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:

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 Should the helicopter be withdrawn, the ability to employ Combat Air Support will no longer be directly available to South African Forces.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 Should the helicopter be withdrawn, the Force Intervention Brigade’s morale and confidence will be impacted on negatively.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:

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:

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:

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:

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) 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:

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) (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 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:

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:

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:

(a) and (b) NONE

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.

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:

Denel was given until the 28 February 2018 to meet the suspensive conditions of securing a strategic partner in the Dockyard Transfer. On the basis that the deadline was not met, the Minister of Defence and Military Veterans determined that no further extensions be granted and that the transfer process be cancelled. Armscor continues to manage the Dockyard and deliver maintenance services of the SA Navy vessels. Armscor is now tasked with pursuing the renewal strategy of the Dockyard.

The two tenders relating to Project Hotel and Biro are standalone projects and have no interface with the Dockyard Transfer.

 

Reply:

FeverTree Consulting is a Management Consulting firm. The company was appointed to assist Armscor in the co-management of a turnaround of the corporation. The company was appointed, through an open tender process conducted in accordance with applicable legislation, included the participation of other interested parties, to assist Armscor in the co-management of a turnaround of the corporation. Criteria in the Tender process were formulated in an order of the specialist competencies and experience that Armscor require for the corporate turnaround. FeverTree Consulting was the only company that complied with all of the criteria.

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

Reply:

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.

 

Reply:

a) The total number of staff members at Armscor who were granted severance or Special packages are as follow:

• 2015/16 - 0
• 2016/17 - 2
• 2017/18 - 29

b) The Early Retirement and Voluntary Severance Packages were offered to employees aged 55 and above subject to the retention of skills, availability of successors for critical positions, non-compromise in meeting operational deliverables as well as the financial implications per employee.

Where the company could derive savings within three years of the total severance package, an offer was made for two weeks’ pay for every year of service plus company pension benefits up to 60 years age. A total of 23 employees accepted this package.

Where the company could not deliver savings within three of the total severance package one week counter-offer was made for every year of service plus company pension benefits up to 60 years of age. A total of 6 employees accepted this package.

This proposal was approved by the Board of Directors.

Reply:

The Ministerial Handbook provides guidelines on the appointment of the staff in the Private Office. It equally provides the recommended salary levels of each post. The salary levels are adjusted on an annual basis as prescribed in the Public Service Regulations.

The Office of the Minister has a full staff complement as defined in the Ministerial Handbook. In line with the Protection of Personal Information Act (PoPi) and the Basic Conditions of Employment Act am unable to provide the members with such confidential information in the manner it is requested.

I however draw the honourable members to the department’s Annual Report wherein the organogram of the department provides the information required. Should it be insufficient, the department will make the personal files of the officials available for further scrutiny by the Auditor General as prescribed by the Act.

Reply:

OBJECTIVES:

According to Article 1 of the MOU, the Parties shall cooperate in the use of defence resource and promote joint research and development, including procurement of defence equipment, promote cooperation in the field of training, promote mutual support by encouraging and facilitating the exchange of defence related information, cooperate in the field of military medical services including the exchange of medical personnel and information regarding military health aspects, encourage the exchange of military personnel visits at all levels and promote sporting and cultural links between the Armed Forces, identify and promote defence related activities, including peace support operations and disaster management which would serve the principles of standardisation and inter-operability, foster cooperation between their respective defence-related industries, and act only in advisory and training capacities and will under no circumstances take part in hostilities or operations of a warlike nature by any armed force of the Republic of South Africa or the Republic of South Sudan, nor any operation of any force concerned with the enforcement or maintenance of peace, internal security or law and order.

Reply:

a) Of the 175 disciplinary proceedings regarding financial misconduct reported by the Public Service Commission, the total number of completed to date from (01 April 2017 to 28 February 2018) is twenty one (21).

b) The total number of disciplinary proceedings regarding financial misconduct that have been initiated since 01 April 2017 is ten (10).

c) The disciplinary processes that were initiated since 01 April 2017 were not completed due to the complexity of preparing the criminal cases and lengthy processes involved in prosecuting financial misconduct cases that consist mainly of the theft of state funds and fraud and corruption.

Reply:

a. On what date did she receive the specified complaint

The Minister of Defence and Military Veterans did not receive any formal complaint from the Internal Audit Division employees with regard to the said certain person. However, an anonymous collective complaint was received by the office of the Secretary for Defence during September 2016.

b. What were the relevant details of the complaint?

The anonymous collective complaint was regarding allegations of unhealthy working environment, victimisation and poor work relations from the Internal Audit Division.

c. What steps did she take in this regard?

Due to the fact that the complaint was anonymous, complex and broad the Department of Defence (HR Division) could not register this matter on the Individual Grievance IT System, which is a tool available to deal with all grievances of officials in the department.

The Secretary for Defence instructed the Chief Human Resource to conduct a suitability to work assessment with regard to the complaint since it is HR related. After assessing the anonymous complaint a team of Psychologist from Military Psychological Institute as well as Management Renewal Services personnel were appointed to conduct a comprehensive investigation with implementable recommendations.

The organisational diagnosis is finalised and the department is in the process of implementing the recommendations.

