Minister on NCACC inaction; Defence Industry & NCACC briefing; SANDF deployment

Joint Standing Committee on Defence

29 November 2024
Chairperson: Mr M Gigaba (ANC) NA; Mr P Phala (ANC) NCOP
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Meeting Summary

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The South African Aerospace Maritime Defence Industries Association (AMD) briefed the Committee on the defence industry, its role in job creation and economic growth, its relationship with the National Conventional Arms Control Committee (NCACC) and maintaining robust support for local manufacturers to ensure continued growth and sustainability in this critical sector. It spoke about the delays in the NCACC issuing permits for arms exports and the dire effect this had on the industry. AMD appealed to the Committee to facilitate urgent action.

Defence Minister Motshekga addressed concerns about her absence at a previous meeting and noted that there would be coordination to address pending applications from the defence industry before year-end.

Deputy Minister Holomisa confirmed plans for an NCACC meeting before Christmas to expedite pending permits and acknowledged the negative impact of military de-funding on the defence sector. He announced a new schedule for NCACC meetings to ensure timely responses to industry needs.

Committee members criticised the NCACC delays in processing permit applications and called for urgent accountability. They also voiced concerns about budget constraints affecting SANDF's operational capabilities and the serious payment delays to the arms industry which threatened the industry and worker’s livelihoods.

The Joint Standing Committee on Defence Report on the South African National Defence Force (SANDF) deployment in support of the SAPS was considered and adopted.

Meeting report

Chairperson’s opening remarks
Co-Chairperson Gigaba welcomed representatives from the defence industry and the Directorate for Conventional Arms Control (DCAC). He expressed hope for a productive meeting and noted this was the final session of the year. The objective of the meeting was to provide members with a clearer understanding of the South African defence industry and its connection to the National Conventional Arms Control Committee (NCACC). He noted that the NCACC had not yet met with the Committee but they were eager to participate in future briefings. In correspondence with the Minister in the Presidency, it was agreed that instead of the NCACC attending in person, the DCAC would deliver a briefing on their operations and challenges.

Minister’s remarks
Defence Minister Angie Motshekga addressed the committee expressing her frustration over accusations about her previous absence. She clarified that she had communicated with the chairperson prior to the meeting and emphasised her commitment to aligning with the committee's objectives.

Minister Motshekga noted that the recent meeting was an induction session, as she and her team were appointed only on October 28. It was important that as new appointees, they understand their roles and responsibilities before engaging in committee work. The Minister reported that they had engaged with the Directorate for Conventional Arms Control (DCAC) to familiarise themselves with their duties and the existing challenges.

She announced that there would be coordination outside the normal NCACC meeting calendar to consider applications from the defence industry before year-end. Quarterly reports had been submitted but due to the lack of a functioning committee, there had been no opportunity for accountability regarding previous decisions.

The Minister preferred physical meetings with the Committee but acknowledged that virtual meetings were acceptable if national security matters would be appropriately managed.

In a procedural request, Minister Motshekga asked for permission to be excused and to return later to introduce the DCAC when matters directly affecting her role were discussed.

SA Aerospace Maritime and Defence Industries Association (AMD) briefing
Mr Sandile Ndlovu, AMD CEO, outlined the South African defence industry's alignment with government priorities of inclusive growth and job creation, poverty reduction and building a capable, ethical developmental state. The industry is committed to contributing positively to these goals and the need for ongoing collaboration with government entities.

He provided a historical overview of the defence industry in South Africa, noting its establishment prior to 1994 and subsequent reorganisation into the Aerospace Maritime and Defence Industry Association (AMD). This association has been active for over 30 years, advocating for a conducive environment for industry development. In 2015, in response to growing export activities, the South African Aerospace Maritime and Defence Export Council (SAAMDEC) was established to enhance export capabilities in collaboration with government. Several collaborative structures involving government entities included:
Defence Industry Fund, a partnership with the Department of Defence.
National Defence Industry Council, formed following a defence review.
Defence Sector Charter Council, established to promote transformation within the industry.
Centurion Aerospace Village, a special economic zone for aerospace development.

