dod annual report for fy2006/07 1 presentation of the dod annual report for fy2006/07 to the...

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DOD ANNUAL REPORT FOR FY2006/07

PRESENTATION OF THE DOD

ANNUAL REPORT FOR FY2006/07

TO THE

PORTFOLIO COMMITTEE ON DEFENCE

16 OCTOBER 2007

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AIM

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To present the non-financial and audited financial performance report of the Department of Defence for the financial year ended on 31 March

2007 to the Portfolio Committee on Defence.

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SCOPE AND APPROACH

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• APPROACH

• CONTENTS OF THE REPORT

• STRATEGIC OVERVIEW

• ANNUAL PERFORMANCE AGAINST PLAN FY2006/07

• DEFENCE RESOURCES

• DEFENCE OUTPUTS

• FINANCIAL PERFORMANCE FY2006/07

• CONCLUDING REMARKS

• QUESTIONS AND ANSWERS

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APPROACH

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• THE ANNUAL REPORT IS A VERY DETAILED HENCE LENGTHY REPORT ON DEFENCE PERFORMANCE DURING FY2006/07 AND CANNOT BE DISCUSSED IN DETAIL IN THE TIME AVAILABLE.

• THIS PRESENTATION WILL BE AT THE STRATEGIC LEVEL AND WILL CONSIST OF THREE PARTS:

– A REPORT ON THE STRATEGIC OUTPUTS, CHALLENGES AND INITIAVES TO IMPROVE PERFORMANCE DURING FY2006/07.

– FEEDBACK ON PCD QUERIES ON DOD REPORTS.

– QUESTION AND ANSWER SESSION.

• CONCLUDING REMARKS.

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CONTENTS OF DEPARTMENT OF DEFENCE

ANNUAL REPORT

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Chapter 1: Strategic OverviewChapter 2: Defence AdministrationChapter 3: Force Employment Chapter 4: Landward DefenceChapter 5: Air DefenceChapter 6: Maritime DefenceChapter 7: Military Health SupportChapter 8: Defence IntelligenceChapter 9: Joint SupportChapter 10: Special Defence AccountChapter 11: Organisational Structure and Human Resources

ManagementAppendix A: Status of the SANDF Reserves

B: Defence Diplomacy C: Report on Foreign Aid Assistance

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STRATEGIC OVERVIEW

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• The DOD derives its constitutional mandate from section 200(2) of the Constitution of the Republic of South Africa, 1996 (Act No 108 of 1996).

• Giving substance to this constitutional mandate is the Defence Act, 2002 (Act No 42 of 2002), the White Paper on Defence, 1996, Defence Review, 1998 and other national legislation that guide the execution of the defence strategy of the DOD.

MANDATE

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Effective defence for a democratic South Africa.

DEFENCE OUTCOME

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• The DOD ensures alignment of its priorities with Government priorities through its planning framework, as well as through its operations.

• The DOD planning framework is located within the Government's planning framework. The outcomes of the Lekgotla, articulated through the State of the Nation Address and the Budget Vote, are the basis for the the DOD’s short-and medium term activities guided by the Minister's priorities and guidelines.

ALIGNMENT WITH CABINET AND CLUSTER PRIORITIES

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• Defending and protecting the sovereignty and territorial integrity of the Republic

• Supporting the people by maintaining cost-effective defence capabilities in order to be prepared and equipped to participate in operations as ordered and funded by Government.

• Contributing to global security through promotion of regional and continental security and Government diplomatic initiatives through regional and global defence cooperation and participation in peace missions.

• Ensuring good governance of the DOD through effective, efficient and economical management, administration and accounting within the regulatory framework and Government policy.

MINISTER OF DEFENCE’S OBJECTIVES

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• Ensuring continuous improvement of defence capabilities by means of quality command and control, developing the people and improving the equipment and facilities of the DOD.

• Implementing the 'One Force' concept by adequately resourcing and utilising both the regular and the reserve components, as well as rejuvenating and rightsizing the human resource composition of the DOD.

MINISTER OF DEFENCE’S OBJECTIVES

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DEFENCE’S FOCUS IN FY2006/07

• Preparing defence capabilities;

• Employing defence capabilities to meet operations and commitments ordered by Government; and

• The restructuring of the DOD.

