MR ANTONIE VISSER

1
PRESENTATION TO PORTFOLIO/ STANDING COMMITTEE ON
DEFENCE
DOD STRATEGIC BUSINESS PLAN FY04/05 05/06
By MR ANTONIE VISSER CHIEF DIRECTOR STRATEGIC
MANAGEMENT
01 February 2005
2
AIM

• To brief members of the Portfolio/Joint Standing
  Committee on Defence on the highlights of the
  DODs Performance Against Plan for FY 04/05 and
  the draft DOD Strategic Business Plan for FY05/06

3
SCOPE

• Introduction
• Defence Budget FY04/05 FY05/06
• Brief highlights of performance against plan and
  related risks for FY04/05 per Programme
• Broad framework of DOD Strategic Business Plan
  for FY05/06 per Programme
• DOD Strategic risks
• Prioritised Options for FY05/06
• Conclusion

4
INTRODUCTION

• DOD Business Plan Budget for FY04/05 was
  presented to Portfolio/Joint Standing Committee
  on Defence before it was tabled in Parliament.
• DOD Plan is based on Environmental Analysis,
  approved strategic risks, and guidelines provided
  by the Minister of Defence, Secretary for Defence
  and the Chief of the SANDF.
• DOD monitors its performance against the plan per
  quarter through Quarterly Reports
• An Annual Report is compiled for the financial
  year as prescribed by law. This is still in
  process for FY04/05.

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DEFENCE BUDGET FY04/05 FY05/06
Sub-Programme Vote 2004 Estimate 2005 Difference
1. Administration 594,275 681,398 87,123
2. Landward Defence 3,383,144 3,575,142 191,998
3. Air Defence 2,243,258 2,395,243 151,985
4. Maritime Defence 1,103,793 1,211,774 107,981
5. Military Health Support 1,317,113 1,517,578 200,465
6. Defence Intelligence 146,743 148,786 2,043
7. Joint Support 2,323,005 2,490,426 167,421
8. Force Employment 1,222,387 1,063,706 (158,681)
9. Special Defence Account 7,923,608 9,075,379 1,151,771
20,257,326 22,159,432 1,902,106
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PERFORMANCE SUMMARY

• Summary based on the last three DOD Quarterly
  Reports
• Annual Report still in process. To be tabled at
  the end of August 2005 in terms of law

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DEFENCE ADMINISTRATION

• Finalisation of the Integration process. This was
  presented to and accepted by the Portfolio
  Committee on Defence.
• Various Memoranda of Understanding (MOUs)
  concluded.
• DOD Communication Strategy was aligned and
  integrated with Govt cluster objectives and
  priorities.
• SAS MENDI arrived in Simons Town.
• DOD Fast Tracking Board continued with issues of
  representivity and fast-tracking in the DOD.
• Defence Inspectorate successfully retained its
  ISO 90012000 Quality Management System
  Certification.

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COMMAND AND CONTROL(JOINT OPERATIONS)

• Participated in peace support operations in
  support of NEPAD, esp in Burundi, the DRC and
  Sudan.
• Operations support to the national elections.
• Conducted numerous internal operations in support
  of SAPS.

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LANDWARD DEFENCE

• SA Army closed 611 of 658 Force Structure
  Elements (FSEs).
• Involvement in the integration process in the
  DRC.
• Successful completion of Ex AIRBORNE AFRICA 2004
  participated in the SA Air Forces Ex IRON EAGLE

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AIR DEFENCE

• SA Air Force hosted the 12th International Air
  Reserve Symposium. Fourteen (14) countries
  attended.
• AFB Ysterplaat Airshow was also a highlight as it
  enabled the SIYANDIZA Project (aviation awareness
  project) to stimulate interest in aviation among
  the youth.
• The two-yearly Africa Aerospace and Defence
  Exhibition took place.
• Ex GOLDEN EAGLE, involving Indian and German Air
  Forces, took place during the period under review.