Reply:

a) During the year of reporting the details for each of the formations was not captured as a key requirement. This detail has now started to be collected and will be availed in future reporting cycles as required.

b) The nature of businesses registered on the business register is varied. The attached list of companies on the Skills Development and Empowerment Business Support Unit Register shows what the nature of each of the businesses is.

c) The submitted reports have captured the Province of each business location but has not yet lifted the actual town in the province. It is important to show that most business submissions in the year of reporting have been from Gauteng province. This has arisen out of the proximity of the National office to access for military veterans in Gauteng. Going forward, the data set for collection will be expanded to give the details for the towns of business locations. Further, with the presence of provincial coordinators in provinces, it is envisaged that details for military veterans businesses in provinces other than Gauteng will also be submitted.

List of Military Veterans Businesses on DMV Business Register

Ser	Business Name	Economic Sector	Province
1	Mmaraba Maintenance Suppliers	(Security) Arms and Ammunitions	Gauteng
2	Machindira	Construction and Maintenance	Gauteng
3	Shikamo Trading and Properties	Building Construction	Gauteng
4	Khuphuka Kings Airways	Air Freight and Cargo	KwaZulu-Natal
5	Abasunguli Training Specialists (Pty) Ltd	Education and Training	Gauteng
6	Fasimba Primary Co-operative	Primary Agriculture	Eastern Cape
7	Boxfusion JV	Information and Communication Technologies	Gauteng
8	Siyakha Primary Co-operative	Mining	Northern Cape
9	Dataforce Construction and Projects	Built Infrastructure, Waste Management and Recycling, Security	Gauteng
10	MMKTS Co-operative	Fuel and Coal Supply, Safety Equipment and Consulting	Gauteng
11	Bomahlwa Co-operative	Agriculture (Pig and Poultry Farming)	Gauteng
12	Keemakae Enterprises	Manufacturing Sector for Security Services	Gauteng
13	WOMVASA Investment Holdings	Woman Military Veterans' Empowerment Initiatives	National
14	Kutulo Investment Holdings	General Service Provisioning	Gauteng
15	Lerumo Masoja	Agriculture	Gauteng
16	Newcastle Solar Power	Solar and Renewable Energy	Gauteng and KwaZulu-Natal
17	Rampact Logistics	Security	Gauteng
18	Eyomama Business Initiative Co-operative	Waste Management, Construction	Eastern Cape
19	Konsortia	Oil, Gas and Fuel Supply and Distribution	Gauteng
20	Umkonto We Sizwe Veterans Holdings (Pty) Ltd	Broad Based Empowerment of Military Veterans	Gauteng
21	Ntsimbenyama (Pty) Ltd	Materials Recycling	Gauteng
22	K2014122595 (South Africa) Pty Ltd	Agrarian and Rural Development	Gauteng
23	Moncada Green Technologies	Green and Renewable Energy	Eastern Cape
24	Sha Ce Trading Enterprises	General Trading Enterprise	KwaZulu-Natal
25	Liger Security Services and Projects (Pty) Ltd	Security Management	Gauteng
26	Dumazi Projects and Plant Hire Ltd	Textiles and Manufacturing, Security, Construction	Gauteng
27	Mintiro Primary Co-operative Ltd	Construction, Manufacturing, Security, Transport Provision	Northern Cape
28	Tirela Industries (Pty) Ltd	Engineering Projects Design, Solar Energy	Gauteng
29	Lamarutla Trading and Projects	Agriculture - Livestock Production	Gauteng
30	Mophetibility Accommodation and Projects	Transport, Accommodation and Security Services	North West
31	Duvalia's General Trading	Poultry Farming	Gauteng
32	MKMV Mamelodi Branch Holdings (Pty) Ltd	Skills Training and Employment	Gauteng
33	Amulike Farmimg and Marketing (Pty) Ltd	Commercial Crop Farming	Gauteng
34	Mosemelelo Trading and Projects cc	Agriculture	Gauteng
35	Military Veteran Funeral Home (Pty) Ltd	Funeral Services	Gauteng
36	Skipper Property Holding (Pty) Ltd	Property Development and Investments	Gauteng
37	Vulisa Cleaning and Maintenance	Security Management, Cleaning Services, Maintenance	Western Cape
38	LabMab (Pty) Ltd	Maintenance of Highly Specialised Laboratory Equipment	Gauteng
39	African Pride Supply and Projects (Pty) Ltd	General Products and Service Supply	Gauteng
40	HRA Foxtrot Pty (Ltd0.	Construction	Gauteng
41	Ntandokayise Trading Enterprise Pty (Ltd)	Wheel alignment	Gauteng
42	Ezanoxolo Co-op	Cleaning Services	Gauteng
43	Suzmor Projects Pty (Ltd)	Catering	Gauteng
44	Mac Brite Security Pty (Ltd)	Security	Gauteng
45	Ninja Protection and Security Services	Security	Eastern Cape
46	Mawethu Co-op	Multi Purpose	Gauteng
47	Dizi Brothers Logistics Co-op	Logistics	Gauteng
48	La Muhler Co-op	Chicken Farming and Property Development	Gauteng
49	Kasebone Multipurpose Co-op	Multi Purpose	Gauteng
50	Maoka Transport & Projects Pty (Ltd)	Farming	Gauteng
