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INTRODUCTION

MEMBERS OF THE MEDIA,
LADIES AND GENTLEMEN

1. In briefing you today, I will simply highlight a number of key Defence issues and provide time for questions.

I. THE DEFENCE REVIEW

1. Key to our policy is the transformation of Defence from top to bottom - as set out in our recently approved Defence Review.

2. This process is affecting the structure, design and force levels of our defence force as well as its posture, doctrine, value system and institutional culture, to bring the SANDF into line with our new democracy.

3. This restructuring is also enabling us to achieve a leaner defence force with greater cost savings.

4. And although we have experienced some difficulties in adapting to financial constraints, we are managing to adjust to the new realities.

II. TRANSFORMING DEFENCE

1. As you all know, General Nyanda recently became Chief of the SANDF, General Ramano, Chief of the Army, General Motau Chief of Defence Intelligence.

2. More recently, I have promoted General de Vries as Deputy Chief of the Army, and as part of our transformation programme, we have created three important new posts at Army Command.

3. General Ngwenya is responsible for Force Preparation; recently promoted General Venter - Force Planning; and General Matanzima - Force Support.

4. As part of restructuring, a Joint Operations Command has been created under Lieutenant General Ferreira who will be assisted by three deputies - recently promoted Major Generals: Bestbier and Potgieter, and as from 1st January 1999, Major General Binda.

5. The Joint Operations structure becomes the front line deployment arm of the defence force, and will be serviced by the army structure I have referred to, as well as by the other Services.

6. The top management of Defence Intelligence is being radically transformed.

7. The Chief of Defence Intelligence, Lieutenant General Motau, is supported by three newly promoted Major Generals: Doncaster, Pitso and Steenkamp.

8. Our overall restructuring programme is producing:

The creation of a single integrated headquarters structure of all Services for Defence;

The planned phasing out of some of the 9 existing Territorial Commands;
The reduction of bases and facilities;

And the merging of certain units - amongst other measures - to obtain greater cost efficiencies.

9. This necessary downsizing, together with our proposed rationalisation programme, should be achieved without the loss of essential capabilities in terms of the Defence Review.

III. REPRESENTIVITY

1. In 1996, Deputy President Mbeki, addressing a Defence Review conference, stated that by 1999 the SANDF should achieve broad representivity at all rank levels.

2. We are recording considerable progress to reach that important target.

3. 29% of all officers in the defence force are now black compared to 22% last year and 1% in the old SADF.

4. Better representivity makes for better morale and teamwork and consequently the enhancement of discipline.

5. It also means greater credibility and legitimacy for Defence in our country and internationally.

IV. DOWNSIZING

1. In downsizing the defence force from its current level of 93 000, we will pay special attention to the careers of the ordinary soldier at the lowest rank levels.

2. They are the ones without adequate savings, pensions and alternative skills.

3. They are the 'boots on the ground' - the sharp end of the defence force.

4. As long as they are young, fit, keen and disciplined, I do not want to sacrifice them to cost cutting.

5. The defence force we inherited was top heavy and with a bloated administration.

6. It is in these areas where we need to reduce and, indeed, we are noting a trend of many such officers opting for early retirement via the severance package route.

7. Savings on Personnel costs - including a decision to forgo merit bonus payments - is giving me some leeway in deciding on the fate of the ordinary troops

V. BUDGET AND ACQUISITION PACKAGES

1. Turning to the issue of the Budget we can and must live within our budget and will find a way to do so.

2. The challenge is to improve cost efficiency in the medium term.

3. This will reduce our Personnel and Operational costs, and increase the amount available for Capital costs - meaning acquisition - from under 10% at present to 30% over the next three years.

4. Achieving this will enable us to substantially handle our major capital acquisition within the Defence budget from that point onwards.

5. Suffice to say, Cabinet has accepted that essential equipment requirements can be linked to strategic Defence and trade co-operation programmes with major international partners.

6. Such agreements will boost our economy, stimulate growth, industry and trade, and create jobs.

7. Our decision regarding the acquisition packages will soon be finalised, and I am anticipating that we will announce the results before the end of the year.

8. Evaluation teams from the Departments of Trade and Industry, Finance and Defence are hard at work.

9. Their results will be presented to Cabinet for final decision and approval.

VI. THE PART TIME FORCE

1. In my Budget address, I prioritised the development of our Part-time Forces and re-emphasised the importance of the citizen soldier as the basis for our Defence.

2. The programme to increase our Part Time Forces has been hampered by the budget cuts .

3. It gives me pleasure to announce that a portion of the savings I have referred to is to be transferred to the requirements of enlarging our Part Time Forces and of resuming the training of Part Time Force recruits - particularly in the underprivileged areas of our country.

4. This, incidentally, will be of great assistance to the maintenance of peace and stability within our borders - and more particularly in the rural areas.

VII. THE DEFENCE ACT

1. The policy decisions in the Defence Review will be given effect in the new Defence Act and other legislation.

2. The Defence Act and a Military Disciplinary Code are being re-written by a working group consisting of experts from civil society and the Department of Defence.

VIII. MILITARY VETERANS BILL

1. The Department is also hard at work on finalising our Military Veterans Bill which will provide for :

The establishment of a Military Veterans Council to represent the interests of military veterans, supported by an Office of Military Veterans Affairs in the Department of Defence.

IX. EXERCISE BLUE CRANE

1. Our preparations for Peacekeeping and Peace Support in our region are continuing.

2. In November we host Exercise Blue Crane at the Army Battle School in the Northern Cape.

3. We are determined this should be as successful as last year's exercise in Zimbabwe.

CONCLUSION

1. LADIES AND GENTLEMEN

The transformation of Defence is on track and, notwithstanding inevitable problems, I believe we are making good progress and rising to the challenge of providing affordable and credible Defence for our country.

I NOW OPEN THE FLOOR TO QUESTIONS

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= MINISTRY OF DEFENCE =

- DEFENCE IN A DEMOCRACY -