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MARITIME DEFENCE

• Seaman Nompumelelo Gaba became the first black
  woman to qualify as an SA Navy diver.
• Ex RED LION was successfully conducted.
• SAS TEKWANE provided assistance to the
  Mediterranean Shipping Company, Regatta, in
  Durban.
• Arrival of the corvettes SAS SPIONKOP and SAS
  MENDI

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MILITARY HEALTH SERVICE

• SAMHS hosted the International Congress of
  Aviation and Space Medicine.
• SAMHS was requested by the UN to present a
  programme on sub-Saharan diseases and
  high-security bio-safety isolation techniques.
• 1 Med Bn Gp Pipe Band participated in an
  international competition in Edinburgh. Got
  13th position overall and won an award for best
  discipline

13
JOINT SUPPORT

• 169 DOD members were recruited for re-deployment
  to the SAPS and did with the Conversion Training
  Course at Makwe.
• The Multi-Media Section of SANDF COLET won the
  prize in the category Best Educational Video of
  2004.
• The War Simulation Centre, in co-operation with
  the British Peace Support Task Team and CJ
  Operations, completed the planning for Ex RED
  CARD for deployment in the DRC of 43 Mech Bde

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DEFENCE INTELLIGENCE

• The first DISC Intelligence Course was
  presented successfully in Zimbabwe to members
  from 10 SADC countries.
• Defence Intelligence supported Ex MEDFLAG,
  AIRBORNE AFRICA and the Aerospace Africa Defence
  Exhibition.
• Defence Intelligence, together with Strategy
  Planning Office, played a leading role in
  drafting the National Security Framework which
  was endorsed by the JCPS cluster.

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DRAFT DOD STRATEGIC BUSINESS PLAN FY05/06
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DEFENCE ADMINISTRATION

• Political Direction (Minister of Defence)
• Purpose To provide political direction to the
  DOD. This ensures the democratic defence of
  South Africa by the execution of the required
  defence commitments and providing appropriate
  defence capabilities

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DEFENCE ADMIN

• Departmental Direction (Secr for Defence)
• Purpose To provide departmental direction to
  the DOD to ensure the effective, efficient and
  proper conduct of defence activities in
  accordance with legislation and policy.

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DEFENCE ADMIN

• SANDF Command and Control (Chief of the SANDF)
• Purpose To provide command and control of the
  SANDF

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DEFENCE ADMIN

• Policy and Planning
• Purpose To advise on national security policy
  matters and co-ordinate the strategic direction
  process by developing, monitoring and adapting
  defence policy, strategy and plans in accordance
  with national policy to enable the effective,
  efficient and proper conduct of defence activities

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DEFENCE ADMIN

• Policy and Planning
• Outputs
• Defence policy, strategies and plans
• Structure management services
• Human resource policy and planning for the DOD
• Policy advice to the DOD

21
DEFENCE ADMIN

• Financial Management
• Purpose To provide a cost effective public
  finance service to the Minister of Defence,
  Secretary for Defence and the Chief of the South
  African National Defence Force in accordance with
  the Public Finance Management Act, Treasury
  Regulations and Circulars.
• Outputs
• Budget Management Services for the DOD as
  directed by the Accounting Officer (AO)
• Accounting services to the DOD as directed by the
  AO.
• Services to ensure compliance with the PFMA.

22
DEFENCE ADMIN

• Acquisition and Procurement
• Purpose To manage the DOD acquisition and
  procurement processes and policies.
• Outputs
• Acquisition and procurement capability and
  services for the DOD.

23
DEFENCE ADMIN

• Corporate Staff Office
• Purpose To provide corporate staff capability
  for the Chief of the SANDF
• Output
• Corporate staff capability for the Chief of the
  SANDF

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DEFENCE ADMIN

• Inspection Services (Defence Inspectorate)
• Purpose To ensure the validity and veracity of
  the management information of the DOD.
• Outputs
• Internal audit (performance and regulatory)
• Anti-fraud services.