South Africa's defence industry is unique on the African continent, possessing capabilities across all warfare domains: air, maritime, land, cyber, and space. It can produce at various levels of complexity, providing South Africa with strategic independence and enabling it to dictate its own policies without external influence. Currently, over 80% of production is exported, making the role of the National Conventional Arms Control Committee (NCACC) crucial as both a regulator and enabler for industry operations.

Mr Ndlovu expressed concern over the NCACC's lack of meetings since April, which has severely impacted export activities and created uncertainty in the industry. The defence sector comprises about 600 manufacturers, predominantly privately owned, employing around 20,000 individuals directly. For every direct job created in this sector, there is a multiplier effect resulting in six additional jobs in supporting industries. He highlighted significant foreign investment from companies based in Europe, contributing to local job creation and tax revenue. South Africa has established an industry capability that would take decades to replicate if lost. He cautioned against losing this capability due to insufficient support or changes in operational practices.

He clarified that while the Minister of Defence is a primary client of the defence industry, other government entities are significant stakeholders as well. The products manufactured have diverse applications beyond defence alone. In conclusion, Mr Ndlovu expressed optimism about future engagements with the committee to explore specific capabilities further and identify opportunities for collaboration between the defence industry and government stakeholders. He reiterated the importance of maintaining robust support for local manufacturers to ensure continued growth and sustainability within this critical sector.


See attached for full presentation

Deputy Minister Holomisa’s remarks
Deputy Minister Bantu Holomisa requested to address the committee on the National Conventional Arms Control Committee (NCACC) and the state of the defence industry.

In his remarks, Major General Holomisa confirmed that during a recent NCACC meeting, it was agreed that another meeting would be convened before Christmas to address pending permits and applications. This decision aimed to facilitate business operations for companies within the defence sector. He acknowledged the delays in processing these applications since April 2024, which had raised concerns among industry stakeholders. The Deputy Minister emphasised the need for expediting the approval process to support local businesses effectively.

The Deputy Minister also announced that the NCACC would meet every Thursday in the last week of each month to review its agenda and applications systematically. This regular schedule is intended to enhance oversight and ensure timely responses to industry needs.

The Deputy Minister addressed a critical issue – the defunding of the military has adversely affected the defence industry in South Africa. He asserted that until this trend is reversed, it would be challenging to bolster both the military sector and job creation efforts. He hoped that National Treasury would heed the pleas from various stakeholders on the importance of maintaining adequate funding for defence to safeguard national security.

In conclusion, Major General Holomisa reiterated his commitment to addressing these pressing matters and underscored the necessity of a well-supported defence industry for the country's overall security and economic stability.

Discussion
Mr C Niehaus (EFF) appreciated the comprehensive presentation. He acknowledged the recent constitution of the National Conventional Arms Control Committee (NCACC) and expressed appreciation for Major General Holomisa’s insights on prioritising pending applications. However, he formally registered the committee's dissatisfaction with the significant delays in processing these applications, which were detrimental to accountability.

Mr Niehaus emphasised that the prolonged delays had resulted in financial losses and damage to the reputation of the defence sector. He insisted that there must be accountability for those responsible for these inefficiencies, as the repercussions of such delays could be irreparable. He expressed relief at the commitment made by the NCACC to address these issues more effectively in the future but stressed that accountability measures must be implemented to prevent recurrence.

The second issue raised by Mr Niehaus concerned the serious budgetary constraints faced by the SANDF and its impact on the domestic armaments industry. He voiced concern how these financial limitations hindered the SANDF's ability to defend national sovereignty effectively. A significant portion of what is manufactured by South Africa's armaments industry is currently exported, which he deemed a potential security risk.

Mr Niehaus expressed hope that General Holomisa’s previous suggestion of increasing the SANDF budget to 1.25% of Gross Domestic Product (GDP) would materialise. He advocated for a return to a situation where 90% of manufactured goods are supplied to the SANDF, arguing that this would mitigate risks associated with excessive exports.

He sought clarity on the export destinations mentioned by Mr Ndlovu, particularly countries like the United States and Western European nations. While he was pleased that apartheid Israel was not listed among these countries, he raised concern about ensuring that no armaments sold to allied nations could potentially end up in Israel. It would be unacceptable for South African-produced armaments to contribute to any form of oppression or conflict.