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• The successful execution of ordered commitments

– 4 747 members were deployed in peace support and humanitarian relief operations in Burundi, Comoros, Côte d'Ivoire, the DRC, Ethiopia, Eritrea, Lesotho, Madagascar, Mozambique, and Sudan.

– Over 1 300 members were deployed daily internally in support of the SAPS (borderline control and rural safeguarding).

– Support was provided to other departments to combat, inter alia poaching and swine fever.

• The responsibility for borderline control of the international borders with Namibia, Botswana and Lesotho was handed over to the SAPS.

DEFENCE’S KEY ACHIEVEMENTS IN FY2006/07

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• Defence bilateral structural meetings were conducted with 19 countries to enhance bilateral relations and defence-to-defence cooperation.

• The DOD participated in 15 SADC, ISDSC and other multinational interaction activities.

• African Aerospace and Defence Exhibition, AAD 2006, was presented in Cape Town from 19 to 24 September 2006.

• In excess of 2 100 learning programmes were presented by the DOD attended by more than 51 800 learners – confirming that the DOD is a learning organisation. An additional 192 DOD members attended foreign learning opportunities.

DEFENCE’S KEY ACHIEVEMENTS IN FY2006/07

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• The impact of legacy systems on efficiency resulting in qualified financial statements, eg the FMS is 23 years old, some of the logistics systems are older than 30 years

• The delayed implementation of the National Treasury’s initiatives of the Financial Management Improvement Programme (FMIP) and the Integrated Financial Management Information System (IFMS).

• Balancing the allocated resources with government commitments (including matching the diplomatic “footprint”).

• Inadequate funding for infrastructure maintenance.

DEFENCE’S KEY CHALLENGES IN FY2006/07

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• Ensuring strategic alignment through the updating of the White Paper on Defence, Defence Review (Defence Update 2007).

• The restructuring of the top structures of the Department to improve direction and management, including the restructuring of the command and management bodies.

• Further development of the implementation of the“Balanced Scorecard” as a performance management tool.

• Measures taken to ensure internal, external and allocative efficiency, eg Projects LOQUACIOUS, LEGADIMA, GEJIMA and the DEIS Masterplan.

KEY INITIATIVES TO IMPROVE PERFORMANCE IN FY2006/07

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• Increase in the numbers of MSDS and other members (a total of 5 053).

• Increase in the capacity of the conventional Reserve Force.

• Implementation of the Works Regiment concept by the SA Army supported by the Service Corps.

KEY INITIATIVES TO IMPROVE PERFORMANCE IN FY2006/07

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ANNUAL PERFORMANCE AGAINST PLAN FY2006/07

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DEFENCE STRATEGIC DIRECTION

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• HIGHLIGHTS

– Issued ministerial priorities for the FY2006/07.

– The Minister provided strategic direction to the finalisation of the White Paper on Defence, Defence Review (Defence Update 2007).

– Service and Divisional Chiefs were compelled to continuallly review their State of Readiness in line with the MOD theme” Are we ready”.

– Identified gaps in terms of State of Readiness had to be addressed as per MOD instruction.

– Focused attention was directed to the ongoing transformation of the Military Justice System as well as restructuring of the Department for greater effective and efficiency.

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• HIGHLIGHTS …

• The MOD gave direction to the transformation of the Defence Industry in conjunction with the Minister of Public Enterpises.

• Contributed to global security by giving political direction to and participating in the peace processes in the DRC, Burundi and Ivory Coast and provision of Military Observers in Sudan, Ethiopia and Eritrea.

• Contributed to deepening of democacy in Africa through series of initiatives notably supporting election in Comores, Madagascar and Lesotho.

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DEPARTMENTAL DIRECTION

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• HIGHLIGHTS

– Guidelines of the Minister of Defence were analysed and translated into clear DOD deliverables.

– Ensured alignment of DOD priorities, plans and processes with broad Government priorities, trajectory, strategies, plans and programmes.

– Interrogated and optimised the funding priorities which were presented to National Treasury for consideration during the MTEC hearings.

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• HIGHLIGHTS …

– Extensive progress has been made in realising the Minister’s directive regarding the transformation of the Department to provide for optimal functionality in terms of internal, external and allocative efficiency.

