3rd Quarterly Performance Report DOD (Def Sec and SANDF) 3rd Quarterly Performance Report for FY2013/14 PCD&MV 18 February 2014

Aim Information Brief on the DOD (Def Sec and SANDF) 3rd Quarterly Performance Report for FY2013/14 2

Scope Legislative Requirements Summary of Quarterly Financial Performance Appendix A: Summary of Quarterly Performance Targets MOD Priorities DOD Selected Performance Indicators Summary of Def Sec Quarterly Performance Targets Summary of SANDF Quarterly Performance Targets 3

Legislative Requirements In terms of Section 38(1) (a) (i) and (ii), of the Public Finance Management Act (PFMA), Act 1 of 1999 as amended, the “Accounting Officer for a department must ensure that the department has and maintains effective, efficient and transparent systems of financial and risk management and internal control; and a system of internal audit under the control and direction of an audit committee”. The Treasury Regulations, par 5.3.1 states that, “the accounting officer of an institution must establish procedures for quarterly reporting to the executive authority to facilitate effective performance monitoring, evaluation and corrective action.” The Framework for Strategic Plans and Annual Performance Plans, states that the quarterly report “provides the Accounting Officer with an opportunity to indicate measures that will be taken to ensure that implementation of the Annual Performance Plan remains on track” and that quarterly reports must be submitted to the National Treasury and the Auditor-General for auditing purposes. The DOD complied with its requirements arising from the constitutional mandate. 4

Summary of Quarterly Financial Performance 5

STATE OF EXPENDITURE FOR THE YEAR TO DATE: 31 DECEMBER 2013 DOD Planned expenditure: 70,9% R'000 Budget Allocation 40,658,184 Less: Expenditure 28,291,158 Total Amount Available 12,367,026 Percentage Expenditure (Paid) 69.6% 6

STATE OF EXPENDITURE FOR THE YEAR TO DATE PER PROGRAMME: 31 DECEMBER 2013 7

STATE OF EXPENDITURE FOR THE YEAR TO DATE PER PROGRAMME: 31 DECEMBER 2013 (CONTINUED) 8

STATE OF EXPENDITURE FOR THE YEAR TO DATE PER PROGRAMME: 31 DECEMBER 2013 The unaudited expenditure (paid) of Defence as at 31 December 2013 was R28.291 billion (69.6%) against the approved planned expenditure of R28.8130 billion (70.9%) from a R40.658 billion appropriated budget resulting in an under expenditure of R521.9 million (1.8%). Factors that contributed to deviations of more than 8% of actual drawings per programme are as follows: Air Defence Programme. The lower than planned expenditure (R353.6 million) (8.3%) was mainly due to the protracted procurement processes within ARMSCOR and the delay in the finalisation of the skills service agreement with Denel. 9

STATE OF EXPENDITURE FOR THE YEAR TO DATE PER ECONOMIC CLASSIFICATION: 31 DECEMBER 2013 10

STATE OF EXPENDITURE FOR THE YEAR TO DATE PER ECONOMIC CLASSIFICATION: 31 DECEMBER 2013 (CONTINUED) 11

STATE OF EXPENDITURE FOR THE YEAR TO DATE PER ECONOMIC CLASSIFICATION : 31 DECEMBER 2013 Factors that contributed to deviations of more than 8% of actual drawings per economic classification are as follows: Payments for Capital Assets. The over expenditure of R180.5 million (56.6%) against the approved drawing schedule of R318.9 million was mainly as a result of the payment to the National Department of Public Works in terms of the capital works program. It should be noted that available funds present the Adjusted Budget as approved by Parliament and does not include internal fund reallocations. Internal fund reallocations will be included within the appropriation statement at financial year-end. General. Defence’s actual expenditure of R28.291 billion (69.6%) is less than its planned expenditure of R28.813 billion (70.9%) resulting in an under expenditure of 1.8% for the year to date. 12

REMARKS Defence is faced with two challenges namely to ensure 100% expenditure while serious efforts are made to contribute to Government’s austerity measures. This may result in under expenditure which is not similar to under performance. 13

Summary of Quarterly Performance Targets Red – high risk / certainty (major action is required) Amber– moderate risk (remedial/corrective action required) Green – low risk / on course (No major action is required) 14

