DOD (Def Sec & SANDF) 2nd Quarterly Performance Report for FY2012/13 Presentation to the Portfolio Committee on Defence and Military Veterans (PCD&MV) 27 November 2012

2nd Quarterly Performance Report for the FY2012/13 AIM Information Brief to the PCD&MV on the Department of Defence (Def Sec & SANDF) 2nd Quarterly Performance Report for the FY2012/13 RESTRICTED

SCOPE Legislative Requirements Overview of the Defense Secretariat Overview of the SANDF Summary of Quarterly Performance Targets (Appendix A) RESTRICTED

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. RESTRICTED

DEFENCE SECRETERIAT RESTRICTED 5

OVERVIEW OF THE DEFENCE SECRETERIAT 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 RESTRICTED 6

Summary of Quarterly Performance Targets (Appendix A) 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) RESTRICTED 7

Summary of Quarterly Performance Targets SN Performance Indicator Annual Target 1st Quarter Target as per APP Apr – Jun 12 1st Quarter Actual output – validated 2nd Quarter Target as per APP Jul – Sep 12 2nd Quarter Actual output – validated 3rd Quarter Target as per APP Oct – Dec 12 3rd Quarter Actual output – validated 4th Quarter Target as per APP Jan – Mar 13 4th Quarter Actual output – validated Overall progress of indicator GOVERNMENT INFORMATION TECHNOLOGY OFFICER (GITO) 1 Percentage (%) compliance with the six DOD ICT Portfolios of the Defence Enterprise Information Systems Master Plan. 1 100% 5% 1.57% 15% 8.86% 25% 55% Red 2 Promulgated Department of Defence Information Strategy. 2 Monitor & Review Monitor Monitored Green 3 Promulgated Information and Communicating System Policy Development plan. 1 SANDF (CMIS) is responsible for Indicator and target and will report accordingly. 2 A promulgated Department of Defence Information Strategy must be in place to guide the department and the Department of Defence Information and Communication Technology Strategy to enable Information to realise as a strategic resource. Continuous scanning of the external environment is done to determine the validity of the Department of Defence Information Strategy and will indicate when it should be revised and tabled for promulgation. RESTRICTED 8

Summary of Quarterly Performance Targets SN Performance Indicator Annual Target 1st Quarter Target as per APP Apr – Jun 12 1st Quarter Actual output – validated 2nd Quarter Target as per APP Jul – Sep 12 2nd Quarter Actual output – validated 3rd Quarter Target as per APP Oct – Dec 12 3rd Quarter Actual output – validated 4th Quarter Target as per APP Jan – Mar 13 4th Quarter Actual output – validated Overall progress of indicator DEFENCE POLICY, STRATEGY AND PLANNING (DPSP) 4 Co-ordinated Defence engagement in clusters Cluster related submissions by defined target dates Cluster related submissions in this quarter by defined targets dates Cluster related activities were successfully done by defined target dates Green 5 Support and Resource the Defence Review Process HR requirements are met at 100% according to client’s demand HR requirements have been met at 100% according to client’s demand. Nil 6 % Departmental policies authorised for promulgation 70% 50% 100% 7 Tabling of DOD (Def Sec & SANDF) APP in Parliament in line with the national prescripts on planning Tabled by February 2013 Develop DOD draft APP Draft Def Sec APP for FY2013/14 developed Submit 1st draft DOD APP to NT and AG 1st draft Def Sec APP for 2013 was submitted to NT and Presidency on 31 August 2012 in line with national prescripts on planning. Submit 2nd draft DOD APP to NT and AG Table DOD APP in Parliament RESTRICTED 9

Summary of Quarterly Performance Targets SN Performance Indicator Annual Target 1st Quarter Target as per APP Apr – Jun 12 1st Quarter Actual output – validated 2nd Quarter Target as per APP Jul – Sep 12 2nd Quarter Actual output – validated 3rd Quarter Target as per APP Oct – Dec 12 3rd Quarter Actual output – validated 4th Quarter Target as per APP Jan – Mar 13 4th Quarter Actual output – validated Overall progress of indicator DEFENCE POLICY, STRATEGY AND PLANNING (DPSP) (cont) 8 DOD enterprise risk management maturity level status Level 4 - Green 9 Tabling of the DOD Annual Report in Parliament in line with national prescripts Tabled by 31 August 2012 Submit by 15 August The DOD Annual Report for FY2011/12 was tabled in Parliament on 28 September 2012 in line with national prescripts. 10 DOD research capability status Organisational structure design investigation conducted Strategic analysis and business process concluded Not achieved Finalisation of the investigation report Submitted for approval Approved structure Red RESTRICTED 10

