1 DEPARTMENT OF DEFENCE Strategic Business Plan of the Department of Defence for 2007 (MTEF 2007/08 – 2009/10)

2 AIM To present the Department of Defence’s Strategic Plan for FY2007 (MTEF 2007/08 - FY2009/10) and 2007/08 MTEF budget (Vote 20) to the National Council of Provinces Select Committee on Security and Constitutional Affairs

3 SCOPE Introduction Government priorities Cluster objectives DOD Strategic objectives Strategic Issues DOD’s Intervention to address strategic issues Lay out of the Plan Overview of the each Chapter Overview of outputs, risks an mitigating factors for the Programmes 2007/08 MTEF budget (Vote 20).

4 INTRODUCTION Comprehensive consultation in developing the Strategic Plan was made The presentation on Chapters 1 – 3 highlights the strategic thrust of the Strategic Plan Chapters 4 – 12 give an overview of outputs, risks as well as mitigating factors The DOD is intensifying its interventions on continous quality promotion and improvement through the phased implementation of GEJIMA, LEGADIMA, Project Loquacious and Balanced Score Card At the centre of the DOD’s decisive intervention, is impact assessment of the organisation in terms of the government transformation imperatives, which incorporate accelerated service delivery, gender mainstreaming and equity

5 GOVERNMENT PRIORITIES Consolidation of African Agenda Halving unemployment and poverty by 2014 Human Resource Development of the country Fighting crime and corruption Priorities as emanating from the 2007 Programme of Action. Medium Term review for the mandate period of the main achievements in the first half as well as challenges for the second half of the mandate period Identification of major strategic issues to be considered during the annual review of the Medium Term Strategic Framework(MTSF).

6 CLUSTER OBJECTIVES Accelerated Service Delivery improvement as well as widening access to economic participation and investments within the defence-related industry The DOD will strengthen its role in respect of policy matters pertaining to peace and security in the Region and the Continent regarding border line patrol. Joint crime combating operations Rural safety Continuation to rejuvenate SANDF

7 CLUSTER OBJECTIVES (Cont) Creating a stable South Africa through Peace Mission Deployments in contribution to the peace within the continent (African Agenda) through the following: -Contribution towards the outcomes of Government’s New Partnership for Africa’s Development (NEPAD), the African Renaissance objectives for economic growth and development and its pre-condition for peace and security - Ensure alignment between the African Peer Review Mechanism (APRM) and Government Plan of Action

8 DOD STRATEGIC OBJECTIVES The execution of Defence commitments as ordered and funded by Government. The provision of contingency-ready and cost-effective defence capabilities as specified by approved policy. Sound management of the Department. The administration of the DOD within the prescripts of the law, regulatory framework and government policy. The assurance of sustainability, continuous improvement of output quality and the reduction of the cost of DOD processes as well as the accounting thereof. The assurance of the continuous quality improvement of people in the DOD. The assurance of quality command and management information in the DOD. The assurance of continuous quality improvement of DOD equipment and facilities.

9 STRATEGIC ISSUES Rightsizing of the DOD Defence Capabilities DOD infrastructure Alignment of General Regulations with Defence Act, 2002 Review of the White Paper on Defence and Defence Update Improvement of Health Status of the SANDF members Defence Related Industry Improved Asset Protection within the DOD DOD shared value system developed to improve the morale, effectiveness and efficiency Information Systems Alignment of Core and Support processes with PFMA imperatives Reserves ETD Management

10 DOD’s INTERVENTION TO ADDRESS STRATEGIC ISSUES The SBP seeks to address some of the strategic issues and interventions so as to contribute to the Government priorities through the following: - Intensify engagements with regional counterparts in Africa by focussing on the security-related objectives of the AU and NEPAD - Ensure that the Defence Update is presented to the Parliament and implementation takes place during the MTEF period

11 DOD’s INTERVENTION TO ADDRESS STRATEGIC ISSUES (Cont) The designing of the SADC Mutual Defence Pact, the African Standby Force and the establishment of Continental and Regional “Early Warning Centres’ are in process The continuation of the participation in peace support operations in the DRC, Burundi, Ethiopia/Eritrea and the Sudan The deployment of more than 3000 members in external peace support missions

