BY PROF E.L. VAN HARTE: CHAIRPERSON OF THE DFSC 21 October 2015 DEFENCE FORCE SERVICE COMMISSION (DFSC) BRIEFING TO THE PORTFOLIO COMMITTEE ON DEFENCE & MILITARY VETERANS (PC DMV) BY PROF E.L. VAN HARTE: CHAIRPERSON OF THE DFSC 21 October 2015

AIM The objective of the DFSC’s presentation is to enlighten the Portfolio Committee on Defence and Military Veterans on the “… measures in place to deal with areas of underperformance and any other resource (including personnel) challenges”.

SCOPE Introduction Areas of Underperformance Additional Challenges Mandate Strategic Issues Budget Additional Challenges Conclusion

INTRODUCTION The DFSC was requested by the PC DMV to present on areas of it’s underperformance. Whilst reporting on underperformance it would undermine the Commission’s work if we fail to highlight areas of its achievements. For purposes of this presentation both underperformance and achievements will be reflected on. The areas and reasons for underperformance are substantively dealt with in this presentation. Not mentioned, yet very prominent amongst the Commission’s achievement are the facts that the DFSC visited SANDF bases and units and interacted with more than 7000 soldiers. Also significant was the ability of the Commission to submit all required quarterly reports including the annual report for FY2014/15.

THE MANDATE OF THE DFSC The DFSC is Mandated to:   On an annual basis, make recommendations to the Minister on improvement of salaries and service benefits of members. Make recommendations to the Minister on policies in respect of conditions of service; Promote measures and set standards to ensure the effective and efficient implementation of policies on conditions of service within the Defence Force, and make recommendations to the Minister in this regard.

REPORT ON SALARIES AND SERVICE BENEFITS TO MEMBERS AREAS OF UNDERPERFORMANCE   A recommendation on the Delinking of Salary from Rank could not be tabled.

REPORT ON SALARIES AND SERVICE BENEFITS TO MEMBERS (cont) REASONS FOR UNDERPERFORMANCE The initial model was presented to the Council on Defence (2013). Before the recommendations could be tabled to the Office of the MODMV, the presented model was found to be unaffordable. The costing of the model in January 2013 amounted to Rbn1.45 in addition to the HR expenditure, excluding pension contributions and annual bonuses.

REPORT ON SALARIES AND SERVICE BENEFITS TO MEMBERS (cont) REASONS FOR UNDERPERFORMANCE (cont) The research capacity in the DFSC Structure is inadequate and inappropriately graded for the level of work that is required to be done.

REPORT ON SALARIES AND SERVICE BENEFITS TO MEMBERS (cont) CORRECTIVE ACTIONS In view of the initial model that was found to be unaffordable, the Commission refocused its research further to Southern African Development Countries (SADC). So far three countries (Namibia, Botswana and Tanzania) have been visited and it was established that not all of these countries have similar practices.

REPORT ON SALARIES AND SERVICE BENEFITS TO MEMBERS (cont) CORRECTIVE ACTIONS (cont) The Commission acknowledges the complexity of delinking salary from rank. In addressing this, the DFSC plans to visit more SADC countries to be able to develop substantive recommendations on this matter. Hopefully two more countries will be visited during the current FY15/16. The DFSC is in the process of reviewing the level of the DFSC Secretariat structure with the relevant authorities in the Department of Defence (DOD). The outcome of the review process will be submitted to MODMV for approval.

REPORT ON SALARIES AND SERVICE BENEFITS TO MEMBERS (cont) ACHIEVEMENTS  The Policy on Awarding of Death Benefits to Beneficiaries of members/employees who pass away while deployed in Internal or External Operations for which no international compensation is paid, was published in the Government Gazette No 37195, of 22 August 2014. Death Benefits/Group Life Scheme recommendations were submitted to the Office of the Minister of Defence and Military Veterans (MODMV) on 31 March 2015.  

REPORT ON SALARIES AND SERVICE BENEFITS TO MEMBERS (cont) ACHIEVEMENTS (cont)  The submission of recommendations on the Cost of Living Adjustment (COLA) for FY 2015/16 for SANDF members from the rank of Private to Colonel was forwarded to the MODMV on 31 March 2015.

REPORT ON SALARIES AND SERVICE BENEFITS TO MEMBERS (cont) ACHIEVEMENTS (cont)  Further research has been conducted with relevant stakeholders such as the South African Revenue Service, South African National Defence Force (SANDF), Human Resource (HR) Division and the Department of Public Service and Administration on Group Life Schemes/Death Benefits. Comparative analysis in this regard is at an advanced stage.