MOD Priorities 15

Performance Indicator Responsible for Reporting MOD Priorities Serial No Ind Nr Performance Indicator Responsible for Reporting Projections FY13/14 Quarter Achievement Year-to-Date (YTD) Q1 Q2 Q3 Q4 1 D1_I10 Maritime Security   % compliance with number of ordered commitments (External - Maritime) Force Employment  1 1  (100%) 100% 100%   100% 2 P2_I06 National Youth Service  Percentage Compliance with DOD formal training targets (National Youth Service) Human Resources 2 000 974  1 184 2 158 49%  0% 59%  108% 3 R1_I1C Revitalisation of Reserves Number of Reserves utilised per year 24 243 12 141 13 551  14 212  14 212 4 R1_I1A DOD Works Capability  % compliance with planned staffing of funded posts (DOD Works Capability) Joint Logistics Services 70 54 56 01 1. 1 420 posts already staffed out of 2 515 approved posts. Situation remains the same as during the 2nd quarter. 16

DOD Selected Performance Indicators 17

Selected Performance Indicators Serial No Ind Nr Performance Indicator Responsible for Reporting Projections FY13/14 Quarter Achievement Year-to-Date (YTD) Q1 Q2 Q3 Q4 1 D2_I03 Compliance with the SADC standby force agreements and South African Pledge when required Force Employment 100% 100 100    2 P3_I03 Number of Defence Attaché offices Defence Intelligence - DFR 40 36 35  37  372 3 D1_I10 Percentage Compliance with number of ordered commitments (external operations) 6 5 53 (100%) 83% 3.1 Op CORDITE 3.2 Op COPPER 3.3 Op MISTRAL 3.4 Op VIMBEZELA 3.5 Mission THEBE Landward Defence 3.6 Team BULISA Defence Intelligence 2. Although all 40 offices are open, 5 offices (India, Egypt, Senegal, Mozambique, Ghana and Tanzania) are vacant and await opening and accreditation. This will change the achievement to 43 DAOs by the end of the FY when all are opened and accredited. 3. Target will not be achieved due to the termination of Op VIMBEZELA. The “under performance” at the end of the FY will not be as a result of the J Ops Div not being able to execute the ordered commitment, but it is due to a decision made at political level that the SANDF need to terminate Op VIMBEZELA and withdraw all forces from the Central African Republic. 18

Selected Performance Indicators (Cont’d) Serial No Ind Nr Performance Indicator Responsible for Reporting Projections FY13/14 Quarter Achievement Year-to-Date (YTD) Q1 Q2 Q3 Q4 4 D1_I10 Percentage Compliance with number of ordered commitments (internal operations) Force Employment   (100%) 100% 4.1 Op ARABELLA 1 4.2 Op CHARIOT 4.3 Op CORONA 4.4 Op PROSPER 5 P3_I02 Number of planned joint, interdepartmental and multinational military exercises conducted per year 9  4 0  54 4. The target of nine (9) JIM exercises to be executed for the FY will not be achieved. Five (5) exercises were conducted during the first six months namely Ex WAYSIDE in May and August, Ex SHARED ACCORD in July, Ex BLUE ZAMBEZI in August and Ex OXIDE in September. Four (4) exercises were not executed namely Exercises BELL BOUY, TRANSOCEANIC, FAIRWAY BUOY and ATLANTIC TIDINGS. The first three (3) exercises are Naval Co-operation and Guidance for Shipping (NCAGS) exercises. These exercises were under-capacitated with personnel due to their commitment to establish a NCAGS capability in SADC countries. This resulted in the SA Navy not executing the exercise. Ex ATLANTIC TIDINGS was planned to be executed in September, but was cancelled by the lead Nation Angola, due to capacity challenges. The SANDF does not have any control over decisions made by Foreign Forces. According to J Ops Div APP FY2013/14 - FY2015/16 page 21 serial 6.1 dd 07 December 2012 nine (9) exercises will be conducted for the FY2013/14 with three (3) in the first quarter and six (6) in the second quarter. None to be executed in the last two quarters. 19

Selected Performance Indicators (Cont’d) Serial No Ind Nr Performance Indicator Responsible for Reporting Projections FY13/14 Quarter Achievement Year-to-Date (YTD) Q1 Q2 Q3 Q4 6 R1_I1B Number of military skills development members in the system per year Human Resources 4 208 5 047 5 107 5 116    5 116 7 R1_I1C Number of Reserves utilised per year 24 243 12 141 13 551  14 212  12 212 8 D1_I05 Number of Force Employment Hours Flown per Year Air Defence 6 300 889 821  1 990 3 701 VIP Operations 800 257 214   182 653 Joint Force Employment 5 500 632 607 1 809  3 046 9 D1_I06 Number of hours at sea per year Maritime Defence 22 000 2 088 3 017  2 452  7 557 10 D1_I02 Number of landward sub-units deployed on border safeguarding Force Employment 13 13  20