12 DOD’s INTERVENTION TO ADDRESS STRATEGIC ISSUES (Cont) The implementation of Human Resource Strategy 2010 and the review thereof as a decisive intervention in youth empowerment and scarce skills development in line with the objectives of ASGISA The delivery of weapons such as the Gripen, four frigates, two submarines and Hawk trainers have been introduced into the SANDF A new facility for the training of fighter pilots has been opened at Makhado Air Force Base Conceptualisation and implementation of the Work’s Regiment

13 LAYOUT OF PLAN Chapter One: Strategic Profile and Objectives Chapter Two: Defence Strategy Chapter Three: Organisational Management Chapter Four: Administration (Programme 1) Chapter Five: Force Employment (Programme 8) Chapter Six: Landward Defence (Programme 2) Chapter Seven: Air Defence (Programme 3) Chapter Eight: Maritime Defence (Programme 4) Chapter Nine: Military Health Service (Programme 5) Chapter Ten: Defence Intelligence (Programme 6) Chapter Eleven: Joint Support (Programme 7) Chapter Twelve: Special Defence Account (Programme 9)

14 CHAPTER ONE Strategic Profile and Objectives The following were confirmed: –Vision (Effective Defence for a democratic SA) –Mission –DOD Mandate –Departmental values –Minister of Defence’s Guidelines

15 CHAPTER ONE Strategic Profile and Objectives Minister of Defence’s Objectives –Defend and protect the sovereignty and territorial integrity of the RSA. –Contributing to global security. –Ensuring good governance and accountability. –Ensuring continuous improvement of Defence capabilities. –Implement the “One-force Concept”

16 CHAPTER ONE Strategic Profile and Objectives Minister of Defence’s Strategic Priorities Destruction of obsolete materièl which endangers life Plans on capital renewal for landward defence to be in place by FY2007/08 The full integration of the Strategic Defence Package equipment, including the integration of the A400M strategic lift capability into the SANDF, must be midway by the MTEF period. Sufficient operational capacity for peace missions must be ensured The implementation of HR Strategy 2010, which is up for review with effect from 2007, must be visibly nearing completion and must encompass the mainstreaming of gender

17 CHAPTER ONE Strategic Profile and Objectives Minister of Defence’s Strategic Priorities The transformation of Armscor and the strategic review and positioning of the defence related industries must be completed within the MTEF period Operational planning and materiel requirements must be centralised in and directed by CJ Ops for greater efficiency and effectiveness Qualitative improvement in the internal functioning of the DOD in respect of interaction with the Legislature, Executive and the Judiciary

18 CHAPTER ONE Strategic Profile and Objectives Minister of Defence’s Strategic Guidelines Enhance and maintain comprehensive defence capabilities through the following: - Development of the DOD organisational capability to carry out its tasks - Advanced training and the integration of the SDPs and the forthcoming A400M strategic lift - Ensuring effective civil oversight - The smooth running of the new military justice system

19 CHAPTER ONE Strategic Profile and Objectives Minister of Defence’s Strategic Guidelines Enhance and maintain comprehensive defence Capabilities (Cont) - Effective logistic lines - Moving away from silos towards integrated planning and materiel acquisition, and - continuation with rejuvenation

20 CHAPTER ONE Strategic Profile and Objectives Minister of Defence’s Strategic Guidelines Promotion of peace, security and stability in the region and in the continent through: - participating and contributing to AU Peace and Security structures which must be carefully planned to achieve strategic position - working towards the implementation of a Common African Defence and Security Policy (CADSP)

21 CHAPTER ONE Strategic Profile and Objectives Minister of Defence’s Strategic Guidelines Promotion of peace, security and stability in the region and in the continent through (Cont): - assisting and participating in post-conflict reconstruction activities in Angola, DRC, Burundi, Sudan and the Ivory Coast, as well as any other areas as my be determined by the Government - Participating and contributing to SADC defence and security structures

22 CHAPTER ONE Strategic Profile and Objectives Minister of Defence’s Strategic Guidelines Promotion of peace, security and stability in the region and in the continent through (Cont): - The setting up of a maritime cluster within Government involving a number of other Departments such as Intelligence, Environment and Fisheries, Transport, & DTI to ensure proper coordination

