outputs of the DOD, primarily through the SANDF,can be categorised as primary and secondary outputs.The detailed outputs of the individual Services andDivisions are indicated in Chapters 5 to 12.

Primary Outputs. The primary outputs provided by theDOD to Government are the following:

Defence commitments which includeongoing operations for which plans andresource allocations can be made inadvance;operations that must be executed during theyear and, if unforeseeable, for which no pro-vision has been made; andjoint and multinational exercises required toprepare forces for operations.

Landward defence capabilities.Air defence capabilities.Maritime defence capabilities.Military health capabilities.

Secondary Outputs. In addition the DOD provides sec-ondary outputs utilising the collateral capabilities of theSANDF, namely:

Rendering cryptographic security services toGovernment departments.

1 Military strategic objectives as revised at the Minister of Defence Strategic Worksession in August 2004.2 Outcomes are defined by National Treasury as "the end result that Government wants to achieve and refer particularly to

changes in the general state of well-being in the community".3 Outputs are defined by National Treasury as "the final goods or services rendered by departments to external customers or

clients". The DOD defines the final goods and services produced by Services and Divisions that are supplied to internal cus-tomers or clients as "operational outputs".

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The National Codification Bureau.Defence (Military) Diplomacy which includesthe following:

Placing and controlling defence attachés.Preparing and servicing of Memoranda ofUnderstanding.Active participation in the defence struc-tures of the United Nations, African Union,Southern African Development Communi-ty (SADC) and Inter-state Defence andSecurity Committee (ISDSC).

Honouring the DOD's international obliga-tions according to international agreements,such as those pertaining to search-and-rescueoperations and hydrography.Participation in Government Clusters (Inter-national Relations, Peace and Security - IRPS;Justice, Crime Prevention and Security - JCPS;and Governance and Administration - G&A).Defence-related policy advice.

This report focuses on the primary outputs of allServices and Divisions of the DOD. Their secondaryoutputs are embedded in their day-to-day activities ascovered in their respective programme performancereports from Chapter 5 to Chapter 12.

S E R V I C E S R E N D E R E DThis information is included in Chapter 4, under "SocialContribution".

D I S C O N T I N U E D S E R V I C E SThe phasing out of the Area Defence Capability (com-mandos) of the SA Army is taking place at present. TheCabinet approved the SANDF/SA Police Service Exit/Entry Strategy. Phase one of the strategy was imple-mented. Two group headquarters and 17 commandounits were to be closed down in FY2004/05, but theprocess is not yet finalised. The closing down of groupheadquarters and commando units will continue asplanned over the next five years, to be completed by31 March 2009.

N E W / P R O P O S E D S E R V I C E SNone

L O S S E S A N D D A M A G E SSee financial statements for details.

E V E N T S A F T E R T H E A C C O U N T I N GD A T ENone




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A N N U A L R E V I E W

he most obvious humanre-source progress dur-ing FY2004/05 has beenthe in-crease in the reju-venation tempo of theSouth African NationalDefence Force (SANDF).

ORGANISATIONAL STRUCTURE ANDHUMAN RESOURCES MANAGEMENT

T

PART 2: ORGANISATIONALSTRUCTURE AND HUMANRESOURCES

During January 2005 the SANDF hadthe largest single intake since 1994when 3 570 young Military SkillsDevelopment System members report-ed for service.

The second component of the SANDF'snew way that members serve, ie theCore Service System, was implementedin January 2005. The DOD decidedthat, as part of the gradual migrationtowards the Core Service System, nonew appointments would henceforthbe made iro the Medium-term andLong-term Service Systems.

In the absence of an exit mechanism,the DOD continued to depend on natu-ral attrition to make progress withHuman Resource (HR) rightsizing. Themain HR rightsizing aims were to reju-venate the SANDF from the bottom upand to address employment equityimbalances.

Overall, the DOD continued to regulateand maintain its HR composition and

to manage the qualitative and quantita-tive dimensions thereof within the allo-cated budget.

O R G A N I S A T I O N A L S T R U C T U R EThe organisational structure of the DODas at the end of FY2004/05 (Services andlarger Divisions) is indicated in Figure3.1.

D E P A R T M E N T O F D E F E N C EH U M A N R E S O U R C E S T R A T E G Y 2 0 1 0 :I M P L E M E N T A T I O NP R O G R E S SThe DOD's HR strategic direction to befollowed until 2010 is contained in theDOD HR Strategy 2010. This strategyaddresses the high-level HR manage-ment concept to configure the DOD'sHR composition in the most effective,efficient and economical way. Theimplementation of HR Strategy 2010 isone of the Minister of Defence's priori-ties.

The Military Skills Development Systemhas grown to 6 262 members, compris-ing 10% of the Regular Force. Throughthe above system, the rank-age ratio ofprivates aged between 18 and 24 yearshas improved by 27,4% since 2003. TheMilitary Skills Development System hasalso been utilised by the Department ofPublic Works to train 74 young "built

c h a p t e r 3


F i g u r e 3 . 1 O r g a n i s a t i o n a l S t r u c t u r e o f t h e D e p a r t m e n t o f D e f e n c e

Ministry of Defence

Minister of DefenceDeputy Minister of Defence

Policy andPlanningDivision

GovernmentInformationTechnology

Office

DefenceInspectorate

DepartmentalAcquisition andProcurement

Division

FinancialManagement

Division

Chief of the SA National Defence Force

Corporate StaffDivision

SA Army

Secretary for Defence

environment candidates" in the SA Navy. The periodwitnessed the earning of a Certificate in Military Studiesby the first group of 146 Military Skills DevelopmentSystem officers from the Military Academy. To createcapacity for rejuvenation, a voluntary programme wasinstituted through which 215 SANDF members wereretrained for redeployment in the SA Police Service'sSecurity and Protection Division.

The Youth Foundation Training Programme is an initia-tive of the DOD to empower previously disadvantagedlearners seeking to pursue careers in the highly spe-cialised combat, technical and health occupations of theDOD. Out of 250 DOD Youth Foundation TrainingProgramme learners enrolled for the 2004 academicyear, 228 were appointed in the DOD on completion oftheir studies. Pass rates for the various subjects contin-ued to improve. Thus, the 2004 final Grade 12 examina-tion pass rate was 98% for Mathematics, 99% forPhysical Science and 100% for Biology. The above pro-gramme continued to contribute towards the enhance-ment of employment equity in scarce DOD occupation-al classes and SANDF musterings.

The one force concept, which implies the integratedforce preparation and force employment of the RegularForce and the Reserve Force, received further momen-

tum. The Reserve Force Strategy and Plan wereapproved by the Defence Staff Council to guide the revi-talising and strengthening of the conventional ReserveForce. In order to boost the rejuvenation of the ReserveForce, the SA Army directly recruited 1 443 ReserveForce members for preparation and utilisation in peacesupport missions. A pilot project Reserve Force TrainingScheme has also been launched in the SA Military HealthService through which scholarships are being granted tomilitary health students serving in the SA MilitaryHealth Service's reserves.

The DOD has depended on natural attrition, increasedMilitary Skills Development System intakes and selec-tive appointments to further its HR rightsizing objec-tives. The main HR rightsizing aims were to rejuvenatethe SANDF from the bottom up through the MilitarySkills Development System and to address employmentequity imbalances through recruitment and career man-agement initiatives, such as promotions.

The execution of HR Strategy 2010 has been supportedby the promulgation of a DOD HR ManagementStrategy, which aims to align the execution of the DOD'sHR management function in the most effective, efficientand economical way. This strategy guides the DOD withrespect to HR governance and structuring, HR manage-

EqualOpportunities

ChiefDirectorate

Joint OperationsDivision

SA AirForce

SA Navy SA MilitaryHealthService

JointSupportDivision

DefenceIntelligence

Division

1 0 D E P A R T M E N T O F D E F E N C E A N N U A L R E P O R T F Y 2 0 0 4 - 2 0 0 5

c h a p t e r 3

ment capacity generation, HR service delivery, HR forcepreparation and HR operational conduct as well as HRmanagement system renewal and continuous improve-ment.

M A C R O - W O R K F O R C E C O M P O S I T I O NBecause the DOD has had to depend on natural attritionas the only means to reduce personnel numbers, theenvisaged strength of a full-time composition (DefenceAct Personnel (DAP) and Public Service Act Personnel(PSAP) of 70 000 as projected in the 1998 DefenceReview, will only be attainable through the implementa-tion of an exit mechanism that will facilitate a furtherreduction in personnel numbers.

The DOD's Regular Force, which consists of DAP (mem-bers serving in the Long-term Service, Medium-termService, Short-term Service and Auxiliary Service and inthe new service system's Military Skills DevelopmentSystem and the Core Service System) increased by 2,4%from 60 444 as at 1 April 2004 to 61 947 as at 31 March2005. The PSAP component decreased by 2,9% from

15 469 as at 1 April 2004 to 15 022 as at 31 March 2005.The reduction was achieved by making use of selectiveappointments and by relying on natural attrition.

P E R S O N N E L E X P E N D I T U R EThe actual employee cost as a percentage of total DODHR costs, including Strategic Defence Packages (SDPs),was 40%, which correlates with the benchmark of 40% asstated in the 1998 Defence Review.

The gradual migration from the current service systemto a new service system for DAP will determine futurepersonnel strengths and expenditure. The full-timecomponent needs to be reduced to provide more fundsfor operating expenditure and to ensure a viable contin-gent-ready Reserve Force.

A clearly defined and stable force design and force struc-ture is, however, a prerequisite for defining the appro-priate and affordable size and shape of the DOD's HRcomposition. See Tables 3.1 to 3.4 for details.

T a b l e 3 . 1 P e r s o n n e l E x p e n d i t u r e b y P r o g r a m m e f o r t h e p e r i o d 0 1 A p r i l 2 0 0 4 t o 3 1 M a r c h 2 0 0 5

Programme

Administration

Landward Defence

Air Defence

Maritime Defence

Military Health Support

Defence Intelligence

Joint Support

Command and Control

Special Defence Account

Total

TotalExpenditure

(Rand)

707 648 874

3 190 406 049

2 257 176 812

1 100 822 224

1 340 906 412

138 161 984

2 400 014 260

1 230 674 970

7 045 000 000

19 410 811 584

Total PersonnelExpenditure

(Rand)

560 900 073

2 639 393 663

1 173 846 707

685 997 994

936 065 719

109 552 569

1 137 819 477

479 024 442

0

7 722 600 644

TrainingExpenditure

(Rand)

21 049 249

6 786 686

15 530 455

8 260 728

2 815 188

1 248 992

18 453 563

1 308 509

0

75 453 370

Professionaland Special

Services

(Rand)

7 771 090

81 875 882

61 261 444

70 135 187

3 817 511

4 731 801

50 815 531

57 145 779

0

337 554 225

PersonnelCost as a % of Total

Expenditure

79%

83%

52%

62%

70%

79%

47%

39%

0%

40%

AveragePersonnelCost per

Employee(Rand)

149 215

75 701

112 761

99 420

127 062

165 238

97 659

354 046

0

100 334

Note: In determining the average personnel cost per employee, Reserve Force expenditure, which amounted to R197,305,996(wages and allowances) and Reserve Force personnel strength are excluded, owing to the non-continuous utilisation ofReserve Force members.

c h a p t e r 3

D E P A R T M E N T O F D E F E N C E A N N U A L R E P O R T F Y 2 0 0 4 - 2 0 0 5 1 1

Salary Band

Military Skills Development System

Lower Skilled (Levels 1-2)

Skilled (Levels 3-5)

Highly Skilled Production (Levels 6-8)

Highly Skilled Supervision (Levels 9-12)

Professionals (Levels 13-16)

Senior Management (Levels 13-16)

Total

PersonnelExpenditure

(Rand)

100 393 808

393 852 633

2 278 167 190

2 988 646 449

1 799 365 950

23 167 802

139 006 812

7 722 600 644

% of TotalPersonnel

Cost

1.3%

5.1%

29.5%

38.7%

23.3%

0.3%

1.8%

100%

AveragePersonnel Costper Employee

(Rand)

16 032

47 538

78 215

121 224

216 166

472 812

518 682

100 334

Strength (Excluding

Reserve ForceUtilisation)

6 262

8 285

29 127

24 654

8 324

49

268

76 969

T a b l e 3 . 2 P e r s o n n e l E x p e n d i t u r e b y S a l a r y B a n d f o r t h e p e r i o d 1 A p r i l 2 0 0 4 t o 3 1 M a r c h 2 0 0 5

Programme

Administration

LandwardDefence

Air Defence

MaritimeDefence


DefenceIntelligence

Joint Support

Command and Control

Total

Amount

(Rand)

413 921 340

1 986 744 960

831 598 568

495 942 611

666 890 711

83 214 905

860 709 107

142 640 634

5 481 662 836

% ofPersonnelCost perProgram-

me

74%

75%

71%

72%

71%

76%

76%

30%

71%

T a b l e 3 . 3 S a l a r i e s , O v e r t i m e , H o m e o w n e r s ' A l l o w a n c e a n d M e d i c a l A s s i s t a n c e P r o g r a m m e f r o m 1 A p r i l 2 0 0 4 t o 3 1 M a r c h 2 0 0 5

Salaries Overtime Home Owners' Allowance Medical AssistanceAmount

(Rand)

115 619

67 911

69 834

2 796 434

52 871 965

2 814

26 597

162 061

56 113 235


me

0.021%

0.003%

0.006%

0.408%

5.648%

0.003%

0.002%

0.034%

0.727%

Amount

(Rand)

6 569 360

26 413 734

14 250 146

10 196 590

9 645 993

1 392 622

14 057 951

2 556 615

85 083 011


me

1.2%

1%

1.2%

1.5%

1.0%

1.3%

1.2%

0.5%

1.1%

Amount

(Rand)

5 366 123

10 485 791

2 659 923

10 742 042

7 113 233

634 533

7 551 936

313 685

44 867 266


me

1.0%

0.4%

0.2%

1.6%

0.8%

0.6%

0.7%

0.1%

0.6%

Note: In determining the average personnel cost per employee, Reserve Force expenditure, which amounted to R197 305 996(wages and allowances) and Reserve Force personnel strength are excluded, owing to the non-continuous utilisation ofReserve Force members.

Note: The amount paid for salaries excludes wages paid to Reserve Forces, owing to the non-continuous utilisation of ReserveForce members.


c h a p t e r 3

E M P L O Y M E N T A N D V A C A N C I E SThe establishment figures indicated in the tables belowreflect the evolving post establishment process. Itshould also be noted that the indicated vacancies werepredominantly unfunded. The DOD is still in theprocess of restructuring with the aim of workingtowards an HR composition of 70 000 personnel.Appointment targets were determined based on criticalutilisation requirements and the available budget andtranslated into the DOD's HR Plans.

Compared to the situation on 31 March 2004 the estab-lishment decreased by 870 posts. The decrease of theestablishment has been due to continuous adjustments,as restructuring and re-engineering in the DOD are stillin process. The increase in the number of employeeswas mainly due to the inflow of Military SkillsDevelopment System members, which is required torejuvenate the SANDF's ageing HR component. SeeTables 3.5 to 3.7 for details.

Note: The expenditure for overtime includes the commuted overtime payable to health workers and medical professionals.

Salary Band

Military Skills DevelopmentSystem


Skilled(Levels 3-5)

Highly Skilled Production (Levels6-8)

Highly Skilled Supervision (Levels9-12)

Professionals(Levels 13-16)

SeniorManagement(Levels 13-16)

Total

Amount

(Rand)

69 865 026

314 476 481

1 483 561 742

2 199 707 695

1 322 017 686

13 950 110

78 084 095

5 481 662 835

% ofPerson-nel Cost

perSalaryBand

70%

80%

65%

74%

73%

60%

56%

71%

T a b l e 3 . 4 S a l a r i e s , O v e r t i m e , H o m e o w n e r s ' A l l o w a n c e a n d M e d i c a l A s s i s t a n c e b y S a l a r y B a n d f o rt h e p e r i o d 1 A p r i l 2 0 0 4 t o 3 1 M a r c h 2 0 0 5

Salaries Overtime Home Owners' Allowance Medical AssistanceAmount

(Rand)

0

3 052 626

1 760 628

9 596 607

34 945 819

5 627 871

1 129 685

56 113 236

% ofPerson-nel Cost

perSalaryBand

0.00%

0.78%

0.08%

0.32%

1.94%

24.29%

0.81%

0.73%

Amount

(Rand)

0

4 797 181

20 484 947

40 291 109

19 474 966

4 998

29 809

85 083 010

% ofPerson-nel Cost

perSalaryBand

0%

1.22%

0.90%

1.35%

1.08%

0.02%

0.02%

1.10%

Amount

(Rand)

0

13 892 894

6 318 122

20 567 761

3 606 297

166 880

315 310

44 867 264

% ofPerson-nel Cost

perSalaryBand

0%

3.53%

0.28%

0.69%

0.20%

0.72%

0.23%

0.58%

c h a p t e r 3


Programme

Administration

Landward Defence

Air Defence

Maritime Defence


Defence Intelligence

Joint Support

Command and Control

Total

Establishment

4 513

37 444

13 420

9 904

9 926

1 021

17 134

1 726

95 088

Number ofEmployees as at31 March 2005

3 759

34 866

10 410

6 900

7 367

663

11 651

1 353

76 969

Vacancy Rate

16.7%

6.9%

22.4%

30.3%

25.8%

35.1%

32.0%

21.6%

19.1%

Additional to or below

Establishment

-754

-2 578

-3 010

-3 004

-2 559

-358

-5 483

-373

-18 119

T a b l e 3 . 5 E m p l o y m e n t a n d V a c a n c i e s b y P r o g r a m m e a s a t 3 1 M a r c h 2 0 0 5

Note: 4 039 training posts are included in the establishment of 95 088.

Salary Band

Military Skills Development System*







Total

Number ofPosts

0

13 725

34 724

35 614

10 652

106

267

95 088

Number ofEmployees as at31 March 2005

6 262

8 285

29 127

24 654

8 324

49

268

76 969

Vacancy Rate

0.0%

39.6%

16.1%

30.8%

21.9%

53.8%

-0.4%

19.1%

Additional to or below

Establishment

0

-5 440

-5 597

-10 960

-2 328

-57

1

-18 119

T a b l e 3 . 6 E m p l o y m e n t a n d V a c a n c i e s b y S a l a r y B a n d s a s a t 3 1 M a r c h 2 0 0 5

Note: *Members serving in the Military Skills Development System were placed in Regular Force (Salary Level 1 - 5)

Critical Occupations

Aircrew

Airspace Control

Artillery

Anti-aircraft

Combat Navy

Engineer

Medical Professional

Nursing

Technical

Total

Establishment

824

605

1 292

969

900

265

1 605

2 176

10 162

18 798

Number of QualifiedEmployees as at 31

March 2005

554

506

945

742

1 550

187

1 496

1 584

7 098

14 662

Vacancy Rate

32.8%

16,4%

26.9%

23.4%

-72.2%

29.4%

6.8%

27.2%

30.2%

22.0%

Shortage toEstablishment

-270

-99

-347

-227

650

-78

-109

-592

-3 064

-4 136

T a b l e 3 . 7 E m p l o y m e n t a n d V a c a n c i e s b y C r i t i c a l O c c u p a t i o n a s a t 3 1 M a r c h 2 0 0 5

MSDS MembersUnder Training

71

34

57

47

1 096

30

18

13

251

1 617Note: All newly recruited members serving in the SA Navy (Military Skills Development System) are serving as combat navy mem-

bers under training and are therefore not yet selected and functionally qualified as combat navy members.


c h a p t e r 3

E M P L O Y M E N T C H A N G E SAppointments. Budget constraints necessitated the lim-itation of appointments with the restriction of appoint-ments to specialised and professional occupations. Thisincluded entry level appointments in the Military SkillsDevelopment System to give momentum to the rejuve-nation of the SANDF's HR composition.

Terminations. In the absence of an exit mechanism, theDOD depended on natural attrition, such as contractexpiries, medical discharges, retirements, deaths andresignations. It is foreseen that the exit figures would

have been much higher had an exit mechanism existed.

The DOD experienced an increase of 557 terminations,compared to FY2003/04. One of the contributing fac-tors was the initiative between the DOD and the SAPolice Service Protection and Security Division to rede-ploy members of the SANDF on a voluntary basis to theSA Police Service as part of the process to create capac-ity for rejuvenation. The departmental transfersincreased from 83 (FY2003/04) to 314 (FY2004/05).These initiatives are also supportive of the HR Strategy2010.

Salary Band






Senior Management Service Band A

Senior Management Service Band B

Senior Management Service Band C

Senior Management Service Band D

Total

Number of Employeesper Salary Band as at

01 April 2004

*3 570

8 659

30 506

24 932

7 939

213

79

11

4

75 913

Appointments andTransfers into the

Department

4 132

0

74

257

137

2

1

0

1

4 604

Terminations andTransfers out ofthe Department

372

335

1 387

1 046

384

16

4

3

1

3 548

Increase/Decrease

105.3%

-3.9%

-4.3%

-3.2%

-3.1%

-6.6%

-3.8%

-27.3%

0.0%

1.4%

T a b l e 3 . 8 A n n u a l T u r n o v e r R a t e s b y S a l a r y B a n d s f o r t h e p e r i o d 1 A p r i l 2 0 0 4 t o 3 1 M a r c h 2 0 0 5

Note: *January/February 2004 Military Skills Development System intake.

Critical Occupation

Aircrew

Airspace Control

Artillery

Anti-Aircraft

Combat Navy

Engineer


Nursing

Technical

Total

Number of QualifiedEmployees per Occupation

as at 01 April 2004

489

470

874

694

527

155

1 490

1 583

7 072

13 354

Appointments andTransfers into the

Department

37

18

0

0

583

22

253

36

153

*1 102

Terminations andTransfers out ofthe Department

31

14

27

27

197

14

262

84

354

1 010

Increase/Decrease

1.2%

0.9%

-3.1%

-3.9%

73.2%

5.2%

-0.6%

-3.0%

-2.8%

0.7%

T a b l e 3 . 9 A n n u a l T u r n o v e r R a t e s b y C r i t i c a l O c c u p a t i o n f o r t h e p e r i o d 1 A p r i l 2 0 0 4 t o 3 1 M a r c h 2 0 0 5

Note: Occupations included in the Medical Professional occupation include Medical Practitioners, Pharmacists, Specialists andAncillary Health officials. 820 Military Skills Development System members are included in the appointment figure of 1 102.

c h a p t e r 3


Termination Type

Retirement

Deceased

Departmental Transfer

Contract Expiry

Discharge

Resign

Medical Discharge

Total

Number

295

926

314

489

357

1 059

108

3 548

% of Total

8.3%

26.1%

8.9%

13.8%

10.1%

29.8%

3.0%

100.0%

T a b l e 3 . 1 0 R e a s o n s f o r T e r m i n a t i o n o f S e r v i c ei n t h e D e p a r t m e n t f o r t h e p e r i o d1 A p r i l 2 0 0 4 t o 3 1 M a r c h 2 0 0 5

Critical Occupation

Aircrew

Airspace Control

Artillery

Anti-Aircraft

Combat Navy

Engineer


Nursing

Technical

Total

Employees asat 01 April

2004

489

470

874

694

527

155

1 490

1 583

7 072

13 354

Salary LevelPromotions as a% of Employeesby Occupation

34.6%

29.6%

26.5%

16.7%

36.2%

32.3%

13.9%

19.2%

16.4%

19.2%

T a b l e 3 . 1 1 P r o m o t i o n s b y C r i t i c a l O c c u p a t i o n f o r t h e P e r i o d 0 1 A p r i l 2 0 0 3 t o 3 1 M a r c h 2 0 0 5

Notch Progres-sion as a % ofEmployees by

Occupation

32.3%

56.2%

63.3%

70.0%

40.8%

26.5%

41.0%

59.6%

66.9%

59.9%

Note: 116 Military Skills Development System members are included in the number of promotions as indicated in critical occupations.

The number of resignations represented a huge part ofthe total attrition figures and can largely be attributed tothe more lucrative remuneration packages in the privatesector. The DOD continues to face a challenge in thisregard, despite the implementation of retention initia-tives for members serving in critical occupations. SeeTables 3.8 to 3.10 for details.

Promotions. The number of promotions of employeesin critical occupations to higher ranks has remained rel-atively stable. Compared to FY2003/04, 276 feweremployees in critical occupations have been promoted tohigher ranks and/or salary levels.

According to Tables 3.11 and 3.12, which indicates thepromotion rates to higher ranks/salary levels for the

Promotions toanother Salary

Level

169

139

232

116

191

50

207

304

1 157

2 565

Progression toanother Notchwithin a Salary

Level

158

264

553

486

215

41

611

944

4 728

8 000

Critical Occupation








Total

Employeesas at 01

April 2004

3 570

8 659

30 506

24 932

7 939

48

259

75 913

Salary LevelPromotions as a% of Employeesby Occupation

8.7%

0.1%

8.5%

14.1%

17.9%

10.4%

17.4%

10.4%

Notch Progres-sion as a % ofEmployees by

Occupation

0.0%

86.9%

68. 0%

71.6%

72.3%

0.0%

1.9%

68.3%

Promotionsto Another

SalaryLevel

311

9

2 603

3 513

1 423

5

45

7 909

Progression toAnother Notchwithin a Salary

Level

0

7 525

20 744

17 863

5 737

0

5

51 874

T a b l e 3 . 1 2 P r o m o t i o n s b y S a l a r y B a n d f o r t h e p e r i o d 1 A p r i l 2 0 0 4 t o 3 1 M a r c h 2 0 0 5


c h a p t e r 3

DOD compared to the past financial year, there was anincrease in the promotion rate of members serving onsalary levels 6-8 and salary levels 9-12. This was due tothe re-institution of rank and leg promotions in theDOD.

E M P L O Y M E N T E Q U I T YThe DOD's total strength as at 1 April 2005 was 76 969.The current gender representation of the total strength ofthe DOD was 59 668 males (78%) and 17 301 females(22%). At this time, 367 (0,5%) employees of the DODhave been registered as having a disability. The full-time component comprised 63,09% Africans, 12,64%coloureds, 1,03% Indians and 22,96% whites. This com-pares favourably with the Defence Review guidelines of64,68% Africans, 10,22% coloureds, 0,75% Indians and24,35% whites.

Top Management was represented at levels 15-17 with atotal of 17 incumbents. In terms of gender, 12 were Afri-can males, 3 were white males, while 2 female personnel(1 white and 1 African female) made up the total of 17.

Senior Management (levels 13-14) had a strength of 300.This represented 0.38% of the DOD's total strength of 76969. Of the 300 persons at this level, Africans represent-ed 115 (38%), whites 167 (55.6%), coloureds 7 (2.3%) andIndians 11 (3.6%). Gender representation at this levelwas 269 males (90%) and 31 females (10%). The gapanalysis between comparative figures for the total num-ber of employees by occupational band for the DOD'sSenior Management Occupational Band as at 31 March2005 indicated a positive growth of 7 black members,when compared to the situation on 31 March 2004.

Within the professionally qualified and experienced spe-cialists as well as the middle management group (salarylevels 9-12), the total was 8 324 and comprised 11% of thetotal strength (76 969) of the DOD. Africans represented2 131 (26%), whites 5 444 (65%), coloureds 589 (7%) and

Indians 160 (2%). The 31 March 2005 figures showed apositive growth for this occupational band, ie 234 (12%)Africans, 32 (6%) coloureds, 15 (10%) Indians. The num-ber of whites declined by 632 (4%) when compared tothe same date in 2004. The professionally qualified andexperienced specialists and middle management groupwere still predominantly white and male due to theDepartment's inherited HR composition, the need toretain expertise, the competitive nature of the labourmarket which constrained the sourcing of scarce blackexpertise and the long lead times required in the militaryto become qualified for command and middle manage-ment appointments. The DOD Youth FoundationTraining Programme, normal recruiting efforts as wellas the implementation of the DOD's fast-tracking policywere, however, addressing the gaps in the identifiedgroups.

Regarding the skilled, technical and academically quali-fied workers (salary levels 6-8), the total was 24 654 andrepresented 32% of the total strength (76 969). Africansrepresented 10 314 (42%), whites 9 868 (40%), coloureds3 949 (16%) and Indians 523 (2%).

Within the semi-skilled and discretionary decision-mak-ing group (salary levels 3-5) the total personnel figurewas 29 127 or 38% of the DOD's total strength of 76 969.This group comprised 24 259 (83%) Africans, 1 540 (5%)whites, 3 077 (11%) coloureds and 251 (1%) Indians.

10.76% or 8 285 of the total strength of 76 969 fell withinthe unskilled group (salary levels 1-2). Africans repre-sented 6 888 (83.13%), whites 27 (0.32%), coloureds 1 366(16.48%) and Indians 4 (0.04%) of this group.

The lower levels, inclusive of the Military SkillsDevelopment System, were over-represented by blacksand the low number of whites was an area of concern asit was envisaged that the Military Skills DevelopmentSystem intakes would enhance the representivity of

Gender

Male

Race

African

%

Coloured

%

Indian

%

White

%

1999 - 2004 (Averages)

40 826

51.1%

8 028

10.1%

798

1.0%

13 739

17.2%

T a b l e 3 . 1 3 P r o g r e s s o n t h e S t a t u s o f E m p l o y m e n t w i t h i n t h e D e p a r t m e n t o f D e f e n c e s i n c e 1 9 9 4

2004 - 2009(Projected)

36 656

52.4%

5 578

8.0%

410

0.6%

11 926

17.0%

1994 - 1998(Averages)

44 620

46.0%

10 486

10.8%

822

0.8%

23 561

24.3%

2004/2005

39 724

51.6%

7 692

9.9%

785

1.0%

11 467

14.9%

c h a p t e r 3


Gender Race 1999 - 2004 (Averages)

2004 - 2009(Projected)

1994 - 1998(Averages)

2004/2005

T a b l e 3 . 1 3 P r o g r e s s o n t h e S t a t u s o f E m p l o y m e n t w i t h i n t h e D e p a r t m e n t o f D e f e n c e s i n c e 1 9 9 4 ( c o n t i n u e d )

Female

Total

African

%

Coloured

%

Indian

%

White

%

7 394

9.3%

1 766

2.2%

180

0.2%

7 121

8.9%

79 852

8 598

12.3%

1 573

2.2%

115

0.2%

5 111

7.3%

69 967

5 040

5.2%

1 838

1.9%

110

0.1%

10 605

10.9%

97 082

8 838

11.5%

2 037

2.6%

219

0.3%

6 207

8.1%

76 969

Occupational Category(SASCO)

Male Total

T a b l e 3 . 1 4 T o t a l N u m b e r o f E m p l o y e e s b y O c c u p a t i o n a l C a t e g o r y a s o n 3 1 M a r c h 2 0 0 5

Legislators, Snr Officials and Managers

Professionals

Technicians and Associate Professionals

Clerks

Service and Sales Workers

Craft and Related Trades Workers

Plant, Machine Operators and Assemblers

Elementary Occupations

Total

Employees with disabilities

Female

6

103

337

1 510

2 902

1 378

120

1 336

7 692

46

Coloured

4

77

52

123

234

266

1

28

785

3

Indian

123

736

1 809

1 748

2 773

3 533

34

711

11 467

96

White

105

593

2 265

5 250

21 702

3 572

307

5 930

39 724

162

African

0

118

232

457

469

142

1

618

2 037

2

Coloured

2

52

48

61

32

14

0

10

219

0

Indian

6

832

893

3 161

741

360

0

214

6 207

57

White

11

473

710

2 028

2 680

574

1

2 361

8 838

1

African

257

2 984

6 346

14 338

31 533

9 839

464

11 208

76 969

367

whites at this level. Recruiting efforts are, however,being refocused in attempts to address the obvious

shortage of whites at entry level. See Tables 3.13 to 3.15for details.

Occupational Band Male Total

T a b l e 3 . 1 5 T o t a l n u m b e r o f e m p l o y e e s b y O c c u p a t i o n a l B a n d a s a t 3 1 M a r c h 2 0 0 5

Top Management

Senior Management

Professionally qualified and experienced specialists andmiddle-management

Skilled technical and academically qualified workers,junior management, supervi-sors, foremen and superin-tendents

Female

0

6

549

3 242

Coloured

0

8

110

435

Indian

3

154

4 250

5 664

White

12

101

1 686

8 043

African

0

1

40

707

Coloured

0

3

50

88

Indian

1

13

1 194

4 204

White

1

14

445

2 271

African

17

300

8 324

24 654

Note: The number of employees with disabilities is also included in the total.


c h a p t e r 3


T a b l e 3 . 1 5 T o t a l n u m b e r o f e m p l o y e e s b y O c c u p a t i o n a l B a n d a s a t 3 1 M a r c h 2 0 0 5 ( c o n t i n u e d )

Semi-skilled and discretionary decision making

Unskilled and defined decision making


Total


Female

2 584

850

461

7 692

46

Coloured

190

4

38

785

3

Indian

910

20

466

11 467

96

White

21 791

4 690

3 401

39 724

162

African

493

516

280

2 037

2

Coloured

61

0

17

219

0

Indian

630

7

158

6 207

57

White

2 468

2 198

1 441

8 838

1

African

29 127

8 285

6 262

76 969

367


During FY2004/05 the DOD recruited 4 604 employeeswhich comprised 3 506 (76%) Africans, 517 (11%) whites,522 (12%) coloureds and 59 (1%) Indians. Gender repre-sentation accounted for 2 965 (64%) males and 1 639(36%) females and 2 (0.04%) employees with disabilities.Of note was the recruitment of the Military SkillsDevelopment System, with Africans over-represented at

3 279 (79%), whites under-represented at 333 (8%),coloureds 493 (12%) and Indians 27 (1%).

More emphasis has to be placed on the recruitment ofWhites to meet the 24% target and also to improve theDOD representivity status at the lower levels. See Table3.16 for details.


T a b l e 3 . 1 6 R e c r u i t m e n t b y O c c u p a t i o n a l B a n d f o r t h e P e r i o d 1 A p r i l 2 0 0 4 t o 3 1 M a r c h 2 0 0 5

Top Management

Senior Management


Skilled technical and aca-demically qualified workers,junior management, supervi-sors, foremen and superin-tendents


Unskilled and defined deci-sion making


Total


Female

0

0

2

2

1

0

292

297

0

Coloured

0

0

7

10

0

0

21

38

0

Indian

0

1

30

27

2

0

247

307

0

White

1

0

36

36

30

0

2 220

2 323

0

African

0

0

5

15

4

0

201

225

0

Coloured

0

1

7

7

0

0

6

21

0

Indian

0

0

28

90

6

0

86

210

2

White

0

1

22

70

31

0

1 059

1 183

0

African

1

3

137

257

74

0

4 132

4 604

2


c h a p t e r 3


7 909 promotions were effected during FY2004/05. Ofthese 4 690 (59%) were Africans, 2 121 (27%) whites, 966(12%) coloureds and 132 (2%) Indians. Gender promo-tions amounted to 5 935 (75%) males and 1 974 (25%)females. In both the Top and Senior ManagementService of the 50 (0,06%) promotions that were effected,42 (84%) were males and 8 (16%) were female. 20 (0,25%)employees with disabilities were promoted during theFY2004/05.

Within the professionally qualified and experienced spe-cialists 1 423 persons were promoted, ie 562 (39%)Africans, 751 (53%) whites, 82 (6%) coloureds and 28(2%) Indians. Owing to their greater availability withinthis particular occupational class at this time, the per-centage of whites who were promoted within this groupwas greater than any of the other race groups.

In the skilled technical and academically qualifiedgroup, 3 513 employees and members were promoted, ie1 944 (55%) Africans, 975 (28%) whites, 532 (15%)coloureds and 62 (2%) Indians were promoted. SeeTable 3.17 for details.

The 3 548 terminations of service during FY2004/05comprised 2 018 (57%) Africans, 1 147 (32%) whites, 325(9%) coloureds and 58 (2%) Indians, including 2 779(78%) males and 769 (22%) females. Top and seniormanagement terminations amounted to 24 (0.67%), pro-fessionally qualified and experienced specialists andmid-management 384 (11%), 1 046 (29%) skilled andtechnical, 1 386 (39%) semi-skilled, 335 (9%) unskilledworkers and 373 (10.5%) Military Skills DevelopmentSystem. See Table 3.18 for details.


T a b l e 3 . 1 7 P r o m o t i o n s b y O c c u p a t i o n B a n d f o r t h e P e r i o d 1 A p r i l 2 0 0 4 t o 3 1 M a r c h 2 0 0 5

Top Management

Senior Management

Professionally qualified and experienced specialists andmid-management





Total


Female

0

2

67

400

233

0

17

719

1

Coloured

0

2

15

47

27

0

4

95

0

Indian

1

6

566

619

231

0

55

1 478

7

White

3

28

419

1 489

1 523

4

177

3 643

8

African

0

1

15

132

91

0

8

247

0

Coloured

0

0

13

15

9

0

0

37

0

Indian

1

2

185

356

85

1

13

643

4

White

0

4

143

455

404

4

37

1 047

0

African

5

45

1 423

3 513

2 603

9

311

7 909

20



c h a p t e r 3


T a b l e 3 . 1 8 T e r m i n a t i o n s b y O c c u p a t i o n a l B a n d f o r t h e P e r i o d 1 A p r i l 2 0 0 4 t o 3 1 M a r c h 2 0 0 5

Top Management

Senior Management






Total


Female

0

0

9

70

109

31

27

246

3

Coloured

0

0

7

12

18

0

6

43

0

Indian

2

8

210

345

106

0

101

772

6

White

1

9

66

249

1 034

210

149

1 718

9

African

0

0

4

30

21

13

11

79

0

Coloured

0

0

3

9

2

0

1

15

0

Indian

0

2

58

247

43

0

25

375

1

White

1

1

27

84

53

81

53

300

0

African

4

20

384

1 046

1 386

335

373

3 548

19


P E R F O R M A N C E R E W A R D SThe Secretary for Defence has the discretion to decide onthe establishment of a financial incentive scheme forcommendable performance, subject to the availability ofadequate funds in the departmental budget and themedium-term expenditure framework. It is thus withinhis/her discretionary powers to allow or disallow thepayment of performance rewards for a particular finan-cial year, and to revise performance rewards systemsannually.

The payment of performance rewards was dealt withseparately from the annual performance appraisal

process for the fourth consecutive year. The results ofthe process were positive, with an average of 14,6% ofeach rank group/salary level in the DOD receiving a per-formance incentive payment. The distribution per raceof members who received a performance bonus com-pared favourably with the guidelines on representivity.The DOD has managed to remain within its budget allo-cation for the payment of incentives for the fifth consec-utive year. The spending on performance incentives wasalso lower in real terms, indicating an acceptance of theprinciple among supervisors that, on average, only 15%of personnel can be considered for a performance incen-tive. See Tables 3.19 to 3.22 for details.

Race and Gender Beneficiary ProfileAverage Cost per

Employee

T a b l e 3 . 1 9 P e r f o r m a n c e R e w a r d s ( S a l a r y L e v e l s 1 - 1 2 ) b y R a c e a n d G e n d e r f o r t h e p e r i o d 1 A p r i l 2 0 0 4 t o 3 1 M a r c h 2 0 0 5

African

Male

Female

Coloured

Male

Female

Cost

46 961

39 012

7 949

9 521

7 631

1 890

No of Employeesas at 1 April 2004

6 422

5 244

1 178

1 438

1 135

303

No ofBeneficiaries

38 820 728

31 523 350

7 297 378

10 378 901

8 465 810

1 913 091

Cost

13.7%

13.4%

14.8%

15.1%

14.9%

16.0%

% of Total with-in Group

6 045

6 011

6 195

7 218

7 459

6 314

c h a p t e r 3


Race and Gender Beneficiary ProfileAverage Cost per

Employee

T a b l e 3 . 1 9 P e r f o r m a n c e R e w a r d s ( S a l a r y L e v e l s 1 - 1 2 ) b y R a c e a n d G e n d e r f o r t h e p e r i o d 1 A p r i l 2 0 0 4 t o 3 1 M a r c h 2 0 0 5 ( c o n t i n u e d )

Indian

Male

Female

White

Male

Female

Total


Cost

994

783

211

18 130

11 772

6 358

75 606

384

No of Employees asat 1 April 2004

162

124

38

3 026

1 815

1 211

11 048

62

No ofBeneficiaries

1 475 162

1 143 428

331 734

31 797 942

20 249 517

11 548 425

82 472 733

424 698

Cost

16.3%

15.8%

18.0%

16.7%

15.4%

19.0%

14.6%

16.1%


9 106

9 221

8 730

10 508

11 157

9 536

7 465

6 850

Salary Band Beneficiary ProfileAverage Costper Employee

T a b l e 3 . 2 0 P e r f o r m a n c e R e w a r d s b y S a l a r y B a n d f o r P e r s o n n e l b e l o w S e n i o r M a n a g e m e n t S e r v i c e f o r t h e p e r i o d 1 A p r i l 2 0 0 4 t o 3 1 M a r c h 2 0 0 5

Salary level 1-2

Salary level 3-5

Salary level 6-8

Salary level 9-12

Total


Cost

8 703

34 283

24 748

7 872

75 606

384

No of Employeesas at 1 April 2004

1 344

4 444

3 972

1 288

11 048

62

No ofBeneficiaries

5 166 570

22 946 286

34 487 120

19 872 757

82 472 733

424 698

Cost

15.4%

13.0%

16.0%

16.4%

14.6%

16.1%

% of Total within Group

3 844

5 163

8 683

15 429

7 465

6 850


Total Cost as a% of the Total

PersonnelExpenditure

1,3%

1,0%

1,2%

1,1%

1,1%

Critical Occupation Beneficiary ProfileAverage Cost per

Employee

T a b l e 3 . 2 1 P e r f o r m a n c e R e w a r d s b y C r i t i c a l O c c u p a t i o n f o r t h e p e r i o d 1 A p r i l t o 3 1 M a r c h 2 0 0 5

Aircrew

Airspace Control

Artillery

Anti-Aircraft

Combat Navy

Engineer


Nursing

Technical

Total

Cost

489

470

874

694

527

155

1 490

1 583

7 072

13 354


62

76

130

98

75

15

151

204

1 036

1 847

No ofBeneficiaries

879 195

669 054

951 038

673 386

827 296

239 804

1 906 038

1 878 179

9 039 285

17 063 275

Cost

12.7%

16.2%

14.9%

14.1%

14.2%

9.7%

10.1%

12.9%

14.6%

13.8%


14 181

8 803

7 316

6 871

11 031

15 987

12 623

9 207

8 725

9 238


c h a p t e r 3

Salary Band Beneficiary ProfileAverage Cost per

Employee

T a b l e 3 . 2 2 P e r f o r m a n c e r e l a t e d r e w a r d s ( c a s h b o n u s ) b y S a l a r y B a n d , f o r S e n i o r M a n a g e m e n t S e r v i c e , 1 A p r i l 2 0 0 4 t o 3 1 M a r c h 2 0 0 5

Band A

Band B

Band C

Band D

Total

Cost

213

79

11

4

307


31

15

2

1

49

No ofBeneficiaries

717 236

390 086

74 589

10 948

1 192 859

Cost

14.6%

19.0%

18.2%

25.0%

16.0%


23 137

26 006

37 295

10 948

24 344

F O R E I G N W O R K E R SAll personnel employed by the Department duringFY2004/05 were in possession of RSA citizenship.

U T I L I S A T I O N O F L E A V ECompared to the FY2003/04 report, there has been anincrease in the number of DAP and PSAP who utilisedsick leave during FY2004/05. Compared to FY2003/04,392 (1,6%) more DAP and 1 221 (15,5%) more PSAPutilised sick leave. The average number of days of sickleave utilised per employee again declined, from 8,5

days to 8 days for DAP. The average number of dayssick leave utilised by PSAP increased from 6,6 days to 10days. It was also noticeable that the highest figures werefor employees at salary levels 1-2 and 6-8.

According to the policy, annual leave must be takenwithin each leave cycle and vacation leave not taken isforfeited. The average annual leave taken of 32 workingdays by DAP and 24 calendar days taken by PSAP cor-relates with policy regulating this matter. See Tables3.23 to 3.31 for details.

T a b l e 3 . 2 3 S i c k L e a v e t a k e n b y D A P f o r t h e p e r i o d 1 J a n u a r y 2 0 0 4 t o 3 1 D e c e m b e r 2 0 0 4

Salary Band Total DaysTaken

% of Total Em-ployees Using

Sick Leave

CostNo of Employ-ees Using Sick

Leave

Ave per Em-ployee UsingSick Leave

Lower skilled (Levels 1-2)


Highly skilled production (Levels 6-8)

Highly skilled supervision (Levels 9-12)



Total

590

92 453

86 055

27 138

53

830

207 119

42.0%

31.4%

51.9%

46.1%

16.2%

42.6%

40.0%

64 531

13 085 654

21 450 270

11 551 666

44 764

668 971

46 865 856

58

10 491

10 655

3 484

6

98

24 792

10

9

8

8

9

8

8

T a b l e 3 . 2 4 S i c k L e a v e t a k e n b y P S A P f o r t h e p e r i o d 1 J a n u a r y 2 0 0 4 t o 3 1 D e c e m b e r 2 0 0 4



Sick Leave


Leave








Total

39 887

13 293

31 066

2 405

20

89

86 760

53.2%

69.0%

74.2%

43.3%

33.3%

42.1%

60.5%

5 808 948

2 667 487

10 308 776

1 587 088

23 868

97 337

20 493 504

4 335

1 319

3 078

331

4

16

9 083

9

10

10

7

5

6

10

Note: Sick leave taken by DAP for the period is indicated in calendar days.

Note: Sick leave taken by PSAP for the period is indicated in working days.

c h a p t e r 3


T a b l e 3 . 2 5 D i s a b i l i t y L e a v e t a k e n b y P S A P f o r t h e p e r i o d 1 J a n u a r y 2 0 0 4 t o 3 1 D e c e m b e r 2 0 0 4



Sick Leave


Leave






Professional (Levels 13-16)

Total

6 487

1 962

4 403

311

0

13 163

2.3%

2.9%

3.2%

1.3%

0.0%

2.6%

938 903

409 055

1 497 232

184 665

0

3 029 855

188

55

133

10

0

386

35

36

33

31

0

34

T a b l e 3 . 2 6 V a c a t i o n L e a v e t a k e n b y D A P b y S a l a r y B a n d f o r t h e p e r i o d 1 J a n u a r y 2 0 0 4 t o 3 1 D e c e m b e r 2 0 0 4

Salary Band Total Days Taken Average per Employee UsingVacation Leave







Total

4 493

797 687

671 042

263 232

1 185

7 900

1 745 539

33

31

33

35

35

35

32

Note: Annual vacation leave taken by DAP for the period is indicated in calendar days.

T a b l e 3 . 2 7 A n n u a l V a c a t i o n L e a v e t a k e n b y P S A P b y S a l a r y B a n d f o r t h e p e r i o d 1 J a n u a r y 2 0 0 4 t o 3 1 D e c e m b e r 2 0 0 4

Salary Band Total Days Taken Average per Employee UsingVacation Leave







Total

199 814

42 244

93 025

11 858

223

847

348 011

25

23

24

22

22

23

24

Note: Annual vacation leave taken by PSAP for the period is indicated in working days.


c h a p t e r 3

Ta b l e 3 . 2 8 C a p p e d L e a v e t a k e n b y D A P b y S a l a r y B a n d i n t h e D O D f o r t h e P e r i o d 1 J a n u a r y 2 0 0 4 t o 3 1 D e c e m b e r 2 0 0 4

Salary Band Total Days of CappedLeave Taken

Average per Employee TakingCapped Leave







Total

738

106 546

89 293

39 741

219

982

237 519

14

11

11

12

20

10

13

Note: Vacation leave taken by DAP for the period is indicated in calendar days.

T a b l e 3 . 2 9 C a p p e d L e a v e t a k e n b y P S A P b y S a l a r y B a n d i n t h e D O D f o r t h e P e r i o d 1 J a n u a r y 2 0 0 4 t o 3 1 D e c e m b e r 2 0 0 4

Salary Band Total Days of CappedLeave Taken

Average per Employee TakingCapped Leave







Total

5 184

962

1 505

143

10

1

7 805

7

7

6

5

10

1

7

Note: Vacation leave taken by PSAP for the period is indicated in working days.

T a b l e 3 . 3 0 L e a v e P a y - o u t s f o r D A P a s a R e s u l t o f L e a v e t h a t w a s n o t t a k e n f o r t h e P e r i o d 1 J a n u a r y 2 0 0 4 t o 3 1 D e c e m b e r 2 0 0 4

Salary Band Number ofEmployees

Average Payment per Employee

Leave payout for 2004/05 due to non-utlilisation of leave the previous cycle

Leave payout on termination of service for 2004/05

Total

46

1 609

1 655

3 275

12 870

16 145

Total Amount

150 650

20 709 002

20 859 652

T a b l e 3 . 3 1 L e a v e P a y - o u t s f o r P S A P a s a R e s u l t o f L e a v e t h a t w a s n o t t a k e n f o r t h e P e r i o d 1 J a n u a r y 2 0 0 4 t o 3 1 D e c e m b e r 2 0 0 4

Salary Band Number ofEmployees

Average Payment per Employee

Leave payout for 2004/05 due to non-utlilisation of leave the previous cycle

Leave payout on termination of service for 2004/05

Total

2

571

573

5 124

9 113

14 237

Total Amount

10 249

5 203 978

5 214 227

c h a p t e r 3


J O B E V A L U A T I O NTables 3.32 to 3.34 reflect the result of job evaluation con-ducted in the department.

Salary Band% of PostEvaluated

T a b l e 3 . 3 2 J o b E v a l u a t i o n , 1 A p r i l 2 0 0 4 t o 3 1 M a r c h 2 0 0 5

Lower Skilled (Level 1-2)


Highly Skilled Production (Levels 6- 8)




Total

Posts Downgraded

15

547

196

541

0

0

1 299

Number ofJobs

Evaluated

13 725

34 724

35 614

10 652

106

267

95 088

Number ofPosts

0

0

4

0

0

0

4

Number

0.1%

1.6%

0.5%

5.0%

0%

0%

1.4%

% PostsEvaluated bySalary Bands

0%

0%

2.0%

0%

0%

0%

0.3%

% of PostEvaluated

Posts UpgradedNumber

0

0

5

1

0

0

6

0%

0%

2.5%

0.2%

0%

0%

0.5%

T a b l e 3 . 3 3 P r o f i l e o f e m p l o y e e s w h o s e s a l a r y p o s i t i o n s w e r e u p g r a d e d b e c a u s e t h e i r p o s t s w e r e u p g r a d e d , 1 A p r i l 2 0 0 4 t o 3 1 M a r c h 2 0 0 5

Beneficiaries

Female

Male

Total


Africans

1

0

1

0

Asian

0

0

0

0

Coloured

0

0

0

0

White

0

1

1

0

Total

1

1

2

0

T a b l e 3 . 3 4 E m p l o y e e s w h o s e s a l a r y l e v e l s e x c e e d t h e g r a d e d e t e r m i n e d b y j o b e v a l u a t i o n ,1 A p r i l 2 0 0 4 t o 3 1 M a r c h 2 0 0 5

Total Number of Employees whose Salaries exceeded the Grades determined by Job Evaluation in FY2004/05

NONE

S K I L L S D E V E L O P M E N TLearnership. The DOD did not have any registeredlearnerships running for the reporting period. It is, how-ever, in the process of developing and registering learn-erships in different occupations. See Table 3.35 for theidentified training needs.

Skills Programmes and Short Courses. All formal andinformal training interventions, credit bearing and non-credit bearing are included in the applicable column ofTable 3.36. Most of these interventions were presented

internally in the DOD through its own trainingproviders. Some interventions were outsourced to pri-vate and other governmental training institutions.

Other Forms of Training. Studies at State cost as well asseminars and symposiums nationally and international-ly that contribute to the skills development of personnelare included in the applicable column of Table 3.36.Studies of DOD personnel at the Military Academy andexternal tertiary institutions are examples of membersincluded in the statistics.


c h a p t e r 3

Occupational CategoriesTotal

T a b l e 3 . 3 5 T r a i n i n g N e e d s I d e n t i f i e d , 1 A p r i l 2 0 0 4 t o 3 1 M a r c h 2 0 0 5

Legislators, senior officials,managers

Professionals


Clerks

Service workers

Craft and related trade workers

Plant and machine operators (Including drivers and ships' crew)

Elementary Workers (Labourers)

Subtotal

Total

19

238

1 475

1 509

1 883

4 463

5 707

8 631

3 922

27 611

1 090

8 749

2

462

3 203

8 005

17 301

59 668

76 969

Number ofEmployees

as at 31March 2005

Female

Male

Female

Male

Female

Male

Female

Male

Female

Male

Female

Male

Female

Male

Female

Male

Female

Male

Gender

3

6

451

871

388

921

76

34

100

400

91

141

21

86

22

36

1 152

2 495

3 647

Other Formsof Training

37

65

2 132

3 754

3 501

7 465

1 901

798

625

1 381

452

1 664

210

1 307

235

910

9 093

17 344

26 437

Skills Program-mes and otherShort Courses

Training Needs Identified at Start of Reporting PeriodLearner-

ships

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

34

59

1 681

2 883

3 113

6 544

1 825

764

525

981

361

1 523

189

1 221

213

874

7 941

14 849

22 790

Note: This table reflects the planned Skills Development interventions per occupational category for FY2004/05. The totals in thetable reflect the number of learners scheduled for Skills Development interventions.


T a b l e 3 . 3 6 T r a i n i n g P r o v i d e d , 1 A p r i l t o 3 1 M a r c h 2 0 0 5

Legislators, senior officials,managers

Professionals


Clerks

Service workers

Craft and related trade workers

Plant and machine operators (Including drivers and ships' crew)

19

238

1 475

1 509

1 883

4 463

5 707

8 631

3 922

27 611

1 090

8 749

2

462

Number ofEmployees

as at 31March 2005

Female

Male

Female

Male

Female

Male

Female

Male

Female

Male

Female

Male

Female

Male

Gender

3

5

451

864

387

802

74

31

78

392

98

130

20

86


32

37

1 995

3 851

3 543

7 303

1 899

774

612

1 396

463

1 629

209

1 287



ships

0

0

0

0

0

0

0

0

0

0

0

0

0

0

29

32

1 544

2 987

3 156

6 501

1 825

743

534

1 004

365

1 499

189

1 201

c h a p t e r 3



T a b l e 3 . 3 6 T r a i n i n g P r o v i d e d , 1 A p r i l t o 3 1 M a r c h 2 0 0 5 ( c o n t i n u e d )

Elementary Workers (Labourers)

Subtotal

Total

3 203

8 005

17 301

59 668

76 969

Number ofEmployees

as at 31March 2005

Female

Male

Female

Male

Gender

20

32

1 131

2 342

3 473


242

891

8 995

17 168

26 163



ships

0

0

0

0

0

222

859

7 864

14 826

22 690

Note: This table reflects the Skills Development interventions per occupational category for FY2004/05. The totals in the tablereflect the number of learners scheduled for Skills Development interventions.

T a b l e 3 . 3 7 C o l l e c t i v e A g r e e m e n t s 1 A p r i l 2 0 0 4 t o 3 1 M a r c h 2 0 0 5

Total Collective Agreements 1

T a b l e 3 . 3 8 M i s c o n d u c t a n d D i s c i p l i n a r y H e a r i n g s o f P S A P f i n a l i z e d , 1 A p r i l 2 0 0 4 t o 3 1 M a r c h 2 0 0 5

Outcomes of Disciplinary Hearings Number % of Total

Correctional Counselling

Verbal Warning

Written Warning

Final Written Warning

Suspended Without Pay

Fine

Demotion

Dismissal

Not Guilty

Case Withdrawn

Total

2

0

4

22

0

0

0

6

7

10

51

4%

0%

7.8%

43.1%

0%

0%

0%

11.8%

13.7%

19.6%

100%

L A B O U R R E L A T I O N S

T a b l e 3 . 3 9 T y p e s o f M i s c o n d u c t A d d r e s s e d a t D i s c i p l i n a r y H e a r i n g s

Types of Misconduct Number % of Total

Absence without permission

Theft

Fraud

Unauthorised Use/Possession

Loss of Funds/Property

Failure to Comply

Imprisonment

Negligence

Threatening

23

13

17

8

19

3

3

2

1

22.1%

12.5%

16.3%

7.7%

18.3%

2.9%

2.9%

1.9%

1%


c h a p t e r 3

Ta b l e 3 . 3 9 T y p e s o f M i s c o n d u c t A d d r e s s e d a t D i s c i p l i n a r y H e a r i n g s ( c o n t i n u e d )

Types of Misconduct Number % of Total

Intimidation

Prejudice Administration

Corruption

Fruitless Expenditure

Damage of Property

Assault

Fighting

Irregularities wrt issuing of Permits

Total

2

2

1

2

2

3

2

1

104

1.9%

1.9%

1%

1.9%

1.9%

2.9%

1.9%

1%

100%

Note: The totals reflect matters reported in terms of the formal disciplinary process.

T a b l e 3 . 4 0 I n d i v i d u a l G r i e v a n c e s L o d g e d f o r t h e P e r i o d 1 A p r i l 2 0 0 4 t o 3 1 M a r c h 2 0 0 5

Grievances Number % of Total

Number of Grievances resolved

Number of Grievances not resolved

Total Number of Grievances lodged

125

67

192

65%

35%

100%

Note: Only the grievances that were finalized at Ministerial and Secretary for Defence level are indicated as resolved.

T a b l e 3 . 4 1 D i s p u t e s L o d g e d w i t h C o u n c i l s f o r t h e P e r i o d 1 A p r i l 2 0 0 4 t o 3 1 M a r c h 2 0 0 5

Outcome of Disputes Number % of Total

Total number of disputes referred over the reporting period

Conciliations

Cases resolved

Cases settled

Cases thrown out on in limine arguments

Cases not resolved that will advance to arbitration or be withdrawn

Total

Arbitrations

Cases won by the DOD

Cases not favourable to the DOD

Cases pending

Cases settled

Total

Labour Court

Cases withdrawn by Employees

Cases pending

Total

74

9

0

5

22

36

3

1

3

1

8

1

2

3

25%

0%

14%

61%

100%

37.5%

12.5%

37.5%

12.5%

100%

33%

67%

100%

c h a p t e r 3


T a b l e 3 . 4 2 S t r i k e A c t i o n s f o r t h e P e r i o d 1 A p r i l 2 0 0 4 t o 3 1 M a r c h 2 0 0 5

Total Number of person working days lost

Total cost (R'000) of working days lost

Amount (R'000) recovered as a result of no work no pay

317

149 734.12

149 734.12

Note: The strike action took place when 317 workers were not satisfied with the salary adjustment implemented for FY2004/05.

T a b l e 3 . 4 3 P r e c a u t i o n a r y S u s p e n s i o n s o f P S A P f o r P e r i o d 1 A p r i l 2 0 0 4 t o 3 1 M a r c h 2 0 0 5

Number of people suspended

Number of people whose suspension exceeded 30 days

Average number of days suspended

Cost (R'000) of suspensions

14

11

135

421 853.82

I N J U R Y O N D U T YOf the 275 permanent disabilities reported for DAP, 15 are females and 260 males and of the 115 permanent disabili-ties reported for PSAP 48 are females and 67 males. See Tables 3.44 and 3.45 for details.

T a b l e 3 . 4 4 I n j u r y o n D u t y , D e f e n c e A c t P e r s o n n e l f o r t h e p e r i o d 1 A p r i l 2 0 0 4 t o 3 1 M a r c h 2 0 0 5

Nature of Injury Number % of Total

Permanent disablement

Fatal

Total

275

24

299

92%

8%

100%

T a b l e 3 . 4 5 I n j u r y o n D u t y , P u b l i c S e r v i c e A c t P e r s o n n e l f o r t h e p e r i o d 1 A p r i l 2 0 0 4 t o 3 1 M a r c h 2 0 0 5

Nature of Injury Number % of Total

Permanent disablement

Fatal

Total

115

3

118

97%

3%

100%

D I S C I P L I N ETable 4.36 below reflects the most common offences committed by military personnel subject to the disciplinary code.These figures reflect the number of charges and not the number of members prosecuted.

T a b l e 3 . 4 6 M o s t C o m m o n l y R e p o r t e d O f f e n c e s ( D A P ) f o r F Y 2 0 0 4 / 0 5

Most Common Offences 2004/05

Section 14 (a) MDC Absence without leave (AWOL)

Section 14 (b) MDC Absence from place of parade, duty, etc

Section 19 (2) MDC Disobeying a lawful command

Section 17 MDC Using threatening, insubordinate or insulting language

Section 33 (a) and (b) Drunkenness

Total

2 002

947

482

195

69

3 695

2003/04

2 741

1 026

359

194

147

4 467

2002/03

2 727

1 021

247

163

121

4 279


c h a p t e r 3

R E P O R T I N G O N H I V / A I D S A N DH E A L T H P R O M O T I O N P R O G R A M M E SThe SANDF is similar to other military forces world-wide, in that it is a high-risk environment for the trans-mission of HIV/AIDS. This further translates into ahigh risk for the occupational transmission of HIV/AIDS in the workplace in all Services.

To address this issue the DOD has promulgated a policythat mandates the implementation of HIV/AIDSWorkplace Programmes throughout the organisation.

Such workplace programmes must address the identifi-cation and management of occupational risks in theworkplace as well as peer education towards achievinga knowledgeable workforce. See Table 3.47 for details.

The SA Military Health Service, through the DOD HIVand AIDS Training Programme, provides training inthis regard.

Occupational risk was further addressed throughOccupational Health and Safety programmes at unitlevel.

T a b l e 3 . 4 7 D e t a i l s o f H e a l t h P r o m o t i o n a n d H I V / A I D S P r o g r a m m e s i n t h e D O D

Question Yes No

Has the department designated a member of the SMS to implement the provision contained in Part VI e ofChapter 1 of the Public Service Regulations, 2001? Ifso, provide her/his name and position

Does the department have a dedicated unit or has it designated specific staff members to promote thehealth and well-being of your employees? If so indi-cate the number of employees who are involved in thistask and the annual budget that is available for thispurpose.

Has the department introduced an Employee Assist-ance or Health Promotion Programme for youremployees? If so, indicate the key elements/servicesof this Programme.

Has the department established (a) committee(s) as contemplated in Part VI E.5 (e) of Chapter 1 of thePublic Service Regulations, 2001? If so, please pro-vide the names of the members of the committee andthe stakeholders that they represent.

Has the department reviewed its employment policies and practices to ensure that these do not unfairly dis-criminate against employees on the basis of their HIVstatus? If so, list the employment policies/practices soreviewed.

Has the department introduced measures to protect HIV-positive employees or those perceived to be HIVpositive from discrimination? If so, list the key ele-ments of these measures.

Does the department encourage its employees to undergo Voluntary Counselling and Testing (VCT)? Ifso, list the results that you have achieved.

Has the department developed measures/indicators to monitor and evaluate the impact of its health pro-gramme? If so, list these measures/indicators.

X

X

X

X

X

X

X

X

Details, if yes

The HIV and AIDS Programme of the Department of Defence is managed by the Surgeon General accord-ing to his mandate through the HIV and AIDS AdvisoryBoard. The Chairperson of the Board is the DirectorMedicine, Brigadier General P.J. Oelofse.

The implementation of the Strategic Plan for the Holistic Management of HIV and AIDS in the Department ofDefence is executed through the HIV and AIDSAdvisory Board, the HIV and AIDS CoordinatingCommittee and identified HIV Coordinators at SAMilitary Health Service unit level. Approximately 45members are involved in the execution of the pro-gramme. Donor funding is used.

Employee Assistance and various Health Promotion Programmes are managed through the DirectorateSocial Work. Additional Health Promotion Programmesare managed at SA Military Health Service Area Unitlevel by appointed Health Promotion and HealthPrevention Officials.

The HIV and AIDS Advisory Board manages the HIV and AIDS Programme of the DOD. Membership of theboard is determined through the Constitution of theBoard.

No, systematic review of policies was performed.

Addressed through Greater Involvement of People with AIDS Projects, support groups and general awarenessprojects. Grievance procedures are available accord-ing to policy in cases of real or perceived discrimination.According to the Knowledge, Attitudes and PracticeStudy survey of 2004 there has been an increase in theacceptance of people with Aids in the workplace.

VCT is available at all health care facilities in the SAMilitary Health Service. According to the Knowledge,Attitudes and Practice Survey of 2004 a total of 81% ofmembers has had an HIV test and 66% of membersindicated that they had an HIV test in the last 12months.

Monitoring and Evaluation of the Strategic Plan for the Holistic Management of HIV and AIDS in the DOD isperformed through a comprehensive plan. 206 indica-tors have been identified for measurement.

c h a p t e r 4




PART 3: PROGRAMMEPERFORMANCE

T h e p e r f o r m a n c e r e p o r t s a r e c o n t a i n e d i n t h ef o l l o w i n g c h a p t e r s :

C h a p t e r 4 : S y n o p s i s o f G e n e r a l P e r f o r m a n c e

C h a p t e r 5 : D e f e n c e A d m i n i s t r a t i o n

C h a p t e r 6 : C o m m a n d a n d C o n t r o l

C h a p t e r 7 : L a n d w a r d D e f e n c e

C h a p t e r 8 : A i r D e f e n c e

C h a p t e r 9 : M a r i t i m e D e f e n c e

C h a p t e r 1 0 : M i l i t a r y H e a l t h S e r v i c e

C h a p t e r 1 1 : D e f e n c e I n t e l l i g e n c e

C h a p t e r 1 2 : J o i n t S u p p o r t

C h a p t e r 1 3 : S p e c i a l D e f e n c e A c c o u n t


c h a p t e r 4

Ta b l e 4 . 1 M i l i t a r y R a n k s a n d t h e i r C i v i l i a n E q u i v a l e n t s

-

General

Lieutenant General

Major General

Brigadier General

Colonel

Lieutenant Colonel

-

Admiral

Vice Admiral

Rear Admiral

Rear Admiral (Junior Grade)

Captain

Commander

Military Rank

Director-General

Superintendent General

Deputy Director-General

Chief Director

Director

Deputy Director

Assistant Director

SA Army/SA Air Force/SA MilitaryHealth Service

Civilian Equivalent

Table 4.1 shows the military ranks and their civilianequivalents.

SA Navy

c h a p t e r 4




SYNOPSIS OF GENERAL PERFORMANCE


his chapter provides ashort synopsis of per-formance, covering vari-ous programmes, in thefollowing areas:

Governance andAccountability.Operations.Defence Diplomacy.Social Contribution.Reserve Force.

Detailed performance reports per pro-gramme are in Chapters Five to Twelve.

G O V E R N A N C E A N D A C C O U N T A B I L I T YThe Department of Defence (DOD) isconstantly grappling with the challengeof making itself more affordable andsustainable in the face of rising expecta-tions to deploy and declining budgetaryallocation. This situation compels theDOD to do more with less resources. Atthe same time, the DOD is constitution-ally bound to ensure that the SouthAfrican National Defence Force(SANDF) is able to defend the sover-eignty and integrity of the country,including its people and property.Thus, the SANDF should have appro-priate defence capabilities, which can be

Tused in defending the country, partici-pating in peace missions and providinggeneral humanitarian relief duringemergencies. Despite all these complex-ities, the DOD remains a State depart-ment which has to comply with variouspieces of legislation and policies relat-ing to good governance and accounta-bility.

In an effort to reconcile all these seem-ingly conflicting priorities, especially inrelation to financial constraints, theDOD adopted seven strategic decisions,popularly known as the ParysResolutions. The resolutions coveredaspects such as the review of the WhitePaper on Defence and the DefenceReview, streamlining the DOD struc-tures with a view to improving efficien-cy, economy and effectiveness, revisit-ing the SANDF force design and struc-ture in line with the prevailing strategicenvironment, and finally adopting anappropriate organisational performancemanagement tool.

The DOD also spent a lot of resources inan effort to improve on its internal con-trol systems in order to minimize oreliminate negative audit findings.However, this remains an ongoing chal-lenge owing, inter alia, to old informa-tion systems which require replace-ment. It is hoped that the national ini-tiative to introduce an integrated finan-


c h a p t e r 4

cial management system and an appropriate logisticinformation management system will go a long waytowards addressing the challenge.

To ensure continued compliance and alignment with theGovernment's imperatives and ministerial guidelines,the DOD designs an overall Strategic Business Plan.Divisions and Services are to report on their perform-ance against specified targets through quarterly reportsand the annual report. These are monitored throughstrategic management bodies such as the Defence StaffCouncil, the Defence Secretariat Board, the Military StaffCouncil and other functional staff councils such as thosepertaining to human resources, logistics, and operations.Regular feedback is given to Parliament (Portfolio/JointStanding Committee on Defence) as and when requiredon any issue that might be of interest to it in terms of itsoversight function.

O P E R A T I O N SThe ordered commitments honoured by the SANDF,and the defence capabilities provided, actively promot-ed the Government's initiatives in respect of the AfricanUnion, African Renaissance and New Partnership forAfrica's Development. The SANDF played a leading

role in ensuring stability and peace through defencediplomacy, and by direct participation in the missions ofthe African Union as well as the United Nations.

The operations related to the military strategic objec-tives, viz "Promote Peace, Security and Stability in theRegion and the Continent", and "Support the People ofSouth Africa" dominated the Joint Operations activitiesduring the year under review. A few highlights of theperformance of the SANDF are presented in this synop-sis. SANDF peace-support deployments on the Africancontinent are illustrated in Figure 4.1.

E x t e r n a l O p e r a t i o n sActivities in the field of promoting peace, security andstability in the Southern African DevelopmentCommunity (SADC) and the African continent increasedto such an extent that the SANDF is now not only thelargest contributor of peacekeeping troops in Africa, butthe ninth largest troop contributing country to theUnited Nations in the world. Troops are deployedunder United Nations and African Union operations inthe Democratic Republic of the Congo (MONUC III),Burundi (AMIB/ONUB), Ethiopia (UNMEE), Eritrea(OLMEE), Sudan (AMIS), Liberia (UNMIL) and Uganda.

F i g u r e 4 . 1 S A N D F P e a c e S u p p o r t O p e r a t i o n s o n t h e A f r i c a n C o n t i n e n t

DemocraticRepublicof Congo

Sudan

Ethiopia

Eritrea

Burundi

Operation CORDITE:African Union Missionin Sudan - (AMIS)

Operation ESPRESSO: UN andAU Missions in Eritrea/Ethiopia- (UNMEE & OLMEE)

Operation MISTRAL: UNMission in the DRC -(MONUC)

Operation FIBRE: UN Mission in Burundi -(ONUB) and RSA VIPProtectors

Operation TEUTONIC:Multi-lateral Trg Assist -DRC, RSA and Belgium

The SANDF is activelyinvolved in the estab-lishment of the AfricanStandby Force, whichhas resulted in theSADC Brigade (SADC-BRIG).

Joint and multinationalexercises were conduct-ed within South Africa,as well as outside ourborders in conjunctionwith foreign defenceforces, thus ensuringthe preparedness of theSANDF for potentialoperations with friend-ly forces in future (seeChapter 6, Table 6.5 formore information onJoint and MultinationalExercises).

Military logistical assis-tance was provided tothe Department ofForeign Affairs to assistthe Government of Mo-zambique with its elec-tions in December 2004.Humanitarian relief

c h a p t e r 4


missions were undertaken in Madagascar in support ofthe Department of Foreign Affairs.

I n t e r n a l O p e r a t i o n sOperations relating to "Supporting the People of SouthAfrica" focused on the ongoing safeguarding of the bor-ders of South Africa (Operation INTEXO) and ruralsafeguarding in support of the SA Police Service(Operation STIPPER). The phased withdrawal fromthese internal roles is on track and will continue.However, the SANDF will not withdraw from any areauntil there is a proper plan and capacity in place toenable the SA Police Service to take over the responsibil-ity of ensuring security for all in the rural areas.

The SANDF provided safety and security during thenational elections in the RSA as well as during the inau-guration of the President and the 10 Year FreedomCelebrations in support of the SA Police Service andother State departments. It also helped to prevent thespread of foot-and-mouth disease after the outbreak inLimpopo Province, and supported the Department ofHealth to curb the avian flu outbreak in the Eastern CapeProvince.

D E F E N C E D I P L O M A C YThe DOD actively supported the foreign policy initia-tives of Government and contributed towards the peace,security, safety and stability of our continent. The DOD,and SANDF in particular, contributed towards defencediplomacy not only in terms of the 40 countries withwhich it has defence diplomatic accreditation and thevarious peace-support and observer missions of theUnited Nations and African Union, but also played acritical role in several multilateral forums and provideddirect support to newly emerging democracies regard-ing integration and training.

Bilateral agreements were therefore serviced throughthe exchange programmes for training, sharing ofexpertise and goodwill visits, both incoming and outgo-ing. Particularly in Africa, there is most certainly greatrespect for the good governance mechanisms within theDOD that set our defence force apart as a leader amongstits peers.

In January 2005 an SANDF detachment assisted the DRCwith the integration of former forces to form a newarmy. Training for the new democracy and bridgingtraining of the Congolese Army for integration purposestook place. Approximately 40 000 members of the

Congolese Army passed through identification centres.The first phase of the team-building programme is inprogress.

In direct support of the Union of Comores, SANDF mem-bers of the SA Air Force assisted that country in the elec-toral process by transporting electoral ballot papersbetween April and May 2004. Similar assistance was pro-vided to Burundi and the Democratic Republic of theCongo. The SANDF directly assisted both the Demo-cratic Republic of the Congo and Rwanda to oversee theimplementation of the Pretoria Agreement. The DODsupport for the establishment of the Third PartyVerification Mechanism was provided through thedeployment of an SANDF detachment, which ended inSeptember 2004.

Beyond this, the DOD has also provided small detach-ments of experts to share expertise on post-conflict rec-onciliation, reconstruction and reintegration with theDemocratic Republic of the Congo, Burundi and Sudanduring the period under review. Of particular note arethe exchange visits that took place between the DOD andthe different political groupings in the Sudan. The visitsmarked a commitment to assist the various parties of theSudan towards a comprehensive approach to post-con-flict reconstruction. Hence a select and senior rankingteam of the DOD visited the Sudan in February 2005 anda high-ranking Sudanese delegation visited the DOD inMarch 2005.

The India, Brazil and South Africa (IBSA) MinisterialTrilateral Commission is of strategic importance to theSouth African DOD, particularly regarding multination-al exercises and defence industrial co-operation. Theserelations were strengthened during FY2004/05 by theChief of the SANDF's visit to Brazil in July 2004 and vis-its to India by a senior DOD delegation.

Through the SANDF diplomatic corps the various peacemissions, bilateral agreements, goodwill visits, participa-tion in international forums and Africa's multilateralstructures, the DOD has shared expertise and built strongdefence relations. But more importantly, the SANDF hasgrown in knowledge, experience and maturity as aninternational role-player to help ensure global security.

Servicing Bilateral and Trilateral Relationships.Memoranda of understanding were serviced during thefollowing bilateral and trilateral structure meetings, andare indicated in Table 4.2.


c h a p t e r 4

SADC's Inter-State Defence and Security CommitteeActivities and Other Multinational Interaction. TheDOD plays a critical role in all multilateral defence struc-tures. As Table 4.3 indicates, during the period under

review the DOD continued to be involved in variousdefence-related activities of the African Union, theSADC's Inter-State Defence and Security Committee andthe SADC Organ on Politics, Defence and Security.

T a b l e 4 . 2 B i l a t e r a l a n d T r i l a t e r a l S t r u c t u r e M e e t i n g s F Y 2 0 0 4 / 0 5

United States of America

Lesotho

Botswana

Italy

Namibia

Zimbabwe

Ukraine

Nigeria

Algeria

Sweden

United Kingdom

France

Lesotho

Jordan

India and Brazil

Russian Federation

South Africa (Stellenbosch)

South Africa (Pretoria)

South Africa (Kempton Park)

Italy

Namibia

Zimbabwe


South Africa (Durban)




France

Lesotho


South Africa (Cape Town)


Country Meeting Location Date

Defence Committee

Joint Bilateral Coordinating Commission (Department of ForeignAffairs is lead department)

Joint Permanent Commission of Defence and Security

Defence Industrial Committee

Joint Permanent Commission of Defence and Security

Defence Liaison Forum

Joint Intergovernmental Commission for Military Technical Cooperation

Binational Commission (Department of Foreign Affairs as lead department)

Binational Commission (Department of Foreign Affairs as lead department)

Defence Committee

Defence Committee

Defence Committee

Joint Bilateral Co-ordinating Commission (Department of ForeignAffairs as lead department)

Joint Committee

IBSA Trilateral Meeting

Joint Commission

16-21 May 2004

28 May 2004

2-4 June 2004

24-25 June 2004

3-7 August 2004

12-13 August 2004

18-20 August 2004

5-11 September 2004

15-16 September 2004

28-29 September 2004

6-7 October 2004

11-15 October 2004

29 October 2004

28 November until2 December 2004

7-11 March 2005

17-18 March 2005

Type of Bilateral/Trilateral Structure

SADC's Inter-State Defence and Security CommitteeSpiritual and Moral Affairs Work GroupMinisters of DefenceOperations Sub-subcommitteeDefence Intelligence Standing CommitteeAviation Standing CommitteeTelecommunications Work Group (ad hoc meeting)

SADCSADC SummitSADC Peace & Security ConferenceSADC Organ (Troika meeting)

Chiefs of Defence Troika meeting

Occasion / Event Date

South AfricaSouth AfricaLesothoBotswana TanzaniaSouth Africa

MauritiusMozambique

South Africa

21-25 February 20058-9 March 200522-24 April 20045-6 May 200411-14 May 200425-26 November 2004

13-18 August 20048-15 December 2004October 2004December 200410 February 2005

Venue

T a b l e 4 . 3 D O D P a r t i c i p a t i o n i n t h e I n t e r - S t a t e D e f e n c e a n d S e c u r i t y C o m m i t t e e ,S A D C a n d o t h e r M u l t i n a t i o n a l O r g a n i s a t i o n a l A c t i v i t i e s

c h a p t e r 4


SANDF Representation with Military Attachés. TheSANDF has 23 permanent military missions in 23 coun-tries, and also non-residential accreditation in 16 coun-tries and one at the African Union. 26 military attachés

service the 40 countries as indicated in Figure 4.2. Themilitary attachés’ primary output is to provide first-linedefence diplomacy for the SANDF/DOD at bilateral andmultinational meetings.

