REPORT TO THE JOINT STANDING COMMITTEE ON DEFENCE
6.The purpose of this document is to inform the members of the Joint Standing Committee of Parliament for Defence on the status of the Defence Secretariat.
7. This document addresses the following aspects:
a) The evolving mandate.
b) The evolving functional structure.
c) Successes to date.
d) Oversight Requirements.
e) Head of Department, Policy Advisor, Accounting Officer Requirements
f) Defence Secretariat Future Next Four to Five Years.
g) Interventions required from different role-players.
THE EVOLVING MANDATE
8. The Constitution Act, 1996 provides for the establishment of a civilian secretariat under the direction of the Minister of Defense (Appendix A). The mandate of the Secretariate for Defence was formalised through the Defence Amendment Acts. The Defence Amendment Act 1996 identified the duties of the Secretatiate whilst the Chief of the National Defence Force remained the Head of Department and Accounting Officer. The Defence Amendment Act 1997 provided for the duties of the Secretariate for Defence as Head of Department and Accounting Officer. The Defence Bill 2000 seeks to formalise the duties of the Secretary for Defence as currently directed by the Minister of Defence (Appendix A).
9. In essence these duties are:
a) The Secretary shall -
i) as head of department be responsible for the efficient management and administration of that Department and shall perform the functions that are prescribed for heads of department in general as well as those specifically prescribed for the head of department;
ii) as accounting officer of the Department execute the responsibility in respect of the Department vote of accounting for all state monies received and all payments made by him or her as well as for the acquisition, receipt, custody and disposal of all state property in accordance with the Public Finance Management Act;
iii) as head of the Defence Secretariat be the principal departmental adviser to the Minister with regard to defence policy matters;
iv) with regard to the performance of his or her functions as Head of Department and Accounting Officer of the Department of Defence in respect of the Defence Force provide the Chief of the National Defence Force with delegations and instructions:
v) be responsible for the management and the administrative control over the staff of the Defence Secretariat including their effective utilisation and training and for the discipline of persons employed in terms of the Public Service Act;
vi) advise the Minister on any other matter referred by the Minister to the Secretary;
vii) perform such duties and functions as may form time to time be assigned or referred to the Secretary by the Minister in particular those necessary or expedient to enhance civil control by::
(1) Parliament over the Department
(2) Parliamentary Committees having oversight over the Department or part thereof; and
(3) The Minister over the said Department.
viii) monitor compliance with policies and directions issued by the Minister to the Chief of the Defence Force and report thereon to the Minister.
EVOLVING FUNCTIONAL STRUCTURE
10. The Department of Defence has undergone major restructuring from 1994 under the direction of the Minister of Defence. The events resulting in major structural shifts changing the functional configuration (capacities) were:
a) Initial establishment of the Secretariat according to the Balance Model (l99~).
b) Transfer of the Head of Department and Accounting Officer functions from the Chief of the National Defence Force to the Secretary for Defence (1997).
c) Empowering the Chief of the National Defence Force to effect command and control after OPERATION BOLEAS (1999).
d) Consolidation of the supporting functions reporting to C SANDF (2000).
11. The statutory requirements of the Public Service Act and the Public Finance Management Act and the related Regulations will require further structural adjustments to be affected in the near future.
12. The extent to which control over the affected functions and related capacities have shifted between the Secretary for Defence and the C SANDF is indicated in Appendix B. The existing capacity of the Secretary for Defence is used to analyse the extent to which the Secretary for Defence can perform his current duties.
SUCCESSES TO DATE
13. The major successes of the Defence Secretariat from its inception to date are highlighted below, grouped under the main divisions/functions reporting to the Secretary for Defence.