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DEFENCE ADMIN

• Chief Directorate Equal Opportunities and
  Affirmative Action (EO AA)
• Purpose To provide EO and AA advice to
  Secretary for Defence
• Output
• Equal Opportunities direction and policy advice
  to the DOD.

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DEFENCE ADMIN

• Human Resource Support Centre
• Purpose To provide full human resources support
  services to the DOD.
• Output Comprehensive human resources support
  service for the DOD.

27
DEFENCE ADMIN

• Legal Services
• Purpose To provide professional, legitimate and
  deployable military legal services and support
  commensurate to the needs of the DOD
• Output Military legal service capability and
  services.

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DEFENCE ADMIN

• Religious Services
• Purpose To provide a Chaplains Service that
  cares for all DOD members and their dependants
  and promotes spiritual growth, social support and
  ethical conduct.
• Output Religious policy advice and chaplain
  capability for the SANDF.

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DEFENCE ADMIN

• Defence Corporate Communication
• Purpose To provide defence communication
  policy, strategy and plans in accordance with DOD
  policy and national (Government Communication and
  Information System - GCIS) policy and provide a
  centralised corporate communication capability,
  services and products in order to enable
  effective, efficient, interactive two-way
  communication between the DOD and its
  publics/stakeholders.
• Output
• Defence communication advice, policy, strategy
  and plans in accordance with DOD policy and
  national (GCIS) communication policy.
• Corporate communication capability, products and
  services

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DEFENCE ADMIN

• Reserve Force Division
• Purpose To direct the development and
  maintenance of the Reserve Force system, to
  provide specialist advice on Reserve Force
  matters and to promote/market the Reserves and
  the volunteer Reserve system.
• Output Strategic direction to the development
  and maintenance of the Reserve Force system by
  providing specialist advice, policy, strategy,
  plans and doctrine promotional/marketing
  products and services.

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DEFENCE ADMIN

• Strategy and Planning Office
• Purpose To provide military strategy and
  planning capability, advice and services for
  Chief SANDF
• Output Military Strategy and planning
  capability, advice and services for the Chief of
  the SANDF

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DEFENCE ADMIN

• Defence Foreign Relations
• Purpose To provide the C SANDF with a foreign
  relations capability and services.
• Output Defence foreign relations capability and
  services as directed by C SANDF.

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DEFENCE ADMIN

• RISKS
• Servicing of Memoranda of Understanding (MOUs)
• Renewal and sustainment of IT-based internal
  control systems for the management of finances,
  structure and personnel of the DOD
• MITIGATING ACTIONS Reprioritisation

34
LANDWARD DEFENCE

• PURPOSE To provide prepared and supported
  landward defence capabilities for the defence and
  protection of South Africa
• MEASURABLE OBJECTIVE Defend and protect South
  Africa by maintaining and providing prepared and
  supported landward combat forces for internal and
  external operations that meet the prescribed
  combat readiness, operational and other
  requirement of Government

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LANDWARD

• OUTPUTS
• Strategic Direction capability
• Infantry capability
• Armour capability
• Artillery Capability
• Air Defence Artillery Capability
• Engineer Capability
• Operational Intelligence Capability
• Command and Control Capability
• Support Capability
• General Training Capability

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LANDWARD

• RISKS
• Provision of affordable and sustainable human
  resource requirements for external operations and
  simultaneously providing for joint and combined
  training requirements. This is compounded by
  health status and ageing HR profile of serving
  members
• Funding for renewal of Army prime mission
  equipment
• MITIGATING ACTIONS
• Military Skills Development System (MSDS) to
  rejuvenate the SANDF
• Reprioritisation and gradual phasing in of prime
  mission equipment

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AIR DEFENCE

• PURPOSE To provide prepared and supported air
  defence capabilities for the defence and
  protection of South Africa
• MEASURABLE OBJECTIVE Measurable objective
  Defend and protect South Africa by maintaining
  and providing prepared and supported air combat
  forces, services and facilities for internal or
  external operations that meet the prescribed
  combat readiness, operational and other
  requirements of Government.

