1 department of defence strategic plan 2010 (mtef 2010/11 – 2012/13) presentation to the portfolio...

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Department of Defence Strategic Plan 2010 (MTEF 2010/11 – 2012/13)

Presentation to the Portfolio Committee on Defence and Military Veterans

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AIM

To present the draft DOD Strategic Plan (SP) 2010 (MTEF 2010/11 – 2012/13) to the PCD&MV

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SCOPE• Aim

• Decisions Required

• Outlook and Overview of the DOD SP 2010

• Layout of the Plan

• Overview of the Chapters

• Concluding Remarks

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Outlook of the Strategic Plan• The DOD Strategic Plan 2010:

– is a culmination of planning and budgeting seminar process initiated in October 2008; with plans submitted in April 2009,

– Services and Divisions’ Plans were technically evaluated through DPBEC process in June 2009;

– amended to ensure inclusion of priorities in November 2009 and finally submitted in January 2010 with further account on consideration of budget cuts.

– The strategic plan has three chapters with performance information provided as appendices. These chapters cover strategic overview, alignment of DOD with Government and MOD priorities as well as the translation of DOD’s mandate into defence outputs that are elucidated in vote 21 of the Estimate of National Expenditure.

– In compliance with section 52, of the PFMA, an overview of entities reporting to the Executive Authority is provided. Lastly an overview of the public private partnerships that the DOD is involved is also provided.

• The contents of the SP 2010 is continually being aligned with the requirements of a Strategic Plan as required in Treasury Regulations, Chapter 5, as well as requirements emanating from the AG’s interpretation of Treasury Regulation 5.

• The draft Strategic Plan was presented for approval to Defence Staff Council (DSC) on Monday 22 Feb 2010 and Council on Defence (COD) on 25 Feb 2010.

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Strategic Thrusts That Inform the Execution of Defence Mandate

Minister’s priorities as confirmed (Page 17 of the Draft Strategic Plan)

– Establishment of a fully functional entity to support the Military veterans– Rejuvenation and upgrade of the Landward Programme– The review of the Defence Secretariat to align it with mandate for Defence Organisation and

support requirements for Minister of Defence and Military Veterans.– Upgrade of DOD Infrastructure – DOD Works Regiment – The establishment of the National Defence Force Service Commission and supporting structures– Transformation of ARMSCOR to be in line with the Defence Mandate.– Incremental and progressive refocusing of Denel to support identified defence strategic

capabilities– Promote a culture of Good Governance through:

• Realisation of a qualification – Free Audit through a multi-pronged approach that addresses root causes of the Auditor-General’s qualifications of the DOD.

• Information Technology- Optimal utilisation of the collateral value of defence capabilities to respond to country’s

socioeconomic needs- Defence strategy that responds to DOD’s current and emerging needs.-Revitalisation of the Reserves-Provide a lead to the development and implementation of the Community Service Programme

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LAYOUT OF THE SP• Chapter 1: Strategic Overview

• Chapter 2: Medium Term Strategic Focus

• Chapter 3: Overview of Programmes

• Appendix A : Detailed information on the Outputs

• Appendix B : Links to Other Plans

• Appendix C : Overview of Services to be Delivered through Public Private Partnership

Consultant UtilisationPublic Entities Reporting to the Executive Authority

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Chapter One: Strategic Overview• Presents developments that Department of Defence had to respond to from

Cabinet pronouncements as well as part of promotion of corporate citizenship

• Mandate of the Department• Strategic Objectives• Macro Structure as approved by the MOD on 15 August 2008• Vision • Mission• Mission Success Factors• DOD’s Value System• Defence Strategic Approach• DOD’s Strategies• Organisational Performance Management (Balanced Scorecard)

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Ministry of

DefenceLEVEL 0

LEVEL 1

LEVEL 2

Department of Defence

Defence Secretariat

SA National Defence

Force

Human Resource Division

Defence Legal

Service Division

Defence Inspectorate

Division

Defence Foreign

Relations Division

Defence Policy,

Strategy and Planning Division

Financial Management

Division

Defence Material Division

Defence International

Affairs

Internal Audit

Division

Defence Enterprise Information

Systems Management

Division DOD CENTRAL STAFF

Joint Operations

DivisionSA Army SA Air Force SA Navy

SA Military Health Service

Defence Intelligence

Division

Corporate Staff Division

Military Policy

Strategy & Planning

Defence Reserves

Chaplain General

Logistics Division

Military Police Division

Command & Mngmnt

Information Systems Division

DOD MACRO ORGANISATIONAL DESIGN(The structure indicated below is being reviewed in order to align with the defence

mandate and Minister’s intent )

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Chapter One: Strategic Overview

• Mission Success Factors (MSF). MSFs are as follows: – National Consensus on Defence– Excellent Strategic Direction– Excellent Resource Management.– Effective Combat Forces and Support Forces.– Professionalism in the Conduct of Operations.– Successful Implementation of the Transformation Process.