AFRICAN STANDBY FORCE (SADC)SADC Brigade Military Planners meetingSADC Brigade Funding and Reimbursement Work Group and Legal Work-group

Occasion / Event Date

South AfricaSwaziland

25-28 January 200514-15 February 2005

Venue

T a b l e 4 . 3 D O D P a r t i c i p a t i o n i n t h e I n t e r - S t a t e D e f e n c e a n d S e c u r i t y C o m m i t t e e ,S A D C a n d o t h e r M u l t i n a t i o n a l O r g a n i s a t i o n a l A c t i v i t i e s ( c o n t i n u e d )

Military Attaché and Advisor Corps Accredited toSouth Africa. 62 resident and two non-resident attachésrepresent 43 countries in South Africa. The type of mil-itary ceremony for the accreditation and de-accredita-tion of foreign military attachés accredited to the

Resident

Angola, Argentina, Botswana, Brazil, DRC,Ethiopia, Egypt, France, Germany, India, Italy,Malaysia, Mozambique, Namibia, Nigeria, PRC,Russia, Spain, Tanzania, UK, USA, Zambia,Zimbabwe.

Non-Resident

African Union, Belgium, Brunei, Canada,Czech Rep, Indonesia, Jordan, Malawi,Morocco, Paraguay, Philippines, Rep ofthe Congo, Romania, Sweden, theNetherlands, Uganda, Uruguay.

SANDF is unique in the world. Countries that have mil-itary representation in South Africa are indicated inTable 4.4. The DOD's Defence Foreign Relations is theresponsible nodal point for foreign military attachésaccredited to South Africa.

F i g u r e 4 . 2 M a p o f D e p l o y e d S A N D F M i l i t a r y A t t a c h é s


c h a p t e r 4

Foreign Visits by DOD Personnel and ForeignVisits to the DOD. A total of 575 visit submissionswere processed for DOD members for visits abroad,and 193 for foreign visitors to South Africa (DOD).

Visits by Foreign Ships. Fourteen foreign navalships from five countries visited South African portsduring FY2004/05.

Foreign Learning Opportunities Offered toSANDF Members. A total of 189 SANDF membersattended foreign learning opportunities duringFY2004/05 as shown in Table 4.5.

T a b l e 4 . 4 M i l i t a r y A t t a c h é a n d A d v i s o r C o r p s R e p r e s e n t a t i o n i n S o u t h A f r i c a

Algeria (2)

Australia *

Brazil (2)

Peoples Republic of China (3)

Egypt (2)

Germany (2)

Indonesia

Kenya

Malaysia

Pakistan (2)

Russian Federation (4)

Sweden

United Kingdom (2)

Zambia

Netherlands (new office)

Angola (2)

Belgium

Canada

Cote D'Ivoire (2)

France (2)

Greece

Israel *

Korea (Republic of Korea)

Namibia

Portugal (office closed in February 2005)

Rwanda

Tanzania

United States of America (4)

Zimbabwe (2)

Socialist Republic of Vietnam (3) (new office)

Country Country

Argentina

Botswana (2)

Chile

Democratic Republic of the Congo

Gabon

India

Italy

Malawi

Nigeria

Romania

Spain

Ukraine

Uruguay

Country

Notes: Asterisk (*) indicates non-resident members. Numbers in brackets indicate number of accredited members to South Africa.

T a b l e 4 . 5 F o r e i g n L e a r n i n g O p p o r t u n i t i e s O f f e r e d t o a n d U t i l i s e d b y D O D M e m b e r s

SA Army

SA Air Force

SA Navy

SA Military Health Service

Civilians

26

120

40

3

21

Services/Divisions(military/civilian)

Number ofLearners

8

7

9

2

3

Number ofCountries

T a b l e 4 . 6 T r a i n i n g O f f e r e d t o F o r e i g n M i l i t a r y S t u d e n t s

SA Army

SA Air Force

SA Navy


Joint Support Division

SA National Defence College

SA National War College

Military Academy

18

19

49

3

17

15

3

Institution Number ofLearners

5

5

4

1

17

15

1

Countries

Army-related training

Air Force-related training

Navy-related training

Military Health Service-related training

Executive National Security Programme

Joint Senior Command and Staff Programme

Academic (degree) studies

Type of Course

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Learning Opportunities Offered to Foreign MilitaryStudents. Learning opportunities offered to foreign mil-itary learners are indicated in Table 4.6.

Equipment Transfer to Foreign Recipients. DuringFY2003/04 a decision to donate two harbour patrolboats to Mozambique was made, after it had beenapproved by the Minister of Defence and cleared by theNational Arms Control Committee. The physical trans-fer took place during FY2004/05.

S O C I A L C O N T R I B U T I O NThe SANDF has continued its support to the people ofthe RSA in various ways. The specialised capabilities ofthe SA Military Health Service were used to great effect.Local communities in the Limpopo and MpumalangaProvinces benefited directly from Exercise MEDFLAG.The infrastructure of three clinics in the LimpopoProvince was upgraded and a total of 6 100 of the localpeople were treated at clinics in the two provinces. Thedefensive chemical/biological capability of the SAMilitary Health Service participated in training pro-grammes on chemical/biological awareness presentedin Cape Town and Johannesburg.

Since the inception of the SIYANDIZA programme sev-eral years ago, the programme has gone from strength tostrength. During FY2004/05 in excess of 100 000 learn-ers were reached by means of the aviation awarenessdrive at schools, airshows, and science and technologyexhibitions. During the year under review the YoungFalcons Youth Development programme grew substan-tially. Apart from the courses presented in aviation-related subjects and life skills, the Young Falcons werealso given exposure to the aviation environment.Altogether 110 Young Falcons were hosted at the AirForce Gymnasium over the July 2004 school holidayswhere the Young Falcons Advanced course was pre-sented.

The Service Corps continued supporting the NationalYouth Commission, the Department of Education andthe Moses Kotane Municipality in the North WestProvince to train youth in building and construction atits Mankwe training facility. The trained youth wereresponsible for building houses in 17 villages situated inthe Moses Kotane municipal area and over 735 houseshave since been completed. In a project funded by theNational Skills Fund and managed by DIDTETA(Diplomacy, Intelligence, Defence and Trade Educationand Training Authority), 3 350 military veterans havebeen trained and empowered to play a meaningful rolein civil society.

Successive intakes of the Military Skills DevelopmentSystem have seen over 4 000 young, fit, and healthymembers enter the SANDF. This system is a critical

recruitment programme for the SANDF to rejuvenate itshuman resources component so that it retains the abilityto execute the DOD's mission effectively and efficiently.The Military Skills Development System also supportsGovernment's initiatives to create learnerships in thepublic sector. These young men and women will also beempowered to play a meaningful role in civil society.The DOD also provided Youth Foundation training for250 matriculants. It was aimed at improving their math-ematics and science results for recruitment into core pro-fessions in the SANDF that require mathematics and sci-ence.

Through Project PHOENIX small numbers of patrioticcitizens were recruited into the Reserve Force. A newdevelopment is the establishment of a UniversityReserve Training Unit to recruit undergraduates asReservists, and to train them militarily during universi-ty vacations.

During the year under review the transformation andrestructuring of the SANDF continued. Examples ofthese included the appointments of the first black chiefof the SA Navy and the first Indian Chief DirectorStrategy and Planning.

R E S E R V E F O R C E

A N N U A L R E V I E WIntroduction. During the year under review, significantprogress was made towards re-establishing the ReserveForce as a viable and employable component of theSANDF's capabilities. Although there is still some wayto go in providing employable units, the development offully trained subunits by the Army is a milestone, whichhas given impetus to the plans.

The decision to employ Reserve Force elements on peacemissions has also given focus to the training and a senseof purpose to the implementation plans for the renewaland transformation of the conventional elements of theReserves.

Definite and substantial progress was also made in theimplementation of the decision to phase out theCommando system, and implementation instructionsfor the phasing out of the first 17 units duringFY2004/05 were issued.

The challenges of funding the renewal and transforma-tion of the conventional reserves remained, however, atthe Chief of the SANDF’s strategic work session inSeptember 2004, the SANDF Command Cadre reaf-firmed the necessity for and their support of theReserves. This will add impetus to the further develop-ment of the Reserve Force system and help to give focusto Phase 3 of Project PHOENIX.


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Project PHOENIX. Project PHOENIX was instituted latein 2002 with the aim of renewing and transforming theconventional component of the Reserve Force. Whilstthe focus during 2003 was mainly on developing short-term interventions aimed at halting the decline in thecapabilities of the Reserve Force, the focus during theyear under review was to develop a comprehensivestrategy to effect the desired turnaround. This wasachieved with the approval and promulgation of theSANDF Strategy for the Development and Maintenanceof a Transformed and Viable Reserve Force, issued inSeptember 2004. A comprehensive implementationinstruction was simultaneously developed and issued,containing definite objectives and assigning responsibili-ties. The Reserve Force Office monitored the implemen-tation thereof through the Defence Reserve Board1 andregular reports were made to Chief of the SANDF as wellas to Parliament. The strategic importance of the renew-al and transformation of the Reserve Force under ProjectPHOENIX is a priority of the Chief of the SANDF.

Reserve Force Funding. As previously stated, the avail-ability of sufficient funding is the greatest challenge in

rebuilding an employable Reserve Force. This is partic-ularly so in the SA Army, which has by far the greatestnumber of reserve and regular personnel. However, therenewed focus on the Reserve Force, together with anincreasing necessity to provide forces for externaldeployment, has resulted in a reprioritised allocation tothe Reserves for FY 2005/06. The results of an extra Rm10 in 2004 provided by the SA Army can already be seenin the availability of a fully trained Reserve Forceinfantry company which will be deployed in theDemocratic Republic of the Congo in May 2005 andwhich will be replaced by another Reserve Force com-pany in October 2005. It is hoped that, as the implemen-tation of Human Resources Strategy 2010 and theReserve Force Strategy progress and the SANDF is ableto move towards the smaller Regular Force as envisagedin the Defence Review, the renewal and transformationof the Reserve Force will gain increasing impetus asfunds become available.

A summary of the budget allocation to the Reserves forthe year under review, as well as FY 2005/06, is given inTable 4.7, which reflects the overall increase.

1 A body under the auspices of Chief of Defence Reserves which recommends and monitors all policy regarding the Reserves.

T a b l e 4 . 7 R e s e r v e F o r c e B u d g e t F Y 2 0 0 4 / 0 5 a n d F Y 2 0 0 5 / 0 6

Service/Division

SA Army

Army Conventional Reserve

Army Territorial Reserve

Subtotal

SA Air Force

SA Navy


CommandManagementInformation SystemDivision

Military Police Agency

DOD Log Support Formation

Subtotal

Total

2004/05Item 10

26 043 573

159 312 976

185 356 549

14 500 000

9 966 941

10 688 479

3 835 907

311 178

2 907 526

42 358 101

227 714 650

Operating

0

0

0

6 000 000

300 615

0

0

230 000

6 530 615

6 530 615

Total

26 043 573

159 312 976

185 356 549

20 500 000

10 267 556

10 688 479

3 835 907

541 178

2 907 526

48 888 716

234 245 265

Item 10

26 043 573

159 312 976

185 356 549

14 500 000

9 966 941

10 688 479

3 835 907

311 178

2 907 526

42 358 101

227 714 650

Operating

0

0

0

6 000 000

300 615

0

0

230 000

6 530 615

6 530 615

Total

26 043 573

159 312 976

185 356 549

20 500 000

10 267 556

10 688 479

3 835 907

541 178

2 907 526

48 888 716

234 245 265

% Change

38%

1%

6%

-5%

-24%

3%

12%

-76%

72%

-1%

5%

2005/06 Item 10

Notes: Operating funds for the Reserves are not in all instances visible as they are interwoven in the Regular Force budget.Financial year comparisons and % changes are therefore based on Item 10 funds only. The decline in the Navy budget isdue to the restructuring of the Naval Reserve and the decommissioning of the Naval Reserve units. The above figures reflectonly Services and Divisions, which provide forces for deployment. Staff Divisions which may utilise Reserve Force members,but do not provide forces, are not included in this table.

c h a p t e r 4


The actual utilisation of Reserves per Service andDivision is indicated below.

S A A R M Y R E S E R V ESA Army Conventional Reserve. When ProjectPHOENIX commenced in September 2002, the totalstrength of the Army Conventional Reserve was 8 076members. Since that date, a nett total of 1 443 membershave been recruited within the right age bracket, bring-ing the total strength to 9 519. Of that number, 57,1% aregroups other than white, reflecting a 10% increase dur-ing FY2004/05.

Recruitment. Because the Army Conventional Reserveunits were below the required strength (averagestrength 150) and the members were ageing (averageage 35), it was critical that priority should be given to thefeeding of these units with young, healthy and fitrecruits to be prepared for future deployment when sorequired. Military Skills Development System intakeshave been limited owing to budget constraints, and willtherefore not provide recruits for the ArmyConventional Reserve until 2008. An alternative interimfeeder system had to be considered and ArmyConventional Reserve units were therefore authorised torecruit and train members locally. As part of ProjectPHOENIX, the Office of the Chief Directorate ArmyReserves went on a recruitment drive to recruit theleader group for the Army Conventional Reserve.Target priorities were members who had served in theRegular Force and held ranks from lance corporal tolieutenant colonel. Provision was also made to recruitmembers from the Non-statutory Forces who had demo-bilised as well as those who had never attested in theSANDF. Of 432 applications received 158 applicantswere selected for enlistment in the Reserve Force. Theprocess of appointing the 158 will be finalised by the endof June 2005.

Training. Training of the newly recruited ArmyConventional Reserve members took place duringFY2004/05 at various nodal points in Cape Town,Durban, Johannesburg, and Potchefstroom on a continu-ous and non-continuous basis. The basic and corpstraining was done according to an approved curriculumin order to meet the standards set for deployment. Thetraining teams at the various nodal points consisted ofReserve Force instructors assisted by former RegularForce instructors who joined the Army Reserve aftertheir retirement. The focus of training was on units ofthe Infantry Formation. Rm10 additional funding fortraining was allocated to the Infantry Formation and theoutcome was 808 Army Conventional Reserve memberstrained, in terms of basic and corps training to therequired level. For FY2005/06 the emphasis will shift tothe SA Army Engineer Formation for basic and corpstraining. Remaining formations will focus on leadergroup training only.

Deployment in the Democratic Republic of the Congo(Operation MISTRAL). In January 2005 the ArmyCouncil approved funds for the preparation and exter-nal deployment of a Reserve Force motorised infantrycompany. The deployment of a second company inOctober 2005 was approved during the short-termbudget alignment in April 2005.

The Infantry Formation was instructed to prepare andprovide the company, comprising 157 members plus 20members in reserve. Out of the total of 177 members,172 were classified G1K1 (Green) in terms of theirComprehensive Health Assessment. The company wascommended during their refresher training in January2005 at 7 SA Infantry Battalion in Phalaborwa.

The full infantry company, consisting of a headquartersand three platoons, will be deployed in the DemocraticRepublic of the Congo in May 2005 for a full six monthstint. The company commander is a Regular Forcemajor and the rest, including the leader element, are allReserve Force members. The composition of the leadergroup is fully representative in terms of race and gen-der. Only the Company Sergeant Major and one platoonleader are white. Eight female members volunteered forthe deployment.

The company is made up of personnel from the CapeTown Highlanders, Durban Regiment, NatalCarbineers, SA Irish Regiment, Transvaal Scottish,Johannesburg Regiment and Witwatersrand Rifles.

Force Design and Force Structure. During 2003 and2004, the proposed SA Army force design and structurewere refined and approved by the Military Council.Approval in principle was obtained from the Minister ofDefence for the SA Army Force Structure End State andmigration path on 17 November 2004. The SA Armywill now embark on a process to obtain ministerialapproval for every force structure element change afterdetailed investigations have been concluded. Thisincludes the finalisation of the force design for the SAArmy Reserve.

The SA Army, in conjunction with Chief of JointOperations, is determining the capability requirementsfor the Reserve Force. This is being done to ensure thatthe SA Army Reserve Force design complies with therequirements of the Force Employment Strategy, andthat the force design of the Reserve Force from otherServices and Divisions on which the SA Army will relyfor support services, is aligned with SA Army andSANDF requirements.

Appointment of Senior Reserve Officers. The SAArmy started with a process to address representivity inthe Army Reserve in 2003 under the auspices of Project


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PHOENIX. Phase 1 was aimed at the rejuvenation of theArmy Conventional Reserve leader group. The focuswas first to staff all senior posts at levels 2 and 3. Theresult of this was the appointment of three Reserve Forceofficers in the Office of Chief Director Army Reserves.17 Senior Staff Officers were also appointed at levels 2and 3 during 2004.

The Army Territorial Reserve. The SA Army has beenin the process of planning the phasing out of the ArmyTerritorial Reserve (Commandos) in conjunction withChief of Joint Operations and the SA Police Service.Approval in principle has been obtained from theMinister of Defence to close 17 units during FY2004/05and a further 55 units in FY2005/06.

It is hoped to retain some of the Army TerritorialReserve leader group for the Army ConventionalReserve in order to alleviate the critical shortage.Selected members of all ranks who meet the criteria fortransfer to the Army Conventional Reserve, and whodesire to do so, are being given that opportunity.

Discussions have also been held with the SA PoliceService in order to determine the details for assistingArmy Territorial Reserve members who wish to join theSA Police Service as Reservists. The SA Police Service isalso in the process of revising its Reservist system toaccommodate Army Territorial Reserve members.Issues such as the retention of medals and paid service,amongst others, are being discussed.

S A A I R F O R C E R E S E R V EIntroduction. The Air Force Reserve was reviewed dur-ing 2004 within the context and guidelines as envisagedin the aims of Project PHOENIX. The Air Force Boardapproved the resultant Air Force Reserve strategy dur-ing 2004.

Air Force Reserve Philosophy. The human resources ofthe SA Air Force Regular Force and Reserve Force existas an integral and intrinsic element of the SA Air Force,as envisaged in the SANDF 'one force' concept. The co-existence and co-operation between the aforementionedelements are excellent and still improving.

Air Force Reserve Structure. To conform to ProjectPHOENIX transformation and renewal aims, the exist-ing Air Force Reserve structure has been adapted andthe Directorate Air Force Reserves has been structured atLevel 3 at the Air Command. The proposed structurehas recently been approved and is in the process of beingcaptured on the Organisation Information System.

The conventional Air Force Reserve structure consists of1231 approved posts and, as the structure of theDirectorate Air Force Reserves has now been approved,

1 184 of the said posts will be decentralised to forcestructure elements. The Air Force Reserve Squadronsare functioning adequately within their approved struc-tures.

Recruitment for the Air Force Reserve. Recruitment forthe Air Force Reserve, which includes headhunting forspecialist expertise, is an ongoing process. However,limited success has been achieved as the majority ofapplicants seek full-time employment. One member, ablack pilot, was recruited for the conventionalsquadrons and will be flying with 21 Squadron (the VIPSquadron).

Representivity in the Air Force Reserve Squadrons. Topromote representivity in the Air Force ReserveSquadrons, entry requirements in terms of the numberof flying hours required have been relaxed. Efforts torecruit black and female members with the necessaryskills to enhance the core business of the Air Force takeplace on an ongoing basis. In this endeavour, the AirForce Reserve will link up with and support ProjectSIYANDIZA, the aim of which is to foster aviationawareness amongst the youth.

Policy Development. The Directorate Air ForceReserves supports the DOD in the formulation of policyand the revision of the General Regulations for theRegular and Reserve Forces.

S A N A V A L R E S E R V EIntroduction. During FY2004/05 major changes tookplace in the system of administration of reserves in theSA Navy. In the past, Naval Reserves were adminis-tered through seven Reserve Units, located mainly in thecoastal port areas and in Gauteng. These units were SASINKONKONI (Durban), SAS PORT REX (East London),SAS DONKIN (Port Elizabeth), SAS UNITIE (CapeTown), SAS YSELSTEIN (Simon's Town), SAS MAGA-LIESBERG (Pretoria) and SAS RAND (Johannesburg).Some of these units had a history of volunteer reserveservice stretching back over a period of more than 130years.

Restructuring of the Naval Reserve. In terms of theabove plan, it was provided for that the Naval Reserveshould be structured according to the concept of an"expandable single structure". This expandable singlestructure involves maintaining a full-time establish-ment, with additional reserve posts. The personnel des-ignated for such posts are members of the particular unitor structure.

The Naval Board therefore approved a programme forthe decommissioning of the existing Reserve Units andthese units were decommissioned independently fromNovember 2004 to 26 March 2005.

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In terms of the new system of administration, a ReserveManagement Centre was created under the Director ofFleet Human Resources in Simon's Town. This estab-lishment will in future be responsible for overseeing theadministration and career management of the entireNaval Reserve.

Approximately 1 600 posts were identified in the variousstructures and units of the SA Navy, ranging from shipsand submarines to training units and shore establish-ments. Members of the Naval Reserve were granted anopportunity to apply for the identified posts.Approximately 650 members of the Naval Reserve havealready indicated their willingness to continue servingon a volunteer basis in the Naval Reserve and will short-ly be appointed to posts.

Challenges. The output of trained individuals into theReserve from the Military Skills Development Systemhas been slow. The first priority for output from theMilitary Skills Development System was to the RegularForce due to increased requirements in this regard.During FY2004/05 only 74 ratings from the MilitarySkills Development System joined the Naval Reserve.This does not satisfy the need at the middle and seniormanagement levels.

Opportunities. The challenge for 2005/06 and beyondwill be to devise the ways and provide the means forfeeding personnel to the Naval Reserve, to keep it com-bat ready and committed and to provide training andemployment opportunities.

S A M I L I T A R Y H E A L T H S E R V I C E R E S E R V EIntroduction. During the year under review, severalareas of activity have been either initiated or pursuedtowards achieving the aims of Project PHOENIX.Overall, several significant achievements have beenrealised, but some worrying challenges remain. Themost significant achievements are discussed in the ensu-ing report, together with challenges to be met in thefuture.

Selective Targeted Recruitment. Citizens are still hesi-tant to commit themselves to Reserve Force service asthey do not always understand the volunteer concept. Itis essential that the SA Military Health Service finds away to attract more citizens who meet the requiredstatutory qualifications into its reserves. Seven new offi-cers from the designated black race group, lieutenant tocaptain, were appointed at 3 Medical Battalion Groupand 19 new members (other ranks) at 1 MedicalBattalion Group. 7 Medical Battalion Group is currentlyonly 56% staffed, inter alia as a result of resignations andthe slow staffing of vacant posts. The battalion is alsoexpected to support the Special Forces School withoutbeing appropriately structured for the task. The efficien-

cy of the Battalion is thus negatively affected.

Implementation of the Military Skills DevelopmentSystem (MSDS). Almost 45% of the Military SkillsDevelopment System intake completing their training inDecember 2004 were transferred to the Reserve Forceand placed in posts at different units. However, systemsto enable Reserve Force units to identify and recruitprospective Military Skills Development System mem-bers to become Reserve Force members at their unitsmust be implemented. The funding of larger MilitarySkills Development System intakes remains a challenge.

University Reserve Training Unit. The MilitaryCouncil approved the concept of the University ReserveTraining Unit and the activation of a pilot projectsteered by the SA Military Health Service. A task teamwas formed to plan the establishment and activation ofthe unit. The aim of the University Reserve TrainingUnit is to recruit undergraduates as reservists, and totrain them militarily during university vacations.

The Universities of Pretoria and Witwatersrand are pos-itively inclined and the Universities of Bloemfonteinand Stellenbosch have indicated their interest shouldthe programme be expanded.

The Surgeon General officially launched the UniversityReserve Training Unit in February 2005, and, during abriefing in March 2005, the Portfolio Committee onDefence was enthusiastic about the concept.

The main challenge to ensuring the success of theUniversity Reserve Training Unit is the successful pro-motion/marketing of the concept to undergraduate stu-dents. However, initial indications are that it is arous-ing considerable interest.

Training. Reserve Force units have continued to do mil-itary training in unit lines, and to nominate members forformal courses at the Military Health TrainingFormation. A system is now in place to ensure thatReserve Force members get accepted on these coursesalong with Regular Force members. Although opera-tional/combat-ready training is part of the ReserveForce unit business plans, it is not optimally conductedowing to underfunding, and will be given more focus inFY2005/06. 3 Medical Battalion Group and 7 MedicalBattalion Group have, over the last four years, co-ordi-nated the training of a number of Reserve Force mem-bers in various military and medical skills such as BasicAmbulance Assistant (231 members passed),Ambulance Emergency Assistant (66 passed) andOperational Emergency Care Practitioner (32 passed).

Human Resources. A total of 67% of the SA MilitaryHealth Service Reserves are members from the African,


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coloured and Indian designated group, of whom 53%are black. SA Military Health Service Reserve has afemale gender representivity rate of 31%. The SAMilitary Health Reserves have a total of 601 officers and2 708 other ranks on strength.

J O I N T S U P P O R TThe state of the Reserve Force units under command ofthe DOD Logistic Support Formation as a whole is still amatter of concern and, despite Project PHOENIX, theyare not combat support ready and deployable owing tounderfunding. Since 1999, recruitment and training ofReserves have ceased owing to budgetary constraints.As a result, the standard of combat support readinessand morale of these units have declined. Reserve Forceunits need a role and it is hoped that the restructuring ofthe logistics function will provide the needed directionin terms of the development of the capability and anallocated budget.

The combat support units of the DOD Logistic SupportFormation, consisting of maintenance units, field work-shops and an air supply unit, are currently not at theoptimal level of readiness. A dedicated and motivatedcore of volunteers keeps the units running, however,often at own cost, but employment of these units is notpossible owing to a lack of force preparation training.Lack of funds is the main factor impeding the employ-ment of these units. The personnel budget was largelyutilised for protection services at various force structureelements. A special effort will be made to rejuvenateand transform these units through the implementationof the Reserve Force Strategy. To this end, the budgetallocation for FY2005/06 is Rm 5 021. The renewal andtransformation of these units will be addressed byProject PHOENIX as the restructuring of the logisticsfunction progresses. Adequate funding and developinga viable feeder system of trained personnel must beaddressed to rejuvenate and transform the Reserves.

C o m m a n d a n d M a n a g e m e n t I n f o r m a t i o n S y s t e m sR e s e r v eThe Command and Management Information SystemsDivision Reserve consists of a Level 2 Directorate atCommand and Management Information SystemsHeadquarters 6 Signal Regiment, and a Level 4 unitunder command of the Command ManagementInformation Systems Operations Formation, which hasnine units situated around the country under command.

Human Resources. The strength of Command andManagement Information Systems Reserves is at present431 members, an increase of 60 members during 2004.Representivity (in terms of black members) has grownfrom 59% to 63% in the past year. In comparison with thetotal authorised strength of the Command andManagement Information Systems Reserve (3 811), the

units are now only 11% staffed. This indicates that a sig-nificant yearly increase will be required to ensure thatappropriate strength levels can be achieved. This willonly be possible if the funding can be obtained.

Force Preparation. Owing to budgetary constraints only60 members were recruited and given basic training.Seven field exercises with all units were conducted toensure members were operationally prepared. A nation-al field exercise, Exercise QUO VADIS III, was conduct-ed over the period 2 to 5 December 2004 to evaluate thecombat readiness of units and members under training.

Force Employment. 11 Field Postal Unit is at presentproviding the full postal service for all SANDF externaloperations. The unit handled 174 600 kg of mail fromApril 2004 to March 2005. Reserve Force members pro-vided internal support to various units when criticalmanpower resources were required.

Achievements. The establishment of Reserve Forceoffices at Potchefstroom and Port Elizabeth is in linewith the Project PHOENIX expansion plan and will pro-vide the Command and Management InformationSystems Division with the regional expansion capacityas required, as well as provide a broader base for thecommunities in the RSA to participate in the reserves.

The major focus was on training, and monthly field exer-cises were conducted to provide members with practicalsignals training. This was followed by a national fieldexercise in December 2004, which incorporated all theCommand and Management Information SystemsDivision Reserve units countrywide. The national exer-cise was a success and the latest satellite technology wasused. Reserve Force members also deployed commandand control technologies for the first time.

The recruitment and conducting of basic training for 60members was a major achievement given current budg-etary constraints.

Challenges. Representivity in the leader group is stillnot satisfactory. The improvement of logistic require-ments of units needs to be improved. However, thebudgetary constraints are the main obstacle to largerscale rejuvenation of the Command ManagementInformation System Reserves.

T h e M i l i t a r y P o l i c e A g e n c y R e s e r v eThe Military Police Agency Reserve Force component is1 Provost Regiment, a conventional unit in Pretoria.

The Regimental Headquarters consists of a core of 12active members. A female African Reserve Force lieu-tenant was staffed in the Regular Force Staff OfficerLevel 3 post and will be responsible for the force prepa-

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ration of the Regiment.

During FY2004/2005 severe budget constraints impact-ed negatively on the transformation and renewal of theRegiment as well as the utilisation and training ofReserves.

C O R P O R A T E S T A F F D I V I S I O N

M i l i t a r y L e g a l S e r v i c e s R e s e r v eThe Military Legal Services Division structure has a"shadow" Reserve Force structure. The current strengthof this Reserve Force component is 283 members. TheReserves comprise 266 Military Legal Practitioners, butalso Reserve Force personnel assisting with supportfunctions. Of the 266 Military Legal Practitioners and 17support personnel in the Reserve Force, some 120 mem-bers have already successfully completed the AdvancedMilitary Law Course, which is a prerequisite for theirutilisation as Military Legal Practitioners. Of the 266Military Legal Practitioners, 197 are African.

The establishment and implementation of the ReserveForce component (Military Legal Practitioners) is basedon a threefold objective, namely to prepare ReserveForce Military Legal Practitioners for future operationalutilisation, to supplement the Regular Force MilitaryLegal Practitioners (who are under tremendous strain asa result of present peacekeeping deployments in Africa),and to provide an already trained and evaluated sourceof recruitment for Regular Force vacancies which dooccur. The effective utilisation of the Reserve Force hasalleviated the pressure on the capacity of the MilitaryLegal Service Division to render legal services in respectof peacekeeping operations/deployments.

A highlight for the Military Legal Service DivisionReserve Force was the participation of four ReserveForce Military Legal Practitioners in the Young ReserveOfficers Workshop in Vienna, Austria over the period25 - 31 July 2004.

M i l i t a r y C h a p l a i n c y R e s e r v e sThe Chaplain Service has a core of 238 Reserve Forcechaplains who serve in both Reserve and Regular Forceunits.

A full-time chaplain has recently been appointed to seeto the needs of Reserve Force chaplains and to look intoimproving representivity.

U T I L I S A T I O N O F R E S E R V E F O R C EM E M B E R S I N S T A F F D I V I S I O N SReserve Force members were effectively utilised in Staff

Divisions during the year. Such members bring adimension of civilian expertise into the SANDF, which isinvaluable. Some examples of such utilisation includesenior academic personnel at various tertiary learninginstitutions who are utilised to assist in planning, envi-ronmental scanning and analysis and, particularly in themedical field, as trainers/educators.

In the Military Legal Service, Reserve Force membersmake up a significant portion of the staff capacity of theDivision, without whom service delivery would be sub-stantially reduced.

The Reserve Force Office and the Directorates ofReserves at the Services and other Staff Divisions relyheavily on the inputs and expertise of their ReserveForce members. The Reserve Force Strategy andImplementation Plan, together with many inputs to pol-icy and procedures, have been compiled from such inputgiven at the Defence Reserve Board and the ReserveForce Workshop.

It is an objective for FY2005/06 to promote the creationand filling of Reserve Force posts at Level 2 and 3 head-quarters where this has not yet been achieved.

R E S E R V E F O R C E C O U N C I LThe Reserve Force Council as a statutory body in termsof the Defence Act, 2002, mandated as a consultative andadvisory body representing the Reserve Force wasdirectly involved in and made the following contribu-tions regarding the Reserve Force:

Inputs into the strategy for the Reserve Force.Attendance and full participation at theDefence Reserve Board, Reserve ForceWorkshop, Honours Advisory Panel and theProject PHOENIX Work Groups regarding var-ious Reserve Force matters, including the clos-ing down of the Commando system.Participated in briefings to the PortfolioCommittee on Defence representing ReserveForce issues.The Reserve Force Council represented SouthAfrica at the Confederation Internallie desOfficiers des Reserves (CIOR) and theConfederation Internallie des OfficiersMedicaux des Reserves (CIOMR) congresses.In collaboration with the SA Army organisedparticipation in international shooting competi-tions.Jointly established the Army Reserve ShootingAssociation. This Association incorporates theGold Cup Trust to improve the quality ofshooting throughout the Reserve Force.


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C O N C L U S I O NThe SA Army, in terms of its obligation towards thedevelopment of a viable, transformed and deployableReserve Force has made a great deal of progress.Although the SA Army is currently one year ahead interms of target dates, much remains to be done. To thisend the Chief of the SA Army has reaffirmed his com-mitment to addressing the representivity issues withinthe Army Conventional Reserve leader group and, at thesame time, is implementing programmes to rejuvenatethe Army Conventional Reserve. Although the SAArmy is doing its best to allocate resources to theReserve Force, these allocations are by no means suffi-cient and must be seen in the context of the serious

financial constraints under which the SA Army as awhole has to operate.

The Air Force Reserve has been accepted by the RegularForce of the SA Air Force and is functioning well in thecontext of the one force policy. As a result of this, thepersonnel budget allocated for the utilisation of volun-tary Air Force Reserve members is sufficient to meet therequirement.

In a nutshell, the status of the Reserve Force is still par-lous in terms of a viable and employable force.However, the Reserves are now on a firm and strategi-cally directed path to renewal.

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he main purpose of theDefence AdministrationProgramme is to conductoverall management, ad-ministration and policydevelopment of the De-partment of Defence

DEFENCE ADMINISTRATION

T(DOD). The programme consists of thefollowing sub-programmes:

Political Direction, which is theresponsibility of the Ministerof Defence.Departmental Direction, whichdeals with the Office of theSecretary for Defence.SANDF Command and Con-trol, which deals with theOffice of the Chief of theSANDF.Policy and Planning*.Financial Management*.Departmental Acquisition andProcurement Division*.Corporate Staff Division.Defence Inspectorate*.Equal Opportunities and Affir-mative Action*.

Even though these sub-programmes arepart of the same programme, structural-ly they fall directly either under theSecretary for Defence or the Chief of theSANDF.

P O L I T I C A L D I R E C T I O NThis sub-programme deals with all theactivities of the Minister of Defence inhis capacity as the Executive Authorityresponsible for the political direction ofthe DOD. It also covers the activities ofthe Deputy Minister of Defence. TheMinister of Defence provided his strate-gic guidelines and priorities for theFY2006/07 planning cycle during theannual Ministerial strategic planningwork session and the departmentalplanning and budgeting seminar.

Both the Minister of Defence and hisdeputy were involved in a number ofdefence-related diplomatic activities inwhich the DOD had a role to play.These included the following:Minister of Defence.

Foreign Visits. The Ministerwas instrumental in defence-related diplomatic activitieswithin the African Union andthe Southern African Develop-ment Community, particularlyin respect of the Inter-stateDefence and Security Commit-tee. On many occasions theMinister represented the Pre-sident in dealing with conflictresolution. He visited Ethiopiaand Tanzania for the finalising

* (Asterisk) denotes those sub-programmes that fall directly under the Secretary forDefence, while the rest fall under the Chief of the SANDF.


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of the African Union’s non-aggression pact anddiscussions on the African Standby Force. Hevisited Kigali, Rwanda for the signing of a co-operation agreement and to visit the genocidalsites and in Maseru, Lesotho he attended acleansing ceremony. In Abuja, Nigeria, he helddiscussions with the Nigerian authorities onmatters of mutual interest. In Namibia heattended the South African/Namibian JPC,and in Iran he held discussions with the Iranianauthorities. He visited Angola, Belgium,Burundi, the Democratic Republic of theCongo, the Ivory Coast, London, Gabon, theSudan and Tunisia where he paid a courtesyState visit and accompanied the South AfricanPresident to attend a meeting of the AfricanUnion on Peace and Security. In theDemocratic Republic of the Congo he visitedthe peace missions and attended the tripartitemeeting between the Democratic Republic ofthe Congo, Belgium and South Africa. He alsoattended the passing out parade of the combat-ants under training in Kamani, Ivory Coast asthe President's assigned mediator. In theUnited Kingdom he held discussions andsolicited support for continental and regionalstructures for peacekeeping missions in theGreat Lakes region involving the DemocraticRepublic of the Congo and Burundi.

Deputy Minister of Defence. The Deputy Minister ofDefence was, inter alia, involved in the following activi-ties:

Foreign Visits. He visited Germany (for thenaming of the RSA Navy corvettes), Lesotho(attended Inter-state Defence and SecurityCommittee), Uganda (meeting regarding thetombs of fallen former South African freedomfighters), Kenya (represented the President inthe Nairobi Summit on Anti-landmines, Niger(represented the South African Government atthe inauguration of the President of Niger),Great Lakes Region (visited the RSA contin-gents in peace missions in the DemocraticRepublic of the Congo and Burundi, and paid acourtesy visit to the Rwandan government).Internal Activities. The Deputy Minister wasvery much involved in support of the DODincluding, but not limited to:

Reserve Force issues.Veterans.Transformation.

D E P A R T M E N T A L D I R E C T I O NThis sub-programme deals with the Office of theSecretary for Defence in his capacity as the Head of

Department and Accounting Officer for the DOD. He isresponsible for providing departmental direction, sup-ported by the Chief of the SANDF, in respect of policydecisions, strategic direction, advice to the Minister ofDefence and the President. To discharge his responsi-bilities, the Secretary for Defence makes use of strategicmanagement bodies such as the Defence Staff Council,Accountability Management Committee and theDefence Secretariat Board. In this regard he remainedcommitted to the implementation of strategic decisions(the Parys Resolutions) taken in March 2004 with a viewto repositioning the DOD and ensuring that the depart-ment remains within the allocated budget. Some of thestrategic decisions taken and/or which continued to beimplemented under the direction of the Secretary forDefence included the following:

The review of the White Paper on Defence andthe Defence Review in the form of the DefenceUpdate.The review of the individual performancemanagement system in order to make it moretransparent and efficient and to promote equi-ty.

The Secretary for Defence was accountable toParliamentary committees charged with the oversightfunction of the DOD. Some of the issues that he had toaccount for included the following:

Human resource development in the DOD.Peace missions.DOD Strategic Business Plan.DOD Annual Report.Military justice system and collective bargain-ing in the SANDF.The review process of the Defence White Paperon Defence and the Defence Review.Defence industries.Protocols for ratification, for example, regard-ing the SADC Mutual Defence Pact.

The Secretary for Defence and the Chief of the SANDFparticipated in the defence-related Government clusters,namely the International Relations, Peace and Security(IRPS) cluster, the Justice, Crime Prevention andSecurity (JCPS) cluster and the Governance andAdministration (G & A) cluster.

The year under review also saw some changes in thestrategic management cadre within the DefenceSecretariat with the appointment of the DODGovernment IT Officer (GITO), Major General M.J. duToit. This enables the Secretary for Defence to executehis functions as per the Defence Act relating to strategicdirection for Command and Management InformationSystem, related policy and the ability to exercise strate-gic control to enhance civil control.

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S A N D F C O M M A N D A N D C O N T R O LThis sub-programme provides for the Office of the Chiefof the SANDF. The Chief of the SANDF is responsiblefor ensuring the successful execution of operations asprescribed in the Constitution, the Defence Act and theMilitary Strategy. Furthermore, he has to ensure thatthe SANDF remains a disciplined force and that it hasthe appropriate defence capabilities as may be requiredin line with missions stipulated in the Military Strategy.For this purpose the Chief of the SANDF makes use ofstrategic command bodies such as the Military Counciland other functional staff councils.

During the year under review, the Chief of the SANDFwas instrumental in supporting the Minister ofDefence's peace initiatives as part of the African Union(AU) and Southern African Development Community(SADC). A number of SANDF troops were deployed incountries such as Burundi, the Democratic Republic ofthe Congo (DRC), Ethiopia/Eritrea, Liberia and theSudan. Such deployments were either a continuation ofexisting or new operations. Under his leadership, theSANDF continued to play a significant role in the estab-lishment of the SADC Brigade. At the same time he con-tinued to foster strong military-to-military relationswith various countries in line with the InternationalRelations, Peace and Security priorities and the DOD'sdefence diplomatic policy. These military diplomaticengagements were a result of high-level defence-relatedmemoranda of understanding, or direct invitations tohim to share with different countries the South Africansuccess story of integration of former adversarial forcesinto a unified national defence force. Flowing from suchengagements were exchange programmes for trainingand a number of multinational exercises as part of theforce preparation strategy of the SANDF.

The year under review also saw the senior leadership ofcertain critical services hand over the baton to new lead-ership. Lieutenant General S.Z. Shoke was appointed asChief of the SA Army, Lieutenant General C. Gagiano asChief of the SA Air Force and Vice Admiral J. Mudimuas Chief of the SA Navy.

P O L I C Y A N D P L A N N I N G

A N N U A L R E V I E WThe Policy and Planning Division managed to executeits mandate in respect of supporting the Secretary forDefence in his capacity as the principal advisor to theMinister of Defence on defence policy matters. The divi-sion continued to provide defence policies, strategies,plans, instructions, structure management services andpolicy advice for the DOD that are fully aligned withGovernment policy and the defence needs of SouthAfrica.

While the division's human resource capacity remainedextremely limited, it optimised on the budgetary alloca-tion it received in order to staff some of the critical postson its establishment. This happened at the time whenthe division had to deliver on a number of critical deliv-erables, such as the Defence Update which seeks tobring up-to-date the White Paper on Defence and theDefence Review, which were promulgated in 1996 and1998 respectively.

Furthermore, the dramatic increase in the need for SouthAfrica, generally, and the DOD, in particular, to getinvolved in the peace initiatives of the African Unionand the SADC, resulted in the division's capacity beingoverstretched. Despite all these challenges the divisionsucceeded in producing high-quality products, such assupporting the Minister of Defence and the Secretary forDefence in developing their strategic guidance to theDOD, the Draft Bill on the Restriction or Prohibition ofCertain Conventional Weapons, the DOD Policy onDonations and Sponsorships and a number of memo-randa of understanding between the DOD and othercountries' defence forces under the guidance of theDepartment of Foreign Affairs.

Eleven bilateral agreements were concluded with vari-ous countries with common interests with South Africa.Given a limited budget, demanding operational require-ments, and increasing external deployment expecta-tions, the principles of affordability and flexibility inforce levels will continue to be pursued by the DOD.The DOD therefore requires a new Service System,which is based upon accruing optimal cost-benefitadvantages for the organisation. During FY2004/05 thedevelopment of the second career state of the newService System, namely the Core Service System wascompleted and it was implemented with effect from 1January 2005. This career stage follows on the firstcareer stage, the Military Skills Development System(MSDS). The aim of the MSDS is to grant young people,mostly school leavers, the opportunity to do voluntarymilitary service for a two-year term. Upon completionof the term of service, the SANDF will select a numberof applicants for continued service in the Regular andCore Service System, whilst the majority of each intakewill eventually feed the Reserves. As at 31 March 2005there were 6 222 MSDS members in the Regular Force,comprising 8% of the Regulars.

P E R F O R M A N C E R E P O R T : C O R E D I V I S I O N A LO B J E C T I V E SThese outputs were achieved under the following sub-sub-programmes within the Division:

Divisional Strategic Direction.Chief Directorate Defence Policy.Chief Directorate Human Resources Policyand Planning.


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Chief Directorate Strategic Management.Directorate Conventional Arms Control.Directorate Legal Support.

Divisional Strategic Direction. To provide strategicdirection to the Policy and Planning Division.

Challenges.Finalisation of the Defence Update (review ofthe Defence White Paper and the DefenceReview).Cluster management.Funding of the Conventional Arms ControlInspectorate.Update of the DOD Structure ManagementControl System.Servicing and reprioritisation of the memoran-da of understanding.

Defence Policy. To formulate and manage defence pol-icy in alignment with Government policy.

Policy Development. The following policieswere finalised and promulgated or were in anadvanced stage of finalisation:

Chief Directorate Defence Policy led theDOD Drafting Committee on the WhitePaper on Defence and Defence ReviewUpdate. Four chapters of the DefenceUpdate were drafted and approved by theDefence Staff Council and the Minister ofDefence. These were also presented to theParliamentary Portfolio Committee onDefence.The DOD Policy on the Management ofDefence Intellectual Property Rights waspromulgated.The DOD Policy on Donations andSponsorships to and by the DOD in linewith the requirements of the Public FinanceManagement Act (Act 1 of 1999) was prom-ulgated.The DOD Policy on Foreign Relations Giftsin line with the Public Finance ManagementAct.The Restriction or Prohibition of CertainConventional Weapons Bill, as drafted andapproved by the Plenary Defence Staffcouncil (PDSC). The Bill had been submit-ted to the office of the Minister of Defencefor approval after which it will be takenthrough the Government clusters andCabinet and ultimately tabled in Parliamentfor promulgation.The Position Paper on Non-proliferation,Disarmament and International Humanita-rian Law for inclusion in the White Paper onDefence and the Defence Review Update

was drafted and finalised.The DOD Policy on the Implementation ofthe Prohibition of Anti-personnel Mines Act(Act 36 of 2003) was drafted and finalised.The process that has produced the draft pol-icy on the use of non-lethal weapons was ledby the SANDF.Involvement in the African Union andSADC activities, eg the development of theCommon Defence and Security Policy.

Support to External SANDF CommitmentsPrepared all the necessary documentationfor Cabinet's approval of the extension ofthe SANDF external commitments in theDemocratic Republic of the Congo andBurundi.Drafted, negotiated and facilitated the con-clusion of bilateral agreements with theAfrican Union and United Nations, Angola,Belgium, the Democratic Republic of theCongo, India, Russia, Rwanda and Sweden.Organised bilateral meetings with Algeria,Angola, Botswana, the Democratic Republicof the Congo, France, Italy, Jordan, Lesotho,Namibia, Nigeria, Mali, Russia, Turkey, theUnited Kingdom, the United States andZimbabwe.

Strategic Management. To provide strategic manage-ment service, integrated management systems andstructure management to the Head of the Departmentand defence leaders through professional staff work inorder to enhance the effectiveness, efficiency, economyand image of the DOD. This is also done for the DefenceSecretariat and the Policy and Planning Division.

Operational DirectionParticipation in the drafting of the DefenceUpdate. The Chief Directorate was integral-ly involved in the drafting of specific chap-ters of the Defence Update, which were laterpresented to and approved in principle bythe Minister of Defence and theParliamentary Committee on Defence.Preparations for the Medium-term ExpenditureCommittee (MTEC) Deliberations. ChiefDirectorate Strategic Management plays acritical role, in support of the FinancialManagement Division, to prepare for thedeliberations on the DOD Budget in theMedium-term Expenditure Committee.

Planning and ProgrammingAnnual Reports for FY2003/04. AnnualReports for FY2003/04 were compiled forthe Policy and Planning Division, theDefence Secretariat and the DOD where thelatter was done in conjunction with the stafffrom the Corporate Staff Division. The

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DOD Annual Report was presented to thePortfolio Committee/Joint StandingCommittee on Defence, whereafter it wastabled in Parliament as prescribed in lawand related regulations.Strategic Business Plans for FY2005/06. TheStrategic Business Plans for FY2005/06 werecompiled for the Policy and PlanningDivision, the Defence Secretariat and theDOD. The DOD Strategic Business Planwas compiled in conjunction with membersfrom the Corporate Staff Division. TheDOD Plan was presented and approved byParliamentary Committees on Defence iethe Portfolio Committee on Defence and/orthe Joint Standing Committee on Defence.The plan was then tabled in Parliament asprescribed in law and related regulations. Quarterly Reports for FY2004/05. QuarterlyReports for FY2004/05 were compiled forthe Policy and Planning Division, theDefence Secretariat and the DOD where thelatter was compiled in conjunction with thestaff from the Corporate Staff Division.Support to Strategic Direction Processes.Direct support was provided in the prepar-ing, planning and co-ordinating departmen-tal strategic planning work sessions wherestrategic decisions are taken.Strategic Planning Processes. The ChiefDirectorate played a crucial role during thedevelopment of the Ministerial strategicguidelines and priorities. This was furtherrefined for implementation through theguidelines provided by the Secretary forDefence and the Chief of the SANDF.Furthermore, the DOD's planning processeswere aligned with those of Governmentthrough the integration of the Medium-termStrategic Framework and Medium-termExpenditure Framework guidelines fromNational Treasury.Strategic Control Processes. Departmentalguidelines and instructions for Quarterlyand Annual Reporting were issued in con-junction with the office of the Chief ofCorporate Staff.

Integrated Management ServicesManagement Consultancy Service Centre. Thiscentre successfully participated in variousDOD restructuring and job evaluation exer-cises. The Post Name Code project wasfinalised, resulting in enhanced functionali-ties of the information management system.Furthermore, evaluation was done on anumber of toolsets aimed at improvingservice delivery and ensuring alignment

with the regulatory framework.Business Process Re-engineering projects.During the period under review, Direc-torate Integrated Management Systems wasat an advanced stage with the businessprocess of re-engineering projects regardingcorporate communications, strategic man-agement, human resources, and the delega-tion management system.Balanced Scorecard. A Balanced ScorecardPilot Project was co-ordinated and in theprocess of being implemented in the SANavy and the Financial ManagementDivision. The Balanced Scorecard will berolled out in the whole DOD on completionof the test period.Project on the Alignment of DOD Processes.This project's charter and plan were devel-oped and approved by the Plenary DefenceStaff Council for further implementation inthe DOD.Policy Development. The following depart-mental policies were finalised:

Management and Utilisation of ExternalManagement Consultants.Enterprise Architecture.Macro structure Management.Departmental Policy Support.

Accessibility of Departmental Policies. In orderto improve on the accessibility of the DODpolicies, the following was done:

A capability to create compact discs ofthe DOD policy website was introduced,especially for military attachés anddeployed units outside the borders ofSouth Africa.The process of reconstructing the DODpolicy website so that it is user-friendly isapproaching completion. Database Management. There were 271policies in the process of being devel-oped, which represented a 34% growthon the previous year. There were 72 poli-cies that had either been cancelled orwithdrawn owing to changes inGovernment policies.

Human Resource Policy and Planning. To support theattainment of the DOD's mission through its aim of pro-viding a Human Resource Policy and Planning servicewithin a constantly evolving regulatory framework.

Human Resource Policy Management. The ChiefDirectorate was instrumental in a number of negotia-tions with DOD stakeholders, such as the South AfricanRevenue Service (eg international deploymentallowances), and the labour unions (eg the transfer of


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the Naval Dockyard).Human Resource Planning

Successful implementation of the secondphase of the DOD Human Resource BudgetPlanning System, known as Legadima, tosupport the budget holders to compile theDOD human resource budget for theFY2006/07 Medium-term ExpenditureFramework period.Electronic planning tools were developedand are being used to measure the DOD'sprogress with employment equity and rank-age compliance.The implementation of the DOD Strategy2010 was presented to and debated by themembers of the Executive National SecurityProgramme and the Joint Senior Commandand Staff Programme.The Skills Development Plan for the Policyand Planning Division was developed andsubmitted to DIDTETA (Diplomacy,Intelligence, Defence and Trade Educationand Training Authority).A new Personnel Acquisition Strategy wasdeveloped for the DOD.The Rural and Scarce Skills Allowance wasimplemented for the Military HealthProfessionals as a mechanism to retain oper-ational and functional expertise.

Service SystemsThe first Military Skills DevelopmentSystem intake (January 2003) successfullycompleted their two-year contract periodand selected members were appointed inthe DOD Core Service System duringJanuary 2005. The remainder of the intakeformed part of the Reserve Force.Successful implementation of the CoreService System as the second tier of the newService System with effect from January2005.

Reserves and VeteransAn agreement was signed between theDepartment of Labour and DIDTETA interms of which Rm56 would be used to pro-vide skills to 4 350 military veterans.A Military Veterans Symposium was heldand attended by the Deputy Minister ofDefence together with other stakeholders inmilitary veterans’ affairs.The final Integration Report was compiledand accepted by the Portfolio Committee onDefence in November 2004.

Legal Support. To provide efficient, professional legaladvice and support to the Ministry and Department ofDefence so as to contribute to an effective defence capa-

bility and to ensure that it operates lawfully within theconstraints of constitutional, national and internationallaw.

Legislation. The Directorate played a crucialrole in the drafting of the following amend-ment bills:

Armscor Amendment Bill, which has beenreferred to Parliament for further process-ing.Defence Special Account Amendment Bill,which has been referred to Parliament forfurther processing.Constitution Amendment Bill, which hasbeen referred to the Department of Justiceand Constitutional Development for furtherprocessing.

Review of the Foreign Military Assistance Act.Owing to the increased participation of SouthAfrican citizens in international conflicts, forexample in Iraq, Cabinet requested a review ofthe Regulation of Foreign Military AssistanceAct. The Directorate was responsible for theestablishment of an interdepartmental taskteam to focus on certain issues, such as merce-naries, foreign enlistment, humanitarian activi-ties and alignment of the National Conven-tional Arms Control Act with the Regulation ofForeign Military Assistance Act. The task teamhas made tremendous progress in this area. Litigation. The Directorate continued to pro-vide valuable advice and assistance to theChief Financial Officer, which has in someinstances resulted in savings being made andmatters settled out of court, thereby eschewingthe incurring of huge legal costs. For instance,two legal matters were successfully settledwith a saving of R70 000,00 in damages andapproximately R20 000,00 in legal costs, whilein another matter a saving of R28 000,00 waseffected.Legal Advice and Opinion. Sound legal adviceand opinion were provided in areas such as thehandling of grievances, military labour rela-tions, matters pertaining to the Promotion ofAccess to Information Act, and the Promotionof Just Administrative Action. Furthermore,legal opinion was also provided in respect ofthe African Union Non-aggression Pact,Mutual Defence Pact and the African UnitedArmy.

Conventional Arms Control. To administer the regula-tion and control over the manufacture and transfer ofconventional armaments in accordance with provisionsof the Conventional Arms Control Act and as deter-mined by the National Conventional Arms ControlCommittee.

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The Directorate Conventional Arms Controlmanaged to execute its tasks by ensuring thatapplications were processed with a minimumof delay. Difficulties were experienced onlyduring the last quarter of the financial year,largely owing to staff capacity constraints. Training was provided to various companies inthe defence industry about the provisions ofthe National Conventional Arms Control Act,(Act No. 41 of 2002) thereby enabling them tocomply therewith. This helped create mutualtrust and co-operation, and actually enabledDirectorate Conventional Arms Control to dealwith companies that were not complying withthe provisions of the act. Cases of suspectedviolations of the law were referred to the SAPolice Service for investigation and possibleprosecution.Support to Government's peace initiatives wasprovided by ensuring that no arms transfer toconflict areas took place in violation of SouthAfrica's National Conventional Arms ControlAct.Random in loco inspections were done to verifycompliance with the National ConventionalControl Act and/or end-user stipulations.

O T H E R O U T P U T S O F P O L I C Y A N DP L A N N I N G D I V I S I O N I N S U P P O R T O FG O V E R N M E N T O B J E C T I V E SIn the year under review, the Division undertook the fol-lowing activities in respect of Cabinet and ClusterCommittees:

Prepared the Cabinet Memorandum on the res-olution of the long-standing matter relating toconfiscated Zimbabwean equipment. ThisCabinet Memorandum was submitted to theInternational Relations, Peace and SecurityDirector-Generals' and Ministers' Cluster forrecommendation to Cabinet for approval.Prepared a submission to the Justice, CrimePrevention and Security Director-GeneralsCluster on the Standard Entry and Exit Criteriafor Peace Missions, which was later approvedby Cabinet.Prepared two Cabinet Memoranda forPresidential authority for the deployments ofthe SANDF's military observers in Ethiopiaand Eritrea.Prepared two Cabinet Memoranda forPresidential authority for the extension of thedeployment periods of the SANDF in Burundiand the Democratic Republic of the Congo.Prepared two Cabinet Memoranda forPresidential authority for the deployment ofthe SANDF in the Comoros (support of gener-al elections) and Madagascar (disaster relief).

Prepared two Cabinet Memoranda forPresidential authority for the deployment ofthe SANDF in Mozambique (support of gener-al elections).Prepared two Cabinet Memoranda forPresidential authority for the deployment ofthe SANDF in the Sudan as observers to theAfrican Union Peacekeeping initiatives.Part of the Interdepartmental Task Team pre-pared a submission to the January 2005 CabinetLekgotla on legal and policy framework withinSouth Africa's national security policy. A memorandum of agreement was developedfor the re-deployment of Defence Act Person-nel to the SA Police Service. 250 Defence ActPersonnel are already being retrained fordeployment to the SA Police Service for em-ployment in the security field.The Division made a number of presentationsto the Parliament's Portfolio Committee onDefence, including those pertaining to the sta-tus of equity, the DOD strategic business planand budget, the DOD annual report, imple-mentation of Human Resource Strategy 2010,military labour relations and trade unions, thereview of the White Paper on Defence and theDefence Review, and so forth.

F I N A N C I A L M A N A G E M E N T

A N N U A L R E V I E WThe core objective of the Financial ManagementDivision, as a sub-programme of the Defence Adminis-tration Programme, is to provide a cost-effective publicfinance management service to the Ministry of Defence,Secretary for Defence and the Chief of the SANDF inaccordance with the Public Finance Management Act,Treasury Regulations and National Treasury practicenotes and circulars. The Financial Management Divi-sion seeks to pursue its core objective by means of a pro-fessional representative civilian financial managementcorps and an appropriate financial management system.

The Financial Management Division has entered thethird phase of a long-term strategy to substantiallyimprove financial management of the Department. Thefirst phase was the re-engineering of the Division forcost-effective service delivery. The second phase wasthe implementation of the public finance regulatoryframework in the finance function within the constraintsof the existing old information systems. The currentphase consists of broadening the scope of implementa-tion of the public financial management framework toother functions affected by public financial manage-ment, such as personnel, matériel and information man-agement. The initiatives include ensuring promulgationof legally enforceable instructions, the integrated finan-


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cial management information system, building ofdepartmental capacity and reinforcing accountabilityarrangements.

The principal activity of the third phase has been theendeavour to procure an integrated financial manage-ment information system to improve financial informa-tion for decision-making as well as to secure compliancewith emerging accounting practices and standards.Despite serious challenges posed by the old supportinginformation systems and organisational capacity, theFinancial Management Division is currently doing itsbest to comply with National Treasury's ongoing initia-tives, namely the Financial Management ImprovementProgramme and the Integrated Financial ManagementInformation System. The Defence GRAP project report-ed on in FY 2003/4 has been superseded by NationalTreasury's Integrated Financial Management Systeminitiative. The information provided through theDefence GRAP project has been most beneficial for thedevelopment of accounting standards and the specifyingof requirements for the Integrated Financial Manage-ment System. In view of the long-term nature of thisproject, Defence will not be able to achieve unqualifiedfinancial statements unless exemptions are authorisedand until such time as the Integrated Financial Manage-ment System has been developed and implemented inthe Department.

The Financial Management Division was successfullyable to provide financial management services to itsclients according to its strategic business plan, servicedelivery charter and related service agreements. Thequality of these services is constrained by the inadequa-cy of current departmental information supporting sys-tems, departmental and divisional human capacity andthe lack of a will to exercise control.

P E R F O R M A N C E R E P O R T : C O R E D I V I S I O N A LO B J E C T I V E SThe Financial Management Division's outputs wereachieved under the following sub-subprogrammes with-in the Division:

Budget Management Services.Financial Accounting Services.Financial Services.

Budget Management ServiceCorporate Budget Preparation Service. Thefollowing outputs were provided as planned:

Departmental budgeting guidelines.Budgeting guidelines.Budget motivation report.Estimate of expenditure.Defence vote.Special defence account schedule.

Corporate Budget Control Service. The follow-

ing outputs were provided:Adjustment budget.Monthly early warning reports (includingexception reports).Virement and fund reallocations.Roll-over claim.Reconciliation statements for cash dona-tions.Expended vote.

Budget Management Service to BudgetAuthorities. The following outputs were pro-vided:

Budget preparation service.Budget execution and control.

Accounting ServicesCorporate Financial Asset and AnnualReporting Service. The following outputs wereprovided:

Management of departmental debt.Management of DOD bank account.Control over financial transactions as pre-scribed in law and related regulations.Preparation of annual financial statements.Provision of adequate cash in the DODPaymaster-General Account for plannedmonthly cash flow.

Stores, Services and Related Payment andRevenue Management. The following outputswere provided as planned:

Provision of cost-effective revenue, pay-ments and related services including cashoffices, face-value documents, telephoneaccounts, overseas debits and freight trans-port.Effective Financial Accounting ServiceCentres and related Financial AccountingSatellite Offices as per approved structureand related service agreements.

Remuneration Administration Service. A cost-effective personnel remuneration service(monthly payment of members/officials) wasprovided as planned.

Financial ServicesPublic Finance Management Act ComplianceService. Cost-effective financial services wereprovided in respect of the following:

Financial risk management.Audit report management.Financial delegations.Audit report management.Financial delegations.Financial policies.Financial misconduct.Losses and claims administration.

Financial Support Service. Cost-effective finan-

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cial and personnel support services were pro-vided in respect of the following:

Financial information support.Contract management.Management of face-value documents.Career management. Grievance and discipline administration. Education, training and development. Divisional administrative support.

O T H E R O U T P U T S O F F I N A N C I A LM A N A G E M E N T D I V I S I O N I N S U P P O R TO F G O V E R N M E N T O B J E C T I V E SThe Financial Management Division was active indefence planning teams involved in the funding of post-conflict reconstruction initiatives as well as the develop-ment of policy and processes for the funding of peacesupport operations by the African Union, including thefunding arrangements for the SADC Standby Force.

D E P A R T M E N T A L A C Q U I S I T I O N A N DP R O C U R E M E N T D I V I S I O N

A N N U A L R E V I E WThe principal task of the Departmental Acquisition andProcurement Division is to acquire both defence andcommercial matériel and services for the DOD. Defencematerial and services are acquired through ARMSCORas prescribed by the ARMSCOR Act, DOD policies andprocedures. The DOD itself acquires commercialmatériel and services according to the Public FinanceManagement Act, Treasury Regulations and DOD poli-cies and procedures.

The creation of the Departmental Acquisition andProcurement Division in the Defence Secretariat is oneof the results of the ongoing transformation in the DOD.This is the nodal point for defence acquisition expendi-ture. The processes followed are instituted in such amanner that it ensures transparency, efficiency andempowerment of personnel and thereby ensures goodgovernance in pursuit of Government objectives.

This division is committed to satisfying armaments andmatériel requirements of the four services (SA Army, SAAir Force, SA Navy and SA Military Health Service),Special Forces and, to a lesser extent, other divisions insuch a manner that full customer satisfaction is ensuredat all times within policy prescripts. In the process ofcapital acquisition, Special Defence Account funds arespent according to corporate priorities to ensure cost-effective solutions to requirements. Sound project man-agement is implemented to integrate and focus theexpertise of ARMSCOR, local and foreign industry,research institutions and the inherent capabilities vestedin the military practitioners. Through the use of theGeneral Defence Account , the division satisfies the day-

to-day matériel requirements of the DOD.

During the period under review the division managedto deliver on the Strategic Defence Packages as per con-tractual arrangements. Within the technology domain, anumber of weapon systems projects and programmeswere controlled and managed. By the close of the finan-cial year, only 6% of the amount allocated to the pur-chase of new weaponry was still uncommitted.Furthermore, the division promulgated the Frameworkfor Supply Chain Management within the DOD with theemphasis on procurement and sales in respect of com-mercial goods and services, which makes the DOD com-ply with the National Treasury's framework and thePublic Finance Management Act.

P E R F O R M A N C E R E P O R T :C O R E D I V I S I O N A L O B J E C T I V E SThis sub-programme consists of the following sub-sub-programmes:

Acquisition Service.Procurement Service.

Acquisition ServiceThe policy on Acquisition of Armaments waspromulgated.Army Acquisition. The following wasachieved:

The Artillery Target Engagement Systemwas integrated into the regiments, whichpaves the way for the digitalisation of thelandward battlefield. Further integration inother regiments will continue untilFY2007/08.The 40 mm Automatic Grenade LauncherSystem was delivered to the SA Army.Six international contenders responded to arequest for proposals on a supply supportvehicle platform.The last batch of SS 77 Light Machine Gunswas delivered.The Mamba Mk 3 Project delivered morethan 100 vehicles to the depot.

Air Force Acquisition. The following wasachieved:

Hawk Lead-in Fighter Trainer. The produc-tion of the Hawks is ahead of time andflight-acceptance trials on the first two air-craft were completed. Good progress hasbeen made with the infrastructure upgradeat Air Force Base Makhado.Advanced Light Fighter Aircraft (Gripen). Theproduction of the first advanced LightFighter Aircraft (Gripen) has commencedand is at an advanced stage of completion.New Light Utility Helicopters. The finaldevelopment and qualification work on


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avionics, communications and autopilotwere completed.Maritime Helicopters. The project is on sched-ule for the acquisition of four maritime heli-copters.A400M Aircraft. Contracting for the acquisi-tion of eight A400M aircraft with Airbus isto take place at the beginning of FY2005/06.Rooivalk Attack Helicopter. The need fromGovernment to deploy the Rooivalk as soonas possible in support of peace missions inCentral Africa has resulted in a change inthe development and qualification schedule.

Naval Acquisition. The following wasachieved:

The delivery of four Type MEKO®A-200(SAN) frigates to South Africa. As part ofthe nation's 10-Year DemocracyCelebrations, SAS MENDI sailed on an EastCoast cruise over the period 31 October to 12November 2004. Port visits included PortElizabeth, East London and Durban.The launching of the first Type 209 Mod1400 submarines by Mrs R. Mompati on 14June 2004 in Kiel.Constructing of the two multi-purpose har-bour tender (tugboats) commenced inFebruary 2005.Closing of the project relating to theupgrade of SAS OUTENIQUA.

Common Weapon Systems. The following wasachieved:

The approval of the staff requirement of thenew family of tactical radios for the DOD.The final approval of the DOD's projects onchemical and biological defence.Acquisition of high-speed long-range boatsto commence at the beginning of FY2005/06.Approval of the high-altitude parachuteequipment.Approval of the ground-based laser desig-nation system.

Technology Development. In an effort to pur-sue appropriate defence-related technologies,regular presentations were made to relevantstakeholders, which resulted in a better under-standing of the Technology AcquisitionManagement System and Projects.

Procurement ServiceThe policy on the Framework on SupplyManagement was promulgated. The commissioning of the WeatherhavenCamping System in Burundi was done in June2004. After protracted negotiations regarding

sites and leases, this system was to be deliveredin April 2005.The sale of disposed defence equipment for theperiod under review went according to plan.The implementation of the Supply ChainManagement System within the DOD waseffected, which paved the way for the DOD toconduct its procurement and sale in respect ofcommercial goods and services with limitedintervention by an outside entity. TheDepartmental Commercial Procurement Boardwas established to adjudicate tenders on behalfof the Accounting Officer, for commercially off-shelf goods and services in excess of Rm 5.This excludes goods and services that are trans-versal. These still go through the State tender.The acquiring of information and communica-tion technology products goes through theInformation and Communication TechnologyAgency (SITA).There is good progress in the implementationof the SA Military Health Service outsourcingproject. The project enables the DOD to referpatients to private hospitals with which theDOD has entered into a public-private partner-ship agreement in cases where patients cannotbe accommodated in military hospitals.Unconditional Treasury Approval 1 for the fea-sibility study had been issued.The Alternative Service Delivery Implemen-tation Board was constituted to deal with therenewal of contracts as well as new require-ments before procurement could proceed.Contracts to a total value of R264 506 364 wereawarded during the period under review bythe DOD's three corporate procurement enti-ties. The historically disadvantaged individu-als were awarded 40.44% in accordance withthe Preferential Procurement Policy Frame-work Act (Act No. 5 of 2000), which totalledR106 957 204. The premium paid in awardingit was 0.35%. At the General Support Bases thevalue of the contracts processed was R352 383411 of which R44 963 773 (or 12%) was award-ed to historically disadvantaged individuals.A contract was approved for the rendering ofan air charter service for the DOD in support ofexternal operations.The computerisation of the bidding processwas implemented in the DOD to ensure trans-parency and to enhance the overall procure-ment process. This was successfully imple-mented at the three corporate procurementservice centres and also at eight GeneralSupport Bases.

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O T H E R D I V I S I O N A L O U T P U T S I N S U P P O R TO F G O V E R N M E N T O B J E C T I V E S

The international credibility of South Africanknow-how is enhanced by the knowledgeapplied to capital acquisition projects andoperational requirements, which is recognisedinter alia by international accreditation via theOrganisation for the Prohibition of ChemicalWeapons of the chemical laboratories support-ing the DOD. Furthermore, five defence-relat-ed research papers were presented at theInternational Ballistic Symposium in Australia.

The Chief of the Departmental Acquisition andProcurement Division supported the Secretaryfor Defence in Bilateral Defence Committeeswith several countries as co-chairperson ofAcquisitions Technology Work Groups in thedefence committees. These include Russia,India and the USA.

C O R P O R A T E S T A F F D I V I S I O N

A N N U A L R E V I E WOn 1 May 2004, Lieutenant General T.T. Matanzima tookover as Chief of Corporate Staff. Other changes in thecommand cadre of the Corporate Staff Division are theappointments of Major General S.B. Mmono as Chief ofMilitary Legal Services, Major General V.I. Ramlakan asChief Director Strategy and Planning, Brigadier GeneralM. Cornelissen as Chaplain General and Rear Admiral(Junior Grade) G. Mphafi as Chief of Defence ForeignRelations.

The Corporate Staff Division continued to providestrategic direction, advice and support to the Chief ofthe SANDF with regard to strategic planning, militarylegal services, communications, defence foreign rela-tions, the Reserve Forces and religious services.

Various highlights of the Division are listed below:The SADC Brigade modality report that wasapproved at the SADC Summit.The High Court's recognition of the Court ofMilitary Appeals and its judgment that there isno right of appeal from the Court of MilitaryAppeals to the High Court, in the case ofPower Mbambo versus Minister of Defence.The completion of a corporate communicationstrategy that is fully aligned with Governmentpriorities.The finalisation and approval of the ReserveForce Strategy.The establishment of the Council for theSupport of National Defence.

The Division continued to conduct its delegated duties

as planned despite limited resources, the loss of skillsespecially in the legal environment, and structural con-straints that were experienced. Notwithstanding thisthe morale of the personnel in general remained highthroughout. The management of transformationremained effective, and the Division did make progresswith regard to representivity in its human resourcescomposition. At strategic level, the decisions made bytop management at the DOD work session at Parys inMarch 2004, referred to as the 'Parys Resolutions', wereaddressed by the Division.

The Reserve Force Office continued to provide service tothe DOD. The value of the services provided by theReserve Force was further confirmed during the Chief ofthe SANDF's strategic work session in September 2004where the SANDF Command Cadre re-affirmed thenecessity for and their support of the Reserves. This willadd impetus to the further development of the ReserveForce system and help to give focus to the implementa-tion of the Reserve Force Strategy.

P E R F O R M A N C E R E P O R T :C O R E D I V I S I O N A L O B J E C T I V E SThe Corporate Staff Office. The Corporate Staff Office isresponsible for directing the Corporate Staff Division toensure that the Chief of the SANDF's expectations(including the provision of policy advice) are met interms of the following sub-sub-programmes:

Strategy and Plan Office.Defence Corporate Communication.Military Legal Services.Religious Services.Defence Foreign Relations.Reserve Force Office.

Strategy and Plan Office. To provide a military strate-gy and planning capability, advice and services for theChief of the SANDF.

The main drive of the Strategy and Plan Officewas through defence diplomacy by participa-tion in activities of particular regional anddepartmental forums. The Strategy and PlanOffice functions as a staff compartment for theChief of the SANDF in the co-ordination ofInternational Relations, Peace and SecurityCluster activities. The office is also involvedwith regional and continental activities in thedevelopment of a Common Defence andSecurity Policy. Current participation in theestablishment of an African Standby Force forthe region has resulted in the approval of theSouthern African Development CommunityBrigade Modality Report.A favourable working relationship with otherdepartments ensures co-operation in the collec-tive goal to achieve national objectives. The


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office is furthermore involved with other gov-ernment departments in compiling a NationalSecurity Strategy for South Africa. Consider-able success was achieved in efforts to alignforce structure and force design with the budg-et allocation. The DOD made excellentprogress in aligning plans with national priori-ties.The DOD Strategic Business Plan forFY2005/06 was finalised in conjunction withthe Policy and Planning Division's staff. ThePlan was then presented to the ParliamentaryPortfolio Committee on Defence before beingtabled in Parliament. The office fully partici-pated in the strategic planning and budgetingprocess of the department. Critical management information was provid-ed to the Executive Authority, Secretary forDefence and Chief of the SANDF. The quarter-ly report process, which is performance againstplan, is fully operational. The SANDF AnnualReport is a core output of this Office and theSANDF State of Readiness Report (CombatReadiness) was presented to Parliament. Thedevelopment of the Strategic Planning Enablertool, as an electronic tool to do planning, budg-eting and reporting, is in progress and shouldbe implemented in the next financial year.A secretarial service was delivered to allDefence Staff Council and Military Councilmeetings as well as a number of SpecialPlenary Defence Staff Council and MilitaryCouncil meetings. A secretarial service wasalso provided to various work sessions of theMinister of Defence, DOD and Chief of theSANDF.The Defence Crisis Management Centre servic-es were negatively affected as a result of theexternal deployment of its staff.In terms of the Parys Resolutions the Strategyand Plan Office is actively involved as a mem-ber of the DOD Steering Committee responsi-ble for the revision of the White Paper and theDefence Review. The Chief Director Strategyand Planning co-ordinated the SANDF effortswith respect to the structural arrangements foroptimal efficiency and effectiveness, includingthe appropriate capacity for the Secretary forDefence and the Chief of the SANDF.

Defence Corporate Communication. To providedefence communication policy, strategy and plans inaccordance with DOD and national (GovernmentCommunication and Information System) policy, and toprovide a centralised corporate communication capabil-ity, services and products in order to enable effective,efficient interactive two-way communication between

the DOD and its stakeholders.Defence Corporate Communication fulfilled itsobjective over the past year by providingstrategic communication direction and adviceto the DOD, aligned and integrated its strategyand plan with that of Government, and deliv-ered the necessary communication services andproducts.With respect to the Parys Resolutions, DefenceCorporate Communication is actively involvedin supporting the Head of Communication toimprove the public image of the DOD. The Defence Corporate Communication subdi-vision actively participated in the GovernmentCommunication and Information System(GCIS) planning forums. This resulted in thealignment and integration of the DOD commu-nication strategy and activities with that ofGovernment and the GCIS. As required,Defence Corporate Communication refocusedcorporate communication in order to effective-ly support operations in the African region.The Defence Corporate Communication sub-division provided advice on national opinionwith respect to SANDF capabilities and opera-tions through the use of the GCIS NationalTracker Survey (Project NATION).To ensure stronger public awareness, under-standing and support for Defence, a joint DODCorporate Communication Strategy was com-piled as a guideline for corporate communica-tion in the Services and Divisions. Outputstowards this objective included the following:

The publishing of SA Soldier. Publication of the DOD Annual Report. Publication of the DOD Strategic BusinessPlan.Facilitation of visits and events. Fifteen corporate videos were produced anddistributed. A total of 500 minutes of videomaterial, including material on the TenYears of Freedom celebrations in the DOD,including the SANDF.A low frequency advertising campaign wasrun over a period of six months to promotethe DOD's celebrations of Ten Years ofFreedom.

The DOD Information Centre received 5 000enquiries that were dealt with at a satisfactorysuccess rate. However, the completion ofenquiries has remained at 80% due to a lack ofresources.The DOD website, which was visited 43 000times during the year, was used for the publi-cation of the DOD Strategic Business Plans,DOD Annual Reports, DOD InformationBulletins, media statements, SA Soldier edi-

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tions and two Reserve Force publications,thereby improving efficiency and costs. A totalof 15 speeches were written for the Secretary forDefence, the Chief of the SANDF and ChiefDirector Defence Communication, while 121Information Bulletins were published through-out the DOD down to unit level.Maintenance, management and administrationof the Delville Wood Museum amounted toR360 000. The National Department of PublicWorks did extensive maintenance and repairsto the structure during the past year. Its sup-port is appreciated.The staffing of appropriately skilled andknowledgeable personnel in vital posts hasbeen a constant challenge. A major effort wasput into training and developing existing andnewly appointed staff members during the yearunder review.

Military Legal Services. To provide professional, legiti-mate and deployable military legal services and supportcommensurate with the needs of the DOD.