14. Policy and Planning
a) Finalisation of the Defence White Paper, Defence Review and Defence Plan.
b) Adoption of various Bi-lateral and Multi-lateral agreements.
c) Launching and phased implementation of the Civic Education Programme.
d) Drafting and wide-ranging consultation on the Defence Bill.
e) Steady progress towards the balancing of the personnel budget.
f) On Negotiations with NSF recognition of Service Pensions.
g) Successful launching of Foundation Training.
h) Implementation of equitable merit bonuses per rank per race.
a) Transfer of the command of the Finance function from C SANDF to the SecDef
b) Demilitarisation and professionalisation of finance functionaries.
c) Reduction of the finance personnel from 1675 to 1050 (target 950).
d) Reduction of the costs of the finance service from RM 165 (1997 rands) to Rm 130 (RM 95 in 1997 rands).
e) Improved transparency of Defence programme budget.
f) Consistency of defence policy, plan, programme and budget.
g) Improved expenditure control.
h) Improved reporting and prosecuting of financial misconduct (unauthorized, irregular. wasteful and fruitless expenditure).
i) Improved reporting of financial statements (income statement, balance sheet and cash flow statement).
j) Improved accountability management and productive relations with Auditor-General.
a) Transfer of the Acquisition Directorates from the Army, Air Force. Navy to the Defence Secretariat (Acquisition) has been completed.
b) Reallocation of the capital funds in the Special Defence Account (SDA) from the Services to the Defence Secretariat (Acquisition Division) has been completed.
c) Planning of all future capital requirements is under configuration in the acquisition master plan (SCAMP), jointly approved by the SANDF and the Secretary for Defence.
d) Transfer of the procurement function from C Log to C Acquisition with respect to the pre-order has been completed.
e) Reprioritisation of the equipment requirement as specified in the SDA is completed.
f) Strategic Defence Package, which entails the main capital requirements of
the SAAF and the Navy-, has been signed. Construction has already commenced.
g) The acquisition approval for the intercontinental aircraft capability of the SAAF has been obtained.
a) Total audit coverage of department occurs once every three years.
b) There is an increased amount of inspections on combat readiness.
c) The Institutionalisation of the TQM approach in the entire Department is a joint project of the Inspectorate and CPP.
d) Dynamic attitudinal surveys are being performed for all clients by the SubDirectorate Effect Analysis.
e) An Anti-fraud strategy and plan has been adopted and we are busy with the roll-out of this plan.
f) The Defence Audit Committee was established in 2000 50 as to provide independent civil control over the audit strategy.
g) Civilianisation of the Internal Audit functionaries was completed simultaneously with the demilitarisation of finance functionaries.
18. Equal Opportunity & Affirmative Action
a) In general, here, the policy programmes and plans are well developed and are in place. The Equal Opportunity and Affirmative Action (EO and AA) policy has been finalised and will be subject soon to the first scheduled review. Further, the Racism policy is also finalised. The draft on gender and sexism and sexual harassment policy to be finalised before year-end.
b) The Gender forum has been established.
c) A Disability forum was established (as a tentacle to President's Office).
d) We have established an EO Advisory Board for the Minister.
e) Development, research and evaluation Is ongoing.
f) Human and cultural development is a major theme with:
(1) 425 general and flag officers sensitised through awareness training.
(2) 349 senior NCOs sensitised through awareness training.
(3) 279 unit commanders and middle managers sensitised through awareness training.
(4) 58 equal opportunity advisers have been trained in USA through a 16-week course.
(5) 46 EO assistants have been locally trained in a 4-week course.
g) In the area of EO and AA research, three annual research surveys completed and published:
i) Women in combatant positions (completed and published).
ii) Gays and lesbians in the DOD (completed and await publication).
h) The monitoring and evaluation of our programmes took the form of:
i) 24 General Support Bases (GSBs) were visited; commanders and advisers have and are being continually advised on LO and AA issues that need remedial interventions.
ii) All GSBs and units are being monitored and evaluated for implementation of EO and AA policy.
19. We have over the years submitted a number of reports to Parliament as part of our responsibilities. You are familiar with these, as they have passed through the various parliamentary committees. In addition there are a number of mechanisms and procedures that have been put into place to ensure that the principles of civil control are given effect. These are explained below, grouped also according to major divisions/functions reporting to the Secretary for Defence.