• DOD Value Systems. DOD value systems are categorised into individual and organisational values

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Chapter One: Strategic Overview

• DOD Balanced Scorecard. The Balanced Scorecard is being introduced in phases in order to improve the DOD’smanagement of performance. Update on progress made is provided.

DOD’s strategic approach. • DOD positioning strategy is informed by :

– Defence strategy which takes into cognisance the need for DOD to respond to geo-strategic and macroeconomic global imperatives as well as deepen and institutionalise civil-miltary relations.

– Focus on Defence Diplomacy in support of Cabinet Outcome 11

– Military strategy – Support strategies

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Chapter Two: Medium Term Strategic Focus

The chapter provides the detail on the following:• Overview of the DOD Strategic Planning Cycle and Process• Government’s Medium Term Strategic focus.• Alignment with Government Priorities.• Minister of Defence Priorities as confirmed by the Minister • DOD Alignment to MTSF Priorities.• Legislative Changes Likely to Influence Programme Spending Plans

Over the MTEF period.• Resource Consideration.• Budget Allocation, Expenditure Trends and Analysis of FY 2010/11

Budget Allocation• Enterprise Risk Management: Key Corporate risks with mitigating

actions

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Chapter Two: Overview of DOD Planning Cycle

• Initiated by Environmental Analysis• Planning and Budget Seminar (Sep)

– MOD presents guidelines that inform the strategic planning process for next fin year.– Accounting Officer translates guidelines to more detailed Departmental guidelines.

• Services Divisions submit plans in Apr for due diligence and presentation at DPBEC during May /June .

• SC and MCC approved Plans submitted in Nov for inclusion in the DOD SP

• Inputs from Lekgotla, SONA and Budget Vote incorporated• Accounting officer presents SP to MOD during MOD w/s in January/Feb.• SP submitted by MOD during Feb/ March for tabling.• Tabling ito Regulation 5 as amended shall take place 10 (ten days) prior to

the Defence Vote• Planning process supported by MCC, SC, COD, PDSC DPB & DPBEC to

align to DOD priorities and government prescripts.• Necessary adjustments to the process effected continually to align to

Government strategic planning trajectory.

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• Strategic focus– Review of Migration from affordable, sustainable and

credible Force to a mandate driven Force Design and Structure to enable fulfilment of ordered commitments as well as provide support to Govt’s diplomatic initiatives

– Embracing Government initiatives aimed at combating poverty in order to promote development, peace and stability, regionally and Continentally, through participation in peace missions, confidence and security building bilateral forums , continental peace and security structures (AU and SADC) as well as ensure systematic phased withdrawal from internal deployments in support of the SAPS

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Alignment with Government Priorities.

DOD’s participation in the Clusters is presented:

– JCPS cluster wrt Outcome 3, “All People in SA Are and Feel Safe” where outputs pertain to Border Safeguarding vis a vis the Border Management Agency.

– ICTS cluster wrt Outcome 11, “Creating a Better SA and contribute to a Safer Africa and a Better” where outputs pertain to Advancement of Regional & Global Peace, Security and Sustainable Development.

• The above does not exclude the contribution of Defence in other outcome areas , notably MSDS, to mention but a few.

• The plans provided have been aligned with the MinDef Priorities as well as intended Cluster priorities, but there needs to be a direct relationship between the ENE performance indicators and the ones identified in the aforementioned outcome areas.

(It is imperative that ENE programme performance indicators indicated in slide 39 be in line

with the ones identified in outcome 3 and 11)

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Medium Term Strategic Focus • Minister’s priorities as confirmed (Page 17 of the Strategic Plan)

– Establishment of a fully functional Department to support the Military veterans– Rejuvenation and upgrade of the Landward Programme– The review of the Defence Secretariat to align it with mandate for Defence Organisation and support

requirements for Minister of Defence and Military Veterans.– Upgrade of DOD Infrastructure – DOD Works Regiment – The establishment of the National Defence Force Service Commission and supporting structures– Transformation of ARMSCOR to be in line with the Defence Mandate.– Incremental and progressive refocusing of Denel to support identified defence strategic capabilities– Promote a culture of Good Governance through:

• Realisation of a qualification – Free Audit through a multi-pronged approach that addresses root causes of the Auditor-General’s qualifications of the DOD.

• Information Technology– - Optimal utilisation of the collateral value of defence capabilities to respond to country’s

socioeconomic needs– - Defence strategy that responds to DOD’s current and emerging needs.– -Revitalisation of the Reserves– -Provide a lead to the development and implementation of the Community Service Programme

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DOD Alignment needs to give substance to the following MTSF Priorities :• Economic growth • Social and economic infrastructure• Rural development and land reform• Skills and human resource base• Improve national health profile• Fight against crime and corruption• Building cohesive and sustainable communities• International cooperation• Sustainable resource management• Building Democratic developmental state(DOD’s performance information need to be packaged in line with the abovementioned framework so as to visibly display the alignment – Proposed DOD alignment to MTSF priorities. Refer to Strategic Plan)

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Strategic Priority as Reflected in the MTSF

DOD Alignment to MTSF Priorities

Strategic Priority 1:Speeding up growth and transforming the economy to create decent work and sustainable livelihoods

•Ensure that procurement processes promote broad-based economic empowerment.