The Military Legal Services ensured the provi-sion of a professional, effective and legitimatemilitary defence counsel and deployable opera-tional legal advice support service as required.Also, as an additional task, it assisted with thedrafting of 36 implementing arrangements inrespect of exercises, memoranda of understand-ing, bilateral and multilateral agreements anddiplomatic notes with various countries.Operational legal support was rendered to 10ordered operations and eight joint and multina-tional exercises. 14 shorter operational deploy-ments by courts of senior and military judgesand 11 investigations were conducted.The Military Legal Services reviewed 37 piecesof legislation that were promulgated during2004 to establish the possible impact on theDOD.To meet increasing requirements for militaryjudges, more Reserve Force members werecalled up for training and five additional judgeswere appointed. The reassignment of a numberof senior military judges for only six months,which expires in June 2005, creates uncertaintyand will increase the workload for the otherassigned senior military judges. The non-avail-ability of witnesses and interpreters delayscases. The deployment of Senior MilitaryJudges to the Democratic Republic of the Congoand Burundi, where three senior militaryjudges had to preside, exacerbated the avail-

ability of senior military judges internally. Amilitary court was established at 1 MilitaryHospital and has been in operation since 1January 2005. In terms of judicial reviews, no courts of mili-tary appeal sessions were held during the lastquarter as a result of the non-availability ofmembers of the courts of military appeal andjudges of the high court to act as chairpersonsat the courts of military appeal sessions. As atthe end of the period under review, a total of115 cases were pending review by the courts ofmilitary appeal. This situation may have anadverse effect on the administration of militaryjustice.Effective and legitimate military defence coun-sel and deployable operational legal advicesupport services were provided as required.Over and above its normal responsibilities, theMilitary Legal Services also assisted in thedrafting of implementing arrangements inrespect of memoranda of understanding, bilat-eral and multilateral agreements, and diplo-matic notes with various countries. Military Prosecutions successfully directed andmanaged key operational prosecutions andvarious other serious cases where either theclient or the Legal Satellite Offices soughtadvice. Clear direction was given and move-ment experienced in certain complex internaland departmental investigations, such as withthe British Military Advisory and TrainingTeam forensic investigations. The absence ofan electronic database restricts monitoring ofthe functioning of Legal Satellite Office man-agement systems in terms of assessment of caseinflow, outstanding cases and measures of out-put.Four black Reserve Force members from theMilitary Legal Services were selected to attendthe 2004 Young Reserve Officers' Workshopheld in Austria.Despite the human resources, skills and struc-ture constraints, non-availability of high courtjudges, witnesses and a shortage of trainedinterpreters, the Corporate Staff Division con-tinued to ensure that military justice was pro-vided in line with national standards.Measures taken to overcome these difficultieswere mainly the utilisation of skilled ReserveForce members, internal recruiting and therotation of Military Law Practitioners betweenfunctions (where feasible). This ensured expo-sure to various fields of expertise.

2 Permanent members of the United Nations Security Council: France, the People's Republic of China, the RussianFederation, the United Kingdom and the United States.


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Religious Services. The Chaplain General was respon-sible for providing a Chaplain Service that cares for allDOD members and their dependants, and promotesspiritual growth, social support, and ethical conduct.

The Chaplain Service ensured a service thatpromoted spiritual, social and ethical conductfor members of the DOD. The ChaplainService received three awards at the DODMASIBAMBISANE Awards Ceremony in 2004for its excellent contribution towards combat-ing HIV/Aids in the DOD. The appointmentof the new Chaplain General coincided withtwo important planning sessions where com-manders in the DOD and prominent churchleaders were involved in the refocusing of theChaplain Service in terms of its role, task andresponsibilities in the DOD. Out of this a newmission statement and six key performanceareas were developed, which will guide theperformance of the Chaplain Service in the nextfive years.

Defence Foreign Relations. To provide a defence for-eign relations capability and services as directed by theChief of the SANDF.

The SANDF has 26 military attachés deployedin 23 countries. The SANDF also has non-resi-dential accreditation in 17 other countries. Theyear also witnessed nearly a 40% scheduledchange-over in the South African militaryattaché corps. A Regional Military AttachéConference for SANDF military attachés inEurope was held in Spain in January 2005 torevisit the strategy for the region, evaluatebusiness plans for the coming year and intro-duce the new Chief of Defence ForeignRelations.Representation in the P52 Countries has beenupgraded from colonel level to that of abrigadier general. This upgrading was under-taken in order to fully support Government'sforeign policy initiatives.In spite of these achievements, the targets setfor FY2004/05 to increase representation inAfrican countries over the next five years interms of the Foreign Relations Strategy couldnot be achieved owing to the unavailability offunds. The objectives entail the strategic posi-tioning of military attachés in accordance withGovernment priorities and aligned with theMilitary Strategy. Lack of funding also pre-vented the posting of non-commissioned offi-cers to three of the P5 countries as well as a per-manent representative to the mission at theUnited Nations and non-residential posting toLesotho and Swaziland.The Chief of Defence Foreign Relations chaired

the Official Guests Coordinating Committeefor the African Aerospace and DefenceExhibition 2004 and successfully managed theofficial guests for the DOD.The subdivision was also constructivelyinvolved in the arrangements of the continen-tal and regional multinational organisations'defence and security structures with specialemphasis on the activities of the SADC Organand the Inter-state Defence and SecurityCommittee.Although Chief of Joint Operations is the mainrole player in bilateral and multilateral exercis-es, Defence Foreign Relations provided theimportant services of facilitation in the plan-ning and debriefing phases, the entry and exitarrangements, as well as taking care of foreignvisitors and arranging functions.Defence Foreign Relations has continued torender defence diplomacy services. A total of575 DOD visits abroad and 193 foreign visits tothe DOD were dealt with. A wide range ofconsular service activities were undertaken,ranging from the issuing of 1 666 official pass-ports to the processing of 2 557 visa applica-tions. Various military attaché and advisorcorps activities for foreign military attachés inthe RSA were arranged. Five accreditation/de-accreditation ceremonies, 13 day-pro-grammes and events as well as visits to mili-tary installations in the RSA were held. A totalof 45 VIP visits were supported by DefenceForeign Relations on behalf of the Minister andDeputy Minister of Defence, the Secretary forDefence, the Chief of the SANDF and other topofficials.The following challenges were experienced:

Defence Foreign Relations found it difficultto deal with the growing defence diplomacydemands. Since the transfer of DefenceForeign Relations from Defence Intelligenceto the Corporate Staff Division in 2001, thestructure and capacity of Defence ForeignRelations has not been corrected to meet thegrowing requirement for this service.However, the DOD is addressing the mat-ter.The roll-over effect of mission accounts dueto the time lay caused by the Department ofForeign Affairs remains a serious challengefor the Defence Foreign Relations expendi-ture pattern. Defence Foreign Relations,together with the Chief Financial Officerwill engage in new initiatives with theDepartment of Foreign Affairs to find asolution and/or new working procedures toaddress the matter.

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Reserve Force Office. To provide strategic direction tothe development and maintenance of the Reserve Forcesystem by providing specialist advice, policy, strategy,plans and doctrine as well as promotional/marketingproducts and services.

A major achievement was the promulgation ofthe Strategy and Implementation Plan for theRenewal and Transformation of the ReserveForce in September 2004. It is intended thatthis will be the much-needed driver towardsreal progress in renewing and transforming theReserve Force.Through the Defence Reserve Board andReserve Force Workshop, the Reserve ForceOffice managed a number of strategic mattersas well as administrative, operational and tech-nical policies and processes. These includeddelegations to the Secretary for Defence on thecall-up and utilisation of Reserve members,more equitable deductions of premiums for theGroup Life Insurance Scheme for Reservemembers and a number of Human Resourcepolicies and instructions that are directly orindirectly linked to Reserve Force matters.The development of a system that will providea regular and sustainable flow of humanresources to the Resource Force.

The Reserve Force was a standing memberof the work groups constituted to developthe Military Skills Development System andimplementation plan for the 2004 intake.An objective of Human Resource Strategy2010 is the development of a cadet systemfor the SANDF. A draft proposal has beenformulated after consultation with all stake-holders and is in the process of refinement.It is intended to table the concept duringFY2005/06.

A concept for a Reserve Training Scheme wasdeveloped in conjunction with the SA MilitaryHealth Service and other stakeholders. TheMilitary Council approved the creation of theUniversity Reserve Training Unit as a pilotproject for the introduction of such a schemefor the broader SANDF. The Council for Support of National Defencewas successfully launched during September2004. Mr Tokyo Sexwale chairs the council andthe members are representatives from labour,business and community organisations. Theprimary aim is to promote employer and com-munity support for the Reserves and theReserve Force System.The Reserve and Reserve Force System wereactively promoted during the year underreview. The annual magazine entitled The

Reserve Force Volunteer, a new promotionalvideo/DVD entitled What is Reserve ForceService? as well as various posters and leafletsto promote employer support and to popu-larise the Reserve Force service in the SANDFwere produced. The Reserve Force Officeeither initiated or sponsored 116 corporate liai-son functions. The Reserve Force advertise-ment appeared in six external publications.New responsibilities for the Reserve ForceOffice:

Co-ordination of the SANDF's participationin the Confederation Internallie desOfficiers des Reserves Congress and mili-tary skills competitions. Procedures regu-lating the process have been put in place.Management of the SANDF's participationin the US National Guard State PartnershipProgramme. A draft standard operatingprocedure regulating the process and a planfor implementation during FY2005/06 hasbeen developed.

Although not part of the Reserve Force Office'smandate, its regional offices in KwaZulu-Nataland the Western Cape negotiated a war simu-lation exercise for the units in their areas.These initiatives led to the SA Army undertak-ing to plan for and fund such exercises annual-ly for the Conventional Reserve units.

O T H E R C O R P O R A T E S T A F F D I V I S I O N A LO U T P U T S I N S U P P O R T O F G O V E R N M E N TDuring 2004 the Division faced growing requirementsfrom Government for participation in Governmentstructures and regional initiatives. These requirementsstem from, inter alia, the Government's Programme ofAction, the Clusters, the African Union and the SADCon developments surrounding the SADC Brigade andAfrican Standby Force. The Division's outputs are con-stantly exposed in the international environment and thequality of its activities and inputs therefore impactdirectly on the image of the DOD in general and SANDFin particular. Favourable internal and external workingrelationships contributed towards achieving therequired results and achievements. However, as a resultof limited funds, the approved Defence ForeignRelations Strategy, which is focussed on increased mili-tary representation on the African continent, could notbe fully implemented. In addition to the above, the chal-lenge remains to achieve an acceptable, appropriate andaffordable force design and structure, and to establish acombat-ready Reserve Force component.

The Corporate Staff Division was actively supportingGovernment's initiatives regarding peace and security.These included the following:


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Support for Government's Diplomatic Drive/Initiatives in Africa

The Strategy and Plan Office and DefenceForeign Relations continued to play a crucialrole in the planning of the African StandbyForce and the SADC Brigade.SADC Organ activities, especially those per-taining to the Inter-state Defence and Secu-rity subcommittees, such as the Spiritualand Moral Support Work Group were sup-ported.A nodal point for communication of SADCand ISDSC activities was established in theCrisis Management Centre. The Division's Military Legal Service wasinstrumental in providing legal advice onthe development of legislation regardingglobal security.Substantial inputs were provided to theDirector Generals' International Relations,Peace and Security Cluster, as well as theJoint Operational Intelligence Structure.

The Systematic Reduction of the SANDF'sRoutine Internal Deployments. Chief ofDefence Reserves continued to provide adviceand support in the phased withdrawal of theSANDF Commando System.

D E F E N C E I N S P E C T O R A T E

A N N U A L R E V I E WThe Defence Inspectorate, which is headed by theInspector General DOD, provides an independent,objective assurance and consulting service designed toadd value and improve the DOD's operations. The inter-nal audit function of the Defence Inspectorate deter-mines whether or not the DOD's system of risk manage-ment, control and governance processes is adequate andfunctional. To provide for the independence of theDefence Inspectorate, its personnel, including theService Inspectors General, report functionally to theInspector General DOD (who is also the Chief AuditExecutive) and administratively to their Service Chiefs.Similarly, the Chief Audit Executive/Inspector GeneralDOD reports functionally to the Audit Committee andadministratively to the Secretary for Defence.

During the year under review, the Audit Committee forthe Department of Defence was duly constituted accord-ing to the Public Finance Management Act. Six mem-bers, external to the DOD, of which one post becamevacant, two independent members within the DOD, twoex officio officers, the Auditor-General and representa-tives of the Defence Inspectorate take part in the activi-ties. The members external to the DOD were as followsand appointment dates are indicated in brackets: Dr D.Konar (Chairperson) (24 April 2002), Ms J. John (23 May

2002), Mr D.S. Molapo (24 April 2002), Mr R.K. Pule (23May 2002), and Mr K.A. Ross (24 April 2002).

Four scheduled meetings and a special one were held.Special in-committee meetings were held with theAccounting Officer, Chief Audit Executive, and Auditor-General respectively. In accordance with the Institute ofInternal Audit Standards the involvement of the AuditCommittee was sought in the approval of the three-yearrolling audit strategy and the Defence InspectorateStrategic Business Plan. The Audit Committee ap-proved these plans. The Audit Committee oversees theInternal Audit Charter. Activities of the Audit Commit-tee are formally structured into a plan, allowing the cov-erage of the total spectrum of risk areas that needs to beassessed and monitored, in accordance with the PublicFinance Management Act and National TreasuryRegulations. The terms of reference, which guide theactivities of the Department of Defence's AuditCommittee, were reviewed by the Audit Committeeduring FY2004/05 financial year and was recommendedfor approval by the Accounting Officer.

Audit Committee members had an opportunity to beexposed to the DOD's units through a visit and alsoaccompanied audit members on audit work. Their vastexperience and knowledge of financial matters con-tributed to an increase in the knowledge of someInspector General DOD members. The Audit Commit-tee has direct access to the Auditor-General and to theSecretary for Defence and Chief of the SANDF.Increased reliance by the Auditor General on the inter-nal audit reports by the Inspector General DOD hasenhanced the strategic profile of the Division, thusimproving the departmental corporate governance.

During the year the Division was fully staffed and rep-resentivity in terms of race, gender and rank groupimproved significantly. The implementation of a func-tional electronic audit management system (TeamMate2000) was achieved.

The framework suggested by the Committee ofSponsoring Organisations of the Treadway Commissionof 1992 was adopted as a framework for internal auditreporting. Inspector General DOD is still subject to anannual audit by the South African Bureau of Standardswith regard to the International Standards Organisation(ISO 9001: 2000) certification.

The number of reports analysed during the year inreview was 203. This did not include the 196 condone-ment for the closing down audits and the 67 investiga-tions, of which 25 were referred to the Military PoliceAgency, Legal Services or National ProsecutionAuthority conducted by the Directorate Anti-fraud. TheDivision embarked on a drive to train and empower

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members of Inspector General DOD and the ServiceInspector Generals. Ninety per cent of the members nowpossess a minimum qualification as internal auditors.


Divisional direction.Performance Audit.Regulatory Audit.Anti-fraud.Resource management.

Divisional Direction. To provide direction to theDefence Inspectorate for the attainment of its vision andmission.

Implementation of the Committee ofSponsoring Organisation of the Treadway wasadopted for implementation in respect of inter-nal audit reporting.An automated audit management system(TeamMate) was introduced.The Effectiveness Model was adopted andimplemented.Five members wrote the Certified InternalAuditors international qualification examina-tion. Two members qualified while others stillhave some modules to complete before theyqualify.Policy Development. In terms of the PublicFinance Management Act, Act No 1 of 1999, theDefence Act, Act No 42 of 2002 and theStandards for the Professional Practice ofInternal Auditors it is required that theDefence Inspectorate regulate and align its pro-cedures. The Defence Inspectorate promulgat-ed its policy document to formalise statutoryinternal audit duties as assigned by the PublicFinance Management Act, assign statutoryinternal audit management powers as vestedin the Secretary for Defence by the Defence Actand the Public Finance Management Act andprovide for internal audit activity managementaccountability arrangements.

Performance Audit. To maximize the performanceaudit coverage of the expected losses that relate to risksas delineated in the Risk Register (within the prescriptsof the Public Finance Management Act, associated poli-cies, regulations and instructions).

The Directorate Performance Audit conductedtwo external deployment audits in theDemocratic Republic of the Congo andBurundi. It was discovered that the unavail-ability of vehicle spare parts and the delayedreaction to situation reports and logistical

requests impact on the combat readiness of theRSA contingent. The Directorate PerformanceAudit completed 48 reports. The Centre for Effect Analysis had planned toconduct 84 attitudes and opinion surveys, buthas completed 95. It should, however, be notedthat one of the 84 surveys comprised of 282independent sub-reports. Members were, interalia requested to respond to racism in theirworking environment. Slight positive as wellas negative changes were noted during thesurvey; a considerable percentage of respon-dents continue to hold the view that racism orracial discrimination exists in the DOD.Perceptions, however, varied across services ordivisions, rank categories and populationgroups.The Effectiveness Model to measure combatreadiness has been implemented in the SAArmy and SA Navy. The SA Medical HealthService has partially implemented the model,while, the SA Air Force still has to consider it.

Regulatory Audit. To maximise regulatory and compli-ance audit coverage within the prescripts of the PublicFinance Management Act, associated regulations andinstructions.

The total number of audits conducted for theperiod in review was 155, and 197 certificatesof condonement was given for the closingdown audits. There are however, still over 800closing down audits outstanding in the DOD.The Risk Register for FY2004/05, on which thethree-year rolling audit is based, indicates 140risks to be covered, of which 90 are categorisedas high risk, and 50 risk elements evaluated asmedium risks.Five overseas project offices for the StrategicDefence Packages were audited and it wasfound that the systems and processes to man-age these offices had improved tremendously.Slippage of some projects is becoming costlyfor the DOD.The deviation of the quantity of audit reportsfrom the planned schedule was due to thetraining on TeamMate and the passing away ofthe Director. Training mentors were appointedto speed up the reskilling of the new members.

Anti-fraud. To provide a fraud and related economiccrimes detection, investigation and prevention service.

The Directorate Anti-fraud was established inorder to address the fraud and corruptionpractices in the DOD. Directorate Anti-fraudfocuses on the prevention and detection offraud, forensic investigation and the monitor-ing of fraud and corruption in the DOD. The


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directorate consists of specialised expertise,information sharing capabilities, and opera-tional independence to address unethicalbehaviour.The total number of investigations undertakenwas 67, with 42 completed and 25 referred tothe Military Police Agency, Legal Services orNational Prosecution Authority.

Resource Management. To sustain the DefenceInspectorate strategy and business plans through effec-tive and efficient resource management.

Performance. This objective was substantially achieved.However, the complex and long procurement processesof the General Support Base pose the risk of delays in theprovision of timely logistic support to the clients and aresultant deviation from planned expenditure patterns.These delays have also become critical in the servicingand repair of vehicles.


One of the strategic outputs of the DefenceInspectorate is to ensure the combat readinessof the SANDF. The Defence Inspectorate par-ticipates in the combat-readiness cluster, whichensures that deployed forces are mission-readyand have the correct equipment. The Defence Inspectorate has initiated steps toimplement defence inspection/audit in theDefence Forces in SADC. The ZimbabweDefence Force was the first to be invited toattend the Association of Defence AuditorsConference as an observer, and has showninterest in implementing Defence inspection/audit functions. The Defence Inspectorate willshare its experience gained in the country andthrough various benchmarking exercises andinternational courses with regard to the imple-mentation, management and control of qualitymanagement systems, internal auditing proce-dures and the requirements of the Institute ofInternal Auditors' Code of Ethics.

E Q U A L O P P O R T U N I T I E S

A N N U A L O V E R V I E WEmployment equity and the diversity of the workforcein terms of race, gender and disability are crucial inensuring that people are recognised as an integral part ofthe organisation's failure or success. The EqualOpportunities Chief Directorate plays a critical role incontributing towards the mission-readiness of theSANDF by inculcating the DOD's shared values, espritde' corps and appreciation of diversity as a unifyingmechanism for the SANDF. During the year under

review, the Equal Opportunities Chief Directorate con-tinued to define the building blocks for the successfulimplementation of equity within the DOD. It has had todevise new ways and means to enable members tounderstand the need for compliance reports and todevise formats for uniform reporting.

Equal opportunity issues are human rights issues, hencethe advocacy role that the Equal Opportunities ChiefDirectorate is playing is crucial. One of the highlightsfor the Equal Opportunities Chief Directorate was thecelebration of the International Day for the Disabled thattook place in Simon's Town, during which the plight ofthe disabled members of the DOD was highlighted. Ithas also been involved in various activities in the questfor peace and stability in the region. This was in linewith the striving for military strategic objective ofregional security and supporting the African Union andNew Partnership for Africa's Development (NEPAD)initiatives. It participated in the launching of the 2003Third African Women's Peace Table Seminar Report,which took place in August 2004 in Pretoria.


Policy and Plans.Development, Research and Evaluation.

Policy and Plans. This sub-subprogramme developsand co-ordinates all equal opportunities and relatedpolicies in line with constitutional and other relevantlegislative imperatives.

Equal Opportunities Policy. The Equal Op-portunities Chief Directorate develops and/orparticipates during the revision of equal oppor-tunity-related policies, and it also sits on allforums, such as the DOD Administrative,Operational and Technical Policy Forum andthe DOD PSAP Bargaining Council, in order toensure alignment with equal opportunity val-ues. Furthermore, the following policies weredeveloped for promulgation at the beginningof FY2005/06, while others were revised:

Shared values (new).Prevention and Elimination of UnfairDiscrimination on Grounds of SexualOrientation (new).Guidelines on the Prevention of UnfairDiscrimination towards People withDisabilities (revised).Policy on the Prevention and Elimination ofRacism in the DOD (revised).Mentorship Guidelines for the DOD(revised).Policy on Fast-tracking (revised).

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Equal Opportunities and AffirmativeAction (revised).Sexual Harassment (revised).

Gender Equity. The Equal Opportunities ChiefDirectorate was engaged in a number of activi-ties aimed at promoting equity in the DOD,gender sensitisation programmes, liaison withgender forums and providing reports on gen-der issues.

There was liaison with the national Officeon the Status of Women.The Gender Focal Point successfully organ-ised South African Women's Day, in con-junction with the SA Navy in August 2004.It also organised a bus trip to the 'Save ourSouls' School for the Blind and AIDSorphans in Mamelodi, Pretoria, to demon-strate support for the disabled and the AIDSorphans in November 2004.

Disability Equity. The disability section ofEqual Opportunities Chief Directorate ensuresthe implementation of the principles of theWhite Paper on an Integrated NationalDisability Strategy in the DOD.

Nine barrier-free access projects werelaunched in Bloemfontein in June 2004. Theaim of the projects was to improve the levelof independence and equality that peoplewith disability enjoy in the DOD.Six DOD Disability Forum meetings (ie ameeting every second month) to facilitatethe process of fair acknowledgement of therights of people with disabilities at all levelsin the DOD and to determine the gaps andrequired changes.Equal Opportunities Chief Directoratemembers participated in the quarterly meet-ings of the Interdepartmental CollaborationCommittee on Disability at the nationalOffice on the Status of Disabled Persons inthe Presidency. This was done to ensure theDOD's collaboration in repositioning dis-ability as a development issue in SouthAfrica, Africa and other developing parts ofthe world.The Equal Opportunities Chief Directorateplayed an important role during the CasualDay as the biggest fund and awareness-rais-ing event in South Africa for people withdisabilities and organisations catering forthe needs of disabled persons. The DOD,through the Equal Opportunities ChiefDirectorate's Disability Section, collectedmore than R174 380,00 during that endeav-our. The Curamus Association, which isdirectly involved with the DOD with regardto our own people with disabilities, benefit-

ed from the DOD's involvement in CasualDay activities.The DOD celebrated the International Dayof Disabled Persons in Simon's Town on 3December 2004. The main focus of the cele-bration was to promote and reaffirmGovernment's commitment to the uplift-ment of people with disabilities. A survey was conducted in an effort to col-lect and gather data and information on thenumber of people with disabilities and theirworking conditions in the DOD. There is aserious lack of reliable information in theDOD in respect of people with disabilities.This is largely because many people withdisabilities in the DOD do not disclose theirdisabilities. A concerted effort is beingmade to determine the reasons for peoplenot disclosing their disability status.

Affirmative Action. The Equal OpportunitiesChief Directorate is mandated to monitor theimplementation of Affirmative Action byServices and Divisions and the DOD compli-ance with equity legislation and theGovernment's transformation imperatives.The DOD utilises both the targets set by theWhite Paper on Affirmative Action and theDefence Review to monitor racial, gender anddisability representivity trends in the DOD.

Services and Divisions submitted theirAffirmative Action plans and progressreports for 2004, which were thoroughlyevaluated by the Equal Opportunities ChiefDirectorate. Furthermore, fast-trackingplans were also submitted, which had to bealigned with the mentoring process.A workshop was held in August 2004 wherethe Equal Opportunities Chief Directorateassisted the Services and Divisions with theimplementation of mentoring in the DODand the training of mentors. Services andDivisions were advised to have their ownspecific Fast-tracking Assessment Boards.The Equal Opportunities Chief Directoratesits on all strategic forums where feedbackon the status of equity is regularly given.Equal Opportunities Chief Directorate host-ed the quarterly DOD Affirmative ActionForum where decisions on progress reports,submissions and monitoring the attainmentof the representivity objectives by theServices and Divisions were made.Roadshows were conducted in Limpopo,Mpumalanga and the Western Cape. Theyare aimed at popularising the acceptance ofthe equal opportunities and affirmativeaction objectives in the DOD. The road-


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shows also help assess violations and prob-lems and serve as early warning systems inregard to equity principles of racism, preju-dice and unfair discrimination. The Equal Opportunities Chief Directorategave briefings and reports to the followingexternal stakeholders:

The Parliamentary Standing Committeeon Public Accounts regarding represen-tivity in the senior management service.It was reported that the senior manage-ment service was predominantly white,while lower levels (both military andcivilian) were predominantly black andAfrican.Briefings to the Deputy Minister ofDefence in respect of the current status oftransformation in the DOD.The DOD Employment Equity Reportwas submitted to the Department ofLabour, Public Service Commission,Parliament and the DOD EqualOpportunities Monitoring and AdvisoryBoard.

Representivity. Even though the DOD hasnot achieved the minimum targets, progressin equity is visible. Racial representivitymeasured against the DOD total strengthindicates an over-representation ofAfricans, but there is still a lot of improve-ment required in respect of gender, seniormanagement, middle management andwarrant officers. There is negative over-representation of Africans at lower levels,where whites are very under-represented.

Development, Research and Evaluation. Todevelop, manage and monitor the execution ofequal opportunities and affirmative actiondevelopment programmes in the DOD. This,inter alia, includes the mandatory equal oppor-tunity and affirmative action sensitising anddevelopmental training of all members andemployees at all levels of the DOD.

Development. The Equal OpportunitiesChief Directorate continued with sensitisa-tion and developmental training pro-grammes with a view to the following:

Creating a DOD environment that is freefrom unfair discrimination.Creating an organisational culture wheresexual harassment is prevented and dealtwith.Creating an environment that valuesdiversity, fosters mutual respect and dig-nity amongst all persons serving in theDOD.

Five middle management seminars werepresented to 120 middle managers. FourWarrant Officers and Senior Non-commis-sioned Officer seminars were presented to atotal of 93 DOD members and personnel.These awareness seminars were presentedin the Eastern Cape, Western Cape,Northern Cape, Limpopo, Gauteng andMpumalanga provinces.Support and advice were provided to quali-fied equal opportunity assistants and advi-sors as well as the SANDF training institu-tions.

Research. To conduct and manage the researchinto existing applications of equal opportuni-ties, and into discriminatory practices in theDOD with a view to making recommendationsfor use by line management and other stake-holders.

Four research projects were undertakenduring the period under review:

Climate Survey. The 2003 Military EqualOpportunities Climate Survey resultswere completed. The results were pre-sented to the Plenary Defence StaffCouncil and the Human SciencesResearch Council before they were pub-lished in The Soldier, the DOD magazine(March 2004 edition). The survey foundthat people still experienced racism insome sections of the DOD. Members atthe lower rank levels (private to sergeant)do not know about the policies of theDOD on equal opportunity and affirma-tive action.Women in Deployment. Focus groupinterviews were conducted in respect ofthe deployment of women. The aim wasto determine the perceptions of DODmembers (military and civilian) aboutwomen in deployment. A comprehen-sive report would be presented duringthe beginning of FY2005/06.Homosexuality in the DOD. Focusgroup interviews were also conductedamong the members of the DOD as a fol-low-up study to the DOD Survey of 2000.The interim results indicated that themajority of DOD members did not have aproblem with homosexuals in the mili-tary as long as they were capable of per-forming their tasks. There was a percep-tion that the challenge would arise dur-ing deployment. Most members feltuncomfortable about this and cited fearof sexual harassment, especially by

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males. A comprehensive report will bepresented at the beginning of theFY2005/06.People with Disabilities. Focus groupinterviews were conducted with employ-ees and members of the DOD who havedisabilities. The interim results showthat disabled people feel that they arebeing discriminated against in the organ-isation. Most do not have barrier-freeaccess to facilities such as ablutionblocks. There is also a great need fortransport to and from work as most pub-lic transport does not accommodateassistive devices. A comprehensivereport in this regard will also be submit-ted at the beginning of the FY2005/06.

Evaluation. This section monitored the imple-mentation of the Equal Opportunity andAffirmative Action policies at various DODunits. The evaluation reports were then per-sonally discussed with the OfficerCommanding who would then compile anAction Plan.


The DOD assisted the Spousal Office in thepreparation of the Burundi South AfricanWomen's Conference in July 2004.The DOD participated in the BotswanaWomen's Conference in August 2004 at theinvitation of the SA High Commissioner inBotswana.The DOD also participated as a member of anational working committee to improve Article5 (promotion of positive attitudes to personswith disabilities in the world) of the UnitedNations Comprehensive and IntegralConvention on the Protection and Promotionof the Rights and Dignity of Persons withDisabilities.The DOD convened the African Women'sPeace Table Seminar in November 2004 withthe purpose of reviewing the outcome of theThird Peace Table for 2003.The DOD assisted the Department ofCorrectional Services with preparations for the16-Days of No-Violence Against Women andChildren in November 2004.


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COMMAND AND CONTROL


he Joint OperationsDivision, that is responsi-ble for the Command andControl programme, con-ducted various internaland external operationsover the period underT

review as part of the SA NationalDefence Force's (SANDF's) contributionto Government's initiatives to supportthe peace and security agenda of theAfrican Union.

The main focus of the Joint OperationsDivisional Headquarters is on directing,planning and conducting operations inaccordance with the Military Strategyand Force Employment Strategy. Themissions addressed the three militarystrategic objectives, namely, enhanceand maintain comprehensive defencecapabilities; promote peace, securityand stability in the region and conti-nent; and support the people of SouthAfrica.1 .

The SANDF follows a mission-basedapproach to achieve the military strate-gic objectives of the DOD. Thisapproach uses wartime and peacetime

missions to direct the peacetime strate-gy for force preparation and to guidejoint and combined force preparationand force employment to combat theincidence of conflict.

Operations related to promoting peace,security and stability and supportingthe people of South Africa dominatedthe Joint Operations activities duringthe year under review. Activities in thefield of promoting peace and securityand stability in the Southern AfricanDevelopment Community (SADC) andthe African continent increased to suchan extent that the SANDF is now theninth largest troop-contributing countryto the United Nations in the world, withtroops deployed under United Nationsand African Union operations in theDemocratic Republic of the Congo,Burundi, Ethiopia, Eritrea, Sudan andLiberia.

Brigadier General D.D. Mdutyana wasappointed as the Deputy Division Com-mander deployed at the Eastern Div-ision Headquarters in the DemocraticRepublic of the Congo. The SANDFstaff officers of the Eastern DivisionHeadquarters are highly respected bytheir commanders and are contributing

1 The military strategic objectives were revised at the Minister of Defence strategic plan-ning work session in August 2004. The old military strategic objectives read thus:'defence against aggression', 'promoting security' and 'supporting the people of SouthAfrica'.

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substantially to the effectiveness of that headquarters.

In Burundi the SANDF also enjoys respect from the citi-zens and the United Nations. The United Nation's ForceCommander, Major General D.M. Mgwebi, heads amultinational force that ensures that peace is main-tained. The SANDF VIP protection element in Burundiis not part of the United Nations force, but is workingwell in conjunction with the Burundian authoritieswhilst the United Nations is ensuring the safety ofreturned politicians. In Ethiopia and Eritrea a small con-tingent of SANDF military observers is flying the SouthAfrican flag along the zone between the two nations.Despite tension in the region, the United Nations andAfrican Union missions continue to ensure stability. Inthe Sudan the SANDF has deployed over 200 soldiers asmilitary observers and staff officers as part of the UnitedNations mission in the war-torn province of Darfur.Harsh desert conditions and very little water have madethe job of our SANDF soldiers difficult, but they perse-vere with professionalism.

The Joint Operations Division is actively involved in theestablishment of the African Standby Force, which hasresulted in great inputs towards the establishment of theSADC Brigade.

Operations relating to supporting the people of SouthAfrica focused on the ongoing safeguarding of the bor-ders of South Africa. The phased withdrawal from rou-tine internal deployments is on track and will continueuntil the target date of 31 March 2009. The SANDF willnot withdraw from any area until there is a proper planand capacity to enable the SA Police Service to take overthe responsibility of ensuring security for all in the ruralareas.

P E R F O R M A N C E R E P O R T :C O R E D I V I S I O N A L O B J E C T I V E SThe Command and Control Programme consists of thefollowing sub-programmes:

Operational Command and Control. Ordered Operations.Special Operations.Conventional Headquarters.

In order for the Joint Operations Division to reach itsobjectives the Division is structured as follows:

Joint Operations Divisional Headquarters.Joint Operational Headquarters.Joint Tactical Headquarters.Special Forces Brigade.

Operational Command and Control. Chief of JointOperations exercises command and control over allSANDF operations through subordinate operationalheadquarters for the successful achievement of missions

and operations.Operational Development. The JointOperations Division is responsible for develop-ing and maintaining the Force EmploymentStrategy, Mission Concepts, Joint OperationalCapability Management process, the AfricanBattle Space concept, the SANDF/SA PoliceService Exit/Entry Strategy implementationplans and the development of Joint and Multi-national Doctrine in the SANDF. Significantprogress was made in the development of theabove-mentioned aspects.Force Employment Strategy. Major changesapproved by the Military Council are that amore integrated departmental and regionalapproach must be followed and new missionconcepts must be applied.

Force Employment Guidelines. The JointOperations Division is the nodal point forthe planning and execution of all forceemployment activities and is thereforeresponsible for providing the required forceemployment strategic guidance and forcerequirements for the applicable Medium-term Expenditure Framework period. TheDivision therefore provided strategic guid-ance for the conduct of force employmentactivities by means of the DOD StrategicBusiness Plan.Capability Management Programme. As aresult of increasing pressure on the defencebudget, as well as the need for transparency,the variety of current and future deploy-ments are being analysed by means of aprocess that will be audited. The Division,however, placed a high priority on the dev-elopment of operational capability manage-ment as well as the development of theAfrican Battle Space concept. On comple-tion, the African Battle Space concept willprovide the context in which strategic mis-sion concepts and doctrine will be devel-oped. Both these concepts will complementthe Force Employment Strategy whenfinalised.Mission Concepts. The mission concepts ofthe SANDF are based on the MilitaryStrategy and take cognisance of the ForceEmployment Strategy. The strategic con-cepts of mission essential training, mission-trained forces, selective engagement andstrategic positioning are the tenets for oper-ations of the SANDF from the strategic tothe tactical level. The mission concepts havebeen formulated and were approved by theMilitary Council and the Chief of theSANDF. It is going to be promulgated as


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Joint Warfare Publication 141 duringFY2005/06.SANDF/SA Police Service Exit/Entry Strategy.In the execution of the decision to withdrawSANDF forces from internal operations andthe transfer of those functions to the SAPolice Service, a phased disengagementplan was formulated jointly with the SAPolice Service. This plan will be executedover a period of six years. The SANDF con-tinued to render support to the SA PoliceService in accordance with the NationalCrime Prevention Strategy, and it will con-tinue to do so until the SA Police Service isin a position to accept total responsibility.Development of Joint and MultinationalDoctrine. Doctrine developed by the Div-ision is being published as Joint Warfarepublications. A total of seven Joint Warfarepublications were registered, two were

promulgated, and five were in the processof promulgation. Joint force preparationand multinational exercises were executedduring the year to determine compliancewith established doctrine. The Division wasalso engaged in developing doctrine for theAfrican Standby Force to be used by theAfrican Union and SADC. The Division alsoassisted in the development of other opera-tionally related publications

Ordered Operations (Peace-Support Operations).These include operations for which normally no provi-sion is made because of their unexpected and unforeseennature. Once ordered, specific provision is made byGovernment as in the case of peacekeeping missions inthe Democratic Republic of the Congo and Burundi.

Details of external operations under this sub-pro-gramme are shown in Table 6.1.

T a b l e 6 . 1 O r d e r e d O p e r a t i o n s : E x t e r n a l

SANDF Specialist ContingentDeployment of SANDF specialistteams (Aircraft Handling Team,Military Police, Air MedicalEvacuation Team, AircraftRescue Fire-fighting Team) insupport of the United NationsMission in the DemocraticRepublic of the Congo(MONUC)

SA Task ForceDeployment of SANDF TaskForce to Kindu, in support of theUN Mission in the DRC(MONUC III)

Staff Officers and Military ObserversDeployment of Staff Officers,Military Liaison Officer andMilitary Observers as part of theUN Mission to the DemocraticRepublic of the Congo(MONUC)

Contingent Commander Support Unit Headquarters - 30Aircraft Handling Team - 45Military Police - 47Air Medical Evacuation Team - 6Aircraft Rescue Fire-fighting Team - 14Military Legal Practitioner - 1Financial Official- 3

SA Task Force Headquarters - 81Infantry battalion - 868Engineer squadron - 51Engineer ferry unit - 10Engineer well drill unit - 2Military Police - 4Engineers - 55Support Element - 94Military Law Practitioner - 1

Staff Officers - 18Military Observers - 1

TOTAL: 1 331

Aim and Nature

Specialist service in support of MONUCsuccessfully com-pleted

Successful participa-tion in the MONUCOperations accord-ing to the opera-tion-al concept

Forces Elements and Personnel Strengths

Results

MISTRALContinuoussince April2002

Operationand Duration

DemocraticRepublic ofCongo

Area

c h a p t e r 6


T a b l e 6 . 1 O r d e r e d O p e r a t i o n s : E x t e r n a l ( c o n t i n u e d )

SA Battalion GroupAdministrative control and sup-port to the SANDF contingentdeployed in support of theUnited Nations Mission inBurundi (ONUB), as well asoperational command of the VIPProtection Unit until completionof VIP protection task

United Nations Staff Officers and Military ObserversForce commander, Staff Officersand Military Observers deployedas part of the ONUB HQ

VIP Protection UnitVIP protection for returned political leaders in accordancewith bilateral agreement

Staff OfficersSANDF staff officers detached tothe United Nations Mission inLiberia (UNMIL) Headquarters

Protector CompanyDeployment of SANDFContingent in support of theAfrican Union Mission In Sudan(AMIS)

Staff Officers and Military ObserversStaff officers and militaryobservers deployed in theSudan as part of African UnionMission in Sudan (AMIS)

Staff Officers and Military ObserversExternal deployment of militaryobservers and staff officers tothe United Nations Mission inEritrea (UNMEE) and the AfricanUnion Mission in Ethiopia(OLMEE)

United Nations Mission in Burundi Force Headquarters - 4Infantry Battalion - 622Engineer Squadron - 10Aviation Element - 21Maritime Element - 26Support Element - 195Military Legal Practitioners - 4Financial Official- 2

Staff Officers - 9Military Observers - 5

VIP Headquarters - 11Support Element - 77VIP Protectors - 163Static Guard Company - 138

TOTAL: 1 287

Military Law Officer - 1Medical Officer - 1Geographic Information SystemOperator - 1Military Legal Practitioner - 1

TOTAL: 4

Contingent Members - 215Staff Officers - 9Military Legal Practitioner - 1

Military Observers - 31

TOTAL: 256

UNMEE (Eritrea)Staff Officers - 1Military Observers - 5

OLMEE (Ethiopia)Staff Officers - 1

TOTAL: 7

Aim and Nature

Transition from African Mission inBurundi (AMIB) toONUB was complet-ed successfully

Protection of Burun-dian political leadersreturning from exilesuccessfulEnvisaged take over by African Unionfrom the BilateralAgreement

Mission conducted successfully and ter-mination on 21 April2005

Deployment of Con-tingent successfullycompleted

Observer tasks successfullycompleted

Observers task successfullycompleted


Results

FIBREContinuoussinceNovember2001

MONTEGO13 October2003 to 21 April 2005

CORDITEContinuoussince 14 July2004

ESPRESSOContinuoussince 31 July2000


Burundi

Liberia

Sudan

Sudan

Ethiopiaand Eritrea

Area


c h a p t e r 6

Special Operations. To provide and employ a specialoperations capability within the approved SpecialForces mandate for the SANDF.

Special Forces Headquarters.5 Special Forces Regiment.4 Special Forces Regiment.Special Forces School.Special Forces Supply Unit.

Special Forces Brigade successfully participat-ed in various operations and joint exercisesduring the reporting period. This includedExercise GRIFFON the aim of which was toexercise actions during maritime and airbornespecial operations in conjunction with theFrench Special Forces, Exercise NICUSY thatfocussed on actions during deployments inPeace Support Operations, and Exercise NEU-TRON, which was aimed at conducting a com-bined multinational airborne offensive live-fireexercise between SA Special Forces andBotswana Special Forces.

Conventional Headquarters. The DirectorateConventional Operations, a subordinate structure of theOperational Level Headquarters is responsible for inter-nal operations conducted under the Military StrategicObjective "Support to the People of South Africa" whichincludes Operation INTEXO, Operation STIPPER,Operation HUMAN and ad hoc tasking. This objectivewas achieved as planned.

Details of internal operations are shown inTable 6.2.Operation INTEXO (Border Line Control).

T a b l e 6 . 1 O r d e r e d O p e r a t i o n s : E x t e r n a l ( c o n t i n u e d )

Staff Officers and Military ObserversAssistance to the electoralprocess in the Union of theComores

Deployment of the SANDF in support of the Third PartyVerification Mechanism, estab-lished to oversee the implemen-tation of the Pretoria Agreement

The SA detachment assisted with integration and democracytraining of the Congolese Armyfor integration purposes ("bridg-ing training")

SA Air Force - 7Military Observers - 7Signallers - 2Interpreter (Special Forces)- 1

TOTAL: 17

Flying hours: 27

Military Observers - 10

TOTAL: 10

Headquarter - 10 Integration Team- 25Team builders - 5

TOTAL: 40

Aim and Nature

SA Air Force - Transport of ballotpapers successfullycompleted.Military Observers -observer tasks suc-cessfully completed

Approximately40 000 members ofthe Congolese Armywent through identi-fication centres.First phase of theteam building is inprogress


Results

TRITON III(20 Mar) 1 April to 30 May 2004

AMPHIBIANTerminatedSeptember2004

TEUTONIC5 January2005


Comores

Rwandaand theDemocraticRepublic ofthe Congo

DemocraticRepublic ofthe Congo

Area

Operation INTEXO, continuous as an ongoingpart of the SANDF commitment to combattrans-border crime in support of the SA PoliceService. Various operations were executedwith the aim of curbing illegal crossings andtrans-border crime. SANDF forces deployedand also executed tasks, including the mainte-nance of the border fence systems. Other oper-ations, which form part of Operation INTEXO,include SA Air Force maritime air patrols andSA Navy operations along the West and Southcoasts of South Africa within the RSAExclusive Economic Zone in order to combatillegal fishing and smuggling of marineresources. For this purpose, 11 companies aredeployed along the national borders men-tioned below at any one time for this purpose:

Lesotho: Free State Province, Eastern CapeProvince and KwaZulu-Natal.Mozambique - Swaziland: KwaZulu-Natal,Limpopo and Mpumalanga.Botswana: North Western Province.Zimbabwe: Limpopo Province.

Combating of Organised Crime andEnforcement of State Authority. The SANDFis also actively involved in rendering supportto the SA Police Service in execution of theNational Crime Prevention Strategy. Variousoperations were conducted in support of theSA Police Service and the Department ofEnvironmental Affairs and Tourism as well asthe Marine and Coastal Management in theHermanus / Gansbaai areas and Cape Town

c h a p t e r 6


region. The SA Navy provided inshore patrolvessels, harbour patrol boats and operationaldiving teams to support the above-mentioneddepartments.Operation STIPPER (Rural Safeguarding insupport of the SA Police Service)

This ongoing rural safeguarding operationat Joint Operational Headquarters level isco-ordinated at Joint Tactical Headquarterslevel. The gradual withdrawal of SANDFpersonnel is taking place as agreed with theSA Police Service. The Army TerritorialReserve reacted to criminal activities andseveral successes were achieved in co-oper-ation with the SA Police Service.The Army Territorial Reserve will continueexecuting the Rural Safety Plan, but with the

T a b l e 6 . 2 I n t e r n a l O p e r a t i o n a l D e p l o y m e n t s : " S u p p o r t t o t h e P e o p l e o f S o u t h A f r i c a "

Border ProtectionBorder patrols were conductedto prevent illegal border cross-ings into the RSA and trans-bor-der crime. Maritime patrolswere conducted along the RSASouth and West Coast as part ofOperations INTEXO

Rural Safeguarding in Support of the SA Police ServiceReaction to incidents of violencein rural areas and area patrols

Safeguarding the election process in support of the SAPolice Service

Provide safety and security during the national elections insupport of the SA Police Service

Safeguarding of the inauguration of the President and the 10thYear of Freedom Celebration inSupport of the SA Police Serviceand other State departments toensure a safe and secure inau-guration process.

SA Army11 Infantry companies

SA NavySAS GALESHEWESAS ADAM KOK

SA Air ForceMaritime patrol aircraft

(67 4 520 man-days)(488 flying hours)(754 sea hours)

23 Army Territorial Reserve platoons(3 122 220 man-days)(1 473 flying hours)

National Joint Operations Centres personnel - 2Joint Operations Committee personnel - 4Attached elements from the SANDF(3 042 man-days)

Services and Divisions military liaison officers(929 man-days)

Aim and Nature

Operationalsuccessesare reflected afterTable 6.4

Operationalsuccessesare reflected afterTable 6.4

Achieved as planned

Completed success-fully

Forces2 Result

INTEXOContinuous

STIPPERContinuous

DÉCOR13 - 16 April2004

UVUYO

13 - 28 April

2004


Swaziland,Zimbabwe,Mozambiqueand Lesothoborders

Rural areas of the RSA

All provinces of the RSA

Gauteng(Pretoria)

Area

2 Personnel strengths shown in brackets.

firm commitment to be phased out by 31March 2009. The Army Territorial Reserve,in its present form, will continue providingrural protection based on the concept ofreaction forces and acting on intelligence.The Army Territorial Reserve is no longersupporting the SA Police Service in urbancrime combating missions.SANDF/SA Police Service Exit/Entry Strategy.The first phase of this strategy was finalisedwith the handing over of the NorthernCape/Namibia borders and part of theLimpopo Province/Botswana borders. Thepart handed over stretches from theNorthern Cape border east to Derdepoorton the Limpopo Province border. Formalhanding and taking over actions between


c h a p t e r 6

SANDF and SA Police Service elements arein process. The SA Police Service will beresponsible for phase two of the Strategythat, inter alia, includes training and plan-ning.

Humanitarian Relief. (Disaster Management,Humanitarian Aid to other State departments).The inherent capabilities of the SANDF wereutilised to support other State departments inthe execution of search and rescue, disaster andhumanitarian assistance missions. The concept

of selective engagement determined the levelof involvement of the SANDF. The inherentcapability of the SANDF to do contingencyplanning was employed to assist the otherdepartments to plan the execution of thesemissions with their own capability. Owing tothe nature of these missions, operations wereplanned and executed in co-operation withthe permanent co-ordinating mechanisms atall levels. Details of humani-tarian relief oper-ations are shown in Table 6.3.

T a b l e 6 . 3 H u m a n i t a r i a n R e l i e f D e p l o y m e n t s

Disaster relief to Madagascar in support of the Department ofForeign Affairs

Preventing the spread of the foot-and-mouth diseaseoutbreak in Limpopo Provincein support of the Dept of Health

Deployment in support of Department of Health to curbthe avian flu in the EasternCape Province

65 members4 x Oryx helicopter1 x Casa1 x Citation (reconnaissance flight only)3 x IL 76 (charter planes to transport Oryx helicopters)

(975 man-days)

(71 flying hours)

1 full-time Force company

(1 020 man-days)

43 Army Territorial Reserve Force members

(2 580 man-days)

(216 flying hours for Operation HUMAN as a whole)

Aim and Nature

Completed success-fully. 327 tons ofrelief supplies wereflown to strickenpeople

Completed successfully

Completed successfully

Force Elements Results

UKUNSINDISAApril 2004

HUMANJuly 2004 toFebruary 2005

8 August 2004 to 15 Decem-ber 2004

Operation andDuration

Madagascar

LimpopoProvince

Eastern Cape Province

Area

Ad Hoc Deployments. Details of ad hoc deployments are shown in Table 6.4.

T a b l e 6 . 4 A d H o c D e p l o y m e n t s

Forces deployed in support of the SA Police Service andother role players with regardto safety and security for theUSA Carrier Strike Group visitto Durban and Cape Town

Security aid to ARMSCOR. Escort of Ratel infantry com-bat vehicles to station asratels were exported toJordan

3 military liaison officers started with planning process.

60 members from Tactical Headquarters, SA Air Force andSA Navy started with implemen-tation, but it was discontinued

(32 man-days)

61 SANDF members including drivers and escorts

(488 man-days)

Aim and Nature

USA Carrier Strike Group did not arriveand the exercisewas cancelled

Export successfullyconcluded


FLOWER27 March to 4 April 2004

HUMAN19 to 27 April2004


Durban and Cape Town

Lohatlha

Area

c h a p t e r 6


T a b l e 6 . 4 A d H o c D e p l o y m e n t s ( c o n t i n u e d )

Support to the Department of Foreign Affairs for the Non-aligned Movement ministerialconference and the AsianAfrican SubregionOrganisation conference

Military logistical assistance provided to the Department offoreign Affairs to assist theGovernment of Mozambiquewith elections

Services and Divisions’ military liaison officers

(31 336 man-days)

61 personnel members1 x C1303 x Oryx helicopters

(610 man-days)

(119.4 flying hours)

Aim and Nature




TREASURE17 - 20 August2004

LYNX II4 - 10 Decem-ber 2004


Durban

Mozambique(Pemba andLichinga)

Area

Operational Successes. The following successes wereachieved in the execution of Operation INTEXO andOperation STIPPER between 1 April 2004 and 31 March2005:

Weapons Found: 1 379.Narcotics Confiscated:

Dagga (marijuana): 52 992 kg.Cocaine: 42 kg.Mandrax: 2 390 tablets.Ecstasy: 1 205 tablets.

Livestock Recovered: 3 908.Undocumented Migrants Apprehended: 52 455.

Stolen Vehicles Recovered: 57Criminals Arrested: 7 137.

Joint Exercises and Multinational Exercises. Variousexercises were conducted during the reporting period.A campaign exercise, Exercise INDLOVU, was plannedand executed from July to October 2004. Exercises VAN-TAGE, AIRBORNE AFRICA, GOLDEN EAGLE, SEAEAGLE, RED LION AND SEBOKA formed part of thiscampaign exercise. Details of the exercises conductedare shown in Table 6.5.

T a b l e 6 . 5 J o i n t a n d M u l t i n a t i o n a l E x e r c i s e s

Planning cycle of campaign Exercise INDLOVU

To exercise the Command and Control capabilities of theSANDF and to conduct opera-tions at operational level. TheDeployable Headquartersconcept was tested and eval-uated during the exercise

Various Headquarters’staff deployed to theWar Simulation Centre

Joint Operations Division - 41SA Army - 3 000SA Air Force - 1 050SA Navy - 770SA Military Health Service - 10

TOTAL: 4 871

Aim and Nature

Achievedas planned

Achievedas planned


VANTAGE12 - 24 July2004

INDLOVU27 September2004 tol 26October 2004


War Simulation Centre, Pretoria

SA Army Com-bat TrainingCentre (Lohatlha)Western CapeAir Force Base MakadoAir Force BaseHoedspruit

Location

SA ArmySA Air ForceSA NavySA Military Health Service

Joint Opera-tions DivisionSA ArmySA Air ForceSA NavySA Military Health Service

ParticipatingForces


c h a p t e r 6

Ta b l e 6 . 5 J o i n t a n d M u l t i n a t i o n a l E x e r c i s e s ( c o n t i n u e d )

Airborne competitionA multinational parachuteskills competition whereteams and individual para-trooper related skills aretested

To evaluate the SA Air Force's operational capa-bility in a joint environment

Joint exercises with the SAAir Force, SA Navy andSpecial Forces to evaluateoperational capabilities ina joint environment

To evaluate the SA Navy's current operational capa-bility

An SA Army exercise where Services andDivisions participatedin supporting the com-petition

TOTAL: 102 members

6 x members per teamBurundi x 3Lesotho x 2Uganda x 1

5 x Impala II 4 x Cheetah D 1 x Cheetah C 1 x Aloette III 1 x BK117 2 x Rooivalk helicopters1 x C212 5 x Oryx 3 x C47TP2 x C185 2 x C208 1 x B707 1 x C130

Various types of Aircraft: 29

Flying hours: 302.1

1 x Cheetah 3 x Oryx Helicopters3 x mine countermeasure vessels2 x inshore patrol vessels1 x operational diving team1 x technical and logistical support unit

TOTAL: 11

4 x Cheetah 4 x Impala II3 x Oryx helicopters2 x mine countermeasure vessels2 x inshore patrol vessels1 x operational diving team1 x technical and logistical support unit

Aim and Nature

Achieved as plannedCompetitionResults:1st SouthAfrica2nd India3rd The Ne-therlands4th Pakistan5th Botswana6th Zimbabwe7th Senegal8th Tanzania

Achieved as planned

Achieved as planned

Achieved as planned


AIRBORNEAFRICA10 - 17 Sep-tember 2004

GOLDENEAGLE16 September2005 to 1 Oct-ober 2004

SEA EAGLE4 October 04to 8 October2004

RED LION27 September2004 - 3 Oct-ober 2004


SA Army Com-bat TrainingCentre (Lohatlha)Bloemfontein

Air Force Base Hoedspruit andMadimbo airstrip

Simon's Town

Saldanha Bay

Location

South Africa x 2, Botswana x 2,Egypt, Tanzania,Nigeria, Senegal,Zambia, Zimbab-we, Germany,UK, The Nether-lands, Pakistan,India and Malay-sia. (ObserversBurundi, Lesothoand Uganda)

Joint Operations Division

SA Air Force

Special Forces

Joint OperationsDivisionSA Air ForceSA NavySA MilitaryHealth ServiceSpecial Forces

Joint Operations DivisionSA Air ForceSA NavySA MilitaryHealth ServiceSpecial Forces

ParticipatingForces

c h a p t e r 6


T a b l e 6 . 5 J o i n t a n d M u l t i n a t i o n a l E x e r c i s e s ( c o n t i n u e d )

To evaluate the SA Army's operational capabilities and to support its formalcourses

Part of the French RECAMP (Reinforcement ofAfrican Capabilities) con-cept in Africa. The exerciseswas held in Mozambique re-affirming Peace SupportCapabilities

Bilateral Medical support Command Post Exercise(CPX) in disaster reliefand mass casualties(MASCAL) combined withreal time support to select-ed clinics.

The USA and RSA hosted a medical intervention exer-cise aimed at uplifting thelocal community of theLimpopo and MpumalangaProvinces

Air concentration training conducted by UnitedKingdom Forces with thespecific aim of conductinghigh altitude low openingparachute training

Multinational command post exercise control ofmaritime shipping

1 x support vessel,SAS DRAKENSBERG

5 x strike craft

1 x brigade - 3 000 members

1 x infantry battalion - 1 000 members

1 x parachute comp-any - 100 members

6 SANDF observers

SANDF: 320SA Military Health Service: 90SA Air Force: 120SA Army: 110

USA: 180

TOTAL: 820

SANDFLiaison Officer - 1SA Military Health Service -1Military Legal Practitioner - 1

United Kingdom Forces

30 Naval Reserve members

Aim and Nature

Achieved as planned

Achieved as planned

Achieved as planned

Achieved as planned

Achieved as planned


RED LION27 September2004 - 3 Oct-ober 2004(continued)

SEBOKA15 - 26 Oct-ober 2004

NICUSY1 - 11 June2004

MEDFLAG28 June 2004-22 July 2004

ACE VI8 November -9 December2004

TRANSOCEANIC16 - 26 August2004


SA Army Com-bat TrainingCentre (Lohatla)

Mozambique

LimpopoProvince

MpumalangaProvince

Oudtshoorn

Cape Town

Location

SA ArmySA Air ForceSA Military Health ServiceSpecial Forces

MozambiqueDefence ForceMembers of the French andBotswanaDefence ForcesObservers from SADC countries,China and Russia

SANDF

3rd Air Force in EuropeanCommand (USA)

Army Support Base Oudtshoorn

United Kingdom forces

SANDF, USA and South Americancountries, includ-ing, Argentina,Brazil, Chile,Ecuador,Paraguay, Peru,Uruguay,Venezuela

ParticipatingForces


c h a p t e r 6

O T H E R O U T P U T S P R O D U C E D F O R D O D C L I E N T SThe outputs produced for DOD clients are reflected inTable 6.6.

T a b l e 6 . 6 O t h e r O u t p u t s P r o d u c e d f o r t h e D O D

Services and Divisions

Services, Divisions and SAPolice Service

Department of Defence


Achieved

Achieved

Achieved

Achieved

Service Recipient Results

Issuing of short and medium-term guidelines to all Services and Divisions regarding force employment aspects

Development of SANDF/SA Police Service exit/entry strategy and plans

Continued development of the operational capability management process

Continued operational policy and joint doctrine development.

Description of Service

c h a p t e r 7




LANDWARD DEFENCE


he SA Army fully sup-ported the Military Stra-tegy during the yearunder review and pro-vided landward forcesthat contributed to theattainment of the mili-

tary strategic objectives, namelyDefence Against Aggression1, Promot-ing Security, and Supporting the Peopleof South Africa. The SA Army haslaunched Project VISION 2020 (for-mulation of the SA Army's Long-termStrategy) during FY2004/05, which isscheduled to be completed in 2005. This,together with the update of the WhitePaper on Defence and the DefenceReview, may require changes in thelandward programme of the SA Army.

The SA Army objectives remainunchanged, namely to provide StrategicDirection, Infantry, Armour, Artillery,Air Defence Artillery, Engineer,Operational Intelligence, Training,Operational Support and Commandand Control.

The year under review saw a change incommand when Lieutenant GeneralS.Z. Shoke assumed command of the

TSA Army on 6 July 2004. The change incommand brought a new and reinvigo-rating spirit into the SA Army asLieutenant General Shoke introduced anew direction, ideas and processes thathave already positively impacted on theway the SA Army conducts its business.Testimony of this new approach includethe revisiting of performance agree-ments and management; the mappingof the SA Army's Strategic ManagementProcess and the approval of the processto conduct the Army Review - The SAArmy Vision 2020, and the derivativeSA Army Long-term Strategy that willfollow, and the reinstitution of the clas-sical military command and controlapproach that "commanders speak tocommanders", and thereby persistentlyreinforcing the principle of accountabil-ity from all commanders.

The SA Army acknowledges that to takethis Army successfully into the nextdecade, leaders and planners have tostand together and work tirelessly torebuild the SA Army to withstand theeconomic and geopolitical challenges oftomorrow.

The year 2004/05 furthermore saw acontinuation of high levels of opera-tional activity involving the SA Army.

1 This objective was changed in August 2004 to read: "Enhance and maintain compre-hensive defence capabilities".


c h a p t e r 7

The Army succeeded in providing two battalions con-sisting of Infantry, Engineer and other support capabili-ties for deployment in Burundi and the DemocraticRepublic of the Congo. Furthermore, the SA Army wasrequired to prepare and provide a company of soldiersfor deployment in the Sudan.

Force preparation took place amidst limited funds. Aspart of force preparation the SA Army participated inone single-service exercise (Exercise SEBOKA) and threemultinational exercises (Exercises AIRBORNE AFRICA,MEDFLAG and ACE VI).

As the human resources component is one of the mostimportant resources in the SA Army, the initiation of theMilitary Skills Development System, and in particularthe January 2005 intake, is regarded as the highlight ofthe past financial year as it marks the real beginning ofthe rejuvenation of the SA Army. Although the systemhas not been fully implemented, the Military SkillsDevelopment process, as well as the 2004 and 2005Military Skills Development plans were completed, withthe 2004 plan currently being implemented. LCAMPS(leadership, command and management principles) hasbeen further institutionalised and the South AfricanExcellence Model and Risk Management are in theprocess of being implemented. It is foreseen that thesesystemic initiatives will provide for radically improvedservice delivery of the Landward Defence Programme inthe future.

P E R F O R M A N C E R E P O R T :C O R E D I V I S I O N A L O B J E C T I V E SThe Landward Defence Programme consists of the fol-lowing sub-programmes:

Strategic Direction.Infantry Capability.Armour Capability.Artillery Capability.Air Defence Artillery Capability.

Engineer Capability.Operational Intelligence Capability.Support Capability.General Training Capability.Command and Control Capability.

S t r a t e g i c D i r e c t i o nThe objective of this sub-programme, namely "to direct,orchestrate and control the SA Army in the achievementof its mission" was achieved. The programme is beingimplemented by the SA Army Office, which is struc-tured as follows:

Office of Chief of the Army.Chief Directorate Army Force Structure.Chief Directorate Army Force Preparation.Chief Directorate Army Corporate Services.Chief Directorate Army Reserve Forces.

Defence Diplomacy. Since September 2004 theSA Army representing the SANDF, withBrigadier General Nelwamondo as the teamleader, was actively involved in the DemocraticRepublic of the Congo to assist the CongoleseArmed Forces in their integration. The Chief ofthe SA Army conducted 5 foreign visits andhosted two visits for chiefs of other armies. Chief Directorate Army Force Structure. ChiefDirector Army Force Structure is responsiblefor force structure development, armamentplanning, human resources planning and logis-tical functions within the SA Army. ProductSystems Management has been added to thisChief Directorate and its function was separat-ed from Directorate Army Logistics, which willfocus on typical logistical functions such asfacility management. Important achievementsof the Chief Directorate are listed below:

The investigation initiated in FY2003/04into the SA Army force design and re-priori-tisation of SA Army armaments was slowed

T a b l e 7 . 1 R e d u n d a n t F o r c e S t r u c t u r e E l e m e n t s C l o s e d D o w n

Command Force Structure Elements as well as Organisations not activated (planned)

Command Maintenance/Workshop Units

7 Division and Force Structure Elements identified for closure

Force Structure Elements with Organisational Entity Status

Closure of Force Structure Element legacies from prior to 3 February 2001

Total

462

50

71

48

27

658

Activity

6,7%

32%

0%

0%

0%

7,1%

Total Closed Down RemainingForce Structure

ElementsTotal % Total %

31

16

0

0

0

47

93,3%

68%

100%

100%

100%

92,9%

431

34

71

48

27

611

c h a p t e r 7


down in order to ensure, firstly, compliancewith the Force Employment Strategy andMedium-term Guidelines of Chief of JointOperations. Secondly, the new Chief of theSA Army needed to analyse and evaluatethe outcome of the Defence Review Update2005 and the Army's Project VISION 2020 inorder to ensure alignment. The phasing out of the Area DefenceCapability (Commandos) of the SA Army istaking place at present. Cabinet approvedthe SANDF/SA Police Service Exit/Entrystrategy. Phase one of the strategy wasimplemented. Two group headquarters and17 commando units were to be closed downin FY2004/05, but the process is not yetfinalised. The closing down of group head-quarters and commando units will continueas planned over the next five years and is tobe completed during 2009.Closing Down of Redundant Force StructureElements. The SA Army has closed 92,9% of

all redundant force structure elements, withthe closure of only 47 still outstanding. SeeTable 7.1 for detail.

Force Design of the SA Army Reserve Force.Great strides have been made in this regardand the SA Army Reserve Force design will befinalised in FY2005/06 with the assistance andcooperation of Chief Joint Operations, theServices and Divisions.SA Army Capability Prioritisation. The SAArmy has concluded a project to prioritise itscapabilities for the short to long term. This hasresulted in prioritised resource allocation dur-ing the SA Army Strategic ManagementProcess for the Medium-term ExpenditureFramework, as well as for capital acquisitionand technology requirements. The past finan-cial year has, however, been one of the mostchallenging years within the logistics environ-ment due to the limited budget versus the ever-increasing costs for the sustainment (maincombat equipment, facilities and general com-

T a b l e 7 . 2 S A A r m y P a r t i c i p a t i o n i n E x e r c i s e s ( S i n g l e , J o i n t a n d M u l t i n a t i o n a l )

MEDFLAG27 Jun to 20 July 2004

AIRBORNE AFRICA11 - 19 September 2004

SEBOKA29 September to 19 October 2004

ACE VI8 November to 9 December 2004

Bilateral Exercise with the United States Army to testthe Medical OperationalCapability of SA MilitaryHealth Service

Benchmarking against other armies and evaluating ourparachute capability

To evaluate the SA Army's Operational Capabilities

Individual knowledge, skills, techniques and procedures

Realistic fire and manoeuvre training

To evaluate existing Combat Service Support

To practise Headquarters procedures and BattleHandling Administrative procedure

Logistic support to the United Kingdom ArmedForces during advancedparachute training

Exercise Duration

744

180

26 820

Aim/Nature Area Man-days

R46 968

R154 917

R12 588 000

SA Army Engineer Formation

2 Teams

BrigadeHeadquarters (-)

1 SA Infantry Battalion,

61 Mechanised Battalion Group

Artillery Battery

Air Defence Artillery Battery

Tank Squadron

Engineer Squadron

IntelligenceSquadron

Support Company

Field Workshop

Logistic Support Team

Limpopo

Bloemfontein

Army Combat Training Centre(Lohatlha)

Army Combat Training Centre(Lohatlha)

Oudtshoorn

SA Army Forces Direct Costs


c h a p t e r 7

modities) of the Army's peacekeeping effortson the continent. Severe underfunding in theseenvironments certainly impacted on the SAArmy's combat readiness. A positive step isthe DOD's efforts towards the disposal of com-modities, in particular that of old or obsoleteammunition. Chief Directorate Army Force Preparation.The Chief Directorate Army Force Preparationis primarily responsible for doctrine and poli-cy, combat readiness, research and develop-ment and education, training and developmentwithin the SA Army. A number of milestonesachieved over the past financial year were:

Policy and Doctrine Development. One policydocument is in the process of being promul-gated. Three doctrines and four publica-tions were registered.Education, Training and Development

Accreditation of SA Army Education,Training and Development. Applica-tions for all schools of the different corpsand other formal training units to beaccredited as training providers havebeen submitted to the Diplomacy,Intelligence, Defence and Trade Edu-cation and Training Authority (DIDTE-TA). The provisional accreditation statusof the School of Armour and InfantrySchool was extended to 30 August 2005and 30 November 2005 respectively. On5 August 2004 the SA QualificationsAuthority approved the LandwardDefence Standards Generating Body.Good progress was made with theprocess of aligning current formal cours-es with prescripts by the SA Qualifica-tions Authority and National Qualifica-tions Framework, to convert all formaltraining into unit standards-based train-ing and to develop qualifications that willprovide maximum portability of trainingto the private sector, in support of theNew Service System when members willnot serve in a lifelong career in theSANDF.As part of force preparation the SA Armyconducted and participated in variousexercises at different levels in order to beable to provide combat-ready user-sys-tems/higher-order user systems to ChiefJoint Operations for operational deploy-ment. A summary of the SA Army's par-ticipation in exercises is reflected in Table7.2. More information on joint, multina-tional exercises is contained in Chapter 6,Table 6.5.

Military Skills Development System.During FY2004/05 the SA Army handledtwo Military Skills Development Systemintakes as part of the process of the reju-venation of the SA Army/SANDF. InJuly 2004 basic military training was pre-sented for 49 SA Military Health Servicemembers. In January 2005 a total of 2 964recruits started training at Oudtshoornand Kimberley for the SA Army as wellas other Divisions. A new comprehen-sive training system that takes recruitsthrough all the facets of training, frombasic military training ultimately to theSA Army's final integrated training exer-cises at the SA Army Combat TrainingCentre and in Bloemfontein, was imple-mented in January 2005.Foreign Learning Opportunities. NineSA Army members attended foreignlearning opportunities abroad. Theseopportunities enable the SA Army toservice bilateral agreements betweenthe RSA and a number of countries, aswell as to benchmark doctrine to ensureexcellence.Language Training. 95 members attend-ed official SANDF courses on foreign lan-guages, with the focus on languagesrequired for operational deployments inAfrica (Kiswahili, Portuguese andFrench). Proficiency in these languageswill increase the efficiency of deployedSA Army forces. This training is limitedto externally deployable personnel. Chemical, Biological and RadiationTraining. The capacity to train for andreact to emergencies with a potentialchemical, biological and radiation threatwas established with the qualification of34 instructors, 12 intermediate level staffofficers and eight cell commandersthrough formal courses at 7 MedicalBattalion Group. Forward Air Controllers. Five qualifiedSA Army Forward Air Controllers under-went the refresher training at the SA AirForce and reached "current status". In thelight of the commissioning of new fighteraircraft and combat helicopters in the SAAir Force in the next few years, the lack ofan institutionalised SANDF trainingcapability to produce new Forward AirControllers is therefore a concern, as thiscapability may be lost completely.

Chief Directorate Army Corporate Services.The Chief Directorate is responsible for

c h a p t e r 7


Strategy and Planning, Human Resources,Organisational Development (Renewal),Communication Services, Foreign Relations,Legal Services, Occupational Health andSafety, Command Management Informationand Chaplain Services. FY2004/05 saw a num-ber of highlights, including the following:

The SA Army has been acknowledged forthe "quantum leap" in improving the plan-ning, budgeting and co-ordination of itsStrategic Management Process and StrategicBusiness Plan by top management. During the year under review the writing ofthe SA Army Review, The SA Army Vision2020 commenced. The SA Army's represen-tivity and equity plan was also finalised. Occupational Health and Safety. To addressthe negative impact of occupational healthand safety on the SA Army's combat readi-ness, an Occupational Health and SafetyMaster Plan was drawn up to execute thefunction more effectively and efficiently. Atraining programme to qualify members inthe field of occupational health and safetymatters was instituted on levels three andfour.

Chief Directorate Army Reserve Forces. TheSA Army proudly reports on the progress,which has been made towards the "one forceconcept". FY2004/05 saw various highlights interms of the rejuvenation and transformationof the SA Army Reserves under the auspices ofProject PHOENIX. The SA Army, in terms ofits obligation towards the development of aviable, transformed and deployable ReserveForce, has made a great deal of progress.Although the Army is currently one year aheadin terms of target dates, much still remains tobe done. To this end the Chief of the SA Armyhas reaffirmed his commitment to addressingthe representivity issues within the ArmyConventional Reserve leader group and, at thesame time, is implementing programmes torejuvenate the Army Conventional Reserve.The focus with regard to training forFY2004/05 was on the Army ConventionalReserve units in the Infantry Formation withRm10 additional funding for training the ArmyConventional Reserve. The result was that 808members completed basic and corps training.For FY2005/06 the emphasis in terms of train-ing will shift to the SA Army EngineerFormation for basic and corps training, whilethe other formations will focus on leader grouptraining only. In January 2005 the ArmyCouncil approved the amount of R2 436 730 for75 days for the preparation of the Motorised

Reserve Force Company, as well as the amountof R3 668 983 for 190 days for the externaldeployment of the company. The deploymentof a second company might be possible inFY2005/06.

I n f a n t r y C a p a b i l i t yThis sub-programme, executed by the InfantryFormation, provides the Infantry capability of theLandward Defence Programme. The Infantry capabilitycomprises both the Regular and Reserve Force.

During FY2004/05 the Infantry capability con-sistently and reliably provided:

Two battalions for deployment in Burundiand the Democratic Republic of the Congo. An Infantry company (140 soldiers) in theSudan.12 Regular Force companies and 23 ReserveForce platoons internally under extremelyrestrictive funding conditions. This per-formance must be noted against the back-ground that troops who are rotated afterevery six months, must be trained and beallowed time to rest. The detailed planningrequired to ensure a smooth transfer androtation cannot be overstated.

There were, however, factors that negativelyinfluenced the combat readiness of the Infantrycapability:

Force training is currently focussed only onthose forces deploying outside the RSA,while regular force training in the form ofretraining of the infantry soldier is at a dan-gerously low level due to financial con-straints.Out of 189 courses planned for 6 832 learn-ers, only 75 were presented.The health and age of troops are still areas ofconcern, as these are increasingly puttingthe achievement of force preparation andforce employment objectives at risk.Emphasis has been put on allocated MilitarySkills Development System troops toincrease the parachute capability in order torejuvenate this capability that forms part ofChief of the SANDF's Reserves.The achievement of the force preparationobjectives of mechanised, motorised, andlight infantry capabilities was hampered by:

Underfunding, affecting the availabilityand serviceability of echelon vehicles andacquisition of ammunition for main com-bat equipment. Understaffing of Army ConventionalReserve units. However, through ProjectPHOENIX the SA Army is attempting torectify the position.


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A r m o u r C a p a b i l i t yThe aim of this sub-programme is to providethe Armour capability of the Landward DefenceProgramme.

A dismounted Armour subunit for deploy-ment in borderline control operations(Operation INTEXO) on the Lesotho/EasternFree State border for the past twelve monthswas provided.A total of 103 formal military courses were suc-cessfully conducted at the School of Armour,from which 1 830 learners qualified, thusexceeding the planned target of 96 courses and1 760 learners.Some of the Armour capability objectives forFY2004/05 were not fully achieved, includingthe following:

No Armour exercises were conducted, andlimited continuation training took place,because of underfunding. Financial constraints impacted on the utili-sation of the Rooikat Armoured CarSquadron and the availability and service-ability of support vehicles.The age and health status of the humanresources component of the Armour capa-bility is of concern. The inflow of personnelin terms of the Military Skills DevelopmentSystem is taking place and the plannedintake numbers need to increase.

A r t i l l e r y C a p a b i l i t yThe aim of this sub-programme is to provide theArtillery capability of the Landward DefenceProgramme.

This has once again been a very significant yearfor the SA Army Artillery capability. TheArtillery capability has evolved and grew instature during the past FY2004/05. Approvalhas been granted for structural changes, as wellas proposed projects regarding the upgradingand acquisition of the Artillery prime missionequipment. The Artillery Formation managed to sustainthe Artillery capability above its critical massand the year was marked most significantlywith the deployment of multi-skilled (artillerybased) and multi-role (infantry role) artillerycapabilities externally and internally. In thisregard the Artillery Formation deployedtroops domestically in support of the SA PoliceService and to guard our borders. Externally,they have deployed to the Great Lakes in aninfantry role.Realistic and functional training was conduct-ed to ensure excellence in combat readiness.The School of Artillery expanded learning

capabilities to meet the professional educationneeds and they have undertaken a number ofinitiatives to improve the quality of instructionand to provide training support to the forma-tion. All artillery training and force prepara-tion are aimed at achieving combat cohesion.It was planned to conduct 57 courses for 1 134learners, of which 46 courses for 966 learnerswere presented. The shortfall in the number ofcourses not being facilitated or not completedis as follows:

9 x courses for 186 learners were to continueduring FY2005/2006.1 x course was changed to a Map andNavigation course for Military Academystudents which was not originally sched-uled.1 x course was cancelled and converted intoan Artillery Target Engage System course toalign members of the Artillery Formationwith the new systems.

Over the past FY2004/05 the increase in num-bers of the lower rank groups through theMilitary Skills Development System has beennotable. Representivity, in respect of race andgender, at lower rank levels has improved.Therefore, in future, racial imbalances at mid-dle management level will be corrected.

A i r D e f e n c e A r t i l l e r y C a p a b i l i t yThe aim of this sub-programme is to provide the AirDefence Artillery capability of the Landward DefenceProgramme.

Although the Air Defence Artillery capabilityachieved most of its objectives for FY2004/05,its conventional capability was not being fullyutilised. This was not intentional, but as aresult of the SA Army's requirement to provideforces for peace support operations in SADCand on the Continent. 102 Battery relieved 101Battery in Burundi in July 2004 and remainedthere until February 2005.Because of the ageing and health problem inthe SA Army and the approach of multi-skilling, the Air Defence Artillery capabilitywas deployed in its secondary role, thus result-ing in a decline in outputs related to the pri-mary role. Conventional training was nega-tively affected.The Air Defence Artillery School produced for-mal training of a high standard and managedto present a total of 25 courses out of 420 dur-ing which learners were trained. Some courseswere cancelled owing to financial constraints.The Air Defence Artillery School achievedexcellent results with learners achieving a passrate of 97%. SA Army "common courses" were

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presented at the school to alleviate the backlogin course attendance of SA Army members.The Air Defence Artillery School won the Chiefof the Army Category "B" Small Calibre-shoot-ing Trophy for the second consecutive year.

E n g i n e e r C a p a b i l i t yThe aim of this sub-programme is to provide theEngineer capability of the Landward DefenceProgramme.

