national conventional arms control committee 2010 annual report briefing to the jscd parliament,...

NATIONAL NATIONAL CONVENTIONAL ARMS CONVENTIONAL ARMS CONTROL COMMITTEE CONTROL COMMITTEE 2010 ANNUAL REPORT2010 ANNUAL REPORT

Briefing to the JSCD Briefing to the JSCD

Parliament, Cape TownParliament, Cape Town

09 June 201109 June 2011

INTRODUCTIONINTRODUCTION

To provide an overview of the NCACC’s 2010 Annual To provide an overview of the NCACC’s 2010 Annual Report to Parliament.Report to Parliament.

REPORTING REQUIREMENTSREPORTING REQUIREMENTS The NCACC reporting obligations are prescribed in The NCACC reporting obligations are prescribed in

Section 23 of the NCAC Act. Section 23 of the NCAC Act.

Ito this Act the NCACC is required to provide quarterly Ito this Act the NCACC is required to provide quarterly and annual reports to the Parliament.and annual reports to the Parliament.

The content of the annual report must reflect The content of the annual report must reflect information in relation to Country, Category and Value.information in relation to Country, Category and Value.

The information that the NCACC discloses should not The information that the NCACC discloses should not compromise the security, commercial and other compromise the security, commercial and other confidential interests.confidential interests.

This Annual Report that the NCACC presents is prepared This Annual Report that the NCACC presents is prepared in a manner that fully complies with the set reporting in a manner that fully complies with the set reporting

obligations of the NCACCobligations of the NCACC. .

NCACC’s LEGISLATIVE NCACC’s LEGISLATIVE FRAMEWORK AND FRAMEWORK AND

MANDATEMANDATE The NCACC is established in terms of the NCAC Act The NCACC is established in terms of the NCAC Act

which forms the basis for the NCACC’s existence and which forms the basis for the NCACC’s existence and operation.operation.

The Act also establishes supporting structures.The Act also establishes supporting structures.

The Mandate of the NCACC is to regulate the The Mandate of the NCACC is to regulate the development, manufacture, possession, trade and development, manufacture, possession, trade and transfer of conventional arms in South Africa.transfer of conventional arms in South Africa.

The Act provides for detailed functions of the NCACC.The Act provides for detailed functions of the NCACC.

Over and above this, the NCACC administers the Over and above this, the NCACC administers the Regulation of Foreign Military Assistance Act (RFMA) Regulation of Foreign Military Assistance Act (RFMA) and the Prohibition of Mercenary Activities Act.and the Prohibition of Mercenary Activities Act.

COMPOSITION OF THE COMPOSITION OF THE NCACCNCACC

The NCACC is a Cabinet Committee The NCACC is a Cabinet Committee sui generis sui generis appointed specifically by the President.appointed specifically by the President.

The NCACC comprises 7 Cabinet Ministers and 3 Deputy The NCACC comprises 7 Cabinet Ministers and 3 Deputy Ministers.Ministers.

By law the positions of Chairperson and Deputy By law the positions of Chairperson and Deputy Chairperson are held by Cabinet Ministers who do not Chairperson are held by Cabinet Ministers who do not have line function interests in the conventional arms have line function interests in the conventional arms business.business.

Min J.T. Radebe (Chair) and Min G.N. Pandor (Dep Chair)Min J.T. Radebe (Chair) and Min G.N. Pandor (Dep Chair)

COMPOSITION OF MEMBERSCOMPOSITION OF MEMBERS

Min L.N. SisuluMin L.N. Sisulu Min R. DaviesMin R. Davies Min S. CweleMin S. Cwele Min M. Nkoana- Min M. Nkoana-

MashabaneMashabane

Min N. MthethwaMin N. Mthethwa Dep Min T.S.P. MakwetlaDep Min T.S.P. Makwetla Dep Min E. EbrahimDep Min E. Ebrahim Dep Min N.M. NeneDep Min N.M. Nene

STRUCTURES OF THE STRUCTURES OF THE NCACCNCACC

For the NCACC to deliver on its mandate, the following For the NCACC to deliver on its mandate, the following structures are established under the NCACC:structures are established under the NCACC:

Directorate Conventional Arms Control to provide the Directorate Conventional Arms Control to provide the Secretariat and Administrative support.Secretariat and Administrative support.