51	Jamobo Development Solutions	Construction	Gauteng
52	Modiro Medical & Projects Pty (Ltd)	Medical Equipment Supplier	Gauteng
53	Osmos Consulting Pty (Ltd)	Business Training Consultancy	Gauteng
54	Maphanga B & B Pty (Ltd)	Hospitality	Gauteng
55	Nkonjae Pty (Ltd)	Construction	Gauteng
56	MaRogers Projects	Multi Purpose	Gauteng
57	Mabhaka Electrical Projects	Electrical Services	Gauteng
58	Mkuki Wataifa Pty (Ltd)	Not determined	Gauteng
59	In-Laws Projects Pty (Ltd)	Multi Purpose	Gauteng
60	Baubaamonare Trading & Projects Pty (Ltd)	Multi Purpose	Gauteng
61	Lemolesemono Co-op	Clucth and Brake Refurbishing	Gauteng
62	Refihlile Agricultural Farming & Projects Co-op Ltd	Farming	Limpopo
63	Kopano e Khabane Pty (Ltd)	Agriculture	Gauteng
64	Ngatana Pig and Chicken Farming Co-operative	Chicken and Pig Farming	Gauteng
65	Nkarcia trading and projects	Multi Purpose	Gauteng
66	GMH Secure Logistics	Logistics	Eastern Cape
67	Msara Bed and Breakfast Pty(Ltd)	Hospitality	North West
68	Granite Patterns Trading Enterprise	Construction	Gauteng
69	Diamond Shine	Security	Gauteng
70	Zheys Catering	Catering	Gauteng
71	Zero Cockroaches Pty (Ltd)	Pest Control	Gauteng
72	Harmer and Circle Trading Enterprise	Hardware Trading	Gauteng
73	Kuretse Trading Enterprise	Not determined	Gauteng
74	Atap Maintenance and Construction	Construction	Free State
75	Masake Attorneys	Legal Services	Gauteng
76	Balise Sustainability Project	Not determined	Gauteng
77	Tshedza Protective Services	Security	Gauteng
78	Manthata Protection and Security	Security	Gauteng
79	L. Moitsepi Consulting	Services	Gauteng
80	Bakarner Trading and Projects	Multi Purpose	Gauteng
81	Yeti Trading Enterprise	Multi Purpose	Gauteng
82	Thekiso M Trading and Projects	Multi Purpose	Gauteng
83	Kwandilitha Trading and Projects	Multi Purpose	Gauteng
84	Treveor Properties cc	Property Development and Investments	Gauteng
85	Abba Father Construction	Construction	Western Cape
86	Siyaya Owethu	General	KwaZulu-Natal
87	Tyanini and Associates (Pty) Ltd	Debt Collection	Gauteng
88	Ray 5 Holdings	Construction (Civil and Maintenance)	Western Cape
89	Sankatane 76 Primary Co-operative	Multi Purpose	Gauteng
90	Dinote Commercial Trading cc	Construction	KwaZulu-Natal
91	Siyaya Owethu Pty (Ltd)	Clothing Manufacture	KwaZulu-Natal
92	Ninonke Business Enterprise cc	Construction	KwaZulu-Natal
93	Ntiyantiya Trading Enterprise Pty (Ltd)	Multi Purpose (General Trading, Construction, Transport)	KwaZulu-Natal
94	Megacity Property Investment 7	Property Development and Investments	KwaZulu-Natal
95	Osmoz	Hardware	Gauteng
96	Amazing Wining Trading and Project Pty (Ltd)	Multi Purpose	KwaZulu-Natal
97	Amabhubesikazi Business Solution	Multi Purpose	KwaZulu-Natal
98	Cas Nova Security Services	Security Services	KwaZulu-Natal
99	Siphiwe Ndlovu Investment Pty (Ltd)	Multi Purpose	KwaZulu-Natal
100	Wanda M Trading Enterprise Pty (Ltd)	Not Determined	KwaZulu-Natal
101	Mandlomkhoto Security and Enterprise	Multi Purpose	KwaZulu-Natal
102	BEETEE’S Cabs cc	Transport, Poultry Farming	KwaZulu-Natal
103	Manjeza Security Pty Ltd	Security	KwaZulu-Natal
104	Eric Ndimande Trading and Projects	Multi Purpose	KwaZulu-Natal
105	Logtrain international (Pty) Ltd	Technology	Western Cape
106	Fonto (Pty) Ltd	Multi Purpose	Northern Cape
107	Umusa Omuhle Event Venue (Pty) Ltd	Multi Purpose	Gauteng
108	Feo Siza (Pty) Ltd	Multi Purpose	Free State
109	Keetso Trading Enterprise	Training	Gauteng
110	Velizwe Trading and Projects	Gardening and Cleaning Projects	Gauteng
111	Ngingumtshinga Matheka Trading and Enterprise	Multi Purpose	Gauteng
112	Old Town Investment 345cc	Mining	Durban
113	Montlelo Trading Enterprise	Life Coaching	Gauteng
114	Magaiva General Trading	Brick Making	Free State
115	Delumzimba Service Station and Bakery	Energy	KwaZulu-Natal
116	Phil and Phel General Dealer	Construction maintenance	Gauteng
117	Mangope Pty (Ltd)	Health (herbalist)	Gauteng
118	Princes and Angels Nursery School confirmed	Education (ECD)	Free State
119	Molotsi Trading and Project Development	Cattle farming	Gauteng
120	MKMVA Holding	Multi Purpose	Gauteng
121	Lindelani Unlimited Marketing	Multi Purpose	Gauteng
122	Basupatsela Civil Projects	Construction	Gauteng
123	Phithm Trading and Project	Laundry	Gauteng
124	Monkethe Trading Enterprise (Pty) Ltd	Multi Purpose	Gauteng
125	7369 Holding	Multi Purpose	Limpopo
126	Sabaha April Commercial Co-operatives	Multipurpose	Limpopo
128	Value Chain Innovations (Pty) Ltd	Multi Purpose	Gauteng
129	Habasisa Enterprise	Farming	Free State
130	Who The Cap Fits Co-operative	Multi Purpose	KwaZulu-Natal
131	Sizabaphofu Primary Co-operative	Multi Purpose	KwaZulu-Natal
132	Nthonga Telecommunications and Communications	Telecommunications	Gauteng

