To present the concise corporate overview of the Department of Defence (Def Sec and sandf) 2014 apps to the Portfolio Committee as tabled on 12 March 2014
To present the concise corporate overview of the Department of Defence (Def Sec and SANDF) 2014 APPs to the Portfolio Committee as tabled on 12 March 2014
The DOD Constitutional and Legislative mandate place the following imperatives on the DOD:
The DOD Constitutional and Legislative mandate place the following imperatives on the DOD:
“To provide for the defence and protection of the Republic, its territorial integrity and its people” [Constitution of the Republic of South Africa, 1996: Section 200(2)]
“A civilian secretariat for defence must be established by national legislation to function under the direction of the Cabinet member responsible for defence” [Constitution of the Republic of South Africa, 1996: Section 204]
DOD VISION
DOD VISION
“Effective defence for a democratic South Africa”
DOD MISSION
“To provide, manage, prepare and employ defence capabilities commensurate with the needs of South Africa as regulated by the Constitution, national legislation and Parliamentary and Executive direction. The above will be provided through the proper management, provision, preparedness and employment of defence capabilities, which are in line with the domestic and global needs of South Africa”
Defence as an organ of state is required ito the PFMA and related National Treasury Regulations (Section 5 and 30) to ensure the submission of a departmental Strategic Plan (5 Year planning horizon)
Defence as an organ of state is required ito the PFMA and related National Treasury Regulations (Section 5 and 30) to ensure the submission of a departmental Strategic Plan (5 Year planning horizon)
The DOD as a mechanism to safeguard “confidential” departmental information, formally adopted the development of the DOD Executive Authority Overarching Strategic Statement, EA OASS, (2011/12-2015/16) as the overarching platform to inform further departmental planning, the Defence Secretariat (Def Sec) and South African National Defence Force (SANDF) Strategic Plans (2011/12-2015/16).
The reporting of performance against the above plans is dealt with through the relevant committees of Parliament.
The DOD is in the process of developing the new DOD Strategic Plan (2015-2020) in support of the Medium Term Strategic Framework (MTSF) and will be tabled during February 2015 as required by legislation.
The MOD&MV has furthermore directed that the DOD as from FY2015/16 MTEF shall ensure the development of one single departmental Strategic Plan (2015-2020) and on single departmental APP FY2015/16 MTEF onwards.
The above-mentioned planning instruments were tabled in Parliament on 09 March 2011. The EA OASS provides the following strategic focus areas:
The above-mentioned planning instruments were tabled in Parliament on 09 March 2011. The EA OASS provides the following strategic focus areas:
National Imperatives:
Defend and protect South Africa.
Contribute to freedom from fear and want, including the promotion of human security both nationally and internationally.
Contribute to a better life for the people of South Africa
Departmental Imperatives:
Enhanced and maintained defence capabilities.
Promotion of peace, security and confidence building in the SADC region and the African continent through constructive dialogue aimed at nurturing sound Defence diplomatic relations and projecting South Africa’s foreign policy principles and objectives.
Government’s policy to resolve conflicts peacefully through recognised international instruments and mechanisms are supported through the deployment of the SANDF inn international peace missions.
Participation by the DOD (SANDF) in multilateral institutions (SADC, AU and UN) in support to government’s diplomatic engagements.
The DOD EA OASS (2011/12-2015/16) as tabled on 09 March 2011 outlined the following MOD&MV Priorities:
Execution of the border safeguarding function.
Establishment of the New Service Dispensation.
Enhancement of the SANDF’s Landward Defence Capabilities Equipment.
Maritime Security.
Job Creation.
Enhancement of the SANDF’s Peacekeeping Capability.
National Youth Service.
Revitalisation of the Reserves.
Restructuring and Support of Defence Industry.
Department of Defence Works Capability.
DOD FY2014/15 MTEF Planning Instruments are:
DOD FY2014/15 MTEF Planning Instruments are:
Aligned to outcomes based principles of government.
Aligned with National Treasury Framework for SP and APP.
Aligned with the DOD Strategic Plan.
DOD FY2014/15 MTEF APPs were tabled in Parliament on 12 March 2014 (60 Copies and 1x Compact Disc).
The DOD as required by the NT Framework on Strategic and Annual Performance Plans, has adopted an implemented Outcomes Based Planning (Results Based Planning) at all levels of the DOD.
