Reply:

Internal Deployments/External Deployments

(a) The SA National Defence Force has no troops deployed in any combat zone.

(b) Zero troops are deployed in any combat zone.

Reply:

1. The Cabinet considered three (3) separate policy options in the development of the Defence Review 2015. Quoting directly from Paragraphs 103 – 110 of Chapter 9 of the Defence Review 2015, these were:

(a) Strategic Policy Option 1: Maintain the Status Quo.

i) Should, for whatever reason, the Defence Strategic Trajectory not be achieved, the Defence Force would have to enter into an urgent redesign process to counter its current state of critical decline and attempt to establish a healthy, though significantly reduced defence capability, that would be focussed primarily on domestic matters. Its primarily domestic orientation and reduced capabilities would provide a very limited capability to: defend territorial integrity, ensure national sovereignty and support South Africa’s continental leadership role.

ii) The significantly reduced force design would have to arrest the critical decline in the Defence Force and establish limited capabilities that:

1. are lighter and cheaper with a greater tooth-to-tail ratio;
2. reduce the overhead costs of headquarters and command structures to single command corps;
3. establish balance within a lighter force;
4. reside within relatively unsophisticated main operating systems;
5. meet a significantly reduced level of standing domestic and international defence commitments; and
6. promote a spatially dispersed footprint.

(iii) This significantly redesigned force would have to be modelled according to the following concepts for it to develop utility:

1. A lighter, infantry-based landward capability focussed primarily on internal operations.
2. An air defence capability focussed primarily on light, tactical mobility.
3. A littoral maritime defence capability focussed primarily on the protection of territorial waters.
4. A Special Force capability focussed on a limited spectrum of Special Force operations.

(b) Strategic Policy Option 2: Implement the Defence Strategic Trajectory Independently

1. The pursuit of the Defence Strategic Trajectory will, over time, develop a defence capability capable of conducting major combat operations in the defence and protection of South Africa, its national sovereignty and territorial integrity.
2. The capability created would be commensurate with South Africa’s continental leadership responsibilities, establishing the gravitas required in support of Africa’s peace and security architecture. The ability to project forces over long distances and sustain them for protracted periods of time will further bolster South Africa’s continental leadership responsibilities and influence, as well as making a significant contribution to the security of South Africa’s vital national interests.
3. Should Government wish to pursue the Defence Strategic Trajectory on a solely national basis, it would take significant time to establish all the necessary competence and capabilities to achieve the degree of defence capability set out in Milestone 4.

(c) Strategic Policy Option 3: Implement the Defence Strategic Trajectory in Partnership

1. Government may consider a course of action that would shorten the duration of the Defence Strategic Trajectory. In essence, the main point of leverage would be the extent to which Government might decide to pursue the Defence Strategic Trajectory with the assistance of either a strategic partner or a number of strategic partners.
2. Partnering, either with a single strategic partner or with multiple strategic partners in specific capability areas, would accelerate the overall implementation of the Defence Review and the Defence Strategic Trajectory, as well as leverage a number of funding options for the trajectory.

Reply:

Both the Department of Defence (DOD) and Armscor apply the Preferential Procurement 2017 Regulations (PPR) as promulgated. Wherein the 80/20 and 90/10 preference point system is applied as provided for in the Regulations and Guidelines. The 30% threshold for subcontracting applies to all designated groups where feasible. There is no special arrangement of 45% targeted for award to BBBEE service providers belonging to military veterans.

Reply:

The relocation of Air Force Base Ysterplaat is not under departmental consideration. 99% of SAAF aircraft operate in and out of Air Force Base Ysterplaat.

Reply:

DEPARTMENT OF DEFENCE

1. (a) A total of two (2) incidents of racism were reported to the human resource office for the period 2016/2017

(i) Incident One (19 July 2016). Alleged harassment in the work place leading to a claim of racism. Outcome: The member requested the grievance to be closed on 11 May 2017.

(ii) Incident Two (16 August 2016). Alleged incident of racism. C SANDF took a decision that the Chief of the South African Air Force should investigate this matter and provide him with the detailed report. Outcome: The grievance is still open as the investigation is ongoing.

 

DEPARTMENT OF MILITARY VETERANS

There were no racism incidents reported in the Department of Military Veterans since 2016 to date.

MILOMBUD

There was no case of racism reported within the Office of the Military Ombud during the specified period.

CASTLE CONTROL BOARD

There were no cases of racism reported at the Castle Control Board

DEFENCE FORCE SERVICE COMMISSION

There were no cases of racism reported at the Defence Force Service Commission.

ARMSCOR

1) There was no case of racism that was reported at Armscor.

2) Not applicable.

Reply:

	2013/2014	2014/2015	2015/2016	2016/2017	2017/2018	2018/2019 since 1 Apr
	R'000	R'000	R'000	R'000	R'000	R'000
ATTACHÉ ACCREDITATION	3,360	973	2,485	761	1,229	144
ENTERTAINMENT EXPENSES	6,111	1,944	2,301	3,783	2,513	778
TOTAL	9,471	2,917	4,786	4,544	3,742	922

DEPARTMENT OF DEFENCE

Entertainment Expenditure by Financial Year

DEPARTMENT OF MILITARY VETERANS.

Entertainment Expenditure by Financial Year
	2013/14 FY	2014/15 FY	2015/16 FY	2016/17 FY	2017/18 FY	2018/19 FY	2019/20 FY	2020/21 FY
	Audited AFS	Audited AFS	Audited AFS	Audited AFS	Unaudited	Budget	Budget	Budget
R'000
Budget	478	669	264	-	-	105	111	117
Actual	42	-	-	-	-	-	-	-

Reply:

The National Department of Public Works is the custodian of all immovable assets that vest in National Government and as such is responsible for all facility life cycle management functions. The Memorandum of Agreement was signed in 2015 by Minister of Public Works to transfer the facility life cycle management functions on Defence Endowment Property. (specifically immovable assets). The process is underway to be concluded in the Medium Term. Therefore there is no company invested on any land allocated to the DoD by NDPW.

Reply:

1. The South African National Defence Force does not have (a) A class or (b) D class reservists who were in service on (i) 31 May 2012 and (ii) 31 May 2018;

2. The South African National Defence Force does not have A class or D class reservists who left because they were not able to do firearm competency tests.

3. The South African National Defence Force does not have D class reservists who have been converted to A class between 31 May 2012 and 31 May 2018.

4. Further relevant details with regards to the question are:

(i) Class A and D reservists are members who have been appointed by the National Police Commissioner to render services as a volunteer in support of the Police.

(ii) Members of the National Defence Force who volunteer their service are members of the Reserve Force of the South African National Defence Force.

(iii) In the South African National Defence Force there is currently a total of 20 671 volunteers serving in the Reserve Force and are not categorised into classes. Of these 20 671, approximately 15 000 are called-up annually to render service, including participation in peace support operations, border protection and training.

Reply:

(1)(a) yes

(i) yes

(ii) yes

(aa) Mr Charles Nqakula (spouse)

(bb)(aaa) and (bbb)

DATE	DESTINATION	PURPOSE	Fam Member
11-18/7/14	Paris, France & London	Official Visit as a Spouse	Mr C Nqakula
19-27/9/14	New York, USA	Official Visit as a Spouse	Mr C Nqakula
21-24/2/15	Abu Dabi	Official Visit as a spouse	Mr C Nqakula
13-18/4/15	Russia	Official Visit as a Spouse	Mr C Nqakula
18-22/4/15	Jarkata & Indonesia	Official Visit as a Spouse	Mr C Nqakula
22-26/4/15	Instantbul & Turkey	Official Visit as a Spouse	Mr C Nqakula
7-12/5/15	Russia	Official Visit as a Spouse	Mr C Nqakula
27-29/6/15	Lesotho	Official Visit as a Spouse	Mr C Nqakula
9-12/7/15	Kenya, DRC & Goma	Official Visit as a Spouse	Mr C Nqakula
24-25/8/15	Burundi	Official Visit as a Spouse	Mr C Nqakula
30/8-1/9/15	Ethiopia	Official Visit as a Spouse	Mr C Nqakula
13-18/9/15	New York	Official Visit as a Spouse	Mr C Nqakula
22-30/9/15	London	Official Visit as a Spouse	Mr C Nqakula
13-19/10/15	DRC & Sudan	Official Visit as a Spouse	Mr C Nqakula
31/10-5/11/15	Thailand	Official Visit as a Spouse	Mr C Nqakula
6-10/11/15	Burundi, Sudan & Dakar	Official Visit as a Spouse	Mr C Nqakula
14-16/1/16	Ethiopia	Official Visit as a Spouse	Mr C Nqakula
18-19/1/16	Gaborone, Botswana	The purpose of the official visit as the Spouse	Mr C Nqakula
27-31/1/16	Ethiopia	The purpose of the official visit as the Spouse	Mr C Nqakula
12-24/3/16	New York	Official Visit as a Spouse & Companion	Mr C Nqakula
25-29/4/16	Moscow, Russia	Official Visit as a Spouse	Mr C Nqakula (Spouse) (
2-5/12/16	Cuba	Official Visit as spouse	Mr C Nqakula
25-31/1/17	Ethiopia	Travelled as a spouse on an official Visit	Mr C Nqakula
25-29/3/17	Pakistan	Official Visit as the spouse	Mr C Nqakula
3-6/12/17	Serbia	Official visit as the spouse	Mr C Nqakula
22-29/1/18	Ethiopia	Official Visit as the spouse	Mr C Nqakula
2-7/4/18	Russia	Official Visit, travel as the Spouse	Mr C Nqakula’
27/6-2/7/18	MAURITANIA	Official Visit as the spouce	Mr C Nqakula:
14-19/7/18	London & France	Official Visit as spouse	Mr C Nqakula

(cc)(aaa) and (bbb): The Ministerial Handbook determines that  “The costs for official journeys abroad by Members, and their spouses or adult family members accompanying them in official capacity, are for the account of the relevant Department”.