Reply:

1. 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 Annual Financial Statements. Questions regarding land are responded by means of Immovable Asset Register (attached [3 pages])

Reply:

Refer to the attached documents.

Reply:

Regulation 13 (c) of the Public Service Regulations of 2016 prohibits employees of departments from doing business with the State from 1 August 2016. The transitional provisions of the regulations require that the following actions must be taken by 1 February 2017 in relation to those contracts that were awarded before 1 August 2017:

An employee shall:

• cease conducting business with the organ of the state;
• resign as an employee; or
• resign as a director of a company that conducts business with an organ of state or resign as an employee;

Furthermore, section 30(1) of the Public Service Act of 1994 states “No employee shall perform or engage himself or herself to perform remunerative work outside his or her employment in the relevant department, except with the written permission of the executive authority of the department.”

A total number of 34 employees of the Department of Defence have been recorded as doing business with the Department on contracts secured after 1 August 2016 involving a total of 46 contracts/quotations to a total value of R4 349 466. These findings amount to a contravention of the Public Service Code of Conduct and are being investigated. There were no ongoing contracts awarded before 1 August 2016 where no action was taken to dispose of the interest.

The Department of Military Veterans reports that in the 2016-17 financial year, as per the Department’s records and also confirmed with AGSA, there was a finding made by AGSA, during 2016/17 audit process, where an official of the DMV was detected to be doing business with North West: Edu & Sports Development. This is contravening Regulation 13 (c) of the Public Service Regulations of 2016 and the matter is receiving attention.

Reply:

(a) The is no financial implications of the delay in completing the refurbishment of 2 Military Hospital.

(b) The financial implications of the delay in completing the refurbishment of 1 Military Hospital amounts to R 103 504 181 from 01 April 2017 to 31 October 2017 and projected to R 165 606 690 for FY 2017/2018.

 

 

Reply:

a) was the military formation of each military veteran,

 

b) The reporting format does not drill to a level of town. The process is underway to review the format in order to add other fields.

 

c) is the name of each service provider who provided counselling in each (i) town and (ii) province

• In 2016/17 financial year, Military Veterans and their dependents received treatment at the South African Military Health Service Areas and within the Department of Military Veterans.

d) is the accreditation status of each service provider

• The South African Military Health Services are accredited under the current Laws and Legislation.

e) what is the total number of service providers that are from the private sector

• All Military Veterans were referred to the SAMHS areas and service points.

f) are the broad categories of counselling that were provided

Reply:

(a) When accessing the skills development benefit, previous formation or grouping is not part of the prerequisite. The department (skills development doesn’t request applicant to provide information in that format, therefore such information is not available.)

(b) What are details of the training and skills development?

Response

The training requested by military veterans and their dependents varies from Agriculture, driving school, security, computer literacy, plumbing, welding etc. attached hereto is the list of military veterans and their dependents training provided.

(c) Details of each service provider who provided training.

Response

List of service providers.

There are over 40 training provider reflected on the attached list.

(d) details of (i) town, (ii) province and (iii) number of military veterans in each venue,

Response

The methodology of implementing training and skills development is of the reactionary basis. The applicant identifies his/her area of needs / training and the institution / service provider for that particular training and thereafter submit a request to the department. It is for that reason that the department has limited information on the service provider, their facilities, town etc.

(e) The total cost incurred for the training provided.

Response

The total expenditure for 2016-17 on training and skills development is attached.

Reply:

NON-CURRENT ASSETS	R'Millions
	Property, plant and equipment	1 463.1
	Investment property	72.9
	Intangible assets	12.8
	Investment in joint venture	3.1
	Financial instruments	131.4
		Government and other bonds	18.4
		Shares - Listed	55.6
		Deposits at banking institutions	39.2
		International investments	18.2
TOTAL NON-CURRENT ASSETS	1 683.3
CURRENT ASSETS
AGING	0 - 3 months	3 - 6 months	6 - 12 months	Beyond 12 months
	Assets held for sale	0.4	-	-	-
	Inventories	29.6	-	-	-
	Trade and other receivables	123.4	19.0	20.3	-
	Cash and short term deposits	764.9	-	-	-
	Taxation	26.0	-	-	-
TOTAL CURRENT ASSETS	944.3	19.0	20.3	-

Reply:

The optimal functioning of the (a) intensive care unit and (b) operational theatres at 1 Military Hospital has been compromised by the delayed refurbishment project. The intensive care unit at I Military Hospital is also not yet operational. The intensive care unit and operational theatres at 2 Military Hospital are operational as the refurbishment project of 2 Military Hospital has been finalised.