DEFENCE SECRETARIAT 21

Overview of the Administration Programme The Def Sec consists of the following Sub-Programmes: Departmental Direction Government Information Technology Officer (GITO) Policy and Planning (Defence Policy, Strategy and Planning) Financial Services Acquisition Services (Defence Matériel) Defence Supply Chain Integration Defence International Affairs Human Resource Support Services Legal Services 22

Summary of Quarterly Performance Targets SN Performance Indicator Planned Annual Target 1st Quarter Target as per APP Apr – Jun 13 1st Quarter Actual output – validated 2nd Quarter Target as per APP Jul – Sep 13 2nd Quarter Actual output – validated 3rd Quarter Target as per APP Oct – Dec 13 3rd Quarter Actual output – validated 4th Quarter Target as per APP Jan – Mar 14 4th Quarter Actual output – validated Overall progress of indicator OFFICE OF THE MILITARY OMBUD 1 Office of the Military Ombud status Office fully functional and recommendations to the MOD&MV - Office functional Fully functional Green GOVERNMENT INFORMATION TECHNOLOGY OFFICER (GITO) 2 Department of Defence Information Strategy status Monitor and review 3 Information and communication systems Policy Development Plan DEFENCE POLICY, STRATEGY AND PLANNING (DPSP) 4 Tabling of DOD (Def Sec and SANDF) APP in Parliament in line with National Prescripts on Planning Tabled by February 2014 Develop Draft Def Sec APP Draft EA OASS and Def Sec APP for FY2014/15 in the process of development Submit 1st draft APPs to NT and Presidency 1st draft APPs submitted to NT and Presidency on 29 August 2013 Submit 2nd draft APPs to NT and Presidency 2nd Draft EA OASS and Def Sec APP for 2014 were submitted to NT and Presidency on 29 November 2013 Table DOD (Def Sec and SANDF) APPs in Parliament 23

Summary of Quarterly Performance Targets SN Performance Indicator Planned Annual Target 1st Quarter Target as per APP Apr – Jun 13 1st Quarter Actual output – validated 2nd Quarter Target as per APP Jul – Sep 13 2nd Quarter Actual output – validated 3rd Quarter Target as per APP Oct – Dec 13 3rd Quarter Actual output – validated 4th Quarter Target as per APP Jan – Mar 14 4th Quarter Actual output – validated Overall progress of indicator DEFENCE POLICY, STRATEGY AND PLANNING (DPSP) 5 DOD Enterprise Risk Management (ERM) Maturity level Level 4 - Level 5 Green 6 Tabling of the DOD Annual Report (AR) in Parliament in line with National Prescripts Tabled in line with National prescripts Draft AR (Perf Info) submitted to AGSA in line with National Prescripts DOD AR was tabled in Parliament in line with National prescripts on 30 September 2013 24

Summary of Quarterly Performance Targets SN Performance Indicator Planned Annual Target 1st Quarter Target as per APP Apr – Jun 13 1st Quarter Actual output – validated 2nd Quarter Target as per APP Jul – Sep 13 2nd Quarter Actual output – validated 3rd Quarter Target as per APP Oct – Dec 13 3rd Quarter Actual output – validated 4th Quarter Target as per APP Jan – Mar 14 4th Quarter Actual output – validated Overall progress of indicator DEFENCE POLICY, STRATEGY AND PLANNING (DPSP) 7 Established DOD Policy Research Capability Approved Organisational structure Strategic Analysis and Business Process concluded The development of the full requirements of the terms of a DOD Research Capacity is under investigation by the Office of the Sec Def Finalisation of Investigation Report The development of the full requirements of the terms of a DOD Research Capability is under investigation by the Office of the Sec Def Submitted for approval Red1 1 The indicator has been re-assigned to the Office of the Secretary for Defence. In the FY2014/15, this indicator will change to ‘Established DOD Policy Research Capability status’ 25

Summary of Quarterly Performance Targets SN Performance Indicator Planned Annual Target 1st Quarter Target as per APP Apr – Jun 13 1st Quarter Actual output – validated 2nd Quarter Target as per APP Jul – Sep 13 2nd Quarter Actual output – validated 3rd Quarter Target as per APP Oct – Dec 13 3rd Quarter Actual output – validated 4th Quarter Target as per APP Jan – Mar 14 4th Quarter Actual output – validated Overall progress of indicator DEFENCE POLICY, STRATEGY AND PLANNING (DPSP) 8 Coordinated Defence Engagements in Clusters Cluster related submissions as defined in the Annual Cabinet Programme 100% achieved All cluster related submissions as defined in the Annual Cabinet Programme submitted Green 9 DOD MPAT Assessment Level Level 3 - Level 2.2 (MPAT 1.2 - previous year score) Amber 26

