DMV Budget Review and Recommendations Report

Meeting report

Dr Wilhelm Janse van Rensburg, Defence Researcher, presented the draft Budgetary Review and Recommendation Report (BRRR) to the Portfolio Committee.

The report covered the core functions of the Department of Military Veterans (DMV), the mandate of the Committee, the purpose of the BRRR, an overview of the key policy focus areas and the DMV's strategic plan, a summary of previous Committee recommendations, an assessment of the 2022/23 financial performance, and the Department's performance per programme against its set targets.

The report also provided details of the Auditor General of South Africa's (AGSA's) findings in the area of unauthorised, fruitless, wasteful and irregular expenditure, and indicated that the DMV had received a qualified audit. A section on human resources (HR) showed that the Department had a vacancy rate of 26%, and that no disciplinary action had been taken during the year.

Dr Janse van Rensburg listed the Committee's observations from its review of the annual performance report (APP) the previous day, and highlighted ten recommendations aimed at addressing challenges identified in the report.

(See details here https://pmg.org.za/tabled-committee-report/5576/)

Discussion

Mr S Marais (DA) conveyed his appreciation of Dr Janse van Rensburg's work on the observations. There were no comments from other Members.

The Chairperson inquired about the feasibility of requesting the Department to resubmit its annual report, and whether there was any legislation precluding such a procedure.

Mr M Bond (DA) referred to the corrective measures outlined in the audit plan, and emphasised the need to establish specific parameters, especially regarding finalisation dates. The Chairperson responded by indicating that dates had already been included.

Mr T Mmutle (ANC) suggested amending section 7(e) of the recommendations to propose the inclusion of merit awards. This adjustment aimed to encourage individuals to persist in their work, fostering a sense of value within the system. He also proposed that if an employee who was initially wronged, was vindicated by the court and received an award, the Department should not refuse to implement the court decision.

The Chairperson commented that two incidents had already been forwarded to the Committee, specifically regarding staff retention.

He inquired about the appointment of an audit committee, highlighting that it was the audit committee's mandate to review the audit plan.

Mr Mmutle confirmed that an audit committee had been appointed.

Mr Marais raised a concern, noting that the action plan lacked target dates for addressing audit queries.

Ms P Phetlhe (ANC) suggested that the target dates should not be solely at the end of January but divided into three phases. She proposed that by the end of November, the Committee should be informed of their plans, with subsequent updates towards the end of December.

Mr Mmutle supported this proposal, and was supported by Ms T Legwase (ANC).

Dr Janse van Rensburg highlighted recommendation 7(f) as a significant focus of the BRRR. This recommendation acknowledged the deployment of the South African National Defence Force (SANDF) in support of the South African Police Service (SAPS) to address illegal mining, incurring an estimated cost of R429 million. While the Committee appreciated the allocation of funds from the criminal assets recovery account (CARA) to be distributed to the Department of Defence (DOD), it had been clarified to the Joint Standing Committee on Defence that this would amount to only R155 million, which fell short of covering the entire deployment expenses. The recommendation emphasised the need for the Minister of Finance to ensure sufficient funding for all additional deployment requirements by the DOD.

The Chairperson inquired about the allocation of the CARA fund, saying that it was the first time he had heard about it.

Dr Janse van Rensburg explained that the CARA fund had accumulated over time and had been mentioned in the Minister of Finance's budget speech. The Minister had indicated that CARA funds would be utilised to combat crime, with a detailed announcement on the allocation to follow. However, no specifics were provided at that time regarding the amount each department would receive. He added that in the recent meeting of the Joint Standing Committee on Defence (JSCD) last week, the DOD had mentioned an anticipated amount of R155 million from the CARA fund. However, it was important to note that this money had not been officially appropriated yet.

Mr Marais suggested that either Dr Janse van Rensburg or the Committee secretary seek additional clarity from National Treasury regarding the fund.

The Chairperson raised the question of whether the R155 million could be classified as an unfunded mandate, as there appeared to be no allocation in the adjusted budget.

The Committee reached an agreement to state that no funds had been allocated in the 2023 adjustments estimates. It also stressed the importance of the Minister of Finance ensuring adequate funding for all additional deployment requirements by the DOD, and requested detailed information on how the deployment would be funded.

The Committee also concurred with Mr Marais's proposal to extend the deadline for written submissions from 22 November 2023, to 31 January 2024.

The report was adopted. See final report here https://pmg.org.za/tabled-committee-report/5576/

Committee minutes

The minutes of 15 November were adopted

The meeting was adjourned.