Reply:

1. The SAAF has 16 aircraft in service of which each aircraft can have one or more support contracts depending on SAAF capability, support concept and funding source. There are contracts for aircraft support, engine support, avionic suite support, material supply, ground equipment support, training equipment support, infrastructure support, etc. At present the department has maintenance contracts in place for 12 aircraft.

2. (aaa) No contracts expired and were not advertised in the 2015/16 year.

(bbb) one maintenance contract expired during the 2016/17 financial year.

(bb) 4 maintenance contracts expired since 1 April 2017 and which were not re-advertised

(b) Armscor can only advertise tenders for new contracts when it receives a valid instruction from the DOD. No valid instruction for the advertisement of these 5 aircraft are currently in the possession of Armscor.

(c) The aircraft for which the maintenance contracts have expired since 1 April 2017 and for which the contracts have not been advertised are the following :

- Cessna Citation

- Beechcraft King Air

- Cessna Caravan

- Boeing Business Jet

- Dassault Falcon 50 and Falcon 100

3. Armscor will only re-advertise contracts that will be expiring in the 2017/18 financial year once it is in receipt of valid instructions from the DOD. To date, Armscor has not received any new instructions for the advertisement of maintenance contracts that will be expiring.

Currently the SAAF is undertaking a review of its internal capabilities where an audit of Air Servicing Units (ASU) and squadrons is undertaken to determine what work can be outsourced and can be performed in-house by the SAAF.

At the request of the SAAF, Armscor is also undertaking a review of all SAAF maintenance contracts to ensure that best value for money contracting is undertaken. In this regard, there will be different tenders that are going to be advertised such as ones for material supply, consolidation of different contracts, contracting directly with original equipment manufacturers (OEM) or maintenance and repair organisations (MRO), etc. There will also be new tenders that will be advertised that will ensure that the SAAF internal capabilities are enhanced.

Reply:

The total value of contracts from the 2017/18 DOD and SANDF budget that Armscor has placed, amounts to R10 241 708 505.Orders to the value of R8 488 376 899 were placed on local Industry. This includes an amount of R27 563 605 for the Simon’s Town Dockyard and an amount of R4 707 818 586 that is contracted to Denel.

Reply:

Business Name	Initials & Surname	Former Force (a)	Advise/Support (b)
African Pride Supply & Projects (Pty) Ltd	SE Gumede	APLA	Wrote support letter to access land and livestock from Dept of Rural Development.
Labmab (Pty) Ltd	KA Mabule	SADF	Letter to confirm that the company is owned by a Military Veteran
Lindelani Unlimited Marketing	PMV Makhanya	MK	Letter to submit with a tender document for petrol and diesel supply.
Trans-Sector Learning	ML Ntlabathi	APLA	Letter to confirm that the company is owned by a Military Veteran
MBD Construction & Civil Works cc	HB Khumalo	MK	Support letter subcontracting work for Basil Reed
Mosemelelo trading & Projects	BM Mosoeu	MK	Letter to access land from Rural Development
Amulike farming & Marketing	SE Zulu	MK	Wrote support letter to access land from Rural Development.
Lamarutla Trading & Projects	LJ Lepulane	MK	Needed a support letter to access Nguni cattle from Rural Development
MKMV Mamelodi branch holdings	PA Khalo	MK	Letter to submit with a Security tender
Duvalia’s General Trading	KS Mbemba	MK	Support letter for poultry equipment to Rural Development
Mophetebility Accommodation	JM Mpete	MK	Needed a support letter to access market.
Maoka Transport cc	WK Maoka	SADF	Request for pig feed at Chris Hani Municipality, Rural Development Animal production section.
Mosemelelo Trading & Projects	BM Mosoeu	MK	To confirm that he is a MV to the Rural development to acquire land and other resources.
Goodhope Creations	RJ Mabote	SADF	Letter to confirm that he is a Military Veterans to submit with tender documents
Okas’ Transport	W Moaka	SADF	Request to buy pigs and stock feed for pigs
Taruni Trading (Pty) Ltd	AS Somdaka	TDF	Request for land at Rural Development
Dumazi Project & plant hire (Pty) Ltd	JE Ngobeni	SADF	Confirmation that the company is owned by a Military Veteran.
MKMVA Holdings	SE Masilela	MK	Letter for a tender at the Dept of Social Development
Value Chain Innovation	V Thabethe	MK	Needed a letter of support for confirmation of being a Military Veteran for tenders with Government Departments and the Road Traffic Management Corporation
Amazing Wining Trading and Projects	HIM Ngubane	MK	Needed a letter of support for confirmation of being a Military Veteran.

(c) Letters are issued in-house

(d) No financial implications

 

Reply:

1. Angola.
2. Argentina.
3. Botswana.
4. Brazil.
5. France.
6. Germany.
7. India.
8. Lesotho.
9. Malawi.
10. Namibia.
11. Netherlands.
12. Tanzania.
13. Uruguay.
14. USA.
15. Zimbabwe.

Reply:

(a) The Surgeon General has conducted several oversight visits to 1 Military Hospital since his appointment as Surgeon General on 1 April 2013. The Chief Directors and Directors execute instructions to conduct staff visits to all three the military hospitals with the aim to perform evaluation and monitoring within the respective statutory and functional environments.

