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FIVE YEAR REVIEW OF THE DEFENCE SECTOR

FIVE YEAR REVIEW OF THE DEFENCE SECTOR. JUNE 2009. Peter Daniels. SCOPE. 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.

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FIVE YEAR REVIEW OF THE DEFENCE SECTOR

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  1. FIVE YEAR REVIEW OF THE DEFENCE SECTOR JUNE 2009 Peter Daniels

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

  3. LEGISLATION ENACTED IN THE DEFENCE SECTOR • Defence Special Account Amendment Act, No. 18 of 2005 • Armaments Corporation of South Africa, Limited Amendment Act, No. 16 of 2005 • Prohibition of Mercenary Activities and Regulation of Certain Activities in Country of Armed Conflict Act (PMAA), No. 27 of 2006 • Prohibition or Restriction of Certain Conventional Weapons Act, No. 18 of 2008 • The Castle Management Act Repeal Bill [B9 – 2008] • Defence Amendment Bill [B6 - 2008] • National Conventional Arms Control Amendment Act, No. 73 of 2008

  4. ISSUES TO BE CONSIDERED BY 4TH 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

  5. 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

  6. 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

  7. 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

  8. 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

  9. 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

  10. 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

  11. 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

  12. AUDITOR-GENERAL REPORTS NCACC ASSURANCE REPORTS • In terms of Sections 4 and 12 of NCACC Act • Issues • Access to 3rd 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 1st quarter – submitted well after deadline

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

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

  15. 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

  16. 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

  17. 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

  18. 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

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