The Inspectorate to look after matters of compliance.The Inspectorate to look after matters of compliance.

The Scrutiny Committee that considers applications The Scrutiny Committee that considers applications and makes recommendations to the NCACC. and makes recommendations to the NCACC.

Over and above these structures, the NCACC is Over and above these structures, the NCACC is supported by various government departments and supported by various government departments and agencies which, agencies which, inter aliainter alia, include the SAPS, DOD, , include the SAPS, DOD, DIRCO, SSA, DTI, NPA and CustomsDIRCO, SSA, DTI, NPA and Customs. .

FUNCTIONING OF THE FUNCTIONING OF THE NCACCNCACC

The NCACC meets on monthly basis to consider arms The NCACC meets on monthly basis to consider arms transfer applications lodged by the defence industry transfer applications lodged by the defence industry with the Secretariat. with the Secretariat.

In deciding on these applications, the NCACC considers, In deciding on these applications, the NCACC considers, in contextin context, and in aggregate, a range of factors as , and in aggregate, a range of factors as provided for in Section 15 of the Act (Guiding provided for in Section 15 of the Act (Guiding Principles).Principles).

On the basis of its consideration, the NCACC either On the basis of its consideration, the NCACC either Approves or Denies permit applications.Approves or Denies permit applications.

The NCACC has a mechanism of responding to The NCACC has a mechanism of responding to developing situations in countries. Using the developing situations in countries. Using the departments inputs (DIRCO, SSA and DI) ,if there is a departments inputs (DIRCO, SSA and DI) ,if there is a development of concern in a particular country, the development of concern in a particular country, the NCACC immediately places applications to that country NCACC immediately places applications to that country on HOLD.on HOLD.

FUNCTIONING OF THE FUNCTIONING OF THE NCACCNCACC

The NCACC monitors such a situation. If it further The NCACC monitors such a situation. If it further deteriorates, the NCACC DENIES authorization to such deteriorates, the NCACC DENIES authorization to such countries.countries.

In the year under review, the NCACC invoked this In the year under review, the NCACC invoked this mechanism and placed on HOLD authorization mechanism and placed on HOLD authorization applications to various countries. applications to various countries.

In order to facilitate trade, the NCACC delegates some In order to facilitate trade, the NCACC delegates some

its powers particularly to the Secretariatits powers particularly to the Secretariat

The Secretariat executes the decisions of the NCACC.The Secretariat executes the decisions of the NCACC.

The Inspectorate checks for compliance with decisions.The Inspectorate checks for compliance with decisions.

LEGISLATIVE LEGISLATIVE DEVELOPMENTSDEVELOPMENTS

In the period under review, the following legislative In the period under review, the following legislative developments took place:developments took place:

Prohibition of Mercenary Activities Act Prohibition of Mercenary Activities Act . Signed into law in . Signed into law in November 2007. Regulations to implement this Act are in November 2007. Regulations to implement this Act are in the approval stage.the approval stage.

NCAC ActNCAC Act. The revised Regulations have been completed . The revised Regulations have been completed in line with the NCAC Amendment Act are being processed in line with the NCAC Amendment Act are being processed for promulgation.for promulgation.

PROCESSED PERMIT PROCESSED PERMIT APPLICATIONSAPPLICATIONS

In the period under review, the NCACC considered and In the period under review, the NCACC considered and approved the following permits:approved the following permits:

Registration Permits Registration Permits 6565

Marketing Permits Marketing Permits 3939

Contracting Permits Contracting Permits 345345

Export Permits Export Permits 3 5363 536

Import PermitsImport Permits 2 5922 592

Conveyance Permits Conveyance Permits 1010

VALUES OF PERMITS VALUES OF PERMITS ISSUEDISSUED

The total value of permits issued by the NCACC in The total value of permits issued by the NCACC in 2010 is as follows:2010 is as follows:

Contracting Permits - R 27,7 billion in 83 Contracting Permits - R 27,7 billion in 83 countries.countries.

Export Permits - R 8,3 billion in 92 countriesExport Permits - R 8,3 billion in 92 countries

Import Permits - R 3,9 billion from 69 Import Permits - R 3,9 billion from 69 countries.countries.