(b) The feedback of the staff visits are discussed at the Chief Director Military Health Force Preparation forum during which consequential measures are discussed to address the various challenges and concerns within the resources of the SAMHS. Critical issues are furthermore discussed at the SAMHS Command Council and challenges that cannot be resolved at the level of the Surgeon General and the SAMHS as a result of the impact of strategic risks such as budgetary constraints. The strategic risks are reported to higher headquarters through formalised processes and forums.

The challenges and concerns that are referred to in Question 3393 are mostly issues that are registered by the SAMHS as strategic risks. The chronic underfunding of the Defence function in general impacts on the capacity of the SAHMS to mitigate some of the risks.

The likelihood and impact of the risks such as low stock levels and obsolete and outdated equipment and technology increase year-on-year in the absence of resources. The Surgeon General and the SAMHS address these challenges and concerns within the resource limitations. The implications of budgetary constraints, however, leads to challenges such as mentioned in the questions of the National Assembly. Furthermore the SAMHS competes with the open labour market for scarce human resources such as medical officers and specialists.

(c) The response to the question of remedial steps are as follows:

(i) Procurement delays. Procurement delays have been addressed by the Surgeon General through the restructuring of the SAMHS Procurement Unit. The reality of insufficient funding, however, impacts on the ability of the SAMHS to procure sufficient medical stock (pharmaceuticals and medical consumables).

(ii) Refurbishment project delays. The SAMHS is in a difficult position as a result of the failure by third parties to fully complete the upgrading of especially 1 Military Hospital into a composite facility. Contractors are largely limited in their scope of work due to financial constraints. Preventative measures are instituted within the limited financial resources to avoid further deterioration. On 18 January 2013 the National Department of Public Works appointed consultants for upgrading and refurbishment of the 1st floor of 1 Military Hospital. The SG was not satisfied with the progress and elevated his concerns to the Ministerial level.

The Minister of Defence and Military Veterans took a decision that the Defence Works Formation must take over the project. However, the function of day-to-day maintenance of the hospital remained with the National Department of Public Works.

The Logistics Division, Defence Works Formation, has been appointed as the responsibility owner of the refurbishment of 1 Military Hospital. An Infrastructure Subcommittee was established to address the refurbishment of 1 Military Hospital. Project plans have been compiled in collaboration with external service providers.

(iii) Transport. Transportation in terms of ambulances for medical evacuations and patient transportation requires huge capital injections. The Surgeon General has attended to this capability within the means of the SAMHS operating financial resources and a less than 1% capital budget.

(iv) Medical Stock. Pharmaceuticals and medical consumables are high cost drivers that are directly linked to the financial resources or the allocated budget of the SAMHS. SAMHS reprioritise its annual allocated budget to make provision for medical stock within the limitations of an ineffective baseline allocation. In the instance where financial resources are depleted the Chief Financial Officer is approached for additional funds.

(v) Security. Security is also a challenge or concern that requires financial resources whether the installation of physical security measures ie cameras and fences or human resources to guard infrastructure. The SAMHS addresses security measures within the allocated resources.

Reply:

  (1)    TRUCK AFRICA is an indigenous RSA IP between CSIR, Armscor and Denel, it is specifically meant to withstand conditions in terrains in which the SANDF conducts operations in the continent.

(2) Commitments to meet capital equipment requirements of the SANDF are part of the DOD Strategic Capital Acquisition Master Plan (SCAMP) which will be adjusted and aligned with the work of the Defence Review Implementation Planning Team (DRIPT).

Reply:

a) The current levels of medical stock in the SAMHS military hospitals including 1 Military Hospital is low as a result of insufficient funding. Funds had been reprioritised within the Department of Defence to procure medical stock. 

b) The performance indicator for the ‘Percentage availability of medical stock’ was not removed from the Annual Performance Plan of the Department of Defence. The performance information is merely indicated as classified information as the performance indicator contains information of strategic reserves of pharmaceuticals and medical consumables.

c) The current levels of medical stock could have an impact on soldiers and military veterans in the absence of management interventions and alternative interventions such as buy-outs.

Reply:

(a) The current structure for the Operational Emergency Care Practitioners is not sufficient. Within the budget constraints and the current human resource budget the SAMHS cannot appoint Operational Emergency Care Practitioners in the Regular Force. The Surgeon General had the foresight to train operational emergency care practitioners and translate these members to the Reserve Force.

(b) The training and translation of Operational Emergency Care Practitioners to the Reserve Force are being utilised by the SAMHS as a sustainable alternative.

(c) The utilisation of operational emergency care practitioners from the Reserve Force are more cost beneficial. Furthermore the capability of Reserves also provides a strategic reserve capability to the country of scarce skills for emergency care treatment and assist in alleviating unemployment.

Reply:

a) (i) Officer in the Pool of Specialists within the Internal Audit section of the SA Army. A Reserve member is only called up for a specific period for specific services when required.

(ii) The member was called up for the first time over period 15 -19 March 2010 and received a remuneration of R4006.85. The daily tariff for a Reserve Col in 2010 was R801.37 per day. Over period 19-22 August 2010 the officer was utilised as an auditor and received R3205.48. On 26 November 2010, the member received an amount of R1389.04. This was back pay for receiving the incorrect daily tariff in August 2010. The daily tariff for utilisation in 2017 is R1865.40 per day for Reserve Force Col.

b) 15-19 March 2010 first call up, second call up 19-22 August 2010 and last call up was 23 August until 17 November 2017.