Summary of Quarterly Performance Targets SN Performance Indicator Planned Annual Target 1st Quarter Target as per APP Apr – Jun 13 1st Quarter Actual output – validated 2nd Quarter Target as per APP Jul – Sep 13 2nd Quarter Actual output – validated 3rd Quarter Target as per APP Oct – Dec 13 3rd Quarter Actual output – validated 4th Quarter Target as per APP Jan – Mar 14 4th Quarter Actual output – validated Overall progress of indicator FINANCIAL SERVICES 10 Defence Fiscal Framework Status Full Implementation of Defence Fiscal Framework - A Draft Defence Fiscal Framework has been compiled None Red2 11 Number of adverse audit findings 03 Green 12 Approved DOD policy regulating resource unit costing status Policy implementation A Chapter has been included in the Policy on Budget P reparation in the DOD Red4 2. The Defence Fiscal Framework status is subject to the approval of the Defence Review by Parliament. 3. The DOD did not receive any adverse audit findings, it received 2 audit qualifications on moveable tangible capital assets and intangible capital assets. In the FY2014/15, this indicator will change to ‘Number of audit findings’ 4.The policy on Budget Preparation in the DOD is still being reviewed by the Policy Advisors. 27

Summary of Quarterly Performance Targets SN Performance Indicator Planned Annual Target 1st Quarter Target as per APP Apr – Jun 13 1st Quarter Actual output – validated 2nd Quarter Target as per APP Jul – Sep 13 2nd Quarter Actual output – validated 3rd Quarter Target as per APP Oct – Dec 13 3rd Quarter Actual output – validated 4th Quarter Target as per APP Jan – Mar 14 4th Quarter Actual output – validated Overall progress of indicator ACQUISITION SERVICES (DEFENCE MATÉRIEL) 13 Strategy on Defence Industry 2nd and 3rd Draft SA Defence Industry Strategy - Awaiting guidance from the Defence Industry Council chaired by Deputy Minister of DOD&MV None The drafting process has gone through several stages of stakeholder consultation Approved SA Defence Industry Strategy Green 14 Percentage (%) Budget allocation for the Renewal of the DOD Main Equipment5 30% 10% as at 01 April 2013 10% Red6 15 Defence Intangible Capital Asset (ICA) Policy Continuous management and monitoring of ICA Policy completed and in DOD approval process. Disclosure took place in AFS FY2012/13 Disclosure took place in AFS FY2012/13 Policy completed and in DOD approval process Amber 16 Percentage Budget allocation for Technology Development7 13% as at 01 April 2013 5. In relation to the total DOD Vote. 6. In the FY2014/15 this indicator will change to ‘Percentage Armament Acquisition commitments approved’ 7. In relation to the Armament Acquisition Budget. In the FY2014/15 this indicator will change to ‘Technology Development commitments approved’ 28

Summary of Quarterly Performance Targets SN Performance Indicator Planned Annual Target 1st Quarter Target as per APP Apr – Jun 13 1st Quarter Actual output – validated 2nd Quarter Target as per APP Jul – Sep 13 2nd Quarter Actual output – validated 3rd Quarter Target as per APP Oct – Dec 13 3rd Quarter Actual output – validated 4th Quarter Target as per APP Jan – Mar 14 4th Quarter Actual output – validated Overall progress of indicator DEFENCE SUPPLY CHAIN INTEGRATION 17 White Paper on Defence Industry Status Approved Chapter on White Paper on Defence Industry Status - The developed White Paper on Defence Industry has been included as a Chapter in the Defence Review that will inform the Defence Industry Strategy and the National Defence Industry Council None The White Paper on Defence Industry was submitted to the Defence Review Committee as Chapter 15 of the Defence Review Green DEFENCE INTERNATIONAL AFFAIRS 18 DOD Foreign Relations Strategy Status8 Monitor Implementation9 Monitor Implementation Monitoring the implementation of DOD Foreign Relations strategy will commence once the policy is approved & strategy developed Red 8. Policy should be developed by DIA & Strategy by Defence Foreign Relations. In the FY2014/15 this indicator will change to ‘DOD Foreign Relations Policy status’ . 9. Order: Policy – strategy – implementation - monitoring 29

Summary of Quarterly Performance Targets SN Performance Indicator Planned Annual Target 1st Quarter Target as per APP Apr – Jun 13 1st Quarter Actual output – validated 2nd Quarter Target as per APP Jul – Sep 13 2nd Quarter Actual output – validated 3rd Quarter Target as per APP Oct – Dec 13 3rd Quarter Actual output – validated 4th Quarter Target as per APP Jan – Mar 14 4th Quarter Actual output – validated Overall progress of indicator DEFENCE INTERNATIONAL AFFAIRS 19 Percentage (%) deployments including training Exercises, where applicable, supported with appropriate legal instruments 100% 100%. The Division was part of a DOD delegation that entered into negotiations with the United Nations (UN) to discuss amendments to the United Nations Organisation Stabilisation Mission in the Democratic Republic of Congo (MONUSCO) MOU that would legalise the deployment of the SANDF Infantry Battalion to the newly formed UN Intervention Brigade in the Eastern DRC. 100% achieved Green 30