The DOD as required by the NT Framework on Strategic and Annual Performance Plans, has adopted an implemented Outcomes Based Planning (Results Based Planning) at all levels of the DOD.
Reflective of this Outcomes based requirement within the context of the Defence Constitutional and Legislative mandate, the DOD Strategy Map is provided as follows as the basis of departmental planning.
The following MOD&MV Strategic Priorities shall receive attention during the period under ahead for execution through DOD (Defence Secretariat [Def Sec] and SANDF) FY2014/15 Planning Instruments:
The DOD, through the pursuit of its legislative mandate and inherent defence capabilities, will continue to render support to the selected MTSF outcomes.
The DOD, through the pursuit of its legislative mandate and inherent defence capabilities, will continue to render support to the selected MTSF outcomes.
As a general rule, the content of each MTSF outcomes forms the basis for a Delivery Agreement (DA) between a responsible Cabinet member and the President of the RSA.
Prior to the May 2014 General Elections, the MOD&MV was a co-signatory responsible for the co-ordination and chairpersonship of the International Cooperation Trade and Security (ICTS) Cluster for the MTSF Outcome 11: “Creating a better South Africa and contributing to a better and safer Africa in a better World”.
Post General Elections, the MOD is responsible for co-ordination and chairpersonship of the Justice, Crime Prevention and Security Cluster for MTSF Outcome 3: “All people in South Africa are and feel safe”
The MTSF outcomes to which Defence contributes to, by virtue of its Legislative Mandate and inherent capabilities, are as follows:
The MTSF outcomes to which Defence contributes to, by virtue of its Legislative Mandate and inherent capabilities, are as follows:
Outcome 2: A long and healthy life for all South Africans.
Outcome 3: All people in South Africa are and feel safe.
Outcome 5: Skilled and capable workforce to support an inclusive growth path.
Outcome 11 Creating a better South Africa and contributing to a better and safer Africa in a better World
Outcome 12: An efficient, effective and development-oriented public service and empowered, fair and inclusive citizenship.
The DOD while striving for the achievement of the departmental legislative “core-sustained” mandate, remains cognisant of the national government “change” agenda to which defence, with available resources, will endeavor to support.
The approval on 11 November 2011 of the National Development Plan (NDP) is a plan for the country to eliminate poverty and reduce inequality by 2030 through uniting South Africans, unleashing the energies of its citizens, growing an inclusive economy, building capabilities and to enhance the capability of the state and its leaders by working together to solve complex problems.
This vision also informs Government Policy that includes the Industrial Policy Action Plan (IPAP) and the New Growth Path (NGP).
The NDP and its related policies provide a national framework that informs the national departments’ contribution. Aspects relevant to defence and our envisaged contribution are as follows:
The NDP and its related policies provide a national framework that informs the national departments’ contribution. Aspects relevant to defence and our envisaged contribution are as follows:
Envisaged reduction in youth unemployment. The DOD is in the process of developing a policy on NYS within the Department.
Provide assistance in disaster aid and disaster relief. The DOD will assist in times of disaster relief and humanitarian assistance as directed by government.
Support in the combating of maritime piracy along the East Coast of Africa. The DOD will continue to support the combatting of maritime piracy along the East Coast of Africa.
Strengthening the National Research and Development capacity. The DOD will establish a DOD Strategic Research capability.
Building safer communities. The DOD’s contribution to building safer communities is realised through conducting internal operations and safeguarding the territorial integrity of the RSA.
Building a capable and developmental State. The DOD will review the governance structures of Public Entities (Armscor).
Corruption and Fraud. The DOD will intensify its campaign in fighting corruption and fraud.
Government released the Framework of the NGP aimed at enhancing growth, job creation and equity. The policy’s principal target is to create five million jobs by the year 2020. The NGP identifies strategies that will enable South Africa to grow in a more equitable and inclusive manner while attaining South Africa’s developmental agenda. The DOD will endeavour to support the NGP through:
Development of the NYS policy and preparing youth for employment.
In the long term, it is foreseen that job opportunities within the Defence Industry in accordance with approved DOD capital acquisition projects will be created.
The IPAP is located in the vision of the NDP and forms one of the principal pillars of the NGP and as such, the DOD with the pending Defence Review will direct Public Procurement and enable long-term acquisition and procurement of defence PME.
The IPAP is located in the vision of the NDP and forms one of the principal pillars of the NGP and as such, the DOD with the pending Defence Review will direct Public Procurement and enable long-term acquisition and procurement of defence PME.