(c) and (d)

Reserve call-ups in the SANDF are not advertised.

(e) The latest call up of the member was over the period 23 August 2017 to 17 November 2017. The remuneration for the latest call-up is yet to paid.

Reply:

1.A) what is the military formation of each military veteran

ORGANOZATION	NUMBER
APLA	2256
AZNLA	244
BDF	523
CDF	268
MK	6238
SADF	4445
SANDF	504
TDF	678
UDF	134
VDF	34
UNKNOWN	416
	15740

b) from which province is each military veteran

PROVINCE	NUMBER
EC	2357
FS	738
GP	3573
KZN	1317
LP	873
MP	559
NC	959
NW	1109
WC	1565
UNKNOWN	2690
	15740

 

c) what are the categories of diseases that military veterans are treated for

• • Chronic diseases i.e. Hypertension, Diabetics
  • Lung Diseases
  • Digestive Diseases
  • Musculoskeletal Diseases
  • Metabolic Disorders
  • Eye Diseases
  • Heart Diseases
  • Skin Diseases
  • ENT
  • Endocrine Diseases
  • Nervous system Diseases
  • Immune System Diseases
  • Cancer

These are the common diseases identified.

d) what are the current Memoranda of Understanding that exist between her department and (i) provincial hospitals and (ii) municipal clinics,

The Department has the Memorandum of Understanding with The Department of Defence to provide services to Military veterans.

e) What arrangements and procedures do military veterans follow when seeking medical treatment from private medical doctors or clinics?

All Military veterans access services through the South African Military Health Services which will in turn refer to other service providers in case they do not have the services.

f) is the breakdown of military veterans visiting all the different health facilities in the country

In 2016/17, an average of 5007 military veterans visited the SAMHS facilities. The DMV paid a total of R61M for Healthcare services.

Reply:

The Number of graduates and other qualifications were 50 for the 2016/17 academic year as per DMV 2016/17 annual report.

(b) The total amount awarded will be difficult to calculate as some students were funded in the middle of their studies as they started before the education support was provided in the DMV. However, on an annual basis, students are funded within the maximum threshold, which was R68 000 per annum in the beggining, and subsequently increase to R72 000 in 2016.

Reply:

1. In 2016 /17 financial year the DMV granted bursaries to 7146 Military Veterans and Dependants as per DMV 2016/17 annual report and 4685 Basic education and 2461 Tertiary education.

(a) (i) Military Formation Basic Education

BASIC EDUCATION BURSARY HOLDERS PER MILITARY FOMATION
STATUTORY FORCES	NUMBER OF BURSARY HOLDERS
APLA	562
AZANLA	196
MK	2048
BDF	77
CDF	55
TDF	63
VDF	12
SACC	8
SANDF	1157
SADF	507
TOTAL	4685

Total NSF basic education bursary holders is 2806 (60%) and Statutory 1879 (40%)

(a) (ii) Military Formation Tertiary Education

TERTIARY EDUCATION BURSARY HOLDERS PER MILITARY FOMATION
STATUTORY FORCES	NUMBER OF BURSARY HOLDERS
APLA	269
AZANLA	81
MK	1050
BDF	73
CDF	35
TDF	105
VDF	43
SANDF	371
SADF	434
TOTAL	2461

Total NSF tertiary institutions is 1400 (57%) and Statutory 1061 (43%).

b)(i) Basic education number of bursaries granted for primary school, high school, technical vocational education at both (i) public and (ii) private institutions

CATERGORY	TOTAL NUMBER OF BURSARIES	PUBLIC	PRIVATE
Primary	2532	1798	734
High School	2134	1536	598
Technical Vocational	19	2	17
TOTAL	4685	3336	1349

b)(ii) Tertiary education number of bursaries granted training college and university

levels at both (i) public and (ii) private institutions

CATERGORY	NUMBER OF BURSARIES	PUBLIC	PRIVATE
Universities	1454	1454	0
TVET Colleges	151	151	0
Private Colleges	856	0	856
TOTAL	2461	1605	856

c) Education academic and other associated fees per annum per institution,

NB; Costs calculated at average costs, However at tertiary institutions students are likely to use the maximum allocated.

CATERGORY	FEES PUBLIC INSTITUTIONS	FEES PRIVATE INSTITUTIONS	TOTAL AVERAGE
Basic Education	R11 000	R26 400	R18 700
Tertiary Education	R55 000	R59 000	R57 000

d) was the total cost of the bursaries in terms of the categories of fees

CATERGORY	FEES PUBLIC INSTITUTIONS
Basic Education	R49 000 000
Tertiary Education	R133 200 000
TOTAL 2016/17 COSTS	R182 200 000

e) Not applicable

f) Not applicable relates to e) above.

g) Not applicable relates to e) above

Reply:

1. (a) The 104 military veterans who received assistance with the settlement of their mortgage loans, did so by completing the prescribed application form and complying with the qualifying criteria as prescribed in the Military Veterans Benefits Regulations of 2014. The criteria is as follows:

1. The applicant must be listed in the database of the department of Military Veterans,
2. Must not be employed and receives a pension from the state, or
3. Is employed with annual income of less than R125000.00,
4. His or her spouse has not previously received a house or other housing benefits from the state,
5. Has a mortgage loan that is registered in his or her name at a financial institution, and
6. The total sum of the balance of the mortgage loan is equal to or less than the housing benefit.