In conclusion, Mr Niehaus commended Mr Ndlovu for highlighting that the manufacturing industry serves not only the SANDF but also other critical clients including law enforcement agencies. He referenced a recent visit to the African Aerospace Exhibition at Waterkloof Air Force Base, where he observed adaptations of armed vehicles and troop carriers developed for local police services. He hoped to see further expansion in this area, as it would facilitate increased local sales and support job creation in South Africa’s defence industry.

Mr C Hattingh (DA) appreciated the enlightening brieifng, particularly the serious pressures faced by the South African arms industry. Three critical issues warranted immediate attention from the committee and relevant authorities.

1. Payment Delays to the Arms Industry
Mr Hattingh expressed grave concern about the Department of Defence's performance in paying its creditors, which has resulted in it being listed as the worst state department for two consecutive years in this regard. These payment delays had cascading effects on workers in the industry, many of whom are unable to provide for their families during the festive season due to late payments. He called for a clear response from either the Minister or Deputy Minister on plans to address this, emphasising that such delays are throttling the industry and harming livelihoods.

Over 90% of late payments from DOD exceed 30 days, which is an alarming statistic that needs urgent rectification. Mr Hattingh insisted that accountability measures must be put in place to ensure timely payments and prevent further damage to the industry.

2. Delays in NCACC Decisions
There were significant delays in decision-making by the NCACC, which has not met since April. Mr Hattingh acknowledged that a meeting is planned in December but criticised the fact that only 11 days out of 365 are allocated for NCACC meetings. Such inefficiency is unacceptable in a highly competitive international arms market, where exporters cannot afford to wait months for approvals. This delay undermines South Africa's reliability as a provider of military equipment.

A mechanism had to be established to better address industry demands and expedite NCACC decision-making processes.

3. Budget Constraints and Equipment Maintenance
Mr Hattingh addressed the dire budgetary constraints facing the SANDF and its impact on military readiness and sustainability. Key mission equipment is in poor condition due to insufficient funds for maintenance and procurement. Despite this, substantial resources have been allocated to foreign engineers for military equipment repairs instead of utilising local capabilities. These practices affect the viability and sustainability of South Africa's arms industry. Local industries are eager to assist but are being overlooked in favour of foreign contractors. He called for a reassessment of priorities to ensure that domestic capabilities are utilised effectively.

Deputy Minister Hlophe remarks
Deputy Minister Richard Hlophe apologised for joining the meeting late due to flight changes. He shared the sentiments previously articulated by his colleagues, particularly Deputy Minister Holomisa on South Africa's posture towards Israel. He emphasised the need for caution in this regard as representatives of the South African government.

He also took a moment to commend the presentation by Mr Sandile Ndlovu, noting its quality and significance as a demonstration of progress in equal representation within the defence industry. He expressed pride in having a well-articulated presentation from a black leader in the industry, reflecting South Africa's commitment to equality in the international arena.

Deputy Minister Hlophe highlighted the current challenges faced by the SANDF as they are not adequately equipped at present. He urged that local industries should be empowered more effectively to meet these needs and called for an increased focus on utilising domestic capabilities. Local industries should be given more opportunities to contribute to national defence.

In conclusion, Deputy Minister Hlophe reiterated the importance of collaboration between government and local industries to enhance the capabilities of the SANDF. He expressed hope that through such partnerships, South Africa could strengthen its defence posture and ensure that local industries play a pivotal role in national security efforts.

Discussion

Mr V Gericke (EFF) appreciated the clear and well-articulated AMD presentation. He agreed with the comments by Mr Niehaus and the particular concern on the exports of armaments. There was a lack of control over South African armaments once they leave the country’s borders. These arms represent South Africa's intellectual property. South Africa should have a say in contractual obligations dictating who can purchase its weapons, especially given the potential for specialised weapons to end up in the hands of violent actors around the world.

Mr Gericke suggested that the committee seek legal guidance on how to combat or prevent exports of South African armaments to countries known for human rights abuses and violence against civilians. He proposed that a legal opinion be provided in a future meeting to explore mechanisms that could ensure responsible export practices.

