1. JSCPD PRESENTATION
16 SEPTEMBER 2003

2. AIM
The aim of this presentation is to familiarise the committee with the items to be included in Defence’s request in the adjustments budget.

3. SCOPE Background Current Expenditure Adjustment Budget
Unforeseeable and Unavoidable
Self Financing
Rollover Claim
Virements
Other
Challenges for Defence
Conclusion

4. BACKGROUND DPBEC Unforeseeable and Unavoidable
Funding of shortfalls in the Department

5. CURRENT EXPENDITURE

6. CURRENT EXPENDITURE
The operating and personnel expenditure (Programmes 1 to 8) as at 31 August 2003 are as follows:
Ser No
Description RM a b 1
Vote
11 206,417 2
Paid
4 413, 649 3
% Paid
39,38%

7. CURRENT EXPENDITURE
The Special Defence Account expenditure (Programme 9) as at 31 August 2003 is as follows
Ser No
Description RM a b 1.
Vote
8 843,661 2.
Amount Transferred
5 563,228 3.
Paid
4 263,596 4.
% Paid
48,21%

8. ADJUSTMENTS BUDGET Unforeseeable and UnavoidableRM
DRC: MONUC II Phase III . South Africa forms part of a United Nation’s (UN) peace mission in the eastern part of the Democratic Republic of the Congo. Phase III provides for the disarmament, demobilisation, reintegration, repatriation, and resettlement programme.
291,369

9. ADJUSTMENTS BUDGET Unforeseeable and Unavoidable
Burundi: AMIB. South Africa, together with Ethiopia and Mozambique are deployed in Burundi as part of a African Union force to
(1) facilitate the cease fire
agreement;
(2) create a stable defence and security situation;
(3) ensure that UN conditions prevail; and
(4) contribute to achieving the desired political end-state. RM
458,031

10. ADJUSTMENTS BUDGET Unforeseeable and Unavoidable
DRC (Bunia): OP SUNRAY. South
Africa forms part of a UN mandated Interim Emergency Multinational Force established to contribute to the stabilisation of the security and humanitarian situation in Bunia to
(1) ensure the protection of the airport;
(2) ensure protection of refugees in the camps in Bunia; and
(3) participate in the protection of the population in the town. RM
21,956

11. ADJUSTMENTS BUDGET Unforeseeable and Unavoidable
Liberia: OP MONTEGO. South
Africa forms part of a UN mandated Multinational Stabilisation Force established to contribute to the stabilisation of the security and humanitarian situation RM
16,296
Algeria: OP INKUNZI. South
Africa participated in providing humanitarian and technical assistance in the preservation of life, health and property resulting from the earthquake on 22 May 2003.
2,736

12. ADJUSTMENTS BUDGET Unforeseeable and Unavoidable
vi. Local Elections. The Independent Electoral Commission has requested Defence to assist in the security arrangements for the registrations for the upcoming elections. RM
11,962

13. ADJUSTMENTS BUDGET Self FinancingRM
1. SDA- Sale of Defence equipment for 2002/03
202,111
2. SAAF - Reimbursement for self-financing: Boeing 707s
4,119

14. ADJUSTMENTS BUDGET Roll Over ClaimRM
1. Tent accommodation - Weather Havens.
6,453
2. Change existing transport park shed into a quartermaster store at Wonderboom Military Base (Capital Expenditure).
1,817
Total
8,270

15. ADJUSTMENTS BUDGET Virements
Increase of the Personnel Budget with the amount of RM 65,6.

16. ADJUSTMENTS BUDGET OtherRM
0,5% salary increase.
22,9
Personnel downsizing/ rightsizing.
24,9
iii. Surplus on SDP to be returned to NT. The funds voted for Strategic Defence Packages are earmarked and consequently unutilized funds must be returned to the National Treasury. The favourable rate exchange has resulted in a saving of RM680. Unspent funds from previous years (RM360) and delays in delivery schedules (RM460) account for the remainder.
1 500,0

17. ADJUSTMENTS BUDGET OtherRM
iv. Transfer to Armscor. Over the last few years Armscor has experienced an increase in its acquisition workload without a comparative increase in the transfer payment from Defence. Consequently it is unable to retain its human resource capability and renew its asset base and infrastructure.
15,0

18. CHALLENGES FOR DEFENCE
To become affordable and sustainable.
The perturbing health and age profile of the soldiers. This significantly affects the ability to deploy, sustain and rotate soldiers during peace missions.
Retention of personnel with critical skills eg pilots, combat officers and personnel in the technical environment.
Funding, training and development of the Reserve Forces.

19. CHALLENGES FOR DEFENCE
Main equipment obsolescence, especially in the SA Army. The Army does not currently share in the strategic arms procurement programme.
The maintenance and repair of Defence infrastructure and facilities.
Support to NEPAD initiatives, including the number of expected external deployments executing peace missions as well as the importance to increase DOD representation through the placement of military attaches, especially in Africa.
The improvement of the present low combat readiness levels of the majority of the conventional capabilities.

20. CHALLENGES FOR DEFENCE
Criminality within Defence and resultant thefts and losses.
The integration of information systems and the development of integrated information systems, which support the requirements of the PFMA. This has resulted in our FY 2002/03 financial statements being qualified.
The adverse effect of inflation on the Defence Budget.