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AIR DEFENCE...

• OUTPUTS
• Strategic Direction
• Operational Direction
• Air Combat Capability
• Helicopter Capability
• Transport and Maritime Capability
• Operational Support and Intelligence Capability
• Command and Control Capability
• Command Post Capability
• Base Support Capability
• Education, Training and Development Capability
• Technical Support Services

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AIR DEFENCE...

• RISKS
• Main equipment, weapons systems and
  ground-support infrastructure do not comply with
  required standards for combat readiness.
• Declining numbers of suitably skilled and
  experienced personnel
• Loss of local industry expertise
• MITIGATING ACTIONS
• Implementation of Strategic Transformation Plan
  Towards Vision 2012 HR Medium-term Strategy
• Funding through payment of penalties for the late
  delivery of Agusta helicopters

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MARITIME DEFENCE

• PURPOSE To provide prepared and supported
  maritime defence capabilities for the defence and
  protection of South Africa
• MEASURABLE OBJECTIVE Defend and protect South
  Africa by maintaining and providing prepared and
  supported maritime combat forces, services and
  facilities for internal or external operations
  that meet the prescribed combat readiness,
  operational and other requirements of Government

41
MARITIME DEFENCE

• OUTPUTS
• Maritime Direction Capability
• Maritime Combat Capability
• Maritime Logistics Support Capability
• Maritime Training Capability
• Base Support Capability

42
MARITIME DEFENCE

• RISKS
• Logistic support, ordnance and facilities for the
  new corvettes and submarines
• Deterioration of facilities and equipment
• MITIGATING ACTIONS
• Limited funding provided by National Treasury
• Reprioritisation

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MILITARY HEALTH SERVICE

• PURPOSE To provide prepared and supported
  medical combat support elements and services
• MEASURABLE OBJECTIVE To provide prepared and
  supported military medical health capabilities,
  services and facilities for internal or external
  operations that meet the prescribed combat
  readiness, operational and other requirements of
  Government

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MILITARY HEALTH SERVICE

• OUTPUTS
• Strategic Direction
• Military Health Support
• Area Military Health Service
• Specialist/Tertiary Health Service
• Product Support Capability
• Base Support Capability
• Military Health Training Capability

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MILITARY HEALTH SERVICE

• RISKS
• Deterioration of hospitals, facilities and
  equipment, high rate of medical inflation
• Non-provision of Scarce Skills and Rural Areas
  Allowance negatively affects members
• Due to changes in health legislation resulted in
  medical base depot can no longer be used for
  storage of medication. Buildings need to be
  upgraded or new ones built.
• MITIGATING ACTIONS Limited additional funding
  provided by National Treasury will mitigate the
  risk.

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DEFENCE INTELLIGENCE

• PURPOSE To provide a defence intelligence and
  counter-intelligence capability
• MEASURABLE OBJECTIVE Defence intelligence and
  counter-intelligence capabilities, products and
  services that provide early warning and security
  for the defence and protection of South Africa
  and support to its people that meet the
  prescribed combat readiness, operational and
  other requirements of Government

47
DEFENCE INTELLIGENCE

• OUTPUTS
• Strategic Direction
• Defence intelligence operations
• Defence Intelligence support services

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DEFENCE INTELLIGENCE

• RISKS
• Outdated Information Technology
• Deteriorating condition of the Defence
  Intelligence HQ building
• MITIGATING ACTIONS
• Possibility of Public-Private Partnership is
  being investigated for relocating the Defence
  Intelligence HQ

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JOINT SUPPORT

• PURPOSE To supply joint support capabilities and
  services to the department.
• MEASURABLE OBJECTIVE Strategic Direction, Joint
  Logistic, Command and Management Information,
  Military Policing, Joint Training, Reskilling and
  Resettlement and Human Resources Support
  capabilities, services and facilities for the
  defence and protection of South Africa and
  support to its people that meet the prescribed
  combat readiness, operational and other
  requirements of Government.

