ATC110921: Annual Report of the Joint Standing Committee on Intelligence for financial year ending 31 March 2010
Joint Standing on Intelligence
ANNUAL REPORT OF THE JOINT STANDING COMMITTEE ON INTELLIGENCE
FOR
FINANCIAL YEAR
ENDING 31 MARCH 2010
Table of
contents
1.
Message from the Chairperson
5
·
Welcoming of new members
·
Composition of new Committee
·
Farewell to IG and DGs
·
Comment on the Restructuring process
2.
JSCI Mandate
..
8
3.
Activities of the
Committee
.
9
3.1
Training of members of the JSCI
9
3.2
Oversight by the Task Team to Comsec
...
10
3.3
Report on the Oversight
visit by the JSCI to the Services
11
3.3.1
Briefing
on the Restructuring process
..
11
3.3.2
Electronic Communications Security (Pty) Ltd
(Comsec)
12
3.3.3
National
Communications Centre (NCC)
13
3.3.4
Office for Interception Centres (
OIC)
14
3.3.5
Recommendations
by the JSCI
14
3.4
Legislation related to Intelligence Structures
15
3.5
Recommendation to Joint Rules Committee
15
3.6
Appointment of the new Judge
...
16
3.7
Appointment of the new IG
..
16
3.8
Reports of the Auditor-General
16
3.9
Ministerial Review Commission (MRC)
17
4.
Intelligence
Structures
19
4.1
National Intelligence Agency (NIA)
19
4.2
South African Secret Service (SASS)
21
4.3
Office for the Interceptions Centres (OIC)
22
4.4
The South African National Intelligence
Agency (SANAI)
24
4.5
Electronic Communications Security (Pty) Ltd
(Comsec)
27
4.6
The Intelligence Services Council (ISC)
29
4.7
The National Intelligence Coordinating
Committee (NICOC)
30
4.8
Defence Intelligence (DI)
32
4.9
Crime Intelligence (CI)
34
4.10 Office of the Inspector
General (OIGI)
35
4.10.1
State Security Agency: Domestic
Branch (SSA: DB)
36
4.10.2
State Security Agency: Foreign
Branch (SSA: FB)
36
4.10.3
National Communications Centre
(NCC)
37
4.10.4
Defence Intelligence (DI)
37
4.10.5
Crime Intelligence (CI)
37
4.11.
Reports from the Judge
responsible for the issuing of statistics as defined in the Regulations of
Interception of Communications and Provision of Communication-Related
Information Act, 20 (Act No. 70 of 2002) and Act 127 of 1992.
38
5.
International
work of the JSCI
..
38
6.
Recommendations
39
7.
Conclusion
..
40
Annexures:
A.
Report of the Auditor-General
B.
Judges Annual Report on applications for
interceptions
C.
Programme for the Financial Year 2009/2010
D.
Diagram of restructured State Security
Agency
E.
Glossary
1.
MESSAGE
FROM THE CHAIRPERSON
The national and provincial elections that took place
on the 23 April 2009 have resulted in the formation of the Fourth Parliament of
the
The Committee shall consist of 15 members of Parliament appointed on the
basis of proportional representation determined according to the formula in
paragraph
(c)
: Provided that-
(i)
if the total number of seats on the Committee
allocated to the political parties in terms of paragraph
(c)
is less than 15, the unfilled
seats shall not be allocated to any political party, but the Committee shall
nevertheless be deemed to be properly constituted; and
(ii)
if one political party has been allocated more than eight seats in terms of
paragraph
(c)
and more than
five political parties are represented in Parliament, the five minority parties
with the largest representation in
Parliament are entitled to at least one member each on
the Committee, and the Committee so constituted shall be deemed
to be properly constituted regardless of whether the total number of seats so
allocated on the Committee is more or less than 15; and
(iii)
if any
political party is unwilling to serve or to continue to serve on the Committee,
the seats of such political party on the Committee shall not be allocated to
any other political party but the Committee shall nevertheless be deemed to be
properly constituted.
As a consequence
of the election results the following political parties were
entitled to representation on the JSCI
pending the issuing of the necessary security clearance by the National
Intelligence Agency (NIA):
African National Congress (ANC)
9 seats
Democratic Alliance (DA)
2 seats
Congress of the People (COPE)
1 seat
Inkatha Freedom Party (IFP)
1
seat
United Democratic Movement (UDM)
1 seat
Freedom Front Plus (FF+)
1 seat
Independent Democrats (ID)
1
seat
Total
16
seats
However, both the ID and the FF+ declined to serve on the Committee. The
Committee therefore consists of 13 members. It should be noted that the Chairperson
of the JSCI is appointed separately in terms of Section 2(4) of the Act.
The members of the Committee are:
|
Name
|
Party
|
|
Mr LT Landers
|
ANC (NA)
|
|
Mr JJ Maake
|
ANC (NA)
|
|
Ms SCN Sithole
|
ANC (NA)
|
|
Ms ST Ndabeni
|
ANC (NA)
|
|
|
ANC (NA)
|
|
Mr SS Mazosiwe
|
ANC (NCOP)
|
|
Ms MG Boroto
|
ANC (NCOP)
|
|
Ms A Dlodlo
|
ANC (NA)
|
|
|
ANC (NCOP)
|
|
Mr TW Coetzee
|
DA (NA)
|
|
|
IFP (NA)
|
|
|
UDM (NA)
|
|
Mr MS Shilowa
|
COPE (NA)
|
The Committee has operated above party political differences because of
the nature of its work. Because of the new members, the immediate challenge
will be to build the bonds of trust and respect amongst the members so that the
oversight functions of the Committee can be enhanced.
Before the Committee could exercise any of its functions the members had
to go for proper training in order to empower them with a proper understanding
of the security environment in which the work of the Committee is done. The
training is an on-going process.
The Ministry of Intelligence Services has been renamed. It is now known
as the Ministry for State Security. The Minister Hon SC Cwele was re-appointed
as Minister of State Security. He has given notice of the major restructuring
in the civilian intelligence entities. A new department known as the State
Security Agency has already been established in terms of a Proclamation. The
Agency will be headed by a Director General. It will have a domestic capability
which is presently performed by NIA. It will also have foreign capability that is
presently exercised by SASS. All the spending agencies of NIA will be
consolidated as support structures to the SSA. However, the final format is
expected to be revealed once the work is completed by the Ministry.