(2)  Yes

Reply:

(1) (a) The Minister appointed Lt General (Ret) D.M. Mgwebi as the Acting Director General in the Department of Military Veterans as from 05th June 2018 until 04th June 2019.

(b) SANDF Chief Joint Operations from 2011 – 2015, thereafter deployed to UN MONUSCO Force Commander 2016 - 2018.

(c) Qualifications – Diploma in Defence Management and a degree in Business Administration from the University of South Africa.

(2) None

(3) The Department hasn’t outsourced any of its audits.

Reply:

1. The alleged dilapidation of the SAASIC Unit does not have any adverse impact on the Landward Defence of the Republic of South Africa as a total of 208 horses are currently maintained by SAASIC and only 40 horses are employed in Operation CORONA (Border Safeguarding) in the Musina vicinity (Limpopo Province). A portion of the rest of the horses at SAASIC is used for training purposes and a further platoon of horses (circa 40 horses) has been identified to relieve the horses currently on the border.

2. There is currently no proof that the Memorandum of Understanding between the SANDF and the NSPCA has been breached, by either party. The reason(s) for the alleged neglect is the subject of an investigation, recently concluded.

3. Positive. A Board of Inquiry was constituted and has concluded its investigation.

4. The Board of Inquiry was recently concluded and its findings and recommendations are under review. Disciplinary steps – if any – against (any) individual(s) will be taken if so warranted after the review.

Reply:

Question 1

A number of (movable) assets/furniture of the DMV were attached and removed in terms of a Court Order in the Z. Matunjwa matter. DMV approached Court in this regard and the property was returned within 5 days as per the order of the Court.

Question 2

The DMV (immovable) property was never repossessed. Employees continued to render a service even when the movable property was removed. They were paid as they continued to work even with fewer equipment/furniture. If an employee is not able to perform due to any repossession or attachment/removal of property, which is not his/her fault, then his/her salary may not be stopped as that person cannot be held responsible for such an event outside his/her control.

Reply:

(1)(a) The medical technologist has been appointed. The contract is with effect from 1 July 2018. Consultations between Techtura, who is the principal agent, and 1 Military Hospital, who is the end-user, will commence on 1 July 2018.

(b) The project at 2 Military Hospital fell under the Department of Public Works, and the tender to appoint the contractor (principal agent) included the procurement and installation of all major medical equipment under one contract. The project at 1 Military Hospital is being carried out by the Defence Works Formation. Therefore a separate tender process had to be embarked upon to procure the services of the medical technologist.

(c) Additional costs are that of cost escalation due to the delay in appointing the medical technologist, as well as inflationary costs and the cost of continued outsourcing over the month/years of delay in commencing with the project.

(2) The Laboratory Department at 1 Military Hospital is functional.

The Radiology Department at 1 Military Hospital is not fully functional due the delay in the completion of the refurbishment. Highly-specialised main medical equipment such as the magnetic resonance imaging (MRI) scanner, the computerised tomography (CT) scanner, the catheterisation laboratory and bigger X-ray machines cannot be installed in temporary areas. These highly specialised investigations are outsourced. Investigations with normal X-ray equipment, portable X-ray equipment and ultrasound equipment are functional and are performed in the hospital.

Reply:

The information required in this question deals with the strength of the South African National Defence Force and due to its security sensitivity it cannot be made public, but can be only be discussed in a closed session of the Joint Standing Committee on Defence.

Reply:

MILOMBUD

No incidents of sexual harassment were reported at the office of the MILOMBUD

CASTLE CONTROL BOARD

No incidents of sexual harassment were reported at the Castle Control Board

DEFENCE FORCE SERVICE COMMISSION

No incidents of sexual harassment were reported.

ARMSCOR

1) There was one sexual harassment case reported in 2016; and there was none in 2017.

2) The case was investigated and there was a full disciplinary enquiry against the employee.

Reply:

(1)(a) What steps has the Surgeon General taken to address the long delays in procurement of needed medical equipment for military hospitals and

The SA Military Health Service is not a single role player in the tender-procurement process and is largely dependent on the placing of authorised procurement on external entities. The SA Military Health Services has streamlined internal logistics processes and aligned these processes to respond speedily to concerns from the Central Procurement Services Centre. Furthermore additional funding from National Treasury are being utilised to procure medical equipment. Monitoring of these processes are addressed in the weekly Command Council of the SA Military Health Service.

(b) what are the reasons that the procurement of a computed tomography scanner at 2 Military Hospital took eight months?

The procurement of the computerised tomography (CT) scanner took place in 2009. The delay was not linked to the initial procurement process, but to the procurement process in the repair of the CT scanner. The procurement process for repair was above the SAMHS delegation and was therefore referred to the Central Procurement Service Centre. The Central Procurement Service Centre referred the initial procurement request back with questions regarding the preferred supplier. This resulted in a delay of the repair of the equipment.

Reply:

ARMSCOR

Armscor has not undertaken any lifestyle audit in the past three financial years. Lifestyle audits are being considered by management and the process of planning will be undertaken as part of the new financial year audit process after all necessary considerations such as the legislative and resources requirements. Considerations, include, the use of the service provider in the approved panel of service providers, the basis for the lifestyle audits being management request, special assignment and the whistleblowing system and direct reports, as well as the cost benefit analysis. To date no request has been made for a lifestyle audit.

DEPARTMENT OF MILITARY VETERANS

Lifestyle audit has not been conducted in the Department of Military Veterans. There’s no plan in place.

DEPARTMENT OF DEFENCE

The Department of Defence has not conducted any lifestyle audit during the past three years.

MILOMBUD

The office of the Military Ombud to date has not exposed the head of the institution, nor senior management service members to a lifestyle audit over the past three financial years.

CASTLE CONTROL BOARD

None of the CCB's Management Team has undergone life style audits during the past five years. 

DEFENCE FORCE SERVICE COMMISSION

No lifestyle audit was conducted in the DFSC in the past three financial years.  

Reply:

ARMSCOR

Armscor has not had any cases relating to the Prevention and Combating of Corrupt Activities Act, Act 12 of 2004.

QUESTION 2

None, as per above.

DEPARTMENT OF DEFENCE

(a) No cases relating to the Prevention and Combating of Corrupt Activities Act have been referred to the South African Police Services and Directorate for Priority Crime Investigation by the Military Police Division since financial year 2004. The Military Police Division is currently investigating all reported corruption cases within the Department of Defence.

(b) No cases relating to the Prevention and Combating of Corrupt Activities Act have been referred to the South African Police Services and Directorate for Priority Crime Investigation by the Military Police Division since financial year 2004. The Military Police Division is currently investigating all reported corruption cases within the DoD.

DEPARTMENT OF MILITARY VETERANS

a) Two cases have been reported by the DMV to the SAPS relating to the Prevention and Combating of Corrupt Activities Act 12 of 2004, as amended

b) Both the above cases are being investigated by the SAPS

MILOMBUD

There was one (1) case relating to the Prevention and Combating of Corrupt Activities Act 12 of 2004 reported to the SAPS, but investigated internally, however, the outcome from SAPS investigation is still awaited

CASTLE CONTROL BOARD

No case has been made or pursued in terms of the specified Act.

DEFENCE FORCE SERVICE COMMISSION

No cases have been referred by the Defence Force Service Commission

Reply:

1. The response to this question contains classified information and can only be disclosed in a closed session of the Joint Standing Committee on Defence.

Reply:

(1)(a) How is the loss of scarce skills being addressed at 1 Military Hospital,

The loss of scarce skills has decreased dramatically over the past three years. In the past 24 months, 24 medical doctors have been appointed, three of these being specialists. However, the total number of health care practitioner (HCP) posts available for all the hospitals (specifically with regard to medical doctors, specialised nurses, technicians in the laboratory, radiology and technologists to undertake the repair and maintenance of equipment) will be reviewed to ensure that the SA Military Health Service takes full advantage of the results of the refurbishment and medical equipment procurement.