REPORT ON SALARIES AND SERVICE BENEFITS TO MEMBERS (cont) ACHIEVEMENTS (cont) The members of the DFSC Pay and Service Benefits Committee were part of the external consultative group to the Botswana Defence Force and Tanzanian Peoples Defence Force focussed on Pay and Service Benefits with specific reference to the Delinking of Salary from Rank. Reports on the findings subsequent to these external visits were submitted to the MODMV.

RECOMMENDATIONS ON POLICIES IN RESPECT OF CONDITIONS OF SERVICE AREAS OF UNDERPERFORMANCE Making recommendations in respect of Conditions of Service. Reviewing of Policies.

RECOMMENDATIONS ON POLICIES IN RESPECT OF CONDITIONS OF SERVICE (cont) REASONS FOR UNDERPERFORMANCE The research capacity in the DFSC Structure is inadequate and inappropriately graded for the level of research required. Conflicting schedules prevented the committee from honouring meetings.

RECOMMENDATIONS ON POLICIES IN RESPECT OF CONDITIONS OF SERVICE (cont) CORRECTIVE ACTIONS The DFSC identified common problem areas in bases/units visited, from which consolidated reports were submitted. Identified Service specific findings (e.g. SAAF – flying hours). This will be further investigated through in-depth research to facilitate quality recommendations. The Commission is in the process of reviewing the level of the DFSC Secretariat with the relevant structures in the DOD, in order to submit for approval to the relevant authority. An additional commissioner was appointed to the Policy Review Committee.

RECOMMENDATIONS ON POLICIES IN RESPECT OF CONDITIONS OF SERVICE (cont) ACHIEVEMENTS Base visits undertaken by the Commission exposed the Conditions of Service of the SANDF members. Ten policies to be reviewed were identified in November 2014 emanating from the findings of consultative visits i.e. uniforms, tools of trade, career management and so forth.

PROMOTION OF MEASURES AND SETTING OF STANDARDS ACHIEVEMENTS  A report emanating from the findings from consultative visits to military ETD bases and units, based on common concerns raised during these visits with regard to Conditions of Service, was tabled to the Office of the MODMV on 17 March 2015. The Consultative visits to Tanzania Peoples Defence Force and Botswana Defence Force have assisted the DFSC to identify standards and measures for further investigation.

STRATEGIC ISSUES AREAS OF UNDERPERFORMANCE Strategic Issues. REASONS FOR UNDERPERFORMANCE The bureaucratic processes affected the human resource capacity for both the commissioners and the DFSC secretariat. CORRECTIVE ACTION The Commission requested the MODMV for the appointment of three (3) additional commissioners who assumed their duties on 1 May 2015. The process of staffing in the Secretariat is unfolding.

STRATEGIC ISSUES (cont) ACHIEVEMENTS Appointment of three additional commissioners. Gazetting of DFSC Regulations no: 38359, dated 19 December 2014. Consultations with strategic stakeholders, i.e. Public Service Commission, Department of Public Works.

BUDGET AREAS OF UNDERPERFORMANCE Under expenditure of Budget. REASONS FOR UNDERPERFORMANCE Requirement for DFSC to comply and depend on DOD protracted procurement and budgetary processes. Protracted DOD procurement processes delayed the payment of invoices from suppliers’ of goods and services. The roll-over effect for the payment for visits during FY2014/15 was to the amount of R594 606 for FY2015/16. The protracted DOD staffing processes contribute to the under spending of the HR Budget. Planned foreign visits were postponed due to diplomatic relations and political sensitivities.

BUDGET (cont) CORRECTIVE ACTION Staffing of vacant funded posts. Granting of financial delegation to the Commission. The DFSC plans to engage in processes that will enable it to function autonomously within the defined prescripts.

ADDITIONAL DFSC CHALLENGES LOGISTICS Information Technology (IT) Challenges. Protracted DOD IT procurement processes inclusive of access, interruptions and slow speed of the internet contributed to the delay in the production and submission of reports.

ADDITIONAL DFSC CHALLENGES (cont) LOGISTICS (cont) Facilities. Limited office space for the DFSC and its co-occupation of the facility with the South African Military Health Service Head Quarters, cannot accommodate the newly appointed Commissioners and the envisaged expansion of the HR structure.

CONCLUSION The DFSC supports the recommendations promulgated by the Defence Review. The significance of the implementation of Milestone 1 ( Arresting the Decline), will considerably impact on the recommendations to improve the conditions of service of the soldiers.

Comments and Questions Thank You Comments and Questions