The above-mentioned restructuring will naturally affect the oversight
work of the Committee. The new members are nevertheless extremely enthusiastic
and it is expected that the Committee will soon be fully operational.
In the period under review the Committee has already been engaged in
numerous tasks. These matters are all referred to in the report.
It should also be noted that many personalities involved in the
intelligence community have either retired or their periods of employment have
come to an end. The Committee notes that the previous DG SASS, Mr T Dennis and
previous DG NIA, Mr M Manzini have both moved on. The Committee wishes them
well and thank them for the contribution that they made to the development of
civilian intelligence.
The former IG, Mr Z Ngcakani has also left, his term came to an end on
31 December 2009. This matter is dealt with in the report.
In all likelihood this Committee will operate in its present form with
only 13 members until 2014.
2.
JSCI MANDATE
The JSCI is a Parliamentary Committee established
in terms of the Intelligence Services Act 40 of 1994 (herein after the Act).
The members of the JSCI and the Chairperson are appointed by the President in
consultation with the Speaker of the National Assembly and the Chairperson of
the National Council of Provinces.
The Act provides for the establishment of a
joint standing committee to perform oversight functions related to intelligence
and counter-intelligence functions of the Intelligence Services and report
thereon to Parliament.
The reporting
includes the administration, financial management and expenditure of the Services
and Intelligence Service Entities.
Accounting officers of the various intelligence
structures/services are required to account to the JSCI in a manner that
entrenches a culture of oversight and accountability, thereby strengthening Parliament
as a pivotal national institution serving the people of
The
following are some of the functions of the JSCI:
·
To
obtain a report from the Auditor-General on the financial statement of the
Services.
·
To
obtain a report from the Evaluation Committee on the secret services evaluated
and reviewed by it, together with comments or recommendations.
·
To
obtain from the designated Judge a report regarding the functions performed in
terms of the Interception and Monitoring Prohibition Act including statistics
of interception requests made by the Services.
·
To
consider and make recommendations on the report and certificates presented to
it by the Inspector General of Intelligence.
·
To
consider and make recommendations on all proposed legislation relating to the
Services and Agencies and to initiate legislation in connection with such
Services and Agencies.
·
To order
investigation by and to receive a report from the Head of a Service or the
Inspector-General regarding any complaint received by the Committee from any
member of the public regarding anything, which such a member believes that a
Service has caused to his or her person or property.
3.
ACTIVITIES
OF THE COMMITTEE IN THE REPORTING YEAR
3.1
Training
of members of the JSCI
On 02 07 August 2009, a training
session was held for the Members of the Committee at the South African National
Academy for Intelligence [SANAI].
The training was to alert the new members
on how to conduct themselves when dealing with classified documents or
information, how to respond to the media and how to respond to complaints sent
to them by members of the public amongst other things, but most importantly to
have an understanding of all the relevant legislation governing the
intelligence services.
The training yielded the following outcomes:
·
Members could fully understand the
legislative mandate and structures that report to the Committee as provided for
in the Act.
·
Members interaction with the intelligence
structures and entities prepared the foundation for better working relations.
·
The training facilitated the oversight
responsibilities of the Committee over the intelligence community.
·
Members could now understand what
constitutes compromising national security in the handling of information
related to intelligence matters.
·
Members could understand the intelligence world
and its intricacies.
After the training session, Members of the Committee met in
Parliament to review the training with the primary objective of identifying
areas for further training. The Committee resolved to prioritise training by
the Auditor-General on the financial statements of the Services. This training
will be conducted by the AGs office and is scheduled to take place in the next
financial year.
3.2
Oversight by the Task Team to
COMSEC
On 17 November 2009,
the AG presented their findings to the JSCI on the Annual Report and Financial
Statements of the Comsec.
The report
identified serious matters of concern.
The Committee immediately appointed a Task Team to investigate matters
at Comsec.
On 02 December 2009, a
Task Team comprising of Messrs C Burgess, TW Coetzee and Ms SCN Sithole had a
two-session meeting with the office of the AG and the Comsec management at
Comsec.
In the first session,
the AGs office referred to their findings and how they had attempted to advise
Comsec on their poor financial management style. They advised that all their
attempts to salvage the situation had been in vain. Only the Task Team and AGs
office was present at this session.
It was agreed that
the Comsec situation would be discussed with the
Minister.
Comsec would be asked to
compile a full report on the AGs findings. Comsec would also have to provide
the Committee with their Annual report.
The Chairperson opened the second session which
included Comsec officials. He emphasised that the JSCI had come to collect
information on the Comsec situation as a consequence of the AGs audit report
on Comsec.
After deliberations on the findings of the AG, the
acting CEO stated that after having obtained the AGs report and its findings,
Comsec had prepared a document, an action plan, that spelt out how they
intended to rectify the problems identified by the AG in the audit report.
The action plan would later be complimented with
a written report which would further clarify how they intended to rectify the
situation.
In conclusion, the Task Team requested Comsec to
respond to the concerns raised by the AG in writing and forward the response to
the Committee not later than 31 January 2010.
Subsequently the response was received by the
Committee on 01 February 2010. The Committee was satisfied with the remedial
measures taken. However, the Committee will closely monitor the operations at
Comsec.
3.3
Report on the oversight visit by the
JSCI to the Services
The Committee undertook an oversight visit from
31 January to 3 February 2010 to the following entities: Office for the
Interception Centre (OIC); National Communications Centre (NCC); Electronic
Communications Security (Pty) Ltd (Comsec) and Ministry for Intelligence
Services (now known as State Security Agency) in
Objectives of the visit were:
·
To visit
intelligence entities and inspect their facilities and receive briefings.
·
To monitor the
restructuring process within the civilian intelligence as announced by Ministry
of State Security.
The delegation comprised of Mr CV Burgess (Chairperson
and leader of the delegation); Ms MG Boroto; Mr TW Coetzee ; Ms A Dlodlo; Mr NB
Fihla ; Mr NM Kganyago; Mr LT Landers ; Mr JJ Maake ; Mr SS Mazosiwe ; Mr SD
Montsitsi ; Prof CT Msimang ;
Ms ST
Ndabeni ; ; Mr MS Shilowa and
Ms SCN
Sithole.