In spite of the loss of personnel, the EngineerFormation could execute its internal and exter-nal tasks and was much in demand both inter-nally and externally. The flexibility of theEngineer capability has been tested by thedemands placed on the formation to providesystems that are operationally sustainable andviable. Increased demands regarding deploy-ments and support to operations have beenmet. However, the long-term sustainabilitywill have to be reviewed and managed realisti-cally to avoid overextensive use of theEngineer capability. It was planned to conduct 43 courses for 870learners, of which 62 courses for 1 458 learnerswere presented. The reason for the deviation innumbers is because of an increased demand toconduct an Assault Pioneer course for theInfantry Formation, as well as courses for theMilitary Skills Development System andReserve Force members.In terms of supporting the military strategicobjective relating to promoting regional securi-ty, the Engineer capability provided twoComposite Engineer Squadrons (minus ) forthe African mission in Burundi as well as forthe United Nations mission in the DemocraticRepublic of the Congo. The drill rig has beensuccessfully used in peace support operationswithin the Democratic Republic of the Congoin the Kindu and Goma regions. Approxi-mately 30 boreholes were sunk in order to pro-vide water for human consumption to the localpopulation and to the United Nations forcesdeployed within the operational theatre.Initially the drill rig did not form part of theestablishment table of the Engineer Formationdue to operational requirements. The formation continues to empower its peo-ple, for example through Exercise SUPER SAP-PER which was a "one force concept" exercisethat integrated both the Regular and ReserveForces. This exercise took place at 2 FieldEngineer Regiment from 24 until 30 October2004. Such empowerment exercises enable theEngineer Formation to meet with the chal-lenges of transformation and representation

within the corps in accordance with Chief ofthe Army’s strategic direction as part of theHuman Resources Strategy 2010.Visits in October 2004 to the United StatesArmy Engineer Corps and in March 2005 to theIndian Engineer Corps allowed for interactionand the sharing of engineer knowledge.Wave 2 of the disposal of redundant construc-tion vehicles has been completed. The compi-lation of the new C-vehicle modules has beencompleted and the disposal of redundantequipment was proceeding as planned. TheUnited States Army Engineer Corps donated aCaterpillar construction vehicle with a first-line maintenance kit to the SA Army EngineerFormation.

O p e r a t i o n a l I n t e l l i g e n c e C a p a b i l i t yThe aim of this sub-programme is to provide theOperational Intelligence capability of the LandwardDefence Programme.

With the exception of preparing a ReserveForce Tactical Intelligence Regiment, the SAArmy Intelligence capability succeeded inachieving all of its objectives for FY2004/05.The Formation headquarters effectively direct-ed and orchestrated Intelligence capabilityactivities, conducted periodic inspections andimplemented rectification plans where neces-sary.The School of Tactical Intelligence presented 27courses. A total of 615 Regular Force learnersachieved a pass rate of 96%. The distance edu-cation programme was further improved, and104 Reserve Force members passed their cours-es. The planned number of 14 courses and 270learners was exceeded owing to the prioritisa-tion of the objective. Continuation training took place as planned.Individual, squadron, regiment level andadvanced field craft training were presented. 1Tactical Intelligence Regiment was trained forits secondary role (Infantry border-line con-trol), as well as in aspects of peace supportoperations.1 Tactical Intelligence Regiment conducted avery successful surveillance training exercise atthe De Brug training area in September 2004. Acomposite squadron, together with a regimen-tal headquarters participated in the exercise.

S u p p o r t C a p a b i l i t yThe aim of this sub-programme is to provide operationallevel command and control for the Support capability ofthe Landward Defence Programme.

Despite being close to exhaustion in terms of itssecond line support and relief in the line capa-


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bilities, the SA Army operational capabilityprovided efficient support to SA Army forcesdeployed in Burundi and the DemocraticRepublic of the Congo.Army general support bases provided efficientgeneral logistic support to SA Army units inthe RSA, in spite of challenges at the procure-ment centres. The National Ceremonial Guardprovided high quality ceremonial services asrequired by various DOD clients.The Support Formation is investigating a pos-sible reinstatement of the Technical Supportcapability in the SA Army. In-house servicingof B-vehicles and D-vehicles could result inmajor financial savings and improved servicedelivery.

G e n e r a l T r a i n i n g C a p a b i l i t yThe aim of this programme is to provide operationallevel command and control for the general trainingcapability of the Landward Defence Programme.

During FY2004/05 the SA Army training capa-bility proved itself as a "centre of excellence"for common training in the SA Army.The SA Army College presented two JuniorCommand and Staff Duties courses with theaim of training Unit Commanders and Grade 1Staff Officers. Three Namibian Defence Forceofficers also attended the courses.The SA Army Gymnasium qualified 685 juniorleaders and 3 SA Infantry Battalion trained 726Military Skills Development System recruits.The SA Army Combat Training School present-ed various practical and theoretical courses onRegimental Duties, Non-commissionedOfficers' Operational Duties, Integrated Sub-unit Commanders, as well as Junior Staff andCommand Duties. It was planned to conduct32 courses for 5 180 learners, of which 24 cours-es were presented for 5 989 learners. Theincrease in numbers was due to larger numbersparticipating in the Military SkillsDevelopment System.To allow for the increasing numbers of MilitarySkills Development System recruits for the SAArmy, the facilities of 3 SA Infantry Battalionwere upgraded, and a Military SkillsDevelopment System Wing established at theInfantry School. Certain courses have been migrated from theSA Army Combat Training Centre and SAArmy Gymnasium to the SA Army College toensure optimal use of the facilities. Elements and units from the SA Army TrainingFormation have successfully participated inExercise AIRBORNE AFRICA and in ExerciseSEBOKA.

Within the Training Formation itself, a Generalwas deployed throughout the year to theDemocratic Republic of the Congo, assignedwith the task to assist the Congolese ArmedForces with their force integration process aspart of the Government's peace initiatives onthe Continent.

C o m m a n d a n d C o n t r o l C a p a b i l i t yThe aim of this sub-programme is to provide a tacticalcommand and control capability for higher order usersystems force preparation and employment for theLandward Defence Programme.

43 SA Brigade HeadquartersOperational Deployment. The BrigadeHeadquarters successfully sustained itscommitments in the Democratic Republic ofthe the Congo in Operation MISTRAL(MONUC III). Furthermore 43 SA BrigadeHeadquarters is also responsible for theNational Contingency Headquarters andthe Basoko Base Headquarters in Kindu.The Brigade's responsibility goes further inthat it is responsible for combat-readinessverification and mission-ready training forthe whole of the RSA contingent in theDemocratic Republic of the Congo.Force Preparation Commitments. The BrigadeHeadquarters successfully completed theannual SA Army force preparation exercise,Exercise SEBOKA.Extended Brigade Concept. The BrigadeHeadquarters was able to fulfil the vision ofChief of the Army pertaining to theExtended Brigade concept (4 x TacticalGroup Headquarters which came into beingin order to fulfil its command and controlcommitments in the theatre of operations),specifically with reference to the staffingprocess and the concomitant office spaceproject. The Brigade is now able to sustainits force preparation and force employmentcommitments.

46 SA Brigade HeadquartersManagement of the Brigade. The "manage-ment by objectives" approach was adoptedand implemented in the Brigade, as well asthe costing of outputs, with the result of amore effective identification and achieve-ment of objectives.Project Involvement. The command and con-trol project for the development of a user-friendly tool to enhance operational efficien-cy, did lead to greater efficiency. TheBrigade Headquarters participated in thedevelopment of a combat-readiness tool inconjunction with the Council for Scientific

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and Industrial Research (CSIR), whichresulted in improved interpretation of com-bat readiness. Another successful projectwas on the new logistical vehicle for theSANDF.

O T H E R O U T P U T S P R O D U C E D F O R D O D C L I E N T SThe outputs set out in Table 7.3 were produced for DODclients for internal consumption:

C O N C L U S I O NAmidst all the challenges that the SA Army is currently

facing, it continues to fulfil its role and mandate. The SAArmy is proud to support the Government's initiativesboth locally and regionally and will continue to do sowhen instructed. All in all, the SA Army has pro-gressed. A firm base has been created for dealing withthe challenges of the second decade of freedom anddemocracy. These challenges include participation inthe creation of the African Standby Force, the imple-mentation of the Human Resource Strategy 2010 and thetransformation of the Reserve Force recruitment for theMilitary Skills Development System and the health sta-tus of our soldiers. The SA Army is determined to con-tinue facing these challenges and succeeding.

T a b l e 7 . 3 O u t p u t s P r o d u c e d f o r D O D C l i e n t s

The funded Command and Control of supported deployed SA Army Regular Force and Reserve Force units

The management and maintenance of SA Army Regular Force, Reserve Force and Public Service Act Personnel

The provision of ceremonial Artillery Gun salutes and other ceremonial Services

SA Army services to SA Military Health Service - Sickbays and veterinary services

Product systems support

DOD Cross-subsidisation. The provision of:

Ammunition for Force Preparation

Items of uniform to members of SA Army working in other Services and/or Divisions

The provision of ration packs for "Support to the People of South Africa" to other Services and Divisions

The provision of centralised stationery

The provision of updated maps and charts

Course support to DOD common training

Driving and maintenance courses for drivers, instructors and examiners

Maintenance of Operational Infrastructure

Printing and Photography Services

36 x Concluded Service Agreements

Chief of the SANDF (Chief Joint Operations)

DOD Human Resources Support Centre

DOD/ The President's Office




DOD

DOD

Chief Joint Operations

DOD

DOD


Achieved

Achieved

Achieved

Achieved

Achieved

Achieved

Achieved

Achieved

Achieved

Achieved

Achieved





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AIR DEFENCE


uring the past year theSA Air Force demon-strated to the nationaland international com-munities that it was avaluable national assetand contributor to the

FY2004/05 the SA Air Force flew a totalof 38 957 hours, of which 14 846 wereforce employment in direct support ofJoint Operations. During the reportingyear the SA Air Force flew 3 535 forceemployment missions in the service ofthe country.

The SA Air Force's major aircraft acci-dent and incident rate in previous yearsreached a level where intervention fromthe senior leadership of the Air Forcewas required. One of the correctivemeasures instituted to reduce the acci-dent and incident rate, was an ExecutiveSafety Management Seminar, presentedby the Directorate Aviation Safety overthe period 20 to 22 April 2004 inPretoria. The Chief of the SA Air Forceopened the highly successful seminar,which was attended by more than 60senior Air Force officers. The rationalebehind the seminar was that safetystarted at the top and was a commandfunction. Such a seminar had not beenheld in the SA Air Force for a number ofyears. Directors and senior staff officersfrom the Air Command, and officerscommanding of all SA Air Force bases,accompanied by senior officers respon-sible for aviation safety at bases, attend-ed the seminar. Speakers who present-ed papers included officers from the SAAir Force, the SA Medical HealthServices, Military Legal Services andexperts from the private sector, such as

DAfrican Union and the New Partnershipfor Africa's Development (NEPAD) ini-tiatives of Government. The SA AirForce contributed manpower and otherelements of air power to contingents ofthe SA National Defence Force(SANDF) deployed in the DemocraticRepublic of the Congo, Burundi, andthe Sudan. The services rendered by theSA Air Force members are good exam-ples and a visible confirmation of theSANDF's involvement in, and commit-ment towards, supporting governmentin ensuring a peaceful and stable regionand continent.

As part of its normal support to the peo-ple of South Africa, the SA Air Forcewas continuously involved in air trans-port, humanitarian operations andcoastal patrol missions. More than 1 607hours were flown in support of thedeployments in the Democratic Repub-lic of the Congo and Burundi, as well as1 921 hours in support of the SA PoliceService during crime prevention andborder protection operations. During

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the aviation industry and the National OccupationalSafety Association.

A large contingent of SA Air Force members participat-ed in the inauguration ceremony of the President andthe SANDF Freedom Day Parade on 27 April 2004. TheChief of the SA Air Force formed part of the podiumgroup and SA Air Force aircraft took part in the fly-pastswhich consisted of three Oryx helicopters, each carryingthe National Flag, and ten Pilatus Astra aircraft in a 10-ship formation. There were also individual aerobaticsdisplays by a Cheetah and an Astra aircraft. LieutenantNdabandaba, the first black pilot to be a member of theelite Silver Falcon aerobatics team, flew the Astra.

The Chief of the SA Air Force and the Chairman of theSA Air Force Association jointly opened the Garden ofRemembrance that was established at Bays Hill on 7May 2004. During the proceedings the SA Air ForceBand introduced the new Air Force march, the UkhoziMarch, composed by the Director of Music.

Exercise GOLDEN EAGLE, which included the Germanand Indian Air Forces, took place during the last week ofSeptember 2004. The exercise was based on a peace-keeping operation scenario and was intended to enhancethe SA Air Force's understanding of how other air forcesoperate during such operations.

The annual Sir Pierre van Ryneveld symposium tookplace on 20 September 2004. The theme of the confer-ence was "Air Power and Africa's Asymmetric Threats inthe 21st Century". The keynote speaker was the Chief ofthe Zambian Air Force, General C. Singogo. 24 AirChiefs and representatives from around the worldattended the conference.

The two-yearly Africa Aerospace and DefenceExhibition event took place at Air Force Base Waterkloofover the period 21 to 25 September 2004. The intentionof management was to turn the exhibition into a nation-al asset by focussing on two main issues. The first wasto improve trade with the Republic of South Africa andthe second to provide a vehicle for political leaders toimprove inter-state relations with the African Union andother friendly countries. From this particular point ofview the exhibition was a complete success, as indicatedby an increase of 46% in the number of exhibitors and52% more floor space being sold, with 25 different coun-tries participating. The popularity of the exhibition andits air show amongst the general public remains a posi-tive aspect. Despite a severe windstorm that forced anearly cancellation of the flying programme on the lastday, an estimated 90 000 people attended the final twodays of the show, which were open to the public.

The Chief of the SA Air Force and selected members of

the Air Force Board, supported by DirectorateManagement and Renewal Services, took part in a road-show in October 2004. The purpose of the roadshowwas to roll out the new SA Air Force values to each andevery unit in the SA Air Force. The Air Force Board hasmandated an initiative to instil the values of Integrity,Human Dignity, Excellence in All We Do and ServiceBefore Self into each Air Force member.

The SA Air Force hosted the 12th International AirReserve Symposium over the period 5 to 10 October2004. 11 member countries, and three countries withobserver status only, attended the symposium.

The annual Air Force Day parade and Prestige AwardCeremony were held on 1 February 2005 to celebrate theSA Air Force's 85th anniversary. The Chief of the SA AirForce presented various awards for achievements in2004 by directorates, bases, squadrons, units and sec-tions. The Chief of the SANDF presented the Sword ofPeace to the Director of the Helicopter Systems Group,Brigadier General H.T. Paine. The Sword of Peaceaward is made to the SA Air Force unit which, in thecourse of the year, makes the most exceptional contribu-tion in the humanitarian field, which has resulted ingood relations being fostered between the unit con-cerned and the local and international community. ThePrestige Unit of 2004 Award went to 28 Squadron at AirForce Base Waterkloof.

On 25 February 2005 Lieutenant General R.J. Beukes,Chief of the SA Air Force, handed over command toLieutenant General C. Gagiano. This parade took placeon Bay's Hill at the Air Force Memorial. Various aircrafttook part in a fly-past to pay tribute to both the outgoingand incoming Chiefs of the South African Air Force.

The first ever SA Air Force Non-CommissionedOfficer/Airman Top Achiever Award 2005 ceremonywas held on 3 March 2005. Flight Sergeant Karin Steynwas awarded Top Achiever for 2005 for her outstandingperformance. This personnel group of the South AfricanAir Force forms an indispensable part of the organisa-tion. The award ceremony for Warrant Officer Achieverof the Year 2004 took place on 31 March 2005. The Chiefof the South African Air Force handed over the 2004 TopWarrant Officer Achiever of the Year trophy to WarrantOfficer Emma Lekalakala.

Two wings parades were held at Air Force BaseLangebaanweg during the year; one in July 2004 and theother in March 2005, with the Chief of the South AfricanAir Force as the Review Officer on both occasions.Thirty-two Air Force pilot wings were awarded, as wellas nine Air Force Reserve pilot wings. Eight flight engi-neers, two air photographers, seven flight attendants,four navigators, six loadmasters, one towed target oper-


c h a p t e r 8

ator, four electronic warfare operators and two electron-ic technicians also received wings. These wings paradeswere characterised by a marked improvement in therepresentivity of the members receiving wings, both interms of race and gender.

Since the inception of the SIYANDIZA programme sev-eral years ago, the programme has gone from strength tostrength. During FY2004/05 in excess of 100 000 learn-ers were reached by means of the aviation awarenessdrive at schools, air shows and science and technologyexhibitions. A very successful aviation awareness cam-paign was also held during the Africa Aerospace andDefence 2004 air show at Air Force Base Waterkloof inSeptember 2004. During the year the Young FalconsYouth Development programme grew substantiallywith the expansion of the programme to Air Force basesnot previously involved in youth development. Apartfrom the courses presented in aviation-related subjectsand life skills, the Young Falcons were also given expo-sure to the aviation environment. The National Officehosted 110 Young Falcons at the Air Force Gymnasiumover the July school holidays where the Young FalconsAdvanced Course was presented.

The investigation into the establishment of a NationalAviation Academy received a major boost during theyear, when the President appointed the Minister ofTransport as the political champion of the project. TheSA Air Force, acting on behalf of the DOD and theMinister of Transport, is to launch an investigation intothe sites of possible venues for the National AviationAcademy, which was due to commence in April 2005.

On the sporting front more than 1 400 Air Force mem-bers participated in the SA Air Force championships. Itis encouraging to note that 53% of SA Air Force uni-formed members are members of the various sportsclubs. A highlight of the year was the participation of 67SA Air Force members, who were included in variousteams representing the SANDF and the SA Air Force insix international military sporting events. Four men andthree women of the SA Air Force were awarded nation-al colours in 2004. A further 85 members obtainedprovincial colours in various sports.

P E R F O R M A N C E R E P O R T :D I V I S I O N A L O B J E C T I V E SThe Air Defence Programme consists of the followingsub-programmes:

Strategic Direction.Operational Direction.Air Combat Capability.Air Transport and Maritime Capability.Helicopter Capability.Command and Control Capability.Operational Support and Intelligence

Capability.Base Support Systems Capability.Education, Training and DevelopmentCapability.Technical Support Capability.

S t r a t e g i c D i r e c t i o nThis sub-programme provides strategic direction to theAir Defence Programme through the formulation, prom-ulgation and control of strategies, policies and plans bythe Air Force Office in order to prepare and provide thecapabilities required by the Chief of the SANDF.

The following policies were developed: Air Power Doctrine. During the reportingyear the SA Air Force approved and pub-lished, for the first time, a document on airpower doctrine at the strategic level. Itbrings the SA Air Force in step with just afew air forces in the world, which have pub-lished similar documents. The importanceof this doctrinal document is that it providesa common baseline for all planning at theService and Joint levels, and serves as thesingular guideline for the further develop-ment of operational and tactical doctrinelater in FY2005/06.Logistic Support Philosophy. A comprehen-sive logistic support philosophy and strate-gy were approved by the Air Force Board.This document describes the underlyinglogic of the way in which the Air Force plansto restructure its logistic capability in orderto provide comprehensive, affordable andsustainable support. In particular, it pro-vides strategic guidance for the establish-ment of logistic support for the aircraft pro-cured under the Strategic Defence Packages,and will greatly assist in the cost-effectivelife cycle support of these systems.Output Objectives. A critical link in the abil-ity of the SA Air Force to train and prepareits air capabilities to support national objec-tives adequately is the availability of com-prehensive output objectives stating clearlywhat each operational force structure ele-ment is required to do to achieve its man-dated readiness levels and operational capa-bilities. Output objectives for every opera-tional capability area in the SA Air Forcewere formulated and promulgated duringthe reporting period, making it possible tocarefully and cost-effectively harmonise theforce preparation of these units with the SAAir Force's strategic objectives.

Substantial progress was made during 2004with the implementation of the SA Air ForceStrategic Transformation Plan Towards 2012.

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As in the previous year, the Air Force Boardselected focus areas consisting of the most crit-ical matters for the achievement of the strategicobjectives in the plan, and focused managerialattention and resources on these areas. Severalfeasibility studies were completed and theirrecommendations implemented, most notablythe relocation of the Air Publication ServiceCentre from Joint Support Base Garrison to AirForce Base Waterkloof, and the reactivation of501 Security Squadron at Snake Valley inThaba Tshwane.During the year the SA Air Force promulgatedan air-to-air missile strategy, which determinesthe functional baseline of the Gripen fleet. Theacquisition and integration of a beyond- visual-range missile is scheduled to commence in2010.An Air Base Strategy was developed in accor-dance with the Vision 2012 requirements. Thestrategy provides a road map for the cost-effec-tive ownership of all SA Air Force air bases,and creates a framework for the implementa-tion of mutually beneficial alternate servicedelivery business models. The significance ofthis strategy lies in its firm guidance in reduc-ing the cost of ownership of air bases, whilesimultaneously enhancing the operationalcapability of these assets.

O p e r a t i o n a l D i r e c t i o nThis sub-programme provides operational direction tothe air defence programme by means of an AirCommand. The results of this programme are reflectedin the reports of the capability areas below.

A i r C o m b a t C a p a b i l i t yThe Air Combat capability is responsible for providingand sustaining operationally ready advanced light fight-er aircraft, light fighter training aircraft, long-rangetransport, in-flight refuelling, and electronic warfare air-craft, crewed by appropriately qualified personnel.

The objective of 3 337 flying hours wasachieved as well as the daily objectives of 26serviceable aircraft and 25 qualified crew.During the year the Directorate CombatSystems performed in accordance with the stat-ed objectives of the User System Business Plan.Allocated flying hours were achieved, whilstthe Directorate focussed on the optimisation ofthe flying systems's potential and performance.The progressive phasing-out plan of the ImpalaSystem scheduled for December 2005 andunforeseen technical difficulties lead to a short-fall of approximately 10% in the allocated fly-ing hours. Force preparation objectives of theImpala System were aligned with the imple-

mentation of the Hawk System, scheduled tocommence with flying activities fromSeptember 2005. The primary objective of theCheetah System was to establish and sustain acore operational capability with the intentionof effective implementation of the GripenSystem from 2009. The focus of this systemthus remains on the development and sustain-ment of a core operational training capabilityand the recovery of force preparation objec-tives aligned with this endeavour. Regardingthe B707 capability the output objectives interms of achieving adequate crews to sustainthe strategic air transportation role wereachieved whilst the air refuelling capabilitywas basically re-established in support of along-reach capability. Sustainment of theseroles is, however, dependent on dedicatedforce preparation and the establishment of acore training capability that is currently belowa critical level.Combat Training Capability. The Impala com-bat training system flew a total of 1 995 hours.The phasing-out process of this aircraft system,which is being replaced by the Hawk, proceed-ed as planned. Three pilots completed theinstructor's conversion and one pilot wascleared for low-level displays. Reserve Forcepilots periodically assist in flying and groundinstruction. During the year three pilots weretransferred out of the system, two to 2Squadron and one to 60 Squadron, whilst onepilot resigned.Combat Capability. 2 Squadron has theCheetah C (single seat) and Cheetah D (dualseat) aircraft systems. 950 hours were allocatedto the Cheetah system, of which 50 hours wereearmarked for the Test Flying and Develop-ment Centre. Despite the non-availability ofhot-end spares for the engines, 2 Squadronflew 1 010 hours. Essential combat competen-cies, including the employment of laser-guidedbombs and basic night currencies, were main-tained. All the pilots involved also acquired orrenewed their competencies in aerial refu-elling. One pilot completed an instructionalduty tour with the Royal Air Force and anoth-er completed a Mirage Elkan M-5M Conver-sion Course with the Chilean Air Force.Reserve Force pilots fly on a regular basis withthe Squadron.Heavy Transport/Mission Support Capability.60 Squadron was funded for 192 force prepara-tion/training flying hours only. In accordancewith the approval of National Treasury, theSquadron therefore had to generate income tosustain the Boeing 707 capability. Funding was


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received in the form of flights against repay-ment from Chief of Joint Operations to theamount of 738 flying hours in support of exter-nal operations in Burundi, the DemocraticRepublic of the Congo, and the Sudan. For fivemonths of the year two aircraft were not avail-able. The first aircraft deeper level mainte-nance service was completed by the end ofMay 2004 whilst the second aircraft was with-drawn for its major service in October 2004.Despite the aircraft restrictions and the avail-ability of crews, 60 Squadron still managed togenerate 891 hours, primarily in the air trans-port role, of which 720 hours were forceemployment hours. Crews are now qualifiedin the air-refuelling role. 60 Squadron was con-tracted by SAAB to carry out air-refuelling tri-als with the Gripen in Sweden over the period16 March 2005 to 18 April 2005.Electronic Warfare Capability. The ElectronicWarfare Centre continued electronic warfareawareness training in the SA Air Force by pre-senting a Basic Electronic Warfare Course, aMission Planning Course for transport pilotsand an Electronic Warfare Systems Course. Italso continued the establishment and evalua-tion of essential self-protection capabilitieswithin the SA Air Force. Using the currentbuilding blocks on established Cheetah,Impala and C-47TP capabilities, the ElectronicWarfare Centre has begun preparing for theevaluation and acceptance testing of the elec-tronic warfare capabilities of the StrategicDefence Package Systems being phased intothe SA Air Force. The Electronic WarfareCentre took part in three exercises, namelyGOLDEN EAGLE, SEA EAGLE and ExerciseINDLOVU, where more advanced self-protec-tion scenarios were practised and counter-measures evaluated. The training of newElectronic Warfare Operators and ElectronicWarfare Technicians commenced in 2004,which culminated in five students receivingtheir wings in March 2005.

A i r T r a n s p o r t a n d M a r i t i m e C a p a b i l i t yThe Air Transport and Maritime capability is responsi-ble for providing and sustaining operationally readytransport and maritime aircraft crewed by appropriatelyqualified personnel.

The objective of 17 786 flying hours was sub-stantially achieved and the daily objectives of32 serviceable aircraft and 31 qualified crewswere achieved. During the year the DirectorateAir Transport and Maritime Systems focussedefforts on producing a balance between forceemployment output and the allocation of hours

for force preparation and training hours toenable aircrew to be optimally current in allcapabilities. All the Dakota C47-TP aircraftwere delivered by the project responsible forthe upgrade programme during the year; how-ever a lack of spares is hampering maritimeoperations. The integrity of the outer wing onthe Hercules C130B model fleet is being inves-tigated and the fleet was grounded as a pre-cautionary measure. This problem is not onlyaffecting the SA Air Force, but also operators ofsimilar aircraft world-wide. The transport air-craft achieved the following outputs:

Air Mobility for Diplomacy. The objective of 1512 hours for air mobility for diplomatic air-craft (Boeing Business Jet/Falcon 900/50)was achieved.Medium Heavy Transport. The mediumheavy transport aircraft (C130BZ) flew atotal of 1 207 hours during the year.Medium/Medium Light Transport. The medi-um light transport aircraft (C235/C212)flew a total of 1 361 hours during the year.Medium Range Maritime Patrol. 1 761 hourswere flown on medium range maritimepatrol aircraft (C47-TP).Light Transport/Reconnaissance. 4 081 hourswere flown on light transport aircraft(C208/C185).Command and Control. 1 037 hours wereflown on command and control transportaircraft (C550/BE30/BE20/PC12).Air Force Reserve Squadrons. 3 000 hourswere planned and achieved for nine AirForce Reserve Squadrons that fly variousaircraft types.

H e l i c o p t e r C a p a b i l i t yThe helicopter capability is required to provide and sus-tain operationally ready light utility helicopters, medi-um transport helicopters and combat support helicop-ters, crewed by appropriately qualified personnel.

The overall objectives of 10 689 flying hours, 49to 54 serviceable aircraft daily and 31 qualifiedaircrew daily were achieved. The year contin-ued the trend of the previous year with a defi-nite shift in operations from internal opera-tions to external operations in support ofGovernment initiatives. Operations took placein Madagascar, Burundi, the Ivory Coast andMozambique. All the deployments, with theexception of Burundi, were relatively short,which allowed limited capacity time to recoverin terms of personnel and logistics.Unfortunately the year was marred by the lossof one Oryx helicopter and two Alouette IIIhelicopters. Fortunately no lives were lost in

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these accidents.Medium Transport Helicopter Capability. Themedium transport helicopter capability con-sists of the Oryx helicopter fleet. The aircraftfleet flew 5 900 flying hours. Of the aircraft instorage, one was returned to service to replacethe aircraft destroyed in an accident in 2003.The remaining stored airframes are beingstripped of their major components to min-imise the impact of temporary preservationmethods. Although there was slow progresswith the project study for the in-service fleetupdate, the first phase should be initiated in2005. The delay has caused an increase in theoperating cost of the fleet. The Department ofEnvironmental Affairs and Tourism did notrenew the Antarctica support contract with theSA Air Force. During the year the operation inBurundi changed from an African Union oper-ation to a United Nations operation. Twowhite Oryx helicopters replaced the two nor-mal camouflage Oryx helicopters in September2004 in terms of the United Nations contract.These aircraft will be rotated with two otheraircraft every six to eight months.Light Utility Helicopter Capability. The lightutility helicopter capability consists of theAlouette III helicopter fleet and the BK 117 hel-icopter fleet. This aircraft fleet flew 2 900hours. Although the Alouette fleet was utilisedfairly extensively in anti-crime operations, itstill tends to be underutilised, as it cannot beoperated during poor weather conditions ordark nights. During November the twoAlouette III helicopters deployed in Burundireturned, as they did not form part of theUnited Nations force requirement. The delayin the delivery of the Augusta A109 has dis-rupted the phasing-out plan for the Alouette IIIfleet. Instead of the planned final withdrawalfrom operations in December 2004, indicationsare that this will be delayed until the middle of2005. This has had a major impact on the con-sumption of spares and a general increase inoperating costs, which is undermining the planof using the Alouette III fleet for basic helicop-ter training until 2009. The general availabilityof the BK 117 helicopter fleet has improved.The fleet flew 1 100 hours of the planned 1 200hours as the engine upgrade programme pre-vented full use of the available hours. Theupgrade programme was initiated to improvethe safety of the single engine performance andthe hot and high operational performance.Four aircraft have received the upgrade andthe remainder will be completed in the firsthalf of 2005.

Combat Support Helicopter Capability. Thecombat support helicopter capability consistsof the Rooivalk helicopter fleet, which flew 650hours during the year. The aircraft that wasdamaged in a flying accident while on a main-tenance flight in 2002 has been repaired. Theprogramme received only limited supportfunding during the year, resulting in lowerthan desired serviceability rates which in turnrestricted training. It is anticipated that theplanned increase in funding for componentsupport in the coming year will help addressthis problem.

C o m m a n d a n d C o n t r o l C a p a b i l i t yThe command and control capability area is responsiblefor supplying and maintaining operational ready com-mand and control elements in support of air operations.

The capability area comprises four sub-capabil-ity areas that provide the backbone for theground and in-flight command and controlsystem of the SA Air Force. These four capa-bility areas are Air Traffic Management, AirDefence Management, Information Technologyand Communications Management as well asGround Command and Control Management.The Directorate is also responsible for the SAAir Force Command and Control School, locat-ed at Air Force Base Hoedspruit.Air Traffic Management. Air Traffic Manage-ment was able to provide all the required AirTraffic Management services to reach the for-mulated output objectives. Air TrafficManagement personnel fully participated inExercise GOLDEN EAGLE as well as ExerciseRED LION with the SA Navy off the WestCoast. All the airspace requirements and re-quests were satisfied. Effective utilisation ofthree members of the Reserve Force ensuredthat the required force levels were maintained.The instrument landing system at Air ForceBase Makhado remained a problem through-out most of early 2004, but this system was suc-cessfully recommissioned by the South AfricanCivil Aviation Authority on 22 July 2004. Theinstrument landing system outer marker at AirForce Base Waterkloof and the non-directionalbeacon have both been decommissioned with atemporary distance measuring equipment pro-cedure having been developed for the instru-ment landing system. For the first time in 16years, the SA Air Force now has a mobile airtraffic control radar capability since the mobileairfield radar antenna system was operational-ly handed over from Project MACAW to 140Squadron. This system will be operationallydeployed during Exercise GOLDEN EAGLE at


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Air Force Base Makhado in 2005 and againduring Exercise NEW HORIZON later in thesame year. Representivity within the air trafficmanagement environment cannot be resolvedin the short term, but is still being activelyaddressed via the Military Skills Developmentprogramme.Air Defence Management. The mission controlmustering was able to re-validate a number ofthe more senior mission controllers, especiallyin the Pretoria area, as part of a plan to bringsome of the critical experience and knowledgeback into the mustering. The progress of thejunior mission controllers is being hamperedby the limited flying of the Impala aircraft fleetand this trend is expected to continue untilsuch time as the Hawk aircraft are integratedinto the SA Air Force. The lull in flying activi-ties is being effectively utilised to allow mem-bers to attend other training courses andopportunities. Representivity within the mis-sion control mustering is below requirementand is being actively addressed.Representivity within the radar reporting oper-ator mustering is good for the junior rankgroup and is being actively addressed at thewarrant officer level. During the year, airdefence management participated in the aircapability demonstration for the ExecutiveNational Security Programme, the electronicwarfare camp at Roodewal Bombing Range,Exercise GOLDEN EAGLE, Exercise NEWHORIZON and the Command Post Exercise.The serviceability of the tactical mobile radarsystems and the monopulse secondary surveil-lance radar systems was good, but problemsare still being experienced with the UMLINDIlong-range radar systems and the uninterrupt-ed power supply system at Mariepskop. Theseproblems are being actively addressed as amatter of urgency. Efforts are also in place toclear some of the backlog that exists in the mis-sion control doctrine environment, althoughthis is a very time-consuming process.Information Technology & CommunicationsManagement. The Mobile CommunicationsUnit successfully completed 51 deployments,one of which still remains permanentlydeployed in Burundi. The 1.8 Ghz project(migration from the cellphone band) is still inprocess. The target date for the completion ofthe project has been extended owing to techni-cal problems and late delivery of equipmentfrom the original equipment manufacturers.The new date for the completion of the projectis now towards the end of May 2005. A newtelephone management system to replace the

old Chatterman telephone management sys-tem was successfully implemented at all unitsand bases. Command ManagementInformation funded the new system. A per-sonnel forum was established betweenDirectorate Command and Control Systemsand Command Management InformationSystems to ensure good liaison and co-ordina-tion for SA Air Force Personnel withinCommand Management Information Systems.Representivity in the senior ranks hasimproved further with the appointment ofthree African females as lieutenant colonels,whilst two members were promoted to the sub-stantive rank of Major. One African male wasalso promoted to the rank of Warrant OfficerClass One.Ground Command and Control Management.Staffing requirements have been satisfactorilyaddressed for all available posts for commandand control post officers and command andcontrol post assistants. A 27% vacancy stillexists in the Sergeant rank group. Represen-tivity is showing improvement and continuesto be actively addressed. Command Post staffmembers participated in various multinationalexercises involving foreign forces and werepresent during the elections held inMozambique. Command Post personnel alsoparticipated in several internal force prepara-tion exercises and are also presently deployedin Burundi on a rotational basis. A CommandPost officer is also deployed in the DemocraticRepublic of the Congo on a 12-month rotation-al basis. The Deployment Support Unit contin-uously supported all deployments and long-distance hauling requirements. A total mileageof 324 309 km was travelled, during which2 515 tons of cargo were delivered without anymajor incident or loss of life. The funds allo-cated in FY2004/05 for the system recoveryprogramme have ensured that most of the out-put objectives were met. The GroundCommand and Control System as well as thecurrent intelligence system are maintainingtheir operational status. The incorporation ofremote switching between servers now ensuresthat all users are linked to the network at alltimes, which greatly enhances operationalavailability.Air Force Command and Control School. TheSA Air Force Command and Control Schoolsuccessfully completed 27 courses during theyear. A total of 214 learners were trained. Abreakdown of the learners trained is as follows:103 Africans, 83 whites, four Indians and 24coloured members. Gender distribution was

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50 females and 164 males. The relocation of theSA Air Force Command and Control School toAir Force Base Hoedspruit has created anatmosphere of change in which this institutionis now designed as a centre of learning excel-lence where learners are able to work andempower themselves with knowledge to themaximum extent. The Directorate Commandand Control has also grasped this opportunityto realign the SA Air Force Command andControl School to form the cornerstone for thecommand and control resource needs forVision 2012.

O p e r a t i o n a l S u p p o r t a n d I n t e l l i g e n c eC a p a b i l i t yThe Operational Support and Intelligence capability isresponsible for preparing, developing, providing andsupporting protection support, intelligence systems andcounter-intelligence support to the SA Air Force throughprotection squadrons, intelligence subsystems and AirForce unique intelligence training.

Intelligence Capability. All SA Air ForceIntelligence training is conducted at the JointAir Reconnaissance Intelligence Centre.Fifteen courses for 184 learners were plannedto take place during the year, but only 12courses were utilised. Three courses were can-celled owing to the unavailability of learners.A number of courses were also not fullyutilised as planned learners were occupiedwith other commitments. Of the 109 membersactually trained, 106 members completed theirtraining successfully. Intelligence Servicesmembers participated in six joint force prepa-ration exercises during the year. Some 30members participated in these exercises, sometaking part in more than one exercise.Seeker 1 Unmanned Aerial Vehicle. The finaldecision was taken to withdraw the Seeker OneSystem from service and to retain the capabili-ty to employ the equipment on a manned plat-form. The system is currently accommodatedon the premises of KENTRON until the dispos-al process is completed. The disposal processhas been started and all support equipment hasbeen checked. The compilation of the invento-ry list is 80% complete, with the pricing of com-ponents still in progress.Joint Reconnaissance and Intelligence Centre.The Joint Air Reconnaissance and IntelligenceCentre provided image support to its clients:about 92% of requested products were deliv-ered, with 8% in process. A total of 91% of theJoint Air Reconnaissance and IntelligenceCentre products had a positive impact on soci-ety. The Centre was awarded various awards

for excellence.Counter-intelligence. The Counter-intelligenceSubsection partially achieved its objectives.Apart from a shortage of Counter-intelligenceofficials in both the officer and non-commis-sioned officer rank levels and a general lack ofsecurity awareness in the SA Air Force, noother serious deviations were experienced. Itmust, however, be noted that the increasingnumber of incidents resulting from non-adher-ence to policy is a major cause of concern see-ing that it poses a great risk to security in theDOD.Protection Services. The protection squadronsat base level have the responsibility of protect-ing the resident force structure elements of theSA Air Force. 500 Squadron (SA Air Force TaskForce) successfully conducted specialised pro-tection operations in the fields of search andrescue, aircraft accidents, deployments and theprotection of assets in transit. The ProtectionServices also provided the SANDF and SA AirForce with a Very Important Person (VIP) pro-tection capability that successfully executed allVery Important Person tasks that were issued.These tasks included the protection of thePresident during his visit to the Ivory Coastand the protection of dignitaries in Burundi.An Operational Officers Forum has been estab-lished amongst protection squadrons in orderto provide strategic direction and to standard-ise operational procedures within their respec-tive environments. Persistent underfundinghas caused deterioration in equipment andinfrastructure over the past year; however,some new equipment in the form of dog trail-ers and computers was procured and issued toprotection squadrons. Protection squadronsexperienced personnel shortages due to exter-nal deployments and remustering of person-nel. This had a negative affect on the opera-tional capabilities of the squadrons as most ofthe standby element had to be cancelled at thesquadrons

B a s e S u p p o r t S y s t e m s C a p a b i l i t yThe Base Support Systems capability is responsible forthe provision of airbase infrastructure facilities tosquadrons and resident units on bases, including main-tenance of all relevant systems and personnel, in order tosupport flying operations.

Persistent underfunding over a number ofyears has created a gradual deterioration of AirForce Base facilities and operational infrastruc-ture in the SA Air Force. A significant man-agement intervention in 2003 and 2004 resultedin an increase in the budget allocation, which


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was necessary to address the gradual recoveryand sustainability of this capability area.Airfield Systems. Limited funds were allocat-ed to perform maintenance on the runwaysand taxiways of all South African Air Forcebases. Scheduled maintenance on the arrestorbarrier systems was hampered owing to budg-et constraints. The project to upgrade all therunway and taxiway lighting systems at AirForce Base Langebaanweg was completed atthe end of February 2005. The airfield lightingsystems at Air Force Base Ysterplaat, theSwartkop Heritage Site and Air Force BaseMakhado need urgent attention and upgradingin order not to affect operational readiness.The average status and serviceability of all air-field systems during the year was 80%, but thisfigure is expected to decrease substantially assome equipment approaches the end of itslifespan.Aviation Fuel Systems. Sufficient resourceswere available to maintain the refuellingequipment at Air Force Base Waterkloof, AirForce Base Langebaanweg and Air Force BaseOverberg where equipment was repaired tomeet the set standards and requirements. Therefuelling pipeline on the hard stand at theCentral Flying School Langebaanweg was alsorefurbished. The upgrading of the prototypeSAMIL 100 road fueltanker was successfullycompleted and the vehicle is currently beingevaluated and tested for suitability. The ser-viceability status of mobile refuelling equip-ment is 60% and for fixed installations it is 75%.The impact of the fuel that leaked from theunderground fuel system at Air Force BaseMakhado was fully assessed during the year.A rehabilitation programme will commence inFY2005/06 to restore the environment and pre-vent further contamination of undergroundwater supplies.Ground Power Units. With respect to thesesystems, resources were available to achievethe rebuilding of 13 static converters and 13static rectifiers to a mobile format, the rebuild-ing of two Solent power units, the upgradingof three air servicing unit converter rooms, thepartial rebuilding of the Vastrap Powerhouseas well as the servicing of 29 Circonian systemsat the Roodewal Power Station. Serviceabilitystatus versus actual Air Force base require-ments of power units is low due to the age ofthe equipment and the equipment not con-forming to Military Standard 704E (aircraftelectric power characteristics). Substantialresources will have to be channelled into thisarea in the near future.

Fire-fighting Service. Insufficient resourcesalso affect the maintenance and repair of fire-fighting vehicles, equipment and protectivegear for firefighters. The serviceability statusfor personal protective gear is 60% and for fire-fighting vehicle systems it is 75%.Motor Vehicle Systems. The vehicle fleet isaging and limited funds were expended torenew and maintain a small percentage of thefleet. The serviceability status of the fleet is60% for D-Vehicles, 40% for C-Vehicles and70% for B-Vehicles.Facilities and Operational Structure. Criticalmaintenance and upgrading for most of theoperational infrastructure is needed. The SAAir Force will not be able to restore facilitiesand operational infrastructure from within itsoperating budget. Without significant fundingbeing provided, a situation will soon bereached where flying operations will come to astandstill.

E d u c a t i o n , T r a i n i n g a n d D e v e l o p m e n tC a p a b i l i t yThis capability area is responsible for the education,training and development of SAAF personnel.

Basic Flying Training. All basic flying trainingas well as flying instructor training is done atthe Central Flying School Langebaanweg. Twopupil-pilot courses were completed during theyear and a total of 31 students qualified. Of the31 who qualified 16 were black and 15 werewhite. Two females were amongst those whoqualified. Two flying instructor courses werecompleted and seven pilots qualified as flyinginstructors. A total of 9 605 hours were flownby the Astra fleet.Navigational and Survival TrainingCapability. The primary responsibility of 80Air Navigation School is to train pupil naviga-tors and navigator instructors. In addition, theunit presents survival training and aircrew ori-entation courses for the SA Air Force. Fourpupil navigators qualified during the year aswell as two navigator instructors. Two sur-vival courses were presented as well as two air-crew orientation courses.Development Training Capability. 14 residen-tial programmes were presented at the SA AirForce College. Of the 284 members whoattended, 280 completed the programmes suc-cessfully. Other programmes presented were:

Five Distance Learning Programmes. Of the386 members who attended, 308 completedthe programmes successfully.Three Officers' Formative Programmes. All141 members who attended completed the

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programmes successfully.Three Senior Air Power Programmes. Ofthe 57 members who attended, 41 completedthe programmes successfully.Four Law of Armed Conflict Programmes(Planners and Executors of Air Operations)were scheduled for the year. Two pro-grammes were presented. All 18 memberswho attended completed the programmessuccessfully.

Logistical Non-technical Training Capability.At the Advanced Training Wing (68 AirSchool) 115 of the 137 (84%) planned coursestook place and 872 of the 1 063 (82%) learnersattended the courses presented by theAdvanced Training Wing at 68 Air School. Thelower than planned numbers was broughtabout by the restructuring of courses, problemswith the infrastructure, cancellation of coursesdue to lack of computer hardware and soft-ware as well as incomplete competency train-ing of instructors by contractors. Of the 872learners attending the courses, 865 (99%)passed. The reason why seven learners did notcomplete their courses was failure or with-drawal at own request.Fire Training. 15 planned courses took placeand 420 learners attended the courses present-ed by the South African National DefenceForce Fire Training School at the Air ForceGymnasium. Of the 420 learners attending thecourses, 407 (97%) passed. The 13 learners thatdid not complete the courses either failed orwithdrew at own request.Hospitality Training. All three planned cours-es took place and 92 learners attended thecourses presented at the Cookery School at theAir Force Gymnasium. 68 learners successful-ly completed the courses. The 24 learners whodid not complete the courses either failed onacademic grounds or withdrew at own requestor for medical reasons.Technical Training. Technical training wasconducted at 68 Air School and various airservicing units during the year. 78 learnerengineering students attended courses atCenturion College and various universities. 35courses were planned for apprentice training atCenturion College and 68 Air School, and 463learners attended these courses. Three courseswere planned for artisans to complete full-timetechnical tertiary training at various collegesand 49 artisans attended these learning oppor-tunities.Physical Training. The percentage participa-tion by SA Air Force members in fitness evalu-ation for members under the age of 35 years

was 71%, with a pass rate of 66%.Sport. The percentage participation in organ-ised sport was 53%. A total of 1 411 SA AirForce members competed in 15 South AfricanAir Force sports code championships whichwere successfully presented.SA Air Force Training Integrity Centre. The SAAir Force Training Integrity Centre was estab-lished to act as a single point of responsibilityfor training quality assurance in the SA AirForce. The budget for the SA Air ForceTraining Integrity Centre was incorporatedinto the budget of Directorate Education,Training and Development. The SA Air ForceTraining Integrity Centre made provision forthe contracting of a qualification and unit stan-dard specialist on behalf of the Air DefenceStandards Generating Body. The structuringand staffing of the Training Integrity Centrehas not yet been completed. The TrainingManagement Information Database is 92%populated. The Human Resources Databasewas developed and has been 27% loaded.Information captured in this database will sup-port the drafting of the SA Air Force'sWorkplace Skills Plan. The SchedulingDatabase has been developed and must beimplemented during 2005. The South AfricanQualifications Authority was approached toassist with the development of qualificationsand unit standards. It made funds available forthe development of three qualifications. TheSA Air Force Training Integrity Centre facilitat-ed the process and the qualifications are in anadvanced stage of development. The SA AirForce's Human Resource Development QualityAssurance Manual was approved in late 2004.The implementation plan was drawn up by theSA Air Force Training Integrity Centre and isawaiting approval.SA Air Force Training Council. The SA AirForce Training Council was established inaccordance with the SA Air Force TrainingPolicy. All funds for the administration of theCouncil were provided for within the budgetof the Directorate Education, Training andDevelopment.Air Defence Standards Generating Body. TheAir Defence Standards Generating Body wasregistered in 2004. The SA Air Force TrainingIntegrity Centre provided for the operatingbudget. The main function of the Air DefenceStandards Generating Body is to develop qual-ifications and unit standards. This has not yetbeen completed owing to a lack of resourcesand subject matter expertise to carry out thetasks at hand. Three qualifications were devel-


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oped by means of South African QualificationsAuthority funding. The lack of resources toimplement the South African QualificationsAuthority/National Qualification Frameworkin the South African Air Force is hamperingprogress.Advanced Training. The original plan was totrain 360 members at tertiary training institu-tions. 249 members enrolled for training. Ofthe 249 learners, 80 members were first-yearstudents.Skills Training. The original plan was to train3 000 members in various fields, but only 2 725members received training.Adult Basic Education and Training. The initi-ation of Adult Basic Education and Trainingwas long overdue when it was eventually initi-ated in the SA Air Force. The plan was to pro-vide training for 300 members and to assess1 000 members for recognition for prior learn-ing and placement. The output was fullyachieved. The Adult Basic Education and

Training Project in the SA Air Force was able toassess close to 90% (1 500) of all members whorequired Adult Basic Education and Training.

T e c h n i c a l S u p p o r t C a p a b i l i t yThis capability is responsible for establishing, maintain-ing and preparing optimised technical and tactical logis-tic support capabilities to provide support to systemgroups and to manage air service units.

The performance of this capability has a direct effect onthe flying capabilities of the SA Air Force and is there-fore also reflected in the performance of the flying capa-bility areas reported on in this report.

O T H E R O U T P U T S P R O D U C E DOutputs in Support of the Short-term ForceEmployment Plan. 13 079 hours were flown in 3 094missions in support of the Short-term ForceEmployment Plan. The distribution of the flying hoursbetween the various users is shown in Table 8.1.

T a b l e 8 . 1 O u t p u t s i n S u p p o r t o f t h e S h o r t - t e r m F o r c e E m p l o y m e n t P l a n

This centre is responsible for air transport for DOD clients

This centre is responsible for DOD clients such as Government depart-ments, and force employment require-ments from within the SANDF as wellas Joint Deployments/Exercises withforeign countries

This centre is responsible for the exe-cution of SA Air Force autonomoushumanitarian operations

These Headquarters are responsible for area protection, border control oper-ations and maritime patrol operationswithin their area of responsibility

Tasks by various aircraft in support of border control

Tasks by various aircraft in support of crime prevention in rural areas

Presidency, Parliament, Govern-ment departments and theSANDF

SANDF, Government depart-ments


SANDF, SA Police Service



Description

5 468 hours were flown in support ofthese operations


173 hours were flown in support of theseoperations


448 hours were flown in support of theseoperations



Joint Air Transport Centre

Joint Offensive Support Centre

Air Force Command Post Operations

Tactical Headquar-ters (In 9 provinces)

Operation INTEXO

Operation STIPPER

User

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O T H E R O U T P U T S I N S U P P O R T O F G O V E R N M E N T The SA Air Force contributed substantial manpower andother elements of air power to the contingents of theSANDF that are currently deployed in the DemocraticRepublic of the Congo, Burundi and the Sudan. Therewere 1 014 fixed wing flying hours and 593 rotary wingflying hours flown in direct support of external opera-tions in those countries.

The Government initiatives in the Ivory Coast were alsowell supported by the SA Air Force. There were 37 fixed

T a b l e 8 . 1 O u t p u t s i n S u p p o r t o f t h e S h o r t - t e r m F o r c e E m p l o y m e n t P l a n ( c o n t i n u e d )

Tasks by various aircraft

Tasks by C47TP aircraft

Tasks by various aircraft in support of Air Transport for Diplomacy

Tasks by various aircraft in support of Air Mobility for Important People

Tasks by various aircraft in support of other air operations such as Communi-cation flights, area familiarisation, logis-tic support, communication stationrepairs and training

Tasks in support of external joint opera-tions flown over and above thoseflown in support of the Short-termForce Employment Plan: OperationsFIBRE, MISTRAL & CORDITE(Burundi/Democratic Republic of theCongo/Sudan)

Operation NUTSHELL (Ivory Coast)

Operation LYNX II (Food Relief Mozambique)

Operation TRITON (Election Support Comoros)


SA Navy

DOD, Government departments




Description

170 flying hours

22 casualty evacua-tion of patients

22 medical evacuation of patients

Search and rescue - 10 people rescuedand 1 body recovered

Fire-fighting - 1 085 000 litres ofwater delivered

205 flying hours

444 vessels logged

41 infringements

2 high interest

1 951 flying hours

354 flights

2 747 passengers

1 227 flying hours

290 flights

3 741 passengers

3 222 flying hours

1 607 flying hours

47 flying hours

86 flying hours

27 flying hours


Operation HUMAN

Operation HARDER

Air mobility for Diplomacy

Air mobility for Important People

Other Air Operations

External Joint Operations

User

wing flying hours and 10 rotary wing flying hours flownin direct support of those initiatives. The SA Air Forceprovided Mozambique with support for the 2004 elec-tions. Various transport aircraft, three Oryx helicopters,and ground support personnel were deployed toMozambique to assist in the elections.

The funding of air mobility for diplomatic missions wasagain one of the highest priorities of the Air Force Boardin the past year. The Air Force committed itself to pro-viding for all the air transport requirements of thePresident and the mandated cabinet members. A total of

1 0 0 D E P A R T M E N T O F D E F E N C E A N N U A L R E P O R T F Y 2 0 0 4 - 2 0 0 5

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3 178 flying hours were flown in support of air mobilityfor diplomacy.

Various training opportunities were afforded to mem-bers from SADC countries during the past year. Threelearners from Lesotho completed the Officers’ FormativeCourse at the SA Air Force College in 2004. A memberof the Nigerian Defence Force completed the SA AirForce Junior Command and Staff Course in 2004. Anagreement has been reached with the Zimbabwean AirForce on the exchange of flying instructors. This will seeZimbabwean flying instructors giving basic flyinginstruction to SA Air Force pupil pilots at Central FlyingSchool Langebaanweg, and is expected to expand into

similar assistance provided at 85 Combat Flying Schoolwhen the first Hawk operational conversion course ispresented in April 2006.

The SA Air Force continued its participation in theStanding Aviation Committee which forms part of theDefence Subcommittee of the Inter-State Defence andSecurity Committee of SADC. The 8th annual confer-ence and work group was held in Dar es Salaam in May2004. The aim of the conference was to address aviationrelated matters of mutual interest to SADC membercountries. The main topic of discussion was regionalforce preparation exercises.

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D E P A R T M E N T O F D E F E N C E A N N U A L R E P O R T F Y 2 0 0 4 - 2 0 0 5 1 0 1



MARITIME DEFENCE


he year was not withoutchallenges, but the SANavy met these and wasable to perform well.Many successes wereachieved during the yearunder review. These

included the arrival of the last twopatrol corvettes in Simon's Town, thelaunching and naming of the first andthe keel-laying of the second subma-rine in Germany, progress with therenovation of facilities in Simon'sTown and the continuation of the suc-cessful Military Skills DevelopmentProgramme. The provisional SAQualifications Authority accreditationof all SA Navy training establishmentsand the registration of the MaritimeDefence Standards Generating Bodyalso deserve to be mentioned. The SANavy was found to be ready in termsof all required missions to provideoperational vessels as required by theChief of Joint Operations. Despite thecritical underfunding of the maritimeprogramme, the SA Navy met alloperational requirements. This canonly be ascribed to the enthusiasm,commitment and dedication of thepeople serving their country in the SANavy.

The SA Navy is responsible for the

provision of supported combat-readynaval forces at the required readinesslevel for meeting defence commitmentsand contingencies as ordered by theDOD Strategic Plan FY2004/05 and theShort-term Force Employment Require-ments. The objectives to be achieved inthis regard and the allocation of person-nel, matériel and budgetary resourcesrequired, were stipulated in the SANavy Strategic Business Plan forFY2004/05.

The SA Navy is confident of its abilityto strategise, plan, execute the plan,review the plan and, importantly, toreport both quarterly and annually onits performance against the plan. Thefocus of the FY2004/05 StrategicBusiness Plan was to

downsize the force structureto a level where it is bothaffordable and sustainable;dispose of redundant/obso-lete force structure elementsand their associated systemsto create capacity to accept thenew corvettes and submarinesinto service;prepare its human re-sourcesfor operating these new ves-sels;rejuvenate facilities; andprepare naval forces to meetordered defence commit-ments.

T


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With minor exceptions the SA Navy has performed inaccordance with its plan and has achieved its core objec-tives for the reporting period. What follows is a briefoverview of actual performance, highlights and signifi-cant achievements with specific reference to the focusareas highlighted above and in the SA Navy 2004/05Strategic Business Plan.

Planning and Budgeting. The ability to integrate theStrategic Defence Package acquired vessels posed themost important challenge faced by the SA Navy inFY2004/05. To address this challenge the SA Navyreduced the White Book within the HR budget by Rm15in order to fund shortages in the SA Navy operatingenvironment. The actual personnel strength of 6 980 forFY2003/04 is 88% of the authorised strength of 7 927.This indicates the SA Navy's commitment to reducingpersonnel costs. The SA Navy, however, finally over-spent an amount of Rm13,5 on its personnel budget,measured against the allocation at the end of the finan-cial year. This over-expenditure was covered corporate-ly in the Department. On the Financial ManagementSystem the SA Navy achieved a 99,7% expenditure of itsbudget. This percentage includes the over-expenditurein the Item 10 environment as well as Folio 02 (SpecialDefence Account) funds. This percentage is deemedexcellent if the disruption caused by the cancellation ofthe codification contract and the accompanying disrup-tion in the procurement environment are taken intoaccount. In the Folio 02 environment, a 73% paymentpercentage was achieved, but the unpaid portion ofRm19 was, however, fully committed and became afunded roll-over in the new financial year. These fundswere therefore not lost.

Policy Developments. In accordance with the NavyPlan, the strategic direction and force preparation direc-tion must be provided by the Navy Office and FleetCommand respectively. This is achieved, inter alia bythe provision of policy and guidelines. In addition, theNavy Office must co-ordinate the drafting of lower levelpolicies and must ensure that these policies are alignedwith DOD corporate policies. All the SA Navy Officedirectorates were continuously involved in providingpolicy advice, both formal and informal. A total of six-teen Naval Orders (Level 2 policies) were promulgatedand implemented during the reporting period. Thesewere mainly in the Maritime Warfare and MaritimePlans domains. A review was done of existing policiesand a total of 26 of these were found to have been suffi-ciently addressed in recently promulgated naval policiesand were therefore cancelled.

Strategic Defence Package. The most significant high-light of the past year was the delivery of the last twoType MEKO® A-200 (SA Navy) Patrol Corvette plat-forms, SAS SPIOENKOP and SAS MENDI.The SAS SPI-

OENKOP was commissioned in Hamburg on 15 March2004 and arrived in Simon's Town on 31 May 2004, onschedule. SAS MENDI was commissioned on 15 June2004 and arrived in Simon's Town on 17 September 2004.The installation of the combat suites has subsequentlybegun and is progressing well. The SA Navy has com-menced with acceptance and integration of the patrolcorvettes. The first vessel, SAS AMATOLA, will behanded over to the SA Navy in the latter half of 2005when it will commence extensive operational tests andevaluation. However, it will still be available for certaindeployments during the year, which will result in a sub-stantial improvement in the surface combat capability ofthe SA Navy. The fact that the contract for the acquisi-tion of four Super Lynx 300 maritime helicopters withassociated logistic support was placed very late (August2003) will impact negatively on, and cause delays inbringing the patrol corvettes to a state of full operationalreadiness. The Type 209 submarine production sched-ule is still meeting all the set deadlines. The first sub-marine, S101, was launched and named on 15 June 2004.The keel-laying of the third submarine, S103, took placeon 13 November 2004 and S102, which was two monthsahead of schedule, was launched in May 2005. S101 willbe handed over to the SA Navy in the latter part of 2005and will sail to the RSA at the beginning of 2006.

Force Structure. The SA Navy remains committed tomaintaining an affordable and sustainable force struc-ture. In preparation for the introduction of new forcestructure elements, the SA Navy reduced its geographicfootprint by scaling down and abolishing units andships. Although no additional force structure elementswere identified for closing during this reporting period,the SA Navy continues to finalise the administration ofthe closing down of a number of units that no longerexist on the approved establishment. Much-neededrejuvenation and upgrading of certain facilities inSimon's Town are progressing well and will fulfil therequirements set for the integration of the new vessels.These efforts will ensure that the SA Navy's force struc-ture provides sufficient flexibility to prepare forces,whilst being affordable within the present financial allo-cation.

Force Preparation. A challenge was experienced regard-ing the availability of qualified and experienced sea-going personnel; the SA Navy had to meet defence com-mitments and the various training requirements relatingto acquisition of new surface combatants and new sub-marines. This impacted directly on the SA Navy's com-bat-readiness state. The shortage of qualified and com-petent personnel, particularly those in critical posts, willcontinue to affect mission readiness adversely in theshort term. Plans are in place to rectify the problem. TheSA Navy's emphasis will be to ensure that the crew forthe first submarine are sufficiently trained to accept the

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vessel from the ship-builders and to sail it safely back tothe RSA early in 2006. The high occurence of defects inold ships undermined the reliability of the core capabil-ities of the SA Navy and the hours underutilised byforce preparation were due more to the unavailability ofvessels than inability to perform. Some of these defectswere due to equipment reaching the end of its lifespan,while logistical constraints with reference to the avail-ability of matériel, spares, funds and manpower alsohad a huge impact on force preparation.

Force Employment. The SA Navy met all objectivesregarding the provision of prepared and supportedforces as required by Chief of Joint Operations andended the reporting period well within the forceemployment hours allocated in six of the eight capabili-ties. This indicates that the force employment hoursrequired were potentially overestimated in most capa-bilities and need to be more accurately assessed. This isillustrated by the fact that, although 96% (5754.6 hours)of the planned 6002 hours were utilised for forceemployment, only 40% of these (2428.6 hours) wereutilised in line with the requirement set by Chief of JointOperations and thus contained in the SA Navy StrategicBusiness Plan. The SA Navy took part in several inter-national exercises and assisted in operations in variouscommercial ports by providing maritime protection tonominated passenger liners and United States govern-ment support and pre-positioning ships. In addition,the SA Navy was admitted to a consortium of nations inthe Pacific and Indian Oceans concerned mainly withthe protection of merchant ships and trade routes. Closeties with the French Navy in the Indian Ocean continuedwith annual exercises, aimed mainly at humanitarianrelief in emergencies. The specialist capabilities of vari-ous vessels and the management of these capabilitiesresulted in the SA Navy being able to undertake specif-ic tasks and it being available at specified readiness lev-els. The ongoing deployment of the yet-to-be fully cre-ated Operational Boat Squadron to Lake Tanganyika inBurundi, in support of peacekeeping initiatives, was ahighlight, with planning under way to deploy more per-sonnel and Harbour Patrol Boats to the area.

Naval Dockyard Simon's Town. The Minister ofDefence issued an instruction in September 2002 thatARMSCOR was to take over the operation and manage-ment of the Naval Dockyard Simon's Town. After alengthy process the Dockyard Transfer Agreement andthe associated Service Delivery Agreement, whichallows for the transfer of the Dockyard Simon's Town toARMSCOR, were signed on behalf of the DOD andARMSCOR in January 2005. This paved the way for theprocess of transfer to commence in the new financialyear.

Disposal. In July 2004 a comprehensive plan was made

involving all role players to facilitate the disposal of SASOUTENIQUA. This was to be a major undertaking withthe aim of disposing of the vessel as a going concern soas to realise the best possible revenue. ARMSCORBusiness (DMD) advertised and sold SAS OUTENIQUAto InfoTech, a subsidiary of Mertek Marine. The transferof ownership date was 1 February 2005. The new ownermaintained the vessel until her departure from Simon'sTown on 20 April 2005. The successful disposal of SASOUTENIQUA can be seen as one of the major achieve-ments of FY2004/05.

P E R F O R M A N C E R E P O R T :C O R E O B J E C T I V E SThe Maritime Programme consists of the following sub-programmes:

Maritime Direction Capability.Maritime Combat Capability.Maritime Logistic Capability.Maritime Training Capability.General Base Support Capability.

M a r i t i m e D i r e c t i o n C a p a b i l i t yThis sub-programme provides the strategic directionwithin the Maritime Defence Programme through for-mulation, promulgation and control of strategies, poli-cies, plans and advice, in order to prepare and providethe maritime capabilities required by the Chief of the SANational Defence Force (SANDF).

The core objective of the Strategic Direction capability isto provide strategic direction to the Maritime DefenceProgramme by providing maritime advice to the DODand it also oversees the allocation and management ofresources.

Criminality. The Naval Base Simon's TownCrime Prevention Plan is in place and therewas a gradual decrease in the number of crim-inal and disciplinary offences reported duringthe period under review.Risks as Identified in the FY2004/05 StrategicBusiness Plan. The risks were partiallyaddressed as follows:

The ability to conduct the required and contract-ed qualification trials, in order to accept theStrategic Defence Packages into service. Thisrisk was 50%, covered by additional fund-ing received from National Treasury.Replanning has continuously been done tomake further funds available. The SASOUTENIQUA, a combat support vessel wassold as a going concern and realisedRm49,6, which will be used to cover short-falls in funding for the required and con-tracted qualification trials. The ability to meet life cycle costs of the newequipment and the concomitant decrease in the


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ability to meet design baselines and operationalreadiness levels. In order to create capacityfor the new vessels' force structure, elementswere further reduced by inventory reduc-tion of obsolete systems and the reduction ofthe SA Navy's geographic footprint. The ability to establish/adapt the infrastructureneeded to support the new vessels. A facilitiesplan was developed and implemented andevery effort was made to ensure that the SANavy received a part of the SANDFFacilities Maintenance allocation. An addi-tional National Defence allocation helpedfund the required new facilities.Acquiring and developing the personnel neededto staff and support the new vessels. The down-scaling of capabilities has resulted in therelease of personnel to be trained for thenew vessels. Preparation of personnel foroperating both the patrol corvettes and thesubmarines was done through attendance ofvarious foreign courses. Retention of per-sonnel has been supported by incentiveschemes successfully introduced for specificmusterings.Maintaining conventional capabilities at theminimum indicated levels in order to meet theordered commitments contained in the Short-term Force Employment Plan. Operationalreadiness levels and output of ships werelowered to reduce costs, while they still metthe requirements contained in the ForceEmployment Plan.

Human Resource Overview. The humanresource process has directed its focus at themaintenance of an affordable and efficienthuman resources component of not more than6 700 personnel. The required personnelshould provide for the Military SkillsDevelopment System (second year), CoreService System, Senior Career System and theReserve Force. The attainment of an affordableand efficient workforce has been guided by thespecifications established within the DODregarding such elements as Service Systemratios, rank-age configurations, gender equityand representivity, as well as the guidelinescontained within the DOD Human ResourcesStrategy 2010. Specific initiatives wereembarked upon to ensure that optimal servicesystem ratios have been complied with, includ-ing rank-age disparities being managedthrough the judicious application of policy andthe selective renewal of contracts. Initiativeshave additionally been directed at representiv-ity and gender equity, with a specific focus onthe attainment of representivity targets within

the combat and technical domains, as well aswithin the middle management cadre. Specificfocus areas are amplified below.

Personnel Retention. An analysis of lossesexperienced during the period under reviewindicated that a loss of 167 Defence ActPersonnel occurred, with the greatest num-ber being due to resignations (128). Thegreatest losses occurred within the whitecategory (117), followed by the black catego-ry (55). As reported previously, the SANavy introduced incentive schemes withinboth the combat and the technical domains,in order to offset the attrition within thesemusterings. Since the initiation of theseschemes in 2000, 122 incentive contractshave been awarded to combat officers, and516 incentive contracts have been issuedwithin the technical domain. The correla-tion between the utilisation of this mecha-nism and the rate of attrition is still to be sta-tistically assessed, but the qualitative analy-sis thereof indicates a largely positive rela-tionship.Equity Strategy. During the period the SANavy has focused considerable attention onthe re-appreciation of the Equity Strategy, inresponse to a number of internal and exter-nal change imperatives. The re-appreciatedstrategy has given recognition to therequirement to adopt extraordinary and, attimes, unprecedented measures in order toattain a number of objectives within theshorter term. The strategy has thus madeprovision for the introduction of a numberof measures, which have included, inter alia,the formal waiving of time-in-rank in select-ed instances in order to foster representivityin scarce-skill musterings, and the formalinterrogation of the conventional assump-tions of what constitutes prerequisites formission-readiness, in order that suchassumptions do not inherently impedeaccelerated development. These measureshave been translated into career develop-ment plans, with numeric targets and mile-stones being indicated. A detailed submis-sion has been made to the Deputy Ministerof Defence in this regard, and the strategyhas been captured in a revised Equity Planfor FY2005/06.Training

Military Skills Development Training.The SA Navy recognised that the MilitarySkills Development programme, initiatedduring 2003, presented an opportunityfor the organisation to comply with the

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specifications established in the HumanResources Strategy 2010. A total of 650Military Skills Development trainees arerecruited annually in order to supplynew staff for both the Core CareerSystem and the Reserve Force.Foreign Training. Preparation of per-sonnel for the operating of the StrategicDefence Package vessels continued andvarious courses have been scheduled andattended in Germany. The memoran-dum of understanding between Indiaand South Africa was signed and thisallowed for SA Navy members to under-go intensive submarine training in India.The SA Navy was offered and acceptedopportunities on staff courses in Ghana,India, Tanzania and the United States.Civic Education. The SA Navy partici-pates as a stakeholder in the mandatedregulatory body pertaining to CivicEducation in the Department, namely theCivic Education Evaluation andAdvisory Board. This is the advisoryboard to the Minister of Defence. All SANavy Defence Act Personnel have to datereceived the required exposure to theCivic Education Curriculum, eitherthrough formal learning opportunities,or through training opportunities spe-cially convened for that purpose. Theprimary focus of the formal CivicEducation process is at the formativelevel with the curriculum being present-ed at SAS SALDANHA during theMilitary Skills Development learningopportunity, and at the Naval CollegeGordon's Bay during the MilitaryTraining for Officers Part 1 learning.South African Qualifications AuthorityAlignment. The process of aligning theSA Navy with South AfricanQualifications Authority requirementshas reached the point where the finalrequirements have become dependent onexternal stakeholders, as opposed to alack of internal capacity as was the casewhen the alignment process started. AllSA Navy training establishments havereceived provisional accreditation fromthe Diplomacy, Intelligence, Defence andTrade Education and Training Authority(DIDETA). A site visit by DIDETA inJanuary 2005 was used to identify theprocesses that needed to be defined insupport of the Quality ManagementSystem Policy developed for each unit.

The Maritime Defence StandardsGenerating Body was registered in 2004.A matrix that depicts all the competen-cies required by the SA Navy to ensureservice excellence has been compiled andis being verified by experts in varioussubjects in the SA Navy. This process ofstandards generation has unleashed anew era in the SA Navy with the endusers being forced to define their compe-tency criteria in terms of outcomes, sup-ported by assessment criteria. The com-pletion of the accreditation process nowdepends on a few factors outside the SANavy.

Force Preparation Direction Capability. TheForce Preparation Direction capability pro-vides force preparation direction to ensure thatthe force structure elements are ready forordered defence force missions and tasks in allrespects. All the objectives for FY2004/05 wereat least partially met with an emphasis on thedisposal of old and obsolete systems andequipment in the SA Navy, maintenance of theSA Navy fleet's current capabilities and prepa-ration and training for systems, matériel andpersonnel to operate the new patrol corvettesand submarines.

M a r i t i m e C o m b a t C a p a b i l i t yThe Maritime Combat capability core objective entailsthe provision of prepared and supported maritime com-bat capabilities in accordance with the approved DODforce design. A number of force preparation exerciseswere held during the reporting period.

Surface Combat Capability. The mission ofthe Surface Combat Capability is to prepareand provide supported surface combatants toconduct surface warfare operations. Thisincludes the conduct of offensive operations,surveillance and reconnaissance, combatsearch and rescue, replenishment at sea, sup-port of special operations and inshore patrols.With the patrol corvettes (FSGs) not yetequipped to fulfil their role in the fleet, mostrequirements were satisfied by the remainingstrike craft (fast attack craft (missile)). All theforce employment requirements from the Chiefof Joint Operations for this capability were met.Although the SA Navy has been able to meetthe requirements set by the Chief of JointOperations in the Short-term Force Employ-ment Plan, the combat-readiness objectiveswere substantially achieved, as vessels werenot always at the required operational readi-ness for specific tasks, registering an average of75% readiness for their primary role. A high-


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light was the arrival of the third patrol corvette,SAS SPIOENKOP, in Simon's Town on 31 May2004. Eight naval vessels participated in wel-coming her to her new home. The fourth patrolcorvette, SAS MENDI, arrived on 17 September2004, with all three other patrol corvettes inattendance. The patrol corvettes have sinceconducted various harbour acceptance, seaacceptance and project trials in the False Bayarea. SAS MENDI conducted OperationUMBONISO, an east coast flag showing tripand proceeded to Cape Town for the final partof the operation. A sail past salute was held forthe retiring Flag Officer Fleet in the False Bayarea on 12 November 2004.Submarine Warfare Capability. The subma-rine warfare capability revolves around sub-marines, prepared and supported, able to con-duct warfare operations. There is currently nosubmarine warfare capability, but training isunder way for the new type 209 submarines,due to be delivered in succession commencingFY2005/06. The leadership element of all threesubmarines has been identified and the nucleiof the first two crews are receiving intensivetraining both in the RSA and overseas. Combat Support and Sea-lift Capability. Thiscapability entails the preparation and provi-sion of a supported capability able to provideand conduct sealift and support to combat ves-sels. This includes sea-lift in support of Chiefof Joint Operations and the SA Army, surveil-lance and reconnaissance, search and rescue,replenishment, assistance operations andenforcing State authority. This capability hasbeen reduced to a replenishment capabilityonly with the decommissioning and subse-quent sale of SAS OUTENIQUA. SAS DRAK-ENSBERG has proved to be a valuable asset,but has very limited sea-lift capacity.Surveillance and search and rescue roles con-tinue to be exercised in accordance with forcepreparation plans. Despite an initial require-ment set by Chief of Joint Operations of 1 200force employment hours, no requirement forforce employment was received. This indicatesa substantial overestimation of time requiredfor force employment. Despite mechanicalproblems, SAS DRAKENSBERG was found tobe at the required combat-readiness level for atleast 80% of the time.Mine Warfare and Diving Support Capability.The mission of this capability is to provide pre-pared and supported mine countermeasurevessels to conduct mine countermeasure oper-ations and diving support. Included in thiscapability are reconnaissance, enforcement of

State authority and policing tasks. The degra-dation of the sonar capacity of the minehunters has caused these vessels to becomediving support vessels in addition to other sec-ondary roles that they are still capable ofundertaking. SAS KAPA, a CITY-Class mine-sweeper, continued to fulfil a role as a trainingvessel. Through various stages of OperationINTEXO (a border protection operation) recon-naissance, policing and the enforcing of Stateauthority objectives have been achieved. Aforce employment requirement of 61 hours wasfulfilled, leaving 87% of the hours planned forforce employment unused. The combat-readi-ness requirements were only partially achievedas the CITY-Class minesweepers were utilisedfor training and coastal patrol only, whileuncalibrated sonars on the mine hunters pre-vented these from being utilised in their pri-mary role.Hydrographic Services Capability. TheHydrographic Services capability aims atpreparing and providing a supported hydro-graphic survey vessel to conduct survey opera-tions for the RSA in terms of internationalobligations. Unfortunately the SAS PROTEAwas unable to complete her programme of sur-vey work due to a prolonged refit during theyear and serious mechanical problems encoun-tered after the refit. The latter problems pre-vented the ship from completing the surveywork she started in the Richard's Bay area thisyear. The prognosis for the ship completingher scheduled continental shelf survey in thenext financial year is good.Operational Diving Capability. TheOperational Diving capability prepares andprovides supported operational diving teamsfor diving operations. The Operational DivingTeam was involved in several force prepara-tion exercises and the objectives set wereachieved. Despite a continuing shortage ofdivers due to the number of divers leaving forbetter opportunities elsewhere, the team wasalways at the required combat-readiness level.The Operational Diving Team was called uponby Chief of Joint Operations to produce 4 526force employment hours, almost four times therequirement of 1 200 hours set in the StrategicBusiness Plan. Ongoing support to Marine andCoastal Management and the SA Police Servicewith the protection of marine resourcesoccurred throughout the year with teams con-tinually deployed. A mass force preparationexercise, involving all SA Navy divers washeld at SAS SALDANHA in December 2004,when the first ever deep dive (54 m) using heli-

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um/oxygen was successfully conducted by SANavy divers.Harbour Patrol and Operational BoatSquadron Capability. The mission of thiscapability is to prepare and provide supportedboats to conduct operations as required. TheOperational Boat Squadron achieved therequired combat-readiness levels at all timesand achieved 2 244,5 force preparation and 687force employment hours, the latter 637 morethan the 50 hours that were planned for. TheSA Navy assisted the Chief of Joint Operationswith the provision of two harbour patrol boatsand a strike craft for assistance to the SA PoliceService Task Force and 4 Special ForcesRegiment for the protection of the QueenElizabeth 2 during her visit to Cape Town. Theharbour patrol boats were also deployed insupport of the SA Police Service in numerousinstances involving bottom searches, recovery,security patrols and VIP escort duties. Threeharbour patrol boats and one 4,1m rigid hullinflatable boat, together with SA Navy mem-bers, were deployed in Burundi. Two extraharbour patrol boats and additional personnelare also being prepared for deployment toBurundi, bringing the total to 44 membersdeployed.Inshore Patrol Capability. The mission of theInshore Patrol capability is to prepare and pro-vide supported inshore patrol vessels to con-duct operations as required. Two of the vesselsare stationed in Simon's Town, with a third inDurban. The usage of planned force prepara-tion hours by the inshore patrol vessels waslimited owing mostly to ongoing defects,which resulted in an unsatisfactory combat-readiness state. However, the vessels haveproved to be very effective in anti-poachingpatrols, in addition to fulfilling roles in whichthey complemented the Fleet's activities. Theforce employment hours were overestimatedduring the Chief of Joint Operations planningprocess and this resulted in an achievement ofonly 168,5 (20%) of the planned 840 forceemployment hours.

M a r i t i m e L o g i s t i c C a p a b i l i t yThe core objective of the Maritime Logistic capability isto provide a maritime logistic support capability inorder to maintain and sustain the approved force designand comply with ordered operational commitments.

The Fleet Logistics Directorate achieved 94%expenditure of funds on Folio 01 as at 23 March2005. Folio 02 funds lagged behind with anexpenditure of 76% as at 23 March 2005. 75%of the budget was expended in support of the

Maritime Combat capability, in other words tokeep our ships at sea. Overall the objectivesset for FY2004/05 have been substantiallyachieved with sub-sub-programme capabilitiesrated at levels of achievement ranging between56 and 95%.