(b) Why is the appointment of medical doctors delayed while the hospital is experiencing a high vacancy rate,

As stated in the response to the first part of the question, the personnel acquisition process has improved dramatically and no delays are currently experienced in the appointment of HCPs. Hence the appointment of 24 health care practitioners in the past 24 months.

(c) Has the occupational-specific dispensation been implemented fully at the hospital, and

The occupational-specific dispensation has been implemented fully with respect to medical doctors. Some challenges are being experienced in the application of the occupational-specific dispensation with regard to nursing personnel.

(d) How does the SA Military Health Service plan to minimise outsourcing the ostensibly expensive medical services that can cause a significant over-expenditure at the expense of other medical services?

The SA Military Health Service has put management interventions and measures in place to minimise the cost of outsourcing whilst awaiting the completion of the refurbishment project. The management interventions include the case management (or concept of “managed health care”) of all patients who are outsourced in order to control and manage the level of care and ‘hospital stay’ as ‘hospital stays’ are a major cost driver. The managed health care concept furthermore ensures that each patient receives the level of health interventions and care as approved. In the event that any additional health interventions or care is required, further approval within the managed health care concept takes place.

Further management interventions include negotiated and preferred agreed tariffs with particular health providers. Also, in cases where particular specialist interventions are required that could be performed at the military hospitals, the specialist is encouraged to perform the procedure in the military hospital. As the sustainment of stock levels for pharmaceuticals and medical consumables is also critical in minimising cost, the matter has been registered as a standing agenda point on the weekly SA Military Health Service Command Council meetings.

Reply:

(1)(a) What is the level of medical stock in the pharmacy at 1 Military Hospital,

Pharmaceuticals and medical consumables for emergencies and life-threatening situations are fully stocked and available at 1 Military Hospital. The medical stock levels at the 1 Military Hospital pharmacy stands at 75%. The stock levels should improve to 85% by the first week in July when more deliveries of stock are expected. Some challenges are experienced with the suppliers of pharmaceuticals at a national level.

(b) Why has this very important indicator been removed by her department and

The performance indicator that refers to the stock levels of pharmaceuticals and medical consumables has not been removed by the department. A decision was made to register the performance indicator as classified as stock levels are regarded as sensitive strategic information.

(c) What is the direct impact of the medical stock level on soldiers and military veterans?

The impact of medical stock levels is minimised by alternative arrangements such as the buying-out of medication that is not available in the SA Military Health Service. There is thus no direct impact on soldiers and military veterans, except the increased cost to the Department of Defence of the buy-out from private pharmacies.

Reply:

The Intensive Care Unit at 2 Military Hospital is at present functional and the admission of patients has been re-established.

Reply:

(1) (a) The findings and recommendations of the investigation by Military Psychological Institute (MPI) were as follows:

(i) Findings. More than 90% of the members at Internal Audit Division were interviewed by Industrial Psychologists of MPI and consultants of the South African Air Force’s Directorate Management and Renewal Service (DM&RS) Renewal Services and the findings were confirmed by more than 75% of members interviewed. The results of the quantitative data supported the findings of qualitative data. The Weisbord Six Box Model was used as a departure point in the psychologists’ approach to the Organisational Diagnosis (OD). The model focused on six dimensions in an organisation and provided key information on the dimensions that might impact on an organisation’s effective functioning. Information obtained from individual interviews and focus groups was thematically analysed and integrated in order to identify main themes according to the model used. The positive aspects within each dimension were also addressed in congruent with developmental aspects. The main themes of the findings were as follows:

1. Strategy and Purpose. Members of the Division were found to be clear on what internal audit entails, however, in most cases, there were no clear written job descriptions and performance appraisal documents.
2. Structure. Insufficient structure and lack of clearly defined command channels leads to role ambiguity and confusion in the work place.
3. Rewards and recognition. Absence of formal reward and recognition system made members feel unappreciated.
4. Helping mechanisms. The lack of formalised and clearly communicated policies and procedures create confusion within the Division.
5. Relationships. Management of differences and conflict was identified as a concern. Some of the relationship challenges related to centralised decision making process, lack of communication and post-conflict relationship management.
6. Leadership. Members of the Division were aggrieved by the leadership style adopted by top management.
7. External environment. Long process of audit reports finalisation, recruitment process and support from higher headquarters was were found to be a concern.

(ii) Recommendations. The following recommendations were made:

1. It was recommended that the CAE works with an executive coach of senior status.
2. A strategic planning session needs to be conducted, followed by the implementation of a supportive organisational structure and culture.
3. The CAE should operate in a more strategic and functional capacity and focus on intern development, project output and quality control.
4. Staffing of critical positions to avoid staff burnout.
5. The appointment of Divisional Chief of Staff to act as a link between the Divisional Head and staff members.
6. All members (including the CAE and her management team) should be given the opportunity to see a clinical psychologist to debrief.

(b) The entities’ intervention was requested on 14 November 2016.

(c) The entities reported to Major General M. Sitshongaye, Chief Director HR Strategic Direction and Policy.

(d) The organisational diagnosis was conducted over the period 23 November to 05 December 2016.

(2) (a) The entire OD has been finalised.

(b) The Department has implemented some of the recommendations of the OD and is in the process of processing others.

(c) The timeframes for the implementation of the OD recommendations is continuous. Other recommendations have been implemented, while others are in progress.

Reply:

(1) The assessment by Military Psychological Institute (MPI) and the South African Air Force’s Directorate Management and Renewal Service (DM&RS) did not make its findings on an individual, however conducted an organisational diagnosis on the entire Division. The assessment’s findings were far reaching ranging from strategy and purpose, structure, rewards and recognitions, helping mechanism, relationships, leadership, and external environment.

(2) The following recommendations were recommended by the MPI intervention:

a. It was recommended that the CAE works with an executive coach of senior status.

b. A strategic planning session needs to be conducted, followed by the implementation of a supportive organisational structure and culture.

c. The CAE should operate in a more strategic and functional capacity and focus on intern development, project output and quality control.

d. Staffing of critical positions to avoid staff burnout.

e. The appointment of Divisional Chief of Staff to act as a link between the Divisional Head and staff members.

f. All members (including the CAE and her management team) should be given the opportunity to see a clinical psychologist to debrief.

(3) Yes, one of the recommendations was that the CAE works with an executive coach.

(a) Prof Frans Cilliers, Phd, an Industrial & Organisational Psychologist from the University of South Africa was appointed as an executive coach.

(b) The executive coach gave a report on his coaching task.

(c) The Department is still processing the report of the executive coach.

(4) The department is still processing the various intervention reports for recommendation of the way forward to the Minister of Defence and Military Veterans. The matter is therefore not yet concluded.

Reply:

QUESTION 1

Rm 127 was allocated to conduct Anti-piracy in the Mozambican Channel as Op COPPER. Of the Rm 127 that was allocated, R74 130 523 was reallocated within the DoD due to budget cuts, thus leaving the Operation with R52 869 477 and the breakdown is as follows:

a. Compensation of Employees R34 898 573

b. Good and Services R17 925 762

c. Machinery and equipment R 45 142

TOTAL R52 869 477

QUESTION 2:

According to the actual reimbursement received versus the expected reimbursement the breakdown is as follows:

MOU Expected

a. Personnel R 251 656 006,88

b. Self-sustainment R 61 104 030,93

c. Main Equipment R 85 018 126,60

Sub-total R 397 778 164,42

d. Actual Reimbursement Received R 232 505 094,17

e. Amount still due by UN R 110 606 126,28

f. Reimbursement forfeited R 54 666 943,97

The forfeited reimbursement is due to the unserviceability of the prime mission equipment in the Mission Area. The effects of budget cuts have a negative impact on our operations and the maintenance of prime mission equipment; thus, result in the SANDF not being able to meet the strict UN assessment criteria for re-imbursement.

Reply:

1. All SMS members of the Department of Defence declared their financial interests for the 2016/2017 financial year as required by the Public Service Regulations. The administration regarding the 2017/2018 financial disclosures has not yet being finalised.

2. All members complied.

3. a. There are currently twenty three (23) SANDF members on leave on instruction of the Chief of the South African National Defence Force (C SANDF) and 08 Public Service Act Personnel (civilians) on leave on instruction of the Secretary for Defence at the following post/rank levels:

i. SANDF members:

(1) 1 x Maj Gen.

(2) 1 x Brig Gen.

(3) 1 x Col.

(4) 3 x Lt Col.

(5) 1 x Lt Cdr.

(6) 1 x WO2.

(7) 1 x S Sgt.

(8) 1 x Sgt.

(9) 1 x Cpl.

(10) 2 x Able Seamen.