3.3.1
Briefing on the Restructuring Process
On 01 February 2010 the Committee met with the
Minister of State Security for a briefing on the progress of the restructuring.
The Minister, Dr S Cwele, briefed the Committee on the legal implications of
the process of restructuring of the intelligence community. He advised that possible
amendments to existing legislation were necessary.
The Committee was advised that Treasury and the Public Service
Commission had been consulted regarding all aspects of the establishment of the
new department. A Steering Committee would be driven by the DG, Mr MJ Maqetuka
and DDG for Corporate Services, Prof. S Africa. They would also consult experts
to assist.
Legislation to give effect to the restructuring,
will be tabled in Parliament in the next financial year.
The Committee was informed that the initial process of restructuring is
expected to be finalised by April 2010. This process will involve the
reorganisation and integration of duplicated structures.
In the new structure the NCC, OIC and Comsec would
be integrated.
A project team was looking
at financial implications and a consultation forum. The project team consisted
of one representative per agency. Skills retention and new recruitments were
already work in progress.
A preliminary diagram depicting the proposed
restructured new Security State Agency is attached to this report as Annexure D.
3.3.2
Electronic Communications Security
(Pty) Ltd (Comsec)
On 02 February 2010 the Committee also visited
Comsec. The acting CEO, Mr Kotane informed the Committee that Comsec was
undergoing restructuring in accordance with a Presidential Proclamation of
2009.
The Board of Comsec was no longer
functioning.
Comsec was deregistered and no longer a (Pty)
Ltd but a government entity.
The Committee raised concerns about the legality
of this process because Comsec was operating as a (Pty) Ltd and yet the change
presupposes that it is a government entity.
This technicality had legal implications which were of real concern to
the Committee. The Committee committed itself to investigate the legality of this
process.
The Committee further requested
Comsec to furnish it with the following documents:
·
Liquidation
statement
·
Proclamation letter
·
Asset register
It was also noted that Comsec services all
organs of state in terms of communications security including intelligence.
A questionnaire is sent out to clients (organs
of state) to assist Comsec in assessing compliance,
inter alia
, with the MISS. A very low response and co-operation had
been encountered by Comsec. The JSCI undertook to assist in this regard by encouraging
all the relevant stakeholders to assist by completing the questionnaires
compliance form of COMSEC.
3.3.3
National
Communications Centre (NCC)
On 02
February 2010 Mr Zokwe, the Executive Director of the NCC welcomed the JSCI.
He gave an overview briefing on the desired
outcome of the restructuring process and indicated that NCC, OIC and Comsec
would soon fall under one department.
Duplication of
communication security centres has always been a concern and was reported to be
one of the reasons for the proposed integration.
Remarks of
the JSCI
The Executive Director of NCC was requested to
look at the role the NCC will play during the Soccer World Cup and advise the
Minister and copy JSCI.
3.3.4
Office for Interception Centres
(OIC)
On 03 February 2010 the Committee visited the
OIC. The Committee received a presentation on interceptions from the Director,
Adv Koopedi.
In the three and half years that OIC has been
established, three million interceptions were done. The clients of OIC are
prescribed by t
he Regulation of Interception of Communications and
Provision of Communication-Related Information Act (
RICA
)
, not by OIC.
South African Police Services is the biggest client and this is
reflected in the amount of applications made by the Crime Intelligence unit of
the SAPS.
He informed the JSCI that the
NPA is now also a
client of OIC.
The Director, Adv Koopedi, also explained that,
given the continuous innovation in the ICT environment and the sophistication
of crime, there is a need for the OIC to keep updating their technology. Therefore
there was an ever increasing demand for more funds to be allocated to the OIC.
The Committee undertook to investigate the
question of under-funding of certain projects of the OIC.
After the interaction with the OIC the Committee
also made the following recommendations:
3.3.5
Recommendations by the JSCI
·
JSCI needs to
review the RICA to ensure that the OIC functions without problems.
·
Consideration
should be given to the testing of communication products sold to the RSA to see
if they are interceptable. If not, they must be prohibited.
·
The OIC must meet
with the RICA Judge and devise strategies to ensure continued compliance by
clients.
·
JSCI will meet with
Minister Cwele and other role players to see how more funds could be allocated
to OIC to upgrade their systems.
The Chairperson cautioned the Committee and the
OIC that the proposals have to be considered within the context of the restructuring
process.
The following structures will be visited in the
next financial year.
·
SANAI
·
SASS
·
NICOC
3.4
Legislation
related to Intelligence Structures
In the year under
review
the Committee noted that the
Protection of Information Bill was introduced in Parliament on 9 March 2010 as
a draft Bill and was referred to the Ad Hoc Committee on Protection of
Information Bill on 18 March 2010 for consideration and report. The Chairperson
of the JSCI was appointed to chair the Ad Hoc Committee.
The Bill provides for inter alia,
·
For the protection
of certain information from destruction, loss or unlawful alteration.
·
The classification
of certain sensitive information in order to prohibit it from disclosure.
·
The repeal of the
Protection of Information Act, 1982; and
·
The criminalizing
of certain hostile acts against the State and its
Intelligence entities.
This Bill will be processed by the Ad Hoc
Committee and is scheduled to be finalised in the next financial year.
3.5
Recommendation
to Joint Rules Committee
In the reporting year, the JSCI agreed that
the rules of the committee related to the operations of the Committee as they
stand need to be amended to address some shortcomings. Discussions will be
finalised in the next financial year. Recommendations will then be presented to
the Rules Committee.
3.6
Appointment
of the new Judge
Judge DDM Swarts term came to an end on 31
October 2009, he was appointed on 01 November 2008.
The JSCI thanked the judge for the good work
he did during his term as judge dealing with applications for interception. He
was of great assistance to the JSCI. Subsequently, Judge JAM Khumalo was
appointed on 1 November 2009 and currently holds the position.