Mr Gericke reiterated the EFF's concerns and the need for proactive measures to safeguard South African interests and prevent complicity in global violence through arms exports.

Co-Chairperson Mr P. Phala (ANC) appreciated the presentation by Mr Ndlovu and acknowledged the challenges faced by the defence industry outlined in the presentation and emphasised the need for prompt action to resolve these issues.

Mr Phala urged the Minister to provide assurance to the committee that the concerns raised by the industry would be addressed swiftly. Delays in resolving these challenges could have dire consequences for employment opportunities and could lead to company closures at a time when South Africa is already grappling with high unemployment rates.

He expressed urgency as it is crucial for the industry to receive the attention it deserves to prevent losing clients to foreign suppliers. If local companies are unable to meet their obligations due to the delays, clients may seek alternatives elsewhere, which could further harm South Africa's defence capabilities and economic stability.

Mr Phala repeated his request for the Minister's commitment to prioritise the industry's needs and ensure that challenges are resolved promptly.

Mr M Shelembe (DA) expressed concern about the impact of cabinet reshuffles on the defence sector, particularly for the issuance of licences and permits for armaments exports. He referenced discussions from 2022 that highlighted how changes in cabinet leadership have affected the efficiency of operations within the NCACC.

Mr Shelembe sought clarity if these issues are being actively addressed, particularly given the potential for ongoing disruptions as ministers change positions. Frequent changes in leadership could lead to instability and inefficiencies in the defence department, which could hinder South Africa's ability to engage with important markets, especially in Eastern Africa.

Mr Shelembe emphasised the importance of stability within the defence sector and urged the committee to consider what measures are being implemented to mitigate the negative effects of such changes. There needed to be continuity and accountability in governance to ensure South Africa maintains its commitments in international arms control.

In conclusion, Mr Shelembe called for a proactive approach to address these challenges. Without effective management and oversight, the defence industry could face significant setbacks that would ultimately affect national security and international relations.

Mr M Hala (ANC) expressed satisfaction with the progress made in revitalizing Denel and the South African defence industry. He referenced a recent visit three months prior where he observed the state of affairs firsthand. He was pleased to hear from the AMD CEO that there are plans to rejuvenate and modernize both Denel and the broader defence industry.

Mr Hala emphasized the importance of addressing budgetary constraints that have been affecting the SANDF and hoped that these challenges would be met with effective solutions. Improving operational effectiveness within the defence sector is critical, particularly given the current economic climate and high unemployment rates in the country.

Mr Hala urged all committee members to support proposals aimed at revitalizing the defence industry. Such support is essential to address the challenges observed during oversight visits to ensure that South Africa's defence capabilities are strengthened for future needs.

Mr N Gotsell (DA) raised a critical question on whether South Africa is supplying arms to any countries currently involved in active conflicts. He specifically referenced reports suggesting that the South African Mamba armoured vehicle is being used in the ongoing war between Russia and Ukraine. It was important that the committee is informed about such matters, given their implications for national and international security.

o-Chairperson Mr Gigaba responded by suggesting that this question might be better suited for a separate discussion with the executive rather than during this presentation, as it could lead to a broader parliamentary question-and-answer session. He recommended that Mr Gotsell submit his question to the Minister for a more comprehensive response.

Mr Niehaus supported Mr Gotsell's inquiry but proposed that the committee should also address the general issue of how South Africa manages and controls the sale of armaments to prevent them from ending up in the wrong hands. He argued that this topic is relevant to the current discussion and should be addressed by both industry representatives and government officials present at the meeting.

Mr W Plaatjies (ANC) sought clarity on why approximately 80% of South African defence production is exported, questioning whether this is solely due to budget constraints or if it also relates to preferences for procuring defence materials from abroad.

AMD response
CEO Sandile Ndlovu expressed appreciation for the support shown by the committee about the challenges faced by the South African defence industry.

Mr Ndlovu emphasised the urgency of addressing outstanding issues before the upcoming meeting on 13 December. Resolving these matters is critical for the industry. He highlighted the importance of the NCACC, describing it not only as a regulatory body but also as an enabler for the defence industry. He stressed that without the NCACC's support, the industry cannot effectively operate or export its products.

