ATC241204: Report of the Select Committee on Security and Justice on the oversight visit to the Simon’s Town Naval base on 13 November 2024, report dated 4 December 2024

NCOP Security and Justice

Report of the Select Committee on Security and Justice on the oversight visit to the Simon’s Town Naval base on 13 November 2024, report dated 4 December 2024.

 

1. Background

The oversight visit was the first engagement of the Select Committee on Security and Justice in the 7^th administration with the Navy. The purpose was introductory and for the committee to familiarise itself with the Navy’s services and operations and to engage on its 2023/24 annual performance report and 2024/25 performance indicators. The committee wanted to receive a report on any challenges encountered by the Navy, with a view to finding solutions moving forward.

The South African National Defence Force (SANDF) is the backbone in efforts to secure South Africa from external threats. In the value chain of the security cluster, the SANDF assists with maritime safety, border patrol, and air and land space monitoring, among other valuable functions. The naval base was chosen for the committee to receive a comprehensive introduction to the work of the Navy and its programmes, staffing, challenges, infrastructure, maintenance of its assets and how the budgetary constraints impact on operations.
 

Due to concerns related to confidentiality, the Chairperson invoked Rule 127 of the National Council of Provinces wherein a committee can, at the start of a meeting, deliberate on whether to close the proceedings to the public if it deems that the information to be presented is of a confidential nature and impacts on the security of the country. The committee deliberated behind closed doors on the matter and resolved that the meeting with the Minister of Defence, Ms Angie Motshekga and the department, would be closed to the public. However, thereafter, the physical oversight and walkabout would be open to all.

 

2. Delegation Attendance

Gauteng: Ms J S Mananiso (Leader of the Delegation), Eastern Cape: Adv Inkosi M Nonkonyana (Committee Whip), Ms N P Mcinga, Free State: Mr P Noe, KwaZulu-Natal,  Ms OD Medupe, North West: Mr M Billy, Limpopo: Mr P A Phala, Mpumalanga: Mr SA Zulu, Northern Cape: Mr O J Mokae, Western Cape: Mr N Gotsell.

 

3. Apologies

Mr V Gericke.

 

4. Support Staff

Content Advisor: Dr A Van der Burg, Committee Secretary: Mr G Dixon, Committee Researcher: Ms P Whittle.

 

5. Ministry and Department Attendance

Minister of Defence and Military Veterans: Mrs A Motshekga; Chief of Staff of the SANDF: Lt Gen Ramantswana; Chief of the SA Navy: Vice Admiral Lobese; Flag Officer Fleet: Rear Admiral Matsane; Chief Director Maritime: Rear Admiral DuToit; Director Maritime Warfare: Rear Admiral Masimala; General Officer Commanding Defence Works Formation: Major General Kekana.

Armscor: Mr Gerhard Grobler: Chief Financial Officer.

 

6. Overview of the Navy

Simon’s Town plays host to South Africa’s largest naval base and is at the centre of the SA Navy. The SA Navy base in Simon’s Town houses most of the Navy’s strategic operational vessels. These include, inter alia, the Valour-class Frigates, submarines, patrol craft, support-vessels, mine-warfare vessels and other auxiliary vessels. The Simon’s Town harbour further plays host to the Armscor Dockyard that is responsible for repair and maintenance of the SA Navy’s vessels.
 

The Navy festival took place from the 4^th to 6^th October 2024 and welcomed over 40 000 citizens who were excited to visit the navy. The Navy is working hard to provide combat-ready vessels and platforms for the defence of the country, as well as to satisfy its international commitments. It is further committed to eradicating all acts of maritime criminality within South Africa’s domain and surrounding waters. Years of underfunding have resulted in the scheduled upkeep, maintenance and repair of vessels not taking place as required.

 

The committee was informed that 96% of SA imports and exports in terms of tonnage move by sea. Eighty percent of SA trade in terms of monetary value moves by sea. 95% of SA crude oil is imported by sea. Maritime trade generates over 50% of SA GDP. Cape Point (strategic choke point) accounts for 15% (40%+ currently due to attacks on shipping in the Arabic Sea) of international maritime traffic.

South Africa has 3 924 kilometres of maritime borders, with 96% of South Africa’s imports and exports moving by sea. The Navy’s “Operation Corona” maritime coastal patrols are a deterrent for illegal, unregulated and uncontrolled fishing, but the monetary value of these forms of fishing exceeds that of legal fishing.

The Navy only achieved 2641.47 sea hours of its targeted 8000 hours at sea for the 2023/2024 financial year due to prolonged maintenance and repairs to its vessels. This is mainly due to capacity constraints at Armscor dockyard, which is further compounded by procurement challenges.
 