Summary of Quarterly Performance Targets SN Performance Indicator Planned Annual Target 1st Quarter Target as per APP Apr – Jun 13 1st Quarter Actual output – validated 2nd Quarter Target as per APP Jul – Sep 13 2nd Quarter Actual output – validated 3rd Quarter Target as per APP Oct – Dec 13 3rd Quarter Actual output – validated 4th Quarter Target as per APP Jan – Mar 14 4th Quarter Actual output – validated Overall progress of indicator HUMAN RESOURCE SUPPORT SERVICES 20 Percentage (%) DOD skills audit completion status 75% 35% 75% Completed 55% 100% Completed 65% Green 21 Percentage of PSAP disciplinary cases finalised within 90 days in the DOD 80% - 66% 42% 29% Red10 22 Percentage (%) Compliance with planned staffing of funded posts 90% (69 585) 113% 112% 111% 10. 25 of 87 cases were finalised during the quarter. Underperformance is due to non adherence to timelines by Chairpersons and Departmental Representatives under the command of Services/Divisions. Restructuring of the component to create a pool of Chairpersons and Departmental Representatives under CHR’s control to manage the finalisation of cases. Process to be implemented during FY2014/15. In the FY2014/15 this indicator will change to ‘Percentage PSAP misconduct and incapacity cases finalised within 90 days in the DOD’ 31

Summary of Quarterly Performance Targets SN Performance Indicator Planned Annual Target 1st Quarter Target as per APP Apr – Jun 13 1st Quarter Actual output – validated 2nd Quarter Target as per APP Jul – Sep 13 2nd Quarter Actual output – validated 3rd Quarter Target as per APP Oct – Dec 13 3rd Quarter Actual output – validated 4th Quarter Target as per APP Jan – Mar 14 4th Quarter Actual output – validated Overall progress of indicator HUMAN RESOURCE SUPPORT SERVICES 23 Percentage (%) achievement of signed and submitted Performance Agreements by DOD SMS members 100% 75% 68% 83% - 88% Red11 24 Number of PSAP attending training programmes 2 587 443 287 319 2587 Green 11. Not all SMS members complied with the target date. The HR Division is also investigating the implementation of a Short Message System (SMS) system to remind members. 32

Summary of Quarterly Performance Targets SN Performance Indicator Planned Annual Target 1st Quarter Target as per APP Apr – Jun 13 1st Quarter Actual output – validated 2nd Quarter Target as per APP Jul – Sep 13 2nd Quarter Actual output – validated 3rd Quarter Target as per APP Oct – Dec 13 3rd Quarter Actual output – validated 4th Quarter Target as per APP Jan – Mar 14 4th Quarter Actual output – validated Overall progress of indicator HUMAN RESOURCE SUPPORT SERVICES (CONT) 25 Defence Force Service Commission Status Impact assessment review - DFSC Secretariat structure approved DFSC Secretariat structure is approved. DFSC Secretariat fully functional Impact Assessment Reviewed Green 26 HR Development Strategy and Plan Status Strategy Piloted Strategy 25% Piloted Strategy 50% Piloted Strategy 75%) Piloted (Strategy Piloted phase completed in 1st Quarter) Strategy 75% Piloted Strategy 100% piloted. Strategy 100% Piloted 27 Armed Forces Day Policy Framework Monitor Implementation Draft finalised and was work shopped with Services Command Councils Draft finalised and was work- shopped with Services Command Councils for inputs. Draft not yet approved Red12 12. Awaiting final written inputs from Services and Divisions. Process of submission of inputs is being closely monitored.to be achieved at the end of FY2013/14. In the FY2014/15 this indicator will change to ’Armed Forces Day Policy Framework status’ 33