3.7
Appointment of the new IG
The outgoing IG met with the Chairperson of
the Committee on 30 December 2009 and submitted a report to the JSCI on the
investigations of the alleged leaking of tapes to the legal team of the
President of the African National Congress. The Committee will receive the
necessary briefing once a new IG is appointed.
In anticipation of the new IG starting in the
next financial year, the Committee would like to take this opportunity and
thank the previous IG, whose term ended on 31
st
December 2009.
Subsequently, Parliament advertised the vacant
post.
Applications were received and
interviews were conducted. The Committee unanimously nominated Ambassador Adv F
D Radebe to the House. On 18 February 2010 the National Assembly approved the nomination
in terms of Section 7 (1)(b) of the Intelligence Services Oversight Act 40 of
1994 which was forwarded to the President for appointment.
3.8
Reports of the Auditor-General
The Auditor-General (AG) plays an important
role in the oversight work of the JSCI. In this regard the Committee depends on
the assistance of the AG when exercising financial oversight over the
intelligence entities. The Committee has a Memorandum of Understanding (MOU)
with the AG which needs renewal. Committee members are also trained by the
Office of the AG.
The AG also reports to the Committee annually
in terms of Section 3 (a)(i) of the Act. Attached hereto as Annexure A is the
Auditor Generals Report.
3.9
Ministerial Review Commission (MRC)
·
The MRC was appointed by Mr Kasrils (former
Minister) in November 2006. The terms of reference were set out in the JSCI
2008 annual report.
·
The final report of the MRC was to be
submitted to the Minister by the end of 2007. The report was almost a year
late.
·
On 21 August 2008 Mr Kasrils in a media
statement advised that the MRC had formerly handed over to him the final report
on Thursday 07 August 2008.
·
On 2 September 2008 the then Chairperson of
the JSCI, Dr S Cwele addressed a letter to the then Minister R Kasrils
requesting a briefing on the final report of the MRC.
The date and time was set for 10 September
2008 at 13h00. This briefing never took place.
·
However, on 23 September 2008 Minister
(Kasrils) resigned from his position as Minister of Intelligence Services.
·
On 25 September 2008 Dr Cwele was appointed
as the new Minister of Intelligence Services.
The JSCI was without a Chairperson until November / December 2008.
·
On 18 February 2009 the new Chairperson of
the JSCI addressed a letter to Minister Cwele advising him that the JSCI had
not as yet received a briefing from either the Minister or the MRC on the
report of the MRC.
In particular the
following question was put in the letter: What is the status of the report of
the Ministerial Review Commission?
The Committee was subsequently advised by the Minister that the
Ministerial Review Report had no status in Cabinet.
Accordingly, under these circumstances the
JSCI resolved to regard the matter as finalised and noted that no presentation
was ever received on the report.
It should also be noted that the Ministerial Review Report was released
to the media without it having been put before Cabinet for discussion and
adoption.
Composition of the Ministerial
Review Commission team:
·
Mr J Matthews: Chairperson
·
Dr F Ginwala: Commissioner
·
Mr L Nathan: Commissioner
·
Mr BP Gilder: Consultant
·
Dr SE Africa: Researcher
Costs incurred by the Ministry in
respect of the Review Commission
The total costs incurred by the Ministry in respect of the services
rendered by the Ministerial Review Commission was
R4,999,168.74.
This total cost was
inclusive of the professional hourly rates as per the Public Service Hourly
Rates for Consultants issued by the Department of Public Service and
Administration and it also included travelling and accommodation.
Ministerial Review Commission
members were remunerated as follows:
The Chairperson
Mr J Matthews claims
amounted to
R2,121,850.80
over the
duration of the Review Commission.
Dr F Ginwalas
(Commissioner) claims amounted to
R861,724.50
over the duration of the Review Commission.
Mr L Nathans
(Commissioner)
claims amounted to
R1,795,696.00
over
the duration of the Review Commission.
Mr BP Gilder
(Consultant)
claims amounted to
R80,256.64
over the duration of the Review Commission.
Dr SE Africas
(Researcher)
claims amounted to
R139,640.80
over the duration of the Review Commission.
All the parties were
paid in full.
4.
INTELLIGENCE STRUCTURES
The following are the Intelligence Structures
and Spending Centres over which the JSCI exercises its oversight mandate:
4.1
National
Intelligence Agency (NIA)
The National Intelligence Agency is
established in accordance with the Intelligence Services Act (Act 65 of 2002).
Some
of its functions, as provided for in the National Strategic
Intelligence Act (Act 39 of 1994) are:
(a)
To gather, correlate,
evaluate and analyse domestic intelligence, in order to:
(i)
Identify
any threat or potential threat to the security of the
Republic or its people;
(ii)
Supply
intelligence regarding any such threat to the National Intelligence
Coordinating Committee (NICOC).
(b)
To
fulfil the national counter-intelligence responsibilities and for this purpose
to conduct and co-ordinate counter-intelligence and to gather, correlate,
evaluate, analyse and interpret information regarding counter-intelligence in
order to-
(i)
Identify
any threat or potential threat to the security of the
Republic or its people;
(ii)
Inform the
President of any such threat.
In
the reporting year, the following were some of NIAs Strategic Priorities:
·
Converting
operational Head Quarters as Centres of Excellence and decentred operational
capacities as Theatres of Operations to ensure dynamic operations.
·
Entrench
Assurance Model as a foundation of target driven operations aimed at detecting,
forewarning on, and countering threats and potential threats.
·
Increased
involvement in the government and private sector to maximise effective
interfacing and partnership building.
·
Optimal
utilisation of people in the Agency to elevate morale and improve productivity.
·
Entrench
Assurance Model as foundation of target driven operations by focusing on
environmental scanning and operational investigations.
·
Ensuring
that the FIFA World Cup becomes a successful event in a secured and
accident-free environment.
A
summary of NIAs achievements in the reporting year includes:
·
Developed
an Environmental Scanning Matrix for domestic
terrorism.
·
Benchmarked
with international standards in terms of border intelligence and counter
terrorism aspects.
·
Established
sound working relations and platforms of co-operation and co-ordination with
Law Enforcement Agencies, Foreign Intelligence Services and other role-players
in the security domain.
·
Ensured
that the security for the 2010 FIFA World Cup was up and running prior the
event.