– Implemented perfomance improvement mechanisms in order to optimise compliance with Government prescripts and accountability. These included:

• DOD activities refocused in terms of DOD strategic objectives and performance against plan.

• Ensuring strategic alignment through the updating of the White Paper on Defence, Defence Review (Defence Update 2007).

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• HIGHLIGHTS …

• Modernisation of the Landward programme.

• The restructuring of the top structures of the Department to improve direction and management, including the restructuring of the command and management bodies

• Further development of the implementation of the“Balanced Scorecard” as a performance management tool.

• Measures taken to ensure internal, external and allocative efficiency, eg Projects LOQUACIOUS, LEGADIMA and the DEIS Masterplan.

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• CHALLENGES

– Balancing the allocated resources with government commitments.

– Impact of the delayed implementation of the IFMS on the integration of the Departmental systems.

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DEFENCE POLICY

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• HIGHLIGHTS

– Ongoing Policy advice was given to the Department at different management forums.

– Bilateral and multilateral defence agreements with other states were drafted, negotiated and concluded . Ten new bilateral agreements were concluded, one was renewed, one Note of Exchange and one letter of Assist were concluded.

– Spearheaded the DOD structure management, refocusing of Command bodies, as well as the systemic perfomance management through the Balanced Score Card.

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• HIGHLIGHTS …

– Coordinated the development, consultation and finalisation of the update of the White Paper on Defence (1998) and Defence Review (1996) which was approved by the Minister on 11 December 2006. The Update was also tabled at the DGs National Security Council and is scheduled to serve before Cabinet soon.

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• CHALLENGES

– Increased demands on the DOD from other departments, DFA in particular.

– Organisational readiness to ensure successful implementation of the Balanced Score Card. A targeted orientation programme is planned for the current financial year, which is focused on senior management as well as services and divisional planners.

– Insufficient staff levels.

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DEFENCE RESOURCES: HUMAN RESOURCES

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• HIGHLIGHTS

– The establishment of an integrated Human Resources Division.

– Ongoing improvement in racial and gender representivity.

– Ongoing rejuvenation of the rank/age profile of soldiers through the MSDS system.

– Ongoing capacity building of the Conventional Reserves.

– Review of HR Strategy 2010 commenced during the period.

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• CHALLENGES

– The Mobility Exit Mechanism has not been fully successful at lower levels.

– Retention of operational and technical skills.

– Containment of HR expenditure as a percentage of Total DOD expenditure whilst trying to improve conditions of service.

– Improvement of the health status of members.

– Accreditation of DOD learning opportunities and registration of DOD learning providers.

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Macro Personnel Flow ito Equity (Race)

Number of Employees - 1 April 2006

64.82%12.74%

1.25%

21.19%

AfricanColouredAsianWhite

Total = 77858

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Macro Personnel Flow ito Equity (Race) …

Total = 77518

Number of Employees - 31 March 2007

12.72%

1.19%

19.31%

66.78%

AfricanColouredAsianWhite

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Macro Personnel Flow ito Equity (Race)…

Evolution within FY

1 304-57

-51

-1 536

African Coloured Asian White

NOTE. The number of Africans appointed during the financial year increased by 1.96%.

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Macro Personnel Flow ito Equity (Gender)

Number of Employees - 1 April 2006

77.16%

22.84%

MaleFemale

Total = 77 858

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Macro Personnel Flow ito Equity (Gender) …

Number of Employees - 31 March 2007

23.62%

76.38%

MaleFemale

Total = 77 518

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Macro Personnel Flow ito Equity (Gender) …Evolution within FY

-871 531

Male Female

NOTE. During the financial year there was an outflow of male employees (-1.11%) and an inflow of female employees (0.68%)

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DEFENCE RESOURCES: MATERIEL RESOURCES

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• HIGHLIGHTS

– Deliveries of aircraft and vessels (SDP).

– Disposal of Mirage F1 systems to Gabon.

– Transfer of the Naval Dockyard to Armscor.

– The development of a South African Defence-Related industry (SADRI) Strategy in consultation with the Departments of Public Enterprises and Trade and Industries as well as AMD has reached an advanced stage.

– The Departmental Technology Strategy has been fundamentally revised, including the impact of establishing the Defence Evaluation and Research Institute (DERI) as directed by the Minister of Defence, and is being reviewed in final draft.