CATERGORISATION OF CATERGORISATION OF WEAPONSWEAPONS

Is the tool used to understand the lethality of an Is the tool used to understand the lethality of an equipment and these are:equipment and these are:

Category A.Category A. Comprising sensitive major conventional Comprising sensitive major conventional implements of war that could cause heavy personnel implements of war that could cause heavy personnel casualties and/or major damage and destruction to materiel, casualties and/or major damage and destruction to materiel, structures, objects and facilities. structures, objects and facilities. Examples are fighter Examples are fighter aircraft, submarines, explosives, missiles, bombs, artillery aircraft, submarines, explosives, missiles, bombs, artillery guns, tanks, weapons with a calibre of 12,7mm (0, 5 inch) guns, tanks, weapons with a calibre of 12,7mm (0, 5 inch) and larger, etc.and larger, etc.

Category B.Category B. Comprising all types of handheld and portable Comprising all types of handheld and portable assault weapons of a calibre smaller than 12,7mm (0,5 assault weapons of a calibre smaller than 12,7mm (0,5 inch). inch). Examples are assault rifles, machine guns, Examples are assault rifles, machine guns, ammunition for the weapons, etcammunition for the weapons, etc..

Category C.Category C. Comprising all support equipment usually Comprising all support equipment usually employed in the direct support of combat operations that employed in the direct support of combat operations that have no inherent capability to kill or to destruct. have no inherent capability to kill or to destruct. Examples Examples are radio transceivers, radars, unmanned air vehicles, are radio transceivers, radars, unmanned air vehicles, simulators, etc.simulators, etc.

Category D.Category D. Comprising all purposely designed de-mining, Comprising all purposely designed de-mining, mine clearing and mine detection equipment and all non-mine clearing and mine detection equipment and all non-lethal pyrotechnical and riot control products. lethal pyrotechnical and riot control products. Examples are Examples are mine detectors, riot control agents, flares, etc.mine detectors, riot control agents, flares, etc.

Category E.Category E. Comprising all those armaments and related Comprising all those armaments and related

products that are not allowed to be sold. products that are not allowed to be sold. Examples are anti-Examples are anti-personnel mines, incendiary weapons, laser weapons, etcpersonnel mines, incendiary weapons, laser weapons, etc..

Category G.Category G. Comprising all purposely built armaments Comprising all purposely built armaments

manufacturing equipment, plants, facilities and test ranges manufacturing equipment, plants, facilities and test ranges for the manufacture, development, maintenance, test, for the manufacture, development, maintenance, test, upgrade and refurbishment of armaments products. As well upgrade and refurbishment of armaments products. As well as all purposely-developed techniques and services, other as all purposely-developed techniques and services, other than contractual after-sales service, that has a relevance to than contractual after-sales service, that has a relevance to the development, use, maintenance, assistance and advice the development, use, maintenance, assistance and advice in relation to armaments and related productsin relation to armaments and related products..

COUNTRIES EXPORTED TOCOUNTRIES EXPORTED TOCOUNTRYCOUNTRY VALUE (rounded VALUE (rounded

Rm)Rm)Algeria Algeria 158158

AngolaAngola 55

Argentina Argentina 22

AustraliaAustralia 66

AustriaAustria 2323

AzerbaijanAzerbaijan 119119

COUNTRIES EXPORTED COUNTRIES EXPORTED TOTO

COUNTRYCOUNTRY VALUE (rounded VALUE (rounded Rm)Rm)