The DOD remains committed to alignment with the national processes for strategic planning, budgeting, reporting and risk management.
To this end, the DOD strives for the development of performance information that promotes transparency and expenditure control towards economy, efficiency, effectiveness and equity in the use of public resources, and to do so in a way that demonstrates alignment with legislation and national outcomes.
The following high level criteria informs (amongst others) the identification of the DOD ENE on an annual basis:
The following high level criteria informs (amongst others) the identification of the DOD ENE on an annual basis:
Level 0/1 Core Indicator.
Legislative / policy (sustained) mandate.
Output Deliverables.
Major cost drivers.
Trendable information.
Linkage to the MTSF Outcomes and NDP
The selected performance indicators, which are presented on the next slide, form a component of the DOD 2014 Defence Vote 22.
The selected performance indicators, which are presented on the next slide, form a component of the DOD 2014 Defence Vote 22.
The DOD briefed the NT’s MTEC sub-functional group about the Defence budget requirements on 23 July 2013. NT indicated to Defence that the economic situation has deteriorated and that additional allocations for FY2014/15 will most probably not be possible.
The DOD briefed the NT’s MTEC sub-functional group about the Defence budget requirements on 23 July 2013. NT indicated to Defence that the economic situation has deteriorated and that additional allocations for FY2014/15 will most probably not be possible.
Defence again briefed the “Defence, Public Order and Safety Functional MTEC about the Defence budget requirements on 22 August 2013. The MTEC proposed some reprioritisation of the Defence budget, some of which were accepted by Defence. These proposals were subsequently submitted to the MinComBud by NT.
The Defence Database and Chapter for the 2014/15 MTEF was submitted to NT on 06 December 2013 for inclusion in the Estimates of National Expenditure.
The Defence Database and Chapter for the 2014/15 MTEF was submitted to NT on 06 December 2013 for inclusion in the Estimates of National Expenditure.
Increase in Landward Defence over the MTEF mainly due to the planned replacement of the Infantry Combat Vehicle system.
Increase in Landward Defence over the MTEF mainly due to the planned replacement of the Infantry Combat Vehicle system.
Decrease in Air Defence in 2016/17 mainly due to the following acquisition projects that are nearing its end or are scaling down ito its milestones; "Upgrade of Intelligence Image Capability", "Development and Procurement of New Generation Air-to-Air Missile", "Replacement of Aircraft Rescue and Firefighting Vehicles", "Replacement of Medium Distance 3D Radar", "Development and Procurement of Maritime Surveillance Aircraft" and "Expansion of Pilatus, Hawk and Gripen ejection seats“.
Increase in Maritime Defence in 2016/17 mainly due to the following acquisition projects that are starting or are scaling up ito its milestones; "Procurement of Off-Shore Patrol Vessels", "Acquisition of Hydrographic Vessel", "Replacement of Heavy Weight Torpedo Capability" and "Midlife Upgrade of Frigates".
Increase in Maritime Defence in 2016/17 mainly due to the following acquisition projects that are starting or are scaling up ito its milestones; "Procurement of Off-Shore Patrol Vessels", "Acquisition of Hydrographic Vessel", "Replacement of Heavy Weight Torpedo Capability" and "Midlife Upgrade of Frigates".
Increase in Military Health Support mainly due to additional allocation made available for outsourced services and medicine.
Increase in General Support mainly due to expanding the Defence Works Formation.
The feedback required ito vacancies by critical occupation in the DOD is as follows:
The feedback required ito vacancies by critical occupation in the DOD is as follows:
Funded Posts: 77 606
Current strength: 78 178
Requirement: 81 184
Budget Constraints
Improvement of Conditions of Service (ICS) not fully funded always.
The improvement of salaries of soldiers in 2009 was not funded; having negative impacts in future years.
Insufficient funding received from National Treasury (Rm490) for annual cost living and home owner’s allowances.
Additional utilization of Reserves due to unforeseen circumstances, Rm500.00.
The FY12/13 Audit Report reflects the following findings:
The FY12/13 Audit Report reflects the following findings:
Two qualifications relating to asset management iro:
Movable Tangible Capital Assets
Intangible Capital Assets
Other Matter Items include the following:
Performance Information – Force Employment
Internal Audit
Audit Committee
Human Resource Management and Compensation
Transfer of Funds
Expenditure Management
Procurement and Contract Management (4)
In Oct 2913 the PCD having considered the DOD financial and non-financial performance as well as the NT budget submission for the medium terms period, made specific recommendations.
