Department of Defence FY2011/12 3 rd Def Sec Quarter Report

1. Department of DefenceFY2011/12 3rd Def Sec Quarter Report Presentation to the Portfolio Committee on Defence and Military Veterans (MOD&MV) by the Defence Secretariat (Def Sec) 13 March 2012

2. AIM Briefing on the Department of Defence Performance (FY2011/12 3rd Def Sec Quarter Report) RESTRICTED

3. SCOPE • Introduction • Def Sec Programme Overview • Significant Achievements • Obstacles/challenges • Def Sec contribution to: • MOD&MV Priorities • Def Sec Strategy Map (Outputs) • Trendable Performance Indicators: • Estimate of National Expenditure (ENE) • Job Creation • Report on Risk Mitigation • Conclusion RESTRICTED

4. INTRODUCTION 4 RESTRICTED

5. DEF SEC PROGRAMME OVERVIEW 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 * Reported under Sub-Programme Policy and Planning 5 RESTRICTED

6. GITO • Significant Achievements: • Supported the development of the DOD Information and Communication Technology Strategy which was approved by the PDSC on 24 October 2011. • Obstacles/challenges: • Newly identified additional Information and Communication Systems Governance, Risk and Compliance functions. • Additional Promotion of Access to Information Act administrative tasks and functions for which the DEISM Division is not structured for. RESTRICTED

7. DPSP • Significant Achievements: • DOD Annual Report FY2010/11 was successfully tabled as required by law in Parliament and presented by the Sec Def to the PCD&MV on 18 October 2011. • The Def Sec 2nd Quarterly Performance Report was approved and submitted to the Executive Authority, National Treasury and the Auditor-General in compliance to NT Regulations and guidlines. • Consolidation and institutionalisation of the Enterprise Risk Management (ERM) in the DOD as evidenced by the NT rating of the DOD ERM maturity level to 4, beyond the FY2011/12 target of 3. • Co-ordination and consolidation of the DOD input to the revised White Paper on South Africa’s Participation in International Peace Missions for submission to the C SANDF for consideration. RESTRICTED

8. DPSP • Significant Achievements (cont): • Provided key personnel to the Defence Review Technical Secretariat and the Defence Review Resource Groups. • The Regulations to the National Conventional Arms Control Amendment Act, (Act 73 of 2008) have been submitted to the State Law Advisor for certification. • Prepared and submitted the National Conventional Arms Control Committee’s (NCACC) 3rd quarterly report as prescribed by the NCAC Act, (Act 41 of 2002) to the NCACC. • Obstacles/challenges: • The lack of office accommodation, limited financial resources and a slow staffing process remains a challenge. RESTRICTED

9. FINANCIAL SERVICES • Significant Achievements: • The conclusion and consolidation of the post Audit Action Plan to rectify all adverse findings of the Auditor–General. • Institutionalisation of Operation Clean Audit. • Obstacles/challenges: • Slow responses to audit enquiries by some Services and Divisions remains one of the key impediments to creating a smooth auditing process management environment. RESTRICTED

10. DEFENCE MATÉRIEL • Significant Achievements: • The Operational Test and Evaluation (OT&E) of Project GUARDIAN (Ground-Based Air Defence System) was successfully completed and some of the equipment was successfully deployed as part of Exercise NDLOVU. • 4 x Gripen fighter aircraft arrived in Cape Town harbour on 07 October 2011, bringing the total delivered in South Africa to 22. The final four aircraft will remain in Sweden after acceptance at the factory to enable 2 Squadron to participate in an international exercise with Sweden, Hungary and Czech Republic during March/April 2012. • The Escape Training Facility of Project WILLS (Submarine Capability) was ceremonially opened by the Deputy Minister of Defence and Military Veterans on 07 October 2011. RESTRICTED

11. DEFENCE MATÉRIEL • Significant Achievements (cont): • The BIO-CHEM Laboratory (Biological and Chemical) for field experimentation was handed over from ARMSCOR to SAMHS. This Lab will enhance the defensive capability against chemical and biological weapons, as well as toxic industrial chemicals, both on the battlefield and in the urban environment. Subsequently this biochemical lab won the Armscor Chairpersons Award for the best project. • Obstacles/challenges: • Delays in acquisition approval process hampers achievement of project milestones and related cash-flow on the Special Defence Account (SDA). RESTRICTED

12. DEF SUPPLY CHAIN INTEGRATION • Significant Achievements: • Negotiated a contract with a private air evacuation company based in Kenya to be ready to evacuate the RSA contingents on all non United Nation Support Missions. • Participated in the DOD Delegation that visited the UN Mission in the DRC to discuss logistics challenges faced by the RSA contingent. The UN Force Commander has offered to assist the delegation with solutions to the raised challenges. • DSCI members attended the IBSA Defence Committee Meeting at Aerosud in the RSA. The meeting was facilitated by the RSA Defence Industry Association. The Defence Committee Meeting was successful and all representatives found common ground and developed a report that formed part of the Action Plan between the President of India, Brazil and RSA. RESTRICTED

13. DEF SUPPLY CHAIN INTEGRATION • Obstacles/challenges: • The Division cannot cope with the E-Proqure tool function as it is outside its mandate given its situation of staff shortage. • The call-up of a Reserve Force member to manage the E-Proqure has alleviated the pressure on the Dir Mat GRC. • It is emphasized that this system must be handed over to C LOG as system owner. RESTRICTED

14. DEF INTERNATIONAL AFFAIRS • Significant Achievements: • The following agreements were signed during this period: • Memorandum of Understanding (MOU) on African Union (AU) Special Task Force in Burundi on 26 October 2011. • Exchange of the Terms of Reference between the RSA and Benin over the period 23 to 24 November 2011. • Trilateral MOU between the RSA, Mozambique and Tanzania on Maritime Security on 15 December 2011. • The Agreement on Defence co-operation between RSA and United Arab Emirates (UAE) on the occasion of President Jacob Zuma’s State Visit to UAE and Sultan Oman over the period 11 to 17 November 2011. RESTRICTED

15. DEF INTERNATIONAL AFFAIRS • Obstacles/challenges: • The continued use of outdated software in the DOD results in interdepartmental communication problems as documentation cannot be readily accessed and/or read by DOD incumbents. RESTRICTED

16. DEF SEC CONTRIBUTION TO MOD&MV PRIORITIES RESTRICTED

17. DEF SEC CONTRIBUTION TO MOD&MV PRIORITIES RESTRICTED

18. TRENDABLE PERFORMANCE INDICATORS: ENE 18 RESTRICTED

19. TRENDABLE PERFORMANCE INDICATORS: JOB CREATION 19 RESTRICTED

20. REPORT ON RISK MITIGATION 20 RESTRICTED

21. CONCLUSION “Quarterly Reporting is a key element of the Strategic Control process and provides management information to top management.” - PFMA, 1999 - RESTRICTED