Dockyard Capability. The Naval DockyardService provides a vessel repair capability.The output in the first quarter of FY2004/05was only 63%, but management interven-tions led to steady improvements in outputeach quarter culminating in 84% for the finalquarter. The Naval Dockyard Serviceachieved 99.5% of planned expenditure,which indicates that the Naval DockyardService achieved everything required from abudgetary point of view. The DockyardTransfer Agreement, as well as the servicedelivery agreement, which allows for thetransfer of ownership and management ofthe Dockyard from the DOD to ARMSCOR,was signed by the two parties in January2005. This paved the way for the process oftransfer to commence in FY2005/06. Fleet Maintenance Capability. The FleetMaintenance Unit provides an operationalrepair capability. The output of the FleetMaintenance Unit was very low in the firstquarter of FY2004/05 (53%) but the secondand third quarters achieved 87% and 114%respectively. The overall level of outputwas 82,3% and the percentage of plannedexpenditure achieved was 99,6%. Publications Provision Capability. The NavalPublications Unit provides a publicationsprovisioning service. The unit successfullyprovided a photographic service to all SANavy units and was also responsible for theprovision of a warfare publications controlservice. The distribution of controlled unitsto all SA Navy units, as well as to other mil-itary units in the Western Cape also formspart of the unit's responsibility. The unitintroduced increased efficiency processesduring the reporting period and, despiteshortages in competent manpower and theneed of a replacement printer to produce seacharts as required by the Hydrographer,achieved a planned output of 94,3%. Thepercentage of planned expenditureachieved was 99,6%. Logistic Warehousing Capability. The NavalStores Depot Wingfield provides a logisticwarehousing and distribution capability,which includes aspects such as storage,maintenance, repair, inventory verification,disposal and issue of items. The focus dur-


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ing the reporting period was on the dispos-al of excess and obsolete stock, in line withthe SA Navy Strategic Business Plan. Themain problem experienced throughout theyear was inadequate perimeter security,which led to break-ins and loss of Stateequipment, which had a negative effect onthe output performance, which was 69% inthe first quarter rising to 80% in the finalquarter. The problem is being addressedand an improvement is expected in the nextfinancial year. The percentage of plannedexpenditure achieved was 97,8%.Armament Warehousing Capability. SA NavalArmament Depot provides an armamentwarehousing and distribution capability.The unit achieved an output of 70% in thefirst quarter, but this fell to 55%, 48% and53% in subsequent quarters. This wasattributed to the problems experiencedowing to the shortage of Public Service Actpersonnel staffing, with the roll-out of theOperation Support Information System atthe Depot and the necessity to carry out adetailed stocktaking for accounting records.The latter involved utilising all staff forstocktaking , which brought normal ware-house activities to a standstill. The audit atthe Depot has been successfully addressedand the ammunition accounting now meetsall Government and SANDF standards. Thepercentage of planned expenditure achievedwas 94,6%. Challenges. Several obstacles to the achieve-ment of objectives placed great stress on theLogistic organisation, including the follow-ing:

Codification. The most significant obsta-cle experienced was the lack of a codifica-tion service in the SA Navy. A signifi-cant portion of the planned budget thatwas not spent on the commodities origi-nally planned for was due to this prob-lem. Abatement plans have been institut-ed and an interim structure has beenapproved. Staffing of the interim codifi-cation structure has commenced. Thisinterim organisation will only provide40% of the required capability. To pre-vent future dramatic constraints on thesupply chain, the approval of the finalorganisation, as well as the staffing,should be afforded the highest priority atall levels of the SANDF.Lack of Staffing at Naval EngineeringService. The diminishing workforce atthe Naval Engineering Service is a prob-

lem. The lack of staffing and the inabilityto recruit personnel from outside con-tribute to its inability to meet all goals.The average age of personnel is in excessof 50 years.Specifications Capability. The year-endcash flow achieved was not as good asexpected. The inability to increase thespecification section through appoint-ments or casual labour contributed nega-tively towards the Fleet's ability to exe-cute planned expenditure successfully.Disposal of Submarines. A final deci-sion with regard to the disposal of thetwo remaining DAPHNE Class sub-marines is still pending. The disposal ofthese vessels has been on hold since July2004. A submission regarding the for-malisation of a Navy Museum capable ofhousing a submarine has been submittedto the Minister of Defence.Strike Craft Spares. The availability ofstrike craft electronic spare parts is fastbecoming a serious problem. Availabilityof weapons systems spares is already aproblem. This may result in these vesselsbeing placed at lower mission-readinesslevels.

M a r i t i m e T r a i n i n g C a p a b i l i t yThe mission of the Maritime Training capability is toensure that the maritime combat capability require-ments are met with regard to the provision of trainedfull-time and reserve personnel. This sub-programmeincludes a Formative Training Capability, a MilitaryFunctional and Warfare Training Capability, a TechnicalTraining Capability, a Staff Training Capability and anOverseas Training Capability.

The only area where there was some non-achievement was in the functional and warfaretraining environment, which could be ascribedto the cancellation of learning opportunitiesdue to a lack of nominations as a result of mem-bers deployed to Germany for patrol corvetteand submarine training.Formative Training Capability. The FormativeTraining Capability is divided into training forratings (including the Military SkillsDevelopment learners) that takes place at theNaval Gymnasium, SAS SALDANHA, and thetraining of Naval officers that takes place at theSA Naval College, Gordon's Bay. See Table 9.1for more details.SA Naval College Gordon's Bay. The coreobjective for FY2004/05 was to optimise andpresent formative Education, Training andDevelopment for 80 officers. The college

c h a p t e r 9


learners, 50 were black, 15 white, fourcoloured and one Asian. In addition to the 70learners, the SA Naval College trained fourofficers who entered the SA Navy from anoth-er Service.Naval Gymnasium SAS SALDANHA. Table9.2 indicates the objectives set and the outputsachieved.

received 77 learners, including 7 fromNamibia. Of the 70 learners from the SA Navy,57 were male and 13 female. The trainingobjectives were achieved with a total of 74learners from South Africa and Namibia foundcompetent, two learners not yet competent andone learner who withdrew from the course. Interms of the demographics of the South African

T a b l e 9 . 1 F o r m a t i v e T r a i n i n g : P l a n n e d v s A c h i e v e d O u t p u t

Still in process17 completed courseMilitary Skills Development learners attended

621 learners completed the course

153 learners completed the course

Staff Methods Course: 119 learners found competent

Military Training for Ratings 3: 55 learners found competent

Reserves: 8 learners found competent

Outputs Achieved

Only one learningopportunity wasscheduled

666 reported, 45 discharged

Group included:19 DPW members19 SAMHS learners25 Namibians

More learners accept-ed than planned for

More learners accept-ed than planned forthe courses

Reasons for Deviationand Comments

Assessment CentresLeadership Programme: 96English Remedial Training

Military Training for Ratings Part 1: 763Military Training for Ratings 1: Reserves 0

Military Training for Ratings 2: 3 learning oppor-tunities provided for 48 learners on each course(Total: 144)Military Training for Ratings 2: Reserves 0

Staff Methods Course: 3 learning opportunities provided for 24 learners (Total: 72)Military Training for Ratings 3: 2 learning oppor-tunities provided for 24 learners on each course(Total: 48) Military Training for Ratings 3: 1 learning oppor-tunity provided for 16 learners

Planned Output FY04/05

T a b l e 9 . 2 M i l i t a r y S k i l l s D e v e l o p m e n t T r a i n i n g : O u t p u t A c h i e v e d

Total intake of 631 reported on 6 January 2005, comprising the following demographic composition:

Black: 439 Asian: 10 Coloured: 79 White: 103 Public Works Department: 17Total males: 416Total females: 215

Intake comprised 543 members, who had to undergo a branch selection board process in November 2004. These members have been distributed as follows:

Combat: 232Support: 167Technical: 43Officers: 57SAS SALDANHA Junior Leaders: 44

285 members were awarded Core Service System contracts77 members entered the Reserve Force component

Description

Military Skills Development: 2005 intake



Element


c h a p t e r 9

Military Functional and Warfare Training Capability. Table 9.3 indicates the planned and achieved outputsfor the Military Functional and Warfare Training capability.

T a b l e 9 . 2 M i l i t a r y S k i l l s D e v e l o p m e n t T r a i n i n g : O u t p u t A c h i e v e d ( c o n t i n u e d )

Current intake of 28, comprising all black:18 males10 females

62 learners graduated in December 2004. These members have commenced with Military Skills Development training at SAS SALDANHA, primarily as aspi-rant Engineers and Combat Officers

Description

Department of Defence Youth Foundation 2005

Department of Defence Youth Foundation 2004

Element

T a b l e 9 . 3 M i l i t a r y F u n c t i o n a l a n d W a r f a r e T r a i n i n g : P l a n n e d v s A c h i e v e d O u t p u t

2 700

60

400

1 450

800

2 000

92

92

92

PlannedOutput

Planned output was based on the scheduled learning opportu-nities running with maximum numbers. These unrealistic planningfigures led to an overestimation of requirements. In practice learn-ing opportunities were cancelled owing to lack of nominations orno requirement set by the Fleet

Included use of simulator and radar simulation at the Maritime Warfare Training Centre for learning opportunities in the Fleet

Fleet training was only conducted for general submarine knowledge. Once the requirement for the Type 209 submarinesis appreciated new plans will be drawn up

Includes nuclear, biological and chemical damage control simulators and radar simulation

There was only one facilitator available to conduct this training, therefore the number of learning opportunities was limited

Bulk of the training done was for Military Skills Development and Navy College learners only (new entrants to the SA Navy)

Only one operational exercise was conducted to prepare for operational capability. The planned output was not achievedowing to staff shortages/capacity and staff being largely involvedwith domestic diving requests/ requirements from the Fleet andChief Joint Operations. The result was that only ad hoc exerciseswere facilitated. The only operational exercise of real value con-ducted was DIVE EX 04

Included only the refresher learning opportunities. Learning opportunities were cancelled due to lack of nominations

No combat search and rescue training was presented

Reasons for Deviation and Comments

Conduct Functional Training for Officers and Ratings

Rendering a War Gaming System House Service

Conduct Submarine Escape Training

Conduct Continuation Training for the Fleet

Conduct Computer Software Application Training

Conduct Nuclear, Biological and Chemical DamageControl training

Prepare Operational Diving Team to conduct DivingTraining

Conduct Underwater Sabotage Device Disposal

Conduct Combat Search and Rescue

Objective

876

138

10

1117

193

712

11

11

0

OutputAchieved

c h a p t e r 9


T a b l e 9 . 4 T e c h n i c a l T r a i n i n g : P l a n n e d v s A c h i e v e d O u t p u t

1st year studentsMechanical 40Electrical 40

2nd year studentsMechanical 40Electrical 40

3rd year studentsMechanical 40Electrical 40

Engine Room Attendants: 100

TOTAL 340

1st year students 132nd year students 123rd year students 134th year students 12

TOTAL 50

Provide specified media training aids as required

Evaluate facilitators

Curricula to meet end user specifications in acost- effective manner

Learner Education, Training and Develop-ment material, facilities,and equipment to meetstatutory requirements.

Provision of media train-ing aids to facilitators

Regular evaluation of internal facilitators

Planned Output

Owing to the number of Military Skills Development learners the Engine RoomAttendant learning opportunity has beenchanged into Technical Platform GenericLearners

Some 467 Military Skills Development learners undertook the TechnicalPlatform Generic Learners, hencegreater output than planned

Owing to the large number of Military Skills Development learners, the numberfor tertiary studies has been much higherthan that planned for

Many developments are taking place with regard to research, Development andEvaluation

Services are still in process


To conduct Apprentice Training for uniformed SANavy personnel

To administer full-time stu-dents seconded to SASWINGFIELD undergoingspecified higher educationopportunities at civilian insti-tutions

To provide Management, Media Centre and Educa-tional and Training QualityAssurance (Research andDevelopment andEvaluation) services

To provide Management, Media Centre andEducation, Training andDevelopment QualityAssurance Services

Objective

691 learners

92 learners including 21 N4 &N6 learners

Research and Development still inprocess

Provision of media training aids to facili-tatorsRegular evaluation of internal facilitators

Output Achieved

Technical Training Capability. Table 9.4 gives the outputs achieved for the Technical Trainingcapability.

T a b l e 9 . 5 S t a f f T r a i n i n g : P l a n n e d v s A c h i e v e d O u t p u t

Command OrientationSeminar: 18

Staff Methods Course: 18

Junior Staff and Warfare course Module 1: 48

Planned Output

No requirement set for learning opportunity

14 chaplains are attending the course

4 members withdrawn from course due to non-compliance with regulations


To provide a staff training capability

Objective

0

14 learners still busy with the learn-ing opportunity

37

Output Achieved

Staff Training Capability. Table 9.5 gives the planned and achieved outputs for the StaffTraining capability.


c h a p t e r 9

Ta b l e 9 . 5 S t a f f T r a i n i n g : P l a n n e d v s A c h i e v e d O u t p u t ( c o n t i n u e d )

Junior Staff and Warfare Course Module 2: 48

Stellenbosch Manage-ment Progamme: 18

Planned Output

Members still waiting to do rewrites

No further requirement for learning opportu-nity to be scheduled as Stellenbosch Man-agement Programme now responsibility ofJoint Training and courses take place atTshwane University of Technology


To provide a staff training capability (continued)

Objective

23

0

Output Achieved

T a b l e 9 . 6 F o r e i g n L e a r n i n g O p p o r t u n i t i e s U t i l i s e d

5 Officers

5 Officers

2 Officers

1 Officer

7 Officers, Ratings and Public Service Act Personnel

147 Officers and Ratings

CNS and 3 Officers

Output Achieved

Australia, Canada, United Kingdom

China, Ghana, India, Tanzania and United States of America

United States of America

France

Germany

Germany, India

Germany

Comment

Developmental Courses

Functional Courses

Exchange Programmes

Attachments

Training related to Strategic Defence Packages (SDPs)

SDP-related Training/Rotation

Staff Visits

Learning Opportunity

Overseas Training Capability. The SA Navy made good use of the available foreign learning opportunitiesand a total of 24 naval members went abroad to attend a variety of warfare and staff courses. A further 147members attended foreign project related learning opportunities.

Maritime Reserves Capability. The objectiveof the Maritime Reserve capability is to providecombat-ready Reserve Forces. The SA NavalReserve is an integral part of the SA Navy andis able to supply manpower to the SA Navywhen and where required. Substantialprogress was made in FY2004/05 with thetransformation of the Navy's reserve compo-nent in terms of the TransformationGuidelines. All seven Reserve units weredecommissioned. The following outputs wereachieved during FY2004/05:

A total of 38 310 man-days were utilisedduring FY2004/05 against a figure of 30 000man-days planned, in full achievement ofthe objective. This figure is made up of per-sonnel made available to the Fleet by thenow decommissioned Reserve units and theReserve Management Centre. In addition,101 reservists attended training coursesagainst a planned course attendance of 150reservists.With the decommissioning of the Reserveunits, an embryo Reserve ManagementCentre came into being. This establishment

is responsible for the administration andcareer management of the entire NavalReserve. The Reserve Management Centreis, however, not yet functioning as intended,owing to delays in the staffing process.The present Naval Reserves have integratedinto the existing force structure and forcestructure elements, in posts created for thispurpose.Regional Reserve post structure elementsstill have to be established in order to facili-tate regional liaison.A new Naval Reserve Policy will be gener-ated in order to enable the management,training and maintenance of the NavalReserves.

G e n e r a l B a s e S u p p o r t C a p a b i l i t yThe Naval Base Simon's Town provides a general basesupport capability in support of the Fleet, ships, shoreunits and other identified clients in order to maintainand sustain the approved force design and force struc-ture.

Base Management. The division achieved allstated objectives during FY2004/05. Formal

c h a p t e r 9


measurement systems will be investigated andimplemented with Directorate Fleet QualityAssurance assistance in the next financial year.The majority of clients have ServiceAgreements in place and manual costing isbeing completed to enable further progress.The Facilities Section performed well with anumber of projects completed and others pro-gressing very well. A notable highlight wasthe duplex housing for Junior Ratings that wascompleted and handed over to Naval BaseSimon's Town in February 2005. All the unitswere occupied as from 25 March 2005. Variousfacility developments, including fencing,painting, renovations, and development relat-ing to the projects are planned for the nextfinancial year. Escalation and variation ordershave increased facility development costs and,as a result, the budgeting for facility develop-ment has been inaccurate and will be closelymonitored in the coming financial year.Executive

Discipline. The Discipline Section of NavalBase Simon's Town has met all stated objec-tives, although delays in the military legalsystem caused a shortfall in the final resolu-tion of offences.Catering. Despite many obstacles includingpersonnel shortages, the Naval Base Simon'sTown Catering Services Section has man-aged to meet its clients' needs, servicing alarge number of functions. Highlightsincluded farewell functions for the Chief ofthe Navy, Flag Officer Fleet and Flag OfficerCommanding Naval Base Simon's Town aswell as the Navy Ball.Accommodation. Naval Base Simon's Town'smesses were mostly fully occupied duringFY2004/05.Sport and Recreation. The objectives of theSport and Recreation Section were fullyachieved in FY2004/05 and an acceptablenumber of opportunities for physical train-ing and sport were provided to members ofthe SA Navy. A number of sporting activi-ties took place during FY2004/05, highlightsof which were the 46 km Friendly ForcesRoute March, a 7-a-side rugby tournamentand swimming lessons and physical train-ing sessions for ships crews.Ceremonial. Naval Base Simon's Town par-ticipated in a vast array of ceremonial activ-ities, including change of commandparades, the annual opening of Parliamentand Chief of the Navy Farewell. Operations. The Operations Room success-fully executed various tasks throughout

FY2004/05, which included refuelling ofships, loading and unloading ammunitionfrom ships, emergency docking of vessels,range clearance at sea and emergencyresponses.Protection Force. A Protection Service thatincluded gate and perimeter guard duties atall SA Navy facilities, including SA NavalArmament Depot was provided. The suc-cess of the Protection Service was indicatedby a reduction in the theft of State property.Fire and Rescue Service. The Fire and RescueService met the stated objectives in theBusiness Plan with productivity and servicedelivery to Naval Base Simon's Town andclients increasing significantly. The FireDepartment contributed its service to that ofthe civic authorities in the prevention andcombating of fires that threatened militarybuildings and private residential dwellingsin the Simon's Town area.Logistics Division. The division performedwell overall although there were some prob-lems that prevented the achievement of allstated objectives. Highlights and obstaclesto the achievement of objectives were as fol-lows:

Base Supply Organisation. DuringFY2004/05 the DOD Log SupportFormation approved a large number ofDisposal Boards and a considerable num-ber of items were sent to the SANDFAuction Centre for disposal. On averageapproximately 500 items per day werereceipted from the Naval Stores DepotWingfield, with Naval Base Simon'sTown delivering approximately 550items per day to their clients. Demandsplaced on Naval Base Simon's Townwere 97% satisfied.Transport Services. All planned newvehicles for FY2004/05 were deliveredand distributed to end-users as sched-uled. Vehicle numbers in the unit havebeen reduced and the General SupportBase Satellite has set up a pool to providefor the communal needs of the area. TheCape Town Airport/Station Taxi Servicetransported some 260 officers, 540 war-rant officers and senior ratings, 400 juniorratings and 650 civilians.Internal Inspections. The Stocktake andVerification Section achieved the success-ful closure and/or decommissioning ofthree Reserve Force units, completed thepreliminary closing down audits ofNaval Base Durban (closing unit) as well


c h a p t e r 9

as that of Naval Stores Depot Durban(unit) and successfully completed a 100%stock taking of the Naval Base Simon'sTown Detail Clothing Store in Simon'sTown.Detail Clothing Store. The DetailClothing Store has achieved all objectivesaccording to the FY2004/05 BusinessPlan.Distribution Accounts. Distributionaccount musters for the first half of theNaval Base Simon's Town two-year stocktaking cycle proceeded ahead of scheduledespite ongoing problems in resolvingthe remnants of transformation furnitureremovals.Post Structure. The proposed newLogistics Division post structure has beenupdated to include a new ProcurementSection. The envisaged starting date isMay 2005, subject to approval byDirectorate Integrated ManagementServices.Disposal Store. Recent statistics haveshown that the processing of unservice-able, redundant and obsolete stores in thedisposal store is too slow. This problemcan be ascribed to a shortage of personnelto carry out the core functions.Remote Unit Support. In addition to theprocurement aspect, the division has oflate been made responsible for remoteunit accounting and support (SAS SAL-DANHA, Naval Station Durban, SASIMMORTELLE and soon Naval StationPort Elizabeth), increasing the load on allsections of the Division.

Naval Harbour Master. All outputs to supplyan effective one-stop harbour service and aSailing Centre, as required by the Fleet, havebeen achieved with the Fuel Farm now fullyoperational. The completion of the improve-ments to the Port Control Office will greatlyimprove the supply of a Port Control service.While all harbour craft were operated effec-tively, crew shortages remained the majorshortcoming in the efficient utilisation of allharbour craft. The tugs administered by theNaval Harbour Master were kept very busy.This was attributed to the arrival of the finaltwo patrol corvettes and the busy programmeof sea trials the patrol corvettes completed dur-ing the year. Continuous operation of the har-bour craft, harbour patrol boats and yachtsindicates that the planned maintenance objec-tives have been met. Furthermore the "downtime" of these craft was significantly reduced in

FY2004/05. Although the tug UMALUSI expe-rienced more breakdowns than normal andwas on the syncrolift for a large portion of theyear, the tugs DE MIST and DE NEYS havebeen operating well throughout the period.Navy Band. The Navy Band has had a numberof successes in the last financial year, includinga very successful trip to participate in theEdinburgh Tattoo in August 2004. During thisvisit they conducted a total of 35 performances.The band completed the Democracy 10 RoadShow, which saw performances in each of thenine provinces during 2004. All objectives asstated in the Band's Business Plan wereachieved during FY2004/05.Public Relations. The Public Relations Sectionhas had a busy year and has achieved all objec-tives as stated in the Business Plan, withinvolvement in the arrival and welcoming ofthe patrol corvettes, other media events, for-eign and local VIP visits, Navy Band concerts,the annual Navy Festival and participation innational shows and festivals.Naval Station Durban. Naval Station Durbanhas achieved the objectives as stated in theFY2004/05 Business Plan. However factorsthat hampered the full achievement of somestated objectives were mostly related to servic-es that had to be supplied by the GeneralSupport Base Durban. These include financialaccounting and medical services and mainte-nance and repair to facilities. The CombinedMess was completed with ongoing repairs, andis operating despite a post structure that hasnot yet been approved nor members staffed.The closure of the Financial AccountingSatellite Centre is still a logistical problem withmembers having to travel to Army SupportBase Durban for the drawing and reconcilia-tion of S&T and petty cash. The unit isrequired to provide transport and drivers onmany of these occasions (with escorts); man-hours lost are a great concern.

O T H E R O U T P U T S I N S U P P O R T O F G O V E R N M E N T

Support to the International Relations, Peaceand Security Cluster.

The activities of the Standing MaritimeCommittee of the Inter-state Defence andSecurity Committee Operations Sub-Sub-Committee continued over the period underreview. The following was achieved duringthe reporting period:

The South African Navy provided thepermanent Secretariat for the StandingMaritime Committee, whose actions

c h a p t e r 9


ensured pro-active completion of staffwork, as well as continuity of effort.The production and distribution of aNavy Training Plan.The appointment at the Navy Office, ofPlan Co-ordinators for MultinationalForce Preparation and Naval Training.These were, respectively, DirectorMaritime Warfare and Director NavyPersonnel.The completion and distribution of aNaval Co-ordination and Guidance forShipping publication.Conducting the first Naval Co-ordinationand Guidance for Shipping Course overthe period 7-18 February 2005. Thecourse was conducted at Flag OfficerFleet facilities at Silvermine, and wasattended by representatives from theDemocratic Republic of the Congo,Malawi, Namibia, Tanzania andZimbabwe. The objectives of the coursewere effectively met.Editing and translation of the Searchand Rescue Plan produced by the An-golan Navy. The task is well advanced.Upon completion, it will be forwarded tothe relevant authorities at the NationalDepartment of Transport, and will be thestatutory organ for the co-ordination ofsearch and rescue in South Africa. It willbe available for comment.Attendance of the Standing MaritimeCommittee meeting in Windhoek,Namibia, in August 2004. The Chief of

the SA Navy took over the chairmanshipof the Standing Maritime Committee forthe next period - August 2004 to August2005.

Assistance to African Countries.As a major role-player within the SADC,South Africa identified the need to assistMozambique with a maritime capability,to enable that country to patrol its waterseffectively in order to curb the ongoingpoaching of marine resources that affectsthe whole Southern African region. Twoharbour patrol boats from the SA Navywere identified as suitable for donationto the Mozambican Navy. The Chief ofthe SANDF, General S. Nyanda, handedover two harbour patrol boats to aMozambican delegation in Simon's Townon 3 September 2004. Witnessing thissymbolic handing over ceremony wasthe Consul of the Republic ofMozambique, the Ambassador of theRepublic of France to South Africa, theChief of the SA Navy and various otherdignitaries. Thanks to the generosity ofthe French Government, the two boatswere refurbished with new navigationalequipment and propulsion systems.Three harbour patrol boats, one 4.1 rigidhull inflatable boat and an average of 28members of the SA Navy were continu-ously deployed to Burundi during thereporting period. The second rotation ofthe maritime contingent took place inAugust 2004 when the United Nations

T a b l e 9 . 7 T r a i n i n g A f f o r d e d t o F o r e i g n L e a r n e r s

Namibia

Namibia

Namibia

Nigeria

Ghana

Nigeria

Namibia

Mozambique

Nigeria

Nigeria

24 January - 16 April 2004

10 May - 12 December 2004

13 April - 30 June 2004

19 July - 10 December 2004

5 July - 10 December 2004

19 July-6 August 2004

4 - 29 October 2004

28 February - 18 March 2005

28 February - 18 March 2005

7 - 18 March 2005

Learner Countryof Origin

Dates

Military Training for Ratings Part 1

Military Training for Officers Part 1

Junior Staff and Warfare Course

Junior Staff and Warfare Course

Combat Officers Qualifying 1

Flight Deck Controller Course

Survey Recorder Course

Nuclear, Biological and Chemical Damage Control Part 1 Course



TOTAL

Course Offered

25

7

2

1

6

1

2

1

1

3

49

Number ofLearners


c h a p t e r 9

Ta b l e 9 . 8 F o r e i g n D e p l o y m e n t o f S A N a v y P e r s o n n e l a n d E q u i p m e n t

Operational Boat Squadron Element

Maritime Staff Officers

Senior Military Liaison Officer (Kampala)

Military Legal Officer for Special Investigation

Chief Capital Liaison Officer (Addis Ababa)

Utilisation of Forces Deployed

Burundi (ONUB)

Democratic Republic of the Congo (Operation MISTRAL)

Ethiopia/Eritrea (Operation ESPRESSO)

TOTAL

Country

28

1

1

1

1

32

Average Number of MembersDeployed FY04/05

took over the operation. The third rota-tion of the maritime contingent, tookplace in February 2005.In January 2005 the Operational DivingTeam was deployed to survey a sunkenArmoured Personnel Carrier in LakeKivu in the Democratic Republic of theCongo. A follow-up deployment wasexpected at the beginning of FY2005/06. Training is afforded to learners fromAfrica on a continuous basis. During thereporting period, 68 learning opportuni-ties were made available to learners fromAfrica, of which 49 were taken up. Thepast financial year saw 27 Namibians,five Nigerians, one Mozambican and sixGhanaians trained at various levels bythe SA Navy. See Table 9.7 for details.

Establishment of Peace, Security and Stability.Forces have been provided in rotation insupport of efforts to resolve conflict in theregion. Three harbour patrol boats and one4.1 rigid hull inflatable boat, together withSA Naval members, were deployed inBurundi. See Table 9.8 for details.Complying with International Law Imperatives.The Hydrographic Survey Vessel, SAS PRO-TEA, was programmed to carry out surveywork for purposes of geo-mapping the con-tinental shelf to enable the RSA to instituteterritorial claims before 2009 in compliancewith international law imperatives.

Support to the Justice, Crime Prevention andSecurity Cluster

Operation NEPTUNE. Throughout most ofFY2004/05 the SA Navy deployed a team of23 members in the Overberg area to assistthe Marine and Coastal ManagementService in policing the 210 km coastline fromHangklip to Arniston against organisedpoaching of abalone (perlemoen) and other

inshore marine resources. Naval personnelconsisted of an operations officer, protectionforce, two harbour patrol boats togetherwith crew, SA Navy dogs and handlers andan operational diving team. At times aninshore patrol vessel assisted them. A num-ber of arrests were made throughout theperiod and a considerable amount ofabalone was confiscated.Operation INTEXO. Operation INTEXO, anongoing operation throughout the financialyear conducted by Chief of Joint Operationswith the assistance of the Department ofEnvironment and Tourism's Marine andCoastal Management Service, is aimed atcarrying out patrols on the East and WestCoast, especially the East Coast up toMozambique with the object of combatingorganised poaching of fish stocks. Oper-ation INTEXO included a requirement forWest Coast patrols by a surface combatant aswell as the provision of two harbour patrolboats, an inshore patrol vessel and the oper-ational diving team.

Support to the Governance and Administra-tion Cluster

The National Department of Transport. Be-tween 2001 and 2003, the Subdivision Mari-time Transport Regulation of the NationalDepartment of Transport took the initiativeand redefined its role on the basis of theWhite Paper on Transport Policy adopted byGovernment in 1996. Thus, here the co-oper-ation was initiated by the NationalDepartment of Transport, which has em-barked upon a strategic planning sessionthat sets out what we need to undertake inorder to improve South Africa's maritimeprospects that will ultimately lead to ourcountry's economic growth and develop-ment, as well as position ourselves to becom-

c h a p t e r 9


ing one of the leading maritime nations ofthe world. The National Department ofTransport Maritime Agenda sets out theplan that will be pursued and given effect toover the next six years up to 2010. The focusappears to be on Maritime Transport, withkey projects listed in the Maritime Agenda2010, including inter alia Marine Environ-ment Protection, Maritime Safety Prom-otion, Enhancing Maritime Security, Ad-vancing NEPAD Objectives, Developmentand Positioning of South Africa as anInternational Maritime Centre. In addition,aside from attending the biannual NationalMaritime Conference in Cape Town overthe period 15 to 17 March 2005, the SA Navyalso presented a paper titled "The Mainten-ance and Repair of the Strategic DefencePackage Corvettes and Submarines: A Casefor Collaborative Engagement with thePrivate Sector".The Department of Trade and Industry. Thethen Minister of Trade and Industry, AlecErwin, instructed the Director-General ofTrade and Industry to form an interestgroup of maritime role-players whichwould focus on the Maritime Industry inSouth Africa with a view to promotingdevelopment so as to ensure sustainable jobcreation. The SA Navy was included in thecore group. The Trade and Industry's taskteam has contracted the Council forScientific and Industrial Research, specifi-cally its division Boutek, to co-ordinatemanagement planning to ensure a"Maritime Industry Development Strategy".

Defence DiplomacyVisits by Foreign Personnel. Visits to the SANavy included study tours by military stu-dents from Germany, the United ArabEmirates and the United States of America,staff talks with both India and Pakistan, andgoodwill visits by various senior naval offi-cers. The handing-over ceremony of theHarbour Patrol Boat donated to Mozam-

bique was attended by a senior officer fromthe Mozambican Navy.Visits by Foreign Ships. Eleven foreign shipspaid goodwill and working visits to the SANavy during the reporting period. Theseincluded ships from France, India, Kenyaand the United Kingdom.Memoranda of Understanding. Although nomemoranda of understanding were finalisedduring FY2004/05, two memoranda of un-derstanding are being processed. The mem-orandum of understanding between theGovernments of South Africa and Kenya hasbeen signed by the President of South Africaand is awaiting Kenyan approval. Althoughall relevant parties signed the memorandumof understanding between South Africa andIndia, an amendment was subsequentlysought by India. The amended memoran-dum of understanding is in process.Foreign Visits by SA Navy Personnel. Themajority of these visits (15 of 25 visits) wererelated to the Strategic Defence Package(corvettes and submarines), while visits toAfrican countries were for purposes of train-ing, Inter-state Defence and SecurityCommittee liaison and peacekeeping.

C O N C L U S I O NThe SA Navy achieved the majority of its objectives forthe reporting period. This report highlights some of thechallenges experienced by the SA Navy in the attainmentof the required combat-readiness levels, whilst having toachieve the required outputs despite an underfundedNavy. Most of the challenges highlighted are in the shortterm, aggravated by the requirements emanating fromthe integration of the new ships and submarines. Withthe disposal of the old vessels and equipment and theconcomitant improvement in infrastructure and compe-tency levels of human resources, the incorporation of thenew vessels into service will result in a vastly improvedmaritime defence capability. The SA Navy is confidentthat it is on track to achieve all its objectives forFY2005/06.


c h a p t e r 1 0



SOUTH AFRICAN MILITARY HEALTH SERVICE


he SA Military HealthService is a strategic assetto the SA National De-fence Force (SANDF) andthe country. The healthand healthy lifestyle ofT

the clients/patients of the SA MilitaryHealth Service are critical success fac-tors in ensuring successful SANDFoperations. Hence, notable achieve-ments for the SA Military HealthService were the efficient health screen-ing, namely the Concurrent HealthAssessments undertaken for all mem-bers that were deployed on operations.Furthermore, the educational andresearch health programmes underprojects MASIBAMBISANE1 andPHIDISA2 gained momentum. Theexpertise of the SA Military HealthService in terms of defensive chemicalbiological defence was acknowledgedinternationally. More significantly,training of Reserves as operationalemergency care practitioners and basicambulance assistants has seen several ofthe members secure full-time employ-ment because of their skills.

During FY2004/05 the focus of the SAMilitary Health Service was on improv-ing the business processes by concentrat-ing on outputs, eliminating wastefulactivities and the rendering of a cost-effective and comprehensive militaryhealth service in the nine geographicalareas. The clients of the SA MilitaryHealth Service for the financial yearunder review numbered approximately223 237. It should be realised that theoutput of the SA Military Health Serviceis subject to changes in the health envi-ronment, not only nationally but alsointernationally.

The SA Military Health Service, as thechemical and biological defence advisorto Government, was actively involved inthe national and international arenas.The Chemical and Biological DefenceAdvisor to the Surgeon General chairstwo subcommittees of the Council for theNon-proliferation of Weapons of MassDestruction on chemical and biologicalweapons of the World Health Organi-sation. This is indicative of the knowl-edge and expertise available in the SAMilitary Health Service and the strategicasset the Service is to the country.

1 Project MASIBAMBISANE is the corporate identity of the DOD's HIV and AIDSAwareness Programme and was launched in October 2001.

2 Project PHIDISA is a clinical research project that aims to establish the efficacy of HIVtreatment regimes in voluntary registered SANDF members and their families and todevelop relevant plans for effective management and prevention of HIV infection.

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Specific efforts to renew and transform the SA MilitaryHealth Service Reserves were successful. Through aselective recruitment process several prominent med-ical practitioners have joined the ranks of the ReserveForce. 45% of the July 2004 Military SkillsDevelopment System intake could be transferred to theReserve Force. Approval was given for the concept ofthe establishment of a University Reserve TrainingUnit. For the first time, the SA Military Health ServiceStrategic Business Plan reflected specific Reserve Forcematters. Training opportunities for Reserve Forcemembers are improving. However, adequate fundingfor force preparation of the Reserve Force remains aconcern.

Project MASIBAMBISANE has been in existence since2001 when the initial policy was drafted. Since thelaunch of the project most of the ten key areas havebeen addressed through the availability of donor fund-ing and the results achieved within these areas arereflected in the Knowledge, Attitude and PracticeSurvey report of 2004. This survey is considered to bethe most accurate source of data with regard to the HIVand AIDS Programme of the DOD and therefore its rec-ommendations formed the basis of the "revitalisation"of MASIBAMBISANE that entails a strategy that hasbeen drafted to indicate the way forward.

The DOD and the US collaborate on biomedical, publichealth and clinical research at 1 Military Hospital andseveral satellite sites. This is referred to as ProjectPHIDISA. Project PHIDISA (phase 1), a research proj-ect aimed at assessing the efficacy of anti-retroviraldrugs, was rolled out at several research clinics.Volunteer participants were recruited at four investiga-tional sites: 1 Military Hospital (Gauteng), MtubatubaSickbay (KwaZulu - Natal), 2 Military Hospital(Western Cape) and Umtata Sickbay (Eastern Cape).The remaining two sites, which are not yet functional,are 3 Military Hospital and Ba-Phalaborwa Sickbay(Limpopo). PHIDISA II is a randomised, open-labelfactorial study to compare the safety and efficacy of dif-ferent combinations of anti-retroviral therapy in treat-ing patients who are naïve. The total number ofpatients enrolled in the project, is 2 641 and of these 730patients are receiving anti-retroviral drugs.

P E R F O R M A N C E R E P O R T :C O R E O B J E C T I V E SThe core objective of the SA Military Health Service is toprovide prepared and supported military medical healthcapabilities, services and facilities in support of thedefence of South Africa that meet the requirements ofGovernment. The Military Health Service Programmeconsists of the following sub-programmes:

Strategic Direction.Military Health Support. Area Military Health Capability.Specialist/Tertiary Military Health Service. Product Support Capability. Base Support Capability.Military Health Training Capability.

S t r a t e g i c D i r e c t i o nThis sub-programme, which is managed by the SurgeonGeneral's Office, provides direction to the Military HealthProgramme. Its objective is to provide strategic directionto the Defence Health programme by the formulation,promulgation and control of strategy, policies, plans andadvice by the SA Military Health Service Office in orderto prepare and provide the health capabilities required bythe Chief of the SANDF.

The Surgeon General's Office provided strategicdirection by means of formulated and promul-gated policies, plans, instructions and advice toenable formations to prepare and provide therequired military health capabilities.Under the direction of the Surgeon General, thefocus of the SA Military Health Service is onimproving the business processes by concen-trating on outputs, eliminating wasteful activi-ties and the rendering of a cost-effective andcomprehensive military health service in thenine provinces. In this regard the SA MilitaryHealth Service will shortly enter into public pri-vate partnerships between the DOD and privatemedical facilities for the provision of in-patientbeds and the use of theatres at these privatefacilities at an agreed reduced price.Policy Developments. The DOD Instructionsoriginating from the Surgeon General and SAMilitary Health Service orders promulgatedbetween 1 April 2004 and 30 March 2005 are

T a b l e 1 0 . 1 G e n e r a l a n d S A M i l i t a r y H e a l t h S e r v i c e O r d e r s , F Y 2 0 0 4 / 0 5

Policy Title

SA Military Health Service Patient Administration Policy and Procedures

Management of Learner Assessment by SA Military Health Service Education, Training and Development Providers

Appointment of Honorary Colonels in the SA Military Health Service

Defence Against Chemical and Biological Weapons and Radioactive Materials

Date Promulgated

21 June 2004

16 July 2004

2004

2004


c h a p t e r 1 0

indicated in Table 10.1. A total of 14 policieswere under review.Impact of National Legislation. New nationallegislation impacting directly on the SAMilitary Health Service necessitated changesfor the organization:

The Pharmacy Act, Act No 53 of 1974 asAmended. The new Act has a major influ-ence on the scope of practice of theOperational Emergency Care Practitioners,for example the schedule level medicine thatan Operational Emergency Care Practitionermay prescribe and the safekeeping of thevarious schedule level medicines. The Medicines and Controlled Substances Act,Act 101 of 1965 as Amended. The facilities ofthe Military Health Base Depot do not com-ply with the new health legislation. Newwarehousing will be obtained at the cost ofRm 14.

M i l i t a r y H e a l t h S u p p o r tThis sub-programme, which is managed by the MobileMilitary Health Formation, provides mobile militaryhealth support in a multi-disciplinary military healthcombat-ready capacity (including specialised functionsfor land, air, maritime, clinical, evacuation support) andequipment for operational utilisation at short notice, inaccordance with the Short-term Force Employment Plan,national and international obligations.

The Military Mobile Health Formation focusedon its core function of ensuring combat readyMilitary Health forces for deployment by Chiefof Joint Operations. The other SA MilitaryHealth Service Formations supported thisendeavour.The Formation succeeded in ensuring combat-ready Military Health Medical task groups (402members) for three rotations in Burundi(Operation FIBRE), two rotations in theDemocratic Republic of the Congo (OperationMISTRAL) and one rotation in the Sudan(Operation CORDITE). However, a shortage ofdeployable operational emergency care practi-tioners occurred because members did nothave appropriate security clearances. The conversion of the Burundi Peace SupportOperation from an African Union operation(AMIB) to a United Nations operation (ONUB)impacted on the structure of the medical taskgroup to be provided. Although the SAMilitary Health Service staff officers for theMission Headquarters Staff were withdrawn,the Weatherhaven (field hospital facility) wasdeployed, placing an additional responsibilityon the organisation to provide medical officersand nursing personnel.

In the Sudan the SA Military Health Servicesucceeded in deploying a medical post andtrauma personnel at short notice, because theoutsourced level one and two medical facilitieswere not yet in position.Over the period 1 April 2004 to 31 March 2005a total of 43 patients were medically evacuatedfrom Burundi and the Democratic Republic ofthe Congo. The formation was responsible forthe SA Military Health Service's unique sus-tainment of the missions in Burundi, theDemocratic Republic of the Congo and theSudan.3 Medical Battalion Group assisted with themedical examinations of 2 600 Reserve Forcemembers.Empowerment of Reserve Force Members. 3Medical Battalion Group and 7 Medical Battal-ion Group have, over the last four years, coor-dinated the training of a number of ReserveForce members in various military and medicalskills, the latter including Basic AmbulanceAssistant (231 members passed), AmbulanceEmergency Assistant (66 passed) andOperational Emergency Care Practitioner (32passed). As a result of these skills acquired, anumber of these members secured full-timeemployment outside the Defence Force.Upgrading of Provincial Clinics and MedicalTreatment of Limpopo and Mpumalanga LocalPeople. During Exercise MEDFLAG the infra-structure of three clinics in the LimpopoProvince were upgraded. A total of 6 100 localpeople were treated at clinics in the twoprovinces.Disaster Management Training. Disaster man-agement training was presented to 60 membersof the Limpopo Province Emergency Services.Reserve Force Recruitment. Seven new blackmembers, lieutenant to captain, were appoint-ed at 3 Medical Battalion Group and 19 newmembers (other ranks) at 1 Medical BattalionGroup.7 Medical Battalion Group

At the end of the reporting period, 7 Med-ical Battalion Group was only 56% staffed asa result of, inter alia, resignations and theslow staffing of vacant posts. The battalionis also expected to support the SpecialForces School without being appropriatelystructured for the task. The efficiency of thebattalion is thus negatively affected.Chemical Biological and Radiation Capability.Lectures were presented on various aspectsof chemical and biological defence to ele-ments in the SANDF, including personneldeployed to the Democratic Republic of the

c h a p t e r 1 0


Congo and Burundi, as well as various civil-ian institutions (primarily on chemical andbiological terrorism and threats).

Force PreparationTraining of Reserve Force members from 3Medical Battalion Group received specialattention during the year under review. 73members completed their Basic AmbulanceAssistant's Course. Of these, 15 havealready completed the required practicalhours. Two members have completed theAmbulance Emergency Assistant Course.In conjunction with the Military HealthTraining Formation, the battalion success-fully trained 80 Reserves in the BattleSupport Course, and 50 in the Non-commis-sioned Officers Part 1 Course. The courseswere presented in Cape Town and RegularForce members also attended the latter two. 8 Medical Battalion Group presented sixoperational readiness courses with the aimof integrating and preparing medical taskgroups prior to mobilisation for externaldeployments. This training increased thelevel of combat readiness of the SA MilitaryHealth Service as a whole. Disaster man-agement training was presented to membersof the SA Military Health Service and SA AirForce.Force preparation exercises for FY2004/05are listed in Table 10.2.

Challenges for the Mobile Health Formation

lay in the fields of logistic support systems andGeneral Support Base structures. The SAMilitary Health Service logistic support is notyet managed by the Computer Aided LogisticManagement Information System, whichresults in duplication of actions to supply med-ically unique logistic items. Ongoing changesin General Support Base structures and chan-nels affect speedy rendering of logistic service,which, in turn, negatively influence combatreadiness.

A r e a M i l i t a r y H e a l t h S e r v i c eThis sub-programme managed by the Area MilitaryHealth Formation provides a comprehensive, excellentself-supporting, multi-disciplinary area military healthservice through a Formation Headquarters commandingand controlling nine area military health units to ensurea healthy military community.

The Area Military Health units provided healthfacilities within a 30 km radius for 90% ofpatients as planned.The Area Military Health Formation renderedservices to the Presidency, serving SANDFmembers, SANDF dependants, retired mem-bers and services in assistance of otherGovernment departments as approved.The Area Military Health Formation Head-quarters' main role is to guide and control theoutputs of and thus service delivery of the var-ious units under its command and control. Restructuring of the Presidential Medical

T a b l e 1 0 . 2 M o b i l e M i l i t a r y H e a l t h F o r m a t i o n F o r c e P r e p a r a t i o n E x e r c i s e s , F Y 2 0 0 4 / 0 5

Exercise Nameand Duration

MEDICAL POST1 to 5 November 2004

MEDFLAG27 June to 20 July2004

INDLOVU27 September to26 October 2004

HOUS (sub-exer-cise of INDLOVU)

WAYSIDE

Participants

8 Medical Battalion Group1 and 2 Military Hospitals

RSA (Mobile Health Formation, SA Air Force,other SANDF Divisions)

USA (3rd Air Force)


Medical Battalion Group

7 Medical Battalion Group, Directorate Oral Health,Members of Pro Teknik

Aim/Nature

The affirmation of deployment actions and doctrine in relation to evacuation andtreatment actions

Bilateral Medical Support Command Post Exercise in disaster relief and MassCasualties combined with real time sup-port to selected clinics

The USA and RSA hosted a medical inter-vention exercise aimed at uplifting thelocal community of the Limpopo andMpumalanga Provinces

To exercise the Command and Control capabilities of the SANDF and to executeoperations at operational level. TheDeployable Headquarters concept wastested and evaluated during the exercise

Chemical Biological Defence

Area

Wallmansthal

Limpopo and Mpumalanga Provinces

SA Army Combat Training Centre

Ditholo


c h a p t e r 1 0

Team. The Presidential Medical Team hasbeen restructured to meet increased demandsand the need for more efficient and effectiveservices. This has already materialised in theform of the Presidential Medical Team beingallocated a budget and several managementinterventions to improve service delivery.Expansion of Military Health Facilities. Anappreciation process was undertaken. Afterconsultation with the necessary stakeholders,the identification of sickbays for closure as wellas the identification of new premises for theconsolidation and expansion of services wascompleted.Increasing Health Assessment and ConcurrentHealth Assessment Requirements. Additionalfunds to meet the increasing requirement forhealth assessment and Concurrent HealthAssessment were obtained from the SA Armyand United States donor funding. The identifi-cation of specialised Health AssessmentCentres has been completed in all regions.During the year under review Area MilitaryHealth Unit Western Cape activated itsComprehensive Health Assessment Centre.Increasing Palliative Care Demands. A multi-disciplinary appreciation was initiated in theyear under review in order to ensure the pro-

vision of regional and accessible palliative carewithin the DOD.Outsourced Health Care. The Area MilitaryHealth Formation undertook bilateral meet-ings with the necessary stakeholders to ensurethe practical implementation of public-privatepartnerships, which would bring about effec-tive outsourced health care for SANDF mem-bers.Participation in the International Congress onAviation and Space Medicine. 20 membersfrom the statutory grouping of the AreaMilitary Health Formation attended theInternational Congress on Aviation and SpaceMedicine. Benefits deriving from this congresswere interaction with international delegates,and exchanging knowledge and understand-ing in aviation medicine. One of the Formationdoctors presented a paper on "In-AircraftVestibular Evaluation Medicine".9 Area Military Health Units were involved in15 projects within their local communities insupport of underprivileged people, such aspartnerships with home-based care organisa-tions, old-age homes, crèches, and the disabledand street children projects.The services rendered during the year underreview are reflected in Table 10.3.

T a b l e 1 0 . 3 S e r v i c e s S u p p l i e d b y A r e a M i l i t a r y H e a l t h F o r m a t i o n , F Y 2 0 0 4 / 0 5

Ancillary Health

Social Work

Psychology

Consultations

Oral Health

Pathology

Concurrent Health Assessments

Output/Clients

4 025

10 639

101

225 510

11 327

1 875

60 225

155 178

1 650

85 509

24 381

13 563

37 635

5 099

161 877

31 877

51 092

Consultations

Individual and family social work counselling

Clients attended therapeutic group work

Clients participated in community work projects

Individual psychological therapy consultations

Members attended group consultations

Psychometric assessments

By doctors

By specialists

Section 38A nurses

Other nurses

Other health care professionals

Referred for private medical treatment

Referred for private dental treatment

By oral health department

Laboratory tests referred

Services Supplied

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T a b l e 1 0 . 3 S e r v i c e s S u p p l i e d b y A r e a M i l i t a r y H e a l t h F o r m a t i o n , F Y 2 0 0 4 / 0 5 ( c o n t i n u e d )

Pharmacy

Presidentialmedical support

Deployment of operational emer-gency care practi-tioners

Output/Clients

886 381

Total rand value of R21 084 602. Average of2,5 items per prescription

at an average cost of R39,85 per prescription

421

200

2

59

69

7

Prescriptions issued

Local reconnaissance

Provincial reconnaissance

Incoming Presidents

Burundi (Operation FIBRE)

The Democratic Republic of the Congo (Operation MISTRAL)

Sudan (Operation CORDITE)

Services Supplied

S p e c i a l i s t / T e r t i a r y H e a l t h S e r v i c eThis sub-programme, which is managed by the TertiaryMilitary Health Formation, provides specialist healthservices to ensure the development, establishment andmaintenance of tertiary military health capabilities with-in the parameters of relevant legislation as contained inthe SA Military Health Service strategy.

The Tertiary Military Health FormationHeadquarters' main role is to guide and controlthe outputs and thus service delivery of thevarious units under its command and control. The Tertiary Military Health capability ren-

dered a service to approximately 69 000 serv-ing SANDF members and their dependants, 17000 Code 4 and Code 7 members, retiredSANDF members, Government, VeryImportant Persons, and the Governmentapproved patients (including patients from theUnited Nations and Southern AfricanDevelopment Community). The possibility ofrendering health services to veterans is underinvestigation.Services Supplied by Tertiary Military HealthFormation are reflected in Table 10.4.

T a b l e 1 0 . 4 S e r v i c e s S u p p l i e d b y T e r t i a r y M i l i t a r y H e a l t h F o r m a t i o n , F Y 2 0 0 4 / 0 5

Consultations

In-patients managed

Output/Clients

124 264

55 311

41 889

221 146

15 789; 38,80% bed occupancy,

average length of stay 3 days;Total of 47 268 patient days

6 690; 35% bed occupancy,

average length of stay 3,9 days;Total of 25 998 patient days

5 074; 34,5% bed occupancy,

average length of stay 3.9 days;Total of 15 293 patient days

27 553

1 Military Hospital

2 Military Hospital

3 Military Hospital

Total number of consultations

1 Military Hospital

2 Military Hospital

3 Military Hospital

Total number of in-patients

Services Supplied


c h a p t e r 1 0

Ta b l e 1 0 . 4 S e r v i c e s S u p p l i e d b y T e r t i a r y M i l i t a r y H e a l t h F o r m a t i o n , F Y 2 0 0 4 / 0 5 ( c o n t i n u e d )

Prescriptions for medication dis-pensed

Ancillary Contacts

Births in Military Hospitals

Mortality in Military Hospitals

Output/Clients

Number of prescriptions 245 021745 869 Items

Average 3 items per prescription


Average 2.8 items per prescription


Average 3 items per prescription

Number of prescriptions 3951 343 Items




38 977

1 057

1 165

936

252

1 Military Hospital

2 Military Hospital

3 Military Hospital

Institute for Aviation Medicine

Institute for Maritime Medicine

Male

Female

Male

Female

Services Supplied

Aviation Health Services. The Institute forAviation Medicine is responsible for the com-prehensive aviation health capability, includ-ing VIP medical assessments, hyperbaric treat-ment, G-tolerance training for aviators, avia-tion medical assessments, provision of air evac-uation teams, as well as an aviation medical fit-

ness verification service for the SA Air Forceand SA Civilian Aviation Authority. All objec-tives were achieved except for the researchcomponent, which is still to be developed.Details of services rendered are depicted inTable 10.5.Military Health Related Research and

T a b l e 1 0 . 5 A v i a t i o n H e a l t h S e r v i c e s P r o v i d e d ,F Y 2 0 0 4 / 0 5

Output/Clients

192

1 024

109

210

11 197

8

6

82

88

678

168

65

VIP Medical Treatment

Flight Medicals

G-tolerance Training

Hyperbaric Treatments

A & B Licence Confirmations (Civil Aviation Classing of Pilot Licensing levels)

Training Courses Presented

Air Evacuations Performed

SANDF Attaché Medicals

Video Natasnograms (balance tests)

Sick Reports

Comprehensive Health Assessments

Presidential Staff (Medicals for Presidency Staff)

Services Supplied

Development and PsychologicalAssessment and Development. TheMilitary Psychological Institute con-ducts all military health-relatedresearch and development and psy-chological assessments in the DOD.All outputs were achieved. The serv-ices supplied are indicated in Table10.6.Maritime Health Services. TheMilitary Maritime Institute is respon-sible for providing maritime healthservice for the SANDF, hyperbarictreatment, maritime medical assess-ments, diving medical fitness verifi-cation for the SA Navy as well as abase service in the Simon'sTown/Cape Town area. The mar-itime health services supplied areindicated in Table 10.7.

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T a b l e 1 0 . 6 S e r v i c e s R e n d e r e d b y t h e M i l i t a r y P s y c h o l o g i c a l I n s t i t u t e , F Y 2 0 0 4 / 0 5

Research and Development

Assessment and DevelopmentActivities

Output/Clients

97

14

34

4

8

21

17

16

10

2

14

Research and Development Projects

Courses

Consultations

Software Development and Support

Special Selection

Pre-selection

Job Analysis

Training Courses Presented

Organisational Development

Career Counselling

Facilitation of Group Forming Activities

Services Supplied

T a b l e 1 0 . 7 M a r i t i m e H e a l t h a n d B a s e O r i e n t a t e d S e r v i c e s , F Y 2 0 0 4 / 0 5

Output/Clients

1 592

169

95

9 598

24 344

5 575

5 069

4 835

2

Comprehensive Health Assessments of the Navy in Simon's Town

Diving and Submarine Medical Evaluation

Medical Boards

Sick Reports

Pharmacy Service

Psychology Service

Social Work

Ancillary Health Contacts

Hyperbaric Oxygen Treatments

Services Supplied

T a b l e 1 0 . 8 V e t e r i n a r y H e a l t h S e r v i c e s p r o v i d e d , F Y 2 0 0 4 / 0 5

Output

3 582

2895

280

430 horses

2 534

4 676

Consultations and Procedures for SANDF

Consultations and Procedures for the SA Police Service

Consultations and Procedures for Correctional Services

Farrier Services

Hospital Days

Services Rendered

Veterinary Health Services. The VeterinaryHealth capability is responsible for the supplyof veterinary services, not only to the DOD butalso to the SA Police Service and theDepartment of Correctional Services. Theyprovide a large input into the environmentalaspects, where game is managed on land of theDOD. The services provided are indicated inTable 10. 8.Corporate Communication. Corporate Com-

munication plays a vital role in the achieve-ment of the objectives of the Tertiary MilitaryHealth Formation. An effective and profes-sional internal and external communicationservice was rendered.

P r o d u c t S u p p o r t C a p a b i l i t yThis sub-programme which is managed by the MilitaryHealth Support Formation, provides military healthsupport, warehousing of pharmaceuticals and sundries,

Canine

Equine


c h a p t e r 1 0

SA Military Health Service mobilisation equipment, anelectro-medical equipment asset management servicefor Area and Mobile Military Health Formations, andthe directing of SA Military Health Service product sys-tems and cooperative common logistics.

Military Health Support Formation Head-quarters. The Formation Headquarters provid-ed direction through instructions, directivesand prescripts. Through the implementationof the South African Excellence Model the opti-mal utilisation of allocated resources is achiev-ed with improved client satisfaction as themain focus area. Quality advice is rendered tothe SA Military Health Service in respect ofmilitary health procurement and warehousingprocesses, resulting in high client satisfaction. Military Health Base Depot

The Military Health Depot at the MilitaryHealth Base Depot. A high standard of serv-ice delivery was achieved by the continuousattainment of the set performance measures,including the control of stock with a stockdifference fault of only 0,247%. The outputsof this objective have been achieved asplanned. In support of the Military StrategicObjective, ie "promote peace, security andstability in the region and continent", allhealth related unique requirements (phar-maceuticals and sundries) for SANDF mem-bers deployed in the Democratic Republic ofthe Congo (Operation MISTRAL), Burundi(Operation FIBRE) and the Sudan (Oper-ation CORDITE) were routed through thisdepot. The Military Health Depot handledan inventory to the value of R274 369 094during the year under review. The invento-ry was turned over 4.42 times. The facilitiesof the Military Health Base Depot do notcomply with the new Medicines andControlled Substances Act, Act 101 of 1965as amended. New warehousing will beobtained at the cost of Rm 14. Military Health Mobilisation Depot. TheMilitary Health Mobilisation Depot at theMilitary Health Base Depot succeeded inproviding warehousing of pharmaceuticalsand sundries for the SA Military HealthService, and objectives were achieved asplanned. With the closing down of MedicalBase Ordnance Depot, the items consideredto be unique to the SA Military HealthService were transferred to the MilitaryHealth Mobilisation Depot to facilitate theclosing down of the Medical Base Ordnance

Depot. The value of inventory handled forthe financial year by the Military HealthMobilisation Depot was R185 347 059. Electro-medical Service Centre. The Electro-medical Centre provides Electro-MedicalServices to the Area and Mobile MilitaryHealth Formations through asset manage-ment. Asset registers for all the AreaMilitary Health Units were compiled. 9 500items are listed in the database and the con-tinuous updating of the data in these regis-ters assists the units in ensuring a highlevel of working equipment as well as thetimely planning for replacement of obso-lete equipment. The redeployment of sur-plus equipment from units to other unitscan now take place effectively.Military Heath Procurement Unit

The Military Health Procurement Unitprocures SA Military Health ServiceProduct Systems and Corporate Com-mon Logistics. The outputs of this coreobjective are the availability of an SAMilitary Health Service Product Systemcapability consisting of SA MilitaryHealth Service mobilisation, medicalevacuation vehicles and common logis-tics services. All these activities con-tribute directly to the combat readinessof the SA Military Health Service. Asaving was made possible in changingthe SA Military Health Service dress reg-ulations which resulted in the conduct-ing of business within the allocatedbudget. How-ever, the procurement ofpersonal kit for mobilisation remains achallenge.The Military Health Procurement Unitensured a continuous flow of SAMilitary Health Service unique prod-ucts, materials and services internally tothe SA Military Health Service depots,military hospitals and sickbays as wellas externally to forces deployed, andthus assisted in the rendering of qualityhealth care to members of the SANDFand their dependants. Stock to the valueof R228 147 961.79 was procured for theSA Military Health Service and the JointOperations Division. Payments to a totalvalue of R194 973 788.81 were achievedwith a minimum roll-over. An analysisof orders placed and the value thereofare reflected in Table 10.9.

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B a s e S u p p o r t C a p a b i l i t yThis sub-programme, which is managed by the GeneralSupport Base Thaba Tshwane, provides a support serv-ice to the units in the Pretoria area. The output consistsof support in the following functional areas: PhysicalProtection Service, Physical Training Sport andRecreation Service, General Training Support,Procurement Service, Logistic Control Service, SupplySupport Service, Transport Service, FacilityManagement Service, Hospitality Service and TechnicalSupport Service.

Despite a good performance, challenges wereexperienced as a result of all ServiceAgreements not being finalised and the clientservices not yet fully incorporated into theGeneral Support Base.

M i l i t a r y H e a l t h T r a i n i n g C a p a b i l i t yThis sub-programme, which is managed by the MilitaryHealth Training Formation, provides a military health

T a b l e 1 0 . 9 A n a l y s i s o f O r d e r s P l a c e d a n d V a l u e , F Y 2 0 0 4 / 0 5

Value of Orders Placed

R4 543 581

R133 363 968

R44 265 557

R7 447 412

R11 436 975

R27 090 466

R228 147 959

Veterinary, Environmental Health and Special Feeds

Pharmaceuticals

Consumables

Medical Gases and Repairs

Dental

Medical Equipment

TOTAL

Description of Orders Number of Orders Placed

737

9 390

7 475

1 038

3 005

1 167

22 812

training service to ensure the development, establish-ment and maintenance of military health training capa-bilities within the parameters of relevant legislation andpolicies.

Military Health Training Formation Head-quarters. All training was co-ordinated asplanned. Members of the Headquarterspassed courses relating to Education Trainingand Development legislation, the SAExcellence Model, workshops and meetingsrelating to the South African QualificationsAuthority.School for Military Training. The MilitarySkills Development System programme chal-lenged the School for Military Training's logis-tical, financial and human resources in terms ofcapacity. However, the school is obliged, tak-ing into account its social responsibility, toempower SA Military Health Service MilitarySkills Development learners with the necessaryskills and abilities, and thus contribute to edu-cating, training and developing our communi-ty and Reserve Force.

1 623 learners were trained on 25 coursesranging from basic training to SA MilitaryHealth Service Senior Management courses.A pass rate of 96% was achieved.To rejuvenate the human resources compo-nent of the SA Military Health Service, 143Military Skills Development System learn-ers started their basic training in January2005.Significant progress was made with theaccreditation of courses with the SouthAfrican Qualifications Authority. Two un-planned National Qualifications Frame-work level four courses were presented.32 learners successfully completed thecourse in 2004 and 25 learners are attendingthe 2005 course.

School for Military Health Training. Thecourses presented at the School for MilitaryHealth Training are reflected in Table 10.10.

T a b l e 1 0 . 1 0 C o u r s e s p r e s e n t e d a t t h e S c h o o l f o r M i l i t a r y H e a l t h T r a i n i n g , F Y 2 0 0 4 / 0 5

Quantity

48

3

8

7

9

1

6

2

6

5

9

2

1

12

First Aid Level 1 to 3

Buddy Aid

Combat Life Support

Basic Ambulance Assistant

HIV/AIDS

Advanced Emergency Assistant

Operational Emergency Care Practitioners

Orderly Courses

Veterinary Courses

Maritime Medicine Courses

Aviation Medicine Courses

Battlefield Advanced Trauma Life Support

Battlefield Advanced Resuscitation Treatment

Life Support Courses

Course


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Liaison with Foreign Defence Forces Regard-ing Military Health Training. This unit, as theRegional Centre for Military Health TrainingExcellence, has formed strong bonds with theUnited States of America, the United Kingdomand all the SADC countries.Upgrading of Facilities. The upgrading of theunit's facilities and renewal of training aidscontributed to the achievement of objectives. Simulation Laboratory. The installation ofunique simulation laboratories at the school,with decentralised laboratories in Bloem-fontein and Simon's Town enabled learners tomaster practical training sessions under thesupervision of instructors. These simulationlaboratories meet with the standards of theHealth Professions Council of South Africa.Management Initiatives

Personnel of this unit have attended educa-tion, training and development courses, toqualify them as assessors and moderators.These members put to good effect theknowledge and skills that they attained, tothe benefit of the students.Entry examinations for Intermediate LifeSupport and Advanced Life Support courseswere instituted to ensure a higher pass rateas well as improvement of the preparationof learners prior to enrolment for thesecourses.A course requirement document indicatingdetails of courses presented was developedand is widely used in the SA Military HealthService. To support Defence Diplomacy ob-jectives, the document is provided to De-fence Foreign Relations to indicate foreignlearning opportunities.

Nursing College. The Nursing College has per-formed optimally during the year under re-view. This is apparent from the results of thelearners, despite vacant trainer posts. Threemembers were deployed over this period.

The Nursing College presented five NursingCourses as well as Post-basic Courses.Results of Nursing Courses presented arereflected in Table 10.11.The College received a commendation cer-tificate from the 'Phelophepha Train', wherelearners are doing their community service,for its loyal support to the Military StrategicObjective "Support to the People of SouthAfrica".The Nursing College has received a SurgeonGeneral Special Award in recognition ofoutstanding performance and service deliv-ery during 2004 for presenting the Diplomain Clinical Nursing Science Health Assess-ment, Treatment and Care.A facilitator of the Nursing College co-ordi-nated the Trauma Nursing Course duringExercise MEDFLAG.Seven facilitators and managers successfullycompleted the assessor's course to complywith the education and training develop-ment requirements set by the South AfricanQualifications Authority. Eight membersattended military courses to prepare themfor possible deployment. 36 members par-took in the Aviation, Battlefield AdvancedTrauma Life Support Course and BattlefieldAdvanced Resuscitation Treatment SkillsCourse and Medicine Management toensure that they were deployable.Negotiations are in process regarding thetraining of primary health care orderlies atArea Military Health units as enrolled nurs-es who can give palliative care.The Nursing College has played a crucialrole in the development of the DispensingCourse and negotiations that have takenplace to present a Dispensing Course at theUniversity of Pretoria. Aspen Pharmacarewill sponsor the university course that willinitially be presented for members at Area

T a b l e 1 0 . 1 1 R e s u l t s o f N u r s i n g C o u r s e s , F Y 2 0 0 4 / 0 5

Four Year Diploma Course

Two Year Bridging Course

Two Year Pupil Enrolled Course

Diploma in Nursing Science Health Assessment, Treatmentand Care

Medicine Management Course

184

10

93

53

81

Course

96%

99%

95%

83%

65%

Remedial training and study method improvement measures taken to assist underachievers

Presented at 2 Military Hospital



The selection and motivation programme for learners will be addressed

Number of Learners Pass Rate Comments

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Military Health Units.Military Health Combat Training Centre. TheMilitary Health Combat Training Centre pre-sented the courses as indicated above.Training is presented through simulated com-bat situations, to prepare SA Military HealthService members for the joint operations envi-ronment. The objectives of these courses were:

SA Military Health Service Officers. To ensurethat SA Military Health Service officers willbe able to solve military problems, and toprovide support during conventional opera-tions towards a Medical Task Group andto provide a learning opportunity for thenewly-appointed Health ProfessionalOfficers in the SA Military Health Service toensure that those officers possess basic mili-tary skills.SA Military Health Service Warrant Officers.To ensure that the SA Military HealthService Warrant Officers can plan and exe-cute centralised and decentralised replen-ishment.

Joint Physical Sport and Recreation Centre. Apartnership was entered into between the DOD(SAMHS) and the University of the OrangeFree State to create a Free State Sport Institute.The focus is on the identification of sport talentin the Free State. This endeavour is in conjunc-tion with the Free State Department of Sport,Arts and Culture. The Centre was alsoinvolved in fund-raising for the VhembeOrphanage, living out their commitment tocommunity involvement and support to thepeople of South Africa. The unit was able tostart using a newly equipped gymnasium,which enhanced its ability to train and educatelearners in the use of the correct equipment toattain the required SANDF fitness standards.SA Military Health Service Band. During theyear under review the SA Military HealthService Band focussed on the provisioning ofprofessional musical service to the SA MilitaryHealth Service and the SANDF and ensuredthat the band maintained operational readinessat all times through the provision of a diversevariety of musical and ceremonial capabilities.

O C C U P A T I O N A L H E A L T H A N D S A F E T YOccupational Health and Safety in the DOD.The Surgeon General is the delegated authori-ty to direct and monitor occupational healthand safety in the DOD. This function is exe-cuted in conjunction with all Services andDivisions. Occupational health and safety poli-cies are implemented to direct the provisionand maintenance of working environments

that are safe and without risk to DOD officials.Non-compliance with policy is vigorouslyinvestigated in conjunction with the inspec-torate of the Department of Labour to enforcecorrective actions.

The integration of an Occupational Health andSafety Management System in the variousServices and Divisions is still in process. Theintegration is based on the OccupationalHealth and Safety Policy. The purpose of thesystem is to assist with the following:

The pledging of commitment for the promo-tion and maintenance of safe and healthyworking and training conditions in theDOD.Ensuring compliance with the OccupationalHealth and Safety Act in order to improveemployee well-being by means of work-place programmes.

Health assessments and occupational hygienesurveys contribute to the enhancement of oper-ational readiness within Defence and supportthe compensation process for occupationalinjuries and diseases.Multi-disciplinary teams jointly addressedleading health indicators. These included theearly detection and prevention of physicalinjuries due to training or working conditions,to the back, knees and ankles as well as physi-cal conditions such as asthma, tuberculosis anddiabetes, the promotion of physical activity,education on overweight/obesity, nutrition,smoking cessation programmes, identificationand rehabilitation of substance abusers,responsible sexual behaviour, mental healthand stress management, hypertension control,hearing conservation programmes, environ-mental quality and personal protective equip-ment.Challenges for the DOD. The following werethe challenges for the DOD in respect ofachieving set goals:

Lack of dedicated personnel who are trainedin Occupational Health and Safety. As aresult of the scaling down of posts in mostunits the Occupational Health and Safetyfunction is an additional task for members.There also seems to be poor OccupationalHealth and Safety awareness and commit-ment by members. This problem is acknow-ledged at the DOD top management. ADirectorate Integrated Management Ser-vice's project was launched to look into thestructure of Occupational Health and Safetyin the DOD. This process is now in the stageof finalisation, and implementation of the


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new structures should start in 2005.The management of non-compliance with theFacilities Regulations and Ammunition andExplosives Regulations of the OccupationalHealth and Safety Act No 85 of 1993. The suit-able rehabilitation of Defence facilities incompliance with the Occupational Healthand Safety Act is severely restricted owingto the funding constraints experienced atthe National Department of Public Works.An Internal Policy on Occupational Healthand Safety is not available at all force struc-ture elements and hazard identification andrisk assessment documents are not complet-ed at all force structure elements.

O T H E R O U T P U T S I N S U P P O R T O F G O V E R N M E N T

In support of the international Relations, Peaceand Security Cluster's objectives the SAMilitary Health Service participated as follows:

To Support the African Renaissance Ideal The SA Military Health Service partici-pated in most activities with neighbour-ing countries. This included giving brief-ings on HIV/AIDS awareness projectsand the management of these projects.Participation in the Inter-State andDefence Security Committee. Withinthe SADC the SA Military Health Servicefulfilled a leading role in the Inter-State

and Defence Security Committee Healthwork group. Through this work grouphealth training activities and health doc-trinal development were facilitated.Assistance to the Organisation for theProhibition of Chemical Weapons. On 7March 2005 a course was presented byseven members from 7 Medical BattalionGroup to 27 delegates of the Africanmember states of the Organisation for theProhibition of Chemical Weapons. It isforeseen that this course will be present-ed annually.

Support to Peacekeeping Operations in CentralAfrica. Forces have been provided in rota-tion in support of efforts to resolve conflictin the region. The SA Military HealthService provided combat-ready MilitaryHealth forces for deployment by Chief ofJoint Operations.

In support of the Governance and Adminis-tration Cluster the SA Military Health Serviceparticipated as follows:

Mobile Theatres. During the year underreview the SA Military Health Service con-tributed to the rendering of health servicesby the provinces by making availablemobile theatres to the Gauteng Departmentof Health for utilisation at KalafongHospital.Area Military Health Units. Good inter-

T a b l e 1 0 . 1 2 O t h e r S e r v i c e s R e n d e r e d b y 7 M e d i c a l B a t t a l i o n G r o u p t o O t h e r S t a t e D e p a r t m e n t s ,F Y 2 0 0 4 / 0 5

Department of Home Affairs andSA Police Service

SA Police Service

Department of Foreign Affairs

30

2

2

2

2

2

3

4

8

4

Client

21 March to 30 April 2004

14 to 20 March 2004

22 to 28 March 2004

9 May to 05 June 2004

21 June to 31 July 2004

25 August to 2 October 2004

15 September 2004

21 March to 5 April 2004

29 August to 21 September 2004

24 November to 7 December 2004

Medical support during elections and inauguration

Medical support to Task Force Male Selection

Medical support to Task Force Female Selection

Medical support to Task Force Weapon Training

Medical support to Task Force Urban Training

Medical support to Task Force Rural Training

Medical support to Cordon and Search operation

Humanitarian support to Madagascar disaster

Medical support in the Democratic Republic of the Congo

Medical support during Mozambique election

Number of 7 MedicalBattalion Group

Members

Date Type of Service

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departmental liaison takes place at provin-cial level between the SA Military HealthService and the provincial health authoritiesin the interests of supporting the improve-ment of service delivery at all levels ofGovernment.Mobile Military Health Formation.Information on other services rendered toclients outside the DOD by 7 MedicalBattalion Group is reflected in Table 10.12.The Chemical Biological RadiationProtection Wing of 7 Medical BattalionGroup rendered the following services toclients outside the DOD:

Johannesburg General Hospital. 21members of 7 Medical Battalion Grouptrained 100 hospital members by meansof a theoretical Chemical Biological pres-entation on chemical incidents, as well asa brief demonstration on decontamina-tion.Presidential Inauguration. 27 membersof the Chemical Biological Wing provid-ed support to the SA Police Service BombDisposal Unit.

Metro Emergency Services (CapeTown). Two members from the CapeTown Metro Emergency Services weretrained in Chemical Biological awareness.Chemical incident at Medscheme build-ing (Midrand). A request was forwardedto 7 Med Battalion Group to assist the SAPolice Bomb Disposal Unit in a chemicalincident at Medscheme building inMidrand where a number of people werepoisoned by an unknown chemical.

Training provided to SA Police Service. On 7and 16 July 2004 six members of the ChemicalBiological Wing trained 40 SA Police Servicemembers in basic Chemical, Biological andRadiation protection measures.

C O N C L U S I O NThe SA Military Health Service is committed to render-ing the services as required by the DOD. Despite seriouschallenges with regard to the allocated funding level tothe SA Military Health Service, aging equipment, theloss of health professionals and a limited operationalbudget, it will always endeavour to manage these risksand challenges in order to achieve its set objectives.




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DEFENCE INTELLIGENCE


efence Intelligence con-tinues to play a signifi-cant role in securitymanagement in theregion. In this regardthe Defence Intelli-gence Sub-committee

of the Inter-state Defence and SecurityCommittee signed a Protocol onIntelligence and Security.

The first Defence Intelligence Sub-com-mittee Intelligence Course was present-ed successfully in Zimbabwe over theperiod 30 August to 29 October 2004.Twenty learners from 10 SouthernAfrican Development Community(SADC) countries attended the course.Valuable lessons were learned inattending and facilitating this course. Afollow-up conference by participatingcountries confirmed its value and pavedthe way for more of these courses. Acommunication network amongDefence Intelligence Sub-committeemember states is almost fully opera-tional.

Defence Intelligence personnel continueto play an important role in support ofGovernment's efforts to facilitate acease-fire and peace agreements inBurundi and the Democratic Republicof the Congo. Notwithstanding contin-

ued instability in the Great Lakesregion, Defence Intelligence memberscontinued to render assistance with theintegration of belligerent elements inthe Democratic Republic of the Congoand Burundi into the unified armedforces of these countries. This includedassisting in the drafting of an integra-tion framework, planning documentsfor a smooth and speedy integrationand monitoring the integration.Defence Intelligence is also involved inassisting security management else-where on the continent, for example inUganda, Côte d'Ivoire and the Sudan.During the last quarter of the periodunder review Defence Intelligence alsoprovided training to the EconomicCommunity of West African States earlywarning centre staff. Positive feedbackwas received from other South Africanstakeholders on the role DefenceIntelligence is playing.

Defence Intelligence supported SANDFelements before, during and afterdeployment in the Democratic Republicof the Congo and Burundi and sup-ported Exercise MEDFLAG, ExerciseAIRBORNE AFRICA and theAerospace Africa Defence Exhibition2004. This support led to valuable oper-ational information being obtained.Defence Intelligence initiated structuralchanges to improve both its early warn-ing centre and the situation room in an

D

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effort to improve intelligence support to operations.Initial tests with these envisaged changes have alreadyindicated a significant improvement.

The collection capability was extended during the reportperiod, and a number of geospatial products and servic-es were delivered or are being upgraded. Co-ordinationof the geospatial function is continuously improving. Amobile integrated geospatial support centre is beingdeveloped that will largely eradicate the interoperabilityproblem and allow in-time decision-making at opera-tional and tactical levels. The initiation of a comprehen-sive geospatial doctrine for the SANDF was also takeninto review.

The Mid-cycle National Intelligence Estimate wasreceived by the National Intelligence Co-ordinatingCommittee and was used extensively. The newly pub-lished production cycle by National Intelligence Co-ordinating Committee allowed Defence Intelligence toplan and add value-driven inputs when required.Defence Intelligence has ended the calendar yearexceeding the planned production schedule in both thenumber and quality of products. Feedback from clientsat the national strategic and operational levels remainedpositive. This can be attributed to the change in productrange and the integration of products to give a moreholistic security picture. These changes ensured thatproducts were aligned with the intelligence needs ofimportant clients. An increase in requests for intelli-gence products is indicative of growing confidence inthe capabilities of Defence Intelligence.

Defence Intelligence continues to conduct intelligenceexchange conferences with specific partners and alsoprovides intelligence exchange documents to identifiedforeign intelligence partners. The emphasis remains onimproving intelligence liaison in the SADC region.Defence Intelligence also participated in meetings of theJoint Permanent Commission on Defence and Securitywith Zimbabwe and Namibia.

Defence Intelligence played a major role in drafting theNational Security Framework that was presented andendorsed by the Justice, Crime Prevention and SecurityCluster. The National Security Framework will be pre-sented to the National Security Council, the Inter-minis-terial Security Council and Cabinet.

Defence Intelligence participated in the defence updateof the White Paper on Defence and the Defence Review.

It also played a leading role in revising the policy andprocedures for special defence activities in the DOD.

Defence Intelligence continued to staff key posts duringthe report period. However, the need to staff more ofthese posts and the training of staffed members remainfocus areas. In this regard Defence Intelligence conductbasic language and computer training with junior mem-bers, which has contributed significantly to the qualityof intelligence products. Defence Intelligence plans torefine education, training and development pro-grammes to be aligned with both the post profilerequirements and the National Skills DevelopmentStrategy. The implementation of the Statutory Intel-ligence Qualifications on National Qualifications Frame-work Levels 4 - 6 will be a priority during the nextreporting period.