On concerns about cabinet changes affecting operations, Mr Ndlovu said that while such changes impact the industry, he would defer to the executive for detailed responses on that matter. Once South Africa agrees to sell arms to a specific country, mechanisms are in place to ensure that those products do not end up in unauthorized hands. This includes requiring an end-user certificate, which mandates that the purchasing country informs South Africa before transferring any products to third parties.

Addressing questions about foreign involvement in South Africa's defence projects such as Cuba, Mr Ndlovu explained that while such projects can impact local industry, they often involve equipment under original equipment manufacturer (OEM) warranties, limiting third-party engagement without OEM approval. He acknowledged that these dynamics create challenges for local companies.

Mr Ndlovu provided insight into why approximately 80% of South African defence production is exported, attributing this primarily to budgetary constraints within the SANDF. He explained that if SANDF had sufficient funding, it would prefer to utilise locally produced equipment rather than relying heavily on exports.

In conclusion, Mr Ndlovu expressed gratitude for the committee's engagement and reiterated his availability for further discussions. He emphasised the importance of supporting local industries to maintain South Africa's strategic independence and capabilities in defence manufacturing.

Chairperson Gigaba spoke to the committee's support for the localization of the defence industry and the need for an increase in the defence budget. A well-equipped National Defence Force (SANDF) is crucial for both national security and South Africa's international standing. Military capability is integral to the country's international relations and that a capable defence force enhances South Africa's prestige globally.

Mr Gigaba highlighted the decline in defence spending and employment within the sector over recent years, expressing a desire for positive change that aligns with South Africa's domestic and international obligations. He reiterated the committee's preference for prioritizing local manufacturing and procurement of defence products to bolster economic growth and job creation.

He acknowledged various concerns raised by committee members, including the need for a review of the NCACC Act, digitization efforts, and addressing vacancies within the sector. These concerns have been heard by the Deputy Ministers present. He mentioned an invitation for the committee to visit industry facilities in the new year to engage further at a strategic level.

Minister’s remarks on NCACC
Defence Minister Motshekga expressed gratitude for the opportunity to clarify previous discussions during the meeting. She corrected a misconception on the backlog, stating that it originates from August 2024, not April 2024, and anticipated that further clarifications would be provided in the presentation.

Minister Motshekga emphasized that there is no need to review the current NCACC Act, as it already complies with all UN obligations and treaties. Instead, she mentioned the necessity of finalizing regulations related to another Act to strengthen existing processes. She noted that the committee had requested both the treaties and their summaries to demonstrate compliance with international standards.

She said that AMD does not represent all registered entities under the Act and suggested that engagement with other industry players might be beneficial.

The Minister reiterated her commitment to supporting the committee's work and expressed a desire for a productive working relationship with the chairpersons and committee members.

The Minister requested to be recused from the meeting, indicating that Deputy Minister Holomisa, as a member of the NCACC, would be present to address any issues raised.

NCACC: briefing by Directorate for Conventional Arms Control (DCAC)
Mr Sipho Peter Mashaba, DCAC Acting Director, outlined that the NCACC operates under the National Conventional Arms Control Act of 2002, which serves as the legal foundation for regulating arms trade in South Africa. The NCACC collaborates with various governmental bodies, including the police and the Department of Trade and Industry (DTI), to ensure comprehensive oversight of both conventional arms and related services.

The presentation noted legislation relevant to the NCACC's functions. In addition to the NCACC Act, Mr Mashaba discussed the Regulation of Foreign Military Assistance Act of 1998, which governs South African citizens seeking to join foreign armed forces, and the Prohibition or Restriction of Certain Conventional Weapons Act of 2008, which mandates reporting on prohibited munitions as per international conventions.

Mr Mashaba described the NCACC structure, noting that ministers and deputy ministers are appointed by the President to serve on the NCACC, ensuring representation from various sectors of government. The committee is tasked with implementing government policy on arms trade while adhering to international law and protecting national security interests.