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• HIGHLIGHTS …

– The Defence Materiel Division participated actively in the strategic planning process aimed at reviewing the SCAMP to align it with the materiel requirements captured in the Defence Update and to accommodate supporting technology investments as well as optimal contracting of SADRI.

– The Defence Materiel Division was directly involved in the restructuring of DENEL, ensuring optimal contract award to DENEL subsidiaries and top management intervention in optimising performance on existing contracted obligations.

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• HIGHLIGHTS …

– Delivery of a clean audit on the Special Defence Account without any qualifications or emphasis of matter.

– Roll-out of the e-procure electronic procurement system.

– Refinement of alternative service delivery processes to enhance the efficiency of outsourced contracting support to the DOD

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• CHALLENGES

– Inadequate funding for maintenance of all weapons systems.

– Late delivery of weapons systems (Hawk, LUH, GBADS).

– Totally inadequate funding for infrastructure maintenance.

– Clearing outstanding audit queries and qualifications pertaining to deviations from procurement practices and asset management.

– Creation of structures and required procedures/practices to accept the new duties and powers under the assigned GRC functions of the newly created Def Mat Div.

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• CHALLENGES …

– Staffing of key posts within the division and retention of competence to ensure matériel management service excellence.

– Completion of the Armscor restructuring process.

– Completion of the DERI implementation process and subsequent activation of approved structures and mandate.

– Completion of the required ammunition disposal function.

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DEFENCE RESOURCES: INFORMATION

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• HIGHLIGHTS

– Well-defined and executable ICS Policy Development and Maintenance Plan.

– Departmental Enterprise Information Systems (DEIS) formalised and approved

– Review plan for the DEIS regulatory framework completed

• CHALLENGES

– The alignment of the DEIS Master plan with the Integrated Financial Management System (IFMS) development and the operationalisation thereof.

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DEFENCE RESOURCES: FINANCIAL RESOURCES

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• HIGHLIGHTS

– 99,64% of Appropriation spent.

– Commencement of the restructuring of the FMD to service CSANDF.

• CHALLENGES

– Retention and acquisition of skills.

– Delayed roll-out of IFMS (2010) resulting in non-compliance.

– Physical security at cash points (currently being addressed).

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DEFENCE OUTPUTS:FORCE EMPLOYMENT

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• HIGHLIGHTS

– Successful participation in 14 external and two internal operations (over 6 000 members deployed).

– Successful participation in five Joint and nine multinational exercises.

• CHALLENGES

– Capabilities required for Peace Support Operations are constrained by the mismatch between allocated resources and government ordered commitments.

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External Force Employment Achievements 2006/07Operation Members

DeployedAchievement

Op MISTRAL, DRC

1 214 Continuous replanning to adjust to the changing situation of the mission. The repatriation of the Ferry and Well Drill units. One successful rotation was completed in October/November 2006

Op FIBRE. Burundi 1 319 Op terminated in Dec 06. Change-over from UN to AU mission. Op CORDITE

Op PRISTINE. Cote d’Ivoire

45 Complement prepared, but not deployed from Jul 05 until termination in Dec 06. Op terminated owing to reasons associated with peace - process in Cote d’Ivoire

Op ESPRESSO. Ethiopia/ Eritrea

6 Staff officers/mil observers according to UN/AU requirements

Op TEUTONIC I. DRC

47 Two Brassage Centres established, assistance with integration of 147 000 former belligerents. African Renaissance funds used for post - conflict reconstruction

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External Force Employment Achievements 2006/07…Operation Members

DeployedAchievement

Op TEUTONIC II, DRC

63 Two training facilities constructed. Mission concluded in Sep 06

Op TEUTONIC III, DRC

2 Senior members deployed to coordinate SANDF assistance to the Congolese Defence Force

Op TRITON, Comoros

318 AU appointed South Africa as lead nation in AU mission in the Comoros. Mission commended and received recognition from AU Peace and Security Council

Op CORDITE. The Sudan

648 AU requested increased force levels, from 2 companies to battalion strength being deployed. Two successful rotations were completed. Sustainment flights were and remain a problem due to Sudanese authorities not giving over-flight and landing clearances

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Operation Members Deployed

Achievement

Operations SOLITAIRE I, II, III and IV. DRC

26 A total of 2 165 tons of ballot material were distributed. 200 observers from DFA were successfully deployed and supported by the DOD

Op CURRICULUM. Burundi

1 110 Protected the Burundi leader element returning from exile. New mission with a temporary time frame and anticipated to end in 2008.