•Development of the White Paper on Defence Industry.

Strategic Priority 2:Massive Programme to build economic and social Infrastructure

•Promote partnerships with other organs of state at local and municipal level to accelerate the delivery of socioeconomic needs.

•Establishment of DOD Works’ Capability to address DPW capacity challenges and simultaneously empowering youth and underutilized DOD personnel.

Strategic Priority 3:Comprehensive rural land development strategy linked to land and agrarian reform and food security

•Finalisation of pending land claims (land restitution).

•Develop partnership with local Government and broad based community organization in optimal utilization of underutilized military land and facilities. Engage relevant departments (NT and DPW) in co-ordinated and focused disposal of excess military land and facilities (Endowment Properties).

DOD Alignment to MTSF

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DOD Alignment to MTSFStrategic Priority as Reflected in the MTSF


Strategic Priority 4:Strengthen the skills and human resource base

•Access to post-secondary education funding by means of bursaries.

•Access to (part and full qualification- based) NQF-linked training opportunities.

•Restructuring of DOD logistics training capability to be streamlined towards force preparation objectives and broad-based skills and human resource development.

•Enhanced MSDS system that widens the graduates’ talent and skills base in cultural activities and sport.

Strategic Priority 5:Improve the health profile of all South Africans

•Hospital revitalisation programme

•Filling critical posts and improving remuneration of health and medical care personnel.

•DOD TB and HIV/AIDS awareness programmes.

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Strategic Priority 6:Intensify the fight against crime and corruption

•Implementation of the Cabinet decision regarding employment of SANDF for a full spectrum of border safeguarding services inside South Africa and in international waters

•Full implementation of anti-criminality strategy and plan.

•Promote financial disclosures at all levels.

•Strengthen the GRC processes to address the ethical and fiduciary •requirements that guide the securing of service providers.

•Strengthen the DOD risk management framework.

Strategic Priority 7:Build cohesive, caring and sustainable communities

•Establish a fully functional Department for Military Veterans

•Intensify civic education programmes to include all members and employees.


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Strategic Priority 8:Pursuing African advancement and enhanced international co-operation

•Promote nationally identified outputs that relate to advancement of regional and global peace, security and sustainability.

•Ensure that regional, continental and international peace security structures are capacitated and strengthened by appropriate deployments.

•Ensure that adequate legal instruments and frameworks exist to support the requisite deployments in Peace Missions and General Military Assistance Missions.

•Improve governance within SADC in terms of Defence Specific Security Sector Reform programmes.

•Implementation and monitoring of IBSA Agreements and Action Plans –relevant to the DOD.

•Ensure alignment of agreements with NEPAD, revitalise NAASP, as well as support AU and UN efforts to guarantee lasting solutions to conflict resolution.


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Strategic Priority 9:Sustainable resources management and use

•Assist in protecting marine resources in co-operation with the police.

•Promote responsible management of land resources through collaborations to promote land use recycling.

•Ensure compliance with National Environmental Management Act (NEMA) and the applicable protocols regarding sustainable resource management.

•Promote prudent utilisation of defence allocated bandwidth.

•Compliance with protocols to ensure sustainable environmental management.

•Ensure that the Logistics Intervention and Restructuring Programme objectives are accomplished and embraced within the DOD at all levels

Strategic Priority 10:Building a developmental state, including improvement of public Service

•The review of the Defence Secretariat to align it with the mandate

•Continually Project the patriotism and high levels of discipline.

•Deepen the understanding of the code of conduct.


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• Legislative Changes Likely to Influence Programme Spending Plans Over the MTEF Period:

– Military Discipline Bill– Military Veterans Affairs Amendment Bill – Defence Amendment Bill – National Defence Force Service Commission Bill – Geneva Conventions Bill

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Chapter Two: MTSFExpenditure trends

• Expenditure trends are reflected in the Estimate of National Expenditure as tabled by the Minister of Finance.

• The following slides provide a summary of the 2010/11 budget allocation to the Department of Defence.

