Status of the Department of Defence, with the Minister and Deputy Minister

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Defence and Military Veterans

27 May 2020
Chairperson: Mr V Xaba (ANC)
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Meeting Summary

Video: Portfolio Committee on Defence and Military Veterans, 27 May 2020
Audio: DoD: Human Resource Plan; Rejuvenation plan & investigations into Irregular, Fruitless and Wasteful Expenditure; DMV Budget: Committee Report

In a virtual meeting, the Committee was briefed on the status of the Department of Defence. The Minister and Deputy Minister were present.

In a briefing on the SANDF human Resources structure and force rejuvenation, Members heard the Defence Force was in a critical state of decline evidenced by force imbalances, unaffordability of its main operating systems, the inability to meet current standing defence commitments, and the lack of critical mobility. The Minister added that there was a collapse in the defence industry because of the lack of budget cuts in the Defence Force, and with no cash injection it was difficult to maintain the industry. The Department had taken a position of no new acquisitions, no partial acquisitions for the SANDF, and, no renewal of technology. Of equal concern to Members besides the standstill in technology development and upgrade in the Defence Force, was that Sovereign technology could no longer be guaranteed.

Very little could be done about rejuvenating the Defence Force without a cash injection – something that the National Treasury had as yet not agreed to - so support was needed and for the parties concerned to speak with one voice about addressing the concerns. The Committee acknowledged that the report was a depressing one and decided that it would be appropriate to schedule another meeting where Members would be allowed to ask questions. A postponement was proposed and accepted.

The Committee agreed that another date would be found where it could properly engage in discussion on the briefings received in the meeting today. Some Members found it frustrating to schedule a meeting and not be able to ask questions to the Department. Members however did express that the Defence Force is in a state of collapse and there is an urgent need to rescue it before it gets too late. The lack of synergy between SANDF and Treasury is of great concern.

The Defence and Military Veterans (DMV) Budget Vote Report was adopted

Meeting report

The Chairperson welcomed Committee Members and thanked them for being able to attend the virtual meeting during the COVID-10 pandemic crisis.

SANDF Human Resources Structure and Force Rejuvenation

Dr Janse van Rensburg, Committee Researcher, presented the Report to the Committee particularly the findings. He said that the aim of the Department of Defence (DOD) after 1994 was to shrink the size of the military as there were no main military threats at that time.

He mentioned that the Defence budget was very important. He compared the figures that were proposed in 1998 where there was a proposal to have a permanent force of only 22 000 members and a reserve force of 70 000. The second option was to have a force of 36 000 permanent members and 98 000 reserve force members. The third option had a 26 000 permanent member force and option 4 was a defensive operational strategy with a lesser number on the defense force.

The Defence Review in 2015 had four milestones in which the different milestones were explained and the amount of personnel that would be employed under each milestone was outlined. In 2017 the National Treasury pointed out the unwillingness of the DOD to deal with the HR (human resource) problems and the rising cost of employees.

 In 2018/19 there was significant over expenditure on compensation of employees. The DOD has over expenditure and it is not a good sign because the problem has been recurring especially in the area of compensation of employees. The Minister correctly identified HR as a Ministerial priority but it has been taking long to effect and it raises the question as to why it is not being implemented as soon as possible.

The issue of organisational renewal is closely linked to the need for the rejuvenation of the Defence Force. Internationally most military organisations work on a principle of ‘up and out’ because militaries are shaped in a pyramid form and not everybody can progress to the top. For this to be implemented there is a need for people who do not rise up in the ranks to exit the system. Currently the DOD does not have an exit system in place.

The National Treasury last allowed for early retirement without penalties but the DOD did not implement this measure and the reasons are only known by the Department. The DOD has an ageing defense force and the average age of infantry members is 37, and this is disastrous because at that age most of them are no longer fit and active to be in the infantry and most of them have families. Also, an ageing force is expensive to maintain in the long run. In peacetime most militaries are often bloated but in South Africa there is still a top heavy military structure.

Minister Remarks

Ms Nosiviwe Mapisa-Nqakula, Minister of Defence and Military Veterans, said that the pronouncements made in the 2015 Defence review have not been implemented as yet. The presentation shall provide clarity and there have been engagements between the DOD and the Treasury to find a solution to the issue of funding together with the Department of Public Works and Administration. The issue of funding is of paramount importance. There is also the reprioritisation of funds so as to compensate employees. She also said that there were inaccuracies in the report by the researcher because the DOD does have an exit plan which is the Military Exit Mechanism, however this Military Exit Mechanism should be initiated by an employee and it has been abused by those with power because they were getting rid of the members they did not want. Because of this she has decided to retain some of the skills acquired and they are developing a new policy.