(11) 10 x Airmen/Riflemen.

ii. Public Service Act Personnel (civilians):

(1) Food Service Aid.

(2) Prov Admin Clerk.

(3) Admin Clerk.

(4) Senior Internal Auditor.

(5) Prov Admin Clerk.

(6) Supply Support Driver.

b. Number of the specified SANDF members on leave on instruction at each rank levels for the specified number of days as on 01 June 2018.

S/NO	RANK	DATE OF SUSPENSION	PERIOD SUSPENDED	AMOUNT PAID FOR PERIOD OF SUSPENSION
	a	b	c	d
1	Maj Gen	12-Dec-17	5 mnths 19 days	R500 029
2	Brig Gen	12-Dec-17	5 mnths 19 days	R414 346
3	Col	12-Dec-17	5 mnths 19 days	R358 076
4	Lt Col	09-Dec-15	2 yrs & 5 mnths 21 days	R1 319 715
5	Lt Col	09-Dec-15	2 yrs & 5 mnths 21 days	R1 293 848
6	Lt Col	24-Jan-18	4 Mnths 7 days	R175 962
7	Lt Cdr	04-Apr-18	2 Mnths	R61 602
8	WO2	21-Jun-11	6 years & 11 mnths	R2 252 355
9	S Sgt	07-Jun-11	6 years & 11 mnths	R1 741 152
10	Sgt	17-Jun-11	6 years & 11 mnths	R1 707 027
11	Cpl	24-Jan-18	4 Mnths 7 days	R78 129
12	AB	17-Apr-18	1 Mnth 14 days	R15 401
13	AB	24-May-18	7 days	R3 593
14	Trp	21-May-07	11 years 10 days	R2 073 621
15	Rfn	10-Feb-11	7 years 3 mnths 18 days	R1 319 577
16	Pte	28-Dec-09	8 years 5 months	R1 478 520
17	Amn	09-Apr-14	4 years 1 mnth 22 days	R656 448
18	Rfn	24-Jan-18	4 Months 7 days	R60 396
19	Rfn	24-Jan-18	4 Months 7 days	R60 396
20	Rfn	24-Jan-18	4 Months 7 days	R61 605
21	Rfn	24-Jan-18	4 Months 7 days	R60 396
22	Rfn	24-Jan-18	4 Months 7 days	R60 396
23	Rfn	24-Jan-18	4 Months 7 days	R56 914

c. Number of the specified civilian members on leave on instruction at each rank levels for the specified number of days as on 01 June 2018.

S/NO	RANK	DATE OF SUSPENSION	PERIOD SUSPENDED	COST OF SUSPENSION
01	Food Service Aid	19/08/2016	21 Months 19 days	R186 003.40
02	Prov Admin Clerk	19/08/2016	21 months 19 days	R346 020.84
03	Prov Admin Clerk	19/08/2016	21 months 19 days	R346 020.84
04	Admin Clerk	27/11/2017	6 months 8 days	R135 309.24
05	Senior Internal Auditor	11/12/2017	5 months 26 days	R154 987.36
06	State Accountant	11/12/2017	5 months 26 days	R178 736.80
07	Prov Admin Clerk	23/05/2018	14 days	R8 408.40
08	Supply Support Driver	23/05/2018	14 days	R 4 726.12

4. An estimated total amount of R17 169 717.00 has been paid to members and employees who are placed on leave on instruction.

5. No.

Reply:

1. (a) The matter regarding the collective grievance of the Internal Audit

Division was referred to the Office of the Public Service Commission on 04 October 2016.

(b) The matter was referred to the Office of the Public Service Commission by Adv S.T.B. Damane-Mkosana, the Legal Advisor to the Secretary for Defence.

(c) The matter was referred to the Office of the Public Service Commission by means of a formal letter referenced DS/R/104/29

2. The Office of the Public Protector acknowledged receipt of the formal letter on 13 October 2016.

Reply:

This matter is subject to ongoing legal processes.

Reply:

This matter is subject to ongoing legal processes.

Reply:

 

SALARY BAND	RANK	CSANDF	OCCUPATION CATEGORY	GRAND TOTAL
			COMBAT	COMBAT SUPPORT	PROFESSIONAL	SUPPORT	TECHNICAL
Senior Management Service Band 16	Gen	1						1
Senior Management Service Band 15	Lt Gen/V Adm		4	1	1	3		9
Senior Management Service Band 14	Maj Gen/R Adm		15	11	5	7	2	40
Senior Management Service Band 13	Brig Gen/R Adm (JG)		59	29	15	51	9	163
Senior Professionals	Capt/Lt (SAN) – Col/Capt (SAN)				112			112
Highly Skilled Supervision	2Lt/Esn – Col/Capt (SAN)		1,960	1,695	2,020	2,641	1,025	9,341
Highly Skilled Production	Pte – Lt Col/Cdr		4,142	2,879	2,341	8,543	3,909	21,814
Skilled	Pte/Amn/Smn – Sgt/PO		16,291	3,308	1,104	7,363	1,605	29,671
Military Skills Development System	Pte/Amn/Smn		1,993	502	162	707	93	3,457
GRAND TOTAL	1	24,464	8,425	5,760	19,316	6,643	64,608

Note: The table above excludes Public Service Act Personnel.

Reply:

The purpose of offering voluntary severance packages was part of achieving the organisation’s strategic objectives of deriving cost savings from retiring targeted employees early. The total cost to company packages versus the severance package were drafted into two package offers based on cost savings the organisation will realise and the financial implication per employee. The two offers were: two weeks’ pay for every year of service plus company pension where the company can derive savings within three years of the total severance package up until 60 years of age. The second package offer was one week’s pay counter-offer, where the company could not derive savings within three years, for every year of service plus company pension benefits up until 60 years of age. The total value and the package per employee cannot be released however none of the non-critical positions will be replaced. The cost savings have been taken into account through meeting the operational deliverables of the organisation by transferring skills of critical positions through internal recruitment and non-replacement of non-critical skills.

Reply:

ARMSCOR

a) FeverTree Consulting was contracted for the development of the Turnaround Strategy and its Implementation Plan in 2015 for the total amount of R 56 283 616.00. The total amount paid to Fevertree Consulting by 30 April 2017 (end of Phase 1) amounts to R55 420 538.21. To date an additional R2 886 657.74 has been paid to Fevertree as part of Phase 2 of the turnaround implementation. The appointment was approved by the Chief Executive Officer and Chief Financial Officer as the delegated authority.

b) Armscor’s Internal Audit is a Division within Armscor SOC Ltd. Deloitte Consulting was the only consulting firm contracted within Internal Audit Division. Deloitte was contracted for the specialised IT Audit Services, specifically to the server security to which the Internal Audit personnel did not have the relevant capability and capacity for such a service. The services were required to provide audit assurance against the risk related to information security and the ERP Project. Two specialised IT audit projects were contracted at the negotiated amount of R419 353.13 costing per project R179 723.00 (Server Security Audit) and R239 630.00 (ERP Implementation Project Assurance). The total amount paid for the financial year ended 31 March 2017 is R299 538.42 with the remaining amount of R119 814.86 to be paid in the current financial year 2018/19 after the completion of the audit work remaining.

The process of the contracting was part of the panel of service providers approval process which started in the year 2017. The consulting firm was appointed on the 1 December 2017 for the IT Security Audit work which started in mid-January after the security clearances of the Consulting firm resources. The appointment for the ERP Technical Project Implementation Assurance work was on the 13 February 2018. The appointment letters were signed by the Executive Manager - SCM and were under the management of Internal Audit Division by Head of Internal Audit / CAE.

DEPARTMENT OF MILITARY VETERANS

a) Number of Consulting Firms or Companies that are currently contracted.

(i) Number of Consulting Firms or Companies

There is presently two (2) Consulting firms contracted by the Department.

(ii) Entities reporting to the Minister of Defence and Military Veterans

Not applicable to DMV

b) Name of each consultant and Details of service provided

(i) Name of Consulting Firm

Sizwe Ntsaluba Gobodo Advisory Services and Bowmans

(ii) Details of service

Sizwe Ntsaluba Gobodo Advisory Services: To conduct forensic investigation service in the provisioning of accommodation, text books and laptops towards private higher education support programme.

Bowmans: Provision of legal services in response to Public Protector inquiry.

aa, Start Date –

SNG contract started on the 08th May 2017

Bowmans contract started on the 23 March 2017

bb, Time period – the contract will end upon the completion of the scope by Service provider which will be within 24 months from the contract date.

cc, Monetary value

SNG total contract value is R498 584.02

Bowmans contract value is R460 000.00

dd, Name and position of Official who signed off the contract.

DEPARTMENT OF DEFENCE

The DOD currently has four (03) consulting firms.