23 CHAPTER ONE Strategic Profile and Objectives Minister of Defence’s Strategic Guidelines Promotion of peace, security and stability in the region and in the continent through (Cont): -Alignment with collective security in the region and in the continent -the preparation and support of military capabilities required for promoting security in the region and the continent to meet the ongoing peace support operations

24 CHAPTER ONE Strategic Profile and Objectives Minister of Defence’s Strategic Guidelines To support the people of South Africa through: - participation and assisting in any national event such as the management of disaster, visiting dignitaries, security at national events such as the FIFA World Cup, etc - supporting of the police whenever the need arises - engaging in and assist communities with capacity in social development initiatives where necessary and appropriate

25 CHAPTER ONE Strategic Profile and Objectives Alignment with Cabinet priorities The DOD Strategic Plan makes provision for meeting its own objectives and contributing towards the achievement of the priorities of the clusters to which it belongs The specific responsibilities of DOD located within its clusters include the following: - Strategic international agreements pertaining to peace and security in the Region and the Continent - Boarderline patrol, joint crime combating operations rural safety, and Foreign Military Assistance, and coordination of security during national events

26 CHAPTER ONE Strategic Profile and Objectives Alignment with Cabinet priorities The specific responsibilities of DOD located within its clusters include the following: -Institutionalising of Batho Pele principles and contributing to the skills revolution agenda -Integration and location of policy initiatives that relate to Defence Industry within the broader Government wide National Industrial participation Policy and Strategy

27 CHAPTER ONE Strategic Profile and Objectives Alignment with Cabinet priorities Intensification of the Military Skills Development Programme, as well as training to military personnel exiting military (MEM) in contribution towards ASGISA and fighting unemployment The identification and development of scarce skills in line with JIPSA Providing support the people of South Africa through support to national events, and assisting SAPS in emergency cases

28 CHAPTER ONE Strategic Profile and Objectives Strategic Focus and Objectives Strategic issues Defence outputs Functions of the Secretary for Defence and the Chief of the SANDF(overview provided in the next slide) Budget Allocation Risk management plan Affordability and sustainability

29 CHAPTER ONE Strategic Profile and Objectives Functions of the Secretary for Defence - Head and Accounting Officer of the Department of Defence -Principal adviser on Defence policy matters -Ensures effective and efficient civil control of the DOD -Monitor compliance with policies and directions issued by the Minister to the SANDF -Ensure discipline of, administrative control over and management of employees,including effective utilisation and training Functions of the Chief of the SANDF -Principal adviser to the Minister on military,operational and administrative matters -Responsible for formulating and issuing military policy and doctrine -Responsible for the execution of approved programmes of the budget for the Defence -Responsible for the employment of of Defence Force as required -Responsible for the development of a non-racial, non sexist and non- discriminatory culture within the Defence Force -Effective administration,utilisation as well as education, training and development of all Defence Force members.

30 CHAPTER TWO Defence Strategy Defence Strategy. Defence strategy is derived from the White Paper on Defence 1996 and the Defence Review 1998 and the Defence Review update 2006 Military Strategic Objectives –Enhance and maintain comprehensive Defence capabilities. –Promote peace, security and stability in the region and the continent. –Supporting the People of South Africa.

31 CHAPTER TWO Defence Strategy (Cont) Support Strategies –Reserve Force strategy. –Human Resources Strategy 2010 (to be reviewed during –Defence Information Management Strategy. –Joint Logistics Strategy. –Capital Renewal Strategy.