C H A L L E N G E S T O T H E A C H I E V E M E N TO F O B J E C T I V E SThe availability of skilled personnel remains an area ofconcern. The increased need to deploy DefenceIntelligence members abroad has a detrimental impacton certain directorates, especially at under-staffed struc-tures. The loss of qualified intelligence personnel andthe replacement of these losses remain the single mostimportant challenge for Defence Intelligence.

The collection capability of Defence Intelligence is beingexpanded continuously and needs further improvementat huge cost to stay abreast of new technological devel-opments. Available bandwidth remains an obstacle tothe distribution of geospatial products. The SANDF alsohas limited strategic aerial reconnaissance capabilities,since the inflexibility of commercial satellites and badweather limit the use of satellite reconnaissance overequatorial regions.

The inability to relocate the Defence Intelligence head-quarters remains an area of concern. DefenceIntelligence recently appointed a project officer to inves-tigate and steer a private-public partnership. The fundsneeded for the feasibility study may be beyond the cur-rent budget allocation of Defence Intelligence.

Limited access to training, especially SA Army courses,such as the Integrated Sub-unit Commanders and JuniorCommand and Staff Course, hampers the career devel-opment of junior members and is a major cause of dis-comfort among these members.



PART 1: STRATEGIC DIRECTION

JOINT SUPPORT


he Financial Year 2004/05has been exceptional forthe Joint Support Div-ision. Overall servicedelivery from the sub-divisions within the JointSupport Division took

and capital investment, with 30 majorand 96 minor projects undertaken.

The Joint Support Division is directlyaffected by the restructuring of investi-gations taking place within the DOD,and in particular, Resolution four of theParys Resolutions. It is envisaged thatthe outcome of the restructuring investi-gations will streamline the supportprocess within the DOD. This will thensteer the way towards formulating theintegrated support strategy and conceptof support to operations.

The Joint Support Office achieved fullcompliance with the formulation, prom-ulgation and control of strategies, poli-cies, instructions and plans with regardto joint support for the Chief of theSouth African National Defence Force(SANDF).

The Human Resources Support Centrewas able to attain the objectives it set forthat period with the minimum of obsta-cles. It was done in such a way that theHuman Resources Support Centre waspraised for its improvement of theStrategic Business Plans and financialexpenditure on several occasions.

The overall performance per core objec-tive of the DOD Logistic Agency againstplan was satisfactory. In FY2004/05 the

Tplace as planned. The achievements ofthe Division have included the signifi-cant contributions made by members ofthe Logistic Agency and Command andManagement Information SystemsDivision towards the establishment ofthe Southern African DevelopmentCommunity (SADC) Brigade. Thedevelopment of the telecommunica-tions and logistics conceptual frame-work was an important milestonetowards the SADC efforts to establishthe region's African Standby Force.

Similarly, the provision by the Com-mand and Management InformationSystems Division of reliable satellitecommunications with our peacekeepingcontingents deployed, is significant.Not only does this capability ensuredirect and real-time communication,but it also provides overt telephoniccontact between our troops and theirfamilies back home. Much develop-ment took place with regard toDepartment of Defence (DOD) facilities


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main focus was on the achievement of planned objec-tives since the FY2005/06 budget constraints will beeven bigger.

The overall performance per core objective for theCommand and Management Information Systems Sub-division is satisfactory. However, there are challengesthat might influence the outputs of the next financialyear if they are not addressed. These challenges includethe staffing of vacant posts and the underfunding ofCommand and Management Information systems andservices. The structure, tasks and functions of theCommand and Management Information Systems Sub-division are expected to be heavily influenced by theenvisaged restructuring of the DOD, in particular theSANDF.

For the Military Police Agency the financial year hasbeen characterised by a number of requests by top man-agement to make funds available to finance a financialshortfall that the DOD was experiencing. Such contri-butions resulted in the Military Police Agency repriori-tising its outputs and functions and restricting in somecases or even cancelling important functions and out-puts required from the Military Police Agency.However, with the exception of a few delays, especiallyin the processes of procurement, the Military PoliceAgency managed to achieve the most important outputsas planned. The dedicated effort to reduce crime hasseen the Military Police Agency achieve increasing suc-cess in its crime combating and prevention strategy.

For the Service Corps, the throughput of serving mem-bers of the DOD as potential clients has once again notbeen forthcoming as projected, which resulted in a lessthan satisfactory performance this year. It is anticipatedthat this trend will continue until the proposed exit man-agement mechanisms are officially instituted within theDOD in order to generate a continuous substantialthroughput.

The Joint Training Formation did achieve most of its setobjectives for the reporting period. It has met most ofthe expectations and requirements as set by its clientsand stakeholders. Good progress was made within theareas where shortcomings existed.

P E R F O R M A N C E R E P O R T :C O R E D I V I S I O N A L O B J E C T I V E SThis programme consists of the following sub-pro-grammes:

Strategic Direction (Joint Support Office).Human Resource Support and Management(Human Resources Support Centre).Joint Logistic Services (DOD Logistic Agency).Command and Management InformationSystems.

Military Police (Military Police Agency).Service Corps.Joint Training (Joint Training Formation).

S t r a t e g i c D i r e c t i o nThe Office of Chief Joint Support is responsible for pro-viding strategic direction to the Joint SupportProgramme.

The Joint Support Office achieved full compli-ance with the formulation, promulgation andcontrol of strategies, policies, instructions andplans with regard to joint support for the Chiefof the SANDF.

H u m a n R e s o u r c e S u p p o r t a n dM a n a g e m e n tThe Human Resources Support Centre provided humanresources support to the DOD.

Race and Gender Targets. The HumanResources Support Centre achieved almost100% of the race and gender targets as indicat-ed in the short-term Human Resource Plan forthe DOD.Youth Foundation. The planned 2004 recruit-ment target of 250 members for the YouthFoundation was fully met.Military Skills Development System. A totalof 814 530 Military Skills Development applica-tions were processed for the January 2004intakes for the SANDF.Support to External Deployments. A total of37 009 allowances transactions for membersdeployed outside the borders of the RSA werecaptured, which ensured timely payment tothe respective members. Personnel mainte-nance assistance was provided during fourmobilisations and demobilisations for externaldeployments. 3 785 identification discs wereissued to DOD personnel earmarked for exter-nal deployment. A total of 14 722 discs wereissued from the start of external deployment inBurundi and the Democratic Republic of theCongo (DRC).South African Police Service Transfer. Out ofa possible 360 members of the DOD, 209 weresuccessfully transferred to the SA PoliceService.Non-statutory Force Pension Project. In theyear under review the non-statutory force pen-sion project did not progress very well. Themajority of the 21 000 non-statutory forcemembers who have joined the SANDF since1994 are no longer in the service of the DODdue to resignation, discharge or retirement.Thus the DOD currently focuses on the appli-cations of non-serving members. The DOD hasso far received 13 130 applications, of which


c h a p t e r 1 2

more than 2 000 were submitted to the Govern-ment Employee Pension Fund for payment.The verification of incorrect addresses as wellas incomplete application forms submitted byapplicants hampered the DOD in forwardingapplications. The manual calculation system ofthe Government Employees Pension Fund con-tributed to further delays and the Fund hasonly made payments to 62 members.Challenges:

Restructuring of Human Resources Functions.The Chief of the SANDF Instruction and thedecision of Plenary Defence Staff Councilwith regard to the restructuring of thehuman resources functions created a gapthat has had a major impact on the co-ordi-nation of activities. As a result some objec-tives were put on hold until a final decisionhas been made regarding restructuring.Final Force Design and Structure. A finalforce design and structure, as a firm base forplanning to acquire and provide personnel,is still in the process of being developed.This results in poor human resources servicedelivery, and is being addressed in theDefence Review update process, as well asthrough restructuring.Marketing, Recruiting and Selection Funds.The Human Resources Support Centreexperienced a lack of funds and supportduring marketing, recruiting and selectionprocesses at a national level, which nega-tively affects the staffing process.Personnel Maintenance Functions. The effec-tive and efficient execution of personnelmaintenance functions is difficult in theabsence of delegations and various DODpolicy prescripts.New SANDF Leave Dispensation. The imple-mentation of a new leave dispensation forSANDF members, without a computerisedleave system to support the execution of thisimplementation, is a challenge given thesize and volume of leave applications.Exit Mechanism. The absence of an exitmechanism for the Regular Force impactsnegatively on the Human ResourcesStrategy 2010. The rejuvenation of theRegular Force is subsequently negativelyaffected. It also hampers the attainment ofthe desired size of the Regular Force.Non-statutory Force Pension Project. Progresswith the finalisation of the administration ofthe non-statutory force pension project hasbeen delayed by the verification of incorrectaddresses as well as incorrect and incom-plete application forms of members who

have left the service of the DOD. The DODis currently addressing the issue of verifyingincorrect addresses with data received fromthe Government Employee Pension Fund aswell as other sources. The GovernmentEmployee Pension Fund is changing into acomputerised calculation system, whichwill expedite the payment of benefits.

J o i n t L o g i s t i c S e r v i c e sThe DOD Logistic Agency is responsible for providinglogistic services to the DOD.

Policy DevelopmentThe Status Report No 17 on the Manage-ment of Logistical Policy Publications wasupdated and distributed to the DOD toensure that all members are aware of thestatus of the various logistical policy publi-cations.The logistics policy on rations and meals todeployed Reserve Force members was com-pleted.

Ammunition Disposal Risk Management Plan.A clearly defined ammunition disposal riskmanagement plan was created. This has con-tributed towards ensuring ammunition safetyas well as the safety of members and nearbycommunities. This plan will be implementedduring FY2005/06. Codification System. The codification con-tract previously outsourced to Log Techexpired in September 2004. Thereafter theChief of Logistics was made responsible for thefunction. This will result in cost-effective andefficient service delivery. The process of capac-itating the DOD through training is well underway.Logistical Training. Chief of Logistics throughDirector Logistic Resource Management,which is its functional Education, Training andDevelopment Governing body, and the train-ing providers, managed to deliver effectivelogistical training.

The DOD School of Ammunition, DODSchool of Hospitality Services and the DODTechnical Training Centre have forwardedtheir intentions for, and are in the process ofpreparing for accreditation at theDiplomacy, Intelligence, Defence and TradeEducation and Training Authority (DIDTE-TA). Provisional accreditation was grantedto the DOD School of Logistical Training.The DOD School of Logistical Training andits satellite presented 114 Supply Supportlearning programmes that were attended by1 646 members. Only 125 learners, mostly inthe junior officers’ Junior Supply Support

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and Senior Supply Support learning pro-grammes, were found not yet competent asthey had not achieved the curricula outcomerequirements. 488 learners attended 55Computer-Aided Information System learn-ing programmes. 149 learners were foundnot yet competent, mostly in the MaterialManagement System, Shopfloor SchedulingControl System, Transport and First-lineUser learning programmes as a result oftheir not achieving curricula outcomerequirements. 43 learners attended fourLogistic Management System learning pro-grammes. Only seven did not complete theprogrammes successfully.Through the nodal point for Higher OrderLogistic Education, Training and Develop-ment 17 members in the Logistic Agencyattended the Southern African Institute ofGovernment Auditors courses on the PublicFinance Management Act. 25 members at-tended the certificate programme in Logis-tics at the University of Pretoria and 48members are enrolled for the NationalDiploma in Logistics management at theTshwane University of Technology. Twoprogrammes were presented during theyear to ensure competent facilitators/asses-sors to present Supply Support training.

Technical TrainingThe DOD School of Munitions presented, asplanned, four Learning Programmes thatwere attended by 176 learners. Only 12learners, mostly in the technical learningprogrammes, were found not competent asthey had not achieved the curricula out-comes requirements.

The DOD Technical Services TrainingCentre presented 41 advanced technicallearning programmes that were attended by357 learners. The Centre also managed 39learning programmes, which were attendedby 435 learners at external trainingproviders such as Colleges, Universities forTechnology and the industry.

68 Air School presented 1 learning pro-gramme as planned. The nine learners wereall found competent.

44 Parachute Regiment presented 2 learningprogrammes as planned. The 20 learnerswere all found competent.

The DOD Air Supply Unit presented onelearning programme that was attended byeight learners. A 100% competency rate wasachieved.

T a b l e 1 2 . 1 L a n d R e s t i t u t i o n b y t h e D e p a r t m e n t o f D e f e n c e

Province

Land Restored

Northern Cape (Riemvasmaak)

North West (Mosita)

Limpopo (Madimbo Corridor)

Western Cape (Wingfield)

Total

Land to be Restored

Limpopo (Madimbo Corridor)

Gauteng (Wallmansthal)

KwaZulu-Natal (St Lucia- Hell's Gate)

Total

Claimants Requested Alternative Compensation

North West (Farm Hazia - Zeerust)

Claimants Accepted Alternative Land

KwaZulu-Natal (Boschhoek)

Court Ruled that Land should not be Restored

Northern Cape (Lohatlha)

Information of Claim Recently Received

Limpopo (Air Force Base Hoedspruit)

Area (hectares)

98 509

4 043

1 500

42

104 094

24 800

1 628

26 750

53 178

413

3 380

158 000

3 705


c h a p t e r 1 2

The DOD School of Logistical Training pre-sented 5 Maintenance Management learn-ing programmes that were attended by 324learners. Only 28 learners, mostly in thetechnical learning programmes, were notyet found competent in that they did notachieve curricula outcomes requirements.

Rations and Meals. A policy was developedand promulgated in May 2004 on the supply ofrations and meals to the Reserve Forces. Thisnew policy has vastly improved the processesand procedures for supplying meals andrations to the Reserve Forces during deploy-ment.Restored Land. The DOD has already restoredan area of 104 000 hectares of land to claimants.The DOD is also currently in the process ofrestoring another area of 42 000 hectares toclaimants (see Table 12.1 for detail).Facilities (Fixed Assets) Management

Strategic Direction and Policy. An annualStrategic and Business Action Plan con-tributed to a focussed and co-ordinateddirection of activities.

Interdepartmental and StakeholderCommunication. The DOD providedboundary management and direction byestablishing communication structureswith the National Department of PublicWorks as the service provider of theDOD. Better understanding of estab-lished procedures and processes by bothdepartments contributed towards themore effective management of facilities.Identifying and Prioritising of Projects.Requirements were prioritised to meetthe demands of the DOD. Owing to ashortage of maintenance funds, DirectorFacilities acted as the centralised co-ordi-nator for the allocation of funds to theServices and Divisions. This ensuredthat allocated funds were optimallyutilised and that general consensus wasreached on the allocation thereof.Asset Management. The DOD utilisesthe Facilities Register System to recordall facilities under its control. This is adynamic system that needs updating ona continuous basis. The DOD undertookan upgrade of the system duringFY2004/05 to make it a more powerfulmanagement tool.Management of Programmes. Fixedassets projects were grouped under vari-ous programmes to ensure improved,efficient, effective and economic manage-ment of funds. The Programmes includ-

ed Capital Works, Planned andUnplanned Maintenance as well asRepair and Maintenance. More than a100% expenditure on projects wasachieved for FY2004/05 and all projectswere on schedule for completion.Through a hands-on management of pro-grammes, the DOD succeeded in keepingthe DOD high on the client list of theNational Department of Public Works.Capital Investments. An amount of Rm71 was allocated to finance capitalrequirements during FY2004/05. Anexpenditure of Rm 79 was achieved.This was a major improvement onFY2003/04 in which Rm 13 was under-spent. There were 30 major projects,including the upgrading of military hos-pitals, runways, communication towersand ablution facilities. There were 96minor projects, including the upgradingof minor requirements due to new func-tional demands or outdated building ele-ments, such as the replacement of sani-tary ware and ramps for the disabled.There were 38 projects, which addressedphysical security, such as the construc-tion of security fences, and the installa-tion of burglar proofing and securitygates to buildings. 88 projects wereundertaken to replace kitchen equip-ment.Maintenance of Facilities. In the yearunder review an amount of Rm 143 wasmade available for the maintenance offacilities. This amount fell short of therequired Rm 300. However, 100% expen-diture was achieved. Funds were spenton day-to-day requirements, such asleaking taps and burst water pipes aswell as maintenance to, for example,security systems at various bases, aircraftre-fuelling systems, fire detection andalarm systems.Quality Assurance. The DOD receivedoptimum benefit from its scarce mainte-nance and capital funds. This was pri-marily due to its professional architects,quantity surveyors and town plannerswho achieved this through the dedicatedand professional supervision of buildingprojects. The DOD ensured that buildingstandards were not compromised.Sourcing of Funds. The DOD was suc-cessful in sourcing an additional Rm 310spread over three years for the Repairand Maintenance Programme, although

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this fell short of the requested Rb 1.3. Thecapital investment projects received anincrease of Rm 8.

Environmental ManagementDOD Regional Environmental AdvisoryForums. Regional DOD EnvironmentalAdvisory Forums, involving numerousexternal role players, were established in theKwaZulu-Natal and Northern Capeprovinces. The purpose is to align theDOD's environmental programmes withexternal programmes and promote co-oper-ative governance.Water Efficiency. A trilateral co-operativegovernance forum on water efficiency in theDOD was established between the DOD, theDepartment of Water Affairs and Forestry,and the Department of Public Works. Goodprogress was made with the implementa-tion of Operation VUSELELA, the sub-pro-gramme of 'Working for Water', whichfocuses on the eradication of alien invasiveplants on DOD properties using unem-ployed military veterans.Environmental Awareness and Training.Environmental training was newly includedin the SA Army Junior Command and StaffProgramme. Environmental modules werealso presented at the Executive NationalSecurity Programme, Joint SeniorCommand and Staff Programme as well asthe Project Managers Course at theAcquisition and Procurement Division. AnEcological Management Course for trainingarea managers was developed and is beingpresented at the School for Logistics.Operations. Environmental Services hasbeen involved in the planning and executionof several exercises. This participation alsoserves as input into the development of poli-cies and procedures to support environmen-tal integration in operations. Co-operative Environmental ManagementStructures. The proceedings of the DODEnvironmental Audit Steering Committeewere concluded and the main issues identi-fied during the two audits which wereaddressed or are being addressed in otherprocesses. The DOD's way of dealing withthis first environmental audit was commu-nicated by the Auditor General's office to itsScandinavian counterpart, which served asa role model.Guidebook on Environmental Impact Assess-ment. The Guidebook on EnvironmentalImpact Assessment was developed underthe auspices of the RSA-USA Defence

Committee. The guidebook will be used forthe training of staffs and the empowermentof environmental managers at bases.Environmental Security Working Group.Environmental co-operation was main-tained with the USA DOD by means of theEnvironmental Security Working Group ofthe Defence Committee. Several co-opera-tive projects address aspects such as envi-ronmental impact assessment, environmen-tal training, integration of environmentalconsiderations in operations and wastemanagement. This co-operative programmecontributed substantially to military inte-grated environmental management in theDOD.DOD Environmental Video. An updated ver-sion of the DOD environmental video"Siyanakelela - We manage with care" wasproduced and will be available for useshortly. This video is used for communica-tion as well as training purposes.

ChallengesTechnical Governance Framework. There hasbeen an improvement in effectiveness, effi-ciency, economy and integrity within theDOD technical and engineering functionthrough the creation of a technical gover-nance framework for the DOD. This mayhave a collateral benefit for other govern-ment departments that also have significantasset inventories.Matériel Realignment. Changing the cultureof the 'silo' strategic management process inthe material function into a single integratedprocess is a challenge because the autonomyof Services and Divisions in this regard willcease to exist.Disposal of Category 2 Equipment. The lack ofprogress made with the disposal ofCategory 2 equipment is due to the delay inthe appointment of auctioneers. This hasresulted in the piling up of redundantequipment at SANDF units.Single Accounting System. The implementa-tion of a single accounting system(Operational Support Information System)over the short to medium term will be achallenge.Preparation for Migration to AccrualAccounting. The preparation and migrationof present asset accounting data to therequired standards as set by NationalTreasury pose a challenge in terms ofresources required.Transfer of Stores Administration Functions tothe Services. The effective and efficient trans-


c h a p t e r 1 2

fer of specific identified stores administra-tion functions back to the Services toenhance the control over such functions willbe a challenging task. It would serve tolessen the amount of negative audit findingsmade every year.Improvement of Stores Administration in theDOD. An improvement in stores adminis-tration in the DOD will ensure positive auditfindings.Registration of DOD Vehicles on the NationalTransport Information System. The registra-tion of all DOD vehicles on the NationalTransport Information System will initiallyslow down the disposal process until thebacklog has been worked away. A positiveaspect in this regard is that the control sys-tem over D-vehicles in the DOD will beimproved.Additional Funds to Address the MaintenanceBacklog. Only a small percentage of thefunds requested to address the maintenancebacklog was received. This could result inaccidents and claims against the State due tothe non-upgrading of dangerous facilities.Guidelines in clearing from Land of UnexplodedOrdnance. The DOD is still developing betterguidelines for clearing land of unexplodedordnance. The development of such guide-lines and the clearing of the land could takean extensive period, which would result indelaying the finalisation of land claims.Peace Support. The increased participation ofthe SANDF in peace support operations onthe African continent will put a strain on thelogistic support resources.Phasing out 93 Ammunition Depot by March2005. 93 Ammunition Depot will not beclosed down before 2015. From that dateonwards the depot may operate as a DODdemilitarisation plant. The current DODbudget allocation for this venture will not besufficient to finance all current standingobjectives of 93 Ammunition Depot.

C o m m a n d a n d M a n a g e m e n tI n f o r m a t i o n S y s t e m s 1

The Command and Management Information Systemssubdivision was entrusted with providing useable, time-ly and affordable information systems and services, andinformation and communications technology-(ICT)based solutions (capabilities) according to client specifi-cation, utilising Command and ManagementInformation.

Policy Development The DOD's Documentation Centre promul-gated a policy on the "Management of aSpecialised Reference and Research LibraryService for the Department of Defence" toaccompany the Joint Defence Publicationwith effect from 1 June 2004. The policy andprocedures contained in both documentswere fully implemented in all 43 DODlibraries.The Information and CommunicationSystem Security Policy was updated andwill be ready for distribution duringFY2005/06.The draft Information Warfare Strategy hasbeen completed and was distributed to allstakeholders for final comment.The Information Warfare Policy and MasterPlan was at an advanced stage and will becompleted in the next financial year.The process of compiling and updating theInformation Warfare Doctrine was also atan advanced stage of completion.

Joint Interoperability Test Centre. The provi-sion of a high frequency prediction capability,the maintenance of the combat network inter-operability standard (governance) and the pro-vision of a calibrated radio frequency testrange have been satisfactorily met. A requiredoperational capability as well as a DOD inter-operability strategy has emerged, and theintention is to establish a Joint InteroperabilityTest Centre.Information Warfare. Information warfaremanagement is now well established in theSANDF/DOD and boasts an InformationWarfare Directorate and an InformationWarfare Capability Board, which serve as theDepartment's controlling organs for allSANDF Services and Divisions. The threemajor areas of information warfare that arewell established are electronic warfare, net-work warfare and psychological operations.Information warfare training is of the utmostimportance to the DOD and this has resulted intraining programmes having been initiatedwithin the DOD's information warfare com-munity as well as in colleges and at theMilitary Academy. The Information WarfareStrategy has already been approved at thehighest departmental level.Field Post Office Services. Although 6 SignalRegiment's (Reserve Force capability) activitieswere hampered by a lack of funding, it still

1 "Command" includes 'Command, Control, Computers, Communication, Information, Intelligence, Reconnaissance andSurveillance (C4 I2 RS)'

c h a p t e r 1 2


managed to provide field post office services toAfrican mission deployments during the re-porting period.Command and Management InformationSystems Support. A wide range of internal andexternal DOD operations and force preparationevents were supported, which contributed tothe success of the DOD in both environmentsand the overall SADC / UN peacekeepingeffort. This included electronic warfare servic-es and products delivered to the DefenceIntelligence environment as well as crypto-graphic products and services that were deliv-ered to all State departments in the RSA.School of Signals. The School presented 49courses to 1 225 learners (83% pass rate) duringthe reporting period, retaining and expandingthe Command and Management InformationSystems capability of the DOD. It also receivedfull accreditation from the DIDTETA duringthe reporting period. The School is also amember of the current Information andCommunication Technology StandardsGenerating Body of South Africa, which is inthe process of developing standards for theentire information communication technologyindustry in South Africa.Upgrade of Vehicles. The upgrade of variousvehicles by industry commenced during thereporting period and will enhance the DOD'scapability in terms of Command andManagement Information Systems servicedelivery. Some of the Casspir vehicles havealready been upgraded and delivered to theCommand and Management InformationSystems Division. Telephone Management System. The imple-mentation of the new Telephone ManagementSystem in the DOD is aimed at reducing theDOD's overspending on its telephone call costsbudget. It is expected that the DOD will dras-tically reduce its spending on telephone callcosts expenditure.Challenges

Information Warfare Capability. There has tobe "buy-in" from the Services and Divisionsfor an integrated, interoperable and well-managed information warfare capability.To conduct information warfare in the DODrequires the Services and Divisions to man-age their own information warfare commit-tees. By doing so they will ensure that theycontrol and monitor the information war-fare capability within their Services andDivisions. Information warfare is not thecore business of Services and Divisions andit is thus neglected if not managed centrally.

Network Warfare Capability. This is necessaryto obtain a clear mandate for the establish-ment of a network warfare capability (offen-sive and defensive) for the DOD, as well asthe clarification of the roles and responsibil-ities between the Command andManagement Information Systems subdivi-sion and Defence Intelligence with respectto this matter. This is due to the custodian-ship that Defence Intelligence has withrespect to information security, of whichnetwork warfare forms an integral part, andwhich gives rise to boundary managementchallenges.Information and Communication SystemsSecurity Policy. This is needed to ensurecompliance with the Information andCommunication Systems Security Policythroughout the DOD. The monitoring of theimplementation of the policy requires thatqualified information systems security spe-cialists visit all DOD force employmentstructures. Non-adherence to the policy willresult in information loss and corruptionthat may lead to security breaches.Personnel and Equipment. The non-availabil-ity of sufficient personnel and signal equip-ment hampered operational support effortsin the external environment. Consequentlythe Command and ManagementInformation Systems support was not of thehighest possible standard.Vehicles and Facilities. The lack of funds toaccommodate all the needs of command andcontrol in the DOD resulted in neglect ofcontinuous maintenance in various environ-ments and it is foreseen that this will contin-ue into the next financial year. This will notimpact on the DOD in the short term and thefinancial effects will become visible in themedium to long term, as serviceableresources diminish. The main threat at thisstage is the status of Command andManagement Information Systems sub-divi-sion's vehicles and facilities.Health Status. The health status and the test-ing thereof posed a risk to the Commandand Management Information Systems sub-division, as a large number of people werenot fit for deployment. The testing processto classify members is not functioning effec-tively as turnover times for appointmentsare too long.Information Systems Security. The establish-ment of Comsec (Pty) Ltd has not beenfinalised and has had a negative impact oninformation systems security in the Public


c h a p t e r 1 2

Service. The road ahead is unknown, whichmake strategic planning as well as budget-ing extremely difficult.Staffing. The entire Command and Manage-ment Information Systems Division isunderstaffed and consequently a matter ofconcern. This situation is impacting nega-tively on service delivery to the DOD.

S e r v i c e C o r p sThe Service Corps is responsible for providing a demili-tarisation service to individual members of the DOD.

Project Military Veterans. This project, whichis funded by the National Skills Fund and man-aged by the DIDTETA for the training of 3 350military veterans, has finally taken off withmaximum participation of the Service Corps.German Donor. The Federal Republic of Ger-many is continuing to assist in training throughstructuring and running a training centre fortechnical training in the SANDF.SA Police Service Conversion Training. TheService Corps is participating as an enabler inpreparing DOD volunteers to transfer to the SAPolice and is providing the necessary drivertraining and providing the facilities for the con-version training. To date members of the DODhave undergone conversion and driver train-ing in preparation for their transfer to the SAPolice Service.Centre for Advanced Training Accommoda-tion. Completion of the Centre for Advanc-ed Training accommodation complex hasbeen a huge morale booster for the centre.Occupation of the complex commenced on1 April 2005.Adult Basic Education and Training. TheRegional Office Port Elizabeth, in conjunctionwith the Department of Education, is continu-ing to facilitate the basic reskilling of 68 servingPublic Service Act personnel through adultbasic education.Infrastructure Upgrade. Rm 1,5 has been allo-cated for the infrastructure upgrade of thePractical Business School Mankwe to accom-modate the SA Police Service, which will beutilising the facility for conversion training ofex-SANDF members. The Service Corps is con-tinuing its working relations with the NationalYouth Commission, the Department ofEducation and the Moses Kotane Municipalityin the North West Province for the training ofyouth in construction related fields at Mankwe.The trained youth are responsible for buildinghouses in 17 villages in the Moses Kotanemunicipal area and 735 houses have been com-pleted.

ChallengesClient Throughput Planning Forecasts. Thereis a lack of accurate planning forecasts interms of client throughput. This has had anadded implication in terms of the under-utilisation and possible loss of Germandonor funding not only in this financialyear, but also possibly within the medium-term expenditure framework.Business Process Architecture Definition. Theneed for a business process architecture def-inition of redeployment to demarcate theunique roles and responsibilities of the JointTraining Formation, the Service Corps,Human Resources Directorate PersonnelSeparation and the SA Military HealthService is necessary to ensure optimal exe-cution of all separation-related activities.Service Corps Business. This is currently notadequately supported by the required infor-mation systems, and a database is needed tocapture client and employer particulars.Optimal Capacitating of Service CorpsReskilling Capabilities. This is a challenge interms of the costs of facilities, training disci-plines and instructors due to the lowthroughput of members who undergoreskilling training. Continued donor fund-ing is also negatively affected by this state ofaffairs.Imperatives for Migration. The politicalimperatives for the initiation of the NationalService Corps Commission and the promul-gation of a Service Corps Act for a migratedService Corps are not in place and thisneeds to be enacted through the Office ofthe Minister of Defence. The migration ofthe Service Corps has been registered as aDOD project.German Donor Funding. German donorfunding of the Centre for Advanced Train-ing is dependent, inter alia, on showing thatlarge numbers of members are reskilled anddemobilised. A final attempt to re-initiatethe throughput of clients to be trained at theCentre for Advanced Training under theauspices of the German donor funding wasaddressed as a critical issue. The presentcontract for German donor funding expiresat the end of 2005. Funding for theInternational Computer Driver's Licencehas been terminated because the clients arebeing trained in a direction that does notcomply with the criteria for German donorfunding.Accreditation with the South African Quali-fications Authority. Although the Centre for

c h a p t e r 1 2


Advanced Training was provisionallyaccredited in September 2003, the problemis that the Service Corps could forfeit theaccreditation if it does not adhere to the pre-scripts and requirements. The major chal-lenge is funding, as the budget allocationdoes not allow for the centre to meet all therequirements for full accreditation.Employment Requirements for Clients.Training provided by the Service Corpstraining institutions is not adequate foremployment as the members are only quali-fied up to National Qualifications Frame-work level two when they complete thetraining. For clients to be employable in thelabour market further education and train-ing have to be provided for the clients tomeet the minimum requirement of aNational Qualifications Framework levelfour.Project POMPADOUR. Currently no officialService Corps database exists to administeror effectively link clients to possibleemployment. This project has to be reacti-vated and registered, as it will be an integralpart of a migrated organisation. It needs torun effectively parallel to current systemsfor it to be effective for a migrated organisa-tion.

J o i n t T r a i n i n gThe Joint Training Formation is required to provide theDOD with professional developmental and commonfunctional learning opportunities that are non-combatand non-mission related.

Executive National Security Programme. Twoplanned Executive National Security Program-mes were successfully presented by the SANational Defence College. 6 foreign learnersattended each of the 3 courses presented inFY04/05.Joint Senior Command and Staff Programme.The SA National War College completed itsthird Joint Senior Command and StaffProgramme at its new location (the formerBoulevard Hotel in Pretoria) on 26 November2004. In spite of a lack of human resources dueto the structure having not been approved yet,96 of the initial 100 learners successfully com-pleted the programme.War Simulation Centre. The War SimulationCentre became part of the SA National WarCollege on 1 November 2004 in support of theJoint Senior Command and Staff Programmeand through its provision of simulation train-ing to other clients in the SANDF. A total of 21simulation exercises were successfully com-

pleted, which included exercises for Chief JointOperations in preparation for deployment tothe Democratic Republic of the Congo andBurundi, Chief Joint Training, Reserve Forceelements as well as for the SA Army at the WarSimulation Centre and at different locations inSouth Africa.Military Academy. The profile of the academ-ic staff at the Military Academy indicatessteady advances with respect to the transfor-mation of its demographic profile. Over thelast five years 70% of the new academic staffappointments were from the black designatedgroups. Innovative strategies with respect tothe management structures have further result-ed in the meaningful representation of all des-ignated groups. Of 170 Military SkillsDevelopment System learners, 80% haveachieved the required standards for a certifi-cate as set out in the curriculum. Four Trainingof Trainer Programmes (five modules each) atNational Qualifications Framework levels fourand five were presented, which is two morethan was planned for. Also, five South AfricanQualifications Authority-accredited opportuni-ties on National Qualifications Frameworklevel five (two Assessors Programmes) werepresented as planned. Six learning programmeassessments took place, exceeding the plannednumber.Policy Development. The DOD Instruction onManagement of Learner Assessment draftedby education, training and developmentproviders in the DOD was promulgated inNovember 2004, as was the DOD Instructionand Joint Defence Publication on GeneralEducation and Training, Further Educationand Training, and Higher Education andTraining. This DOD Instruction has beenpromulgated and is being adhered to. TheStatus Report No 17 on the Management ofLogistical Policy Publications was updated anddistributed to the DOD to ensure that all mem-bers are aware of the status of the various logis-tical policy publications. The logistics policyon rations and meals to deployed ReserveForce members was completed.Challenges. The establishment of the AfricanCentre for Defence and Security Leadership atthe Military Academy could not be pursuedfurther owing to a lack of funding. The currentcontract with Stellenbosch University must bereassessed and revised if necessary.

M i l i t a r y P o l i c eThe Military Police Agency is responsible for providinga military policing capability to the DOD.


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Military Police Agency support to PeaceSupport Operations. Although the MilitaryPolice Agency did not structure for the increasein the requirements of peace support opera-tions, the Agency continued to provide a serv-ice of high quality by utilising Military PoliceAgency members from structures other thanthose of its operational capability. The MilitaryPolice Agency is also currently utilising non-staffed Military Police Agency personnel toaddress the inadequate structuring of MilitaryPolice support during peace support opera-tions.Crime Prevention Operations. All four MilitaryPolice Agency regions are conducting concert-ed crime prevention operations with their ownforces, as well as in conjunction with SA PoliceService and Metro Police Services in variousprovinces and considerable successes havebeen achieved.Search Activities at Air Force Base Water-kloof. The Military Police Agency had to estab-lish an interim section at Air Force BaseWaterkloof Movements to address theincreased requirement for the searching of air-craft leaving for and departing from Burundiand the Democratic Republic of the Congo.The Northern Military Police Region (mostly13 Provost Company) achieved several suc-cesses.Other Successes. The Military Police Agencyretrieved stolen equipment to the value of R1008 746 on its own, issued traffic fines to thevalue of R210 850, and arrested 353 militarymembers, 168 DOD employees, 54 civilianmembers and 443 undocumented persons dur-ing the past financial year. 45 military mem-bers were convicted in criminal cases, likewise15 military members in disciplinary cases, 11employees in criminal cases and 31 membersfor road traffic offences. The Military PoliceAgency took part in 357 sweep-and-searchoperations in support of the SA Police Serviceand other law enforcement agencies.

ChallengesInitiative on the Replacement of MambaVehicles. The replacement of the Mambavehicles with 4x4 soft-skin light tacticalvehicles is a very costly initiative andrequires huge financial assistance.Electronic Crime Administration System. TheCrime Administration System has now beenimplemented in all Military Police Regions,except three Military Police Area Offices,namely Louis Trichardt, Kroonstad andUmtata due to the unavailability of theLocal Area Network. The end of 2005should see the complete implementation ofthe Crime Administration System at the lat-ter three offices. Owing to a breakdown ofold technology at the Military PoliceAgency, the Crime Administration Systemconnection between the DOD and SA PoliceService ceased to exist on 7 February 2005.The result is that the Military Police Agencyis unable to render a professional service tothe DOD and other Government organisa-tions.Military Police Agency Structure. After anorganisation and work study investigationit was recommended that the Military PoliceAgency structure be redesigned. This criti-cal requirement was brought to the atten-tion of the DOD top structures. As an inter-im measure, the Military Police Agencycommitted significant financial resources toensure that capable members were sent ondetached duty to combat criminality at thestructures that the Military Police Agencydid not structure for, eg at Grahamstownand Ellisras. These interim structures donot have approved posts and it is affectingthe morale of members who are managingthese offices.

O T H E R O U T P U T S P R O D U C E DThe other outputs that were achieved for the DOD areindicated in Table 12.2.

T a b l e 1 2 . 2 O t h e r O u t p u t s P r o d u c e d b y t h e J o i n t S u p p o r t D i v i s i o n


Support to Peace Support Operations

Provision of a National Codification System Support service

Integrated Financial Management System user requirements Process Review

Investigation into D-Vehicle availability in the DOD

Investigation into unsafe ammunition at 93 Ammunition Depot

Results

Achieved

Achieved

Achieved

Partially Achieved

Partially Achieved

Service Recipient

Chief of Joint Operations

DOD and designated Government clients

DOD

DOD

DOD

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T a b l e 1 2 . 2 O t h e r O u t p u t s P r o d u c e d b y t h e J o i n t S u p p o r t D i v i s i o n ( c o n t i n u e d )


Product System Support for integrative universal products / services / systems

Implementation of the Firearm Control Act in collaboration with the SA Police Service

Integrated financial management system for the State

Establishment of DOD Regional Environmental Advisory Forums

Environmental awareness and training

Guidebook on Environmental Impact Assessment

Interdepartmental transfer of SANDF members to the SAPS

Development and sustainment of information system security capabilities for the entire Public Service

Provision of a Joint Interoperability Test Centre

Establishment of the Information Warfare Command Board

Command Management Information System support

Implementation of a Telephone Management System

Developing a Planning and Costing Enabler

Crime prevention operations

Implementation of an electronic crime administration service

Project Military Veterans

SA Police Service conversion training

Adult Basic Education and Training

Presented Joint Learning Opportunities

Results

Achieved

Partially Achieved

Partially Achieved

Achieved

Achieved

Achieved

Achieved

Achieved

Achieved

Achieved

Achieved

Achieved

Partially Achieved

Achieved

Partially Achieved

Partially Achieved

Achieved

Achieved

Achieved

Service Recipient

DOD

DOD

DOD

DOD

DOD

DOD

SANDF

DOD and Public Service

DOD

DOD

DOD

DOD

DOD

DOD

DOD

DOD

SANDF

DOD

DOD

O T H E R D I V I S I O N A L O U T P U T S I NS U P P O R T O F G O V E R N M E N T In support of the International Relations, Peace andStability Cluster's objectives the Joint Support Divisionsupported the African Renaissance ideal by participat-ing as follows:

Participation in the Inter-State Defence andSecurity Committee

The Command and Management Infor-mation Systems Division participated in theInter-state Defence and Security Com-mit-tee's Telecommunications and InformationSystems Work Group. Activi-ties of thiswork group are to roll out the Inter-stateand Defence Security Committee opera-tional Hotline Network and prepare aTelecommunications Planning Manual forthe South African Development CommunityStandby Brigade. The DOD Logistic Agency participated inthe Logistic sub-workgroup of the Inter-state and Defence Security Committeewhich has developed the conceptual frame-work for logistical support to the SADCBrigade.

Support to Peacekeeping Operations in CentralAfrica

The Command and Management Informa-tion Systems subdivision provided rear linksatellite communications, information andcommunication technology and generatormaintenance support for the deployedSANDF peacekeeping elements in CentralAfrica.The DOD Logistic Support Formation isresponsible for the link between the theatreof operations and the base areas during cur-rent peace missions. This entailed the provi-sion of a logistic system for the mission andincluded the handling of service unique sup-port systems in transit. Static as well asmobile deeper level support dependedheavily on outsourcing for the medium tolong-term to enhance the SANDF's capabili-ties. Maintenance of vehicles and informa-tion system services were outsourced. Thisis to ensure cost-effective support to forcepreparation units / headquarters and forceemployment units / headquarters.Maintenance of Border Control Radios in


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Neighbouring States. 2 Signals Regiment, asubstructure of the Command andManagement Information Systems Division,provided preventative maintenance on thehigh frequency radio equipment installed inMozambique and Swaziland. These radiosare used for cross-border liaison and crimeprevention.Donation of High Frequency Radios. Plans forthe SA Government to donate high frequen-cy radios to the secondary hotline networkare under way. The Defence Chiefs of theInter-state and Defence Security Committeehave ratified this donation, but before thiscould actually take place, approval at vari-ous levels (within the DOD andGovernment) is required. This donation hasbecome necessary owing to a lack of donorfunds to acquire the desired high frequencyradios.In support of the Justice, Crime Preventionand Security Cluster the Joint SupportDivision participated in the implementationof the Firearms Control Act in collaborationwith the SA Police Service. Because of theimpact of the Act on the DOD, Chief ofLogistics established a project team toimplement the Act in collaboration with theSA Police Service from June 2005.In support of the Governance and Adminis-tration Cluster the Joint Support Divisionparticipated as follows to improve servicedelivery:

Interdepartmental Transfers. TheHuman Resources Support Centre wasactively involved in the interdepartmen-tal transfer of South African NationalDefence Force members to the SA PoliceService. Under Project PILLAY the inter-departmental transfer of DOD LogisticSupport Formation's members to the SAPolice Service took place.Diplomacy, Intelligence, Defence andTrade Education and Training Autho-rity (DIDTETA). Chief of Joint Trainingis the Vice-Chairperson of the DIDTETABoard representing the interests of theDOD.

Information System Security. The Command

and Management Information Systems sub-division is responsible for the developmentand sustainment of the information systemsecurity capabilities of the entire PublicService. The organisation charged with thisresponsibility is the South AfricanCommunication Security Agency.Fire and Rescue. The DOD Logistic Agencytook part in the Legislative Committee of theFire Brigade Services Board under theDepartment of Provincial and LocalGovernment tasked with the rewriting of theFire Brigade Services Act.Joint Management of Incidents involvingChemical or Biological Agents or RadioactiveMaterials Manual. This manual, of whichsome members of the DOD Logistic Agencywere co-authors, is now approved as a nation-al standard by the Department of Provincialand Local Government (Disaster Management)for the management of incidents in the RSA.Restitution of Land Claims. The DOD LogisticAgency is supporting the restitution of landclaims by co-ordinating the clearance of unex-ploded ordnance and land identified for resti-tution.Public-Private Partnership for DOD D-Vehicles. In support of the NationalDepartment of Transport's investigation intothe outsourcing of government vehicles, a pub-lic-private partnership was registered in termsof the applicable Treasury Regulation at theNational Treasury on 30 November 2004. TheDOD Logistic Agency compiled the Terms ofReference, which was handed to NationalTreasury on 2 January 2005. The DOD is atpresent awaiting the appointment of the trans-actional advisers, whereafter the investigationwill be initiated.Integrated Financial Management System.Owing to new requirements set in the FinancialReporting environment, the National Treasurydecided to develop an Integrated FinancialManagement System for the Government. Thissystem will have a direct influence on DODlogistic systems and therefore the DODLogistic fraternity has been intensivelyinvolved with National Treasury in the draw-ing up of the scope.

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UTILISATION OF CONSULTANTS

he use of consultants was asindicated below per Pro-gramme and/or Sub-pro-gramme.T

T a b l e A . 1 R e p o r t o n C o n s u l t a n t A p p o i n t m e n t s U s i n g A p p r o p r i a t e d F u n d s d u r i n g F Y 2 0 0 4 / 0 5

Programme

DefenceAdministration(CorporateStaff Division)

DefenceAdministration(Policy andPlanning)

DefenceAdministration(Policy andPlanning)

DefenceAdministration(DefenceInspectorate)

Air Defence

Joint Support

ContractValue in

Rand

R9 000

R1 328 000

R169 603.50

R20 000.00

R22 902

R5 000 000

Total Number ofConsultants that

Worked onProject

1

2

6

2

3

9

Project Title

Refocusing of Chaplain Services

To provide business archi-tectural services as speci-fied within the businessagreement with SITA

Departmental Acquisition and Procurement DivisionStructural Investigation

Strategic support to Defence Inspectorate

Annual Environment (Test flight and DevelopmentCentre). Revision andInternational StandardsOrganisation 14001 Audits

Information Warfare assis-tance Programme for theDOD

Name of Consultant

Institute for Justice and Reconciliation

SITA

Messrs Catella (Pty) Ltd

Global Conformity Services

Global Conformity Services

Council for Scientific and Industrial Research (not fulltime with specific referenceto DefenceTek).

DurationWork Days

6

Permanentas per

agreementwith SITA

52

14

8

67


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Ta b l e A . 1 R e p o r t o n C o n s u l t a n t A p p o i n t m e n t s U s i n g A p p r o p r i a t e d F u n d s d u r i n g F Y 2 0 0 4 / 0 5 ( c o n t i n u e d )

Programme

Joint Support

Joint Support

ContractValue in

Rand

R32 000

R80 000

Total Number ofConsultants that

Worked onProject

1

1

Project Title

Review Product System Management Manual

Investigation into the RSAMilitary Standards regard-ing WorkmanshipStandards

Name of Consultant

Defencetek

LMT with support of ARMSCOR project leader

DurationWork Days

3

7

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b u i l d i n g a S o u t hA f r i c a t h a t t r u e l yb e l o n g s t o a l lD E P A R T M E N T :D E F E N C E

SERVICE DELIVERY IMPROVEMENT


he Secretary for Defencestrongly believes thatthrough proper trainingand relevant exposure,service delivery and effi-ciency could be im-proved and costs re-T

duced. It is against this background thatthe Department of Defence (DOD)invests heavily in granting opportuni-ties to study at State expense and pro-vides opportunities in competencyenhancement courses that are offeredby high profile institutions both inter-nally and abroad.

The DOD subscribes to and applies allthe Batho Pele (People First) principles(consultation, service standards, ac-cess, courtesy, information, transpar-ency, redress and value for money) ascaptured in the Batho Pele Handbookand further confirmed in the WhitePaper on Transforming the PublicService. There is a firm belief that theDOD should be exemplary in itsapproach to providing a service to itsstakeholders.

During FY2004/05 service deliveryimprovement measures were imple-mented by programme and sub-pro-gramme, namely;

D E F E N C EA D M I N I S T R A T I O N

P o l i c y a n d P l a n n i n g D i v i s i o nThe structure of the Division was beinganalysed with a view to augmenting itscapacity and to improve service deliv-ery.

In the year under review, the divisionmade some strides in incorporating theBatho Pele principle in its businessprocesses. The improvement includesthe following:

Ensuring that human resource(HR) management practices ofthe Division are people cen-tred.DOD Labour and ServiceRelations Co-ordinating Fo-rum. The DOD Labour andService Relations Co-ordinat-ing Forum was established toserve as a co-ordinating bodyon labour and service relatedmatters. The forum also analy-ses the regulatory frameworkand inputs from other Stated e p a r t m e n t s / i n s t i t u -tions/NGOs and the implica-tions thereof for the DOD. Theforum also monitors tenden-cies and trends regardinglabour and service relationrelated matters.


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HR Strategy 2010. The implementation plan ofHR Strategy 2010 has been approved. TheServices and Division co-ordinating authoritiesare applying themselves to give effect to theobjectives noted in the plan.HR Management Strategy. A comprehensiveHR Management Strategy was developed forthe DOD. The objectives of the strategy aredivided into four clusters of which one of theclusters has as its aim to improve HR manage-ment service delivery. This strategy will there-fore form an important base to improve servicedelivery within the total DOD HR environ-ment.Batho Pele. The Directorate HR Planningorchestrated the development of a detailedDOD HR Management Strategy to support theexecution of the DOD's mission. The strategy's61 objectives address:

HR management governance and structur-ing.HR management capacity generation.HR management service delivery.HR management operational conduct.HR management system renewal issues.

Through this strategy, the DOD's human resource func-tion will contribute to the eight principles of consulta-tion, service standards, access, courtesy, information,transparency, redress and value for money espoused bythe State's Batho Pele policy.

Director HR Policy Management developed a policy onthe promotion and implementation of Batho Pele princi-ples in the DOD based on the Department of PublicService and Administration's policy for Government.

HR Policy Audit Advisory Work Group: The DOD'sHR Policy Advisory Work Group was established toserve as a co-ordinating and advisory body facilitatingthe auditing of HR policies in identifying domainswhere they are absent, insufficient or outdated.

Chief Director Strategic Management was instrumentalin the implementation of the strategic planning course.This course will be presented biannually and 20 vacan-cies are reserved for members of the Defence Secretariat.

The Directorate Legal Services has finalised four litiga-tion matters over the reporting period.

F i n a n c i a l M a n a g e m e n t D i v i s i o nThe Financial Management Division follows a concept ofservice delivery that satisfies the financial managementrequirements of its principals, clients and personnelthrough the delivery of financial management servicesthat comply with the public financial management regu-

latory framework. This concept guides the FinancialManagement Division strategic business plan and itsexecution. Service delivery is made manifest in a formalService Charter and related service agreements withclients. Service delivery is evaluated against the stan-dards contained therein.

D e p a r t m e n t a l A c q u i s i t i o n a n dP r o c u r e m e n t D i v i s i o nVehicle Disposal Project. An Integrated Project Teamwas formed to fast-track the disposal of identified B-Vehicles at General Support Base Pietersburg. Themeetings were held on a weekly basis and were attend-ed by a large number of representatives from the ArmyOffice, Logistic Division, General Support BasePietersburg, Logistic Support Formation and ARMS-COR Business. It is the intention of the IntegratedProject Team to identify the vehicles at General SupportBase Pietersburg during the first quarter of FY2005/06.

Requirements Forum. During a meeting with represen-tatives from Services and the Logistic Division the needfor a forum to co-ordinate and vet requirements to beprocured was discussed. This will ensure that therequirements are proper in their requirement statementsand that requirements submitted to the NationalTreasury or ARMSCOR can be monitored.

Alternative Service Delivery. A presentation byNational Treasury to the Departmental CommercialProcurement Board was arranged to ensure that theboard members have a proper understanding of the dif-ferences between conventional procurement and thepublic-private partnership procurement process. Thesmooth movement of public-private partnership docu-ments through the office of the Secretary for Defence toNational Treasury is essential to the success of any pub-lic-private partnership.

Supply Chain Management Course. Eighteen mem-bers of the Central Procurement Service Centre have hada chance of attending the Supply Chain Managementcourse presented by National Treasury. This is a posi-tive step in the direction of service delivery improve-ment.

Inspector-General Department of Defence (IG DOD)Inspections. Assistance was provided to staff of theInspector-General DOD on their reports on inspectionsdone at the various General Support Base ProcurementSections. This is the first time in approximately 24 yearsthat a comprehensive inspection was done on procure-ment and the results are extremely valuable. Theinspectors were met after the inspections, during whichtheir findings were discussed and certain feedback pro-vided to assist in improved inspections and interpreta-tion of policy. The reports indicated that there were

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problems at the various procurement entities, of whichthe following 2 were prominent at all of them:

Structures at procurement entities were incom-plete and required adjustments.Procurement structures were not fully staffed.

Auditor-General Audits. The Auditor-General com-pleted audits at a restricted number of procurement enti-ties within the DOD, which were not as comprehensiveas the inspections done by the Inspector-General DOD.However, it assisted in and provided a different per-spective on what was being performed within the DOD,with a number of housekeeping matters to be attendedto at the lowest level.

Accreditation of ERGOTECH. The accreditation ofERGOTECH the technology development supportDefence Evaluation and Research Institute, with ISO9001 qualification by the South African Bureau ofStandards was achieved during 2004.

Technology Planning Conference. The annual technol-ogy planning conference was held at the BotanicalGardens on 17 September 2004 to ensure that funds pro-vided for projects were appropriate and justifiable. Aseminar on Media Health Technology, part of the SUP-PORT programme, held on 12 November 2004, permit-ted good interaction with senior SA Military MilitaryHealth Service staff on the definition and growth of thisimportant new technology development.

Technology Development Summary Programme Plan.Presentation of the Technology Development SummaryProgramme Plan to the Operations Staff Council on8 February 2005 fostered a better understanding of the

Technology Acquisition Management System andProjects.

D e f e n c e I n s p e c t o r a t eThe quality of service delivery by the Directorates hasbeen maintained and the fact verified by an externalaudit in terms of ISO 9001: 2000 by the South AfricanBureau of Standards. Improving and updating the qual-ity manual for the third time improved the quality ofservice delivery. The maintenance of the quality man-agement certification for two years in a row is proofenough that the principles of Batho Pele are beingadhered to. Furthermore, the implementation of a stan-dard framework against which audit findings arereported is far advanced and should result in improvedcommunication with the Directorate's clients.Implementation of the TeamMate automated reportingsoftware will allow for a superior audit reporting andthe analysis of audit findings, to determine and rep orton trends.

C O M M A N D A N D C O N T R O LVideo Conference System. A Video Conference Systembetween the Operational Level Headquarters (Pretoria),Operation FIBRE in Burundi and Operation MISTRALin the Democratic Republic of the Congo was installed.Command and control has already improved since theGeneral Officer Commanding Joint OperationalHeadquarters will be directly involved in the decision-making process, thus increasing productivity.

S A A R M YCorrective measures/measures to improve perform-ance/measures to effect savings undertaken during theperiod under review are reflected in Table B.1.

T a b l e B . 1 S e r v i c e D e l i v e r y I m p r o v e m e n t s a n d M a n a g e m e n t I n t e r v e n t i o n s

Savings on S&T related costs

Improved performance and cost reductions

Savings due to improved planning, budgeting andprocurement practices

Proactive actions to prevent the non-achievement ofobjectives and the damage& loss of resources

Continuous performance improvement

Current/Continuous

Concluded

Current/Continuous

Current/Continuous

Current/Continuous

Command and Control

Organisational Development (Renewal)

Resource Management

Risk Management

South African Excellence Model

Staff visits synchronised with other activities that also require supervisionand control

Centralisation of the Renewal function within Chief DirectorateCorporate Services (Sub-programmeStrategic Direction)

Presentation of Resource Manage-ment courses to Level 4Commanders

Implementation of Risk Management at the Army Council, as well as Level2 to Level 4 of the SA Army

Implementation of the South African Excellence Model

Result/Anticipated BenefitStatusFocus Area Management Interventions


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S A A I R F O R C ERealignment of Logistical Support. The realignmentof logistic support is ongoing and this is expected toresult in significant savings in the future. These savingswill be applied towards improving systems and infra-structure integrity. Realignment within the SystemGroups has been completed and the new structures areawaiting approval. The second phase will involve theAir servicing units and the bases. The realignmenteffort has also been expanded to address the manageri-al disciplines to realign on service delivery and systemintegrity.

Contract Review Committee. A Contract ReviewCommittee has been constituted with the purpose ofreviewing, and adjusting where necessary, all contractsfor outsourced services and support. This is donethrough a process of assessing user requirements, thecontracted deliverables, and the overall value formoney provided by the contracts. As the ContractReview Committee reviewed contracts it was discov-ered that Air Force guidelines were lacking regardingprocurement contracting. An Air Force Instruction andan Air Force Manual have been drafted in this regard.

T a b l e B . 1 S e r v i c e D e l i v e r y I m p r o v e m e n t s a n d M a n a g e m e n t I n t e r v e n t i o n s ( c o n t i n u e d )

Financial return from dis-posal. Better control oversmaller vehicle fleets andweapon stores

Savings on S&T related costs

Testing of drivers made easier and more effective

Savings on contracting external personnel

Reduction in criminality as well as a reduction in dam-ages and losses

Improved service delivery

A more affordable force design and improved com-mand and control

Enhanced operational command and control andimproved moral

Current/Continuous

Current/Continuous

Concluded

Current/Continuous

Current/Continuous

Current/Continuous

Current/Continuous

Concluded

Disposal

Managing Allowances

Driving and MaintenanceTraining

Day-to-day Base Maintenance

Military Security

Service Delivery at General Support Bases/Army SupportBases

Closing down of the Group Headquarters andCommandos

Brigade Headquarters Organisation

Disposal of obsolete/redundant equipment

Issuing of food parcels instead of S&T to members transported to 1 Military Hospital for medical atten-tion/ appointments

Building of yard test facility at School of Armour

Utilisation of uniformed members to do base maintenance work

Installation of alarm systems and closed circuit television equipment atvarious priority units

Liaison between Director Facility Management at Chief of Logisticsand Director Army Logistics has beenimproved with a view to increasingservice delivery at General SupportBases and Army Support Bases

Restructuring/closing down of Group Headquarters and commandos inaccordance with the SA Army's corefunctions and affordability

Expansion of the Brigade Head-quarters structures from two TacticalHeadquarters to four TacticalHeadquarters

Result/Anticipated BenefitStatusFocus Area Management Interventions

The Contract Review Committee has provided invalu-able guidance for the System Groups with respect tocontract management.

Alternate Service Delivery Programmes. The establish-ment of Alternate Service Delivery programmes hasproved to be substantially more involved and time-con-suming than originally expected. A team has beenappointed on a full-time basis to manage the AlternateService Delivery initiatives. The Air Base Strategy hasbeen approved and Chief Logistics will be approachingthe Department of Public Works to seek approval forimplementation of the Alternate Service Deliveryaspects of the strategy. The strategy provides a roadmap for the cost-effective ownership of all SA Air Forceair bases, and creates a framework for the implementa-tion of mutually beneficial alternate service deliverybusiness models. Extensive research has been per-formed in identifying candidates for Alternate ServiceDelivery to the SA Air Force.

Core Values. The SA Air Force has identified the impor-tance of establishing a culture of air power excellence insupport of Vision 2012. The Air Force Board has man-

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dated an initiative to instil the values of Integrity,Human Dignity, Excellence in All We Do, and ServiceBefore Self into each Air Force member. In support ofthis effort, Directorate Management and RenewalServices initiated various interventions to bring aboutthis change, including the production of a video on thenew Air Force values, which was shown to all membersduring an extended roadshow.

South African Excellence Module Training. This pro-gramme reinforced an awareness of continuousimprovement with the emphasis on excellence.Currently a total of 1 069 members have been trained inthis discipline and fourteen programmes were present-ed during the year.

Models for Leadership. This programme creates anawareness, introspection and competence orientationwith an emphasis on collaboration, commitment andcreativity. A total number of 476 members have com-pleted the programme and nineteen programmes werepresented during the year.

Leadership Development. With the challenges andhigh demands placed on every airman it is imperative todevelop leaders to their full leadership potential. Thefull range leadership programme equips leaders with athorough understanding of how to develop skills and topossess attributes that are required to function at thehighest level of leadership. A unique leadership pro-gramme was developed for the SA Air Force, based onthese transformational principles that form an integrat-ed part of management and leadership training anddevelopment at the SA Air Force College. This pro-gramme has been fully integrated into the SeniorSupervisor Course curricula.

Customer Service Programme. Service delivery in theSA Air Force is one of the most important requirementswithin a flying environment. A new unique servicedelivery programme has been developed with the pur-pose of educating SA Air Force personnel in this regard.This programme will soon be launched throughout theSA Air Force.

Succession Planning. Formal succession planning,placement and fast-tracking sessions have been institut-ed to improve the career management of all SA Air Forcemembers in the DOD.

S A N A V YSeveral service delivery improvements have been initi-ated in the SA Navy. These are all aimed at reducingcosts and optimising resources, while maintaining orimproving the required service delivery standards:

Subprogramme: Maritime Direction Capabili-ty. The Fleet Process Improvement Program-

me continued with independent adjudicatorsto evaluate the submissions and ideas receivedfrom members of the Fleet for improvementsand savings in the SA Navy. Independentadjudicators allocated the R250 000 providedas a reward for deserving suggestions andideas submitted. The winning teams wereadjudged to have saved the SA Navy a total ofR20 582 319.Subprogramme: Maritime Combat Capability

The Combat-readiness/Effectiveness Modelknown as the Impact Change Evaluator isbeing developed to measure system effec-tiveness on a continuous and consistentbasis for the deployable units in the SANavy. It is currently being used as a man-agement tool for level 2 - 4 users.The Miss Distance Indicator was designedto assist in the testing and evaluation ofmunitions. It establishes how far each pro-jectile missed a target, thus making it possi-ble to reduce the number of firings and tar-gets, and so save considerably on the cost offused ammunition.

Subprogramme: Maritime Logistics Capabili-ty. The Operation Support InformationSystem has proved to be more reliable than theUnit Inventory Management System, and theroll-out of the Operation Support InformationSystem as a fully integrated logistics informa-tion system will introduce much higher dataintegrity and a marked improvement in theperformance of logistic processes.Subprogramme: Maritime Training Capability

Project SCREWDRIVER, the rationalisationof the training units in the SA Navy will,through thorough investigation, establishthe actual future requirements for technicaland functional training in the SA Navy.Web technology encompassing the humanresources processes in the SA Navy,referred to as dot Navy, is being implement-ed and will lead to the improvement of dataintegrity on the PERSOL system.Decommissioned Reserve Force units result-ed in the utilisation of Reserve Force per-sonnel in regular posts to cover vacant postsor situations where Regular Force memberswere on leave or sick. This new system willlead to increased productivity in the SANavy.

All naval training units are in the process of beingaccredited as service providers according to SAQualifications Authority standards. Tactical trainingsimulators were introduced in FY2004/05 in the SANavy for all Combat Officer Qualifying and Weapons


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Engineering Officer courses at the Maritime WarfareTraining Centre.

J O I N T S U P P O R T4x4 Light Delivery Van Project. One hundred and ten4 x 4 Troop Pack Light Delivery Vehicles and thirteen4 x 4 Police vans were delivered during the reportingperiod. This resulted in a major improvement in opera-tional serviceability and mobility leading to increasedoperational successes.

D-vehicle Maintenance and Repair Contracts. Con-tracts were negotiated with local suppliers in Burundi toalleviate problems regarding the maintenance of D-vehi-cles in the external environment.

Warrior Tents. The Joint Operations Division procured60 Warrior tents of which 42 were delivered in thereporting period. The commissioning of this tent systemhas improved the living conditions of the troopsdeployed internally.

Kitchen Containers. Two containers were procured foroperational testing in the Democratic Republic of Congo.These electric powered kitchen containers will replacethe old 250-man gas operated cookers. These containershave the capacity to serve 400 persons with warm meals.The kitchen containers project will be expanded toinclude refrigeration containers and ablution facilities.

Protective Clothing. Protective clothing (thermal glovesand socks) was procured for the members deployedalong the Lesotho Border. This mission unique uniformwill improve the comfort of the members in the severeclimatic conditions and therefore their productivity.

Planning and Costing Enabler. An activity based plan-ning and costing enabler prototype was developed bythe Command and Management Information SystemsDivision. The enabler has the ability not only to ease theplanning and budgeting process, but also to enable moreaccurate costing of activities to be made and to obtainrelevant management information for quick decision-making purposes. This enabler will be further devel-oped by the Command and Management InformationSystems Division as a DOD planning and budgetingsolution.

Vehicle Upgrades. The project to upgrade theCommand and Management Information SystemsDivision's vehicles, especially the Casspir range, hascommenced during the reporting period and certainfinal products have been delivered. The project willimprove command and management information-relat-ed service delivery to the DOD.

Reserve Force Capability. The establishment of new

Command and Management Information SystemsDivision Reserve Force structures throughout the RSAwill increase the secondary capability of the Commandand Management Information Systems Division in thatReserve capabilities will be readily available to the DODin future.

International Benchmarking. Members of theCommand and Management Information SystemsDivision (Operations Formation) participated inExercise COMBINED ENDEAVOUR to enhance theDOD interoperability with other defence forces. Thiswill enhance the Command and ManagementInformation Systems Division's capability as far as inter-national joint operations / exercises in future are con-cerned. This initiative will also position the DOD tocompete with other defence forces, although the DOD isstill technologically disadvantaged compared to the restof the world.

Defence Intelligence Diplomacy Trade EducationTraining Authority Accreditation. The accreditation ofthe School of Signals to the Defence IntelligenceDiplomacy Trade Education Training Authority hasenhanced the level of training in that the Command andManagement Information Systems Division has to com-ply with minimum standards. This enables the DOD topresent quality training and thus enhance human com-petencies.

Improvement of Library Services. The "BusinessExcellence Model" was implemented in the DODlibraries to improve service delivery to clients.Although the outcome is not visible yet, it is expectedthat this intervention will contribute to more effectivelibrary services in future.

Optimisation of Command and Management Informa-tion Services. Service delivery improved visibly at the18 Regional Service Centres through the implementationof better management practices with respect to "routineactivities" as well as the implementation of fault report-ing procedures through the information technologybased "call desk" system.

Telephone Management System. The implementationof the new Telephone Management System in the DODwas aimed at reducing the DOD's overspending on itstelephone call costs budget. It is expected that the DODwill drastically reduce its spending on telephone callcosts. Projections have already indicated a saving on theDOD's telephone account as well as better managementinformation and consequently better control over the useof telephones in the DOD.

Fire and Rescue Services. An investigation is underway into the alignment of Fire and Rescue Services

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in the DOD in terms of national legislation and bestpractices.

Toll Roads. The gaining of free passage to toll roads asprescribed by the Defence Act thorough the use of a tollcard in the place of the present toll exemption form isneeded. This will scale down on printing / reproduc-tion of toll road forms in the DOD.

National Department of Transport System. The imple-mentation of the National Department of TransportSystem is under way in the DOD to align the currentuser requirement system with the National Departmentof Transport System.

Restructuring of 93 Ammunition Depot. A demilitari-sation plant in the short to medium term to process allredundant / obsolete "B/C/D" ammunition in nineyears will be established.

Trading Facility. A trading facility will be provided forthe DOD community. Currently the retail service deliv-ery is not adequate regarding range, availability, pric-ing, sizes, quality and shop environment.

4th Line Warehousing Service. An improved 4th linewarehousing service for the DOD to promote a well-defined and effective store management environmenthas been implemented. This will promote quicker turn-around times on issues and receipts.

Human Resources Support Centre Command andControl. The restructuring of the Human ResourceSupport Centre Satellites to become Human ResourceSupport units has permitted service points and supportsections to be placed at Force Structure Elements toallow a one-stop service to improve service delivery.

Deliberate Crime Prevention Operation. The Northernand Central Military Police Regions established tempo-rary task teams that were involved in a deliberate crimeprevention operation in the Tshwane area and consider-able successes were achieved.

Electronic Crime Administration System. This systemhas been successfully implemented in all Military Policeregions with the exception of a few areas where the LocalArea Network is still a challenge. The system is alreadycontributing to an improvement in service delivery bythe Military Police Agency as it provides a direct linkageto the SA Police Service on crime issues by improvingthe circulation of information on stolen vehicles, DODproperty and improving planning against crime.

Military Police Agency Interim Section. The MilitaryPolice Agency established an interim section at Air ForceBase Waterkloof Movements to address the increasedrequirement of searching aircraft leaving and arrivingfrom Burundi and the Democratic Republic of theCongo. Non-staffed members of 13 Provost Companyperform the tasks.


c h a p t e r 7

c h a p t e r 1 3




DEPARTMENT OF DEFENCE

REPORT OF THE AUDIT COMMITTEE

We are pleased to present our report forthe financial year ended 31 March 2005.

A u d i t C o m m i t t e eM e m b e r s a n d A t t e n d a n c eThe Audit Committee consists of themembers listed hereunder and meetsfour times per annum as per its ap-proved terms of reference. During theyear under review, four scheduled andone special meeting was held.

Currently two independent AuditCommittee members are still being vet-ted for security clearance puposes andtherefore the Audit Committee’s evalu-ation of the Financial Statements werenot properly constituted.

N a m e s o f E x t e r n a lM e m b e r sDr L Konar (Chairperson)

Ms J John

Mr D S Molapo

Mr R K Pule

Mr K A Ross

A u d i t C o m m i t t e eR e s p o n s i b i l i t yThe Audit Committee reports that it hascomplied with its responsibilities aris-

ing from section 38 (1)(a) of the PFMAand Treasury Regulation 3.1.13. TheAudit Committee also reports that ithas adopted appropriate formal termsof reference as its audit committee char-ter, has regulated its affairs in compli-ance with this charter and has dis-charged its responsibilities as containedtherein.

T h e e f f e c t i v e n e s s o fi n t e r n a l c o n t r o lThe Audit Committee is of the opinion,based on the information and explana-tions given by management and theinternal auditors and discussions withthe independent external auditors onthe result of their audits the status inaddressing the matters raised bySCOPA, that the internal accountingcontrols are operating, though theyneed strengthening and improvementto ensure that the financial records maybe relied upon for preparing the annualfinancial statements, and accountabilityfor assets and liabilities is maintained.

Nothing significant has come to theattention of the Audit Committee otherthan the matters referred to in theAuditor-General's report to indicatethat any material breakdown in thefunctioning of these controls, proce-dures and systems has occurred duringthe year under review.

PART 4: MANAGEMENT REPORT


c h a p t e r 1 3

T h e q u a l i t y o f i n y e a r m a n a g e -m e n t a n d m o n t h l y r e p o r t s s u b m i t t e d i n t e r m s o f t h e A c ta n d t h e D i v i s i o n o f R e v e n u e A c tThe Committee is satisfied with the content and qualityof monthly and quarterly reports prepared and issuedby the Accounting Officer and the Department duringthe year under review. However, it was noted that cer-tain weaknesses were identified by the Internal Auditorsand are being addressed by management.

I n t e r n a l A u d i tThe Internal Audit Function is conducted internally. Theinternal audits for the first year of the rolling three-yearstrategic internal audit plan have commenced, and manyhave been completed, with others in progress.

The Department undertook a comprehensive risk assess-ment exercise during the 2004/05 financial year. Anestablished Risk Management Committee assists inoverseeing the quality, integrity and reliability of theDepartment's corporate accountability and associatedrisk management and reporting.

E v a l u a t i o n o f F i n a n c i a lS t a t e m e n t sThe Audit Committee has:

Reviewed and discussed with the Auditor-

General and the Accounting Officer the audit-ed Annual Financial Statements to be includedin the Annual Report;Reviewed the Auditor-General's audit report,management letter and management response;Reviewed the accounting policies and prac-tices; andReviewed significant adjustments resultingfrom the audit.

The Audit Committee concurs and accepts the conclu-sions of the Auditor-General on the annual financialstatements and is of the opinion that the audited AnnualFinancial Statements be accepted and read together withthe report of the Auditor-General.

Chairperson of the Audit Committee

Dr Len Konar

Pretoria

13 June 2005

c h a p t e r 1 3




REPORT OF THE ACCOUNTING OFFICERfor the year ended 31 March 2005

DEPARTMENT OF DEFENCEVOTE 22

Report by the Accounting Officer to theExecutive Authority and Parliament ofthe Republic of South Africa.

1 . G e n e r a l r e v i e w o ft h e s t a t e o f f i n a n c i a l a f f a i r s

1.1 Strategic Decisions

1.1.1 In pursuit of affordability andsustainability of the Departmentof Defence, Defence's top struc-ture met in Parys, Free State inMarch 2004, where strategicdecisions (popularly known asthe Parys Resolutions) weretaken. These resolutions werepresented and subsequentlyapproved by the Minister ofDefence. Some resolutions are inthe process of being implement-ed whilst various studies are stillunderway to explore the bestpossible way to implement theothers. The resolutions are asfollow:

Revision of the Defence WhitePaper of 1996.Revision of the DefenceReview of 1998.Revision and enhancement ofDefence's vision. (The missionof Defence was confirmed andremains unchanged).Revisiting optimal efficiency

and effectiveness, includingappropriate capacity for theSecretary for Defence and theChief of the SANDF.Identification of strategic gapsand development of a Conceptof Operations and a Conceptof Support.Improvement of Defence'spublic image.Investigation of the utilisationof the Balanced Scoreboardapproach as a performancemeasurement tool, in conjunc-tion with the SA ExcellenceModel.

1.2 Strategic Issues

1.2.1 The following strategic issues forDefence were either confirmedor identified during the report-ing period:

Information Communication Sys-tems Support. Defence requiresan optimised Defence Infor-mation Infrastructure to sup-port Defence Administrationand the Military Commandand Control capability.Rightsizing of Defence. Thepresent human resource com-ponent is neither affordablenor is it supporting the Mili-tary Strategy and ForceEmployment Plan, thereby


c h a p t e r 1 3

REPORT OF THE ACCOUNTING OFFICERfor the year ended 31 March 2005 (continued)


threatening operational readiness, morale andfair labour practices.Defence Infrastructure. The lack of resources isresulting in the deterioration of the condition ofDefence's facilities and the slow disposal ofredundant equipment and munitions are nega-tively affecting operational readiness, morale,occupational health and safety and workingconditions.Defence Act. The General Regulations (includ-ing the state of Mobilisation Regulations) forDefence should be revised in order to bealigned and implemented with the DefenceAct, Act 42 of 2002.Alignment of Core and Support Processes withPFMA imperatives. Defence’s core managementprocesses (Strategic Direction Process, ForceEmployment Process, Force PreparationProcess) in conjunction with support manage-ment processes (Logistic, Human Resources,Financial, Defence Intelligence, CommandManagement Information, CorporateCommunication etc.) are not fully developed,integrated and institutionalised to be function-ally aligned, harmonised and implementedaccording to PFMA imperatives.Defence Reserves. The role which the reservesmust play in the provision of affordabledefence capabilities has not been properlyoperationalised in the force design and struc-ture or in force development plans.White Paper on Defence and Defence Review.Certain important aspects of policy in theWhite Paper on Defence and the DefenceReview are currently reviewed to be alignedwith developments in, and the requirements of,the strategic environment. Defence fundingwithin the Medium Term ExpenditureFramework is also not aligned with DefencePolicy.Collective Continental/Regional SecurityManagement. The absence of a Defence strategyfor collective security management with conti-nental and regional counterparts contributes toconflicting approaches detrimental to the secu-rity interests of South Africa.Crime in Defence. The current strategy for themanagement of the high levels of criminality isbeing implemented to the lowest possible levelthroughout Defence.

1.3 Defence Vote: Rm 20 257,326 (AppropriationAct, 2004)

1.3.1 The Vote increased by Rm 207,248 (1,03%) fromthe previous year and amounted to 1,52% ofSouth Africa's gross domestic product and 5,44%of government expenditure. Both percentagesare lower than those of the previous year. Thereason for the relatively small increase in theoverall budget was the nominal year-on-yeardecrease of Rm 387,168 in the provision for theStrategic Defence Procurement Programme.

1.3.2 Baseline increases to the Vote included an addi-tional Rm 500,000 for continued peace supportoperations in Africa and Rm 200,000 for the com-pletion of the Rooivalk Combat SupportHelicopter Programme.

1.3.3 In terms of main programmes, the SpecialDefence Account (39,1%) and Landward Defence(16,4%) remain the two largest main programmeswithin the Vote. The increase of 3,8% in theLandward Defence programme from the previ-ous year is mainly due to the provision forimprovements in conditions of service, while thedecrease of 1,2% in the Special Defence Accountis due to the decrease in the provision for theStrategic Defence Procurement Programme asmentioned in par 1.3.1 above. On 1 April 2004 theestimated cost for the Strategic DefenceProcurement Programme amounted to Rb 48,744compared to Rb 52,944 on 1 April 2003. Thisreduced requirement is the direct result of therevised valuation of the Rand against major cur-rencies over the remainder of the Programme.

1.3.4 In terms of economic classification, the largestprovisions were for transfers to departmentalagencies and accounts (Special Defence Account)(40,5%) and compensation of employees (38,4%).Single large items provided for were computerservices (Rm 395,6), Armscor transfer payment(Rm 286,6), rations (Rm 250,9), fuel (Rm 232,1),special daily allowances for foreign operations(Rm 191,8) and medical supplies (Rm 177,9).

1.4 Defence Adjustment Vote: Rm 845,507 decrease(Adjustment Appropriation Act, 2004)

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1.4.1 The Vote decreased with the net effect of theunder-mentioned adjustments.

1.4.1.1 The approval of roll-overs from the financial year2003/2004 on the Command and ControlProgramme to cover the operational costs of theemergency humanitarian assistance toMadagascar - increase of Rm 10,887.

1.4.1.2 The reallocation of the revenue generated fromthe sale of equipment initially procured from theGeneral Defence Account (Rm 22,214) and theSpecial Defence Account (Rm 121,392) respec-tively - increase of Rm 143,606.

1.4.1.3 A saving of Rm 1 000,000 in the Strategic DefenceProcurement Programme as a result of afavourable rate of exchange, unspent funds fromprevious years and delays in delivery schedules -decrease of Rm 1 000,000.

1.5 Adjusted Defence Vote: Rm 19 411,819

1.6 Expenditure

1.6.1 The total expenditure of the Vote amounted toRm 19 410,812 resulting in an insignificant underexpenditure of Rm 1,007. Of the unspent funds,Rm 0,598 was in respect of unspent transfer pay-ments and earmarked funds.

1.7 Spending Trend

1.7.1 Defence again managed expenditure to an imma-terial unspent 0,01% of the allocation. This issimilar to the trend achieved over the previousfive financial years with the exception of theunavoidable over expenditure of the 2003/2004

financial year. The trend is indicated in Table13.1.

2 . S e r v i c e s r e n d e r e d b y D e f e n c e

2.1 The services rendered by Defence are detailedin Chapter 2 of the Annual Report.

2.2 Tariffs Policy

2.2.1 Defence commands unique capabilities inrespect of manpower, equipment and expertise.Defence is thus frequently requested to performservices that cannot be performed by any otherprivate and/or public sector organisation. Therecipients of these services are in many casesresponsible to reimburse Defence or the State.Tariffs are levied, when appropriate, to ensurethat the services/tasks are not provided to thedetriment of Defence and revenue is collectedwhen due.