Summary of Quarterly Performance Targets SN Performance Indicator Planned Annual Target 1st Quarter Target as per APP Apr – Jun 13 1st Quarter Actual output – validated 2nd Quarter Target as per APP Jul – Sep 13 2nd Quarter Actual output – validated 3rd Quarter Target as per APP Oct – Dec 13 3rd Quarter Actual output – validated 4th Quarter Target as per APP Jan – Mar 14 4th Quarter Actual output – validated Overall progress of indicator HUMAN RESOURCE SUPPORT SERVICES (CONT) 28 DOD HR Retention Strategy Status Monitor Implementation Refining of Draft Strategy Refining of draft Strategy Strategy not yet approved Red13 29 DOD HR Performance Management System Status 1 Comprehensive system implemented and reviewed - An instruction has been issued for FY13/14 cycle 1 comprehensive system implemented. Pay progression implemented. Finalising the Performance Incentive process. Green 13. Underperformance is due to the lack of capacity. Task will resume once capacity has been restored. Alternative capacity options are being considered in this regard for FY2014/15. CHR requested that this indicator be removed from the FY2014/15 APP. 34

Summary of Quarterly Performance Targets SN Performance Indicator Planned Annual Target 1st Quarter Target as per APP Apr – Jun 13 1st Quarter Actual output – validated 2nd Quarter Target as per APP Jul – Sep 13 2nd Quarter Actual output – validated 3rd Quarter Target as per APP Oct – Dec 13 3rd Quarter Actual output – validated 4th Quarter Target as per APP Jan – Mar 14 4th Quarter Actual output – validated Overall progress of indicator HUMAN RESOURCE SUPPORT SERVICES (CONT) 30 Percentage (%) Compliance with Annual Submission and Recording of SMS Financial Disclosures 100% 75% 85% 90% - 92% Red14 31 Percentage (%) Collective Grievance and Disputes Resolved 80% 50% 29% 27% Red15 14. Not all SMS members complied with the target date. The HR Division is also investigating the implementation of a Short Message System (SMS) to remind members. 15. 4 of 15 registered collective grievances were finalised during the quarter. The complexity of some of the issues tabled before the DOD Bargaining Chamber results in delayed finalisation of grievances. The indicator Targets will change in the FY2014/15. 35

Summary of Quarterly Performance Targets SN Performance Indicator Planned Annual Target 1st Quarter Target as per APP Apr – Jun 13 1st Quarter Actual output – validated 2nd Quarter Target as per APP Jul – Sep 13 2nd Quarter Actual output – validated 3rd Quarter Target as per APP Oct – Dec 13 3rd Quarter Actual output – validated 4th Quarter Target as per APP Jan – Mar 14 4th Quarter Actual output – validated Overall progress of indicator LEGAL SERVICES 32 Percentage (%) Litigation Settled in favour of the DOD 60% - 26% 23 cases received and 06 cases finalized in favour of DOD. 0.04% 27 Cases received and 01 case finalized in favour of the DOD 25% out of 27 cases received only 14 outstanding and 13 were finalised in favour of DOD. Red16 As far as progress and intervention is concerned, the outcome is dependent on decisions by the courts / arbitrators. In the FY2014/15 this indicator will change to ‘Percentage litigation attended to in the best interest of the DOD (Settlements and Wins)’. The Annual Target is changed to 50%’ 36

SANDF 37

Overview of the SANDF The outputs, performance measures and targets of the Enablement and Service Delivery Programmes (Programmes 2 - 8) reflect the core outputs of the SANDF. These programmes are as follows: 2 - Force Employment 3 - Landward Defence 4 - Air Defence 5 - Maritime Defence 6 - Military Health Support 7 - Defence Intelligence 8 - General Support Take Note: All “classified” targets have been omitted from this presentation as some of the information provided to describe the reasons for deviation are sensitive. 38

Force Employment CONFIDENTIAL 39 Serial No Performance Indicator Annual Target 1st Quarter Target as per APP 1st Quarter Actual output – validated 2nd Quarter Target as per APP 2nd Quarter Actual output – validated 3rd Quarter Target as per APP 3rd Quarter Actual output – validated 4th Quarter Target as per APP 4th Quarter Actual output – validated Overall progress Indicator (Red/Green) Regional Security  1 D1_I10 Percentage Compliance with number of ordered commitments (external operations) 4 3    3  (100%) 100% 75% Support to the People  2 D1_I02 Number of landward sub-units deployed on border safeguarding 13 D1_I10 Percentage compliance with number of authorised safety and security support ordered commitments 100 D1_I10 Percentage compliance with number of authorised disaster aid and disaster relief ordered commitments 5 D1_I10 Percentage compliance with authorised search and rescue ordered commitments Defence Capability Management  6 P3_I02 Number of planned joint, interdepartmental and multinational military exercises conducted per year 9  4 0  Note. “Under performance” indicated in red is as a result of circumstances beyond the control of CJ Ops and are indicated in red due to the compliance requirements from National Treasury. No remedial action can be taken and this aspect was also brought to the attention of National Treasury during the Mid-Year reporting on the achievement of the ENE Performance Indicators. CONFIDENTIAL 39