50
JOINT SUPPORT

• OUTPUTS
• Strategic Direction
• Command Management Information Capability
• DOD Logistic Agency
• Human Resource Support Centre
• Joint Training Formation
• Military Policing Agency
• Service Corps
• Acquisition Services

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JOINT SUPPORT

• RISKS
• Maintenance and repair of facilities, vehicles
  and equipment
• Inadequate skills and and experience levels of
  personnel
• Unsafe and unstable ammunition due to lack of an
  ammunition disposal plan
• Information Technology related to internal
  control systems (PERSOL, FMS and Health
  Information System)
• MITIGATING ACTIONS
• Reprioritisation

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COMMAND AND CONTROL (JOINT OPERATIONS)

• PURPOSE The Joint Operations Division conducts
  all operations, joint and multi-national
  exercises for the DOD in service of the RSA.
• MEASURABLE OBJECTIVE Defend and protect South
  Africa by the command and control of all ordered
  operations by the Defence Force as directed by
  Government.

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COMMAND AND CONTROL (JOINT OPERATIONS)

• OUTPUTS
• Strategic Direction (Operations Division HQ)
• Command and Control
• Special Operations
• Peace Support Operations
• Conventional Operations

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COMMAND AND CONTROL (JOINT OPERATIONS)

• RISKS
• Gap between the outputs of force-providing
  Services and Divisions and the required force
  levels to meet the ordered commitments.
• Shortfall in the allocation for external
  operations in the DRC, Burundi and elsewhere
• Cost of internal deployments
• MITIGATING ACTIONS Reprioritisation

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SPECIAL DEFENCE ACCOUNT

• PURPOSE To acquire operationally capable,
  supportable and maintainable weapon systems
  congruent with authorised defence needs.
• OUTPUTS (SUB-PROGRAMMES)
• Landward Programme
• Air Defence
• Maritime Defence
• SA Military Health Services
• Joint Support
• Special Forces Brigade
• Technology Development

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SPECIAL DEFENCE ACCOUNT

• RISKS
• Adequacy of funding and local industrial
  capabilities.
• SA Army not provided for in the Strategic Defence
  Packages (SDPs).
• MITIGATING ACTIONS
• National Treasury has given an indication of
  favourably considering the renewal of the SA Army
  prime mission equipment

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DOD STRATEGIC RISKS

• 316 risks reduced to 76 corporate risks.
• 36 considered critical
• 14 options were developed.
• 4 options presented to MTEC

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PRIORITISED OPTIONS
PRIORITISED OPTIONS FOR FY05/06
Policy option 2005/06 2005/06 2006/07 2006/07 2007/08 2007/08
Policy option DEPT R'000 MTEC R'000 DEPT R'000 MTEC R'000 DEPT R'000 MTEC R'000
Option 1 Ammunition disposal 10 000 5 000 80 000 10 000 80 000 50 000
Option 2 Facilities 275 000 10 000 440 000 50 000 620 000 250 000
Option 3 Integration of SDP 47 516 26 000 40 000 22 000 31 400 13 000
Option 4 Military Health Services 152 000 20 000 146 000 12 000 139 500 14 000
Total 484 516 61 000 706 000 94 000 870 900 327 000
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CONCLUSION

• Stringent guidelines have been provided to the
  DOD to do its business within budget allocation.
  However, this is hampered by ordered operations
  which do not have sufficient budgetary
  allocation.
• Despite budgetary constraints, the DOD strives to
  deliver on its mandate, esp with regard to
  external and internal operations.
• International profile of SANDF has increased due
  to its leading role in various areas in defence
  and security in support of NEPAD.
• DOD still has a number of strategic risks, some
  of which were developed into options for funding
  by National Treasury.

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DISCUSSION