S/No	File Ref Number	Name of Each Consultant/ Details of Awarded Service Providers or Companies	Relevant Details of the Services Provided (Scope of Work)	Start and End Date	Adjudicating Committee, Name and Position Of Individual Who Signed the Contract	Contract Value
01	CPSC/UB/G/475/2016	Abaziyo Consulting Engineers	Infrastructure and planning services for the Construction of Perimeter Fences and Walls	01 Apr 17 to 30 Apr 18	DCPB: Capt(SAN) A.M. Bologo OC CPSC	R77 101 676.00
02	CPSC/B/G/224/2015	Deloitte Touche	International Through Life Capability Management	01 Dec 15 to 30 Nov 19	DCPB: Capt (SAN) A.M. Bologo OC CPSC	R209 708 948.63
03	CPSC/UB/G/522/2014	Tectura Architects Pty Ltd	Multi- Professional Consultant Team for the Refurbishment and upgrading Project of 1 Military Hospital (1st Floor) and additional requirements	10 July 2015	DCPB: Capt (SAN) A.M. Bologo OC CPSC	R29 109 568.26

Reply:

Audited and verified assets with the following values were kept at contractors premises during the past four years:

2017/2018 = R 560,422,824.85

2016/2017 = R 563,172,391.85

2015/2016 = R 518,504,815.31

2014/2015 = R 509,181,571.60

Tangible and re-usable items are mainly the following:

a) Research and development items

b) Manufacturing equipment

c) Test and evaluation equipment

d) Maintenance equipment and tooling

e) Vehicles and moving equipment

f) Office equipment

g) Computer equipment

h) All demonstration and development models that are not intended for destruction during tests.

In addition to the above, with respect to stock, Inspection /Release/Acceptance Certificates are issued by Armscor Quality Assurance Representatives following successful inspection of each stock or item presented for acceptance. The certificates issued by the Armscor Quality Assurance Representatives clearly illustrate the delivery address of the items accepted, and which are retained at contractor premises.

QUESTION 2

What are the full details of the records of audits conducted on assets and stock for the past four financial years;

RESPONSE

Assets are physically verified by Armscor verification officers on an annual basis, and reports in this regard are published.

The process of verification of assets was audited by Armscor’s Internal Audit Division during 2016/17, and action plans relating to the recommendations for the improvement of the verification process are in the process of being executed.

QUESTION 3

Whether all assets and stock at contractors have been (a) accounted for and (b) verified by Armscor (i) in the past three financial years and (ii) since 1 April 2018?

RESPONSE

a)  Assets and Stock at Contractors are all accounted for:

b) Every financial year, Armscor Assets Verification Officers conduct physical verification audits on all the Assets at Contractors. The process of verification of assets and stock at contractors for the 2018/19 financial year commended on 1 April 2018, and will be completed by 31 March 2019.

Reply:

a) Total cost of Rooivalk Helicopter unit in the Democratic Republic of Congo for financial year 2017/18 is: R122 316 383.04

Flying Cost per year = R104 927 400

Rockets for training per year = R8 165 783.04

Fuel cost per year = R9 223 200.00

Total Cost R122 316 383.04

b) The details of statements forwarded to the United Nations for reimbursement for the Rooivalk Helicopter Unit are:

Letter of Assist 2013-076 (from 01 November 2013 to 30 October 2014)

Flying Hours: R128, 746,200.00

Ammunition: R11, 360,283.55

Paint (White): R965, 412.00

Total: R141, 071,895.55

Letter of Assist 2014-062 (from 31 October 2014 to 30 October 2016)

Flying Hours: R296, 415,360.00

Ammunition: R130, 942,961.20

Total: R427, 358,321.20

c) The agreement between the United Nations and Ukraine to employ the MI-24 helicopter is a legal agreement and a third party such as the Republic of South Africa is not privy to the contents of the costs contained in the agreement.

d) The Rooivalk helicopters are a resource that is dedicated for employment by the Force Intervention Brigade. Should the helicopter be withdrawn, the ability to employ Combat Air Support will no longer be directly available to South African Forces. The Rooivalk helicopter is armoured and can withstand light weapons fire and is utilised to gather intelligence by making use of its sensors. The helicopter is able to interdict targets with a high rate of fire in dense jungle terrain that ground forces are unable to reach.

The Rooivalk helicopter is a force multiplier to the Force Intervention Brigade and the risks associated are: reduced intelligence gathering capability, reduced fire power and the absence of an air interdiction capability will seriously reduce the combat potential of South African Forces to stabilise conflict affected areas in the Democratic Republic of Congo. Should the helicopter be withdrawn, the Force Intervention Brigade’s morale and confidence will be impacted on negatively.

Reply:

1. Yes, the complaint was against the Chief Audit Executive (CAE)

2. These allegations currently form the basis of a labour dispute and as such will not be discussed until the matter has been finalized.

Reply:

QUESTION 1

With reference to external fees,

Service providers that Armscor make use

There is a standing panel of legal firms that is utilised by Legal Services department as well the Employee Relations department. The panel was approved by EXCO and is reviewed every three years

How service providers are selected and contracted;

When the nature and the complexity of the dispute at hand warrants the appointment of a Labour Legal Expert, Employee Relations department would then recommend a service provider from the panel of approved service providers, for the approval of two Group Executives and the Chief Executive Officer. The recommendations of a service provider from the Employee Relations Department would be based on the availability, cost, experience, track record in disputes of the same nature. One of the cornerstones of fair labour practice as enshrined in both the Labour Relations Act and the Constitution is procedural fairness. Whilst each matter would be judged on its own merits Consistent application of the rule and precedence set in similar disputes is key in ensuring fairness when handling Employee Relations Disputes as result prior knowledge of the matter is some cases critical in appointing a service provider .

The Employee Relations Department is a small unit that is manned by one Specialist that specialises in labour law and looks after all the aspects of employee relations. Armscor legal department only has three commercial lawyers who focus mostly on projects and commercial contracts.

Whilst it is evident based on the summary below that majority of labour disputes are ruled in Armscor’s favour however some employees still chose to refer the matters to the labour court. Armscor would then exercise their right and oppose the matter, for example the below listed matters of employees who were dismissed for tender irregularities and the cases were ruled in Armscor’s favour by the CCMA however the employees still referred their cases to the Labour Court and Armscor opposed the matters.

Due to the nature of Armscor’s business there are cases which demand that we seek the intervention of external labour law experts .These matters involve intense investigations which deal with sensitive and secret information, they are lengthy due the evidence and voluminous documentation, for example the matter of the employee who was dismissed for being involved in espionage activities.

QUESTION 2

Details of the total legal fees related to dismissals and/or suspensions of employees for the past five years

Nature of Process	Legal Fees 2013-2018
Disciplinary Enquiry	R 1 299 932.99
CCMA	R 1 179 156.75
Labour Court	R 9  565 097 .10
Labour Appeal Court	R 770 000.65
TOTAL	R 10 214 321.51

Dismissal cases for the past five years

In the past five years Armscor has had an average of 5.8 dismissal cases per annum based on the following categories of misconduct. It is worth noting however that some employees resigned before their cases could be concluded and are thus not part of the below statistics. The Occupational Categories of the dismissed employees are as follows

Semi-skilled 8

Professionally Qualified 5

Unskilled 11

Skilled and Technical 2

Senior Management 1

Area	Number of Cases	Nature of the offence	CCMA Outcome	Labour Court Outcome
Armscor Head Office ( Pretoria)	1	Gross Misconduct -Theft	No referral	No referral
	1	Gross Misconduct - Attempting to solicit a bribe from a supplier	CCMA ruled in favour of Armscor	No Referral
	1	Poor work performance	No referral	No referral
	1	Misconduct -Unauthorised use of Company Property	No referral	No referral
	3	Gross Misconduct -Tender Irregularities	In one matter the CCMA ruled in favour of employee.	Armscor has applied for review and the matter at Labour Court
			The second matter the CCMA ruled in favour of Armscor	No referral
			Third matter CCMA ruled in favour of Armscor	Labour Court ruled in favour of Armscor
	1	Misconduct -Misuse of Company Vehicle	CCMA ruled in favour of Armscor	No Referral
	1	Gross Misconduct – Breach of Security	CCMA ruled in favour of Armscor	Labour Court ruled in favour of Armscor
	1	Misconduct – Loss of Security Clearance	CCMA had no Jurisdiction	Labour Court ruled in favour of Armscor
Dockyard -Capetown	1	Gross Misconduct -Fraud	No referral	No referral
	7	Misconduct – Desertion	No referral	No referral
	4	Theft	No referral	No referral
	1	Misconduct – Failure to Maintain Security Clearance due to a Criminal Record	No referral	No referral
	1	Constructive Dismissal	Matter is with CCMA	No referral
Alkantpan	4	Misconduct -Theft	No referral	No referral
	1	Misconduct -Misuse of Company Vehicle	CCMA ruled in favour of employee	Parties Reached Settlement
	2	Misconduct -Desertion	No referral	No referral
IMT - Capetown	1	Gross Misconduct –Insolence, using foul language and verbally abusing his manager	CCMA referral was withdrawn by applicant	No Referral

QUESTION 3

Cases of dismissal and/or suspension that have not been concluded

There are two cases that are pending. One employee resigned in 2018 October and then proceeded to file a constructive dismissal dispute. The second matter is that of an employee who is on suspension since March 2018 and the disciplinary enquiry is scheduled for the 9 March 2018

Date when the disputes arose

The employee was placed on precautionary suspension on the 7 March 2018

The employee resigned on the 28 October 2018

Reasons that each case has not been concluded

In respect of the employee that resigned in October the case is part heard by the CCMA and the next arbitration date is the 15 May 2018. In respect of the employee who is on suspension the disciplinary enquiry is scheduled to resume on 9 May 2018.