In Oct 2913 the PCD having considered the DOD financial and non-financial performance as well as the NT budget submission for the medium terms period, made specific recommendations.
The DOD seeks to reflect, from its own perspective, what has been done to implement these recommendations.
It has to be noted, however, that the implementation of some recommendations fall outside of the DOD’s competence.
‘It is crucial that the Department track its quarterly expenditure to avoid significant virements in the 4th quarter of the financial year. For instance the overspending on Training capability and the under-spending on Transport and Maritime Capability in the SDA, should be closely monitored to avoid over expenditure by the end of the financial year. Quarterly briefings by the Department to the PCODMV should therefore focus on these and similar issues’.
‘It is crucial that the Department track its quarterly expenditure to avoid significant virements in the 4th quarter of the financial year. For instance the overspending on Training capability and the under-spending on Transport and Maritime Capability in the SDA, should be closely monitored to avoid over expenditure by the end of the financial year. Quarterly briefings by the Department to the PCODMV should therefore focus on these and similar issues’.
DOD Response
The Department through the Plenary Defence Staff Council (PDSC) monitors departmental expenditure on a monthly and quarterly basis during the financial year to ensure funds are effectively managed.
The Departmental Planning, Budgeting and Evaluation Committee (DPBEC) held during August each year, evaluates actual performance against the approved Annual Performance Plans (APPs), programme and budget whilst performing an oversight role on actual spending to date. Subsequent to the evaluation, recommendations are made to the PDSC to enable corrective actions and interventions as it may deem necessary to ensure budget realignment.
As part of its oversight work, the Audit Committee monitors the dept’s cash flow performance and recommends intervention where necessary.
As part of its oversight work, the Audit Committee monitors the dept’s cash flow performance and recommends intervention where necessary.
Due however to the nature of the departmental contractual commitments, expenditure towards the end of the financial year will be higher than the norm.
‘The challenge faced by the Department in its interaction with National Treasury, to increase its budgetary allocation, is a concern, especially against the background that National Treasury itself questions whether the Department is actually underfunded. This is due to allocations to the SDA of R4.6 billion in 2012/13 and R5.8 billion for 2013/14, which brings the total amount in SDA to R10.4 billion. This issue needs to be clarified to the PCODMV by both National Treasury and the Department’.
‘The challenge faced by the Department in its interaction with National Treasury, to increase its budgetary allocation, is a concern, especially against the background that National Treasury itself questions whether the Department is actually underfunded. This is due to allocations to the SDA of R4.6 billion in 2012/13 and R5.8 billion for 2013/14, which brings the total amount in SDA to R10.4 billion. This issue needs to be clarified to the PCODMV by both National Treasury and the Department’.
DOD Response
The SDA is, ito the SDA Act, utilised exclusively for the acquisition of:
Main capital equipment;
Armament acquisition projects managed under the Strategic Capital Acquisition Master Plan (SCAMP) including technology development;
Sensitive projects and activities; and
Other requirements as approved by the Accounting Officer.
The SDA Act makes provision for commitments to be rolled to the subsequent financial year with funds.
‘DOD Response
‘DOD Response
‘The Department should include information on its payment of invoices within 30 days in each quarterly report it presents to the PCODMV in order to avoid non-compliance.
‘The Department should include information on its payment of invoices within 30 days in each quarterly report it presents to the PCODMV in order to avoid non-compliance.
DOD Response
Information related to the payment of invoices within 30 days will be included in each quarterly report presented to PCD &MV.
It is to be noted that the 30 days is only applicable where invoices received from suppliers are correct and payable.
The Sec Def commissioned an investigation to improve the 30 days payment and a report will be available in September 2014. The outcome of the investigation will provide guidance on how to improve/solve the issue.
‘The utilisation of funds allocated for the CAR deployment, which has been subsequently been cancelled, should be explained to the Committee’.
‘The utilisation of funds allocated for the CAR deployment, which has been subsequently been cancelled, should be explained to the Committee’.
DOD Response
In full consultation with National Treasury the budget allocation earmarked for Central African Republic (CAR) was moved to address the operational requirements for the Force Intervention Brigade (FIB) in the Democratic Republic of Congo .
‘The Department, particularly the Minister and the Secretary for Defence, should ensure that investigations are conducted into financial misconduct matters as stipulated by Treasury Regulations’.
