REDRAFTING THE ARMAMENTS DEVELOPMENT AND PRODUCTION ACT
REQUIREMENT TO REDRAFT
AUDITOR GENERAL'S REPORT FY 97/98
- SCOPA instruction to the accounting officer (Secretary for Defence) to expedite the process of amending the Armaments Development and Production Act.
- Draw clear distinction between armament and non-armament.
- Implement procedures to ensure that only armaments are purchased by Armscor.
PUBLIC-FINANCE MANAGEMENT ACT, 1999.
- Chapter 6 of the Public Finance Management Act dealing with Public Entities applies to Armscor (Schedule 2 of the Act).
- Prescribes the functions and responsibilities of Accounting Authorities for Public Entities, impacting on Armaments Development and Production Act in terms of
Fiduciary duties
Actions of Accounting Authorities
Annual budgeting and corporate planning and information to be submitted to Accounting Authorities
Handling of Annual Reports and Financial Statements
Accounting Authority preferably provided for in legislation
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NATIONAL ARMS CONTROL REGULATIONS
- Cabinet approval on 30 August 1995 of an interim South African Arms Control Policy
- Terms of Reference for Conventional Arms Control impacts significantly on the Armaments Development and Production Act, specifically section 4(c).
- The National Conventional Arms Control Committee will decide on the merits of permit applications and advise the Minister of Defence who has line responsibility for approval of permits as currently specified in terms of section 4(c).
SUGGESTED COMMITTEE
Designation and Role
Chief of Policy and Planning, Chairperson
Inspector General of the DoD, Vice-Chairperson
Chief Executive Officer of Armscor
Armscor, 1 Representative
NICOC, 1 Representative
South African Aerospace, Maritime and Defence Industries Association, 1 Representative
State Attorney, 1Representative
State Law Advisor, 1 Representative
President’s Legal Advisor, 1Representative
State Expenditure (State Tender Board), 1Representative
Department of Trade and Industry, 1Representative
Department of Foreign Affairs, 1Representative
Centre for Conflict Resolution, UCT, 1Representative
Chief of Joint Support, (or Representative)
Chief of Acquisition, (or Representative)
Adjutant-General of the SANDF, (or Representative)
Director Legal Services (Policy & Planning Division)
Director Material Resources Policy (Policy & Planning Division)
Director Conventional Arms Control (Policy & Planning Division)
- The Chairperson of the Committee reports directly to the Minster.
- The Secretary for Defence provides the budget for the drafting process.
TERMS OF REFERENCE
REDRAFTING
- Consistent with the Constitution, National Legislation; National Policy, Department of Defence Policy and Procedures.
- Include all regulations promulgated in terms of the Act.
- Definition of armaments is to be clarified.
- Distinction in roles, functions and mandates of the Armscor Board and the State Tender Board.
ROLE OF ARMSCOR
- Defence Review requires an Acquisition Agency for the DoD.
- Draft White Paper on the South African Defence Related Industries indicates primary roles.
- Name of the organisation and the Act considered for appropriateness.
FUNCTIONS
- Role differentiation between the Armscor Board and the State Tender Board.
- Distinguish between Armscor as executor of acquisition projects and Armscor Board as the adjudicator of tenders.
- The relationship between the Board and the organisation.
- Distinguish between duties of the Board the duties of Management.
OBJECTIVES AND STATUS OF ARMSCOR
- Role as the acquisition agency of the DoD.
- Determine the appropriate juristic persona of Armscor.
- Accounting and audit in context of the Public Finance Management Act, 1999.
- Continued exclusion from the provisions of the Companies Act.
POWERS AND REPORTING RESPONSIBILITIES
- Powers, duties, roles and responsibilities of the Minister of Defence clearly spelt.
- Relationship between Armscor and the DoD must be addressed and the nature thereof specified. Specific attention must be given to:
Funding of Arrnscor.
Reporting and accountability to the DoD.
Responsibilities to the DoD.
Legal relationship between Armscor and the DoD.
- Relationship between Armscor and other entities.
Departments of Public Enterprises, Trade and Industry and Foreign Affairs.
South African Police Services, Correctional Services and Intelligence Agencies.
Role of Intelligence in Armscor.
CONTROL AND ACCOUNTABILITY
- Reporting to the Minister of Defence.
- Accounting for state resources through the Secretary for Defence as accounting officer.
- Accountability to Parliament and Parliamentary Committee's.
- Accounting and auditing requirements of the Public Finance Management Act.
- Taxation and reporting requirements of the Companies Act.
- Accounting and auditing in terms of the Special Defence Account Act.
- Accounting and auditing of the Marketing Revenue Account.
EXECUTIVE MATTERS
- Roles and functions of the main office bearers of Armscor (Process and method of appointment, roles and functions, reporting lines).
- Functional relationship between Armscor and its subsidiary companies must be identified, reviewed and specified.
- Sanctions and penalties for non-compliance with the Act.