On the matter of the Defence Review, it has caused problems because the National Treasury keeps referencing the 1998 figures and t the Defence Review was adopted by Cabinet in 2015. She said that the SANDF is unique and has its own sensitivities and integrated seven different entities into a single defence force so there is a need for understanding that the SANDF is still fairly young and new and there is no need for comparison because what is in other countries is not present in South Africa.

She said that the reason why there is a collapse in the defence industry is because of the lack of budget cuts in the Defence Force. If there is no cash injection it is difficult to maintain the defence industry, and the challenges facing DENEL have an impact on smaller companies because they were unable to pay them on time. She concluded by saying that some of the remarks by the Researcher were interesting and there is a need for further discussions.

Status of the DoD

General Gardner presented on behalf of the Defence Force and said that the Defence Force is in a critical state of decline which is characterised by force imbalances, unaffordability of its main operating systems, the inability to meet current standing defence commitments, and the lack of critical mobility. Left unchecked and at the present funding levels, this decline will severely compromise and further fragment South Africa’s defence capability.

The challenges of the South African National Defence Force (SANDF) were clearly defined. Rejuvenation of the HR component of the SANDF is premised on alignment of the HR component to the combat profile to meet military operational requirements and to prevent the stagnation by filling vacancies that occur as a result of attrition. He mentioned that HR and rejuvenation were of limited scope compared to what the Department was working on.

The position was no new acquisitions and no partial acquisitions for the SANDF, and, no renewal of technology. The DOD will experience declining equipment availability for operations due to poor serviceability and inadequate maintenance owing to ageing. The DOD PME (Prime Mission Equipment) is characterised by growing obsolescence in combat equipment and systems leading to incomplete or partial capabilities. This also meant reduced overall combat readiness.

The relative decline in resource allocation to the operating portion of the budget significantly inhibits the ability of the SANDF to provide effective training for individuals, single service and joint domains. Training has been significantly reduced. The training Centres of Excellence are losing the ability to offer and execute required quality combat training to enable effective operations. A Doctrinal Knowledge gap becomes an obvious risk.

Military capabilities are not prepared to the required level of combat readiness leading to the inability to execute the expected range of operations. This introduces significant risk in terms of command and control and safety.

The relative underfunding of the DOD facilities has resulted in the degradation of the Property Portfolio.  Combat readiness is extremely affected because the endowment Property Portfolio cannot be optimally utilised (OHS challenges) due to the inability of the Department of Public Works to maintain them. Internal capacity has been established but requires professionals for planning and quality assurance – the funding question. At this stage they are responsible for maintenance and refurbishment of endowment properties.

South Africa used to be amongst the best in the world with regard to technological development. The continuous need to renew, maintain and modernise landward, aerospace and maritime technology is seriously affected. However, the need to provide a real time operating picture to enhance “boots on the ground” during military operations remains. Sovereign technology can no longer be guaranteed. Outdated technology providing a less winning edge may continue to be utilised during military operations.

The current DOD enterprise architecture is not coherent, fit for purpose and compatible with modern information systems and therefore does not provide sufficient real-time management information for decision making and compliance to governance requirements.

Discussion

The Chairperson raised concerns that the report was a depressing one and it would not be appropriate to have a discussion on the same day, it was better to reschedule another meeting where Members would be allowed to ask questions. He proposed that a postponement be made and tabled the proposition to Committee Members.

Mr S Marais (DA) said that it is frustrating to schedule a meeting and not be able to ask questions to the Department. This was a repetition of what has happened in the past and there is no change of character. He expressed support for the position that the Defence Force needs to get more money but if the National Treasury is not releasing the funds then there is no progress, and there must be only one voice that addresses the issues affecting the Defence Force and that voice is Treasury but there was a situation where the Defence Force and Treasury are giving different opinions and the issues are not being addressed timeously.

The Chairperson asked the Minister to give her opinion regarding the issues that were being raised in the report and how the different approaches of the Treasury and The Defence Force have caused more problems which are visible in each and every aspect of the Defence Force. The Defence Force is actually collapsing because they are not going down gradually but are moving down at a faster rate. He also said that the Defence Force is in a bad state and the effects will be painful because the Defence is losing its sovereign capability- something that will take many years to rebuild.