2.2.2 Tariffs are established for all such services pro-vided. National Treasury approves tariff struc-tures whilst the Secretary for Defence approvestariffs determined accordingly by the Service orDivision providing services. These tariffs arerequired to be revised and approved annually.Defence is still unable to annually revise thesetariffs due to the diversity and volume. Defencerequested National Treasury to approve anextension to restructure the current tariff struc-tures for implementation in the financial year2006/2007, which will be applicable to both pub-lic and private sector clients. The current interimtariff structure as approved by NationalTreasury will be applicable until the approvaland implementation of the new tariff structure.

Vote

Expenditure

Amount surrendered (over spent)

Amount surrendered (over spent) as percentage of Vote

18 844,734

18 835,801

8,933

0,05%

19 411,819

19 410,812

1,007

0,01%

2002/2003Rm

Financial year 2003/2004Rm

2004/2005Rm

19 800,004

19 825,984

(25,980)

(0,13%)

T a b l e 1 3 . 1 S p e n d i n g f o r t h e D e p a r t m e n t i n c o m p a r i s o n w i t h t h e p r e v i o u s t w o f i n a n c i a l y e a r s


c h a p t e r 1 3



2.3 Free Services

2.3.1 Free services to the amount of Rm 0,028 wereprovided mainly for harbour and transport serv-ices for visiting foreign ships and foreign digni-taries.

2.4 Inventory

2.4.1 Defence manages its inventory according to theNorth Atlantic Treaty Organisation (NATO) pre-scripts and not according to the Standard Chartof Accounts (SCOA) due to the fact that com-monality between other Defence Forces isrequired during the execution and support ofjoint operations. SCOA classifications are dis-similar to the classifications used by NATO.Defence was therefore only capable of submittinginventories on hand for this reporting period inthe NATO format.

2.4.2 Inventories on hand at year end at latest pur-chase price were as follows:

Equipment Rm

Specialised Military RmEquipment

Total Inventory Rm

2.4.3 In order to be able to report in the SCOA format,Defence has created a conversion table to bridgethe difference between the two formats. Due tothe complexity of both formats, the present ver-sion, for logistic purposes, was found not to besufficiently accurate to use for reporting purpos-es. With this in mind the conversion table is con-tinually being upgraded and updated in order tomeet the reporting requirements as soon as pos-sible. The vast inventory and asset volumes heldby Defence however will make it difficult to beable to report according to the SCOA beforeapproximately 2007. Therefore until the conver-sion table is of an acceptable standard for allitems, Defence will have to continue to report inthe NATO format.

2.4.4 Added measures have been taken by Defence toensure compliance with the required format bysending members on SCOA and SAIGA coursesto broaden their knowledge base of the require-

ment. Additional to this, members of the DODare also serving on the Accounting StandardsBoard Asset Management Sub-committee, ensur-ing an excellent understanding of the proposedaccounting standards and reporting require-ments.

3 . C a p a c i t y c o n s t r a i n t s

3.1 With Defence being actively engaged in PeaceSupport Operations and internal deployments, aswell as given the need to contribute to NEPAD,initiatives such as the African Standby Force(Southern Africa Brigade), the need for the reju-venation of the SANDF is reflected as one of theMinister of Defence's priorities in Defence'sStrategic Business Plan and forms one of thedesired end states of the Human ResourceStrategy 2010. Progress is already being madethrough new intakes in the SANDF's MilitarySkills Development System.

3.2 There is a lack of capacity and resources to specif-ically expand the recruitment of young membersat a more vigorous pace in the SA Army and inother major landward force contributions such asthe Military Police Agency, Logistic Division andthe Command and Management InformationSystems Division.

3.3 This requires the supply of sufficient numbers ofyoung members to the Regular Force and theConventional Reserve Force and holds opera-tional implications for the effective force employ-ment of the SANDF. Due to budget and forcestructure constraints, intakes cannot just beexpanded without also ensuring an appropriateoutflow of members with specific reference tomembers who are no longer optimally utilisableand who cannot be accommodated in alternativeposts.

3.4 By increasing Military Skills DevelopmentSystem intakes and not ensuring an appropriateoutflow, Defence's human resource numbers willincrease beyond sustainability thereby exceedingthe 1998 Defence Review guideline of a 70 000full time component, including Public ServiceAct personnel. It will also contribute to a signifi-cant increase in human resource expenditure,

5 069,583

10 335,905

15 405,489

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eventually causing the strangulation of theDefence Function due to the responding deple-tion of the operating budget within the constraintof a fixed budget allocation.

3.5 In 2001, Defence launched its Youth FoundationTraining Programme as an initiative to grantblack learners the opportunity to improve theirmatric results in subjects such as mathematics,science and accounting, with the view ofappointing them in the scarce combat, technicaland professional occupational classes in Defence,for example pilots, naval combat officers, financefunctionaries and medical professionals.Through this programme strides are made inresolving the representivity imbalance at entrylevel in Defence's highly specialised occupation-al classes although it will take time by utilisingthis mechanism alone.

4 . U t i l i s a t i o n o f d o n o r f u n d s

4.1 International donor funds for peace supportoperations are deposited into the Reconstructionand Development Programme (RDP) Fund andnot received by Defence. For the period underreview the Kingdom of Belgium donatedRm 3,922 to the Political Leader ProtectionMission in Burundi. The expenditure for the mis-sion was funded from the appropriation and thedonation retained in the RDP Fund. The revenueand expenditure is contained in the BurundiPeace Mission as a subset of the ForceEmployment Programme and can be sum-marised as follow:

4.1.1 Revenue

Received from the Rm 3,923Kingdom of Belgium

Funded from the National Rm 377,713Revenue Fund

Total revenue Rm 381,636

4.1.2 Expenditure

Personnel related costs Rm 248,764

Consumables Rm 36,780

Equipment Rm 10,898

Maintenance and services Rm 85,194

Total expenditure Rm 381,636

4.2 Participation in Peace Support Missions mandat-ed by the United Nations and the African Unionyielded reimbursements in accordance with theMemoranda of Understanding. The reimburse-ments received were deposited directly into theNational Revenue Fund and are included in theamount recognised in note 2 to the FinancialStatements under Departmental Revenue (Salesof goods and services other than capital assets).

4.2.1 Received from the United Nations for:

Peace mission in the Rm 100,316Democratic Republic of the Congo

Peace mission in Burundi Rm 12,907

Various Military Observer Rm 0,587missions

4.2.2 Received from the African Union for:

Peace mission in Burundi Rm 58,248

4.2.3 Defence received an amount of Rm 2,803 fromthe United Nations in respect of members whodied whilst deployed on peace support andobserver missions in Africa. The money receivedwas paid directly into the estates of the deceasedmembers.

4.3 Defence received the under-mentioned foreignaid assistance in kind during the reporting period(Details of donations are disclosed in note 3.1 tothe Financial Statements).

4.3.1 From the Government of the United States ofAmerica to the value of Rm 2,529.

4.3.2 From the Government of the People's Republic ofChina to the value of Rm 0,692.


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4.3.3 From the Government of the Federal Republic ofGermany to the value of Rm 7,870.

4.3.4 From the Government of the United Kingdom ofGreat Britain to the value of Rm 1,700.

5 . P u b l i c e n t i t i e s

5.1 The Castle Control Board and the ArmamentCorporation of South Africa (Armscor) arereported as public entities under the ownershipcontrol of the Minister of Defence in Annexure2A to the Financial Statements. A Board ofDirectors reporting to the Minister of Defencecontrols each public entity. The transfer paymentto Armscor is included in the table for transfer

payments (par 6) and no transfer payment wasmade to the Castle Control Board. The Ministerof Defence has requested that the management ofthe Castle of Good Hope be transferred fromDefence to the Department of Arts and Culturewith a corresponding change in the managementand control arrangements of the Castle. A fixedtarget date for this transfer has not yet beendetermined.

6 . O r g a n i s a t i o n s t o w h i c h t r a n s -f e r p a y m e n t s h a v e b e e n m a d e

6.1 Transfer payments were made to the followingorganisations:

ArmamentsCorporationof SouthAfrica Ltd(Armscor)

St JohnsAmbulanceBrigade

SA First-AidLeague

Medical Fund

Armscor is a Schedule 2 Public Entity man-aged by a Board of Directors appointed by theMinister of Defence. The Accounting Officerof the Department serves on this Board.Armscor annually submits a business plan andan estimate of expenditure, which is motivatedby the General Manager Finance and Admin-istration of Armscor, to the Department'sProgramme and Budget Evaluation Committeebefore such funds are included in theDepartmental Vote. Audited financial state-ments for the financial year 2003/2004 weresubmitted according to payment conditions.

Audited financial statements for the financial year 2003/2004 were submitted according topayment conditions.

Audited financial statements were not submit-ted for the financial year 2003/2004, conse-quently payment was withheld.

Audited financial statements for the financialyear 2003/2004 were submitted according topayment conditions.

284,098

0,039

-

0,245

AccountabilityArrangements

Transferee Voted2004/2005

Rm

Expenditure2004/2005

Rm

284,098

0,040

0,035

0,275

T a b l e 1 3 . 2 T r a n s f e r p a y m e n t s w e r e m a d e t o t h e f o l l o w i n g o r g a n i s a t i o n s

Reason for Payment

To subsidise Armscorin their mission to meetthe acquisition, mainte-nance and disposalneeds of theDepartment of Defenceand other clients interms of defencematériel, related prod-ucts and services.

To subsidise ambu-lance services in SouthAfrica and especiallythe use of such servic-es by the MilitaryHealth Service.

To subsidise first aid services and training inSouth Africa and espe-cially the use of suchservices and trainingopportunities by theMilitary Health Service.

To subsidise the Medical Fund B forForce members whoretired before 1964.

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7 . P u b l i c p r i v a t e p a r t n e r s h i p s( P P P )

7.1. Defence, in particular the South African MilitaryHealth Service, envisages to enter into a PublicPrivate Partnership arrangement with privatehealth care providers for the provision of healthservices - from primary to tertiary - for servingand retired members of the SANDF in eight keycentres in South Africa. National TreasuryApproval 1 for the feasibility study was grantedin January 2005 and Defence aims to have thePublic Private Partnership agreement signedduring the latter part of 2005.

8 . C o r p o r a t e g o v e r n a n c ea r r a n g e m e n t s

8.1 Risk Management

8.1.1 The primary objective of Defence's RiskManagement Strategy is to enable Managementto identify and manage those risks that impact onthe strategic objectives of Defence within the con-text of the Department's Strategic Plan. Theenhancement of the risk management process isongoing and will culminate in the finalisation ofthe Risk Management Strategy for Defence at theend of 2005.

Part TimeForce Council

Defence,Intelligence,Diplomacyand TradeEducationand TrainingAuthority(DIDTETA)

SpecialDefenceAccount

RegionalServiceCouncils

TOTAL

The Accounting Officer of the Department isrepresented in the National Council. TheCouncil annually submits a business plan andan estimate of expenditure before such fundsare included in the Departmental Vote.Audited financial statements for the financialyear 2003/2004 were submitted according topayment conditions.

Audited financial statements for the financialyear 2003/2004 were submitted according topayment conditions.

Under control of the Accounting Officer of theDepartment of Defence. Financial statementsattached to this report.

Payment takes place in terms of the relevant tariffs laid down by each Regional ServicesCouncil.

2,461

5,885

7 045,000

14,855

7 352,583

AccountabilityArrangements

Transferee Voted2004/2005

Rm

Expenditure2004/2005

Rm

2,461

6,100

7 045,000

14,855

7 352,864

Reason for Payment

To subsidise the PartTime Force Council inits aim to secure com-munity and privatesector support for theReserve Forces and tomaintain a sound rela-tionship and communi-cation between theReserve Forces, theMinister of Defenceand the SA NationalDefence Force.

To subsidise the administrative expendi-ture of the DIDTETA,which acts as theSector Educational andTraining Authority(SETA) for Defence interms of the SkillsDevelopment Act,1998.

The acquisition of armament.

To honour the Department's obliga-tion to RegionalServices Councils interms of the RegionalServices Councils Act,1985.


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8.2 Fraud prevention

8.2.1 The Anti-fraud directorate is the main instrumentin combating fraud and corruption. The anti-fraud strategy is based on the three main out-comes of the National Anti-Corruption Summitof 1999 i.e. the prevention and combating of cor-ruption, building integrity as well as the raisingof awareness. A strategy to advise, direct andguide members of Defence on their approach tothe seriousness of fraud was introduced. TheFraud Prevention Plan fits into the context ofglobal and national measures. Risk assessmentsare done on a continuous basis as a pro-activemeasure to create awareness by means of educa-tion and communication. Re-active measures areadditionally instituted and maintained to detectand investigate fraud and corruption.

8.2.2 During the reporting period seventy-one fraudcases were reported, of which ten cases, to thevalue of approximately R 3 088 481, were com-pleted and thirty cases referred to other institu-tions and divisions for investigation. Thirty-onecases are still under investigation by the Anti-fraud directorate.

8.3 Internal Audit and Audit Committee

8.3.1 A strategic three-year Internal Audit Plan, incor-porating an annual Audit Plan for 2004/2005,was approved by the Audit Committee. A risk-based approach was followed to compile the planand to align the priorities of the Internal AuditFunction (Inspector-General) with the objectivesand goals of Defence and its related strategicrisks for the next three years. This is done toensure that:

Risks are appropriately identified and man-aged.Financial, managerial and operating informa-tion is accurate, reliable and timely.Employee's actions are in accordance with poli-cies, standards, procedures and applicable lawand regulations.Resources are acquired economically, used effi-ciently and adequately protected.Programs, plans and objectives are achieved.Quality and continuous improvement are fos-tered in the organisation's control process, and

Legislative or regulatory issues impacting onthe operations of Defence are recognised andsubsequently addressed.

8.3.2 The Inspector-General is independent and nolimitation is placed on its access to information.The accountability and reporting structures of theDivision are properly established and regularfeedback is provided to the Audit Committeewhich acts as oversight committee in evaluating:

Progress made with the execution of theInternal Audit Review in terms of theapproved Internal Audit Plan as well asThe effectiveness of Force Structure Elements.

8.3.3 Some initiatives in the Inspector-General envi-ronment that have enhanced the output of thedivision are:

The implementation of the Enterprise RiskManagement Framework.The implementation of the Combat ReadinessEffectiveness Model, andThe improvement of staff competencies

8.4 Management Bodies

8.4.1 The Minister of Defence directs and controls theDefence functions through the Council ofDefence. The Secretary for Defence and the Chiefof the National Defence Force implements minis-terial directives through the Defence StaffCouncil. Various subordinate boards and com-mittees serve these councils. A formal strategicdirection and control process is followed to pro-mote managerial effectiveness and articulatecompeting interests.

8.5 Codes of Conduct

8.5.1 Defence officials undertake to obey the relevantmilitary or civilian Code of Conduct by signature.A campaign to publicise the required behaviour-al norms and standards is conducted throughoutthe financial year. Misconduct is vigorouslyinvestigated and prosecuted in accordance withthe relevant disciplinary procedures as pre-scribed.

8.6 Occupational Health and Safety (OHS)

8.6.1 The Surgeon General is the delegated authority to

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direct and monitor occupational health and safe-ty in Defence. This function is executed in con-junction with all Defence services and divisions.Occupational health and safety policies areimplemented to direct the provision and mainte-nance of working environments that are safe andwithout risk to Defence officials. Non-compli-ance with governance is vigorously investigatedin conjunction with the inspectorate of theDepartment of Labour to enforce correctiveactions. All corrective actions must be reason-ably practical to eliminate or mitigate hazardsand risks before resorting to personal protectiveequipment. Health assessments and occupation-al hygiene surveys contribute to the enhance-ment of operational readiness within Defenceand support the compensation process for occu-pational injuries and diseases. Current chal-lenges include OHS awareness training at all lev-els and the management of non-compliance withthe Facilities Regulations and Ammunition andExplosives Regulations of the OHS Act No 85 of1993. The suitable rehabilitation of Defence facil-ities in compliance with the OHS Act is severelyrestricted due to the funding constraints experi-enced by the Department of Public Works.

8.7 Environmental Matters

8.7.1 Increasing national as well as international pres-sure to achieve and maintain certain standardswith respect to human and environmental well-being has a vast influence on the performance ofDefence. Environmental legislation is promul-gated regularly resulting in definite issues facingDefence in terms of environmental matters.Examples of these issues are:

Demolishing old buildings initially furnishedwith asbestos for isolation purposes poses anenvironmental health threat to personnel andcommunities in its direct vicinity. Buildingsthat are sealed off are only a temporary meas-ure awaiting adequate funding for the rehabil-itation thereof before demolishment can takeplace in co-operation with the Department ofPublic Works.With Defence property being classified for mil-itary land use, new developments or activities,according to legislation, do not require thepreparation of an environmental impact analy-

sis (EIA) as no change of land use exists.Therefore EIA’s are largely ignored on Defenceproperty which can result in a legal risk wherenew activities have a different impact on theenvironment and neighbouring communities,for example the re-classification of shootingranges and training areas to demolition ranges(Touws River).The methods of disposal of game practised byDefence is viewed by the public and legislato-ry bodies for example the National Society forthe Prevention of Cruelty to Animals (NSPCA),with renewed interest resulting in veld andgame management once again becoming a spe-cialised field within Defence. In-post trainingis currently taking place to re-evaluate andimprove own capabilities in terms of game cap-ture and relocation within the parameters oflegislation.

8.7.2 Defence regards the integration of environmentalconsiderations in all planning processes as a highpriority and the implementation of environmen-tal policing (ECOPS) during joint military exer-cises has now delivered valuable informationwith respect to gaps in basic training. Theseinputs can add to training and sustainable man-agement of training areas.

8.7.3 To ensure environmental compliance, traininghas taken place over a broad spectrum in Defencewith respect to the Environmental ManagementSystem (EMS) and International Standard (ISO)14001. Successful implementation of the EMS onmilitary bases and training areas require commit-ment from all divisions of Defence to ensure con-tinuous improvement with the establishment of aDefence Environmental Management System asend result.

9 . D i s c o n t i n u e d a c t i v i t i e s / a c t i v i -t i e s t o b e d i s c o n t i n u e d

9.1 Discontinued activities and activities to be dis-continued are described in Chapter 2 of theAnnual Report.

1 0 . N e w a n d p r o p o s e d a c t i v i t i e s

10.1 New and proposed activities are described in


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Chapter 2 of the Annual Report.

1 1 . P e r f o r m a n c e i n f o r m a t i o n

11.1 Performance information is prehensively report-ed in Chapter 5 to 12 in the Annual Report.

1 2 . S C O P A r e s o l u t i o n s

12.1 In terms of the Specimen Financial Statements itis required from Defence to report on SCOPAresolutions in the Report of the AccountingOfficer. However, formal SCOPA resolutions arenot yet available.

12.2 Questions on the following matters, posed bySCOPA, have been investigated and respondedto:

Information on the cost effectiveness of theRooivalk attack helicopter.Asset register on Land and Buildings.Time frames on the completion of a disposalprocess for unwanted land.A report on land already distributed toclaimants.

1 3 P r o g r e s s w i t h f i n a n c i a l m a n -a g e m e n t i m p r o v e m e n t

13.1 Defence has entered the third phase of a long-term strategy to substantially improve the finan-cial management of the Department. TheFinance Management Division has been re-engi-neered for cost-effective service delivery as a firstphase and the public finance regulatory frame-work implemented in the finance function withinthe constraints of the existing legacy informationsystems as a second phase. The current phaseconsists of broadening the scope of implementa-tion of the public financial management frame-work to other functions affected by public finan-cial management such as personnel, matériel andinformation management. The initiatives includeensuring promulgation of legally enforceableinstructions, and integrated financial manage-ment information system supporting generallyrecognised accounting practices and related stan-dards, building of departmental capacity andreinforcing accountability arrangements.

13.2 The principal activity of the third phase has beenthe endeavour to procure an integrated financialmanagement information system to improvefinancial information for decision-making as wellas to secure compliance with emergent account-ing practices and standards. The Defence GRAPproject, reported on in the financial year2003/2004, has been put on hold on request bythe National Treasury in support of its IntegratedFinancial Management System (IFMS) initiative.The information provided through the DefenceGRAP project has been most beneficial for thedevelopment of accounting standards and thespecifying of requirements for the IFMS. Defencewill not be able to achieve unqualified financialstatements, unless exemptions are authorised,until such time as the IFMS has been developedand implemented in the Department. (Certaindeviations have been approved by the NationalTreasury for the financial year 2004/2005 andapplied in the Financial Statements to thisreport).

13.3 The Financial Management Division was able tosuccessfully provide financial management serv-ices to its clients according to its strategic busi-ness plan, service delivery charter and relatedservice agreements.

13.4 The migration from a cash basis of accounting toan accrual basis of accounting as initiated by theNational Treasury poses a serious challenge tothe Department to comply with the emergentpractices and reporting as prescribed, given thecurrent state of the related supporting informa-tion systems and organisational capacity.Defence is, however, still committed to activeparticipation in National Treasury’s financialmanagement improvement initiatives (FinancialManagement Improvement Programme) and hasduring the reporting period provided extensiveinputs on the development of a UserRequirement Statement for the IntegratedFinancial Management System and actively par-ticipated in workshops of the AccountingStandards Board.

13.5 An undertaking was given to the StandingCommittee on Public Accounts that Defence will

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migrate its four logistic accounting systems to asingle system thereby enhancing the control andadministration of assets in general. This will alsocontribute to a more effective and efficient migra-tion of logistic management to the IntegratedFinancial Management System. The envisagedsingle logistic system will improve Defence'sability to meet accrual reporting.

13.6 Defence is currently reconsidering its structuralarrangements regarding the financial manage-ment function and the utilisation of the ChiefFinancial Officer in the improvement of account-ability and sound management of revenue,expenditure, assets and liabilities. Developmentsin this regard will be covered in the next report-ing period.

A p p r o v a l

The Annual Financial Statements set out on pages 179 to244 have been approved by the Accounting Officer.

(J.B. Masilela)Secretary for Defence: Director General

Pretoria

Date: 31 May 2005


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REPORT OF THE AUDITOR-GENERAL TOPARLIAMENT ON THE FINANCIAL STATEMENTSOF VOTE 22 - DEPARTMENT OF DEFENCEFOR THE YEAR ENDED 31 MARCH 2005

1 . A U D I T A S S I G N M E N T

The financial statements as set outon pages 179 to 232, for the yearended 31 March 2005, have beenaudited in terms of section 188 ofthe Constitu-tion of the Republicof South Africa, 1996 (Act No. 108of 1996), read with sections 4 and20 of the Public Audit Act, 2004(Act No. 25 of 2004) and section 12of the National ConventionalArms Control Act, 2002 (Act No.41 of 2002). These financial state-ments, the maintenance of effec-tive control measures and compli-ance with relevant laws and regu-lations are the responsibility of theaccounting officer. My responsi-bility is to express an opinion onthese financial statements, basedon the audit.

2 . N A T U R E A N D S C O P E

Except as discussed in paragraph5.8(b) the audit was conducted inaccordance with Statements ofSouth African Auditing Stan-dards. Those standards requirethat I plan and perform the auditto obtain reasonable assurancethat the financial statements arefree of material misstatement.

An audit includes:

examining, on a test basis, evi-dence supporting the amountsand disclosures in the financialstatements,assessing the accounting prin-ciples used and significantestimates made by manage-ment, andevaluating the overall finan-cial statement presentation.

Furthermore, an audit includes anexamination, on a test basis, ofevidence supporting compliancein all material respects with therelevant laws and regulationswhich came to my attention andare applicable to financial matters.

The audit was completed in accor-dance with Auditor-GeneralDirective No. 1 of 2005.

I believe that the audit provides areasonable basis for my opinion.

3 . Q U A L I F I C A T I O N

3.1 Departmental revenue

As disclosed in note 2 to the state-ment of financial performance,departmental revenue generatedfor the financial year under re-view amounted to R172 291 000

PART 5: AUDITOR-GENERAL’SREPORT ON DOD FINANCIALSTATEMENTS


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(excluding R121 392 000 Special Defence Accountrevenue and R172 059 000 reimbursements inrespect of foreign operations) compared with R266342 000 (excluding R202 111 000 Special DefenceAccount revenue) of the previous year. Due toinsufficient independent management reconcilia-tions/reviews and non-compliance with policiesand procedures, I could not obtain sufficientappropriate evidence to satisfy myself as to thecompleteness of departmental revenue.

3.2 Receivables: note 13

The validity and accuracy of the amount disclosedin Receivables: note 13 could not be confirmed asthe original amounts of debtors were amendedwhen the new FMS: Debtors subsystem was imple-mented. The audit furthermore revealed signifi-cant weaknesses in internal controls over the man-agement of receivables. This can mainly beascribed to the lack of independent reconciliationsand review and follow-up of receivables. Thedepartment is in the process of addressing a sys-tem error and the adjustments will be audited dur-ing the next audit cycle.

3.3 Irregularities and losses: note 6.3

With reference to paragraph 3.5 on page 144 of myprevious report, the inconsistent application ofpolicies and procedures continued to be problem-atic and resulted in the following internal controlweaknesses:

Not all losses and damages were reported tothe finance division;

The damage and loss registers at unit levelwere not updated regularly and numerousinstances were found where cases had not beencaptured in the loss registers;

Various files pertaining to losses could not besubmitted for audit purposes;

A board of inquiry was not always instituted asrequired in terms of the policy;

Various cases were not finalised on time.

Consequently, I am unable to verify the accuracyand completeness of the amount of R48,7 million(2004: R18,5 million) for irregularities and losses,as disclosed in note 6.3 to the financial statements.

4 . Q U A L I F I E D A U D I T O P I N I O N

In my opinion, except for the effect on the financialstatements of the matters referred to in paragraph3 above, the financial statements fairly present, in

all material respects, the financial position of theDepartment of Defence at 31 March 2005 and theresults of its operations and cash flows for the yearthen ended, in accordance with prescribedaccounting practice and in the manner required bythe Public Finance Management Act, 1999 (Act No.1 of 1999).

5 . E M P H A S I S O F M A T T E R

Without further qualifying the audit opinionexpressed above, attention is drawn to the follow-ing matters:

5.1 Approved deviations from the prescribed ac-counting practice for the annual financial state-ments

The National Treasury granted the Department ofDefence approval to deviate from the prescribedaccounting practice for the annual financial state-ments for the 2004-05 financial year in respect ofthe following instances:

Accruals - accruals only included goods andservices received for which an invoice had beenreceived but which remained unpaid at year-end. This resulted in an understatement ofaccruals according to the approved accountingpolicy of the National Treasury. Invoice receiptdates were used to populate the accruals as dis-closed in note 22. Cut-off testing revealed thatnot all invoices received prior to year-end hadbeen included in the disclosure. Accordinglythe amount disclosed as accruals is understatedby an unknown amount;

Physical asset movement schedule (Annexure 4) -detail was limited to additions instead of alsoincluding disposals, transfers in, transfers outand closing balance;

Software and other intangible assets movementschedule (Annexure 5) - detail was limited toadditions instead of also including disposals,transfers in, transfers out and closing balance;and

Goods and services: note 5 which is, in terms ofprescribed accounting practice, a currentexpenditure item, included capital expenditurein respect of machinery and equipment. Thishad the result that capital expenditure onmachinery and equipment was not disclosed inAnnexure 4 to the financial statements.

5.2 Management of inventories, machinery andequipment

(a) Notwithstanding the responses received from cor-

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porate management of the DOD, namely that poli-cies would be revisited, guidance would be givento units and on-the-job training would take placeto rectify the problems on hand, the audit con-ducted on the management of inventories, machin-ery and equipment still revealed the same weak-nesses in internal controls as reported on in prioryears. This matter can primarily be attributed tothe fact that management policies and procedureswere not adequately complied with. Furthermore,there appears to be a lack of supervision at opera-tional and unit level. The following key findingsneed to be mentioned:

Controls over the general administration ofdemands (request for the issuing of inventory,machinery and equipment) were found to beinadequate in that:

Proper registers were not kept or wereincomplete.Demands were not always signed by theappropriate delegated persons or signed atall for approval.Demands were not properly filed and/ornumbered.Demands could not always be submitted forauditing.

Registers for receipt and issue vouchers werenot properly kept and in certain instances notkept at all. Consequently, not all issue andreceipt vouchers could be submitted for audit-ing. Supporting documents were not alwaysattached to the receipt and issue vouchers tosubstantiate the action. In numerous cases itwas found that the responsible person did notsign the receipt voucher as proof of receipt ofgoods.

In certain instances:Inventory and equipment were not record-ed completely and accurately, resulting indiscrepancies between physical stock onhand and the asset register.Receipts and issues were not captured onthe system in a timely manner.The storage facilities were found to be defi-cient in that inventory and assets were notstored under prescribed and ideal condi-tions. This could result in the deteriorationof assets and the state could incur materiallosses.The prescribed handing and taking-overcertificates were not completed during thechange of responsibilities.

In numerous instances no segregation of dutiesexisted.

(b) An evaluation of the stocktaking certificatesrevealed that fifty-one out of a total of three hun-dred and twenty-six units had failed to submitstocktaking certificates on or before 31 March 2005.Of these fifty-one units, four units had applied forand were granted exemption while twenty-sixunits did not apply for exemption for non-submis-sion of stocktaking certificates. Ten units had notsubmitted stocktaking certificates due to closureand eleven units were late in submitting their cer-tificates.

(c) In numerous instances - discrepancy vouchers(indicating the required adjustments to stock inrespect of differences between actual stock onhand and recorded stock) were still not approvedfor the 2004-05 financial year.

(d) Following up on the commitments made by theStanding Committee on Public Accounts(SCOPA), during the hearing held on 5 March 2003regarding the corrective measures in respect ofexcessive stock, I noted that although the disposalplans of excessive stock were regularly monitored,not all the plans were on schedule. This can main-ly be attributed to:

Lack of technical staff to determine the statusof the specialised items (serviceable/ unser-viceable);

Stock discrepancies at the main depot whichshould be resolved prior to disposal;

Lack of capacity to identify and administerexcessive stock on system management level;

Integrity of data and wrong description ofitems on the system;

Long lead times to finalise milestones; and

Incompatibility between electronic storesadministration systems ie the Operational Sup-port Information System (OSIS) does not com-municate with the Computer Aided LogisticManagement Information System (CALMIS).

(e) Internal controls over the security and generaladministration of vehicles, weapons and ammuni-tion were found to be deficient. This can mainly beattributed to the fact that policies and procedureswere not adequately applied and/or adhered to.The following key findings were noted:

Vehicles

Unauthorised trips were undertaken;

In general vehicles were not inspected fordamage before and after each trip. This made itdifficult to determine the responsibility for any


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possible damage to the vehicles;

The history files for the vehicles were found tobe incomplete and in certain instances were notkept at all;

Material differences existed between the phys-ical number of vehicles on hand and thosereflected in the stock ledger;

Vehicles were allowed to deteriorate to such anextent that they were beyond economicalrepair. This was mainly as a result of irregularservicing and maintenance of vehicles;

In certain cases where vehicles were sent forrepairs, they were kept at the workshop for aconsiderable time and some of these vehicleswere stripped of their parts, which caused fur-ther delays in the delivery of the vehicles to theoriginal units.

Weapons and ammunition

Differences existed between the physical num-bers of weapons and ammunition on hand andthose reflected on the system;

The firearm registers were not alwaysreviewed and signed by the officers command-ing as prescribed;

Many members were in possession of firearmswhilst their firearm permits had alreadyexpired;

It was not always possible to verify ammuni-tion consumption as user certificates could notbe submitted for audit purposes;

In certain instances there was a lack of physicalcontrol measures over safeguarding ofweapons and ammunition in that:

No control existed over the keys of the safewhere weapons and ammunition were kept.Private firearms were kept in the safe with-out the necessary approval.Ammunition was found to be kept in anopen store.

(f) During the night of 12 June 2004 the administra-tion building of the Army Support Base (ASB)Johannesburg burnt down. Various types of sourcedocuments such as duty sheets, demands, issueand receipt vouchers, documentation on damagesand losses, disposal schedules and firearm permitswere also destroyed in the fire and could thereforenot be submitted for audit purposes. This resultedin the required audit procedures not being per-formed at ASB Johannesburg on the aforemen-tioned documentation for a period of two and ahalf months. An investigation was instituted by

the department to determine the cause of the fire.At the time of compiling my report the investiga-tion had not been finalised.

(g) Notwithstanding the assurance given by manage-ment that structures were put in place to rectifythe deviations reported on in the previous reportin respect of the five foreign operations, the samecontrol weaknesses as indicated below were iden-tified:

Controls over the raising of demands wereweak (goods and services);

It was noted that one person was responsiblefor authorising, checking and approving trans-actions. There was therefore, no segregation ofduties, which exposed the DOD to an unac-ceptable level of risk;

Registers for receipt and issue vouchers werenot properly maintained;

Inventory and equipment were not recordedcompletely and accurately.

At the time of the audit there was a backlog ofissue and receipt vouchers that had not yet beencaptured. This resulted in discrepancies betweenthe physical stock transferred and the assetrecords.

Inventory and assets were sent to and fromoperations without formal supporting docu-mentation, resulting in internal control weak-nesses over the management of assets;

As a result of the lack of controls and properdocumentation, certain inventory and assetswere shipped to wrong destinations or opera-tions;

Many cases of theft occurred due to poor secu-rity.

As mentioned in the previous year, these short-comings can, in the main, be ascribed to the lack ofan appropriately documented and approved poli-cy and procedure framework for asset manage-ment, specifically relating to foreign military oper-ations.

5.3 Land and buildings

With reference to paragraph 5.2 on page 146 of myprevious report the audit conducted on land andbuildings revealed the following:

(a) There was uncertainty over the completeness andaccuracy of the DOD's facility register (FR) system.No reconciliation with the asset register of the

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Department of Public Works could be performeddue to the incompatibility of the two systems.

(b) Buildings and houses continued to deteriorate ra-pidly. This can mainly be attributed to a lack offunds and ineffective controls over repairs andmaintenance.

(c) Buildings and houses considered uninhabitableremained occupied. This posed a major health andsafety risk, which could result in the DOD becom-ing liable to third parties.

(d) At certain of the units, the following deficiencieswith regard to supporting documentation werefound:

Occupational agreements were incomplete ornot available;

Documentation for structural changes to build-ings could not be submitted;

Contracts for subleases to third parties couldnot be submitted;

Inventory checklists were not completedand/or filed;

Unutilised space schedules were not complet-ed;

Lists of facilities at audit locations could not beprovided;

In certain instances the FR system containedreferences to buildings that did not physicallyexist;

Buildings were disposed of without handing-over certificates being completed;

No authorisations by the Department of PublicWorks were available for newly constructedbuildings.

5.4 Gifts, donations and sponsorships

With reference to paragraph 5.3 on page 146 of myprevious report the completeness of gifts, dona-tions and sponsorships made and received in kind,as disclosed in Annexure 1 D and 1 E of the annu-al financial statements, could again not be verified.

The above could mainly be attributed to the factthat the policies and procedures pertaining to theseitems were not followed adequately.

5.5 Personnel expenditure

(a) Leave credits and leave administration: The internalcontrols in respect of the leave administration sys-

tem are still considered to be inadequate. The fol-lowing audit findings need to be mentioned:

The conversion of leave credits from calendardays to working days on the PERSOL systemfor SANDF members will only be amendedduring the 2005-06 financial year;

Leave application forms were not captured onthe computerised leave system on time andwere not filed regularly in the leave files ofmembers. Section heads did not in all casesapprove leave;

Parade registers were not completed daily,approved as prescribed and/or reconciledwith the leave system;

Some leave files as well as supporting docu-mentation such as medical certificates andleave cancellation requests could not be sub-mitted;

Leave registers were not kept as prescribed;

Leave days as recorded on the PERSOL systemdid not always agree with the leave registers;

The above-mentioned inefficiencies surround-ing the administration of leave impacted on thecorrectness of the following amounts as reflect-ed in the financial statements, as the number ofleave days was used in the calculation of theamounts:

Note 4.1: Compensation/circumstantial(leave gratuities) - R0,5mNote 23: Employee benefits - Leave entitle-ment - R0,4mNote 20: Contingent liabilities - Cappedleave commitments - R1.1m

(b) Commuted overtime: The audit conducted on com-muted overtime again revealed certain weakness-es in the internal controls which can be attributedto the fact that management policies and proce-dures were not followed or were not adequate toaddress all weaknesses in the system. The follow-ing matters need to be mentioned:

Supporting documentation such as attendanceregisters and duty lists were not on files;

It was a general observation that overtime hadnot been correctly recorded in the attendanceregisters of members and that the split betweennormal hours and overtime hours was notshown on the attendance registers.

(c) Employment Equity: A comparison of actualstrength per level to equity targets for the entiredepartment indicated that the lower structure ofthe DOD is predominantly African, while senior


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and middle management structure and profes-sional staff are predominantly white.

(d) Unrealistic establishment: The Human ResourceStrategy 2010 states that a full-time humanresource composition of 70 000 members (includ-ing SANDF and PSAP personnel) is considered tobe a viable full-time component to support theforce design and force structure as envisaged inthe Defence Review.

Despite the above strategy there has been anincrease of 1 056 employees from 75 913 in 2004 to76 969 in the current year. Under the circum-stances and based on the current approved postsof 95 088 and actual employees of 76 969, theachievement of the 2010 goal of 70 000 membersdoes not appear to be realistic.

5.6 Operating lease: note 24

The completeness of the operating lease commit-ments as disclosed in note 24 to the annual finan-cial statements could not be confirmed. This couldmainly be attributed to insufficient reconciliationbetween the number of items currently leased andrecorded by the department and that indicated bythe suppliers. From a cost and time perspective Iconsidered it impractical to perform any furtherprocedures in this regard.

5.7 Foreign aid received in kind

With reference to paragraph 5.5 on page 146 of myprevious report, there is still no system for therecording and collation of foreign aid received inkind. Consequently, the completeness and accura-cy of note 3 to the annual financial statementscould not be confirmed.

5.8 National Conventional Arms Control Committee(NCACC)

(a) Statutory mandate - The NCACC was instituted interms of the National Conventional Arms ControlAct, 2002 (Act No. 41 of 2002) (NCAC Act) to havecontrol over arms development, production andtransfer.

I have not performed compliance procedures inthe following areas during this financial yearmainly as a result of uncertainty with regard to myaccess to third party information:

Validation of end-user certificates;

Control evaluation at development and manu-facturing companies; and

Compliance visit reports, conclusions and re-commendations.

I envisage reaching consensus with the committeeduring the next audit cycle.

(b) Audit findings - The compliance audit for the finan-cial year primarily revealed the same findings thatwere reported in the previous year in that:

No constitution or any other formallyapproved policy was in place to regulate thefunctioning of the NCACC or the scrutiny com-mittees, as well as the administrative functionof the DCAC;

The Inspectorate function for the NCACC, asrequired by section 9 of the NationalConventional Arms Control Act, had not beenestablished;

The investigative report on the sale of smallarms ammunition had been submitted to theNCACC, however, I was unable to obtain evi-dence that a decision had been reachedwhether or not to take action against the partiesresponsible for the initial sale of military smallarms ammunition;

The recommendation of the legal opinionregarding the delegations as reported in myprevious report had not been implemented.

The Director of the Directorate Conventional ArmsControl (DCAC) remained on suspension pendingthe outcome of a forensic investigation. At the timeof compiling this report, I was awaiting furtherinformation from the Secretary for Defence regard-ing the impact this incident may have on the auditof the NCACC.

As a result of the above I was unable to completethe compliance audit as required by the NCACAct, section 12 (2), section 4, section 14 and section23, placing a limitation of scope on the audit, andmy compliance audit responsibilities as envisagedby Parliament in terms of this act could not be exe-cuted.

5.9 Service Corps

With reference to table 14.1 on page 149 of my pre-vious report in respect of the progress made withthe intended migration of the Service Corps, Inoted that the Ministry of Defence was reconsider-ing the intended migration of the Service Corps.Consequently, the intended migration processreported on previously had been suspended pend-ing the outcome of a decision from the Ministry of

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Defence. Subsequent to year-end the Ministrydecided to reconsider the migration based on theformulation of alternatives which are to be pre-sented to the relevant structures and authorities,and thereafter to the Council of Defence forapproval.

The conclusion of the issue remains a concern ofparamount importance to me as this issue hasremained outstanding for six consecutive years.Furthermore, the Standing Committee on PublicAccounts (SCOPA) also raised its concern thatvery little had been done to ensure the eventualconclusion of the issues around the Service Corpsand I will report on further progress during thenext year.

5.10 Information systems audit

The reliance on the general controls surroundingthe information systems remains the same asreported in paragraph 5.7 on page 147 of my pre-vious report, with the result that I did not placeany reliance on the general controls surroundingCALMIS. Furthermore, the audit revealed that theactivities of the database administrators were notlogged and monitored on CALMIS and OSIS. Anupdate will be reported on during next year.

A process control audit of programmed controlsfor the selected business processes within the FMS,PERSOL, CALMIS, LlMS and OSIS applicationswas completed in June 2005 and the findings werebrought to the attention of the Secretary forDefence.

The following significant control weaknesses thatcould compromise the integrity of data werefound:

Users had access to incompatible transactionsfor the processing of journals and payments;

Inadequate authorisation processes existed forthe approval of supplier master file amend-ments.

These control weaknesses were due to inadequateprocess control design as well as non-adherence toapproved procedures.

In his response dated 27 June 2005 the Secretary forDefence referred to various corrective steps thatwould be taken by the department. The effective-ness of these steps will be evaluated in due course.

An information systems audit of the service levelagreements (SLAs) between the department and

the State Information Technology Agency (SITA)was completed in July 2005 and the findings werereported to the accounting officer.

The root causes of the weaknesses set out in thefindings below were the lack of key policies, stan-dards and procedures and the absence of support-ing documentation to substantiate service deliveryand invoice amounts. The most significant weak-nesses identified were the following:

Penalty clauses were not enforced and poorperformance and the impact thereof were notalways investigated. In some instances, theSLAs did not even contain any penalty clauses.Furthermore, no supporting documentationwas attached to the monthly reports to sub-stantiate SITA's compliance with the measure-ment criteria. It was therefore not possible tomeasure SITA's compliance with the requiredservice delivery levels;

The SLAs did not always comply with the stip-ulations of the business agreement.Furthermore, no formal policies and proce-dures were in place to guide the department inthe contracting with SITA and the manage-ment of the SLAs. Payments amounting toapproximately R23 million were made to SITAfor licences and software that were not used bythe staff of the department, whilst paymentswere made for services without proof, andinvoices that were not in agreement with theSLAs. These payments can be considered to befruitless, irregular and unauthorised expendi-ture and will be followed up during the auditof the following financial year. Inadequatecommunication between SITA and the depart-ment resulted in the department being liablefor increased licence and cancellation fees,which had not been budgeted for.

The above-mentioned weaknesses indicate thatmanagement had not established the required con-trols to ensure the effective management of servicedelivery in accordance with the SLAs and the pay-ment of goods and services.

5.11 Intellectual property

As reported previously, the draft policy on the"Management of Defence Intellectual Policy" hadbeen signed by the Minister of Defence, Secretaryfor Defence, Chief of the SANDF and the CEO -Armscor.

The department is currently busy scrutinising thepromulgated policy to determine that the appro-


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priate process and procedures can be implementedwithin the department, and that structures can beestablished and resources be allocated. Until suchtime as appropriate processes and procedures areestablished I am unable to perform any audits inthis area.

5.12 Rank review audit

An audit of the separate rank adjustment processof 384 non-statutory force members was institutedduring the 2004-05 year but could not be conclud-ed because not all the supporting documentationwas made available. The requirement of theMinister of Defence that this rank review processbe "...a process that can be formally audited" cantherefore not be confirmed at this stage.

6 . A P P R E C I A T I O N

The assistance rendered by the staff of theDepartment of Defence during the audit is sincere-ly appreciated. .

SA Fakie Auditor-General

Pretoria

31 July 2005

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The Annual Financial Statements havebeen prepared in accordance with thefollowing policies, which have beenapplied consistently in all materialaspects, unless otherwise indicated.However, where appropriate andmeaningful, additional information hasbeen disclosed to enhance the useful-ness of the Annual Financial Statementsand to comply with the statutoryrequirements of the Public FinanceManagement Act, Act 1 of 1999 (asamended by Act 29 of 1999), theTreasury Regulations for Departmentsand Constitutional Institutions issued interms of the Act and the Division ofRevenue Act, Act 5 of 2004. The follow-ing issued, but not yet effective Stan-dards of Generally Recognised Ac-counting Practice have not been fullycomplied with in the Annual FinancialStatements: GRAP 1, 2 and 3.

1 . B a s i s o f p r e p a r a t i o n

The Annual Financial Statementshave been prepared on a modifiedcash basis of accounting, exceptwhere stated otherwise. The mod-ified cash basis constitutes thecash basis of accounting supple-mented with additional disclosureitems. Under the cash basis ofaccounting transactions and otherevents are recognised when cashis received or paid. Under the

STATEMENT OF ACCOUNTING POLICIESAND RELATED MATTERSfor the year ended 31 March 2005

accrual basis of accounting trans-actions and other events arerecognised when incurred and notwhen cash is received or paid.

2 . R e v e n u e

Appropriated funds

Voted funds are the amountsappropriated to a department inaccordance with the final budgetknown as the Adjusted Estimatesof National Expenditure. Un-expended voted funds are surren-dered to the National RevenueFund, unless otherwise stated.

Departmental revenue

Tax revenue

A tax receipt is defined as com-pulsory, irrecoverable revenuecollected by entities. Tax receiptsare recognised as revenue in thestatement of financial perform-ance on receipt of the funds.

Sale of goods and services otherthan capital assets

This comprises the proceeds fromthe sale of goods and/or servicesproduced by the entity. Revenueis recognised in the statement offinancial performance on receiptof the funds.



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Fines, penalties and forfeits

Fines, penalties and forfeits are compulsoryreceipts imposed by court or quasi-judicial body.Revenue is recognised in the Statement ofFinancial Performance on receipt of the funds.

Interest, dividends and rent on land

Interest and dividends received are recognisedupon receipt of the funds, and no provision ismade for interest or dividends receivable from thelast receipt date to the end of the reporting period.They are recognised as revenue in the Statement ofFinancial Performance of the department and thentransferred to the National Revenue Fund.

Revenue received from the rent of land is recog-nised in the Statement of Financial Performance onreceipt of the funds.

Sale of capital assets

The proceeds from the sale of capital assets isrecognised as revenue in the Statement ofFinancial Performance on receipt of the funds.

Financial transactions in assets and liabilities

Repayments of loans and advances previouslyextended to employees and public corporations forpolicy purposes are recognised as revenue in theStatement of Financial Performance on receipt ofthe funds.

Cheques issued in previous accounting periodsthat expire before being banked are recognised asrevenue in the Statement of Financial Performancewhen the cheque becomes stale. When the chequeis reissued the payment is made from Revenue.

Local and foreign aid assistance

Local and foreign aid assistance is recognised inthe Statement of Financial Performance on receiptof funds. Where amounts are expensed beforefunds are received, a receivable is raised. Whereamounts have been inappropriately expensedusing Local and Foreign aid assistance, a payableis raised. In the situation where the department is

allowed to retain surplus funds, these funds areshown as a reserve.

3 . E x p e n d i t u r e

Compensation of employees

Salaries and wages comprise payments to employ-ees. Salaries and wages are recognised as anexpense in the Statement of Financial Performancewhen the final authorisation for payment is effect-ed on the system. The expenditure is classified ascapital where the employees were involved, on afull time basis, on capital projects during the finan-cial year. All other payments are classified as cur-rent expense.

Social contributions include the entities' contribu-tion to social insurance schemes paid on behalf ofthe employee. Social contributions are recognisedas an expense in the Statement of FinancialPerformance when the final authorisation for pay-ment is effected on the system.

Short-term employee benefits

The cost of short-term employee benefits isexpensed in the Statement of FinancialPerformance in the reporting period when thefinal authorisation for payment is effected on thesystem. Short-term employee benefits, that giverise to a present legal or constructive obligation aredisclosed as a disclosure note to the AnnualFinancial Statements and are not recognised in theStatement of Financial Performance.

Long-term employee benefits and other post employ-ment benefits

Termination benefits

Termination benefits are recognised and expensedonly when the final authorisation for payment iseffected on the system.

Medical benefits

The department provides medical benefits for itsemployees through defined benefit plans.Employer contributions to the fund are incurred

STATEMENT OF ACCOUNTING POLICIES AND RELATED MATTERSfor the year ended 31 March 2005 (continued)


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when the final authorisation for payment is effect-ed on the system. No provision is made for med-ical benefits in the Annual Financial Statements ofthe department.

Post employment retirement benefits

The department provides retirement benefits forcertain of its employees through a defined benefitplan for government employees. These benefits arefunded by both employer and employee contribu-tions. Employer contributions to the fund areexpensed when the final authorisation for pay-ment to the fund is effected on the system. No pro-vision is made for retirement benefits in theAnnual Financial Statements of the department.Any potential liabilities are disclosed in theAnnual Financial Statements of the NationalRevenue Fund and not in the Annual FinancialStatements of the employer department.

Other employee benefits

Obligations arising from leave entitlement, thir-teenth cheque and performance bonus that arereflected in the disclosure notes have not been paidfor at year-end.

Goods and services

Payments made for goods and/or services arerecognised as an expense in the Statement ofFinancial Performance when the final authorisa-tion for payment is effected on the system. Theexpense is classified as capital if the goods andservices were used on a capital project.

Interest and rent on land

Interest and rental payments resulting from theuse of land, are recognised as an expense in theStatement of Financial Performance when the finalauthorisation for payment is effected on the sys-tem. This item excludes rental on the use of build-ings or other fixed structures.


Financial transactions in assets and liabilitiesinclude bad debts written off. Debts are written off

when identified as irrecoverable. Debts written-offare limited to the amount of savings and/orunderspending available to the department. Thewrite-off occurs at year-end or when funds areavailable. No provision is made for irrecoverableamounts.

Unauthorised expenditure

Unauthorised expenditure, is defined as:The overspending of a vote or a main divisionwithin a vote, or Expenditure that was not made in accordance withthe purpose of a vote or, in the case of a main divi-sion, not in accordance with the purpose of themain division.

Such expenditure is treated as a current asset in theStatement of Financial Position until such expendi-ture is approved by the relevant authority, recov-ered or written off as irrecoverable.

Irregular expenditure

Irregular expenditure, is defined as expenditure,other than unauthorised expenditure, incurred incontravention or not in accordance with a require-ment of any applicable legislation, including:the Public Finance Management Actthe State Tender Board Act, or any regulationsmade in terms of this act, or any provincial legislation providing for procure-ment procedures in that provincial government.

It is treated as expenditure in the Statement ofFinancial Performance. If such expenditure is notcondoned and it is possibly recoverable it is dis-closed as receivable in the Statement of FinancialPosition at year-end.

Fruitless and wasteful expenditureFruitless and wasteful expenditure, is defined asexpenditure that was made in vain and wouldhave been avoided had reasonable care been exer-cised, thereforeit must be recovered from a responsible official (adebtor account should be raised), or the vote. (If responsibility cannot be determined.)

Such expenditure is treated as a current asset in the




c h a p t e r 1 5

Statement of Financial Position until such expendi-ture is recovered from the responsible official orwritten off as irrecoverable.

4 . T r a n s f e r s a n d s u b s i d i e s

Transfers and subsidies include all irrecoverablepayments made by the entity. Transfers and subsi-dies are recognised as an expense when the finalauthorisation for payment is effected on the sys-tem.

5 . E x p e n d i t u r e f o r c a p i t a l a s s e t s

Capital assets are assets that can be used repeated-ly and continuously in production for more thanone year. Payments made for capital assets arerecognised as an expense in the Statement ofFinancial Performance when the final authorisa-tion for payment is effected on the system.

Only capital expenditure for buildings and otherfixed structures is currently classified underexpenditure for capital assets, all other capitalexpenditure is included in goods and services

6 . I n v e s t m e n t s

Investments include: Investments in Associates,Joint ventures, Investments in controlled entitiesand Other investments.

Investments are shown at cost. On disposal of aninvestment, the surplus/(deficit) is recognised asrevenue in the Statement of FinancialPerformance.

7 . R e c e i v a b l e s

Receivables are not normally recognised under themodified cash basis of accounting. However,receivables included in the Statement of FinancialPosition arise from cash payments that are recov-erable from another party, when the payments aremade.

Receivables for services delivered are not recog-nised in the Statement of Financial Position as acurrent asset or as income in the Statement ofFinancial Performance, as the Annual Financial

Statements are prepared on a modified cash basisof accounting, but are disclosed separately as partof the disclosure notes to enhance the usefulness ofthe Annual Financial Statements.

8 . C a s h a n d c a s h e q u i v a l e n t s

Cash and cash equivalents consists of cash on handand balances with banks, short term investmentsin money market instruments and demanddeposits. Cash equivalents are short term highlyliquid investments that are readily convertible toknown amounts of cash and which are subject toan insignificant risk of changes in value.

9 . P a y a b l e s

Payables are not normally recognised under themodified cash basis of accounting. However,payables included in the Statement of FinancialPosition arise from advances received that are dueto the National Revenue Fund or another party.

1 0 . L e a s e c o m m i t m e n t s

Lease commitments for the period remaining fromthe reporting date until the end of the lease con-tract are disclosed as part of the disclosure notes tothe Annual Financial Statements. These commit-ments are not recognised in the Statement ofFinancial Position as a liability or as expenditure inthe Statement of Financial Performance as theAnnual Financial Statements are prepared on thecash basis of accounting.

Operating lease expenditure is expensed when thepayment is made.

Finance lease expenditure is expensed when thepayment is made, but results in the acquisition ofthe asset under the lease agreement. A financelease is not allowed in terms of the Public FinanceManagement Act.

1 1 . A c c r u a l s

This amount represents goods/services that havebeen received for which an invoice has beenreceived but remains unpaid at the reporting date.These amounts are not recognised in the Statement



c h a p t e r 1 5


of Financial Position as a liability or as expendi-ture in the Statement of Financial Performance asthe Annual Financial Statements are prepared on amodified cash basis of accounting, but are howev-er, disclosed as part of the disclosure notes.

1 2 . C o n t i n g e n t l i a b i l i t y

This is a possible obligation that arises from pastevents and whose existence will be confirmed onlyby the occurrence or non-occurrence of one ormore uncertain future events not wholly withinthe control of the department; or a present obliga-tion that arises from past events but is not recog-nised because: it is not probable that an outflow of resourcesembodying economic benefits or service potentialwill be required to settle the obligation; or the amount of the obligation cannot be measuredwith sufficient reliability.

Contingent liabilities are not recognised in theStatement of Financial Position, but the informa-tion is disclosed as part of the disclosure notes.

1 3 . C o m m i t m e n t s

This amount represents goods/services that havebeen approved and/or contracted, but no deliveryhas taken place at the reporting date. Theseamounts are not recognised in the Statement ofFinancial Position as a liability or as expenditurein the Statement of Financial Performance as theAnnual Financial Statements are prepared on amodified cash basis of accounting, but are how-ever disclosed as part of the disclosure notes.

1 4 . C a p i t a l i s a t i o n r e s e r v e

The capitalisation reserve represents an amountequal to the value of the investment and/or loanscapitalised. On disposal, repayment or recovery,such amounts are transferred to the RevenueFund.

1 5 . R e c o v e r a b l e r e v e n u e

Recoverable revenue represents payments madeand recognised in the Statement of Financial Per-formance as an expense in previous years due tonon-performance in accordance with an agree-ment, which have now become recoverable from adebtor. Repayments are transferred to the Rev-enue Fund as and when the repayment is received.

1 6 . C o m p a r a t i v e f i g u r e s

Where necessary, comparative figures have beenrestated to conform to the changes in the presenta-tion in the current year. The comparative figuresshown in these Annual Financial Statements arelimited to the figures shown in the previous year'saudited Annual Financial Statements and suchother comparative figures that the departmentmay reasonably have available for reporting.Reclassification of expenditure has occurred dueto the implementation of the Standard Chart ofAccounts. It is not practical to present comparativeamounts in the Cash Flow Statement as this wouldinvolve reclassification of amounts dating back tothe 2002/03 year-end.




c h a p t e r 1 5

APPROPRIATION STATEMENTfor the year ended 31 March 2005


Programme

1. AdministrationCurrent paymentTransfers and subsidies

2. Landward DefenceCurrent paymentTransfers and subsidies

3. Air DefenceCurrent paymentTransfers and subsidies

4. Maritime DefenceCurrent paymentTransfers and subsidies

5. Military Health SupportCurrent paymentTransfers and subsidies

6. Defence IntelligenceCurrent paymentTransfers and subsidies

7. Joint SupportCurrent paymentTransfers and subsidiesExpenditure for capitalassets

8. Command and ControlCurrent paymentTransfers and subsidies

9. Special Defence AccountTransfers and subsidies

Total

Departmental receipts

AdjustedAppropria-

tion

R’000

741 377942

3 298 3457 116

2 217 1661 812

1 084 6351 604

1 303 5801 647

134 639181

1 968 124295 385

71 613

1 238 317336

7 045 000

19 411 819

Virement

R’000

(34 670)-

(114 254)(800)

37 915600

14 783(200)

35 429250

3 29250

65 583--

(8 078)100

-

-

FinalAppropria-

tion

R’000

706 784865

3 184 3966 011

2 255 2162 277

1 099 7341 088

1 339 0751 831

137 955207

2 025 791295 276

79 638

1 230 277398

7 045 000

19 411 819

465 742

19 877 561

ActualPayment

R’000

706 784865

3 184 3966 011

2 254 9012 277

1 099 7341 088

1 339 0751 831

137 955207

2 025 380294 995

79 638

1 230 277398

7 045 000

19 410 812

19 410 812

Variance

R’000

--

--

315-

--

--

--

411281

-

--

-

1 007

Payment as% of finalappropria-

tion%

100,00%100,00%

100,00%100,00%

99,99%100,00%

100,00%100,00%

100,00%100,00%

100,00%100,00%

99,98%99,90%

100,00%

100,00%100,00%

100,00%

100,00%

FinalAppropria-

tion

R’000

666 138-

3 118 502-

2 155 248-

1 014 401-

1 343 119-

134 399-

1 786 719261 642

57 578

1 246 486-

8 015 772

19 800 004

468 453

20 268 457

ActualPayment

R’000

666 138-

3 118 502-

2 155 248-

1 014 401-

1 343 119-

132 988-

1 786 719261 235

43 672

1 288 190-

8 015 772

19 825 984

19 825 984

2004/05 2003/04

Shiftingof

Funds

R’000

77(77)

305(305)

135(135)

316(316)

66(66)

24(24)

(7 916)(109)8 025

38(38)

-

-

Actual amounts per Statement of Financial Performance (Total Revenue)

Actual amounts per Statement of Financial Performance Expenditure

Appropriation per programme

c h a p t e r 1 5


APPROPRIATION STATEMENTfor the year ended 31 March 2005


ProgrammeAdjusted

Appropria-tion

R’000

Virement

R’000

FinalAppropria-

tion

R’000

ActualPayment

R’000

Variance

R’000

Payment as% of final

ap-propria-tion%

FinalAppropria-

tion

R’000

ActualPayment

R’000

2004/05 2003/04

Shiftingof Funds

R’000

Current paymentCompensation to employees

Goods and services


Transfers and subsidiesProvinces and municipalities

Departmental agencies and accounts

Non-profit institutions

Gifts and donations

Payments on capital assetsBuildings and other fixed structures

Total

7 770 088

4 216 086

-

16 024

7 335 197

2 811

-

71 613

19 411 819

(47 487)

47 487

-

-

-

-

-

-

-

7 722 601

4 221 783

34 842

14 855

7 335 197

2 811

92

79 638

19 411 819

7 722 601

4 221 056

34 842

14 855

7 334 983

2 745

92

79 638

19 410 812

-

727

-

-

214

66

-

-

1 007

100,00%

99,98%

100,00%

100,00%

99,99%

97,65%

100,00%

100,00%

99,99%

7 209 335

4 230 524

25 153

-

8 271 184

6 230

-

57 578

19 800 004

7 209 335

4 270 817

25 153

-

8 271 111

5 896

-

43 672

19 825 984

-

(41 790)

34 842

(1 169)

-

-

92

8 025

-

Appropriation per Economic classification


c h a p t e r 1 5

DETAIL PER PROGRAMME 1 - ADMINISTRATIONfor the year ended 31 March 2005


Programme per subprogramme

AdjustedAppropria-

tion

R’000

Virement

R’000

FinalAppropria-

tion

R’000

ActualPayment

R’000

Variance

R’000


tion%

FinalAppropria-

tion

R’000

ActualPayment

R’000

2004/05 2003/04

Shiftingof Funds

R’000

1.1 MinisterCurrent payment

1.2 Deputy MinisterCurrent payment

1.3 Political DirectionCurrent paymentTransfers and subsidies

1.4 Departmental DirectionCurrent paymentTransfers and subsidies

1.5 Policy and PlanningCurrent paymentTransfers and subsidies

1.6 Financial ServicesCurrent paymentTransfers and subsidies

1.7 Human Resources Support ServicesCurrent paymentTransfers and subsidies

1.8 Legal ServicesCurrent paymentTransfers and subsidies

1.9 Inspection ServicesCurrent paymentTransfers and subsidies

1.10 Acquisition ServicesCurrent paymentTransfers and subsidies

1.11 Corporate CommunicationsCurrent paymentTransfers and subsidies

1.12 SANDF Command and ControlCurrent paymentTransfers and subsidies

1.13 Religious ServicesCurrent paymentTransfers and subsidies

1.14 Reserve ComponentCurrent paymentTransfers and subsidies

791

643

10 64218

5 5295

50 85682

170 57741

261 383547

66 371114

39 03812

34 93950

20 31032

6 2757

4 1467

9 5117

-

-

(34 670)-

--

--

--

--

--

--

--

--

--

--

--

791

643

12 47613

4 8484

45 71865

155 53241

258 285439

69 351110

34 25370

32 47952

17 45316

6 6779

3 1105

8 4958

791

643

12 47613

4 8484

45 71865

155 53241

258 285439

69 351110

34 25370

32 47952

17 45316

6 6779

3 1105

8 4958

-

-

--

--

--

--

--

--

--

--

--

--

--

--

100,00%

100,00%

100,00%100,00%

100,00%100,00%

100,00%100,00%

100,00%100,00%

100,00%100,00%

100,00%100,00%

100,00%100,00%

100,00%100,00%

100,00%100,00%

100,00%100,00%

100,00%100,00%

100,00%100,00%

746

607

12 578-

4 507-

47 456-

142 686-

244 848-

60 228-

27 752-

30 138-

18 000-

6 626-

2 621-

8 252-

746

607

12 578-

4 507-

47 456-

142 686-

244 848-

60 228-

27 752-

30 138-

18 000-

6 626-

2 621-

8 252-

-

-

36 504(5)

(681)(1)

(5 138)(17)

(15 045)-

(3 098)(108)

2 980 (4)

(4 785)58

(2 460)2

(2 857)(16)

4022

(1 036)(2)

(1 016)1

c h a p t e r 1 5


DETAIL PER PROGRAMME 1 - ADMINISTRATIONfor the year ended 31 March 2005 (continued)


Economic classification

2004/05 2003/04


Goods and services



Gifts and donations

Total

584 897

156 482

-

940

-

742 319

(23 997)

(10 673)

-

-

-

(34,670)

560 900

130 153

15 729

825

42

707 649

560 900

130 153

15 729

825

42

707 649

-

-

-

-

-

-

100,00%

100,00%

100,00%

100,00%

100,00%

100,00%

518 461

139 662

8 015

-

-

666 138

518 461

139 662

8 015

-

-

666 138

-

(15 656)

15 729

(115)

42

-

Programme

2004/05 2003/04

1.15 Defence Foreign RelationsCurrent paymentTransfers and subsidies

1.16 Authorised LossesCurrent payment

1.17 IncomeCurrent payment

Total

60 36620

-

-

742 319

--

-

-

(34 670)

41 98933

15 729

(1 045)

707 649

41 98933

15 729

(1 045)

707 649

--

-

-

-

100,00%100,00%

100,00%

100,00%

100,00%

51 640-

8 015

(562)

666 138

51 640-

8 015

(562)

666 138

(18 377)13

15 729

(1 045)

-

AdjustedAppropria-

tion

R’000

Virement

R’000

FinalAppropria-

tion

R’000

ActualPayment

R’000

Variance

R’000


tion%

FinalAppropria-

tion

R’000

ActualPayment

R’000

Shiftingof Funds

R’000

AdjustedAppropria-

tion

R’000

Virement

R’000

FinalAppropria-

tion

R’000

ActualPayment

R’000

Variance

R’000


tion%

FinalAppropria-

tion

R’000

ActualPayment

R’000

Shiftingof Funds

R’000


c h a p t e r 1 5

DETAIL PER PROGRAMME 2 - LANDWARD DEFENCEfor the year ended 31 March 2005



2004/05 2003/04

2.1 Strategic DirectionCurrent paymentTransfers and subsidies

2.2 Infantry CapabilityCurrent paymentTransfers and subsidies

2.3 Armour CapabilityCurrent paymentTransfers and subsidies

2.4 Artillery CapabilityCurrent paymentTransfers and subsidies

2.5 Air Defence Artillery CapabilityCurrent paymentTransfers and subsidies

2.6 Engineering CapabilityCurrent paymentTransfers and subsidies

2.7 Operational IntelligenceCurrent paymentTransfers and subsidies

2.8 Command and Control CapabilityCurrent paymentTransfers and subsidies

2.9 Support CapabilityCurrent paymentTransfers and subsidies

2.10 General Training CapabilityCurrent paymentTransfers and subsidies

2.11 Defence CommitmentsCurrent payment


2.13 Internal ServicesCurrent payment


Total

138 478151

1 450 5413 711

123 947323

102 738192

82 152133

178 031465

59 772126

38 82282

974 3851 835

149 47998

-

-

-

-

3 305 461

(114 254)(800)

--

--

--

--

--

--

--

--

--

-

-

-

-

(115 054)

96 013172

1 377 1622 856

121 143238

99 335162

77 507203

166 612383

57 433105

50 944115

1 172 9791 623

127 335154

26

11 810

(171 463)

(2 440)

3 190 407

96 013172

1 377 1622 856

121 143238

99 335162

77 507203

166 612383

57 433105

50 944115

1 172 9791 623

127 335154

26

11 810

(171 463)

(2 440)

3 190 407

--

--

--

--

--

--

--

--

--

--

-

-

-

-

-

100,00%100,00%

100,00%100,00%

100,00%100,00%

100,00%100,00%

100,00%100,00%

100,00%100,00%

100,00%100,00%

100,00%100,00%

100,00%100,00%

100,00%100,00%

100,00%

100,00%

100,00%

100,00%

100,00%

94 539-

1 347 872-

117 248-

92 722-

75 659-

164 615-

53 216-

41 359-

1 189 049-

110 090-

1 023

6 607

(174 323)

(1 174)

3 118 502

94 539-

1 347 872-

117 248-

92 722-

75 659-

164 615-

53 216-

41 359-

1 189 049-

110 090-

1 023

6 607

(174 323)

(1 174)

3 118 502

71 789 821

(73 379)(855)

(2 804)(85)

(3 403)(30)

(4 645)70

(11 419)(82)

(2 339)(21)

12 12233

198 594(212)

(22 144)56

26

11 810

(171 463)

(2 440)

-

AdjustedAppropria-

tion

R’000

Virement

R’000

FinalAppropria-

tion

R’000

ActualPayment

R’000

Variance

R’000

Paymentas % of

final appro-priation

%

FinalAppropria-

tion

R’000

ActualPayment

R’000

Shiftingof Funds

R’000

c h a p t e r 1 5


DETAIL PER PROGRAMME 2 - LANDWARD DEFENCEfor the year ended 31 March 2005 (continued)



2004/05 2003/04


Goods and services



Gifts and donations

Total

2 705 198

593 147

-

7 116

-

3 305 461

(65 805)

(48 449)

-

( 800)

-

(115 054)

2 639 393

533 192

11 810

5 962

50

3 190 407

2 639 393

533 192

11 810

5 962

50

3 190 407

-

-

-

-

-

-

100,00%

100,00%

100,00%

100,00%

100,00%

100,00%

2 517 046

594 849

6 607

-

-

3 118 502

2 517 046

594 849

6 607

-

-

3 118 502

-

(11 506)

11 810

(354)

50

-

AdjustedAppropria-

tion

R’000

Virement

R’000

FinalAppropria-

tion

R’000

ActualPayment

R’000

Variance

R’000

Payment as% of final

appro-priation

%

FinalAppropria-

tion

R’000

ActualPayment

R’000

Shiftingof Funds

R’000


c h a p t e r 1 5

DETAIL PER PROGRAMME 3 - AIR DEFENCEfor the year ended 31 March 2005



2004/05 2003/04


3.2 Operational DirectionCurrent payment

3.3 Helicopter CapabilityCurrent paymentTransfers and subsidies

3.4 Transport and Maritime CapabilityCurrent paymentTransfers and subsidies

3.5 Air Combat and ReconnaissanceCapabilityCurrent paymentTransfers and subsidies

3.6 Operational Support and IntelligenceCapabilityCurrent paymentTransfers and subsidies

3.7 Command and Control CapabilityCurrent paymentTransfers and subsidies

3.8 Base Support CapabilityCurrent paymentTransfers and subsidies

3.9 Command PostCurrent paymentTransfers and subsidies

3.10 Training CapabilityCurrent paymentTransfers and subsidies

3.11 Technical Support ServicesCurrent paymentTransfers and subsidies




Total

5 816-

27 612

268 098118

204 925136

196 584174

102 872157

144 302140

516 321550

35 36647

226 339241

488 931249

-

-

-

2 218 978

37 915600

-

--

--

--

--

--

--

--

--

--

-

-

-

38 515

8 2193

91 221

239 977189

167 045115

227 357139

103 645209

131 375119

668 2471 020

32 78938

160 406197

505 285248

2 723

(74 922)

(8 151)

2 257 493

8 2193

91 221

239 900189

166 807115

227 357139

103 645209

131 375119

668 2471 020

32 78938

160 406197

505 285248

2 723

(74 922)

(8 151)

2 257 178

--

-

77-

238-

--

--

--

--

--

--

--

-

-

-

315

100,00%100,00%

100,00%

99,97%100,00%

99,86%100,00%

100,00%100,00%

100,00%100,00%

100,00%100,00%

100,00%100,00%

100,00%100,00%

100,00%100,00%

100,00%100,00%

100,00%

100,00%

100,00%

99,99%

6 273-

69 208

243 320-

187 004-

235 373-

103 428-

129 920-

575 268-

35 868-

165 813-

485 652-

4 067

(75 960)

(9 986)

2 155 248

6 273-

69 208

243 320-

187 004-

235 373-

103 428-

129 920-

575 268-

35 868-

165 813-

485 652-

4 067

(75 960)

(9 986)

2 155 248

(35 512)(597)

63 609

(28 121)71

(37 880)(21)

30 773(35)

77352

(12 927)(21)

151 926470

(2 577)(9)

(65 933)(44)

16 354(1)

2 723

(74 922)

(8 151)

-

AdjustedAppropria-

tion

R’000

Virement

R’000

FinalAppropria-

tion

R’000

ActualPayment

R’000

Variance

R’000


tion%

FinalAppropria-

tion

R’000

ActualPayment

R’000

Shiftingof Funds

R’000

c h a p t e r 1 5


DETAIL PER PROGRAMME 3 - AIR DEFENCEfor the year ended 31 March 2005 (continued)



2004/05 2003/04


Goods and services



Total

1 164 293

1 052 872

-

1 813

2 218 978

9 554

28 361

-

600

38 515

1 173 847

1 078 646

2 723

2 277

2 257 493

1 173 847

1 078 331

2 723

2 277

2 257 178

-

315

-

-

315

100,00%

99,97%

100,00%

100,00%

99,99%

1 099 728

1 051 453

4 067

-

2 155 248

1 099 728

1 051 453

4 067

-

2 155 248

-

(2 587)

2 723

(136)

-

AdjustedAppropria-

tion

R’000

Virement

R’000

FinalAppropria-

tion

R’000

ActualPayment

R’000

Variance

R’000


tion%

FinalAppropria-

tion

R’000

ActualPayment

R’000

Shiftingof Funds

R’000


c h a p t e r 1 5

DETAIL PER PROGRAMME 4 - MARITIME DEFENCEfor the year ended 31 March 2005



2004/05 2003/04


2004/05 2003/04


Goods and services



Total

687 411

397 224

-

1 604

1 086 239

(1 413)

16 196

-

(200)

14 583

685 998

412 706

1 030

1 088

1 100 822

685 998

412 706

1 030

1 088

1 100 822

-

-

-

-

-

100,00%

100,00%

100,00%

100,00%

100,00%

633 942

379 698

761

-

1 014 401

633 942

379 698

761

-

1 014 401

-

(714)

1 030

(316)

-

4.1 Maritime DirectionCurrent paymentTransfers and subsidies

4.2 Maritime Combat CapabilityCurrent paymentTransfers and subsidies

4.3 Maritime Logistic Support CapabilityCurrent paymentTransfers and subsidies

4.4 Maritime Training CapabilityCurrent paymentTransfers and subsidies


4.6 Maritime Reserve CapabilityCurrent payment



Total

214 109457

280 317197

167 610290

140 453232

282 146428

-

-

-

1 086 239

14 783(200)

--

--

--

--

-

-

-

14 583

262 666358

276 112185

175 440182

108 133100

282 356263

7

1 029

(6 009)

1 100 822

262 666358

276 112185

175 440182

108 133100

282 356263

7

1 029

(6 009)

1 100 822

--

--

--

--

--

-

-

-

-

100,00%100,00%

100,00%100,00%

100,00%100,00%

100,00%100,00%

100,00%100,00%

100,00%

100,00%

100,00%

100,00%

391 689-

124 109-

149 679-

78 529-

259 171-

10 655

761

(192)

1 014 401

391 689-

124 109-

149 679-

78 529-

259 172-

10 654

761

(192)

1 014 401

33 774101

(4 205)(12)

7 830(108)

(32 320)(132)

210(165)

7

1 029

(6 009)

-

AdjustedAppropria-

tion

R’000

Virement

R’000

FinalAppropria-

tion

R’000

ActualPayment

R’000

Variance

R’000


tion%

FinalAppropria-

tion

R’000

ActualPayment

R’000

Shiftingof Funds

R’000

AdjustedAppropria-

tion

R’000

Virement

R’000

FinalAppropria-

tion

R’000

ActualPayment

R’000

Variance

R’000


tion%

FinalAppropria-

tion

R’000

ActualPayment

R’000

Shiftingof Funds

R’000

c h a p t e r 1 5


DETAIL PER PROGRAMME 5 - MILITARY HEALTH SUPPORTfor the year ended 31 March 2005



2004/05 2003/04


2004/05 2003/04


Goods and services



Total

940 668

362 912

-

1 647

1 305 227

(4 602)

40 031

-

250

35 679

936 066

399 546

3 463

1 831

1 340 906

936 066

399 546

3 463

1 831

1 340 906

-

-

-

-

-

100,00%

100,00%

100,00%

100,00%

100,00%

875 790

461 826

5 503

-

1 343 119

875 790

461 826

5 503

-

1 343 119

-

(3 397)

3 463

(66)

-


5.2 Military Health SupportCurrent paymentTransfers and subsidies

5.3 Area Military Health ServiceCurrent paymentTransfers and subsidies

5.4 Specialist/ Tertiary Health ServiceCurrent paymentTransfers and subsidies

5.5 Product Support CapabilityCurrent paymentTransfers and subsidies


5.7 Military Health Training CapabilityCurrent paymentTransfers and subsidies



Total

89 907160

43 76461

441 883601

522 400580

49 23258

57 3567

99 038180

-

-

1 305 227

35 429250

--

--

--

--

--

--

-

-

35 679

77 141101

45 72958

501 561717

482 886633

64 43733

79 732142

89 669147

3 463

(5 543)

1 340 906

77 141101

45 72958

501 561717

482 886633

64 43733

79 732142

89 669147

3 463

(5 543)

1 340 906

--

--

--

--

--

--

--

-

-

-

100,00%100,00%

100,00%100,00%

100,00%100,00%

100,00%100,00%

100,00%100,00%

100,00%100,00%

100,00%100,00%

100,00%

100,00%

100,00%

67 279-

47 522-

506 315-

505 159-

69 006-

65 361-

82 213-

5 503

(5 239)

1 343 119

67 279-

47 522-

506 315-

505 159-

69 006-

65 361-

82 213-

5 503

(5 239)

1 343 119

(48 195)(309)

1 965(3)

59 678116

(39 514)53

15 205(25)

22 376135

(9 369)(33)

3 463

(5 543)

-

AdjustedAppropria-

tion

R’000

Virement

R’000

FinalAppropria-

tion

R’000

ActualPayment

R’000

Variance

R’000


tion%

FinalAppropria-

tion

R’000

ActualPayment

R’000

Shiftingof Funds

R’000

AdjustedAppropria-

tion

R’000

Virement

R’000

FinalAppropria-

tion

R’000

ActualPayment

R’000

Variance

R’000


tion%

FinalAppropria-

tion

R’000

ActualPayment

R’000

Shiftingof Funds

R’000


c h a p t e r 1 5

DETAIL PER PROGRAMME 6 - DEFENCE INTELLIGENCEfor the year ended 31 March 2005



2004/05 2003/04


2004/05 2003/04


Goods and services



Total

103 572

31 067

-

181

134 820

5 981

(2 689)

-

50

3 342

109 553

28 382

20

207

138 162

109 553

28 382

20

207

138 162

-

-

-

-

-

100,00%

100,00%

100,00%

100,00%

100,00%

102 977

31 370

52

-

134 399

102 977

29 959

52

-

132 988

-

4

20

(24)

-


6.2 Defence Counter Intelligence ServicesCurrent payment

6.3 Defence Intelligence SupportCurrent paymentTransfers and subsidies

6.4 Defence Intelligence TrainingCurrent payment



Total

(5 344)-

11 510

128 473181

-

-

-

134 820

3 29250

-

--

-

-

-

3 342

111 864207

5 971

20 149-

-

20

(49)

138 162

111 864207

5 971

20 149-

-

20

(49)

138 162

--

-

--

-

-

-

-

100,00%100,00%

100,00%

100,00%0,00%

0,00%

100,00%

100,00%

100,00%

103 243-

12 483

18 266-

358

52

(3)

134 399

101 832-

12 482

18 267-

358

52

(3)

132 988

113 916157

(5 539)

(108 324)( 181)

-

20

(49)

-

AdjustedAppropria-

tion

R’000

Virement

R’000

FinalAppropria-

tion

R’000

ActualPayment

R’000

Variance

R’000


tion%

FinalAppropria-

tion

R’000

ActualPayment

R’000

Shiftingof Funds

R’000

AdjustedAppropria-

tion

R’000

Virement

R’000

FinalAppropria-

tion

R’000

ActualPayment

R’000

Variance

R’000


tion%

FinalAppropria-

tion

R’000

ActualPayment

R’000

Shiftingof Funds

R’000

c h a p t e r 1 5


DETAIL PER PROGRAMME 7 - JOINT SUPPORTfor the year ended 31 March 2005



2004/05 2003/04


7.2 Joint Logistic ServicesCurrent paymentTransfers and subsidiesExpenditure for capitalassets

7.3 Command and ManagementInformation ServicesCurrent paymentTransfers and subsidies

7.4 Military PoliceCurrent paymentTransfers and subsidies

7.5 Service CorpsCurrent paymentTransfers and subsidies

7.6 Acquisition ServicesCurrent payment

7.7 Joint TrainingCurrent paymentTransfers and subsidies

7.8 AssistanceTransfers and subsidies

7.9 Departmental SupportCurrent paymentTransfers and subsidies

7.10 British Military Advisory and TrainingCurrent payment



Total

5 236-

573 0061 415

71 613

820 972380

212 910400

49 66443

2 488

96 9556 238

350

206 893286 559

-

-

-

2 335 122

65 583-

---

--

--

--

-

--

-

--

-

-

-

65 583

114 844107

425 346791

79 638

897 516737

212 605382

46 82666

2 408

149 4406 284

350

168 408286 559

8 830

67

(499)

2 400 705

114 433107

425 346791

79 638

897 516737

212 605382

46 82666

2 408

149 4406 070

283

168 408286 559

8 830

67

(499)

2 400 013

411-

---

--

--

--

-

-214

67

--

-

-

-

692

99,64%100,00%

100,00%100,00%100,00%

100,00%100,00%

100,00%100,00%

100,00%100,00%

100,00%

100,00%96,59%

80,86%

100,00%100,00%

100,00%

100,00%

100,00%

99,97%

131 707-

381 284-

57 578

838 101-

196 489-

44 100-

2 327

149 9095 776

3 930

36 865251 936

6 054

41

(158)

2 105 939

131 707-

381 284-

43 672

838 101-

196 489-

44 100-

2 327

149 9095 704

3 896

36 865251 635

6 054

41

(158)

2 091 626

44 025107

(147 660)(624)8 025

76 544357

(305)(18)

(2 838)23

(80)

52 48546

-

(38 485)-

8 830

67

(499)

-

AdjustedAppropria-

tion

R’000

Virement

R’000

FinalAppropria-

tion

R’000

ActualPayment

R’000

Variance

R’000


tion%

FinalAppropria-

tion

R’000

ActualPayment

R’000

Shiftingof Funds

R’000


c h a p t e r 1 5

DETAIL PER PROGRAMME 7 - JOINT SUPPORTfor the year ended 31 March 2005 (continued)



2004/05 2003/04


Goods and services



Departmental agencies and accounts

Non-profit institutions

Payments on capital assetsBuildings and other fixed structures

Total

1 110 868

857 246

-

2 387

290 197

2 811

71 613

2 335 122

26 951

38 632

-

-

-

-

-

65 583

1 137 819

887 906

67

2 267

290 197

2 811

79 638

2 400 705

1 137 819

887 494

67

2 267

289 983

2 745

79 638

2 400 013

-

412

-

-

214

66

-

692

100,00%

99,95%

100,00%

100,00%

99,93%

97,65%

100,00%

99,97%

1 048 405

738 274

40

-

255 412

6 230

57 578

2 105 939

1 048 405

738 274

40

-

255 339

5 896

43 672

2 091 626

-

(7 972)

67

(120)

-

-

8 025

-

AdjustedAppropria-

tion

R’000

Virement

R’000

FinalAppropria-

tion

R’000

ActualPayment

R’000

Variance

R’000


tion%

FinalAppropria-

tion

R’000

ActualPayment

R’000

Shiftingof Funds

R’000

c h a p t e r 1 5


DETAIL PER PROGRAMME 8 - COMMAND AND CONTROLfor the year ended 31 March 2005



2004/05 2003/04


2004/05 2003/04


Goods and services



Total

473 181

765 136

-

336

1 238 653

5 844

(13 922)

-

100

(7 978)

479 025

751 252

-

398

1 230 675

479 025

751 252

-

398

1 230 675

-

-

-

-

-

100,00%

100,00%

0,00%

100,00%

100,00%

412 986

833 392

108

-

1 246 486

412 986

875 096

108

-

1 288 190

-

38

-

(38)

-

8.1 Command and ControlCurrent paymentTransfers and subsidies

8.2 Special OperationsCurrent paymentTransfers and subsidies

8.3 Regional SecurityCurrent payment

8.4 Conventional OperationsCurrent payment




Total

117 054170

135 202166

700 000

286 061

-

-

-

1 238 653

(8 078)100

--

-

-

-

-

-

(7 978)

148 416185

129 143213

628 061

77 337

-

247 880

(560)

1 230 675

148 416185

129 143213

628 061

77 337

-

247 880

(560)

1 230 675

--

--

-

-

-

-

-

-

100,00%100,00%

100,00%100,00%

100,00%

100,00%

0,00%

100,00%

100,00%

100,00%

113 387-

129 002-

691 455

91 992

108

220 556

(14)

1 246 486

113 387-

129 002-

733 159

91 992

108

220 556

(14)

1 288 190

39 440(85)

(6 059)47

(71 939)

(208 724)

-

247 880

(560)

-

AdjustedAppropria-

tion

R’000

Virement

R’000

FinalAppropria-

tion

R’000

ActualPayment

R’000

Variance

R’000


tion%

FinalAppropria-

tion

R’000

ActualPayment

R’000

Shiftingof Funds

R’000

AdjustedAppropria-

tion

R’000

Virement

R’000

FinalAppropria-

tion

R’000

ActualPayment

R’000

Variance

R’000


tion%

FinalAppropria-

tion

R’000

ActualPayment

R’000

Shiftingof Funds

R’000


c h a p t e r 1 5

DETAIL PER PROGRAMME 9 - SPECIAL DEFENCE ACCOUNTfor the year ended 31 March 2005



2004/05 2003/04


2004/05 2003/04

Transfers and subsidiesDepartmental agencies and accounts

Total

7 045 000

7 045 000

-

-

7 045 000

7 045 000

7 045 000

7 045 000

-

-

100,00%

100,00%

8 015 772

8 015 772

8 015 772

8 015 772

-

-

9.1 Procurement ServicesTransfers and subsidies

9.2 Strategic Defence ProcurementTransfers and subsidies

9.3 OperatingTransfers and subsidies

9.4 Intelligence RelatedTransfers and subsidies

Total

1 956 567

4 501 866

521 141

65 426

7 045 000

-

-

-

-

-

1 956 567

4 501 866

521 141

65 426

7 045 000

1 956 567

4 501 866

521 141

65 426

7 045 000

-

-

-

-

-

100,00%

100,00%

100,00%

100,00%

100,00%

1 414 781

5 889 034

661 299

50 658

8 015 772

1 414 781

5 889 034

661 299

50 658

8 015 772

-

-

-

-

-

AdjustedAppropria-

tion

R’000

Virement

R’000

FinalAppropria-

tion

R’000

ActualPayment

R’000

Variance

R’000


tion%

FinalAppropria-

tion

R’000

ActualPayment

R’000

Shiftingof Funds

R’000

AdjustedAppropria-

tion

R’000

Virement

R’000

FinalAppropria-

tion

R’000

ActualPayment

R’000

Variance

R’000


tion%

FinalAppropria-

tion

R’000

ActualPayment

R’000

Shiftingof Funds

R’000

c h a p t e r 1 5


NOTES TO THE APPROPRIATION STATEMENTfor the year ended 31 March 2005


1 . D e t a i l o f t r a n s f e r s a n d s u b s i d i e s a s p e r A p p r o p r i a t i o n A c t( a f t e r V i r e m e n t ) :

Detail of these transactions can be viewed in note 9 (Transfers and subsidies) and Annexure 1 (A - E) to theAnnual Financial Statements.