(b) Military Veterans who are provided with assistance in the settlement of their balance outstanding on their mortgage loan with the financial institution, are subject to the following terms and conditions:

(i) Forfeit their housing benefits which they otherwise would have qualified for.

(ii) The assistance is provided as once off service where the outstanding amount is less than R188 000.00 on bond.

(c) R12, 163,465.20

(d) The Military Veterans who were provided with assistance towards the settlements of their mortgage loans, were from the following military formations.

Military Formation	Total number of beneficiaries
APLA	19
AZANLA	3
BDF	4
CDF	1
MK	38
SADF	27
SANDF	11
TDF	1

2. (a) (b) and (c) The department has initiated an open and transparent consultation process with key stakeholders to gain as much feedback as possible to ensure that the policy on housing adequately addresses the policy objectives of the Act as well as the aspirations of the beneficiaries.

The outcomes of these consultations with guide the way forward.

As regard to the Regulations, these were approved in 2014 and are being implemented in the provisioning of benefits and services to Military Veterans.

Reply:

A) During the 2016/17 financial year, 168 houses were built for Military Veterans in the following provinces:

Province	Number of Houses Built
Eastern Cape	6
Free State	5
Gauteng	48
Kwazulu Natal	1
Limpopo	15
Mpumalanga	36
North West	19
Northern Cape	38

b) The beneficiaries of the 168 houses belonged to the following former military formations:

Military Formation	Number of beneficiaries
APLA	22
AZANLA	1
BDF	10
MK	83
SADF	45
SANDF	5
TDF	1
World War 2	1

c) Yes.

d) The Department is constantly investigating

Reply:

ORGANOZATION	NUMBER
APLA	360
AZNLA	119
BDF	92
CDF	37
MK	662
SACCMVA	2
SADF	777
SANDF	114
TDF	71
UDF	4
VDF	5
	2243

a) is the criteria to qualify for an SRD grant

• • Policy guidelines and Policy Draft attached

b) are the details of service providers,

• The DMV utilised the services of ABSA Bank from 1 April 2016 to 30 November 2016 in line with Treasury approval. As of December 2016 to 31 March 2017, the DMV had established systems to manage the benefit internally.

c) are the details of the distribution of Military Veterans who received the assistance in terms of the (i) town and (ii) province,

The table below outlines distribution in terms of Province.

d) was the total cost that was incurred for the distress relief assistance and

• The total cost for 2016/17 financial year was R22 064 000.00

e) policy or guidelines that govern this assistance

A draft policy guideline for SRD has now been completed for final approval. The DMV has been reviewing all benefits policies in line with the recommendations of the Turnaround Support Initiative.

Reply:

DEPARTMENT OF MILITARY VETERANS

DMV strives to pay suppliers within 30 days. There was no recorded outstanding payment to SMMEs as at 31 October 2017. However, for well established companies, there is still a challenge with processing some of the invoices due to the following challenges at DMV:

• DMV is not yet using LOGIS (Logical Information System)
• Lack of a computerized system leads to lack of proper tracking system
• For travel related invoices, approvers are often out office leading to delays in the approval of invoices for payment (linked to manual approval processes).
• Lack of capacity to manage the volume of invoices related to Travel

As per the tablelink  below (DMV UNPAID INVOICES AS AT 31 OCTOBER 2017), challenging accounts are Vodacom, Travel with Flair and SITA. The challenge is historical backlog, however, the Department is working hard to resolve these.

http://pmg-assets.s3-website-eu-west-1.amazonaws.com/RNW3566DMV_UNPAID.pdf

Furthermore, as at 30 September 2017, DMV account with other Government Departments had an outstanding balance of R60.5m mainly related provisioning of healthcare Support by SAHMS (R50.5m) as well as the provisioning of Housing by Human Settlement (R10m). see link below

http://pmg-assets.s3-website-eu-west-1.amazonaws.com/RNW3566DMV_ACCOUNT.pdf

DEPARTMENT OF DEFENCE

1. The response for the Department of Defence is as follow:

 (i) The number of verified and legitimate invoices that are currently (Report date: 8 Nov 2017) in possession and that remain unpaid within the Department of Defence are:

Ser	Category	Nr of Invoices	Rand Value
(aa)	More than 30 Days	30	R1,344,559
(bb)	60 Days	0	R0
(cc)	90 Days	5	R14,683
(dd)	120 Days	11	R17,531
	TOTAL NR OF INVOICES	46	R1,376,773

The main reasons for these invoices not paid relates to the invoices being received late and then the processes to verify the correctness forces the invoices into the category of more than 30 days. Invoices in the categories of 90 to 120 days mostly relates to invoices where the verification process to confirm legitimacy takes longer due to disputes and geographical location of some units. It remains critical that all controls are continuously exercised to ensure that only verified legitimate invoices are paid.

MILITARY OMBUD

The Office of the Military Ombud has one (1) invoice under Item 20, Serial Number 20018925 (Food & Drinks: Office and Meetings) valued at R15,667.80 that has not been paid for more than sixty (60) days.

Reply:

The SANDF has set up a capability to respond to and mitigate any Cyber-attacks as part of the country’s cyber security approach. This however is still at its infancy, and members are being trained to better respond, as more and more quality in the Cyber world. The DRIPT also has dedicated a Standing Committee dealing with cyber security to develop the implementation milestones for Defence Review recommendations on cyber-security.