·
Developed
a step-by-step guide for analysis.
And
the following were some of the identified critical success factors:
·
Effective
co-ordination with relevant role players to ensure an incident free FIFA World
Cup.
·
Expanding
human and non human source capacity through force multiplication efforts in
various areas.
·
Creating
specialised units and implementing new methods, concepts and approaches to
enhance ability and improve the collection result.
·
Migration
to one Information Technology Platform.
·
Acquisition
and retention of scarce and specialised skills.
It should also be noted that the JSCI received
a comprehensive presentation on the State of Readiness of the security organs
of the State for the FIFA World Cup.
4.2
South African Secret Service (SASS)
SASS derives its mandate from the National
Intelligence Act 39 of 1994.
The
Committees interaction with SASS in the reporting year also included a briefing
on their annual report for the financial year. To this regard the JSCI would
like to commend SASS on their participation in the peace and stability
initiatives in Africa.
SASS was able to
issue regular, timely and relevant intelligence reports on conflict ridden
countries and provide early warning on stability related threats. SASS managed
to develop, maintain and nurture good relations with Foreign Intelligence Services
(FIS) which paved the way to sharing of perspective on areas of mutual interest
and this has led to the improved management of SASSs hub system.
The Committee also noted the support role SASS
played in hosting a successful 2009 Confederations Cup and the assistance
rendered for the 2010 FIFA World Cup. SASS continues to participate at the
United Nations Security Council in support of the South African Government.
SASS received an unqualified audit opinion
from the Auditor-General with no emphasis of matter for the 2008/2009 financial
year.
4.3
Office
for the Interceptions Centres (OIC)
The OICs mandate is provided for in the
Regulation of Interception of Communications & Provision of
Communication-Related Information Act 70 of 2002 (RICA).
The objectives of the OIC are:
·
To ensure the OIC becomes a fully functional organisation
·
To build and improve relationships with stakeholders/clients
·
To enhance quality of products and services
·
To ensure effective administration
·
To ensure effective security
The clients that are serviced by the OIC are:
v
The Defence Intelligence
which is an Intelligence division of the South African National Defence Force.
v
Crime Intelligence which is
an Intelligence division of the South African Police.
v
State Security Agency
comprised of National Intelligence Agency and South African Secret Service.
v
Also the National
Prosecuting Authority.
Crime Intelligence remains the biggest client
of the OIC and this is reflected by the volume of applications to the Judge in
the year under review.
In the previous reporting year the OIC
highlighted some of the challenges that they have been encountering which had
an adverse impact on their ability to deliver on their mandate. In this
financial year OIC took some steps in trying to address these challenges
thereby improving the performance of the organisation.
The
following are some of the initiatives taken by the OIC in trying to resolve
challenges faced in the previous financial year:
·
The OIC has focused on Human Resources capacity, effective
administration, employee wellness, Occupational Health and Safety in an effort
to ensure that the organisation becomes fully functional.
·
Progress has also been made with regards to HR Administration and the
updating of members information (personal data) for the human resources
records.
·
Strategic and Business Planning and Implementation was also done in line
with the Medium-Term Expenditure Framework (MTEF) calendar and there has been
active participation of members in relevant planning sessions as well as
meetings where the OIC hosted the Minister of State Security, Director General
as well as internal and external stakeholders.
The OIC also took steps to improve its
relation with stakeholders that are critical to the operation of the
organisation.
In an effort to enhance the quality
of products and services, the OIC developed Interim Standard Operating
Procedures, (SOP) in order to ensure effective administration of operational
processes. The focus of these SOPs is to provide operational procedures between
the Law Enforcement Agencies (LEAs) and the OIC
.
The Domestic Branch of the
State Security Agency (NIA) deployed personnel to the OIC as part of its
Operations for the World Cup Draw that was held on 11 December 2009 in Cape
Town.
The OIC also provided
training for members of the SANDF to enable them to have access to OIC products
related to their work.
The OIC however, continues to
face certain challenges, some of which have been left unresolved from previous
financial years. Outdated equipment and software are of major concern to the
Committee. The Committee will meet with the Minister to assess the budget
allocation of the OIC.
The
following were some of the challenges facing the OIC during this reporting
period:
·
The recruitment to fill critical posts was halted due to the
restructuring in the services.
·
The legal process of reviewing and amending regulations is slow as it
involves different stakeholders who will be affected by the amendments.
·
Upgrades on the side of the service providers is sometimes responsible
for problems experienced by the OIC on interceptions.
·
Insufficient funding is affecting service delivery and negatively
contributing to problems ranging from inadequate equipment thus leading to the
loss of data as well as the inability to collect all data as prescribed by the
Act.
·
Distribution Networks and some front end upgrades not implemented due to
financial constraints.
It is envisaged
that some funds may be redirected to assist the OIC.
The JSCI has noted the challenges
and has resolved to assist the OIC.
4.4
The South African National Intelligence
Academy (SANAI)
The Academy provides training for persons in,
or conducts such examinations or tests as a qualification for the appointment,
promotion or transfer of persons in or to, the intelligence services or
departments, as the case may be, as the Minister may prescribe; and
·
May issue diplomas or certificates to persons who have passed such
examinations or tests.
The following were some of their strategic objectives during the
reporting period:
·
Development and delivery of quality intelligence training.
·
Develop and conduct research programmes that enhance training.
·
Develop structured relations with clients and partners.
·
Build good corporate governance.
·
Implement and manage an effective security system.
The following issues were identified as key priority areas in the
financial year under review:
·
Full accreditation as a training institution
·
Integrate border intelligence training
·
Establish inter-departmental workshops on intelligence to inform security
training for security staff and senior officers in departments
·
Focus on Basic Intelligence Training in Formative Training Programme (FTP),
(NIA, NCC, SASS, OIC, Comsec, and NICOC)
The Academy achieved some successes:
·
Publications of SANAI research.
·
Increased staff compliments.
·
Recruited more members including contractors in line with post
establishment.
·
Benchmarked against Scotland Yard, M15, M16, Centre for Security Studies
(Switzerland), Marshall Centre (Germany).