24Secretariate Council Brief 10 Feb 10 242424

2010/11 MTEF:2010/11 MTEF:SUBMITTED FUNDING PROPOSALSSUBMITTED FUNDING PROPOSALS

S No 2010/11 2011/12 2012/131 Tbd Tbd Tbd2 904 781 519 959 068 410 1 016 612 514 3 796 870 000 2 135 928 000 2 356 330 000

Upgrade of Landward Defence Systems 543 870 000 1 628 128 000 2 081 330 000

Maintenance and Repair of the Operational Vehicle Fleet 150 000 000 158 000 000 165 000 000

Procurement of Critical Ammunition 100 000 000 105 000 000 110 000 000

Replacement of the Operational Ambulance Fleet 3 000 000 244 800 000 -

4 410 569 787 503 776 766 569 244 443 Operating the SDP Aircraft 224 500 000 299 100 000 344 100 000 Operating the SDP Vessels 186 069 787 204 676 766 225 144 443

5 135 863 858 142 520 844 149 504 725 6 351 894 000 397 991 000 461 889 000 7 2 599 979 164 4 139 285 020 4 553 580 682

DEIS Master PlanTOTAL

Additional Funding ProposalMilitary Veterans ManagementNew SANDF Remuneration SystemDefence Rejuvenation Programme

Operating SDP Equipment

Continuation Training for Reserves


FINAL LETTER OF ALLOCATION FINAL LETTER OF ALLOCATION (2010/11 MTEF): 20 NOV 09(2010/11 MTEF): 20 NOV 09

2010/11 2011/12 2012/13R'000 R'000 R'000

2009 MTEF ALLOCATIONS 32 389 304 34 418 624 36 265 914 * Departmental baseline 32 389 304 34 418 624 36 265 914

ADDITIONAL FUNDS ALLOCATED TO BASELINE 1 092 721 1 400 316 2 190 142 * New SA National Defence Force Remuneration System 600 000 730 000 850 000 * Military Skills Development System 50 000 70 000 100 000 * Office for Military Veterans' Affairs 20 000 30 000 30 000 * Landward Defence Modernisation 0 100 000 500 000 * Strategic Defence Procurement Programme 0 0 200 000 * Compensation of Employees Adjustment 422 721 470 316 510 142

ADJUSTMENTS TO BASELINE -2 766 692 -1 887 584 -2 069 537 * Baseline Efficiency Saving -446 792 -626 672 -624 367 * Savings: A400M Contract -2 067 022 -1 010 912 -1 445 170 * Savings: Strategic Defence Procurement Programme -502 878 0 0 * Rescheduling: Upgrading Runway Air Force Base Waterkloof 250 000 -250 000 0

2010 MTEF ALLOCATIONS (to be included in 2010 ENE) 1 30 715 333 33 931 356 36 386 519 * Earmarked amounts 2

Devolution of Funds from Public Works 1 762 321 1 966 950 2 191 656

Strategic Procurement Programme 2 1 220 092 1 234 749 201 154 Departments' Contribution 1 220 092 1 234 749 201 154

2. May not be used for other purposes than those specified.

1. These allocations are subject to change


CURRENT BUDGET ALLOCATION CURRENT BUDGET ALLOCATION (2010/11 MTEF) (2010/11 MTEF) PER PROGRAMMEPER PROGRAMME

2009/10 2010/11 2011/12 2012/13

Adjusted Allocation

Total to beappropriated Total Total

MTEF AllocationAdministration 2 880 637 3 247 080 3 617 151 3 991 745Force Employment 1 924 471 1 908 870 1 997 142 2 086 315Landward Defence 8 909 095 9 982 892 10 431 224 11 062 075Air Defence 9 056 428 6 059 126 7 910 491 8 361 920Maritime Defence 2 011 314 2 179 822 2 320 015 2 574 214Military Health Support 2 482 797 2 770 215 2 961 306 3 201 260Defence Intelligence 566 564 631 149 665 961 698 899General Support 3 460 950 3 936 179 4 028 066 4 410 091Total expenditure estimates 31 292 256 30 715 333 33 931 356 36 386 519

Final Letter of Allocationdated 20 November 2009(R thousand)


CURRENT BUDGET ALLOCATION (2010/11 MTEF)CURRENT BUDGET ALLOCATION (2010/11 MTEF)PER ECONOMIC CLASSIFICATIONPER ECONOMIC CLASSIFICATION

Adjusted Allocation Estimate Estimate Estimate

2009/10R'000

2010/11R'000

2011/12R'000

2012/13R'000

Current PaymentsCompensation of Employees 12 223 157 13 450 429 14 630 105 15 686 907 Goods and Services 8 514 413 9 648 572 10 228 809 11 038 349 Total Current Payments 20 737 570 23 099 001 24 858 914 26 725 256 Transfers and Subsidies Departmental Agencies and Accounts 9 075 021 5 968 570 7 748 545 7 927 523 Public Corporations and Private Enterprises 603 608 721 184 735 632 768 475 Non-profit Institutions 4 402 4 754 4 950 5 168 Households 161 843 135 639 127 418 114 541 Total Transfers and Subsidies 9 844 874 6 830 147 8 616 545 8 815 707 Payment of Capital AssetsBuildings and Other Fixed Structures 451 981 484 268 171 563 252 846 Machinery and Equipment 262 993 281 944 259 406 470 232 Specialised Military Assets 27 585 19 556 24 496 122 015 Biological Assets - 100 110 115 Software and Other Intangible Assets 253 317 322 348 Total Payments for Capital Assets 742 812 786 185 455 897 845 556 Departmental Total 31 325 256 30 715 333 33 931 356 36 386 519

Economic Classification


2010/11 MTEF: SIGNIFICANT CHANGES

GENERAL– Over the period 2008/09 to 2012/13, Defence baseline has

been reduced, with efficiency savings of R23.1 million in 2008/09, R499.6 million in 2009/10, R3.2 billion in 2010/11, R2.2 billion in 2011/12 and R2.1 billion in 2012/13, amounting to a total reduction of R8 billion over the 5-year period. Included in the total reduction is a saving of R4.5 billion due to the cancellation of the Airbus A400M aircraft contract.