20. Policy and Planning
a) The Human Resources budget for all budget holders is controlled here.
b) The task of ensuring SANDF compliance with national legislation, White Papers is performed within this division.
c) Further, the DoD Plan is evaluated for compliance with the state policy and legislative framework.
d) The submission of defence legislation for Parliamentary approval is coordinated.
a) The Transfer of finance function to Secretary for Defence, as Accounting Officer is complete.
b) The Secretary for Defence has exclusive line authority (command) over all finance functionaries.
c) The Chief of Finance has established and is further developing a finance internal control system according to the client needs and risk assessment.
a) All capital programmes now require the full participation of the Defence Secretariat members before any approval is granted.
b) No funds in the SDA can be expended without approval from the Defence Secretary (as Accounting Officer).
c) No funds in the General Defence Account (GDA) relating to procurement can be expended without the approval of the Defence Secretariat.
d) Redrafting of the Armscor Act to bring it in line with the Constitution, PFMA and other Iegislation.
23. Defence Inspectorate
a) In the Inspectorate, auditing now complies with PFMA and TRs, as well as other new legislation.
b) The civilianisation of the Internal Audit function has resulted in optimum access of auditors to source documents.
c) Integration monitoring has served to evaluate delivery on this vital area of delivery.
d) IG DOD and the CFO are busy with the promotion of an owner-driven risk management system. This is in accordance with best practices for risk management.
e) Follow-up auditing of negative/unacceptable audit and inspection findings. This has closed the loop on audit and inspection findings and line functionaries are forced to adopt rectification plans where necessary.
f) Compliance with Transformation principles and guidelines inspections have served to guide the process re-engineering that the Department is busy with.
g) Evaluation of performance measurement takes place now in accordance with the South African Excellence Foundation model for the Department as a whole.
24. Equal Opportunities and Affirmative Action
a) EO&AA objectives have been incorporated in the DoD Level One Plan as strategic objectives.
b) These objectives will be reflected in Service and Divisional Chiefs' Performance Agreements and they will be measured against their plans.
c) All General Support Bases (GSBs) and units being monitored and evaluated for implementation of EO and AA policy.
25. Regarding oversight, we are adequate with respect to financial management but not with respect to resource management: this is largely because the internal control systems of human resource, logistics, information systems and others report through the CSANDF. A better arrangement would be for these internal control systems to report directly to the Secretary for Defence.
HEAD OF DEPARTMENT, POLICY ADVISOR AND ACCOUNTING OFFICER REQUIREMENTS
26. Overall, it can be claimed that the above functions of the Secretary and the Secretariat are at an advanced stage of development, though, in certain areas, we lack the necessary capacity. Within this context, we choose to now reflect on our actual performance and delivery accordingly.
27. Head of Department
a) Efficient management of the department: here we are not sufficiently' capacitated. The numerous areas still needing attention are contained elsewhere in this document.
b) Effective utilisation and training of staff: We lack monitoring capacity in certain areas. This needs to be improved throughout the department.
c) Maintenance of discipline: For the areas that we are responsible for, we consider that has been successfully adopted. It should be noted that the CSANDF has jurisdiction for military discipline while the Secretary for Defence is responsible for the discipline of PSAP members of the DoD.
d) Promotion of sound labour relations: Through the DoD Bargaining Chamber (for civilians) and the Military Bargaining Chamber (for military), we consider that a lot has been achieved.
e) Proper use and care of state property: Due to legacy problems (post Angolan war, surplus stock, lack of new WET and PET tables), the internal control systems are not yet fully developed and are in the process of being put in place. In certain areas the care and maintenance of state property is the responsibility of the Public Works Department (PWD). We would like the Committee to note that in order to improve the situation; we will require large capital outlay.
f) Perform functions as prescribed (delegated): As the principal policy adviser, in charge of acquisition, having accountability' for equal opportunities and affirmative action policy and practice \\e consider that the duties of Head of Department have been performed.
28. Principal (Departmental) Policy Advisor to the Minister of Defence
29. Here we are sufficiently capacitated in terms of structures. Through the Policy and Planning Division. However, in the last year, staffing has had significant shortcomings.
30. Accounting Officer
a) We have capacity to perform our duties with regard to financial
management, partially with regard to human resources, but with regard to
materiel and management information systems we do not have the capacity.
b) The PFMA and Treasury Regulations are being implemented.