·
Good working relations with traditional partners like, NIA, SAPS, SANDF,
South African Receiver of Revenue and the Department of Home Affairs. The
Academy also works with other countries.
The Academy obtained accreditation on, National Diploma in Statutory
Intelligence, Trainers accreditation as assessors and moderators and extended
Formative Training Programme (FTP) to NCC and DHA.
SANAI continues to experience certain challenges and some of these are hampering
their ability to deliver on their mandate:
·
SANAI is
yet to achieve accreditation of all customized functional courses
·
The
Academy has not performed an analysis of training needs and training content
with the Services.
·
Acquisition
of high level expertise from the Services to improve case study development,
course content and training delivery.
·
Completion
of infrastructural projects.
SANAI made the following recommendations to
the Committee as a solution to some of the challenges they are facing:
·
Reconstitution
of the Ministerial Advisory Committee on Training (MACT).
·
Rotation
of Subject Matter Experts (SMEs) and Best Practice Experts (BPEs).
·
Expansion
of the participation of veterans in conducting research and training delivery.
·
Funding
for accommodation and facilities for training.
The JSCI has noted that the case of the Chief
Financial Officer (CFO) on financial mismanagement which has been dragging on since
2006 has now been finalised as the charges were withdrawn on 19 March
2010.
The incumbent chose to return to
his position but is currently on study leave which ends on 1 June 2010.
4.5
Electronic
Communications Security (Pty) Ltd (Comsec)
During the period under review, Comsecs
service delivery focus was based on the following key areas:
·
Ensuring the protection of electronic communication systems of organs of
State.
·
Strengthening financial management and corporate governance.
·
Strengthening research and development capacity and align with the
National Communications Centre (NCC).
·
Ensuring efficient and effective organisational processes.
·
Building infrastructure and attaining accreditation.
·
Improving stakeholder and strategic alliance management.
·
Attract, grow and retain highly skilled people.
Comsec recorded some achievements in line with
the set objectives. The Committee was however, not satisfied with these
achievements given the importance of the organisation of their mandate.
The following are some of the achievements recorded by
Comsec:
·
HR process on recruitment and hiring, training, termination, career
management, payroll management, performance management were identified and
process maps drafted and implemented.
·
HR filing system installed and all personnel files updated.
·
HR internal audit and interim external audit conducted.
·
Improved communication through partnership with the constituency forum on
addressing all matters that concern employees.
·
Developmental Plans were completed for all employees.
·
In the period under review, various service level agreements were drafted
and signed by the CEO such as the Service Level Agreement (SLAs) relating to
the South African Communications Agency (SACSA) mandate takeover.
Comsec identified challenges some of which had
an impact on their ability to achieve their annual objectives and their
legislative mandate.
The following were some of the challenges:
·
Comsec finds itself operating in an environment where skills required to
drive service delivery are very rare and not readily available in the open
labour market and the few that are there come at a premium because other
organisations want to retain such skills.
·
Comsec is required to enter into business agreements with organs of State
before providing a service.
Business
agreements are detailed legal documents that take a while before they are
concluded. Comsec has therefore adopted the use of a letter of agreement to
fast track the process.
·
The state of poor responses by organs of State impacts on the relevance
of the report on the national security posture of organs of State due to the
evolving nature of technology.
·
Crypto devices that are deployed within the organs of State are at their
end of life span.
The committee recommended that in order for
the organisation to deliver on its mandate and strategic objectives, there
should be an urgent drive to source/employ people to fulfil the organisations
need to have highly skilled employees who specialise in ICT Security.
4.6
The
Intelligence Services Council (ISC)
The mandate of the ISC is derived from section
22 of the Intelligence Sevices Act, 2002 (Act 65 of 2002), as amended. The ISC
in respect of Conditions of Service, performs its functions impartially,
without bias, fear or prejudice.
During the period under
review, the objectives of the ISC were to:
·
Monitor and evaluate the implementation of HR Policies and Directives in
line with the Regulations on Conditions of Service and applicable legislation.
·
Continue reviewing the Intelligence Services Regulations on Conditions of
Service.
·
Ensure alignment and compliance of policies and directives with the
Regulations and applicable legislation.
·
Build and maintain strategic relationships with stakeholders and clients.
·
Align and deliver ISCs services in conjunction with Ministerial
priorities.
The following were the successes reported by the ISC in the reporting
year:
·
In January 2009 started reviewing the Intelligence Services Regulations.
·
Reviewed the Conditions of Service and benefits: Annual Cost of Living
adjustments (2009/2010)
·
Embarked on the following projects:
Ø
Organisational Health: Statistical Analysis
Ø
Group Scheme Review
Ø
Work Life Integration Framework
Ø
Multi-term salary model
Ø
Dispute resolution mechanism
There are however, challenges that continue to
face the ISC. In this regard the Committee has emphasised the need for a speedy
resolution of these challenges given the critical mandate of the ISC and the
negative impact that delays in resolving challenges can have on staff related
matters.
The following are some of the challenges:
·
Insufficient co-operation between the Services and the ISC.
·
Lack of proper implementation and monitoring of policies on Conditions of
Service (COS) and HR related matters.
·
Ensuring effective consultation between the ISC, Management of the
Services and Staff Council on COS and HR matters.
·
Continuous capacity building to enhance the skills of the ISC members.
·
Inadequate accommodation or office space made it impossible for the ISC
to recruit enough personnel as per approved staff establishment.
4.7
The
National Intelligence Coordinating Committee (NICOC)
NICOC is tasked with the responsibility to co-ordinate
the intelligence supplied by the members of the National Intelligence
Structures to NICOC and interpret such intelligence for use by the State and
the Cabinet for the purposes of-
(a)
The detection and identification of any
threat or potential threat to the national security of the Republic;
(b) The
protection and promotion of the national interests of the Republic.
During the period under review, NICOC did a
presentation to the JSCI on the National Intelligence Estimates (NIEs).
Deriving from a presentation to Cabinet, a
Ministerial Task Force was established to identify, short, medium and long term
priorities.
In preparation for the FIFA World Cup, NICOC
received various reports on the state of the countrys readiness. Based on
these reports NICOC raised the following concerns which needed to be addressed
so as to ensure that the country was fully prepared to host the soccer
tournament:
·
NICOC was concerned about the countrys capacity regarding Disaster
Management.