The Minister said that she agreed with the concerns raised by the Chairperson as there is little that can be rejuvenated in the Defence Force without a cash injection from the Treasury and this means that there is a need for support. The Defence Force cannot cut jobs at the moment considering the unemployment rate in the country. Compensation of employees is getting bigger not because there has been more employment but they cannot just simply cut jobs. She also mentioned that it is a bit disturbing that with all the challenges that they are facing, there are certain departments in the Defence Force that will declare underspending at the end of the financial year.

She said that there is a need for a longer meeting where discussions should be made especially when it comes to cutting numbers in the SANDF. It should be a collective decision by all entities not merely because there is no funding. She mentioned that there are properties that are owned by the SANDF and they can be used for income generation and it will lessen the burden on the Treasury.

The Secretary of Defence agreed that there is a need for more time to discuss the state of affairs at the SANDF so as to get further input and more understanding.

Mr W Mafanya (EFF) seconded the idea of having a later meeting to deal with the issue of the SANDF. He did mention that the Defence Force is in a state of collapse and there is an urgent need to rescue it before it gets too late. The lack of synergy between SANDF and Treasury is of great concern.

Mr Thabang Makwetla (Deputy Minister) also gave comments on the matter and said that he supported the idea of having a day that can be scheduled so as to have more discussion on the state of affairs at the SANDF. He said that it would be helpful to have comments from Members so that they can be dealt with at the workshop. The workshop must address all the issues raised by Members.

The Minister thanked the Chairperson for the meeting and said that she is looking forward to the discussions that will take place once the date has been finalised. The SANDF has been doing well in terms of dealing with the COVID-19 pandemic. Currently the SANDF members are in all nine provinces of the country and members from the military health services have been deployed. Engineers have also been deployed in different areas where water is required and the Building of Bridges programmes is still underway. The entire defence force is mobilised and is on standby because the challenges are going to be bigger under level 3.

The Chairperson said the irregular expenditure should only be removed from financials only when it has been condoned.

The Chairperson asked the Minister if a month would be sufficient in tabling the report.

The Minister asked for time to consult with her department and because of the COVID-19 pandemic they have not been working with full capacity staff.

The Chairperson asked for the presentation on the Defence and Military Veterans (DMV) Budget Vote Report.

Defence and Military Veterans (DMV) Budget Vote Report

During deliberations with the DMV on 15 May and 22 May 2020, Committee Members made several observations related to the budgetary allocation, the performance indicators and the targets in the Strategic Plan and the Annual Performance Plan of the Department.

The Committee enquired about the internal measures the Department had taken in order to combat the COVID-19 pandemic. The DMV indicated that they have fumigated their offices at their headquarters, have deep cleaned their office carpets, started the procurement process for Personal protective Equipment for employees, conducted fever screening, and created a DMV resilience and coronavirus email address for employees.

The amendments to the Military Veterans Act have been an ongoing issue for at least the past five years and the Committee enquired when the Department will introduce the Amendment Bill to Parliament. The Department in their written response indicated that three options have been developed to amend the act to address the lacunas identified and stressed that amending an act is a lengthy process which requires research, analysis and consultation.

The Committee noted that the Department is struggling to roll out the public transport benefit since its inception. It was indicated that the main challenge has been the capacity in the DMV to deliver on this benefit. The Department has since (from the 2019/20 financial year) been consulting with the Department of Transport as the custodians of public transport in the country to partner in order to ensure that the benefit is delivered to the Military Veterans. The target is to complete the policy within this financial year 2020/21.

The finalisation of the National Database has been a critical issue for years. The Committee reminded the Department that they have been set deadlines and that they are due to present a progress report at the next quarterly meeting. The Department responded in writing and their database has been compared with those of the Department of Home Affairs and the Department of Defense’s Human Resource records. The database will also be separated to reflect active and inactive beneficiaries, and that further categorisation of the database such as deceased and former force categories is being conducted.

The Committee enquired about the proposed Change Management strategy to assist them to turn the Department around. Given the historical underperformance and underspending of the Department the Committee felt that without the implementation of such a strategy, the Department will not be able to perform effectively.   

Regarding the Zeal Health claim against the Department, the Committee stressed that since this matter has been coming on since at least 2016, it wants the Department to update it on this matter on a regular basis till the case is resolved.

Mr D Ryder (DA, Gauteng) said that the Report was welcomed.

The Budget Vote Report was adopted

The meeting was adjourned.

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