The NCACC functions include establishing processes for evaluating arms trade applications, authorising or denying applications based on national security and human rights considerations, and maintaining a register of applications. The NCACC is required to issue reports to Parliament on a quarterly and annual basis.

Mr Mashaba explained that applications are processed through a Scrutiny Committee that makes recommendations to the NCACC. The decisions can result in approval, denial, or a hold status for further investigation or correction of documentation.

Mr Mashaba emphasised the importance of compliance with international treaties such as the Arms Trade Treaty (ATT). The NCACC evaluates applications against criteria including embargoes, regional conflict risks, and human rights considerations, ensuring that all decisions are made transparently and responsibly.

The administrative support provided by the DCAC Secretariat was crucial for facilitating communication between stakeholders in the defence industry. An inspectorate is established under Section 9 of the Act to ensure compliance with regulations through regular visits and audits of industry participants.


See attached for full presentation

Discussion
Mr Niehaus thanked Mr Mashaba for his detailed presentation. He asked about the implications of the Regulation of Foreign Military Assistance Act on whether the NCACC mandate extends beyond managing weapons and hardware to include oversight of South African citizens participating in armed conflicts abroad. He referenced concerns about South African citizens joining the Israeli Defence Force and engaging in activities that may be deemed unacceptable.

Secondly, he sought clarity on how the NCACC addresses Regulatory Category C, which pertains to enabling equipment that can activate lethal weapons. He highlighted a disturbing report indicating that South African-manufactured drones were utilised in conflict zones, specifically in the Democratic Republic of Congo (DRC), where South African troops are part of a UN peacekeeping mission. It would be unacceptable for private sector companies to test armed or unarmed drones in such environments without adhering to established regulations.

Mr Niehaus acknowledged the essential work of the NCACC in preventing South Africa from becoming embroiled in international conflicts that could compromise its national security. He underscored the importance of the NCACC's role in upholding human rights commitments and asked for more details on how human rights provisions influence decisions on weapon exports and sales to other countries.

Mr Gotsell appreciated Mr Mashaba’s comprehensive presentation. He asked for an update on the progress of the digitisation process within the NCACC. How far has the digitisation efforts advanced for the electronic handling of permit applications? He asked for details on the extent to which the NCACC is now able to electronically process permit applications as well as the subsequent issuance of these permits.

Chairperson Phala directed his question to the Ministry and noted that Mr Mashaba introduced himself as the DCAC acting director. The DCAC plays a central role in supporting the NCACC in fulfilling its responsibilities. He sought clarity on the current state of the DCAC, particularly on its capacity and staff complement.

DCACC response
Mr Mashaba replied that there is an ongoing process to amend the Regulation of Foreign Military Assistance Act of 1998 to address existing challenges. This act primarily regulates South African citizens who wish to enlist in foreign armed forces or provide services in conflict areas, rather than focusing on hardware.

On the concerns about drones and enabling equipment classified under Regulatory Category C, Mr Mashaba explained that entities registered with the NCACC must apply for a two-way permit to export or import items for demonstration purposes. These applications require supporting documentation, including invitations for participation in marketing exercises. He acknowledged that dual-use items, which may not be designed for military purposes but can be modified as such, present regulatory challenges. While the NCACC considers applications on a case-by-case basis, it collaborates with other government departments, including the Department of Defence, to ensure comprehensive evaluations.

Mr Mashaba addressed specific concerns about South African-manufactured drones being used in conflict zones like the DRC. He stated that if there is evidence of improper use or regulatory violations, it would be investigated accordingly. He repeated that the NCACC does not make decisions in isolation but considers inputs from various departments to ensure compliance with human rights standards and international obligations.

On digitisation, Mr Mashaba mentioned that they are planning to decommission an outdated system from 2006 and are close to finalising a new system that will enhance their ability to process permit applications electronically. However, while phase one would still involve some paper documentation, future phases aim to achieve a 90% digitization rate, allowing online applications.

Mr Mashaba acknowledged the importance of addressing structural issues within the DCAC and indicated plans to provide further details on this in future meetings. There were collaborative efforts with the Minister of Defence to support the functioning of the NCACC and its mandate effectively.