Summary of Quarterly Performance Targets SN Performance Indicator Annual Target 1st Quarter Target as per APP Apr – Jun 12 1st Quarter Actual output – validated 2nd Quarter Target as per APP Jul – Sep 12 2nd Quarter Actual output – validated 3rd Quarter Target as per APP Oct – Dec 12 3rd Quarter Actual output – validated 4th Quarter Target as per APP Jan – Mar 13 4th Quarter Actual output – validated Overall progress of indicator FINANCIAL SERVICES 11 Number of adverse audit findings Green 12 Approved DOD policy regulating resource unit costing Approved Policy Conceptualisation Development of Draft Strategy A chapter has been included in the Budget Preparations Policy which is due for promulgation in December 2012. Stakeholder consultation Policy Approved 13 Defence fiscal Framework status Review of Defence fiscal framework in line with Defence strategy - Defence fiscal framework reviewed in line with Defence strategy Amber 14 Percentage (%) payments in accordance with invoices/claims/ charges etc 100% 70% 80% RESTRICTED 11

Summary of Quarterly Performance Targets SN Performance Indicator Annual Target 1st Quarter Target as per APP Apr – Jun 12 1st Quarter Actual output – validated 2nd Quarter Target as per APP Jul – Sep 12 2nd Quarter Actual output – validated 3rd Quarter Target as per APP Oct – Dec 12 3rd Quarter Actual output – validated 4th Quarter Target as per APP Jan – Mar 13 4th Quarter Actual output – validated Overall progress of indicator ACQUISITION SERVICES (DEFENCE MATÉRIEL) 15 Strategy of Defence Industry Status Approved White Paper on Defence Industry - Waiting for the approval of the Defence Review and guidance from the Chairperson of the SA Defence Industry Council Approved Amber 16 Percentage (%) budget allocation received for renewal of the DOD main equipment in relation to the total DOD vote 30% 3 9,49% as at 01 Apr 12 4 9,49% as at 01 Apr 12 30% Red 17 Percentage (%) DOD expenditure on research and development (in relation to the total DOD vote) 25% 5 14% as on 01 Apr 12 6 14% as on 01 Apr 12 25% 3 The White Paper on the South African Defence Related Industries, December 1999, states inter alia that one of the initiatives launched to sustain strategic technologies and capabilities was to increase the capital equipment replacement to approximately 30% by 2001. 4 Comparison between DOD Budget Vote and Def Mat Div (SCAMP: Capital SDA+SDP) Budget Vote – Not including SDA rollovers and maintenance & support at Services & Divisions. 5 Based on international best practice and benched marked with BRICSA countries. 6 Comparison between Def Mat Div (SCAMP: Capital SDA+SDP) Budget Vote and Technology Development Budget Vote. RESTRICTED 12

Summary of Quarterly Performance Targets SN Performance Indicator Annual Target 1st Quarter Target as per APP Apr – Jun 12 1st Quarter Actual output – validated 2nd Quarter Target as per APP Jul – Sep 12 2nd Quarter Actual output – validated 3rd Quarter Target as per APP Oct – Dec 12 3rd Quarter Actual output – validated 4th Quarter Target as per APP Jan – Mar 13 4th Quarter Actual output – validated Overall progress of indicator ACQUISITION SERVICES (DEFENCE MATÉRIEL) (cont) 18 Approval of Defence Intangible Capital Assets (ICA) policy Approval, ratification and roll out of Defence ICA Management policy Discuss policy requirements with relevant stakeholders Discussed policy requirements with relevant stakeholders. Developed Draft Policy and awaiting inputs from SA Army and CMIS. Obtain first draft inputs for the policy Busy with 3rd Draft Policy Obtain second draft inputs for the policy Consolidate all inputs and prepare for policy approval process Green DEFENCE SUPPLY CHAIN INTEGRATION 19 White Paper on Defence Industry Status Approved White Paper on Defence Industry Finalised draft and approval process Draft White Paper on Defence Industry Discussion Document Consultation with stakeholders Development phase 20 Percentage reduction in non compliance with supply chain regulatory framework 4% 3 1% 3 The annual target of 4% contains development of a policy on GRC, improvement on supply chain monitoring systems, and successful mitigation of risks. It is believed that non-compliance will be reduced by 4% should all these mechanisms are put in place RESTRICTED 13