32 CHAPTER THREE Organisational Management Planned macro personnel strength –FY2007/08  (including MSD) –FY2008/09  (including MSD) Force Structure and Design –Not affordable at present –The authorised posts according to the HR 2010 and the South African Defence Review 1998 stand at , however the Defence Upupdate,2006 which is to be presented within the 2007/08 financial year for cabinet approval,envisages a viable force Design of 85,375 ( including MSDS). Note: Increase in planned personnel strength due to MSDS: Exit mechanism is being used to bring the numbers down The following is the new DOD structure emerged from the restructuring of DOD

33 DOD NEW STRUCTURE

34 CHAPTER FOUR Administration Outputs Defence Policy Strategic direction through: - Corporate plans - Resource allocation - Reports and ministerial services

35 CHAPTER FOUR Administration (Cont) Risks IT-based internal control systems for finance, human resources and procurement Time Frame for the implementation of the integrated FMS Mitigating Factors Minor enhancement to the current IT systems in line with the moratorium placed by the National Treasury on the replacement of the current system Conduct project Loquacious, Lekgadima and Balance Score Card to address the alignment

36 CHAPTER FIVE Force Employment Outputs. Operations, Joint and Multinational Exercises Risks –Capacity, Budget and Resources to meet any increases in commitments. Mitigating Action. Reprioritisation. (Previously identified risks have been mitigated through provision of additional funding.) Services to be Scaled Down, Suspended or Abolished –Continued gradual withdrawal from routine internal deployments.

37 CHAPTER SIX – Landward Defence Outputs. Landward Defence Capabilities that are aligned to the core- growth one- force concept Risks –Prime Mission Equipment obsolescence and serviceability. –Combat readiness is affected by health status, exponential personnel growth and insufficient funding. Thus, deployment of troops for internal and external purposes and also joint and multinational exercises may be affected negatively. –Continued deterioration of facilities. Mitigating Actions –Reprioritisation of the projects in the SCAMP within the Landward Defence Capabilities [This intervention is applicable to all the Programmes] –Rejuvenation through MSDS –Mobility Exit Mechanism –Some additional funding provided Services to be Scaled Down, Suspended or Abolished –Continued closing down of Area Territorial Reserve units. –Other capabilities maintained at minimum levels.

38 CHAPTER SEVEN – Air Defence Outputs. Air Defence Capabilities. Risks –Operating budget insufficient to meet commitments and required maintenance. –Deterioration of main equipment, weapons systems and ground support infrastructure. –Retention of suitably qualified and experienced personnel. Mitigating Actions. Re-prioritisation and implementation of Transformation Plan, Medium-term Strategy and HR Short-term Plan. Services to be scaled down, suspended or abolished –Flying hours.

39 CHAPTER EIGHT Maritime Defence Outputs. Maritime Defence Capabilities. Risks –Spares and support contracts for SDP vessels. –Deterioration of facilities and equipment due to under- funding. –Availability and development of personnel for new equipment. Mitigating Actions –Reprioritisation –Introduction of MSDS Services to be scaled down, suspended or abolished –Certain stores depots and maintenance units will be closed down. These functions will be incorporated in existing units.

40 CHAPTER NINE Military Health Service Outputs. Military Health Services and Capabilities. Risks –Deterioration of hospitals, facilities and equipment. –The high rate of medical inflation. –High workload of health professionals. Mitigating Action. –Incentives introduced –Reprioritisation Services to be scaled down, suspended or abolished. None.

41 CHAPTER TEN – Defence Intelligence Outputs. Defence Intelligence and Counter-Intelligence Capabilities. Risks –Inability to collect digital information and imagery efficiently –Deteriorating conditions of Defence Intelligence HQ building. –Retention of experienced personnel. Mitigating Action. Re-prioritisation Services to be scaled down, suspended or abolished. None.

42 CHAPTER ELEVEN – Joint Support Outputs. Joint Support Capabilities (Log, HR, ICT, MP, J Trg, Service Corps). Risks –Disposal of ammunition. –Maintenance and repair of facilities, vehicles and equipment. –Retention of skills and experience levels. –Lack of suitable Enterprise Application System for the DOD. Mitigating Action. –Re-prioritisation. –Additional funding (limited). Services to be scaled down, suspended or abolished. Reduction in level of ICT services provided.

43 CHAPTER TWELVE – Special Defence Account Outputs. Special Defence activities and purchases. Risks –Inability of industry to realise 100% cash flow. Mitigating Action. Joint initiative with Department of Public Enterprises. –Review acquisition policy to support local defence related industry. –Develop defence industry sector strategy. –Increase investment into retention and maintenance of strategic industrial technology base Services to be scaled down, suspended or abolished. None.

Defence Department of Defence 44 QUESTIONS??