Reply:

a) (i) The status of Mr. Ramaphosa’s association with FeverTree Consulting (Pty) Ltd is as follows:

b) At the time of the appointment of FeverTree Consulting by Armscor, Mr Ramaphosa had resigned on 25 June 2012 from FeverTree Consulting and had no interest in the company and was not in any way associated with the company by any direct or indirect means.

c) What were the amounts budgeted for the turnaround of Armscor, (c) what amounts have been spent on the turnaround as at the latest specified date for which information is available, specifically in favour of FeverTree Consulting,

The total value budgeted for the Armscor Turnaround was R 56 283 616.00. The total amount paid to Fevertree Consulting by 30 April 2017 (end of Phase 1) amounts to R55 420 538.21. To date an additional R2 886 657.74 has been paid to Fevertree as part of Phase 2 of the turnaround implementation.

Payments made were against contracted deliverables and divided according to work streams. Six work streams were established with a total of 213 deliverables listed as follows:

Work streams	No Deliverables	Amount Paid
1. Designing a new vision for the future	23	R10 226 630.40
2. Developing New Revenue Driven Strategies	42	R 9 695 641.71
3. Enhancing and Improving Core Functions	28	R 5 861 433.40
4. Communication and Change Management	40	R 5 318 500.78
5. A New Governance Model for Armscor	45	R10 949 337.69
6. Driving Greater Efficiencies	35	R13 230 201.60
Total	213	R55 281 755.58

The contracting model adopted in phase 2, allows Armscor to approach various service providers by tender process, for support during the implementation using an approved panel of service providers. To date an additional R2 886 657.74 was paid to Fevertree Consulting, for 14 deliverables, as part of Phase 2 of the Armscor turnaround implementation, for the following projects:

Project No	No of Deliverables
Project 001 - Strategic Planning Implementation	9	R2 402 192.64
Project 008 - Dockyard Sustainability Plan	5	R 484 465.10
Total	14	R2 886 657.74

QUESTION 3

And (d) what are the details of (i) all the achievements and (ii) savings listed against the contractual milestones to date?

RESPONSE

Phase 1 of the Armscor Turnaround focused on an As-Is assessment and the creation of plans to bridge the gap between the current and desired end state.

(i) This table lists the key achievements of Phase 1:

Drive Revenue by Leveraging Core Strengths	To leverage the core (traditional) strengths; 16 opportunities were identified with 4 prioritised in the Acquisition service line. 3 non Acquisition related opportunities were identified i.e. Gerotek Testing Center, AB Logistics & the Disposal of Defence Equipment
Commercialisation of technologies & patents	62 commercialisation opportunities were identified which may be considered for commercialisation of IP and Technology in the civil Sector 5 with a recommended framework and approach to commercialisation
Championing Innovation (Business Development)	Developed a set of Business Development Frameworks for Armscor’s participation in revenue earning initiatives Developed a framework for the potential Products and Services offering that Armscor can take to the market on a revenue earning basis Developed a life cycle process for Higher Order Solutions sales Developed a framework for the potential business models and structures related to the Products and Services categories
Acquisition and SCM	Developed a framework for the introduction of an Acquisition Standards and Processes Knowledgebase that will streamline the programme specific tailoring of acquisition processes to enable more efficient acquisition programmes without compromising Armscor’s service delivery accountability. Developed a framework for the introduction of an Acquisition Programme Tracking and Management Reporting System that will enable the gathering of acquisition programme related information supporting the further optimisation of processes and issue resolution processes with clients and industry. Developed an architecture for a more efficient Armscor Procurement Management service. Developed a model for the extension of Armscor’s Procurement Management (SCM) services into a marketable revenue generating function Developed a concept for the introduction of an e-Procurement ICT platform supporting the above Business Development initiatives.
Technology Management and Administration	Developed a framework for the introduction of a Technology Portfolio Management function that will address the Client expectations. Developed a framework for participation of the TMA function in future Armscor Business Development related programmes
Sweating Special Assets	4 Armscor property assets were identified and recommended as priorities for sweating and realising revenue Developed a study on all Assets & a Strategy with a legal framework for sweating assets in FY 18/19 Established an SLA with DOD for sweating DOD assets.
Defence SOE Collaboration	Identified and prioritised opportunities for SOE collaboration (Transnet, CSIR, Denel) Modelled an operating partnership framework and contract between Armscor and SOEs Developed a Framework for localization, indigenization and defence SEZ participation.

The above mentioned frameworks and plans are the basis of the implementation Phase 2.

(ii) A total of R88,17m worth of savings were identified to be realised within a period of 12 months after the project. An amount of R 61,7m was accepted as potential savings for the organisation to pursue and implement. To date R23,45m of the accepted savings has been realised. Various Opex savings have been implemented and their consolidated gains will be quantified at the end of the FY 18/19.

Reply:

665 Response: Armscor implemented an efficient structure in order to respond to the objective of the Armscor Act, respond to the demands of the Department of Defence, to be cost-effective and to achieve its Turnaround Strategy. A benchmarking study with similar organisations and state owned enterprises such as Council for Scientific and Industrial Research (CSIR), South African Nuclear Energy Corporation (NECSA) was undertaken.

The restructuring of the executive management took into consideration the delegation and accountability by streamlining and strengthening the executive decision-making to create fewer executive committee members with broader spans of control. Price Waterhouse Coopers (PWC) benchmarked the recommended remuneration and approval by the Board of Directors was obtained. No budgets were increased to fund new salaries and market benchmarks placed the salaries at the lower pay scale quartile which is below midpoint for executive management.

New Response: The old structure had limited capacity to respond to the demands of the DOD as well as the new business endeavours for revenue generation as per the Turnaround Strategy whilst providing effective and efficient service to the DOD.

QUESTION 2

Will she provide a (i) detailed comparison between the old and the new structure, (ii) list of the demands and indicate if the demands are new or additional demands and (iii) detailed list of the new demands and (b) how will the new demands benefit Armscor and her department;

RESPONSE

Figure 1: Old Structure

Figure 2: New Structure

The new structure provides for a wider span of control, leaner executive body to drive quick decision-making across the organisation, broader scope of services and devolution of authority. This has assisted in removing fragmentation and duplication of activities across the organisation. This has resulted in clear reporting lines and clear single person accountability thus expediting operational execution. This allows for a more focused organisation in delivering to its demands of the DOD and its new commercial imperatives. The new commercial imperatives relate to the strategic objectives of the Turnaround which are revenue generation, cost savings, efficient and efficient delivery and stakeholder engagement.

QUESTION 3

With reference to each general manager and chief executive officer (CEO) in the new structure, what (a) additional responsibilities were added to the job description of each, (b) were the percentage increases, (c) are the details of the previous total cost-to-company and current total cost-to-company remuneration packages paid to each and (d) were the last performance bonuses paid to each general manager and the CEO?

RESPONSE

The new structure entailed more responsibilities per Group Executive, combination of similar functions and centralising of the Supply Chain Management with the Acquisition function in order to ensure strategic sourcing and smart buying. The new executives who received promotions were benchmarked against the market and capped at 37.5th percentile of the market which is the lower quartile. Given the fact that the Board took a decision not to extend normal annual increase inflationary adjustment to all the GE’s who were promoted as a result of the restructuring, the real increase for the GE level amounted to 13% (factoring 0% annual increase). All new executives’ performance bonuses were capped at maximum of 8% for the last financial year. This equates to an extra months’ salary.