BahrainBahrain 605605

BangladeshBangladesh 00

BelgiumBelgium 1414

BotswanaBotswana 0, 1 0, 1

BrazilBrazil 1111

BulgariaBulgaria 00

Burkina FasoBurkina Faso 7575

Burundi Burundi 3030

CambodiaCambodia 0,30,3

CanadaCanada 109109



ChileChile 00

Colombia Colombia 5353

Congo (DRC)Congo (DRC) 44

Czech-Republic Czech-Republic 0,20,2

DenmarkDenmark 99

EcuadorEcuador 3434

Egypt Egypt 9797

Equatorial GuineaEquatorial Guinea 66

Finland Finland 211211

France France 3939



GabonGabon 6060

Germany Germany 131131

GuatemalaGuatemala 11

HungaryHungary 00

India India 149149

IndonesiaIndonesia 4747

IraqIraq 0,080,08

Ireland Ireland 194194

Italy Italy 4545

JapanJapan 00

Jordan Jordan 2828


COUNTRYCOUNTRY VALUE (rounded Rm)VALUE (rounded Rm)Kenya Kenya 3030

KuwaitKuwait 5252

LesothoLesotho 55

LibyaLibya 6969

MacedoniaMacedonia 22

MalaysiaMalaysia 9292

MexicoMexico 44

MozambiqueMozambique 22

NamibiaNamibia 77

NepalNepal 55

New ZealandNew Zealand 1414


Rm)Rm)NigerNiger 00

NigeriaNigeria 2222

NorwayNorway 5151

OmanOman 4646

PakistanPakistan 3535

PRC PRC 6161

PeruPeru 55

Philippines Philippines 3535

PolandPoland 0,10,1

Portugal Portugal 0,70,7

QatarQatar 22

Republic of Congo Republic of Congo (Brazzaville)(Brazzaville)

112112


Rm)Rm)Rep of KoreaRep of Korea 2020

Romania Romania 1717

Russian Federation Russian Federation 11

RwandaRwanda 10 10

Saudi Arabia Saudi Arabia 6868

SenegalSenegal 2323

SeychellesSeychelles 0,0180,018

Singapore Singapore 77

Slovak RepublicSlovak Republic 44

Slovenia Slovenia 4747

Somalia (UN Operation)Somalia (UN Operation) 5656



SpainSpain 137137

Swaziland Swaziland 1111

SwedenSweden 647647

Switzerland Switzerland 1111

Syria (UN Operation)Syria (UN Operation) 88

Taiwan Taiwan 66

Tanzania Tanzania 99

Thailand Thailand 66

TunisiaTunisia 0,20,2

Turkey Turkey 4949

Uganda Uganda 2727



UkraineUkraine 00

UAEUAE 578578

UKUK 298298

USAUSA 3 6743 674

Venezuela Venezuela 0,30,3

VietnamVietnam 11

YemenYemen 373373

Zambia Zambia 1212

Total R millionTotal R million 8 3298 329

PEACEKEEPING, MILITARY PEACEKEEPING, MILITARY EXERCISES, HUMANITARIAN EXERCISES, HUMANITARIAN AID & MILITARY TRAININGAID & MILITARY TRAINING

CountryCountry CatCat RR PurposePurpose Op/Ex NameOp/Ex Name

CARCAR AA 00 Peacekeeping Peacekeeping VIMBEZELAVIMBEZELA

BB 00 PeacekeepingPeacekeeping VIMBEZELAVIMBEZELA

CC 00 PeacekeepingPeacekeeping VIMBEZELAVIMBEZELA

DRCDRC AA 00 PeacekeepingPeacekeeping MONUCMONUC

BB 00 PeacekeepingPeacekeeping MONUCMONUC

CC 00 PeacekeepingPeacekeeping MONUCMONUC

GermanyGermany BB 00 Joint Mil ExJoint Mil Ex GOOD HOPEGOOD HOPE

PEACEKEEPING, MILITARY PEACEKEEPING, MILITARY EXERCISES, HUMANITARIANEXERCISES, HUMANITARIAN AID & MILITARY TRAINING AID & MILITARY TRAINING

CountryCountry CatCat RR PurposePurpose NameName

NetherlandsNetherlands AA 00 CompetitionCompetition World ShootWorld Shoot

BB 00 CompetitionCompetition World ShootWorld Shoot

SudanSudan BB 00 PeacekeepingPeacekeeping UNAMIDUNAMID

CC 00 PeacekeepingPeacekeeping CORDITECORDITE

SomaliaSomalia DD 00 PeacekeepingPeacekeeping AU PKOAU PKO

UKUK BB 00 Joint Mil ExJoint Mil Ex AFR THORNAFR THORN

USAUSA CC 00 Joint Mil ExJoint Mil Ex MONASTERYMONASTERY

EXPORT GROWTHEXPORT GROWTH(Actual Values)(Actual Values)

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2006 2007 2008 2009 2010

Rbn

BUSINESS PROFILE BUSINESS PROFILE (R Billion)(R Billion)

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2006 2007 2008 2009 2010

Contracts

Exports

Imports

Thank YouThank You

national conventional arms control committee 2010 annual report briefing to the jscd parliament,...

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