– Revenue is expected to increase from R676.7 million to R756.9 million, at an average annual rate of 3.8 per cent between 2009/10 and 2012/13.


PROGRAMME 1: ADMINISTRATION

Expenditure increased from R2 billion in 2006/07 to R4 billion in 2012/13, at an average annual rate of 12.1 per cent. This is due to increase in Office Accommodation subprogramme, in which

expenditure increases at an average annual rate of 14.9 per cent;Human Resource Support Services subprogramme in 2010/11

is due to additional allocations for the establishment of a management capability for military veterans’ affairs; and

increase of 10.5 per cent in the Legal Services subprogramme in 2010/11 is due to the implementation of the occupational specific dispensation for legal practitioners.


PROGRAMME 2: FORCE EMPLOYMENT

Expenditure increases from R1.5 billion in 2006/07 to R2.1 billion in 2012/13, at an average annual rate of 5.6 per cent.

Major contributing factor is the staffing of operational structures.

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• Expenditure increases from R6.4 billion in 2006/07 to R11.1 billion in 2012/13, mainly due to additional funding for increases in the military skills development system intake; increased maintenance requirements of the South African Army’s ageing operational vehicle fleet; initiation of landward defence equipment renewal projects; and the procurement of critical ammunition.

• Reaching delivery milestones of the shoulder launched air defence artillery system and mobile ground to air missile system programmes explains the 64.8 per cent increase in expenditure in the Air Defence Artillery Capability.

• Overall spending will focus on providing forces for internal and external deployments.

PROGRAMME 3: LANDWARD DEFENCE


PROGRAMME 4: AIR DEFENCE

• The Air Defence programme accounts for 26.2 per cent of the department’s total expenditure

• The decrease over the MTEF period is due to the termination of the A400M strategic airlift procurement project and the finalisation of the delivery milestones of the hawk lead in fighter trainer aircraft.

• The increase in the Training Capability and the Command and Control Capability subprogrammes are due to the upgrade of the Pilatus PC7 Mk11 Astra trainer aircraft, and radar and ground navigation systems.


PROGRAMME 5: MARITIME DEFENCE

• This programme accounts for 7.8 per cent of the department’s total expenditure.

• Expenditure in this programme decreases from R2.6 billion in 2006/07 to R2.2 billion in 2010/11 at an average annual rate of 4.7 per cent, due to the commissioning of the frigates and submarines between 2006 and 2009.

• Increases of 23.2 per cent and 21 per cent in 2012/13 in expenditure in the Maritime Logistic Support Capability and Base Support Capability subprogrammes are due to the planned acquisition of hydrographic vessels, and the planned recruitment and staffing of personnel with scarce skills such as divers, technicians and engineers.


PROGRAMME 6: MILITARY HEALTH SUPPORT

The Military Health Support programme accounts for 8.1 per cent of the department’s total expenditure, which increases from R1.7 billion in 2006/07 to R3.2 billion in 2012/13, at an average annual rate of 11.1 per cent due to

– implementation of scarce skills and rural allowances for health professionals,

– improvements to the health informatics system, – antiretroviral rollout; – sustaining the presidential health team; – Increased military skills development system programme; – replacement of operational ambulances


PROGRAMME 7: DEFENCE INTELLIGENCE

The Defence Intelligence programme accounts for 1.9 per cent of the department’s total expenditure.

Spending increases from R353.6 million in 2006/07 to R698.9 million in 2012/13, at an average annual rate of 12 per cent, due to the planned investment in and development of a strategic information collection capability.


PROGRAMME 8: GENERAL SUPPORT

Accounts for 11 per cent of total expenditure, which increases from R1.9 billion in 2006/07 to R4.4 billion in 2012/13, focusing on

– upgrading the runways and hardstands of Air Force Base Waterkloof;– repair and maintenance of defence infrastructure and facilities;– research and development of new generation telecommunication

systems;– repair and maintenance of defence infrastructure and facilities; and– investment in the

• test and evaluation capability; • electronic research and development; and • missile technology research and development.

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Chapter Two: Risk Management

Enterprise Risk Mitigation Strategy/Action

The continued loss of scarce skills due to the exit of large numbers of highly skilled personnel.

•Interim Service Commission has been established to consider remuneration and the conditions of service of members of the South African National Defence Force (SANDF). A unique service dispensation for the SANDF outside the ambit of the Public Service.•Implementation of the DOD retention strategy. •Air Force partnering with local aviation industry.