·
Sufficient provision of electricity during this period (Soccer World Cup).
·
Measures or mechanisms to contain possible strikes and protest actions.
·
Effective monitoring of crime syndicates and foreign nationals from
neighbouring countries and border security.
A comprehensive plan was developed to look at
putting systems in place to address the above-mentioned challenges and many
other challenges that had been identified. NICOC assured the Committee that all
the state security structures were working together to ensure that the
tournament takes place in a safe environment and that NICOC was able to lead on
the co-ordination of all intelligence structures involved in the preparation of
the Soccer World Cup.
NICOC also made other
recommendations in line with their mandate:
·
Government must expedite the Review of the Criminal Justice System
·
Government must develop a strategy for the integration of foreign
nationals into our communities.
·
Government must synchronise migration strategies and approaches at
regional
level.
·
A comprehensive audit of the private security industry must be done to
develop a data base so as to minimise vulnerabilities to rogue elements.
·
Expedite passing of the Protection of Information Bill.
4.8
Defence
Intelligence (DI)
The Defence Intelligence (DI) of the South
African National Defence Force (SANDF) is the intelligence division for the
Ministry of Defence (MOD) and Military Veterans (MV) and the Department of
Defence (DOD), with the mission to provide intelligence and
counter-intelligence on the strategic and operational level to support
activities of the MOD and the MV/DOD and National Government in pursuit of the security
objectives of the country.
The following are the strategic objectives of the DI:
·
To provide early warning.
·
To participate in security management in the region and on the continent.
·
To promote a state of security for the conduct of operations in the MOD,
MV and the DOD.
·
To provide a counter intelligence capability and service.
·
To provide an intelligence capability and service.
During the reporting period, the DI succeeded in:
·
Completing the feasibility study for the new DI HQ which will be a
motivation for a specified site for the new DI HQ (South African Defence Intelligence
College).
·
Formulating effective crime prevention strategies.
·
Establishing market related Occupational Health and Safety measures.
·
Encouraging physical training, sport and recreation.
·
Acquiring latest information and communication technology.
·
At regional level, DI participated in various forums and processes, eg.
The Southern African Development Community (SADC).
·
The DI remained involved in peace processes in Africa in support of the
peace initiatives of government both by providing intelligence on the current
security situation and by direct participation in peace talks.
·
At regional level, DI participated in various forums and processes.
·
Liaison with various intelligence partners (both African and non-African
services) took place.
As part of liaison
and co-operation, a marine coastal monitoring system (similar to that in operation
in South Africa) was extended to a SADC country, with the aim to make the
Southern African coastline a safer environment.
·
An Intelligence Course for International Students was facilitated,
which remains a highly sought-after course among officers in foreign defence
forces.
·
Relations with DI clients were promoted through liaison with the Joint
Standing Committee on Intelligence (JSCI), the National Intelligence
Co-ordinating Committee (NICOC) and the
National Joint Operations and Intelligence workgroup (NATJOINTS).
The intelligence support given to
inter-departmental structures such as NICOC and the NATJOINTS focussed on
providing intelligence to enhance stability during major national events and on
border safeguarding operations related to FIFA World Cup 2010.
·
Lastly DI remained one of the key role players in the intelligence
community of South Africa and in the efforts of government to stabilise Africa
and bring peace to the Continent.
During the reporting period, the DI did a
presentation to the JSCI on
How we see
the World
.
The presentation focused
on the global world that is intertwined into a small village.
It highlighted trends and patterns of crime
syndicates, the connectedness of the world economy and how the military and
political influences connect one country with another.
DI needed to improve in the following areas:
·
Increase liaison opportunities with foreign intelligence services outside
the RSA where no Military Attaché is placed.
·
Establish automated fingerprint identification system.
·
Expand vehicle tracking system.
·
Establish quality assurance system for geospatial products.
In the reporting year, DI had the following challenges:
·
Borderline control information collection structure which are so far
unfunded.
·
Size of DI budget was not enough to enable them to deliver on their
mandate.
·
Loss of skilled personnel continue
to be of great concern.
4.9
Crime Intelligence (CI)
The Strategic Plan of CI derives from the
Strategic Plan of the South African Police Services.
This includes its Core Objectives and
Activities.
The Key Objectives of the CI:
·
To contribute to the neutralisation of crime by gathering, collating and
analysing intelligence information that leads to an actionable policing
activity.
·
In addition it also provides intelligence products for the National
Intelligence Estimate (NIE) as provided by the NICOC.
The core priorities for CI in the reporting year were the combating of:
·
Social Fabric Crime (murder and attempted murder, rape and attempted
rape, assault GBH, common assault, indecent assault)
·
Violent Organised Crime (carjacking, truck jacking, robbery, cash-
in-transit, bank robbery)
·
Property-related and commercial crime (house breakings, commercial crime,
stock theft)
·
Crime Dependent on Police Action for Detection (illegal possession of
firearms, drug-related, driving under the influence)
The following successes were reported during the reporting year:
·
The CI presented statistics reflecting an increase in arrests and
successful prosecutions. The statistics focussed in detail on each type
of
crime.
·
Successful co-operation with other Law Enforcement Agencies where CI
assisted in the crime combating operations.
There were however challenges
that had an impact on the operation of
the organisation:
·
Shortage of human resources
·
Budgetary contraints.
The Committee noted that the
work of CI was not always understood and that they therefore never got credit
for their contribution to the fight against crime. Many serious challenges face
SAPS and CI, however, CI has always played a significant role in providing the
necessary intelligence products to fight the most serious crimes.
4.10
Office of the Inspector General (OIGI)
Section 7 (11)(d) of the Intelligence Services
Oversight Act 40 of 1994 provides that the JSCI must receive a report on the
activities of the Intelligence Services and Agency of the preceding 12 month
period. The Inspector General must also provide the JSCI with a certificate
stating the extent which the IG was satisfied with the aforementioned report.
The IG must also advise the JSCI whether the Intelligence Services or Agency
contravened any directions of the Minister or acted unlawfully in the relevant
time period.