Op MARINER.Madagascar

30 29 November to 12 December 2006. All objectives with regards to transportation and general assistance were achieved. The mission was commended and received recognition from the international community.

External Force Employment Achievements 2006/07…

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Achievement

Op INDAWO. Lesotho

27 15 February 2007 to 20 February 2007. All ballot papers for the Lesotho election were successfully distributed and collected by the SA Air Force. The SANDF used its own air capabilities for the deployment.

Op LITCHI II. Mozambique

80 6 March 2007 and remains current. A total of 630 tonnes of food and 2.5 million litres of purified water were distributed. Three SA Air Force aircraft as well as water purification plants were deployed.

Op BAPISA. Mozambique

53 From 26 March 2007. The successes of the operation will be made visible in the FY2007/08 report

External Force Employment Achievements 2006/07…

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Achievement

Op INTEXO Borderline control

1 111 daily

Borderline control was executed along the Zimbabwe, Mozambique, Swaziland and Lesotho borders. Successes include: 46 weapons found; 15 676 kg marijuana confiscated; and 727 criminals arrested. Force decreasing on continuous basis in accordance with the agreed SANDF Exit and SAPS Entry Strategy between the SANDF and the SAPS.

Op STIPPER, Rural safeguarding

197 ATR The target was fully met in compliance with SAPS requirements. Successes include: 170 weapons found 2 657 kg marijuana confiscated and 2 742 criminals arrested.

Internal Force Employment Achievements 2006/07

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Achievement

Op HUMAN. Support to Government

84 mostly Reserves

The Dept of Agriculture was assisted in the containment of classical swine fever in the Eastern Cape, KwaZulu - Natal and the Free State. A total of 13 352 pigs were killed. Supported the Marine and Coastal Management by conducting coastal patrols to curb abalone poaching, and routine fishery patrols. A total of 40 abalone poachers were arrested. The SA Air Force patrolled the maritime coast of the RSA (Operation NEPTUNE- RSA West Coast and Operation ORCA at the RSA East Coast).

Internal Force Employment Achievements 2006/07….

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Joint Exercises 2006/07

Exercise Achievement

SA Special Forces Exercises Three exercises to rehearse contingencies were executed as planned

SANDF Communication Exercise This exercise was integrated with other planned exercises to ensure effective communication skills and radio procedures

Ex MATHOLE. Command post exercise (CPX) to test rapid reaction capability and develop SANDF doctrine and procedures in peacekeeping. Prepare forces training exercise in 2007

The exercise was cancelled due to the non-availability of force structure elements. Focus on planning and preparing of forces for Exercise NDLOVU planned for 2009

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Joint Exercises 2006/07 …


Ex OXIDE. (GERANIUM). Enhance preparedness of the SANDF to render support to the Dept of Transport in search and rescue, in conjunction with French forces based in La Reunion as per MOU

The exercise was cancelled due to unavailability of French forces. The last exercise was conducted in May 2005.

Ex EMEX. To render support to the National Nuclear Regulator in dealing with a nuclear incident at Koeberg nuclear plant as required by legislation

The exercise at the Koeberg nuclear plant in March 2006 was attended by military observers. Different scenarios were simulated whereby contingencies were confirmed and rehearsed.

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Joint Exercises 2006/07 …


EXERCISE AFFIX. To render support to the Airports Company of South Africa in dealing with aircraft disasters at South African airports, as required by legislation.

The exercise at O.R. Tambo Airport In Johannesburg in March 2006 was attended by military observers. Different scenarios were simulated and contingencies were confirmed and rehearsed

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Multi-National Exercises 2006/07


Ex AIR BORNE AFRICA. Airborne forces competition

This exercise was cancelled, as no host nation for the exercise could be found

Ex BELL BUOY. Military (naval) control of merchant shipping in times of emergency (Indian Ocean)

The maritime exercise was conducted with the Navies of Uruguayan, Brazilian and Argentinean. All the objectives for the exercise were met. The exercise took place in Brazil in Sept 2006.