‘The Department, particularly the Minister and the Secretary for Defence, should ensure that investigations are conducted into financial misconduct matters as stipulated by Treasury Regulations’.
DOD Response
All reported financial misconduct cases were investigated as required by National Treasury. An instruction to comply with the financial misconduct policy: Investigation Requirements (DODI FIN/00024/2002 (2nd Edition) was issued for the purposes of further strengthening financial controls. For the FY2013/14 financial year various disciplinary cases in respect of financial misconduct were finalised, whilst other are still being investigated.
‘The change in the Selected Performance Indicators and Targets from year to year as well as targets and indicators having to adhere to the SMART principles as set out by National Treasury Regulations should be addressed’.
‘The change in the Selected Performance Indicators and Targets from year to year as well as targets and indicators having to adhere to the SMART principles as set out by National Treasury Regulations should be addressed’.
DOD Response (see next slides).
‘The Department should improve its internal controls and record keeping in general and specifically as it pertains to the Force Employment Programme as indicated by the A-G. The A-G will be invited to elaborate on its methodology and specifically the accuracy and relevance of their audit findings for the 2012/13 financial year’.
‘The Department should improve its internal controls and record keeping in general and specifically as it pertains to the Force Employment Programme as indicated by the A-G. The A-G will be invited to elaborate on its methodology and specifically the accuracy and relevance of their audit findings for the 2012/13 financial year’.
DOD Response
The process and basis for determining the personnel strengths in operations have been changed to use the personnel management system to support the performance data reported rather than the operational situational reports (SITREPS).
The changed procedure has already been implemented for all reports related to external operations. The performance reports for the first and second quarter have been amended to ensure that the performance information for the FY2013/14 is aligned with the new procedures.
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The Department is in the process of establishing and filling the posts of the Internal Audit function and this process should be speeded up as it is central to pro-active measures to improve the performance of the Department, especially as it pertains to issues raised in the A-G’s qualified audit opinion. This will also assist in executing the action plans drafted to address the audit findings.
The Department is in the process of establishing and filling the posts of the Internal Audit function and this process should be speeded up as it is central to pro-active measures to improve the performance of the Department, especially as it pertains to issues raised in the A-G’s qualified audit opinion. This will also assist in executing the action plans drafted to address the audit findings.
DOD Response
A three year budget for 2013/14 and 2014/15 respectively was approved. The posts of the Secretary and the Office Manager were staffed.
The posts of the internal auditors (Assistant Directors, Deputy Directors and Directors) were advertised, shortlisted and interviewed. The posts are currently being processed through the vetting process as required by relevant public service regulations.
The current Defence Review should be finalised as a matter of urgency especially against the background that it will help to resolve most of the challenges faced by the Department. For instance, progress with the modernisation of the Landward defence capability remained stagnant, although it has been identified as a priority for the last five years, because the Defence Review has not been finalised.
The current Defence Review should be finalised as a matter of urgency especially against the background that it will help to resolve most of the challenges faced by the Department. For instance, progress with the modernisation of the Landward defence capability remained stagnant, although it has been identified as a priority for the last five years, because the Defence Review has not been finalised.
DOD Response.
Cabinet approved the South African Defence Review 2014, and directed that it be tabled in Parliament. The Review provides a long term Defence Policy and Defence Strategic Trajectory to be pursued by the country over the next four Medium Term Strategic Framework periods
The DOD is currently developing the DR implementation Plan. Detailed planning, deliverables’ mapping, budget estimation, controls and programming are required if the intent of the DR is to be realised.
The lack and poor condition of Facilities are a main concern and the Committee recommends that the establishment of the Defence Work Capability should be finalised as soon as possible and that the negotiations with DPW for the repair and maintenance responsibilities to be moved to the DODMV be prioritised.
The lack and poor condition of Facilities are a main concern and the Committee recommends that the establishment of the Defence Work Capability should be finalised as soon as possible and that the negotiations with DPW for the repair and maintenance responsibilities to be moved to the DODMV be prioritised.
DOD Response
The MOD&MV authorised the structure and plan of the Defence Works Capability (DWC).
The MOD&MV has commenced negotiations with the Minister of NDPW with a view of getting a commitment for the devolution of certain functions and funds from the NDPW to the DOD.
To that end, a draft MOU has been prepared by the DOD. This is currently being considered by the NDPW.