The IG has revised the format of the
certificates. The format is now more user friendly. Since the presentations
of the certificates were a matter of continuous development, the innovation of
the IG is commended by the Committee.
This report encapsulates only a few of the
main issues identified by the IG in the certification process and in the
revised format.
In general and in the opinion of the IG, the
IG was satisfied that the Annual Reports of the relevant intelligence entities
fairly represented their activities as required by legislation. Moreover, that
subject to a few matters of concern, nothing done by such intelligence entities
in the course of its activities were unlawful, contravened ministerial
directions or constituted an unreasonable or unnecessary exercise of any of its
powers.
Below follows a few of the concerns the IG
identified in the various intelligence entities.
4.10.1
State Security Agency: Domestic Branch (SSA-DB) (NIA)
Cases of fraud
implicating members. A major fraud investigation within the covert structures is
in progress.
4.10.2
State Security Agency: Foreign Branch
(SSA-FB) (SASS)
State Security Agency - Foreign Branch (FB)
has initiated fraud and audit
investigations
into alleged mismanagement of source payments. It was of concern that the
investigation has taken a long time and the matter remained pending.
SSA-FB has not adequately utilised the bulk
interception capabilities of National Communications (NCC), which primarily
focused on foreign communications. The NCC facility in Africa was not fully
utilised to its potential by the SSA-FB.
4.10.3
National Communications Centre (NCC)
The Regulation of
Interception of Communications and Provision of Communication-Related
Information Act, Act 70 of 2002 (
RICA
) does not
cater for the activities of NCC. The certificate noted that the vital role
played by the NCC in the collection of intelligence should be properly
legislated.
4.10.4
Defence Intelligence (DI)
The reassignment of borderline control to the
SANDF would require intelligence support to SANDF borderline control
operations. Legislative provisions to enable interception and monitoring of
communications, surveillance as well as the use of covert collection internally
would have to be considered to enable SANDF-DI to fulfil its mandate in support
of SANDF operations.
4.10.5
Crime Intelligence (CI)
The fragmented South African intelligence
system continued to be exploited by FIS. Their access to the intelligence
community needed to be managed in a more synchronised way. The co-ordination of
intelligence liaison between FIS and all the services warranted regulations
addressing, amongst others, the establishment and functioning of a suitable
coordinating mechanism.
It is noted that SAPS-CI, out of necessity to
address international crime, liaised with crime intelligence components of
foreign police services and any co-ordination of intelligence must have full
regards to this aspect.
The electronic link between the SAPS-CI and
the OIC was not adequate and thus did not enable provision of real-time
information on intercepted lines that were approved by the designated judge.
The Committee has
noted the concerns identified by the IG and will prioritise this for oversight
action.
4.11
Reports
from the judge responsible for the issuing of statistics as defined in the
Regulation of Interception of Communications and Provision of
Communication-Related Information Act, 2002 (Act No. 70 of 2002) and Act 127 of
1992.
In the Annual Report for the financial years
ending 31 March 2010, the Judge raised the following concerns:
·
The Judge received complaints from two telephone and cell phone operators
about the fact that police were requiring real-time information from them,
which by then was already forwarded to the OIC. The police had also indicated
that they were not getting this information in the required format from the OIC
hence they approached the service providers.
·
The Judge raised a concern with the Chairperson that he is still
receiving applications and affidavits which are faxed copies and not originals.
This was due to the fact that it was not practical for him to request original
papers in all cases before he could grant the approval.
Subsequent to that the Committee raised the
matter with the Services and is satisfied that steps are being taken to address
these concerns.
The latest report of the Judge is Annexed
hereto as Annexure B.
5.
INTERNATIONAL WORK OF
THE JSCI
A delegation of the
JSCI attended the International Intelligence Review Agencies Conference (IIRAC)
in Sydney Australia from 21-24 March 2010.
The Australian was
the seventh conference.
The
The following countries were represented in
Australia, Canada, New Zealand, Poland, Republic of South Africa, United
Kingdom, Belgium and the United States of America.
Each country
represented was requested to participate in giving a short presentation on
significant developments in the oversight framework in its country.
These conferences
provide great value to the understanding of the concept of oversight within the
intelligence community. In this regard it should be noted that the oversight
structures and entities do differ amongst the participating countries.
6
.
RECOMMENDATIONS
·
The Committee must regularise
meetings with the President and the Presiding Officers of Parliament.
·
The Evaluation
Committee must table the report to the Committee as provided for in the
Oversight Act.
·
The Minister for
State Security must finalise all the regulations that are still outstanding for
the Services.
·
SANAI must finalise
the process of accreditation of all the courses offered at the college.
·
The Committee
should meet with the National Security Council.
·
Challenges facing
Comsec and the OIC must be addressed by the Executive.
·
The re-structuring
process within the civilian intelligence with the necessary legislative support
must be finalised as a matter of urgency.
·
The co-ordination
of the sharing of intelligence products among the intelligence community must be
strengthened.
·
The Executive must
review the RICA.
·
Telecommunications
equipment must be properly screened before being approved for importation into
the RSA.
7.
CONCLUSION
The Committee has derived strength from its diversity notwithstanding
the fact that it is composed of different parties with different ideologies and
visions.
Working as a collective, the
Committee fulfilled its mandate with diligence and determination.
It managed to inculcate the culture of
oversight in all its clients which resulted in co-operation and good working
relations.
Investigations were done and
completed timeously as was shown by the Task Team in the Comsec investigations.
It should be noted that the new SSA has a domestic branch which is
generally referred to as NIA. The SASS is now known as the SSA-Foreign Branch.
The necessary legislation has as yet not been finalised. The JSCI accordingly will
continue to engage with the structures and intelligence entities as provided
for in the present legal framework.
Working towards a successful World Cup must be the main focus of the
country. The Committee is satisfied that all the intelligence entities have
prepared well and will be actively involved in the security of the country and
its people.
______________________
C.V. BURGESS
Chairperson: JSCI
ANNEXURES
A.
Report of the
Auditor-General
B.
Judges Annual Report on
applications for interceptions
C.
Programme of the JSCI for
the Financial Year 2009/2010
D.
Diagram
of restructured State Security Agency
E.
Glossary
Report to be considered.
Documents
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