Landward Defence CONFIDENTIAL 40 Serial No Performance Indicator Annual Target 1st Quarter Target as per APP 1st Quarter Actual output – validated 2nd Quarter Target as per APP 2nd Quarter Actual output – validated 3rd Quarter Target as per APP 3rd Quarter Actual output – validated 4th Quarter Target as per APP 4th Quarter Actual output – validated Overall progress Indicator (Red/Green) Output 2: General Training Capability (General Training for Regular and Reserve Members)   1 P2_I06 Compliance with DOD formal training targets (number of learners on planned courses) 5 722 2 380 1 592 1 526 996 1 326 1 1625 490   3 750 (100%) (41.59%) 27.82% (26.67%) 17.41%  (23.17%) 20.35%  (8.56%) 5. Targets were amended due to NT budget cuts. CONFIDENTIAL 40

Air Defence CONFIDENTIAL 41 Serial No Performance Indicator Annual Target 1st Quarter Target as per APP 1st Quarter Actual output – validated 2nd Quarter Target as per APP 2nd Quarter Actual output – validated 3rd Quarter Target as per APP 3rd Quarter Actual output – validated 4th Quarter Target as per APP 4th Quarter Actual output – validated Overall progress Indicator (Red/Green) Output 2: Training Capability (General Education, Training and Development of personnel) 1 P2_I06 Compliance with DOD formal training targets (number of learners on planned courses) 2 786 498 582 1 102 507 527 6046  659    1 693 (100%) (17.88%) 20.89% (39.55%) 18.2% (18.92%)  21.68% (23.65%) 6. Less learners attended courses as targets of some courses were adjusted after the submission of the APP due to changes in the curriculum. CONFIDENTIAL 41

Maritime Defence CONFIDENTIAL 42 Serial No Performance Indicator Annual Target 1st Quarter Target as per APP 1st Quarter Actual output – validated 2nd Quarter Target as per APP 2nd Quarter Actual output – validated 3rd Quarter Target as per APP 3rd Quarter Actual output – validated 4th Quarter Target as per APP 4th Quarter Actual output – validated Overall progress Indicator (Red/Green) Output 2: Maritime Human Resources and Training Capability (General Education, Training and Development of Navy personnel 1 P2_I06 Compliance with DOD formal training targets (number of learners on planned courses) 2 984 1 059 449 738 1 053 820 371  367    1 873  (100%) (35.49%) 15.05% (24.73%) 35.29%  (27.48%) 12.43%  (12.30%) CONFIDENTIAL 42

Military Health Support Serial No Performance Indicator Annual Target 1st Quarter Target as per APP 1st Quarter Actual output – validated 2nd Quarter Target as per APP 2nd Quarter Actual output – validated 3rd Quarter Target as per APP 3rd Quarter Actual output – validated 4th Quarter Target as per APP 4th Quarter Actual output – validated Overall progress Indicator (Red/Green) Output 1: Military Health Support Capability  1 P2_I10 Number of health care activities per year 2 140 550 535 139 613 367 535 137 612 998  547 239     1 773 604 2 R2_I04 Percentage availability of medical stock at all times 50 70 54 71 45 72  35  63 Output 2: Military Health Training Capability (Military Health Training Capability) 3 P2_I06 Compliance with DOD formal training targets (number of learners on planned courses) 3 238 427 628 1 000  428 2 067  1 956 3 695  (100%) (13%) 19%  31% 64%  (61%) CONFIDENTIAL 43

Defence Intelligence CONFIDENTIAL 44 Serial No Performance Indicator Annual Target 1st Quarter Target as per APP 1st Quarter Actual output – validated 2nd Quarter Target as per APP 2nd Quarter Actual output – validated 3rd Quarter Target as per APP 3rd Quarter Actual output – validated 4th Quarter Target as per APP 4th Quarter Actual output – validated Overall progress Indicator (Red/Green) Output 2: Operations   1 P2_I11 Number of defence intelligence products 324 91 134  95 150  51  379 2 P2_I11 Number of vetting decisions taken in accordance with requirements 4 000 1 400 1 935 1 200 1 537  800 1 185  600  4 657 CONFIDENTIAL 44