DEFENCE SECRETARIAT FUTURE - FOUR TO FIVE YEARS
31. Civil control and civil-military relations are cornerstones of defence in a democracy. In order to further develop the Defence Secretariat for the next four to five years, the following have been identified as focus areas in each division of the Secretariat:
32. Policy and planning
a) managing the transformation process.
b) Review the Defence Review so as to align policy with the budget, which is not possible with the current Review and budget.
c) Right-sizing the DoD in accordance with J MCC decisions still has to take place.
d) We will be continuing' our work on the development of a performance management culture
e) There will be the implementation of new service system for the SANDF, to ensure a continued renewal of the defence force.
f) We shall focus on the Inter State Defence and Security Committee (ISDSC) Liaison and co-operation so as to accelerate regional peace-making initiatives.
a) The tasks that lie ahead are:
i) To appoint the new Chief Financial Officer (CFO).
ii) To empower the CFO with appropriate delegations (powers and duties) and structure/capacity.
iii) To develop a resource management information system supporting accrual accounting.
iv) To develop an accountability management system (including disciplinary).
b) To further develop a risk management system.
c) To develop a loss management system.
d) To assist the Minister to manage Armscor as State shareholder.
a) We need to perform the Strategic Defence Packages’ delivery and successful integration into the services (Level 6 integration).
b) In order to address the Army’s equipment requirements and priorities we shall be upgrading and refurbishing existing
c) We will be realigning the Technology Budget to mirror the main equipment requirement i.e. to make it product-driven.
d) We need to find adequate resources to maintain strategic facilities and technologies.
35. Defence Inspectorate
a) We are busy with and shall complete development of personnel and procedures to international benchmarks (ISO 11001).
b) A focus area shall be staffing of personnel to required levels (including representative)
c) Priority shall be given to full implementation of anti-fraud and anti-corruption measures.
d) We will be involved with fully developed monitoring of all control systems.
e) For the first time we shall be auditing and inspecting at all levels: strategic, operational and tactical.
36. Equal Opportunities and Affirmative Action
a) Our focus will be on developing, monitoring and evaluating the implementation of FO & AA policy. To this end we shall full implementation of the affirmation plans, monitoring of the implementation of representivity, mainstreaming of gender issues in the DoD with increased attention to Disability in the DoD. We shall also apply continuous research into equal opportunity issues.
INTERVENTIONS REQUIRED FROM DIFFERENT ROLE-PLAYERS
The interventions required from the different role players are discussed below and categorised per stakeholder.
a) We require that full attention be awarded to finalisation of pending legislation, viz Defence Bill, Termination of Integration Bill/Demobilisation Act & Constitutional Amendment Bill (Troika), Pensions Amendment Act (for NSF recognition of service); Armscor Act
b) A long overdue task, in the light of changed circumstances is the Review of the Defence Review/New Review.
c) We need your support and understanding of the need for the capacitance and strengthening of the Secretariat.
d) We need the mobilisation of civil society to support the defence establishment.
a) The Executive needs to support us for the development of equitable military labour relations.
b) We need more energy to be devoted to institutionalising co -operative
governance with the various government departments seamlessly through to effective and optimal delivery.
c) We need your support for proceeds from sales of equipment into the Defence Budget (with an amendment of the PFMA).
39. Defence Secretariat
a) The Secretariat is busy with the development of its strategic leadership. This will entail various programmes in the future.
b) Our big need is to staff the Secretariat with competent people. This is paramount in the search for maximum civil control of defence in a democracy.
40. Accounting Officer
a) The number one priority is to establish reporting relationships with required internal control system owners i.e. personnel, logistics, legal, police and command and management information (GITO).
41. Departmental Strategic Initiatives
a) We are fully committed to the required Human and cultural transformation, to management of health status and to addressing the low morale and loss of expertise as major programmes of intervention in our transformation drive.
42. The Secretariat was once a vision in the minds of those who believe in civil control of defence in a democracy. We have made major progress in the last few years. Much has been achieved and much is still to be done. The main tasks lying ahead all involve in some way or other boosting the capacity of the Secretariat to deliver on its statutory responsibilities. We humbly request your support as we proceed stepwise steadfast and determined on our way to be a department of defence that the world can be proud of.