Reply:

During the past five years Armscor was involved in the following litigation:

a) Beverly Securities v Armscor

The total amount in respect of legal costs from 1 April 2013 is R9 305 677 which represents the costs of external legal representatives, Gildenhuys Malatji in South Africa and Rui Pena & Arnaut in Portugal, including Counsel’s fees in South Africa and Portugal.

b) Quaker Peace Centre v The Government of the Republic of South Africa and Armscor

The total amount in respect of legal costs is R775 253 which represents the costs of external legal representatives, Maluleke, Seriti, Makume, Matlala Inc., including Counsel’s fees.

c) Steradian v Armscor

The total amount in respect of legal costs is R210 023 which represents the costs of external legal representatives Maluleke, Seriti, Makume, Matlala Inc, including Counsel’s fees.

d) New Generation Arms Management (PTY) Ltd v Armscor

The total amount in respect of legal costs is R69 431 which represents the cost of external legal representatives Gildenhuys Malatji Attorneys

e) MP Ngoasheng v Armscor

No legal costs have been invoiced up to date by the external legal representatives, Maenetja Attorneys.

f) Van Tonder v Armscor

The total amount in respect of legal cost is R1 228 380 which represents the cost of external legal representatives Mamabolo Phajane Attorneys, including Counsel’s’ fees.

QUESTION 2

What is the name of each procured item that is still with the service provider and/or subcontractor and (b) what is the total rand value of each procured item for the past three years;

RESPONSE

There are no items that are still with the service provider. All procured items are paid for upon receipt.

QUESTION 3

Whether Armscor can account for each rand spent (a) from the Special Defence Account (SDA) and (b) on the assets procured in the past 3 financial years;

RESPONSE

Armscor can account for all payments made in relation to the SDA.

QUESTION 4

Whether all unaccounted assets plus their value have been reported to the Auditor-General (AG) and included in the Annual Financial Statement and AG reports?

RESPONSE

All payments made in relation to the SDA are sent to Department of Defence for inclusion in the Annual Financial Statements and submitted to the AG annually.

Reply:

a) 2018-19 Financial year: R36,256,875,856.00.

b) Amount provided: R13,929,201,744.00.

Reply:

DEPARTMENT OF DEFENCE

In terms of section 5 of the Sexual Offence Act, Act 32 of 2007 all acts associated with sexual assaults are classified as criminal offences and should therefore be criminally prosecuted and penalised. The DoD also follows the same approach in dealing with all sexual assault cases whereby offenders are criminally charged, prosecuted and penalised.

6.1.2. Yes, Sexual Harassment is included in the under-mentioned departmental policies and instructions.

a. DODI/PERS/00038/2006

b. DOD/PERS/0008/2006

c. Joint Defence Publication /PERS/00026/2006 (Edition 1)

The DOD is currently in the process of developing a stand alone policy on Sexual Harassment.

POLICING PERSPECTIVE

(1) “Sexual Harassment” and “Sexual Assault’’ – 1 January 2015 to 1 April 2017: 25 Cases reported = Sexual Harassment (8) + Sexual Assault (17)

(i) 01 April 2015 – 31 March 2016 =07

1. Sexual Harassment (05)
2. Sexual Assault (02)

(ii) 01 April 2016 – 31 March 2017 =13

1. Sexual Harassment (01)
2. Sexual Assault (12)

(iii) 01 April 2017 – 13 March 2018 =05

1. Sexual Harassment (04)
2. Sexual Assault (01)

(2) what number of cases were (i) opened and concluded, (ii) withdrawn and (iii) remain open based on the incidents and (c) what sanctions were issued for each person who was found to have been guilty?

(b) “Sexual Harassment” and “Sexual Assault’’ – 1 January 2015 to 13 March 2018

(i) 25 Cases Opened and Concluded: Sexual Harassment (8) and Sexual Assault (17),

01 April 2015 – 31 March 2016 = 08

1. Sexual Harassment = 05
2. Sexual Assault = 03

01 April 2016 – 31 March 2017 = 13

1. Sexual Harassment = 10
2. Sexual Assault = 3

01 April 2017 – 13 March 2018 = 04

1. Sexual Harassment = 02
2. Sexual Assault = 02
3. Withdrawn: 04 cases,

01 April 2017 – 13 March 2018 = 04

1. Sexual Harassment = 00
2. Sexual Assault = 04
3. Remain open: 19 still under investigation,

01 April 2015 – 31 March 2016 = 09

1. Sexual Harassment = 05
2. Sexual Assault = 04

01 April 2016 – 31 March 2017 = 09

1. Sexual Harassment = 01
2. Sexual Assault = 08

01 April 2017 – 13 March 2018 = 01

1. Sexual Harassment = 00
2. Sexual Assault = 01

PROSECUTION PERSPECTIVE

1. Financial Year (F/Y) 2014/15:

a. Total number of cases reported = 15.

b. Total number of cases finalised= 6.

c. Total number of cases outstanding=9.

d. Total no of cases withdrawn=1

2. Financial Year (F/Y) 2015/16:

a. Total number of cases carried over from F/Y 14/15 =9.

b. Total number of cases reported =4.

c. Total number of cases finalised=1.

d. Total number of outstanding cases=13

e. Total no of cases withdrawn=0

3. Financial Year (F/Y) 2016/17

a. Total number of cases carried over from F/Y 15/16 =13.

b. Total number of cases reported =2.

c. Total number of cases finalised=1.

d. Total number of outstanding cases=15

e. Total no of cases withdrawn= 0

4. Financial Year (F/Y) 2017/18:

a. Total number of cases carried over from F/Y 16/17 = 15.

b. Total number of cases reported =5.

c. Total number of cases finalised=3.

d. Total number of outstanding cases=17.

e. Total no of cases withdrawn= 0

The current (F/Y 2017/18) number of sexual assaults cases outstanding (remain open) is =17.

1. The following table depicts the total number of accused found guilty of sexual assault and sentences thereof (sanctions):

Serial No.	Force No and Name	Description of Offence	Sentence/Sanction	F/Y
01	94683679PE MWO Indurith	Accused touched the private parts of the complainant	Fine of R6000 and suspended sentence of 6 months imprisonment and discharge from the SANDF, both sentences of 6 months imprisonment and discharge suspended for a period of 3 years	2014/15
02	9802261PE Sgt Monageng	Accused made sexual advances to a lady Capt	Fine of R1000	2014/15
03	94822285PE S/sgt Mfene	Accused touched breast and vagina of the complainant	Fine of R4000 and 180 days detention and reduction to the ranks wholly suspended for a period of 3 years	2014/15
04	04048856ME Rfn Ramuhashi	Touched the complainant’s nipples	Fine of R6000 and 365 days detention	2017/18

DEPARTMENT OF MILITARY VETERANS

REPLY

(1) (a) and

(b)The Department of Military Veterans has a draft policy on Sexual Harassment which is aligned to the DPSA. The draft policy is pending the necessary consultation processes which are envisaged to be finalised during the 2018/19 financial year.

With respect to questions (i) the sexual harassment policy is confined to acts of misconduct arising from work[place violations of sexual nature or sexual violence, acts of misconduct in government departments are generally dealt with in terms of the Disciplinary Code and Procedures for the Public Service contained in Resolution 1 of 2003 of the PSCBC (for employees within the salary levels 1 to 12 categories) and the Disciplinary Code and Procedures for members of the Senior Management Service contained in chapter 7 of the SMS handbook (for employees within the salary levels 13 to 16 categories). Therefore acts of sexual harassment and assault are addressed through the relevant disciplinary code and procedures making reference to the relevant policy. (ii) The sanctions are determined following a process of disciplinary enquiry/hearing which may assume an informal or formal setting. According to the two codes a list of possible sanctions will include corrective counselling, verbal warnings, written warnings, final written warnings, suspension without pay, demotion or a combination of these sanctions and dismissal.

(2) (i) for the past financial years i.e. 2015/16, 2016/17 and 2017/18, two cases of sexual harassment and one case of assault were reported. (b) The one assault case was finalised on 19 October 2015 and the one sexual harassment case was finalised on 28 January 2017. The other sexual harassment case was reported on 9 March 2018 and is under investigation. (ii) No cases were withdrawn and (iii) one case is pending because it was recently reported (c) in terms of the two cases the employees were found guilty, a sanction of dismissal was implemented as an appropriate sanction recommended by the chairperson of the disciplinary hearing.

Reply:

1. (a) (i) Execujet SA (Pty) Ltd

Fortune Air (Pty) Ltd

National Airways Corporation (Pty) Ltd

VOGN (Pty) Ltd

South African Airways

(ii) The SAAF procurement process of VVIP chartered aircraft does not allow for direct chartering from individuals, unless the approved tender processes were adhered to (including, but not restricted to approval from National Treasury).

(b) (i) See below-listed spreadsheet.

(ii) The cost to hire each aircraft:

(c) National Airways Corporation (Pty) Ltd: R17 409 603.65

Execujet SA (Pty) Ltd: R12 660 961.82

Fortune Air (Pty) Ltd: R 8 418 837.83

VOGN (Pty) Ltd: R 8 361 503.42

South African Airways: R 1 932 956.54

Reply:

1. (a) The VVIP fleet is unserviceable.

(b) The maintenance support user requirement to place contracts are still being finalised for all systems.

2. (a) The SAAF will utilise the National Treasury RT61 contract for hiring aircraft or charter through SAA.