Joint Logistic Services Serial No Performance Indicator Annual Target 1st Quarter Target as per APP 1st Quarter Actual output – validated 2nd Quarter Target as per APP 2nd Quarter Actual output – validated 3rd Quarter Target as per APP 3rd Quarter Actual output – validated 4th Quarter Target as per APP 4th Quarter Actual output – validated Overall progress Indicator (Red/Green) Joint Logistic Services   Appropriate, Ready and Sustained Materiél 1 Codification of Items of Supply. R2_I03 Percentage compliance with DOD codification requirements 80 20 19.07  26.52 13.4 7  58.99 2 Disposal of Materiel. R2_I09 Percentage requests approved for disposal versus requests received 75 18.75 12.5 15 168   43.5 3 Ammunition Disposal. R2_I12 Percentage ammunition disposed versus the number of disposed tonnes planned 600 200 250  100 550  (100%) (33%) 33% 42%  (17%) 7. Only 3229 items codified out of 6000 items planned for the quarter. 8. Only three requests were received out of a planned requests for the quarter. CONFIDENTIAL 45

Joint Logistic Services (Cont’d) Serial No Performance Indicator Annual Target 1st Quarter Target as per APP 1st Quarter Actual output – validated 2nd Quarter Target as per APP 2nd Quarter Actual output – validated 3rd Quarter Target as per APP 3rd Quarter Actual output – validated 4th Quarter Target as per APP 4th Quarter Actual output – validated Overall progress Indicator (Red/Green) Appropriate, Ready and Sustained Facilities   4 Capital Works.R2_I07 Percentage of expenditure in accordance with facilities plan 100 25 82.39   8.719  91.1 5 Payment of Accommodation. R2_I07 Percentage of expenditure in accordance with facilities plan (payment of leases) 17.8  19.07 31.8410  68.71  6 Payment of Accommodation. R2_I07 Percentage of expenditure in accordance with facilities plan (municipal Services) 20.9 19.67  24.2611  64.83 7 Payment of Accommodation. R2_I07 Percentage of expenditure in accordance with facilities plan (accommodation charges) 25   75 9. Although the quarterly target was not achieved, due to the slow rate of progress by NDPW to execute the DOD registered projects, it is foreseen that the annual target will be achieved. 10. Although better payment as planned for the quarter, only 69% planned for the year has been paid against a planned total of 75%. 11. 64.83% of the planned yearly total has already been paid, but due to the slow processing of invoices by NDPW, the Log Div struggles to spent the allocated funds as planned. CONFIDENTIAL 46

Joint Logistic Services (Cont’d) Serial No Performance Indicator Annual Target 1st Quarter Target as per APP 1st Quarter Actual output – validated 2nd Quarter Target as per APP 2nd Quarter Actual output – validated 3rd Quarter Target as per APP 3rd Quarter Actual output – validated 4th Quarter Target as per APP 4th Quarter Actual output – validated Overall progress Indicator (Red/Green) Appropriate, Ready and Sustained Movement and Logistic Services   8 Logistics Training: (logistics, ammo hospitality training, facility, fire fighting and codification). P2_I06 Percentage compliance with DOD formal training targets (number of learners on planned courses) 3 488 872 632 640  85812 2 130  (100%) (25%) 18% 18%  24.5%  9 Procurement Service. R2_I11 Percentage procurement requests fully completed within 60 days. 100 25 8.33 42.3  25   95.63 12. The reason for deviation in performance is due to the planned annual target being based on historical data and not on the requirements of Services and Divisions, which were only submitted after the compilation of DLRM AMP for FY2013/14. CONFIDENTIAL 47

CMIS CONFIDENTIAL 48 Serial No Performance Indicator Annual Target 1st Quarter Target as per APP 1st Quarter Actual output – validated 2nd Quarter Target as per APP 2nd Quarter Actual output – validated 3rd Quarter Target as per APP 3rd Quarter Actual output – validated 4th Quarter Target as per APP 4th Quarter Actual output – validated Overall progress Indicator (Red/Green) COMMAND AND MANAGEMENT INFORMATION SYSTEMS   Integrated Information and Communication Systems (ICS) solutions and enablers for the DOD 1 R3_I01 Percentage compliance with the DOD ICT portfolios of the Defence Enterprise Information Systems Master Plan 100 5 4.83 15  9.45 25 39.61 55  54 Supported DOD ICS and Joint Command and Control Product System Capability 2 R3_I02 Percentage availability of the Defence Information and Communications Infrastructure (DICI) at all times 98  98 CONFIDENTIAL 48

Military Police CONFIDENTIAL 49 Serial No Performance Indicator Annual Target 1st Quarter Target as per APP 1st Quarter Actual output – validated 2nd Quarter Target as per APP 2nd Quarter Actual output – validated 3rd Quarter Target as per APP 3rd Quarter Actual output – validated 4th Quarter Target as per APP 4th Quarter Actual output – validated Overall progress Indicator (Red/Green) Military Police   1 P1_I09 Percentage criminal cases finalised 10 -18 -19  186 50  2 P1_I01 Projected number of deliberate crime prevention operations 248 62 60  41 88 189  CONFIDENTIAL 49

Thank you! 50