Summary of Quarterly Performance Targets SN Performance Indicator Annual Target 1st Quarter Target as per APP Apr – Jun 12 1st Quarter Actual output – validated 2nd Quarter Target as per APP Jul – Sep 12 2nd Quarter Actual output – validated 3rd Quarter Target as per APP Oct – Dec 12 3rd Quarter Actual output – validated 4th Quarter Target as per APP Jan – Mar 13 4th Quarter Actual output – validated Overall progress of indicator DEFENCE INTERNATIONAL AFFAIRS 21 Percentage (%) Compliance with AU and UN Requirements Rules and Regulations for peace missions 100% - Green 22 Percentage (%) MOU Compliance with agreed force level for deployment in UN Missions 85% 23 Percentage (%) compliance with outputs of diplomatic missions in line with SA foreign policy 75% 24 DOD Foreign Relations strategy status Policy Approved Submit policy to stakeholders for inputs. Waiting for appropriate slot to brief the Command Bodies of DOD. Present Policy to senior officers for advice. Not Achieved Present Policy to senior officers for approval. Policy approved. Amber 25 % of positions filled against allocated quota for international institutions 20% RESTRICTED 14

Summary of Quarterly Performance Targets SN Performance Indicator Annual Target 1st Quarter Target as per APP Apr – Jun 12 1st Quarter Actual output – validated 2nd Quarter Target as per APP Jul – Sep 12 2nd Quarter Actual output – validated 3rd Quarter Target as per APP Oct – Dec 12 3rd Quarter Actual output – validated 4th Quarter Target as per APP Jan – Mar 13 4th Quarter Actual output – validated Overall progress of indicator HUMAN RESOURCE SUPPORT SERVICES 26 Percentage of PSAP Disciplinary Cases Finalised Within 120 Days in the DOD. 40% - Green 27 Number of National Youth Service Programme (NYSP) participants trained per year. 2000 28 Number of the MSDS members in the system per year 6673 29 Defence Force Service Commission Status Fully Functional and recommendations submitted to the MOD&MV Fully Functional Established offices in SAMHS. Office infrastructure is now 90% complete. Amber 30 Human Resource Development Strategy and Plan status. Strategy Piloted Piloting of Strategy Piloting of Strategy 25% completed. Piloting of Strategy 50% completed. RESTRICTED 15

Summary of Quarterly Performance Targets SN Performance Indicator Annual Target 1st Quarter Target as per APP Apr – Jun 12 1st Quarter Actual output – validated 2nd Quarter Target as per APP Jul – Sep 12 2nd Quarter Actual output – validated 3rd Quarter Target as per APP Oct – Dec 12 3rd Quarter Actual output – validated 4th Quarter Target as per APP Jan – Mar 13 4th Quarter Actual output – validated Overall progress of indicator HUMAN RESOURCE SUPPORT SERVICES (cont) 31 Armed Forces Day Policy Framework Approved Conduct Research Research conducted Develop Draft Developed a draft framework. Consult Draft Document Obtain Approval Green 32 Percentage of DOD collective grievances and disputes resolved. 80% - 33 DOD HR Retention Strategy status. Strategy Approved 34 DOD HR Performance Management System status. 1 new comprehensive system implemented and monitored 1 new comprehensive system implemented 35 Percentage compliance with annual submission and recording of SMS financial disclosures. 95% 36 Level of morale within the Def Sec. ≥3 RESTRICTED 16

Summary of Quarterly Performance Targets SN Performance Indicator Annual Target 1st Quarter Target as per APP Apr – Jun 12 1st Quarter Actual output – validated 2nd Quarter Target as per APP Jul – Sep 12 2nd Quarter Actual output – validated 3rd Quarter Target as per APP Oct – Dec 12 3rd Quarter Actual output – validated 4th Quarter Target as per APP Jan – Mar 13 4th Quarter Actual output – validated Overall progress of indicator LEGAL SERVICES 37 % litigation settled in favour of the DOD. 100% - Green OFFICE OF THE MILITARY OMBUD 38 Office of the Military Ombud status Establishment of the Military Ombud office Established the Military Ombud office Office Established RESTRICTED 17

SANDF CONFIDENTIAL 18

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 programme 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 It must be noted that although the quarterly report serves to account for performance against the unclassified SANDF APP, some of the information provided to describe the reasons for deviation are sensitive. CONFIDENTIAL 18

SANDF STRATEGIC OUTCOMES AND OUTPUTS Performance Indicator Prepare Mission-ready Capabilities Performance Indicator Target 12/13 Responsible Quarter Achievement YTD Q1 Q2 Q3 Q4 Output 1: Prepare forces as stipulated in the Joint Force Employment Requirement % compliance with Joint Force Employment requirement Information classified Administration Activity 1.1: Enhance defence capabilities by complying with the approved SANDF Force Design and Structure % compliance with the approved Force Design % compliance with the approved Force Structure Activity 1.2: Ensure Combat-ready Defence Capabilities Broader DOD Health/Fitness Status Positive trend Surgeon General Negative Trend of deployable status on concurrent health assessments (CHA) % of approved Capital Works Plan Projects completed as scheduled per year 100 Chief Logistics % compliance with DOD Refurbishment Programme annual schedule 65 Activity 1.3: Ensure Matériel to satisfy the requirements of the SANDF Overarching Logistic Strategy Approved 15 20 Activity 1.4: Ensure required level of Strategic Reserves Level of strategic reserves (ammunition) Force Employment CONFIDENTIAL 18