Inadequate funding for human resource expenditure could result in a further burden on DOD’s budget vote/allocation.

Department will engage National Treasury for additional funding.

The declining Rand value of the DOD budget could negatively impact on the Department’s operating budget and capital acquisitions budget.

Department will engage National Treasury for additional funding.

.

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Chapter Two: Risk ManagementEnterprise Risk Mitigation Strategy/Action

Inadequate infrastructure maintenance and repairs due to absence of strategic integrated planning between DOD and DPW to address bilateral facilities issues (repair and maintenance priorities.

DOD to migrate some of the responsibilities/functions to the DOD as spelt out GovernmentImmovable Assets Management Act (GIAMA).

Immediately establish bilateral planning between DPW and DOD at all levels.Establish monitoring mechanisms with fixed periodical reporting schedules.

Incompatible IT systems could result in ineffective and inefficient performance.

•Analysis of all the systems in the Department with the intention of integration.•Approach National Treasury for permission to procure DOD integrated system.

Non-compliance with legislation, e.g. certain aspects of the PFMA.

•Enhance good corporate governance throughout the Department.

Inadequate consensus on defence could lead to poor reputation in the public domain

•Enhance the Department’s communication strategy.

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Chapter Three Overview of the Programmes

• This chapter presents the outputs that define how the Department operationalises its mandate in terms of Force readiness, Force support and Force Employment.

• It further presents the translation of the outputs in terms of Programmes articulated in Vote 21

• The selected trendable indicators are presented in this chapter• Measurable Objectives are extracted from the strategic plan

and are highlighted under each programme

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Key Tenents that Foreground the Execution of the Defence Mandate

Foregrounding the delivery of the defence mandate are the following key tenents that provide a basis for good business practice and governance:

• The execution of defence commitments as ordered and funded by Government;• The provision of contingency-ready and cost-effective defence capabilities as

specified by approved policy;• Sound management of the Department;• The administration of the DOD within the prescripts of the law, regulatory

framework and Government policy;• The assurance of sustainability, continuous improvement of output quality and

the reduction of the cost of DOD processes, as well as the accounting thereof;• The assurance of the continuous quality improvement of people in the DOD;• The assurance of quality command and management information in the DOD;

and• The assurance of continuous quality improvement of DOD equipment and

facilities.

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DOD Outputs• The outputs provided by the DOD in terms of its mandate to

Government are:• Defence commitments, which include

– operations that are ongoing in nature during the year and, for which plans and financial provision can be made in advance;

– operations that must be executed during the year and, if unforeseeable, for which no provision has been made; and

– joint, interdepartmental and multinational exercises required during the year to prepare forces for operations

• Landward defence capabilities• Air defence capabilities• Maritime defence capabilities

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DOD Outputs• Military health (support) capabilities• Defence diplomacy, which includes

– the deployment of Defence Attaches– the servicing of defence-related Memoranda of Understanding

(MOUs); and– participation in the defence and security structures of the United

Nations (UN),the African Union (AU) and SADC• The provision of defence related policy and ministerial advice• Cryptographic security services for Government departments• The National Codification Bureau• The provision of appropriate frameworks for sound policy direction,

advice and systemic monitoring and evaluation• The provision of defence related capabilities that respond to the needs of

South Africa within the evolving policy and national priority trajectory that characterise a developmental state.

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Chapter Three: Overview of DOD Programmes

• Outputs of the DOD. DOD outputs are translated into programmes as reflected in Vote 21 is as follows.– Administration– Force Employment – Landward Defence– Air Defence– Maritime Defence– Military Health Support– Defence Intelligence– General Support

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Performance IndicatorsPast Current Projections Programme Name (s) Indicator

2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13

Force Employment, Landward, Air and Maritime Defence, Military Health Support, General Support

Total number of active Reserves1

13 050 12 583 19 763 24 400 31 500 35 500 39 500

Force Employment Number of External Operations each year

14 11 9 12 12 12 12

Force employment Average number of personnel deployed daily in external operations

4 810 2 698 2 931 3 024 2 102 2 102 2 102

Force Employment Number of Internal Operations in support of other government departments each year

3 3 6 5 5 4 4

Force Employment Number of person days used during internal operations

- 515 516 231 608 156 381 515 5162 208 6093 208 609

Force Employment Number of joint, interdepartmental and multinational military exercises4

16 10 10 9 9 7 8

Force Employment, Landward, Air and Maritime Defence, Military Health Support, General Support

Number of Military Skills Development (MSDS) members in the system each year

4 710 4 677 6 736 8 833 11 140 11 140 11 140

Air Defence Number of flying hours in support of operations each year 9 788 12 271 11 099 9 500 9 500 9 500 9 500

Maritime Defence Number of sea hours on patrol in South African maritime zones each year

9 949 9 648 8 236 11 000 10 000 9 000 9 000

Military Health Support Number of health care activities5 per year

- - - 2 400 000 2 400 000 2 400 000 2 400 000

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CHAPTER THREE Administration

• Purpose. The Defence Administration Programme conducts policy development, management and administration of the department.