7. Physical Oversight

The Committee conducted a walkabout of the naval base, boarded the SA Drakensberg and visited the dry dock and the maintenance workshop.

The Armscor Dockyard is located within Naval Base Simon’s Town as the primary maintenance facility for SA Navy vessels. The Dockyard is responsible for establishing, maintaining and developing an infrastructure to provide several services to the SA Navy, including vessel refitting, vessel repair, vessel modernisation, engineering changes, equipment repair, docking services, spares manufacturing, technical training support, contracting services, providing predetermined technical assistance to shore establishments and several laboratory services.

The committee was informed that the whole value chain was not transferred to Armscor. Before the transfer there were 3000 people who were employed and now there are only 480 people employed in Armscor. Armscor must attend to 70% ad hoc work and spares are often not available. Funding is a huge concern.  The committee was informed that Armscor is currently purchasing machines for improved manufacturing and engineering which will begin to introduce computer aided manufacturing to start establishing a capability where some components are not supported. Armscor reported that they have a backlog in maintenance which needs to be addressed.

 

7.1 Dry Dock: The committee was informed that the dockyard provides effective solutions for the maintenance and repair of vessels and submarines. The facility has the capacity to generate seven megawatts of electricity, fresh water and compressed air. It is 228 metres by 29 metres in size. If there are no vessels, they flood it. Pumps are massive and can pump water out in 4 hours.

 

7.2 Workshop: The committee was informed that it is an internal combustion engine workshop which falls under the mechanical section. The workshop maintains and repairs all vessel’s parts. They receive parts as per specifications. There is a need to respond to the availability of spares.

 

7.3 Committee Observations

7.3.1 The committee noted that the Navy and Armscor does not have the necessary spares to repair the vessels adequately. The Committee noted that procurement processes should be clarified and revisited to address these challenges.

7.3.2 The committee noted the need for Armscor and the Navy to meet and work out a plan to address all challenges moving forward to ensure that vessels are fixed and repaired to increase sailing hours.

7.3.3 The committee noted the challenges and encouraged that a plan be developed and for some services to be digitalised in the workshop.

7.3.4 The committee noted that National Treasury (NT) promulgated the concept of Procurement by Other Means through PFMA SCM Instruction No 03 of 2021/22 (Enhancing Compliance, Transparency and Accountability in Supply Chain Management).  The above instruction allows for deviations if, in a specific case, it is impractical to invite competitive bids, in which case, the Accounting Officer (AO) may procure the required goods or services by other means, provided that the reasons for deviating from inviting competitive bids is recorded and approved by the AO.  This approach is a critical instrument that will assist the DOD to enhance its capability to fulfil its mandate in view of its declining budget allocation and the simultaneously growing stakeholder expectations. 

 

7.3.5 The committee was concerned about procurement and supply chain matters and requested that a detailed report be furnished to the committee on these matters.

 

8. Committee Recommendations

8.1 The Committee recommends that the Navy and Armscor should meet to conduct joint planning and to open the lines of communication to resolve all challenges in respect of the repair and maintenance of vessels.

8.2 The Committee undertook to receive a full and detailed briefing from Armscor in the new year.

8.3 The Committee requested that detailed information relating to the Defence Works programme be submitted to the Committee within 14 days of the oversight visit.

8.4 The Navy must implement better planning and management systems in respect of the budget to avoid overspending on the compensation of employees and to ensure that the budget is directed towards the implementation of programmes to increase sea hours.

8.5 The Committee undertook to assist the Navy with the allocation of the budget, to ensure that it has sufficient budget to fulfill its mandate effectively.

8.6 The Committee further noted that the NCOP should debate the matter of the envisioned role the SANDF plays within South Africa to determine the appropriate funding model for it to fulfill its mandate.

8.7 The Committee encouraged the Navy to implement the necessary consequence management, particularly in the supply chain management space, where necessary, to counter any corrupt or fraudulent activities.

8.8 The Committee encouraged the Navy to continue implementing transformation internally and to ensure that navy officials’ general well-being is taken care of.

8.9 The committee encouraged the Navy to continue working with other departments to put a stop to criminality at sea through the ‘Operation Corona’ programme.

 

9. Conclusion

The committee was pleased with the honest and open engagement with the Navy and Armscor. The committee will continue to monitor the Navy’s strategy and proposed actions to address challenges posed by the unavailability of prime mission equipment to improve service delivery and encourage effective collaboration between Armscor and the Navy that will facilitate development of an integrated system to manage critical needs.

 

Report to be considered.