Ex TRANSOCEANIC. Military (naval) control of merchant shipping in times emergency in participation with South American countries (South Atlantic Ocean)

Exercise TRANSOCEANIC took place from 14 to 25 Aug 06 in South Africa. Participating countries were Brazil, Argentina, Uruguay and SA. SA Navy Reserve teams stationed at the six main ports of SA participated in this exercise.

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Multinational Exercises 2006/07 …


Exercise COMBINED ENDEAVOUR. Partnership for Peace Communications and Information Systems technical demonstration

The multinational interoperability exercise took place during March, May, Sep, Nov 2006, Jan and March 2007. The exercise was executed in Georgia, Germany, the Netherlands, Armenia, Slovakia, Ukraine and Germany. 24 members of the CMIS Div were involved in the planning and execution of the exercise.

Exercise AFRICA ENDEAVOUR. African communications and information systems interoperability exercise

CMIS Div conducted the African interoperability exercise in Jul 2006 at Wonderboom Military Base. Planning was done in Nov 2006 and Jan 2007 to host the second Exercise AFRICA ENDEAVOUR in the RSA in Jul 2007. The United States European Command (USEUCOM) invited most of SADC to participate. The aim is to establish SADCBRIG interoperability

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Multinational Exercises 2006/07 …


EXERCISE ATLASUR. Maritime exercises between SA Navy and South American countries to enhance multinational conventional naval warfare capabilities in the South Atlantic Ocean

The maritime exercise took place in Uruguay from 28 Oct to 7 Nov 2006. The SA Navy as well as Uruguayan, Brazilian and Argentinean navies participated.

Exercise BLUE RUVUMA. Humanitarian relief exercise based on a flood disaster scenario in one of the SADC member states

The SAAF conducted the exercise in Tanzania supported by other services and divisions. The exercise took place from 9 to 13 Oct 2006.

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DEFENCE OUTPUTS: LANDWARD DEFENCE

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• HIGHLIGHTS

– 4 638 Infantry conventional Reserves were utilised for external and internal deployments, administration and guards.

– 1 000 volunteers from Army Territorial Reserves transferred to Army Conventional Reserve (rejuvenation programme).

– Two Reserve companys and combat support elements deployed externally.

– Rejuvenation of SA Army (MSDS). 2 421 from Jan 2005 intake appointed in Core Service System. Jan 2006 intake 3 000 trained in first cycle. Jan 2005 MSDS intake completed force preparation cycle with Exercises SEBOKA and YOUNG EAGLE

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• CHALLENGES

– Mismatch between allocated funds and ordered commitments

– Revitalisation of SA Army’s Technical Service Corps capability

– State of readiness is compromised by shortage of ammunition and general commodities

– Attrition of skilled technical personnel to the private sector.

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DEFENCE OUTPUTS: AIR DEFENCE

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• HIGHLIGHTS

– 37 160 hours were flown of which 9 788 hours were in direct support of Joint Operations.

– Support to Italian and Brazilian air forces, trained VIP protectors for Pakistan.

– Air Force Reserves delivered 52 496 man-days, flew 2 737 hours.

– Exercise BLUE RUVUMA, Exercise NEW HORIZON (NH) 5, Air Capability Demonstrations.

– HR transformation - increased numbers of black candidates for training.

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• HIGHLIGHTS …

– Two pupil pilot courses completed : 33 learners, 30 males, three females while 67% were black

– MSDS – altogether 613 learners trained

– Vigorous initiaitives to retain scarce skills implemented

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• CHALLENGES

– Significant levels of under-funding of operating budget

– Impact of late release of the Hawk Jet Trainer caused disruptions to the planned training and conversion schedule

– Deterioration of operational infrastructure and facilities

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DEFENCE OUTPUTS: MARITIME DEFENCE

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• HIGHLIGHTS

– Four frigates and two of three new submarines are in service

– Involvement in SADC maritime matters, trained over 40 learners from various African countries

– Maritime Reaction Squadron established

– Increased representivity in combat domains

– Progress in rejuvenating the SA Navy as demonstrated by 480 MSDS recruits joining the Naval Reserves

– Public Private Partnership for Sea Safety Training Centre – Transaction Advisor appointed

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• CHALLENGES

– Current funding level - maintained only facilities required for force preparation.

– Loss of technical skills and expertise – diving and technical domains in spite of measures to retain.