SANDF STRATEGIC OUTCOMES AND OUTPUTS Execute Ordered Commitments Performance Indicator Target 12/13 Responsible Quarter Achievement YTD Q1 Q2 Q3 Q4 Output 2.1: Border Safeguarding Number of landward sub-units deployed 11 Force Employment Output 2.2: Regional Security % compliance with force levels for external operations 96 99.5 76.3 87.9 % compliance with serviceability of equipment for external operations 67 89 % of the value of claims reimbursed by the UN/AU 752 92.58 72.41 82.50 Activity 1: Employ the SANDF Number of internal operations 4 Number of external operations New indicator for Force Employment Q1 = Rm280,169 (last quarter of FY11/12) Q2 = Rm280,253 (first quarter of FY12/13 CONFIDENTIAL 21

SANDF STRATEGIC OUTCOMES AND OUTPUTS Provide Defence and Strategic Direction Performance Indicator Target 12/13 Responsible Quarter Achievement YTD Q1 Q2 Q3 Q4 Activity 1: Administer the DOD (Direction) Total number of Defence attaché offices 40 DFR 39 CONFIDENTIAL 22

SANDF STRATEGIC OUTCOMES AND OUTPUTS Compliance with the Regulatory Framework Performance Indicator Target 12/13 Responsible Quarter Achievement YTD Q1 Q2 Q3 Q4 Activity 1: Administer the DOD (Control) % increase in military court docket readiness rate 14 Administration 100 % reduction in military court case backlogs 15 20 18 % of disciplinary cases in the DOD finalised within 120 days as per SANDF Order 40 32 36 34 % litigation settled in favour of the DOD 60 12.5 13.8 Number of adverse audit findings (DOD) FMD to report CONFIDENTIAL 23

SANDF STRATEGIC OUTCOMES AND OUTPUTS Strategic Outputs and Annual Targets for MTSF Outcome 2 SANDF Outputs Performance Indicator Target 12/13 Responsible Quarter Achievement YTD Q1 Q2 Q3 Q4 Mission-ready defence capabilities Trend of broader SANDF health/fitness status Positive Surgeon General Negative Ordered defence commitments Trend of deployable status on concurrent health assessments Number of internal operations Targets depend on resource allocation Force Employment 4 CONFIDENTIAL 24

SANDF STRATEGIC OUTCOMES AND OUTPUTS Strategic Outputs and Annual Targets for MTSF Outcome 3 SANDF Outputs Performance Indicator Target 12/13 Responsible Quarter Achievement YTD Q1 Q2 Q3 Q4 Mission-ready defence capabilities % compliance with the joint force employment requirement Information classified Administration Information classified % compliance with the approved force design % compliance with the approved force structure Ordered Defence Commitments Number of internal operations 4 Force Employment CONFIDENTIAL 25

SANDF STRATEGIC OUTCOMES AND OUTPUTS Outputs and Annual Targets for MTSF Outcome 5 SANDF Outputs Performance Indicator Target 12/13 Responsible Quarter Achievement YTD Q1 Q2 Q3 Q4 Military direction % compliance with DOD training targets (non- combat professional military development) 100 Administration 99 87 93 % compliance with DOD training targets (re-skilling) 72 % compliance with DOD training targets (National Youth Service) 48.65 CONFIDENTIAL 26

SANDF STRATEGIC OUTCOMES AND OUTPUTS Strategic Outputs and Annual Targets for MTSF Outcome 11 SANDF Outputs Performance Indicator Target 12/13 Responsible Quarter Achievement YTD Q1 Q2 Q3 Q4 Defence direction Approved force design Approved Administration In progress Approved force structure % compliance with the joint force employment requirement Information classified Total number of defence attaché offices 40 DFR 39 Ordered defence commitments % compliance with force levels for external operations 96 Force Employment 99.5 76.3 87.9 % compliance with serviceability of equipment for external operations 67 92.58 72.41 82.5 % of the value of claims reimbursed by the UN/AU 75 82.50 Mission-ready defence capabilities % compliance with the approved force design % compliance with the approved force structure DOD Morale Level of DOD morale Positive Ongoing CONFIDENTIAL 25

SANDF STRATEGIC OUTCOMES AND OUTPUTS Strategic Outputs and Annual Targets for MTSF Outcome 12 SANDF Outputs Performance Indicator Target 12/13 Responsible Quarter Achievement YTD Q1 Q2 Q3 Q4 Defence in compliance with Regulatory Framework Number of adverse audit findings (DOD) Administration FMD to report CONFIDENTIAL 28

THANK YOU RESTRICTED 29