APPENDIX A: DEFENCE SECRETARIAT MANDATE
Constitution (Act 108 of 1996)
Section 204: A civilian secretariat for defence must be established by national legislation to function under the direction of the Cabinet member responsible for defence.
Defence Amendment Act (Act 72 of 1995) [Excerpt only]
Section 7A: There is hereby established in the Department of Defence a Defence
Secretariat The Minister shall be accountable to the President and Parliament for the
Section 7B: The Minister may appoint a person to the post of Secretary for Defence in the fixed establishment of the Department of Defence
Section 7C: The Secretary shall:
a. Be the head of the Defence Secretariat;
b. be the principal adviser to the Minister with regard to defence policy matters as well as any matter which may be investigated by the Joint Standing Committee on Defence of Parliament;
c. advise the Minister on any particular matter referred by the Minister to the Secretary
d. perform such duties and functions as assigned to him by the Minister in particular any function or duty necessary or expedient to enhance Parliamentary and Ministerial control over the South African National Defence Force
e act as the delegate of the Minister in respect of any matter within the competence of the Minister which he delegates to the Secretary;
f monitor compliance with directions issued by the President or the Minister and report thereon to the President or the Minister.
1.1 Defence Amendment Act (Act 72 of 1995) excerpt only]
Section 4B: The Department of Defence shall consist of
a. The Defence Secretariat; and
b. The South African National Defence Force.
Section 7C: The Secretary shall:
a. Be the head of department and accounting officer of the Department of Defence and be the head of the Defence Secretariat;
b. Be the principal departmental adviser to the Minister with regard to defence policy matters;
c. advise the Minister on any particular matter referred by the Minister to the Secretary;
d. perform such duties and functions as assigned to him or her by the Minister in particular any function or duty necessary or expedient to enhance Parliamentary and Ministerial control over the South African National Defence Force:
1.2 Defence Bill 2000 [excerpt only]
Section 9: The Department of Defence shall comprise-
a. the Defence Secretariat;
b. the South African National Defence Force; and
C. any auxiliary service which may be established by the \Minister.
Section 10(1): The Minister may establish amalgamate or abolish divisions, sections and sub-sections in the Secretariat
(5): The Secretariat shall function under the direction of the \Minister.
Section 11 (1): The President shall appoint a person to the office of the Secretary for Defence shall be-
a. head of Department; and
b. accounting officer, of the Department and
c. head of the Secretariat.
Section 12: The Secretary shall-
6 as head of department be responsible for the efficient management and administration of that Department and shall perform the functions that are prescribed for heads of department in general as well as those specifically prescribed for the head of department.
7. As accounting officer of the Department execute the responsibility in respect of the Department vote of accounting for all stare moneys received and all payments made by him or her as well as for the acquisition, receipt, custody and disposal of all state property in accordance with the Public Finance Management Act.
8. As head of the Defence secretariat be the principal departmental adviser to the Minister with regard to defence policy matters.
9. With regard to the performance of his or her functions as head of department and accounting officer of the Department of defence in respect of the Defence Force provide the Chief of the National Defence Force with delegations and instructions.
0. Be responsible for the management and the administrative control over the staff of the Defence secretariat including their effective utilisation and training and for the discipline of persons employed in terms of the Public Service Act.
11. Advise the Minister on any other matter referred by the Minister to the Secretary;
12. Perform such duties and functions as may form time to time be assigned or referred to the Secretary by the Minister in particular those necessary or expedient to enhance civil control by-
i. Parliament over the Department
ii. Parliamentary committees having oversight over the department or part thereof; and
iii. The Minister over the said department.
14. Monitor compliance with policies and directions issued by the Minister to the Chief of the Defence Force and report thereon to the Minister.
Public Service Act 1994 [excerpt only]
Section 3a: Each department shall have a head of department who as an officer shall be the incumbent of the post on the fixed establishment bearing the designation mentioned in the second column Schedule 1 or 2 opposite the name of the relevant department.
Section 3b: A head of department shall be responsible for the efficient management of his or her department including the effective utilisation and training of staff; the maintenance the maintenance of discipline the promotion of sound labour relations and the proper use and care of State property and he or she shall perform the functions that may be prescribed.