FIVE YEAR REVIEW OF THE DEFENCE SECTOR Peter Daniels JUNE 2009

LEGISLATION ENACTED IN THE DEFENCE SECTOR OVERSIGHT MEETINGS JSCD AUDITOR-GENERAL REPORTS ENTITIES REPORTING TO THE MINISTRY ISSUES FOR CONSIDERATION BY THE 4 TH PARLIAMENT SCOPE

LEGISLATION ENACTED IN THE DEFENCE SECTOR 1.Defence Special Account Amendment Act, No. 18 of Armaments Corporation of South Africa, Limited Amendment Act, No. 16 of Prohibition of Mercenary Activities and Regulation of Certain Activities in Country of Armed Conflict Act (PMAA), No. 27 of Prohibition or Restriction of Certain Conventional Weapons Act, No. 18 of The Castle Management Act Repeal Bill [B9 – 2008] 6.Defence Amendment Bill [B ] 7.National Conventional Arms Control Amendment Act, No. 73 of 2008

ISSUES TO BE CONSIDERED BY 4 TH PARLIAMENT LEGISLATION Prohibition of Mercenary Activities and Regulation of Certain Activities in Country of Armed Conflict Act, No. 27 of 2006 Promulgation of NCACC regulations Number of applications Prohibition or Restriction of Certain Conventional Weapons Act, No 18 of 2008 How conventions integrated into Defence policies and regulations and soldiers made aware & taught. National Conventional Arms Control Amendment Act, No. 73 of 2008 Monitor drafting of regulations, and monitor its implementation

OVERSIGHT MEETINGS: JSCD Joint Standing Committee on Defence Established in terms of Interim Constitution (Act 200 of 1993) Section 228 (3) “shall be competent to investigate and make recommendations regarding the budget, functioning, organisation, armaments, policy, morale and state of preparedness of the National Defence Force and to perform such other functions relating to parliamentary supervision of the Force as may be prescribed by law.” Number of meetings Joint meetings

JSCD Challenges Clarity on role of JSCD and PCOD Attendance – NCOP members Presidency presentation – employment of SANDF Issues Military veterans – SANMVA Operational readiness Accidents and their causes

JSCD: ISSUES MILITARY VETERANS Public Hearings Algerian Study tour Proposed Vietnamese study Tour Issues Pensions and grants Access to medical care Organisation of military veterans (SANMVA) Training Skills development and employment Housing Exhumation of graves Repatriation of bodies of veterans

JSCD: ISSUES OPERATIONAL READINESS Joint meeting PCOD Combat readiness of the SANDF Extent SANDF can maintain and sustain its core capabilities to fulfill its mandate Need to provide, manage, prepare and deploy defence capabilities commensurate with needs of SA. Four Arms of Service each role to play Combat readiness of the SA Defence related industry To maintain combat readiness, SANDF must have access to a local defence industry that is capable of developing, supplying and maintaining systems and products necessary for them to perform their tasks

JSCD: ISSUES ACCIDENTS 9 soldiers killed SA Army Combat Training Center 12 October 2007 Joint Oversight visit Try establish what happened and what could be done to prevent such incidents occurring in future Require feedback regarding Board of Inquiry and steps taken to prevent a re-occurrence Helicopter accident in May 2009 – follow up

AUDITOR-GENERAL REPORTS DEPARTMENT OF DEFENCE Qualified reports for the 5 years under review – 6 consecutive Issues raised more than twice Capital assets Employee benefits provision Accruals Lease commitments Receivables Land and buildings Gifts, donations and sponsorships NCACC matters Information Systems Audit

AUDITOR-GENERAL REPORTS SPECIAL DEFENCE ACCOUNT Issues Sensitive nature of certain transactions Claim against the state Lack of an approved Compliance Programme Not investing surplus to the credit of the SDA Control activities Classification of the SDA

AUDITOR-GENERAL REPORTS NCACC ASSURANCE REPORTS In terms of Sections 4 and 12 of NCACC Act Issues Access to 3 rd party information Clarity re delegations to DCAC Absence of a Constitution Inspectorate took time to be in place Investigation of sale of small arms ammunition Submission of reports to Parliament Annual Report in 1 st quarter – submitted well after deadline

Restructuring – reclassification of entity Successes BEE Spending Simonstown Dockyard Armscor Business Armscor quality Acquisition benchmarking study ENTITIES REPORTING TO MINISTRIES ARMSCOR

ENTITIES REPORTING TO MINISTRIES ARMSCOR Challenges Funding Transformation Defence Industrial Participation Suspension Grievance against the CEO BEE targets Workforce Vistula Project

ENTITIES REPORTING TO MINISTRIES CASTLE CONTROL BOARD Manage Castle on behalf of MOD Successes Net profit 2007/08 of R1.8m Support communities to become self-sustainable Co-hosting of Cape Town Military Tattoo 5% increase in income generated from visitors 8% increase to 9 million visitors Withdrawal of Castle Management Repeal Bill

ENTITIES REPORTING TO MINISTRIES CASTLE CONTROL BOARD Challenges Non-compliance with Treasury regulations Tax exemption application Appointment of CEO and CFO Identify risks associated with Castle Draft a Strategic Business Plan Staff compliment stretched Het Bakhuys

ENTITY REPORTING THROUGH MINISTRY NATIONAL CONVENTIONAL ARMS CONTROL COMMITTEE Consists of Ministers and Deputy Ministers Directorate Conventional Arms Control administer NCACC Hosts by DOD NCACC Amendment Act – importance for other legislation

ENTITY REPORTING THROUGH MINISTRY NATIONAL CONVENTIONAL ARMS CONTROL COMMITTEE Challenges Role of Cabinet Ministers Active involvement of Cabinet ministers regarding decision-making Regulations – PMARCAICAC Act no 27 of 2006 Timely submission of reports – Parliament and United Nations Implementation of administrative fines – dependent on to- be-established regulations