• Measurable Objectives– Provision of sound defence direction and advice– Providing the defence related social responsibilities– Developing consensus on defence– Providing sound Policy and administration– Provision of contingency ready defence capabilities– Providing framework for systemic M&EOutput table

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Coverage of Administration Programme

Sub-programme CoverageMinisterial Direction MinistryDepartmental Direction Office of the Secretary for

DefenceSANDF Command and Control Office of the Chief of the South

African National Defence Force Policy and Planning Defence Strategy, Policy

and PlanMilitary Policy, Strategyand Plan (Chief Corporate Staff)

Financial Services Chief Financial Officer

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Sub-programme CoverageAcquisition Services Chief of Defence Materiel

Head of Supply Chain Integration

Inspection Services Inspector –GeneralInternal Audit

Human Resources Support Services. Chief Human Resources Defence Legal Services Chief Defence Legal

Services

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Sub-programme CoverageReligious Services Chaplain - General

Communication Services Head of Communication Defence Reserve Direction Chief of Defence Reserves

Defence Foreign Relations Chief of Defence Foreign RelationsChief Defence International Affairs

Office Accommodation Chief of Logistics

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Chapter Three Force Employment

• PurposeThe Joint Operations Division provides and employs defence capabilities, including an operational capability, to successfully conduct all operations, and joint interdepartmental and multinational military exercises.

• Outputs. Operations and Joint Interdepartmental Multinational Military Exercises

• Measurable objectives– providing and employing special operations capability in

accordance with national requirements;

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Chapter Three Force Employment

– conducting an average of 12 external peace missions per year in accordance with requirements to promote peace and security;

– conducting 21 JIM military force preparation exercises over the next three year (excluding Special Forces exercises); and

– Conducting an average of four operations per year in support of other government departments, and complying with international obligations.

Output table

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CHAPTER THREE Landward Defence

• PurposeThe Landward Defence Programme provides prepared and supported landward defence capabilities for the defence and protection of South Africa.

Outputs. Landward Defence Capabilities• Measurable Objectives

• preparing an infantry capability to provide 3 infantry battalions a year sustained for external deployment, 1 airborne battalion as Chief of the South African National Defence Force Reaction Force, 1 multi-role battalion for internal safety and security, 1 battalion in support for internal security operations, and 4 battalions involved in exercises;

• preparing an armoured capability by exercising 1 tank regiment and 1 armoured car regiment with one squadron for internal deployment a year;

• preparing an artillery capability by exercising 1 composite artillery regiment and 1 light (airborne) artillery battery, having 1 light artillery battery in reserve and 1 battery for internal deployment a year;

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Chapter Three Programme: Landward Defence

Objectives and Measures– preparing an air defence artillery capability by exercising

1 air defence artillery regiment and 1 light (airborne) air defence artillery battery, and having 1 light air defence artillery battery as part of the mobile capability and one battery for internal deployment a year;

– preparing an engineer capability by providing 3 sustained composite engineer squadrons for external deployment, 1 composite engineer squadron for internal reserve, and exercising 1 light (airborne) engineer squadron a year; and

– preparing a signal capability by providing 2 signal regiments a year for external deployment, internal reserve and involvement in exercises.

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Chapter Three Air Defence

• PurposeThe Air Defence Programme provides prepared and supported air defence capabilities for the defence and protection of South Africa.

• Outputs. Air Defence Capabilities.

• Measurable Objectives– four helicopter squadrons and one combat support squadron a

year;– three medium transport squadrons, one maritime and transport

squadron, one light transport squadron and nine reserve squadrons at the required readiness levels a year;

– one air combat squadron a year; and– a 24-hour air command and control capability

• Output table

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Chapter Three Maritime Defence

• PurposeThe Maritime Defence Programme provides prepared and supported maritime defence capabilities for the defence and protection of the RSA.

• Outputs. Maritime Defence Capabilities.

• Measurable Objectives– a surface combat capability of four frigates, one combat

support vessel, three offshore patrol vessels, three inshore patrol vessels and a maritime reaction squadron in each annual operational cycle,

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Chapter Three Maritime Defence

– a sub-surface combat capability of three submarines in each annual operational cycle,

– two mine countermeasures systems in each annual operational cycle to ensure safe access to South African harbours, and where mine clearance may be required; and

– an ongoing hydrographic survey capability to ensure safe navigation in charting areas and to meet an international obligation

Output table

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Chapter Three Military Health Support

• Purpose. The Military Health Support Programme provides prepared and supported health capabilities and service for the defence and protection of South Africa.

• Outputs. Military Health Services and Capabilities.• Measurable Objectives

• a comprehensive multidisciplinary military health service to a projected patient population of 230 000 members per year.

• a health support capability of five medical battalion groups, including one specialist medical battalion group, for deployed and contingency forces; and

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Chapter Three Military Health Support

• a military health service which provides for a comprehensive multidisciplinary health service to a projected patient population of 230 000 members per year.