– Continuing deterioration of facilities.

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DEFENCE OUTPUTS: MILITARY HEALTH

SERVICES

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• HIGHLIGHTS

– Force preparation consolidated through Exercise LANCET.

– Intergration of the Health support systems with the requirements of the Strategic Defence Packages.

– Optimised alignment between Strategy and Plan roll-out.

– Renewal and maintenance of health facilities prioritised and commenced with at the three military hospitals.

– Race and gender demographic configuration of the SAMHS realigned.

– Interdepartmental training cooperation reinforced through the training of MSDS and other health care workers (Dept of Health).

– Military Psychological Institute (MPI) made significant strides in developing developing health readiness measurement instrument for military needs.

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• CHALLENGES

– Availability and retention of health care practitioners.

– SAMHS facilities and renewal of main medical equipment.

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DEFENCE OUTPUTS: DEFENCE INTELLIGENCE

82


• HIGHLIGHTS

– Positive feedback from national clients - DI supports national intiatives on African continent, level of assessment – national benchmark.

– Support provided to SANDF operations/exercises as required

– Training agreements with SAPS.

• CHALLENGES

– Recruitment and retention of personnel.– Relocation of the division to a suitable facility.

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DEFENCE OUTPUTS: JOINT SUPPORT

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• HIGHLIGHTS

– Commenced implementation of DEIS Master Plan

– Commencement of projects to upgrading of main ITC equipment.

– Good progress with migration of fragmented logistics information systems to OSIS and CALMIS.

– 2 000 tons unserviceable ammunition destroyed.

– Five of seven demolition ranges qualified.

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• HIGHLIGHTS …

– Ammunition disposal support to Mozambique (1 200 tons).

– Four staff members of the Military Academy were appointed as Professors by University of Stellenbosch.

– Full accrediation status was accorded to Warrant Officer’s Academy as a learning provider by SAQA.

– DPW’s lack of capacity to maintain the facilities at an acceptable level resulting in non-compliance with the SAQA Act as learning providers that need to comply with specific provisions of the OSH Act, 1985.

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• HIGHLIGHTS …

– Expansion of the Military Police Agency ceremonial motorcycle fleet, soft - skin vehicles and radio communication equipment

– Joint training with of military police the SAPS and traffic deptartments.

– Improved representivity at middle management level.

– Rejuvenation of the Military Police HR component by therecruitment of 56 MSDS members.

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CHALLENGES

– Loss of expertise – ICT domain greater reliance on contracted services provided by SITA.

– ICT obsolescence

– Maintenance backlog of facilities concern about DPW services

– Asset accounting management system not fully compliant with GRAP.

– The implementation of the NSF Pension dispensation ito the approved Legislation and GEPF Pension Fund Rules

– Migration of HR Satelite Centres back to Services and Divisions

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CHALLENGES …

– Backlog in disposal of redundant and unserviceable ammunition.

– Loss of specialised logistic skills.

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CHALLENGES

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• AUDIT QUALIFICATIONS

• Tangible and intangible capital assets

• Irregular expenditure

• Travel and subsistence

• Prepayment and advances

• Accruals

• Lease commitments

• Regional Services Council levies

• Contingent liabilities

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• AUDIT QUALIFICATIONS …

– Misclassification of expenditure

– Receivables

– Departmental revenue to be surrendered to Revenue Fund

– Commitments

– Clearing accounts

– Fruitless and wasteful expenditure

– Rank review audit

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• AUDIT QUALIFICATIONS …

– Comparatives

– Local and foreign aid

• Unauthorised expenditure

• Systems

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HIGH LIGHTS

116


• Insignificant under-spending

• Development of financial statements

• Submitted on time

• Competency levels of team

• Improvement of awareness among stakeholders

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CONCLUDING REMARKS

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• During the period under review the DOD has managed to maintain the balance between:

– Ensuring that appropriate defence capabilities are provided in order to honour ordered commitments within available resources.

– Ensuring that sound corporate governance is enhanced and institutionalised.

– Promoting accelerated service delivery, while creatively managing the retention of scarce skills.

– Finding creative means of developing sustainable and reliable accounting systems for its resources.

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QUESTIONS

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dod annual report for fy2006/07 1 presentation of the dod annual report for fy2006/07 to the...

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