(b) Total cost of aircraft hiring for financial year 2017/18is: R30 946 094.55

President’s Flights = R22 202 485.53

Deputy President’s Flights = R 7 156 503.51

Minister of Defence and Military Veterans = R 1 587 503.51

Reply:

S/No Suspects/Year    Apprehended    Wounded      Killed     Arrested      Total per year

1           2010                      0                       0                0              0                 0

2           2011                      4                        2                9             16                31

3           2012                      8                        3                7              33               51

4           2013                      5                        1                1               6                13

5           2014                     14                        4               2              19               39

6           2015                      0                         3               3                9               15

7           2016                      0                         5                2              22               29

8          2017                       0                         2                 2               3                 7

9          2018                        0                         0                 1               2                 3

TOTAL                               31                      20                 27             110           188

(a) The above figures are concerned with only poaching suspects, (Op RHINO/Op HORIZON).

(b) Illegal immigrants apprehended are handed over to the SAPS immediately; therefore the statistics thereof are not in the SANDF domain.

Question 2: What number of cases regarding (a) poachers and illegal immigrants were referred to the SANDF by the (i) SA Police Service (SAPS) members deployed in the Kruger National Park and (ii) SA National Parks rangers at the Kruger National Park annually since 1 January 2010?

REPLY: None.

Question 3: What number of successful prosecutions resulted from the abovementioned arrests?

REPLY:

The South African Defence Force (SANDF) is deployed on the National Borders as one of the Government Departments charged with the responsibility to ensure border safeguarding and is therefore required to work in accord with the SAPS. Therefore the SANDF is obliged when poachers and/or illegal immigrants are arrested, to hand the alleged perpetrators over the SAPS immediately, as such the SANDF would not have a mandate to conduct any criminal investigation and therefore no statistical data is available within its domain.

All criminal investigations are investigated by the SAPS, whom after completion submit it to the National Prosecution Authority (NPA) for further processing.

Reply:

1. (a) The SAAF/SANDF did not charter an A300-200. The cost of chartering the A330-200, Registration No: ZS-SXW Waterkloof to Rwanda and back to Waterkloof was R1 725 468.09.

(b) Yes.

(c) To air transport the Principal.

(d) Yes - The transportation of our Principals is the sole responsibility of the SANDF through the SAAF,

2. (a) Yes. The transportation of our Principals is the sole responsibility of the SANDF through the SAAF.

(b) Chartering aircraft is an involved exercise and one of the main considerations is safety and security of our Principals

Reply:

(a) and (b) NONE

Reply:

a) Two members

b) Ms L Mzili & Mr T Goduka

c) (i) Flights for one person Total = R 4 675.38

(ii) Accommodation for one person Total = R 3 050.20

(iii) Tickets Total = R19 520.00 (inclusive of refreshments)

(iv) Entertainment Total = Nil

d) One member stayed at Protea Hotel Victoria Junction while the other permanently resides in Cape Town

e) Whilst the primary client will always be the SANDF / Department of Defence, Armscor Act 51 of 2003 also enables the Corporation to:

• Exploit commercial opportunities as may arise out of Armscor’s duty to acquire defence matériel or to manage technology projects (4.3a (i))
• Procure commercial matériel on behalf of any organ of State at the request of the organ of State in question (4.3a (ii)), and

In pursuit of its mandate and strategic objectives, Armscor is committed to engage with its stakeholders; to build and enhance relationships for the benefits of the organisation at identified platforms.

Armscor has embarked on the implementation of its strategy - “On Time In Time - Towards A Sustainable Future”, setting direction towards improving long term financial sustainability of the Corporation by identifying, pursuing and realising business opportunities through leveraging Armscor’s capabilities while also improving organisational efficiencies. In this regard, revenue generation and stakeholder management are two of the four key strategic objectives Armscor has set to realise its strategy. To this end, targeted markets have been identified to expand and position Armscor’s value proposition; offering its services. Armscor considers it key to build, maintain and enhance relationships with both its existing and potential stakeholders. And as such, some members of the Portfolio Committee were invited; Department of Corporative Governance & Traditional Affairs (COGTA), Robben Island Museum (RIM) and the Department of Defence. Armscor has thus submitted a proposal of an estimated revenue of R7m to Municipalities and is currently assisting RIM on its WWII Relics Maintenance Program.

f) (i) & (ii) The Chief Executive Officer of Armscor: Mr Kevin Wakeford

Reply:

DEPARTMENT OF DEFENCE

The Department of Defence is the custodian of the Defence Endowment Property Portfolio with the Minister of Defence and Military Veterans appointed as the trustee with ultimate ownership responsibility for all endowment property.The Department of Defence report on; and disclose this portfolio in the Departmental Annual Financial Statements.

DEPARTMENT OF MILITARY VETERANS

The Department of Military Veterans does not have exclusive rights to state land and does not own, occupy nor lease state land.

ARMSCOR

The table below details the land Armscor owns (i), (ii) have exclusive rights to and/or lease from the State:

 

	Description of Property	Zoning / Potential Use	Land Size m² (hectares)
1	GEROTEK Portion 171 of the farm Elandsfontein 352 JR, City of Tshwane Metropolitan Municipality.	Current Zoning: Agricultural” with “Special” business use. Potential Use: Business Use	512 000.00 (512.00 ha)
2	ALKANTPAN Section A - Lodge Section B – Residential Dwellings Section C – Testing Range	Current Zoning: Agricultural. Potential Use: Business Use	Section A: 14.73 ha Section B: 1.65 ha Section C: 85 000 ha
3	ERASMUSKLOOF Sports Grounds – ERF 610	Current Zoning: Zone 21 for Private Open Space. Potential  Use: Business Use	50 389.00 (5.04 ha)
4	ERASMUSKLOOF Vacant Land ERF 684 – Extension 4	Current Zoning: Zone 2: Residential 2 and Zone 17: Agricultural Potential Use: Business Use	72 935.00 (7.29 ha)
5	TECHNO PARK, CENTURION Erf 11 PORTION 2 HIGHVELD, CITY OF TSHWANE METROPOLITAN MUNICIPALITY	Current Zoning: Industrial 2 Use.	11 978.00 (1,1978 ha)

 

(iii) IMT Simonstown

	Description of Property	Zoning / Potential Use	Land Size m² (hectares)
1	INSTITUTE FOR MARITIME TECH FACILITIES (IMT) ERF 3779 SIMON’S TOWN, CITY OF CAPE TOWN MUNICIPALITY Lease through DPW	Current Zoning: Business use	10590.00 (1.5ha)

 

Reply:

a) There are no specific academic qualifications prescribed to be a member of one of the categories in the Pool of Specialists although academic qualifications are one of the criteria when potential members are selected. In the internal Audit section it is preferred that members must be qualified as a Chartered Accountant (CA) although it is very difficult to recruit members with that type of qualification into the SA Army as reservists. When the requirement was identified for this section as part of the Pool of Specialists, the said member was the CEO of the Public Investment Corporation (PIC) and he recruited some of the CA's within the PIC on a voluntary basis to assist with the SA Army on a part time basis as and when required to perform certain tasks related to auditing and financial control. The said member had extensive experience in public finance.

b) A number of attributes are considered when members are appointed in the Pool of Specialists as Reserve members. The said member was appointed to be in control of this section based on his experience in the field of public finances as well as his demonstrated leadership role in National Treasury after 1994 and also based on his experience as the CEO of the PIC.

c) Col Molefe advised and assisted the Military Command Council wrt strategic SANDF issues in the asset management and financial structure and architecture domains. Although he was called up over period mentioned, he only reported for duty as and when necessitated by his allocated responsibilities and tasks.

(d) The said member was appointed as a Colonel in 2009, together with 33 other reserve officers, in terms of a regulation where former Ex-NSF members were appointed as Reserve Force members. This was done under Department of Defence Instruction: C Pers No 7/99 "Appointment of ex-NSF members in the Reserve Force" issued by CSANDF on 20 September 1999. This whole effort was based on a need that existed to establish a process for members of the non-statutory forces (ex-NSF) to apply to join the Res F by entering into an appropriate agreement with the SANDF. This was further based on a need to transform the leader group of the Reserve Force. Members falling into this category were recommended for a certain rank by a specifically constituted Selection and Staffing Board based on previous military as well as other experience and where they will be utilised. The appointment for these members was signed by the Minister of Defence and Military Veterans. After appointment these Reserve Force members underwent an orientation course which included military etiquette and aspects of officers formative. Col Molefe was also appointed in 2011 as the honorary colonel of the SA Irish Regiment. He is one of two officers in the SANDF who serve as a Reserve Officer and also holds an appointment of Honorary Colonel.

e) The remuneration for a Colonel in the Reserve Force currently is R 1 857.00 per day. In the case of Col Molefe he was not paid anything for his service during that period. He preferred to do the work pro bono. In order to comply with DOD regulations regarding access to information and military cantonments, he was officially called up.