2 . D e t a i l o f s p e c i f i c a l l y a n d e x c l u s i v e l y a p p r o p r i a t e d a m o u n t sv o t e d ( a f t e r V i r e m e n t ) :

Detail of these transactions can be viewed in note 1 (Annual Appropriation) to the Annual FinancialStatements.

3 . D e t a i l o n f i n a n c i a l t r a n s a c t i o n s i n a s s e t s a n d l i a b i l i t i e s :

Detail of these transactions per programme can be viewed in note 6 (Details of special functions (theft andlosses)) to the Annual Financial Statements.


c h a p t e r 1 5

STATEMENT OF FINANCIAL PERFORMANCEfor the year ended 31 March 2005


REVENUEAnnual appropriation

Departmental revenue

TOTAL REVENUE

EXPENDITURECurrent expenditureCompensation of employees

Goods and services


Total current expenditure

Transfers and subsidies

Expenditure for capital assetsBuildings and other fixed structures

Total expenditure for capital assets

TOTAL EXPENDITURE

NET SURPLUSAdd back unauthorised expenditure

Add back fruitless and wasteful expenditure

NET SURPLUS FOR THE YEAR

Reconciliation of Net Surplus for the yearVoted Funds to be surrendered to the Revenue Fund

Departmental revenue to be surrendered to the Revenue

Fund

NET SURPLUS FOR THE YEAR

2004/05R'000

19 411 819465 742

19 877 561

7 722 6014 221 056

34 84211 978 499

7 352 675

79 63879 638

19 410 812

466 749-

30

466 779

1 037465 742

466 779

Note

1

2

4

5

6

9

10

7

8

14

15

2003/04R'000

19 800 004

468 453

20 268 457

7 209 335

4 270 817

25 153

11 505 305

8 277 007

43 672

43 672

19 825 984

442 473

40 452

15

482 940

14 487

468 453

482 940

c h a p t e r 1 5


STATEMENT OF FINANCIAL POSITIONas at 31 March 2005


ASSETS

Current assetsUnauthorised expenditure

Fruitless and wasteful expenditure

Cash and cash equivalents

Loans

Prepayments and advances

Receivables

Non-current assetsLoans

TOTAL ASSETS

LIABILITIES

Current liabilitiesVoted funds to be surrendered to the Revenue Fund

Departmental revenue to be surrendered to the Revenue

Fund

Bank overdraft

Payables

TOTAL LIABILITIES

NET ASSETS

Represented by:Recoverable revenue

TOTAL

2004/05R'000

759 093495 824

46934 275

8 16029 714

190 651

4 2024 202

763 295

691 9641 037

13 073

622 79855 056

691 964

71 331

71 331

71 331

Note

7

8

11

12

13

14

15

16

17

2003/04R'000

780 061

495 824

644

46 626

4 560

24 697

207 710

7 802

7 802

787 863

696 576

14 487

24 684

640 347

17 058

696 576

91 287

91 287

91 287


c h a p t e r 1 5

STATEMENT OF CHANGES IN NET ASSETSfor the year ended 31 March 2005


Recoverable revenueOpening balance

Debts written off

Debts recovered (included in departmental receipts)

Debts raised

Closing balance

TOTAL

2004/05R'000

91 287(24 281)(23 453)

27 77871 331

71 331

Note

6.6

2003/04R'000

84 234

(8 491)

(28 932)

44 476

91 287

91 287

c h a p t e r 1 5


CASH FLOW STATEMENTfor the year ended 31 March 2005


CASH FLOWS FROM OPERATING ACTIVITIESReceipts

Annual appropriated funds received

Departmental revenue received

Net decrease in working capital

Surrendered to Revenue Fund

Current payments

Transfers and subsidies paid

Net cash flows available from operating activities

CASH FLOWS FROM INVESTING ACTIVITIESPayments for capital assets

Net cash flows from investing activities

CASH FLOWS FROM FINANCING ACTIVITIESDecrease in loans received

Net cash flows from financing activities

Net increase in cash and cash equivalents

Cash and cash equivalents at beginning of period

Cash and cash equivalents at end of period

2004/05R'000

19 889 60319 411 819

465 74212 042

(491 840)(11 940 296)(7 352 675)

104 792

(79 638)(79 638)

(19 956)(19 956)

5 198

(593 721)

(588 523)

Note

18


c h a p t e r 1 5

NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2005


1 . A n n u a l A p p r o p r i a t i o n

1.1 Annual AppropriationIncluded are funds appropriated in terms of the Appropriation Act for National Departments (Voted Funds):

AdministrationLandward DefenceAir DefenceMaritime DefenceMilitary Health SupportDefence IntelligenceJoint SupportCommand and ControlSpecial Defence AccountTOTAL

----------

Varianceover/(under)

R'000

FinalAppropriation

R'000

Programmes

707 6493 190 4072 257 4931 100 8221 340 906

138 1622 400 7051 230 6757 045 000

19 411 819

Actual FundsReceived

R'000

666 1383 118 5022 155 2481 014 4011 343 119

134 3992 105 9391 246 4868 015 772

19 800 004

Total Appropriation

2003/04R'000

707 6493 190 4072 257 4931 100 8221 340 906

138 1622 400 7051 230 6757 045 000

19 411 819

2 . D e p a r t m e n t a l r e v e n u e t o b e s u r r e n d e r e d t o R e v e n u e F u n d

DescriptionSales of goods and services other than capital assetsFines, penalties and forfeitsInterest, dividends and rent on landRecoverable revenue receivedFinancial transactions in assets and liabilitiesDepartmental revenue collected

411 9506 618

6128 93120 893

468 453

2003/04R'000

411 8632 122

-23 45328 304

465 742

2004/05R'000

2.1

Note

2.1 Financial transactions in assets and liabilities

Nature of loss recoveredCheques written backMaterial losses recoveredOther

--

20 89320 893

392499

27 41328 304

Reimbursement

Received fromUnited NationsAfrican Union

113 81158 248

2.2 Included in Departmental Revenue received is reimbursements from foreign countries

PurposePeace missionsPeace missions

c h a p t e r 1 5


NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2005 (continued)


2.3 Included in Departmental Revenue (Other) is the following material items

Name of donor and purposeForeignGovernment of the United States of America - Aids awareness promotionGovernment of the People's Republic of China - 100 Dell OptoPlex GX270

computers and 100 HP Laserjet 1150 printersGovernment of the United States of America - Weatherhaven field hospitalGovernment of the United Kingdom - Operation Mistral; various items

including trucks, tent houses, etc.Government of the United States of America - Policy writing instructors

courseGovernment of the United States of America - BK117 helicopter enginesGovernment of the United States of America - C130 Simulator and flying

instructor trainingGovernment of the Federal Republic of Germany - Training equipmentGovernment of the United States of America - Flying safety trainingGovernment of Canada - French language courseGovernment of Canada - Peacekeeping courseGovernment of the United States of America - Training program in NorfolkGovernment of the Kingdom of Mali - Peacekeeping courseGovernment of the United States of America - Acer Travelmate with

accessoriesGovernment of Canada - Training programGovernment of the United States of America - Strategic planners

workshopGovernment of the United States of America - Course in the United States

of AmericaGovernment of the Kingdom of Sweden - Unsoc Officer staff courseGovernment of the Federal Republic of Germany - Single quarters for

Service Corps learnersGovernment of the Federal Republic of Germany - Technical and compu-

ter training and equipment for the Service CorpsGoverment of the United Kingdom - SANWCTotal local and foreign aid assistance received in kind

1 752-

31 63013 985

11 710

7 5594 464

1 6391 245

70699624038

3834

29

28-

-

-75 058

2003/04R'000

2 529692

--

-

--

-------

--

-

-6 494

1 376

1 70012 791

2004/05R'000

4 . C o m p e n s a t i o n o f e m p l o y e e s4.1 Salaries and wages

Basic salaryPerformance awardService BasedCompensative/circumstantialOther non-pensionable allowances

5 100 98572 050

225 172144 966859 414

6 402 587

5 481 62183 896

227 594170 598906 083

6 869 792

Domestic servicesBus ticketsMiscellaneousParking

9 0533 2322 4071 265

3 . L o c a l a n d f o r e i g n a i d a s s i s t a n c e3.1 Assistance received in kind


c h a p t e r 1 5



4.2 Social contributions

4.2.1 Short term employee benefits

PensionMedical

Total compensation of employees

Average number of employees

756 59850 150

806 748

7 209 335

75 620

2003/04R'000

807 94244 867

852 809

7 722 601

76 133

2004/05R'000

Note

5 . G o o d s a n d s e r v i c e s

AdvertisingBank charges and card feesCommunicationComputer servicesConsultants, contractors and special servicesCourier and delivery servicesTracing agents and debt collectionsDrivers licences and permitsEntertainmentExternal audit feesEquipment less than R5000Freight serviceInventoryLegal feesMaintenance, repair and running costMedical servicesOperating leasesMint of decorations/medalsPrinting and publicationsProfessional bodies and membership feesResettlement costsSchool and boarding feesSubscriptionsOwned and leasehold property expenditureTranslations and transcriptionsTravel and subsistenceProtective, special clothing and uniformsTraining and staff development

2 0813 458

116 620530 363375 976

6057

441 127

29 455383 464

4 778967 561

2 7731 013 027

129 66152 548

1 3737 283

95248 583

1 480534

12 9714 781

489 40444

89 8644 270 817

2 7254 020

97 234600 736337 461

1 8815

38910

26 048363 159

2 836913 401

20975 474127 004

58 5621 4646 4931 100

26 5591 077

44815 740

3 507577 701

-75 453

4 221 056

5.1

5.2

5.3

c h a p t e r 1 5




5.1 External audit fees

Regulatory auditsPerfomance auditsOther auditsTotal external audit fees

26 615733

2 10729 455

2003/04R'000

26 048--

26 048

2004/05R'000

Note

5.2 Inventory

Domestic consumablesAgriculturalLearning and teaching support materialFood and food suppliesFuel, oil and gasLaboratory consumablesOther consumablesParts and other maintenance materialStationery and printingVeterinary suppliesMedical suppliesWeapons and armamentsTotal Inventory

119 8194 126

262226 278222 981

9 84061 44976 70659 462

1 344184 132

1 162967 561

70 5413 516

358208 357279 891

8 68828 93169 28359 939

627178 131

5 139913 401

5.3 Travel and subsistence

LocalForeignTotal travel and subsistence

196 401293 003489 404

189 726387 975577 701

6 . F i n a n c i a l t r a n s a c t i o n s i n a s s e t s a n d l i a b i l i t i e s

Material losses through criminal conductOther material losses written offDebts written off

52816 134

8 49125 153

-12 56422 27834 842

6.16.26.4

6.1 Material losses through criminal conduct

Nature of lossesFraud on warrant vouchers 528-


c h a p t e r 1 5



6.2 Other material losses written off in Statement of Financial Performance

Nature of lossesMotor vehicle lossesLegal representationLegal opinionsLegal fees State AttorneyLegal feesSpectacle lossesInterest claimsForeign exchange lossesClaims against the State

2 1791 925

5997 167

-4062

2713 891

16 134

2003/04R'000

2 0342 3571 4273 823

613419

1 1631 646

12 564

2004/05R'000

6.3 Other material losses of items expensed in previous periods(Total not included above)

Nature of lossesLoss of ammunitionMilitary vehicles damages and lossesTheft of assetsTheft of military vehicle and accessoriesLoss of assetsDamage to buildings and equipmentDamage to firearmsTheft of firearmsLoss of firearmsMilitary aircraft damages and lossesLoss of firearm accessoryRooivalk 670 not included in military aircraft damages and lossesCessna C208 not included in military aircraft damages and lossesCheetah B862 not included in military aircraft damages and lossesFire at building not included in damages to buildings and equipmentSamil 100 not included in military vehicles damages and lossesPilatus Astra Aircraft 2035 not included in aircraft damages and lossesBosvark not included in military vehicles damages and lossesCessna 185 not included in military aircraft damages and losses

-11 719

3841 1481 341

7708

4318

3 0691--------

18 501

15 99810 868

4653892115646341614

-8 0004 7284 0831 197

878603599526

48 711

c h a p t e r 1 5




6.4 Bad debts written off

Nature of debts written offPayment of supplier on behalf of various departmentsSalary relatedState guaranteesNo substantiating documentationMotor vehicle accidentsEstatesDebts raised concerning fruitless and wasteful expenditureContractual liabilitiesSuppliers overpaidLoss of state fundsSubsistence and travelLoss of state propertyMedical costsTreatment of private patientsVIP refreshmentsCivil claimDamage to State propertyMiscellaneousDeferred payDishonoured chequesSupplier overpaid not included above

-1 231

91-

80570

2745 578

9-7

773

18850504311

31-

8 491

2003/04R'000

10 0006 9492 671

697678524207140

6464181513

-------

23822 278

2004/05R'000

6.5 Details of theft and losses

Per programmeAdministrationLandward DefenceAir DefenceMaritime DefenceMilitary Health SupportDefence IntelligenceJoint SupportCommand and Control

8 0156 6074 067

7615 503

5240

10825 153

15 72911 8102 7231 0303 463

2067

-34 842


c h a p t e r 1 5



6.6 Recoverable revenue debts written off

Motor vehicle accidentsContractual liabilitiesPrivate patientsMedical services rendered to other entitiesSalary relatedNo substantiating documentationLoss of State propertyState guaranteesAviation fuelOperationsDockyardEstatesAviation servicesLoss of State fundsFlights against repaymentDamage to State propertySuppliers overpaidMiscellaneousPrivate institutionsSales per tenderDebts raised concerning fruitless and wasteful expenditureVIP refreshmentsCivil claimSubsistence and travelDeferred payMedical costDishonoured chequesAssistance to the Republic of Mozambique during the February/March

2000 flood (Operation LICHI) not included in OperationsAssistance to the Democratic Republic of the Congo (DRC) in the

evacuation of Tanzanians from the DRC from 14 to 22 August1998 (Operation CENTAVO) not included in Operations

Contractual liability due to death of 2 members not included inContractual liabilities

Part (40%) of civil claim against the Department payable by a thirdparty not included in Miscellaneous

Contractual dispute not included in Contractual liabilitiesAssistance to the Republic of Mozambique during the 1996 floods

(Operation SOCOR) not included in OperationsSettlement of claim not included in Contractual liabilities

8055 578

188-

1 231-

7791

---

70---

439

11--

2745050

7331-

-

-

-

--

-8 491

2003/04R'000

7 3292 7052 197

6656075835104754503531139778432313

9431-------

2 812

1 901

1 541

932

306268

26324 281

2004/05R'000

c h a p t e r 1 5




7 . U n a u t h o r i s e d e x p e n d i t u r e

7.1 Reconciliation of unauthorised expenditure

Opening balanceUnauthorised expenditure - current yearUnauthorised expenditure awaiting authorisation

455 37240 452

495 824

2003/04R'000

495 824-

495 824

2004/05R'000

Note

8 . F r u i t l e s s a n d w a s t e f u l e x p e n d i t u r e

8.1 Reconciliation of fruitless and wasteful expenditure

Opening balanceFruitless and wasteful expenditure - current yearTransfer to Statement of Financial Performance - authorised lossesFruitless and wasteful expenditure awaiting condonement

63015(1)

644

64430

(205)469

2

2

3

111

1130

Fruitless and wasteful expenditure

Incident

Refreshments procured on credit whilst received S & T for same purposeReplacement of Acer 730 Notebook keyboardPenalties with regard to late paymentsOvercharged hotel accountNon attendance of membersDeviation from State contracts

Disciplinary stepstaken/criminal proceedingsAwaiting outcome of Board of Inquiry

Liability still to be determined

Liability still to be determined

Liability still to be determinedLiability still to be determinedLiability still to be determined

9 . T r a n s f e r s a n d s u b s i d i e s

Provinces and municipalitiesDepartmental agencies and accountsNon-profit institutionsGifts and donations

-8 271 111

5 896-

8 277 007

14 8557 334 983

2 74592

7 352 675

Annexure 1AAnnexure 1BAnnexure 1CAnnexure 1E

1 0 . E x p e n d i t u r e f o r c a p i t a l a s s e t s

Buildings and other fixed structures 43 67279 638Annexure 4


c h a p t e r 1 5



1 1 . C a s h a n d c a s h e q u i v a l e n t s

Cash with commercial banksCash in transitCash on hand

18 42916 47611 72146 626

2003/04R'000

22 191773

11 31134 275

2004/05R'000

1 2 . P r e p a y m e n t s a n d a d v a n c e s

Description

Travel and subsistence 24 69729 714

1 3 . R e c e i v a b l e s

Amounts owing by other entitiesStaff debtorsClearing accountsOther debtors

101 704

34 2834 862

66 861207 710

83 397

60 3282 987

43 939190 651

Annexure 5

13.113.213.3

2003/04R'000

2004/05R'000

Note Older thanthree years

One tothree years

Less thanone year

4 670

5 643927

20 05531 295

5 454

44 2862 060

10 09861 898

73 273

10 399-

13 78697 458

Amounts of R75 986 864 (2004:R92 892 388) included above may not be recoverable, but has not been written off in the Statement of Financial Performance.

13.1 Staff debtors

Description

Salary relatedStudentsMotor vehicle accidentsDepositsState guaranteesLoss of State moneyDamage to State propertyPrivate patientsEstatesMiscellaneousDischarge of a member, not included in salary related

11 4539 3477 8522 3331 6101 234

306-

12622

-34 283

35 8089 3096 0924 1682 2871 417

164120

10-

95360 328

c h a p t e r 1 5




13.2 Clearing accounts

Description

Salary relatedLossesSuppliersFruitless and wasteful expenditureArmscor sales not included in SuppliersInterest claim for Youth Foundation Training not included in SuppliersLoss of State funds not included in Losses

392852

3 60117

--

-4 862

2003/04R'000

409789

102

854416

5072 987

2004/05R'000

13.3 Other debtors

Description

Contractual liabilitiesSalary relatedMotor vehicle accidentsAviation servicesState guaranteesSuppliersLoss of State moneyEstatesMiscellaneousOperationsMedical claimsHumanitarian aidInstitutionsPrivate patientsDockyardDamage to State propertySales per tenderMarketing supportMembers (4) forfeited State cover and was found guilty of financial misconduct

20 54612 711

9 9752 7524 8492 3321 9781 0775 132

3331779

4863 945

117409

22101

-

66 861

20 4386 9443 8872 3301 5601 048

941904843815736632283235188

6--

2 149

43 939

1 4 . V o t e d f u n d s t o b e s u r r e n d e r e d t o t h e R e v e n u e F u n d

Opening balanceTransfer from Statement of Financial PerformancePaid during the yearClosing balance

11 03214 487

(11 032)14 487

14 4871 037

(14 487)1 037


c h a p t e r 1 5



1 5 . D e p a r t m e n t a l r e v e n u e t o b e s u r r e n d e r e d t o t h e R e v e n u e F u n d

Opening balanceTransfer from Statement of Financial PerformancePaid during the yearClosing balance

196 244468 453

(640 013)24 684

2003/04R'000

24 684465 742

(477 353)13 073

2004/05R'000

1 6 . B a n k o v e r d r a f t

Paymaster General Account 640 347622 798

R'000R'000Note

1 7 . P a y a b l e s - c u r r e n t

30+ Days30 Days

Description

Advances receivedClearing accountsOther payables

166638

16 25417 058

6131 436

53 00755 056

17.117.217.3

601141

11 80912 551

121 295

41 19842 505

17.1 Advances received

Description

Deposits received for use of Naval facilities 166613

17.2 Clearing accounts

Description

SuppliersSubsistence and Travel Cash Voucher Receipts PensionsForeign Aircraft expenses not included in SuppliersReceipt from Reserve Bank not included in Suppliers

470154

14--

638

60285

9608474

1 436

2003/04Total

2004/05Total

c h a p t e r 1 5




17.3 Other payables

Description

State guaranteesUnclaimed salariesDebtors in creditSuppliersOther payablesSalaries in arrear not included in Debtors in creditSuppliers (2) not included in Suppliers aboveDischarge of a member

5 9022 9306 408

401613

---

16 254

2003/04R'000

6 1864 3106 5411 3882 663

16 10015 291

52853 007

2004/05R'000

1 8 . R e c o n c i l i a t i o n o f n e t c a s h f l o w f r o m o p e r a t i n g a c t i v i t i e s t o s u r p l u s

Net surplus as per Statement of Financial PerformanceDecrease in receivables - current(Increase) in prepayments and advances(Increase) in other current assetsDecrease in other non-current assetsIncrease in payables - currentSurrendersCapital expenditureNet cash flow generated by operating activities

466 77917 059(5 017)(3 425)

3 60037 998

(491 840)79 638

104 792

1 9 . A p p r o p r i a t e d f u n d s a n d d e p a r t m e n t a l r e v e n u e s u r r e n d e r e d

Appropriated funds surrenderedDepartmental revenue surrendered

11 032640 013651 045

14 487477 353491 840


c h a p t e r 1 5

DISCLOSURE NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2005


Liable to Motor vehicle guarantees Housing loan guarantees ClaimsOther departments

(unconfirmed balances) Capped leave

commitmentsOther

370115 978

1 651 538-

1 064 343

1 4802 833 709

2003/04R'000

446124 386982 322

335

1 061 313

-2 168 802

2004/05R'000

Annexure 3Annexure 3

Annexure 6

Note

These amounts are not recognised in the financial statements, and are disclosed to enhance the usefulness of the finan-cial statements and to comply with the statutory requirements of the Public Finance Management Act, Act 1 of 1999.

2 0 . C o n t i n g e n t l i a b i l i t i e s

NatureEmployeesEmployees

Employees

2 1 . C o m m i t m e n t s

Current expenditure

Approved and contractedApproved but not yet contractedTotal Commitments

861 4931 477 0892 338 582

807 513169 417976 930

2 2 . A c c r u a l s

Total Total 30+ Days30 Days

Goods and services 3 87354 21613 31940 897

By economic classification

Listed by programme level

Landward DefenceAir DefenceMaritime DefenceMilitary Health SupportJoint SupportCommand and Control

116

3 85915

3 873

Note: Current year figures cannot be provided.

c h a p t e r 1 5


DISCLOSURE NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2005 (continued)


2 3 . E m p l o y e e b e n e f i t s

Leave entitlementThirteenth chequePerformance awards

345229 839

20230 204

2003/04R'000

404245 564

27245 995

2004/05R'000

Note

2 4 . L e a s e s

24.1 Operating leases

Total Total Machinery andequipment

Not later than 1 yearLater than 1 year and not later than 3 yearsLater than 3 yearsTotal present value of lease liabilities

5 1822 202

6648 048

9 4057 974

12017 499

9 4057 974

12017 499

2 5 . I r r e g u l a r e x p e n d i t u r e

25.1 Reconciliation of irregular expenditure

Opening balanceIrregular expenditure - current yearTransferred to Statement of Financial Performance - authorised losses (Condoned)Irregular expenditure not condonedIrregular expenditure awaiting condonement

AnalysisCurrentPrior years

-1 493

(51)

(733)709

709-

709

709468

(220)

(333)624

115509624

25.2

25.2 Not condoned expenditure

Incident

Procurement of Plato licenses -333

Disciplinary steps taken/criminal proceedingsMember has been reprimanded

Note: Prior year figure in respect of Performance Awards is restated.


c h a p t e r 1 5

DISCLOSURE NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2005 (continued)


2 6 . S e n i o r m a n a g e m e n t p e r s o n n e l

The Minister, Deputy Minister, Director-Generals (4)Deputy Director Generals (9)Key management personnel of the Plenary Defence Staff Council (24)

3 3895 798

10 232

19 419

2003/04R'000

3 4956 934

11 669

22 098

2004/05R'000

26.126.226.3

Note

26.1 The Minister, Deputy Minister, Director-Generals

SalaryCar allowanceAllowancesEntertainmentBonusMedical

2 231602215239

6240

3 389

2 351633224205

4240

3 495

26.2 Deputy Director-Generals

SalaryAllowancesCar allowanceBonusEntertainmentMedical

3 598494

1 130284292

-5 798

3 7281 6891 005

266246

-6 934

26.3 Key Management personnel of the Plenary Defence Staff Council

SalaryCar allowanceAllowancesBonusMedicalEntertainment

6 8802 160

642404

6581

10 232

7 7792 313

899513

9075

11 669

Note: Composition of the Plenary Defence Staff Council is 35.

c h a p t e r 1 5


ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2005


ANNEXURE 1A

S T A T E M E N T O F C O N D I T I O N A L G R A N T S P A I D T O M U N I C I P A L I T I E S

RollOvers

R'000

NAME OF MUNICIPALITY

GRANT ALLOCATION TRANSFERS

Adjust-ments

R'000

ActualTransfer

R'000

% ofAvailable

FundsTransferred

%

Amountreceived

by munici-palityR'000

Amountspent


Division ofRevenue

Act

R'000

Amatola District Council

Benede Oranje District Council

Bloem-area District Council

Bo-Karoo Divisional Council

Boland District Municipality

Bophirima District Council

Bosveld District Council

Central Transitional District Council

City of Cape Town

Diamantveld District Council

Durban Corporation District Council

Eastern Free State District Council

Eastern Gauteng Services Council

Greater Johannesburg Metropolitan Council

Highveld District Council

Indlove Regional Council

Kalahari District Council

Klein Karoo Divisional Council

Lowveld District Council

Midland Divisional Council

Namakwa District Municipality

Northern District Council

Northern Free State District Council

OR Tambo District

2

105

1 255

29

11

1

34

428

1 481

455

579

125

273

321

180

25

288

76

212

1

1

1 082

95

185

2

105

1 255

29

11

1

34

428

1 481

455

579

125

273

321

180

25

288

76

212

1

1

1 082

95

185

100,0%

100,0%

100,0%

100,0%

100,0%

100,0%

100,0%

100,0%

100,0%

100,0%

100,0%

100,0%

100,0%

100,0%

100,0%

100,0%

100,0%

100,0%

100,0%

100,0%

100,0%

100,0%

100,0%

100,0%

TotalAvailable

R'000

% of Avail-able fundsspent by

municipality%

2

105

1 255

29

11

1

34

428

1 481

455

579

125

273

321

180

25

288

76

212

1

1

1 082

95

185

SPENT 2003/04

Division ofRevenue

Act

R'000

Not Applicable Not Applicable


c h a p t e r 1 5



ANNEXURE 1A (Continued)

S T A T E M E N T O F C O N D I T I O N A L G R A N T S P A I D T O M U N I C I P A L I T I E S

RollOvers

R'000

NAME OF MUNICIPALITY

GRANT ALLOCATION TRANSFERS

Adjust-ments

R'000

ActualTransfer

R'000

% ofAvailable

FundsTransferred

%

Amountreceived


Amountspent


Division ofRevenue

Act

R'000

Oosvaal District Council

Overberg District Council

Pretoria Metro Council

Rustenburg District Council

Southern District Council

Stormberg District Council

Uthukela Regional Council

Uthungule Regional Council

West Coast Regional Services Council

Various

Western Regional District Council

86

75

5 822

6

598

7

214

124

159

1

519

14 855

86

75

5 822

6

598

7

214

124

159

1

519

14 855

100,0%

100,0%

100,0%

100,0%

100,0%

100,0%

100,0%

100,0%

100,0%

100,0%

100,0%

100,0%

TotalAvailable

R'000

% of Avail-able fundsspent by

municipality%

86

75

5 822

6

598

7

214

124

159

1

519

14 855

SPENT 2003/04

Division ofRevenue

Act

R'000

Not Applicable Not Applicable

c h a p t e r 1 5




ANNEXURE 1B

S T A T E M E N T O F T R A N S F E R S T O D E P A R T M E N T A L A G E N C I E S A N D A C C O U N T S

RollOvers

R'000

AGENCY/ACCOUNT

TRANSFER ALLOCATION TRANSFER

Adjustments

R'000

ActualTransfer

R'000

% ofAvailable

FundsTransferred

%

FinalAppropriation

Act

R'000

Armaments Corporation of South Africa Ltd.

Defence, Intelligence, Diplomacy and TradeEducation and TrainingAuthority (DIDTETA)

Special Defence Account

-

-

-

-

284 098

6 100

7 045 000

7 335 198

284 098

5 885

7 045 000

7 334 983

100,0%

96,5%

100,0%

TotalAvailable

R'000

-

-

-

-

249 635

5 777

8 015 772

8 271 184

2003/04

AdjustedAppropriation

Act

R'000

284 098

6 100

7 045 000

7 335 198


c h a p t e r 1 5



ANNEXURE 1C

S T A T E M E N T O F T R A N S F E R S / S U B S I D I E S T O N O N - P R O F I T I N S T I T U T I O N S

St Johns Ambulance Brigade

SA First-Aid League

Medical Fund

Reserve Force Council

Province of the Northern Cape: Department ofHousing and LocalGovernment

-

-

-

-

-

-

40

35

275

2 461

-

2 811

39

-

245

2 461

-

2 745

97,5%

0,0%

89,1%

100,0%

0,0%

-

-

-

-

-

-

45

33

252

2 300

3 600

6 230

40

35

275

2 461

-

2 811

RollOvers

R'000

NON-PROFITORGANISATION

TRANSFER ALLOCATION EXPENDITURE

Adjustments

R'000

ActualTransfer

R'000

% ofAvailable

FundsTransferred

%

FinalAppropriation

Act

R'000

TotalAvailable

R'000

2003/04

AdjustedAppropriation

Act

R'000

c h a p t e r 1 5




ANNEXURE 1D

S T A T E M E N T O F G I F T S , D O N A T I O N S A N D S P O N S O R S H I P S R E C E I V E D F O R T H EY E A R E N D E D 3 1 M A R C H 2 0 0 5

NAME OF ORGANISATION

2004/05R'000

2003/04R'000

Received in kind

Canon

Singapore Air Force

Care Vision

Photo Focus

Orthomed

1 Military Hospital Flea Market

Lt Col J.P. Marx

Various institutions

Armscor, Denel, Sita, Ads & Sakhile

Stryker

Armscor

Dr T. Smith

Dr T. Smith

Sakhile

Wiets

Vredenburg Yamaha

ZMC

Phoenix Fire

Leibinger

Internal Medicine

8

7

3

3

2

2

1

1

-

-

-

-

-

-

-

-

-

-

-

-

27

-

-

-

-

-

-

-

6

30

20

10

5

6

5

3

3

2

2

2

2

96

NATURE OF GIFT, DONATION OR SPONSORSHIP

Photocopy machine

97 Octane petrol/fuel

Fax machine

DVD player

Fax machine

Digital camera

Colour television

Various gifts R1 000,00 and less

Prizes for golf day

Sony Printer

VIP lunch for Women's Day celebrations

Brother fax machine

Canon fax machine

Beverage function

Soccer Kit

Wine labels

Rainmacks

Shirts and caps

Surgical instruments

Printer/Scanner/Copier

Note: Totals do not form part of the totals as on the face of the Statement of Financial Performance.


c h a p t e r 1 5



ANNEXURE 1E

S T A T E M E N T O F G I F T S , D O N A T I O N S A N D S P O N S O R S H I P S M A D E A N D R E M I S S I O N S , R E F U N D S A N D P A Y M E N T S M A D E A S A N A C T O F G R A C E F O RT H E Y E A R E N D E D 3 1 M A R C H 2 0 0 5

2004/05R'000

Made in kind

Musical instruments - SA Music Education Trust

Game - Limpopo Provincial Government

B-Vehicles - Uganda

Ship Model HMNS Gelderland - Kruger Museum

Cheetah Aircraft Tail no 826 (without engine) - Gauteng Education Development Trust

Refueling trucks - SAPS Air Wing

Dogs (12 SAI Bn) - SAPS

Horses - SAPS

Subtotal

Remissions, refunds, and payments made as an act of grace

Ex gratia payments (2)

Subtotal

Total

2 342

1 060

45 380

50

2

163

11

52

49 060

92

92

49 152

NATURE OF GIFT, DONATION OR SPONSORSHIP

Totals of made in kind do not form part of the totals as on the face of the Statement of Financial Performance

c h a p t e r 1 5




ANNEXURE 2A

S T A T E M E N T O F I N V E S T M E N T S I N A N D A M O U N T S O W I N G B Y / T O C O N T R O L L E D / P U B L I C E N T I T I E S A S A T 3 1 M A R C H 2 0 0 5( O N L Y P U B L I C A N D P R I V A T E E N T I T I E S )

RelevantAct

NAME OFPUBLICENTITY

Profit/(Loss) forthe year R'000

StateEntity'sPFMA

Schedule*(state yearend if not31 March)

Number of sharesheld

Cost of investment

R'000

Are the lossesguaranteed

%Held03/04

Nature of business

%Held04/05

2004/05 2003/04 2004/05 2003/04 2004/05 2003/04 Yes/No

CastleManage-ment Act,1993(Act No.207 of1993)

Controlledentities

CastleControlBoard (undercontrol of theMinister ofDefence)

Subtotal

3A 0,0%To preserveand protect themilitary andcultural her-itage of theCastle; opti-mise thetourism poten-tial of theCastle; andmaximise theaccessibility tothe public ofthe whole orany part, asthe case maybe, of theCastle which isnot used bythe SANDF, orany part there-of.

0,0% - - - - 63 862

- - - - 63 862


c h a p t e r 1 5



ANNEXURE 2A (continued)


Arma-mentsDevelop-ment andProduc-tion Act,1968(Act No.57 of1968 asamend-ed)

Controlledentities

ArmamentsCorporationof SouthAfrica (man-aged andcontrolledby a Boardof Directorsappointedby theMinister ofDefence).Profit/(loss)for the yearis for theArmscorGroup.

Subtotal

Total

2 100,0%To acquiredefence pro-ducts, mainlyfor theSANDF, andco-manage,with theSANDF, thedevelopmentof technolo-gies for futureweapon sys-tems andproducts andalso to man-ages the dis-posal ofexcess, for-feited, redun-dant, or sur-plus defencematérial forthe SANDFand the sub-sidy compa-nies whichdirectly sup-port technolo-gy and acqui-sition strate-gies.

100,0% 75 000 000(Issued tothePresidentof theRepublicof SouthAfrica andin custodyat theDepart-ment ofDefence)

75 000 000(Issued tothePresidentof theRepublicof SouthAfrica andin custodyat theDepart-ment ofDefence)

75 000

75 000

75 000

75 000

75 000

75 000

No

RelevantAct

NAME OFPUBLICENTITY

Profit/(Loss) forthe year R'000

StateEntity'sPFMA

Schedule*(state yearend if not31 March)

Number of sharesheld

Cost of investment

R'000

Are the lossesguaranteed

%Held03/04

Nature of business

%Held04/05

2004/05 2003/04 2004/05 2003/04 2004/05 2003/04 Yes/No

(5 219)

(5 219)

(5 156)

9 827

9 827

10 689

c h a p t e r 1 5




ANNEXURE 2B


NAME OF PUBLIC ENTITY

Valuation ofInvestment

R'000

Amounts owing toEntitiesR'000

Amounts owing byEntitiesR'000

Nature of business

2004/05 2003/04 2004/05 2003/04 2004/05 2003/04

Castle Control Board (under con-trol of the Ministerof Defence)

Subtotal

-To preserve and protectthe military and culturalheritage of the Castle;optimise the tourismpotential of the Castle;and maximise the acces-sibility to the public of thewhole or any part, as thecase may be, of theCastle which is not usedby the SANDF or any partthereof.

- - - - - -

Cost of investment

R'000

2004/05 2003/04

-

- - - - - - - -

ArmamentsCorporation ofSouth Africa (man-aged and con-trolled by a Boardof Directorsappointed by theMinister ofDefence).

Subtotal

Total

75 000To acquire defence prod-ucts, mainly for theSANDF, and co-manage,with the SANDF, thedevelopment of technolo-gies for future weaponsystems and productsand also to manages thedisposal of excess, forfeit-ed, redundant, or surplusdefence material for theSANDF and the subsidycompanies which directlysupport technology andacquisition strategies.

75 000 - - 1 264 180 75 000 75 000

75 000

75 000

75 000

75 000

-

-

-

-

1 264

1 264

180

180

75 000

75 000

75 000

75 000


c h a p t e r 1 5



ANNEXURE 3

S T A T E M E N T O F F I N A N C I A L G U A R A N T E E S I S S U E D A S A T 3 1 M A R C H 2 0 0 5 - L O C A L

OriginalGuaranteed

capitalamount

R'000

Guarantor Institution Realisedlosses i.r.o.claims paid

out

R'000

Openingbalance asat 1 April

2004

R'000

Guaranteedinterest out-standing asat 31 March

2005

R'000

Closingbalance

31 March2005

R'000

Guaranteesissued

during theyear

R'000

Guarantee inrespect of

Guaranteesreleased

during theyear

R'000

1 075

1 075

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Stannic

ABSA

African Bank

BOE Bank (Boland)

Business Partners

Cape of Good Hope Bank

Cash Bank

Ciskei Peoples Development Bank

First National/First Rand Bank

Free State Development Corporation

Grahamstown Building Society

Greenstart Home Loans

Ithala Development Finance Corporation

Khayalethu Home Loans

Louhen Financial Service

Masikheni

Mpumalanga Building Society

National Building Society

Nedbank

Perm/Peoples Bank/Nedcor

Motor Vehicles

Housing

370

370

30 675

952

290

5

126

1 873

5

22 455

649

35

1 127

349

27

18

-

13

1 011

7 569

22 058

372

372

4 140

-

-

-

-

-

-

1 602

198

-

396

321

-

-

278

-

-

4 297

2 580

296

296

1 559

-

-

-

-

1 873

-

900

-

-

111

52

-

18

17

13

-

481

630

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

446

446

33 256

952

290

5

126

-

5

23 157

847

35

1 412

618

27

-

261

-

1 011

11 385

24 008

-

-

719

14

26

-

5

-

-

612

-

-

-

-

-

-

-

-

298

17

500

c h a p t e r 1 5




ANNEXURE 3 (continued)

S T A T E M E N T O F F I N A N C I A L G U A R A N T E E S I S S U E D A S A T 3 1 M A R C H 2 0 0 5 - L O C A L

OriginalGuaranteed

capitalamount

R'000

Guarantor Institution Realisedlosses i.r.o.claims paid

out

R'000

Openingbalance asat 1 April

2004

R'000

Guaranteedinterest out-standing asat 31 March

2005

R'000

Closingbalance

31 March2005

R'000

Guaranteesissued

during theyear

R'000

Guarantee inrespect of

Guaranteesreleased

during theyear

R'000

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

1 075

Northern Povince Development Corporation

Old Mutual Bank

Risima Housing Corporation

SA Development Corporation Ltd

SA Home Loans

South Fin

Standard Bank

Venda Building Society

Venda National Development Corporation

Citizen Bank

EP Building Society

FBC Future Bank

Department of Public Works

Fidelity Bank

Subtotal

Total

9

11 386

-

18

98

858

13 552

808

12

-

-

-

-

-

115 978

116 348

-

-

21

-

-

28

1 284

34

-

-

-

-

-

-

15 179

15 551

-

321

-

-

-

29

700

67

-

-

-

-

-

-

6 771

7 067

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

9

11 065

21

18

98

857

14 136

775

12

-

-

-

-

-

124 386

124 832

-

-

-

-

-

-

285

-

-

19

28

17

56

75

2 671

2 671


c h a p t e r 1 5



ANNEXURE 4

P H Y S I C A L A S S E T M O V E M E N T S C H E D U L E A S A T 3 1 M A R C H 2 0 0 5

ClosingBalance

R'000

OpeningBalance

R'000

Transfers In

R'000

TransfersOut

R'000

Additions

R'000

Disposals

R'000

BUILDINGS AND OTHER FIXED STRUCTURES

Dwellings

Total

-

-

79 638

79 638

-

-

-

-

-

-

-

-

P H Y S I C A L A S S E T M O V E M E N T S C H E D U L E A S A T 3 1 M A R C H 2 0 0 4

ClosingBalance

R'000

OpeningBalance

R'000

Transfers In

R'000

TransfersOut

R'000

Additions

R'000

Disposals

R'000

BUILDINGS AND OTHER FIXED STRUCTURES

Dwellings

Total

-

-

43 672

43 672

-

-

-

-

-

-

-

-

This is a movement schedule as at 1 March 2003

c h a p t e r 1 5




ANNEXURE 5

I N T E R - G O V E R N M E N T A L R E C E I V A B L E S - C U R R E N T

Government Entity Unconfirmed balance Confirmed balance

Department

The Presidency

Department of Foreign Affairs


National Treasury

Department of Public Enterprises

Department of Education

Department of Health

Department of Labour

Department of Social Development

Department of Correctional Services

Department of Safety and Security

Department of Agriculture

Department of Environmental Affairs and Tourism

Department of Minerals and Energy

Department of Transport

Department of Water Affairs and Forestry

Cape Provincial Administration

Gauteng Provincial Government

Government Printing Works

Limpopo Provincial Government

Subtotal

Other Government Entities

The Public Protector

National Intelligence Agency of South Africa

State Information Technology Agency

SA Secret Services

Subtotal

Total

-

-

-

3

-

6

-

-

-

25

-

4 827

-

-

-

-

-

13

-

-

4 874

-

-

-

-

-

4 874

-

976

-

-

-

-

9

-

-

-

-

-

127

-

-

-

-

-

-

-

1 112

-

-

-

-

-

1 112

-

72 188

1 822

3 924

-

-

34

-

1

56

42

21

-

-

423

-

-

-

-

-

78 511

11

-

1

-

12

78 523

1

76 385

6 290

13 517

3

10

149

397

5

144

1 037

-

1 806

6

452

39

9

49

177

92

100 568

8

14

1

1

24

100 592

31/03/2004

R'000

31/03/2004

R'000

31/03/2005

R'000

31/03/2005

R'000


c h a p t e r 1 5



ANNEXURE 6

I N T E R - D E P A R T M E N T A L P A Y A B L E S - C U R R E N T

Government Entity Unconfirmed balanceConfirmed balance

Department

Amounts not included in Statement of Financial Position

Current


National Treasury

Department of Statistics South Africa

Department of Education

Department of Health

Department of Labour

Department of Science and Technology

Department of Correctional Services

Department of Justice and Constitution

Department of Safety and Security

Department of Agriculture

Department of Environmental Affairs and Tourism

Department of Water Affairs and Forestry

Limpopo Provincial Government

Total

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

6

1

13

18

139

19

11

9

5

31

19

16

25

23

335

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

31/03/2004

R'000

31/03/2004

R'000

31/03/2005

R'000

31/03/2005

R'000

c h a p t e r 1 6




REPORT OF THE AUDITOR-GENERAL TOPARLIAMENT ON THE FINANCIAL STATEMENTSOF THE SPECIAL DEFENCE ACCOUNTFOR THE YEAR ENDED 31 MARCH 2005

1 . I N T R O D U C T I O N

The Special Defence Account(SDA) was instituted in terms ofsection 1 of the Defence SpecialAccount Act, 1974 (Act No. 6 of1974), to defray the expenditureand purchases incurred for spe-cial defence activities as ap-proved from time to time by theMinisters of Finance and De-fence. Income is derived mainlyfrom interest received and pro-ceeds from the sale of armament,in addition to the amount allocat-ed annually from the vote.

The largest part of the SDA's ex-penditure, namely R6 549 014 000(2003-04: R7 073 239 000), wasincurred by Armscor, while thebalance of R280 291 000 (2003-04:R201 204 000) was incurred andadministered by the Departmentof Defence (DOD). The ChiefExecutive Officer of Armscor andthe Secretary for Defence, respec-tively, are accountable.

The total expenditure of a sen-sitive nature, which totalledR55 463 000 for 2004-05 (2003-04:R49 148 000), was subjected to anaudit for the year under review.

2 . A U D I T A S S I G N M E N T

The financial statements as set outon pages 237 to 244, for the yearended 31 March 2005, have beenaudited in terms of section 188 ofthe Constitution of the Republicof South Africa, 1996 (Act No. 108of 1996), read with sections 4 and20 of the Public Audit Act, 2004(Act No. 25 of 2004) and section 5of the Defence Special AccountAct, 1974 (Act No. 6 of 1974).These financial statements, themaintenance of effective controlmeasures and compliance withrelevant laws and regulations arethe responsibility of the account-ing officer. My responsibility is toexpress an opinion on thesefinancial statements, based on theaudit.

3 . N A T U R E A N D S C O P E

3.1 Audit of financial statements

The audit was conducted inaccordance with Statements ofSouth African Auditing Stan-dards. Those standards requirethat I plan and perform the auditto obtain reasonable assurancethat the financial statements arefree of material misstatement.


c h a p t e r 1 6

An audit includes:examining, on a test basis, evidence supportingthe amounts and disclosures in the financialstatements,assessing the accounting principles used andsignificant estimates made by management, andevaluating the overall financial statement pre-sentation.

Furthermore, an audit includes an examination,on a test basis, of evidence supporting compliancein all material respects with the relevant laws andregulations which came to my attention and areapplicable to financial matters.

The audit was completed in accordance withAuditor-General Directive No. 1 of 2005.

I believe that the audit provides a reasonable basisfor my opinion.

3.2 Level of audit assurance

Owing to the sensitive nature of certain transac-tions and circumstances under which they areincurred and recorded as well as the circum-stances under which the assets and services areprocured and utilised, the level of assuranceunder these circumstances is lower than withordinary audits.

4 . A U D I T O P I N I O N

In my opinion, the financial statements fairlypresent, in all material respects, the financial posi-tion of the Special Defence Account at 31 March2005 and the results of its operations and cashflows for the year then ended, in accordance withgeneral accepted accounting practice in SouthAfrica and in the manner required by the PublicFinance Management Act, 1999 (Act No. 1 of 1999)(PFMA).

5 . E M P H A S I S O F M A T T E R

Without qualifying the audit opinion expressedabove, attention is drawn to the following mat-ters:

5.1. Disposal of SAS Outeniqua

The SAS Outeniqua was sold on credit at a sellingprice of R49.6 million and was handed over to thebuyer on 3 February 2005. However, according tothe contract, the division of Armscor: DefenceMatériel Disposal shall register a notarial bond oranother enforceable security over the vessel with-in 14 days after the effective date of the contract.No enforceable security or notarial bond has beenregistered over the SAS Outeniqua as at the date

of this report. On 6 July 2005, Armscor has indi-cated that the signed Deed of Mortgage had beenforwarded to the Attorney for registration.

There is a risk of financial loss to the DOD shouldsomething happen to the SAS Outeniqua duringthe period between delivery and the registrationdate of the notarial bond/other enforceable secu-rity. Furthermore, this is not in line with goodbusiness practice to register a notarial bond afterdelivery of the item has taken place. Further, noindependent management monitoring took placeto ensure the follow-up of the contractualrequirement in this case. Armscor has undertak-en to amend the policies and procedures regard-ing disposals to address the security to be pro-vided when assets are not sold on a cash basis.

5.2. No classification of the SDA as a schedule 4(PFMA)

It is still not clear what type of entity the SDA canbe regarded as in terms of the PFMA, as theDefence Special Account Act, 1974 (Act No. 6 of1974) is still not listed under schedule 4:Exclusions from Revenue Funds, of the PFMA.

5.3. Suspension of Armscor officials

During the year under review, it came to ourattention that Armscor's Chief Executive Officer(CEO) and two of its senior managers had beensuspended.

The acting CEO: Armscor and the Secretary forDefence were requested to advise the Auditor-General on the nature and extent of the allega-tions and the effect they could have on the auditof the SDA.

5.3.1 Investigation applicable to Armscor:

The Board of Directors of Armscor appointedGobodo Forensic and Investigative Accounting(Pty) Ltd to conduct an independent investiga-tion into the allegations according to predeter-mined terms of reference. The forensic report ofGobodo Forensic and Investigative Accounting(Pty) Ltd was made available to Armscor. At aspecial sitting of the Board of Directors ofArmscor on 9 June 2005, the Board of Directorsaccepted the findings and recommendations ofthe final report of Gobodo Forensic Accountingnamely that the suspension of the Armscor offi-cials should be lifted with immediate effect.

5.3.2 Investigation applicable to DOD:

With regard to the Secretary for Defence, an inde-pendent audit company, First Consulting (Pty)

c h a p t e r 1 6


Ltd, was appointed. The report of the forensicinvestigation by First Consulting (Pty) Ltd is stillawaited, and the nature and extent of the allega-tions could not be determined, nor the effect itmight have on the SDA. The matter will be fol-lowed up during next year's audit and reportedon if necessary.

5.4 Special Report of the Auditor-General onalleged irregularities at Armscor

The above report was tabled in Parliament on 29April 2005 under reference number RP 40/2005.The alleged irregularities refer to the procure-ment of goods and services by Armscor from aspecific armament supplier and to identify anddeliver proof of any irregular transactions per-taining to the delivery of goods and services.

The findings were that the Armscor internal con-trol system was not adequate to eliminate theissues identified in the allegations and that thefacts obtained by the Auditor-General's investi-gation team do not always support the findingsof the Project Review Board. It was recommend-ed that the findings of the above Special Report,together with the two internal reports be evaluat-ed by the Armscor Board and Management, andthat the approach followed in addressing theallegations as well as the findings of the Armscorinternal audit report and the Project ReviewBoard be re-assessed to ensure compliance withsection 51 of the Public Finance Management Act(Act No. 1 of 1999).

5.5 Matters in the public interest: DefenceIndustrial Participation (DIP) status on theStrategic Defence Packages (SDP)

Armscor is responsible for the management andmonitoring of the DIP programme on behalf ofthe DOD. When the SDP programme was signedon 3 December 1999, the DIP obligations amount-ed to approximately ZAR15 billion. These obliga-tions have to be discharged over a period ofseven years, except for the BAE Systems/SAABwhich are allowed a period of eleven years. Todate, and at the end of the fifth year, the fulfil-ment of obligations is 1% higher than plannedperformance, and represent approximately 51%of the obligations. For more detail refer to note 11to the financial statements.

5.6 Weaknesses in internal control

The following general weaknesses in controlswere identified during the year under review:

Insufficient execution of verification proceduresby the responsible member of the DOD forrepair cost below R30 000 when certifying thatservices were rendered for B-Vehicles. This mayresult in DOD paying for services not rendered.Lack of control regarding the safeguarding ofvehicles resulting in the cannibalising of thevehicles.No proper controls exist to ensure that amend-ments to supplier's master files are properlyauthorised on the "Kaysbank" system.

5.7 Compliance with the Defence Act, 2002 (Act No.42 of 2002) by the Inspector-General to monitorIntelligence Division

According to section 42 of the Defence Act, 2002(Act No. 42 of 2002), the Inspector-General of thedepartment must monitor the personnel struc-tures of, adherence to the law and procedures byand activities of the Intelligence Division.

The Inspector-General of the department has indi-cated that in accordance with the TreasuryRegulations they have an audit strategy that willcover the above objectives once in a three yearcycle.

At the time of compiling the report the third yearof the cycle has commenced.

5.8 Progress made with previously reported matters

The DOD has reacted favourably on matters pre-viously reported on and/or SCOPA resolutions.These matters have been finalised. For more detailin this regard, refer to annexure A.

6 . A P P R E C I A T I O N

The assistance rendered by the staff of DOD andArmscor during the audit is sincerely appreciated.

SA Fakie Auditor-General

Pretoria

28 July 2005


c h a p t e r 1 7

ANNEXURE A

P R O G R E S S M A D E W I T H P R E V I O U S L Y R E P O R T E D M A T T E R S

Reference to previous auditreport and SCOPA resolutions

Compliance Programme

Closing down of a sensitive project

Strategic defence procurement packages(recommendationmade by the JointInvestigation Team (JIT))

Commission paid during the sale of Puma heli-copters

Purchase of Pilatus training aircraft

The constitution for the Compliance Programme,namely The Arms Control and Non-ProliferationFund Committee, has been approved by theNational Conventional Arms Control Committee(NCACC). The balance of the ComplianceProgramme amounting to R14 561 000 was invest-ed with the Corporation for Public Deposits duringthe year under review. For more detail see notes 5and 6 to the financial statements.

The closing down process of the entity involved in the project is at the finalisation phase as the entityproposed a deregistration date in the near future.

The department has successfully implemented the recommendations made by the JIT. The final inputsand actions on the new policies are satisfactory andwere approved by relevant delegates. The amend-ed policies and procedures will be evaluated duringfuture audits.

The Directorate of Public Prosecution has decided not to prosecute. The matter can be regarded asfinalised.

The Investigating Director of the Directorate Special Operations, on the advice of the investigation team,declined to prosecute in this matter and the file hasbeen closed.

Audit report:Paragraph 5, Table 16.1, 2nd row, page 210

SCOPA resolution:REF: DOD.020903.RES1, paragraph 10(c)

Audit report: Paragraph 5, Table 16.1, 3rd row, page 210

SCOPA resolution:REF: DOD.020903.RES1, paragraph 10(a)

Audit report:Paragraph 5, Table 16.1, 4th row, page 210

Audit report:Paragraph 5, Table 16.1,5th row, page 211

SCOPA resolution:REF: DOD.020903.RES1, paragraph 10(b)

Audit report:Paragraph 5, Table 16.1, 6th row, page 211

SCOPA resolution: REF: DOD.020903.RES1, paragraph 10(b)

Subject Findings on progress

c h a p t e r 1 7


BALANCE SHEETas at 31 March 2005

SPECIAL DEFENCE ACCOUNT

ASSETS

Current assets

Advances

Trade and other receivables

Cash and cash equivalents

Investments

Total assets

EQUITY AND LIABILITIES

Equity

Reserves

Current liabilities

Creditors

Total equity and liabilities

2004/05R'000

2 257 588

10 569

100 179

2 132 170

14 670

2 257 588

1 171 673

1 085 915

2 257 588

Note

2

3

4

5

6

2003/04R'000

1 964 877

13 115

449 805

1 501 855

102

1 964 877

752 129

1 212 748

1 964 877


c h a p t e r 1 7

INCOME STATEMENTfor the year ended 31 March 2005


Revenue

Transfer from Department of Defence

Other revenue

Interest received

Less: Expenditure

Net profit for the period

2004/05R'000

7 248 849

7 045 000

203 841

8

6 829 305

419 544

Note

7

8

2003/04R'000

8 254 604

8 015 772

238 823

9

7 274 443

980 161

c h a p t e r 1 7


STATEMENT OF CHANGES IN EQUITYfor the year ended 31 March 2005


Balance at the beginning of year

Error

Restated balance

Net profit for the year

Balance at the end of year

2004/05R'000

Accumulatedincome

752 129 -

752 129 419 544

1 171 673

Note 2003/04R'000

Accumulated

income

(230 438)

2 406

(228 032)

980 161

752 129


c h a p t e r 1 7

CASH FLOW STATEMENTfor the year ended 31 March 2005


Cash flow from operating activities

Net profit

Adjustment for investment income

Operating profit before working capital changes

Working capital changes

Decrease in trade and other receivables

Decrease in advances

(Decrease) in creditors

Error

Cash generated from operations

Interest received

Net cash flow from operating activities

Cash flow from investing activities

Investment

Net cash outflow from investing activities

Net increase in cash and cash equivalentsCash and cash equivalents at beginning of the yearCash and cash equivalents at end of the year

2004/05R'000

419 544 (8)

419 536 225 338 349 626

2 545 (126 833)

-

644 874 8

644 882

(14 567)(14 567)

630 315 1 501 855 2 132 170

Note

4

2003/04R'000

980 161

(9)

980 152

(489 898)

146 497

4 955

(643 757)

2 407

490 254

9

490 263

(9)

(9)

490 254

1 011 600

1 501 855

c h a p t e r 1 7


NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 March 2005


1 . A c c o u n t i n g p o l i c y

The Ministers of Defence and Finance approve an annual budget in accordance with the provisions of theDefence Special Account Act, 1974 (Act No. 6 of 1974), whereafter the budgeted amount is dealt with as a trans-fer payment from the Department of Defence. The actual expenditure is reflected in the financial statements.

The financial statements are prepared on the historical cost basis. The following are the principal accountingpolicies used by the Special Defence Account, which are consistent with those of the previous year.

1.1 Underlying assumption

The financial statements are prepared on the modified accrual basis, which is in accordance with generallyaccepted accounting practice (small gaap).

1.2 Fixed assets

For the purposes of the Special Defence Account, assets purchased are written off when they are paid for. Thecost is brought to account as expenditure. Advance payments made in terms of contracts are expensed at dateof payment. The assets are included in the asset register of the Department of Defence at the date of deliveryof the asset.

1.3 Revenue

Revenue from the sale of equipment is recognised after the Department of Defence identify it for sale and allthe significant risks and rewards of ownership are transferred to the buyer and it is probable that the economicbenefits, which could be measured reliably, will flow to the Special Defence Account.

1.4 Foreign exchange

Transactions in foreign currency are translated at the rates of exchange ruling at transaction dates. Monetaryassets and liabilities are translated at the rates of exchange ruling at balance sheet date.

National Defence Force projectsStrategic Defence Procurement Programme (SDPP)

subsistence & travel advances

13 115

3 540 9 575

2003/04R'000

10 569

4 262 6 307

2004/05R'000

2 . A d v a n c e s

Trade debtorsJoint operationsIntelligence divisionSpecial forcesClearing account

449 805

422 384 14 941

1 424 10 680

376

100 179

62 304 11 899 15 271

8 567 2 138

3 . T r a d e a n d o t h e r r e c e i v a b l e s


c h a p t e r 1 7



Paymaster General Account 1 501 855

2003/04R'000

2 132 170

2004/05R'000

Corporation for Public DepositsCorporation for Public Deposits (Compliance Programme)

102

102-

14,670

110 14 560

4 . C a s h a n d c a s h e q u i v a l e n t s

5 . I n v e s t m e n t s

6 . C r e d i t o r s

Compliance programme as per agreement between the USA andSA Governments

Opening balance at beginning of yearRecovery of previous year expenditureInterest earned on investment

Contract finesRevenue payable to the National Revenue FundTrade creditorsProvision for SDPPClearing account

1 212 748

14 052

14 041 11

-4 241

121 392 68 819

1 004 244 -

1 085 915

14 561

14 052 146363

4 666 121 776

48 819 895 888

205

6.1 Included in the provision of R895 887 924 for Strategic Defence Procurement Programme are EUR 47 339 341,GBP 3 171 298 066, USD 1 250 130 787 and SEK 456 427 634 equaling R882 233 440. This amount relates toinvoices and goods received prior to 31 March 2005 in respect of Strategic Defence Procurement Programme.The amount is contractually payable in the 2005/2006 financial year and will be funded from the 2005/2006Department of Defence transfer payment. No forward cover was utilised.

7 . O t h e r r e v e n u e

Other revenueSales of strategic equipment for the DepartmentMarketing supportSensitive projectsForeign exchange profit on SDPPSundry

Less: Payable to National Revenue Fund

238 823

360 215 197 611

60619 867

142 063 68

(121 392)

203 841

325 617 114 382

117 8 691

202 336 91

(121 776)

c h a p t e r 1 7




2003/04R'000

2004/05R'000

Major projectsOther projects

Landward DefenceAir DefenceMaritime DefenceCommand and ControlJoint SupportTechnology

Operating projectsSensitive projectsForeign exchange rate adjustmentsForeign exchange loss on foreign banksProvision for write down of foreign banks

7 274 443

6 215 332 263 579

53215 086

1 488 --

246 473 652 969

48 326 89 192

6584 387

6 829 305

5 808 193 405 554 106 185

99 029 54 747

1 620 143 973

-546 627

55 463 10 781

-2 687

8 . E x p e n d i t u r e

8.1 General expenditure such as auditor's remuneration is included in the General Defence Account.

8.2 The total fruitless and wasteful expenditure amounts to R132 267 (2003/04: R61 692).

8.3 Included in major projects are legal fees of R590 000 relating to the contingent liability in note 10.

8.4 Included in expenditure for sensitive projects is a foreign exchange loss of R475 943.

9 . E s t i m a t e d f u t u r e e x p e n d i t u r e a p p r o v e d b y A r m s c o r

Strategic Defence Procurement Programme capital commitment

CommitmentsCommitments in respect of contracts entered intoApproved, but contracts not yet entered into

17 046 334

13 760 512

3 285 822 2 811 411

474 411

14 655 357

9 487 648

5 167 709 3 836 007 1 331 702

9.1 The amount relating to Strategic Defence Procurement Programme capital commitment represents the capitalamount at prevailing exchange rates at year end, but excludes escalation and other additional costs (eg. Financecosts). Included in the amount of R9 487 648 000 (2003/04: R13 760 512) is a foreign component of EUR 178843 483, USD 165 933 455, GBP 274 416 591 and SEK 3 522 269 271 (2003/04: EUR 311 282 511, USD 439 020 733,GBP 340 192 876 and SEK 4 197 963 466). No forward cover was utilised.

9.2 It is intended to finance expenditure from future Department of Defence transfer payment funds and fromworking capital generated within the Special Defence Account.


c h a p t e r 1 7

1 0 . C o n t i n g e n t l i a b i l i t y

Claims against the State

A further case of litigation is in the process against the Special Defence Account relating to an administrativedispute on the tender process, the claimant seeking damages for an estimated amount of R149 000 000 subjectto further judicial process.

1 1 . D e f e n c e I n d u s t r i a l P a r t i c i p a t i o n ( D I P )

11.1 DIP credits awarded and planned for current year



2003/04R'000

2004/05R'000

-13 738

DIP credits awardedDIP credits awarded - SDPPDIP credits awarded - Non-SDPP

DIP credits plannedDIP credits planned - SDPPDIP credits planned - Non-SDPP

3 026

1 576 1 542

34

1 450 1 412

38

11.2 Previous years DIP credits awarded and planned until 31 March 2005

Cumulative DIP credits awardedCumulative DIP credits awarded - SDPPCumulative DIP credits awarded - Non-SDPP

Cumulative DIP credits plannedCumulative DIP credits planned - SDPPCumulative DIP credits planned - Non-SDPP

24 881

12 492 7 687 4 805

12 389 7 580 4 809

11.3 Outstanding DIP obligations

Outstanding DIP obligations - SDPPOutstanding DIP obligations - Non-SDPP

8 200

7 421 779

11.4 The DIP programme applies to all foreign defence purchases with an imported content exceeding 2 millionUSD and attracts a DIP obligation of at least 50% of the imported content. Armscor is responsible for the man-agement and monitoring of the DIP programme on behalf of the Department of Defence.

1 2 . P o s t B a l a n c e S h e e t E v e n t

Revenue Payable to National Revenue Fund

National Treasury has approved that the revenue payable to the National Revenue Fund in the 2004/2005financial year, as disclosed in note 7, will be refunded in the 2005/2006 financial year.

a b b r e v i a t i o n s




List of Abbreviations andAcronyms

ACTC

AFB

AIDS

AMHU

ARMSCOR

C4, I2, RS

CIOR

CIOMR

DIDTETA

Divisions

DOD

DRC

DSC

EEZ

ETD

FY

GCIS

HIV

IRPS

ISDSC

MOU

MTEF

NICOC

Army Combat Training Centre

Air Force Base

Acquired Immune Deficiency Syndrome

Area Military Health Unit

Armamaments Corporation of South Africa Ltd

Implies command, control, computers, communication, information, intelligence, reconnaissance and surveillance

Confederation Internallie des Officiers des Reserves

Confederation Internallie des Officiers Medicaux des Reserves

Diplomacy, Intelligence, Defence and Trade Education and Training Authority

Joint Operations, Defence Intelligence, Corporate Staff, Joint Support


Democratic Republic of the Congo

Defence Staff Council

Economic Exclusion Zone

Education, Training and Development

Financial Year

Government Communication Information System

Human Immunity Virus

International Relations Peace and Security

Inter-State Defence and Security Committee

Memorandum of Understanding

Medium-term Expenditure Framework

National Intelligence Co-ordinating Committee



OSIS

P5 Countries

Parys Resolutions

PSAP

PSO

Reg F

Res F

RSA

SAAF

SADC

SAMHS

SAN

SANDF

SAPS

SCOPA

SDP

SECDEF

Services

SITA

STFEP

PROJECTS

BRUTUS

KLARINET

KOILER

LEGEND

MACAW

MAPANTSULA

MAULSTIC

MILITARY VETERANS

NATION

PHOENIX

PORCUPINE

SCREWDRIVER

SITRON

STANCHION

Operational Support Information System

Permanent members of United Nations Security Council: France, People's Republic of China, Russian Federation, United Kingdom and United Statesof America

Strategic decisions taken in pursuit of the affordability and sustainability of the DOD, by the DOD's top management in Parys, in the Free State inMarch 2004

Public Service Act Personnel

Peace Support Operations

Regular Force

Reserve Force

Republic of South Africa

South African Air Force

Southern African Development Community

South African Military Health Service

South African Navy

South African National Defence Force

South African Police Service

Standing Committee on Public Accounts

Strategic Defence Package

Secretary of Defence

SA Army; SA Air Force; SA Navy; SA Military Health Service

State Information Technology Agency

Short Term Force Employment Plan

Half-life upgrade SAS DRAKENSBERG

Project to build a new Headquarters for Fleet Command

Development and integration of infrared censors on existing aerial platforms

Development of an operational urgent command and control system

Air traffic control radar upgrade

Acquisition of Multi-Purpose Hull vessel

Acquisition of 4 Super Lynx 300 Maritime Helicopters

Training of Military veterans

Government Communication Information System's national tracker survey, measuring opinions on a national basis

Renewal and transformation of the conventional component of the Reserve Force

Introduction of Small Calibre Weapons in the SA Navy

Rationalisation of SA Navy Training Units

Acquisition of Patrol Corvettes

Acquisition of a fully integrated underwater signature management facility in the SA Navy



VISION 2020

VISTULA

WILLS

POMPADOUR

SIYANDIZA

YOUNG FALCONS

MASIBAMBISANE

PHIDISA

SANDF OPERATIONS

AMPHIBIAN

CORDITE

DÉCOR

ESPRESSO

FIBRE

FLOWER

HUMAN

INTEXO

MISTRAL

MONTEGO

Formulation of the SA Army's long-term strategy

Development of new generation supply support vehicle platforms for the SANDF

Replacement of the submarine capability

Comprehensive database for labour market intelligence inclusive of job opportunities and sectoral growth areas.

Aviation awareness

Youth Development programme

The corporate identity of the DOD's HIV and AIDS awareness programme and was launched in October 2001

A clinical research project that aims to establish the efficacy of HIV treat-ment regimes in voluntary registered SANDF members and their familiesand to develop relevant plans for effective management and prevention ofHIV infection

Deployment of SANDF in support of the Third Party Verification Mechan-ism, established to oversee the implementation of the Pretoria Agreement

Deployment of SANDF contingent, staff officers and military observers in support of the African Union Mission in the Sudan (AMIS)

Safeguarding the election process in support of the SAPS

External deployment of military observers and staff officers to the United Nations Mission in Eritrea (UNMEE) and the African Union Mission inEthiopia (OLMEE)

Administrative control and support to the SANDF contingent deployed in support of the United Nations Mission in Burundi (ONUB), as well as opera-tional command of the VIP Protection Unit until completion of VIP protectiontask

Force commander, staff officers and military observers deployed as part of the ONUB Headquarters

VIP protection for returned political leaders in accordance with bilateral agreement

Forces deployed in support of the SA Police Service and other role players with regards to safety and security for the USA Carrier Strike Group visit theDurban and Cape Town

Prevention of the spreading of the Foot and Mouth disease outbreak in the Limpopo Province in support of the Department of Health

Deployment in support of the Department of Health to curb the Avian Flu in the Eastern Cape.

Border Line Control

Deployment of SANDF specialist teams (Aircraft Handling Team, Military Police, Air Medical Evacuation Team, Aircraft Rescue Fire Fighting Team)in support of the United Nations Mission in the Democratic Republic of theCongo (MONUC)

Deployment of SANDF Task Force to Kindu, in support of the United Nations Mission in the Democratic Republic of the Congo MONUC III)

Deployment of staff officers, military liaison officer and military observers as part of the United Nations Mission for the Democratic Republic of theCongo (MONUC)

SANDF staff officers detached to the United Nations Mission in Liberia (UNMIL) Headquarters



NEPTUNE

STIPPER

TRITON III

TEUTONIC

UKUNSINDISA

UVUYO

VUSELELA

AMIB

AMIS

MONUC

ONUB

OLMEE

UNMEE

UNMIL

Combating of illegal fishing and smuggling of marine resources (Part of Operation INTEXO)

Rural Safeguarding in support of the SA Police Service

Assistance to the Electoral process in the Union of the Comoros

The RSA detachment assisted with integration and democracy training of the Congolese Army for integration purposes ("bridging training")

Disaster relief to Madagascar in support of the Department of Foreign Affairs

Safeguarding of the inauguration and celebration process in support of the SAPS

Subprogram of 'Working for Water' focusing on the eradication of alien invasive plants on DOD properties using unemployed military veterans

PEACE-SUPPORT MISSIONS OF INTERNATIONAL ORGANISATIONS

African Union Mission in Burundi

African Union Mission in the Sudan

United Nations Mission in the Democratic Republic of the Congo

United Nations Mission in Burundi

United Nations Mission in Ethiopia

United Nations Mission in Eritrea

United Nations Mission in Liberia

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