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Chapter Three Defence Intelligence

• Purpose• The Defence Intelligence Programme provides a defence

intelligence and counter-intelligence capability. • Outputs. Defence Intelligence and Counter-Intelligence

Capabilities.• Measurable Objectives ( classified information)

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Chapter Three General Support

• PurposeThe General Support Programme provides general support capabilities and services to the Department.

• Outputs. General Support Capabilities (Log, MP, CMI, Tech Development, British Peace Support and Training, Dept Support).

Measurable Objectives• General support capabilities and services by

• providing appropriate, ready and sustained materiel, facilities, movement and logistic services focusing on supply chain management to enable force preparation and employment.

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Chapter Three General Support

Provide the department with key information andcommunication systems by

• repairing and maintaining the department’s infrastructure at 33 bases over the next 3 years (13 in 20010/11, 9 in 2011/12 and 11 in 2012/13) and executing the Capital Works Plan in 52 projects (7 in 2010/11, 24 in 2011/12 and 21 in 2012/13).

• providing appropriate, ready and sustained materiel, facilities, movement and logistic services to enable force preparation and employment by means of a service focusing on supply chain and life cycle management.

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Chapter Three Programme: General Support

Objectives and Measures• ensuring that the mainframe service is available 98 per cent of

the time and the Wide Area Network 95 per cent of the time.• providing Information and Communication Systems solutions

in accordance with the Defence Enterprise Information Systems (DEIS) Master Plan, as per the programme and project milestones and associated deliverables.

• Reduce the number of new criminal cases under investigation by the military police by 10 per cent a year, and sustaining 1 provost company for deployment, 4 regional head quarters, 22 area offices and 22 detachments for investigations and crime prevention, and 2 military correctional facilities.

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Entities That Report to the Executive Authority

• ARMSCOR mandated to meet the acquisition, maintenance and disposal needs of the South African Department of Defence and other clients in terms of defence matériel, related products and related services

• Castle Control Board mandated to Manage and protect the Castle on behalf of the MOD (as Executive authority)

• National Defence Force Service Commission mandated to:- Investigate, provide expert advice and make recommendations

regarding the conditions of service of the members of the SANDF-Make recommendations to the Executive Authority on the establishment of a permanent National Defence Force Service Commission

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STRATEGIC POSITIONING

• Armscor positioning strategy is focused on the following:-

• Funding and growth• People capabilities• Broad Based Economic Empowerment• Stakeholder Relationship• Support to local Industry• Operational efficiency

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National Defence Service Commission

• Interim National Defence Service Commission( INDFSC) established by Executive Authority during 21 September 2010 to:--Investigate, provide expert advice and make recommendations regarding the conditions of service of the members of the SANDF-Make recommendations to the Executive Authority on the establishment of a permanent National Defence Force Service Commission

• The detail regarding the delivery on the above objectives is contained in contained in the separate Appendix C.

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Overview of DOD’s Public Private Partnerships

• Administration Programme: Human Resource sub-programme: Project Brilliant

• Air Defence Programme: Use of Air Force Base Ysterplaat

• Maritime Defence– Sea Safety Training Centre– New Navy HQ and Naval Mess

• SAMHS: Clinical Service Delivery

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Concluding Remarks• It is confirmed that this plan is aligned to the requirements of

Regulation 5 read together with section 52 of the PFMA.• There has been remarkable improvement in the quality of the

plans• The plans provided have been aligned with the current MinDef

Priorities as well as Cabinet Cluster priorities, though some improvement is required to ensure focused evidenced based performance reporting.

• The DOD is systematically addressing the strategic issues that pose a threat the full realisation of the defence outputs whilst successfully meeting its ordered commitments.

• It is believed that through this strategic Plan, the organs of state reporting to the Minister will be collaboratively and synergistically do things differently to achieve more with less

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Progress Made in Realising MOD MV Priority 1: Establishment of the DMV

• On 28 December 2009, the President of the Republic proclaimed the Department of Military Veterans through Proclamation No 92 of 2009 published in the Government Gazette No. 32844 dated 28 December 2009.

• This Proclamation provides that the Department of Military Veterans shall be a stand alone department resorting under the Minister of Defence and Military Veterans.

• Department of Military Veterans shall have its own budget vote and an Accounting Officer (Director-General).

• In the interim, the budget for 2010/11 is housed in the Administration programme In the interim, the budget for 2010/11 is housed in the Administration programme of the DOD. It is however, ring-fenced.of the DOD. It is however, ring-fenced.

• The Department of Military Veterans will be responsible for the overall management and administration of military veterans’ affairs including, but not limited to, developing policy, legislation, programmes, benefits and services that facilitate the transition from active service to civilian life.

• In this FY in the Department will be focusing on putting in place the macro-organisational structure, policies and procedures. It is also envisaged that the Dept will have a strategic plan by the end of the financial year.

QUESTIONS?