Deputy Minister’s remarks
Deputy Minister Bantu Holomisa addressed delayed payments to service providers, which had been raised earlier. He suggested that members submit a list of those who have not been paid directly to his Office. He committed to facilitating the process with the Secretary for Defence and the Chief of the Defence Force, as some procurement matters fall under their jurisdiction. He requested that the list be submitted by next week Monday to expedite the resolution of these complaints.

Deputy Minister Holomisa acknowledged that while there may be legitimate reasons for delays—such as ongoing investigations to verify claims—the Department of Defence has faced scrutiny in its procurement processes. It was important to address these issues to avoid perpetuating any existing problems within the department.

Follow-up discussion
Mr Niehaus thanked the Deputy Minister and said that he would provide Mr Mashaba with information on the UN-approved use of drones in the DRC. However, his earlier question had not been fully addressed. He asked if the NCACC would approve unmanned drones and other equipment for demonstration and experimental purposes in war zones, especially when those products are not yet fully developed. There were ethical implications of deploying such equipment in conflict areas where their effects are uncertain.

Mr Hattingh thanked Deputy Minister Holomisa for his efforts to facilitate payments to service providers. The information about payment delays came from the second Treasury report, which does not specifically mention service or goods providers but focuses on departments. He committed to sending the Treasury report to the Deputy Minister. He acknowledged the Deputy Minister's willingness to address these concerns and emphasised the importance of resolving payment issues for service providers.

Committee Report on SANDF Deployment in support of SAPS
Dr
Wilhelm Janse Van Rensburg, Committee Researcher, noted that the committee had previously received a briefing on the Presidential letter on this deployment. The report, prepared in accordance with Joint Rule 15 and Rule 561 of Parliament, included the 6 November letter which outlined the deployment details.

The Presidential letter complies with constitutional requirements, specifically Section 102 and Section 201(1)(3), as well as Section 182 of the Defence Act. It provided essential information including the number of troops to be deployed, the area of deployment, the duration, and expected expenditures. The committee reviewed these deployment letters during its meeting on 15 November 2024, where they received a briefing from SANDF on the specifics of the deployment. Several observations were made during this meeting:

• Increased Reliance on SANDF: The committee noted a growing dependence on SANDF to assist SAPS with internal security operations.

• Constitutional Alignment: It was agreed that the deployment aligns with constitutional mandates.

• Funding Concerns: The deployment remains unfunded, highlighting a need for financial resources to support it.

• Impact on Other Deployments: The committee expressed concern that supporting SAPS may detract from other priority areas for SANDF, especially border security.

• Code of Conduct: A special code of conduct is in place for this deployment to ensure compliance with human rights standards.

Dr Van Rensburg explained that the Committee Report will be noted rather than debated in the National Assembly. If there are no objections the Committee Report, it will be published in the Announcements, Tablings and Committee Reports (ATC) publication. The committee anticipates engaging more thoroughly on this and other deployments in the coming year.

The Co-Chairs asked if there were any proposed changes to the report before its adoption.

Mr Niehaus raised a concern about the financial implications of this deployment. The report should reflect not only that the deployment may detract from other priority areas but also that it impacts the SANDF's capacity to manage its resources effectively. The financial strain from supporting SAPS could hinder the SANDF's ability to address critical issues related to its rejuvenation and future capabilities.

He requested that the wording in the report be adjusted to accurately convey this point. It was important to capture the full scope of how these deployments affect the SANDF's operational capabilities and its long-term strategic goals.

The Committee Report and the minutes of the 15 November 2024 meeting were adopted.

Concluding remarks
Chairperson Phala appreciated everyone’s contributions and emphasised the importance of the discussions, particularly on the challenges facing the defence sector due to funding issues highlighted by Deputy Minister Holomisa. This meeting marked the beginning of a crucial dialogue about the future of the defence industry and its alignment with national security objectives. The presentations and reports would serve as a foundation for more in-depth discussions in future meetings.

He expressed optimism about the committee's ability to work collaboratively with the ministry to address any challenges facing the industry, reinforcing the commitment to ensuring that South Africa's defence capabilities remain robust and effective.

Chairperson Phala wished everyone a pleasant festive season and adjourned the meeting.

 

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