ATC110921: Annual Report of the Joint Standing Committee on Intelligence for financial year ending 31 March 2010

Joint Standing on Intelligence





Table of contents

1. Message from the Chairperson 5

· Welcoming of new members

· Composition of new Committee

· Farewell to IG and DG’s

· 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


A. Report of the Auditor-General

B. Judge’s Annual Report on applications for interceptions

C. Programme for the Financial Year 2009/2010

D. Diagram of restructured State Security Agency

E. Glossary


The national and provincial elections that took place on the 23 April 2009 have resulted in the formation of the Fourth Parliament of the Republic of South Africa . Both Cabinet and Parliament incorporated many changes and new faces. The arrangement of the Joint Standing Committee on Intelligence (JSCI) was no different. Only the previous Chairperson and the Honourable Mr. L Landers were reappointed onto the JSCI. The remaining Committee members were all new. The Intelligence Oversight Act 40 of 1994, and in particular section 2(2)(a) provides that:

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:



Mr LT Landers


Mr JJ Maake


Ms SCN Sithole


Ms ST Ndabeni


Mr NB Fihla


Mr SS Mazosiwe


Ms MG Boroto


Ms A Dlodlo


Mr SD Montsitsi


Mr TW Coetzee


Mr CT Msimang


Mr NM Kganyago


Mr MS Shilowa


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.


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 South Africa .

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.


3.1 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 AG’s 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 AG’s 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 AG’s 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 AG’s 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 AG’s audit report on Comsec.

After deliberations on the findings of the AG, the acting CEO stated that after having obtained the AG’s 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 Pretoria and Johannesburg .

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.




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 Swart’s 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 General’s 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 Ginwala’s (Commissioner) claims amounted to R861,724.50 over the duration of the Review Commission.

Mr L Nathan’s (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 Africa’s (Researcher) claims amounted to R139,640.80 over the duration of the Review Commission.

All the parties were paid in full.


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 NIA’s 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 NIA’s 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 Committee’s 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 SASS’s 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 OIC’s 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, Comsec’s 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 (SLA’s) 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 ISC’s 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 country’s 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 country’s 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


· 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.


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. South Africa was represented by Mr C V Burgess as the leader of the delegation accompanied by Ms M G Boroto; Ms S T Ndabeni and Mr T W Coetzee. The countries represented were Australia ; Belgium ; Canada ; The Nertherlands; New Zealand ; Norway ; Poland ; Republic of South Africa ; Sweden ; United Kingdom and United States of America .

The Republic of South Africa had hosted the fifth Conference, which was held in Cape Town in October 2006.

New Zealand hosted the sixth Conference in Auckland in October 2008.

The following countries were represented in New Zealand :

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.

Canada will host the next conference in 2012.


· 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.


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.



Chairperson: JSCI


A. Report of the Auditor-General

B. Judge’s 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.


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