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The defence function is about developing and maintaining the capability to ward off threats or dangers to this country and its people. Some of these threats are created by human beings, some are created by natural forces.

The most memorable record of South Africa's defence capability in recent times was the newspaper reportage, radio and television footage, broadcast throughout the world, of the South African National Defence Force personnel and aircraft in action, flying rescue missions in Mozambique. We saw dramatic displays of courage, discipline and heroism including the breathtaking rescue of Sophia Pedro, a young Mozambican woman who had just given birth to a baby girl in a tree.

During those weeks while the international community hesitated, the SANDF flew a total of 955,7 hours, using 82 uniformed persons and consuming 484,049 litres of petrol in the process saving more than fourteen thousand Mozambicans from certain death.

These were SANDF personnel performing their duty as our nation expected of them. There could be no more eloquent testament of the need for a defence force with capacity; of the need for a properly equipped national defence force, with well trained personnel loyal to national objectives and with a capacity to perform the missions that this country, the region and indeed the rest of the world expect of us.

(Arms packages)

Three to four years ago the need to equip our national defence force afresh was identified. The acquisition program was drawn up and central to this was the creation of a number of mechanisms and procedures to ensure a reliable process and transparency. This process has been followed to the last letter. The procedures that were followed are presently under the scrutiny of the Auditor General. I am confident that any irregularities that may have occurred will be uncovered and dealt with accordingly.

The arms packages entail the acquisition of the following equipment:

a) 3 German submarines
b) 4 German corvettes
c) 30 Italian light utility helicopters
d) 28 Swedish & British light fighter aircraft
e) 24 British fighter trainer aircraft.

The total value of the package program amounts to R29 992 million which will be paid over a 12 year period. The value of the offset programs coupled to the supply contracts, amounts to approximately R95 759 million.

Sceptics continue to question the wisdom of the decision to re-equip the National Defence Force. The capital equipment of the SANDF has reached a state of block obsolescence. They will however, be maintained until they can be replaced with newer generation equipment.

The ships being used by the Navy at present will be obsolete by 2004, after which the Navy will have no surface capacity if new ships are not acquired now. Similarly the decommissioning of the Daphne submarines by 2005 will leave the Navy with no under water capability, should the acquisition of new submarines not be initiated now.

The Alouette 111 helicopters presently in use by the South African Air Force were bought during the early 60s and will finally be decommissioned during 2005. They will be replaced by the Italian Agusta Light Utility Helicopters. We have trimmed down the original request made by the Air Force for 60 to 30 helicopters.

The 24 Impala jet trainer aircraft due to be decommissioned during 2007, will be replaced by 12 Hawk trainer aircraft. We will review the situation again in 2002, when an option to acquire 12 more will be examined.

It should be noted that the SA Air Force has significantly downscaled its frontline capability over the past number of years. Where the SAAF at one time operated a total of 54 front line fighter aircraft , these will now be replaced with only 9 Gripen fighters. An option to acquire another 19 will be examined in 2004.

These currently approved package programs will only provide for the capital renewal requirements of the SA Navy and the SA Air Force. The Department of Defence will henceforth embark on the planned capital renewal program for the SA Army which will primarily constitute a domestic acquisition program

(Regulatory framework for the industry)

The strategic defence packages have given a sharper focus to the issue of arms control. The South African Defence Industry is presently regulated by the White Paper on Defence, the White Paper on the South African Defence Related Industries and the Armscor Act. This Act is currently being revised and wide consultation will take place.

In addition, South Africa conforms to the International code of conduct on the arms trade by way of the National Convention Arms Control Committee which meets regularly and reports to Parliament quarterly. This Committee is convened and chaired under the able leadership of Minister Kader Asmal.

As the dramatic rescue missions of the last few weeks have demonstrated, the need for quality capital equipment has raised a profound political and tactical question. That is, what do we emphasise more in our future force preparation? The capacity to threaten neighbours as a deterrent or the capacity to be of more help to them so as to surround ourselves with a field of friends?

(Peacekeeping)

We are now training for peacekeeping. Exercise Blue Crane and Blue Hungwe, were carried out under the auspices of the SADC and were joint exercises with our regional partners.

South Africa is increasingly inundated with requests from her neighbours for assistance in training for peacekeeping. If we can contribute to the capacity of our neighbours to participate in peacekeeping missions then they will effectively share the burden of peace missions in the region. We would then not act on behalf of others but act with them.

We remain ready and prepared to deploy our forces when and if we are requested to do so by the UN.

But I must add, Madam Speaker, that in spite of efforts to discredit this country's role in the DRC peace process, Honourable members must not, without a shred of evidence, make assertions which generate hostility against this country and those of its national defence force members who may be deployed in the region. In this regard, the Hon. Bantu Holomisa's allegations during the President's debates and his questionable sorties into the DRC without informing our mission there, raises concern.

(Transformation priorities of the DoD)

(Integration and demobilisation)

The integration intake process of the Statutory and Non-statutory forces is drawing to a close. This process has taken much longer than was originally anticipated. But we are now in the last phase. We will be introducing legislation to finalise the process during the course of this year. Integration has been both a complicated and sensitive process, fraught with difficulties, but overall it has been successful.

(Rationalisation)

One of the recommendations of the Defence Review was the downsizing of the SANDF. To effect this we will be guided by the Employer Initiated Retrenchment scheme presently being formulated by Government.

The participation and concern of the parliamentary committees on this issue has been most valuable. Their oversight ensures that the Department remains on track and proceeds correctly.

(Personnel and representivity)

The composition of the South African National Defence Force must be demographically representative. The same applies to the composition of our officer corps. This necessitates that training must be shaped to ensure representivity and a balanced force for the future. Training is a key strategic area under the Chief of the National Defence Force. Training policy is determined by the Secretariat under my political guidance. Strategic planning is therefore essential to ensure succession planning for now and for the future.

(Arms industry)

We will be reviewing the arms industry with a view to developing a clear strategy with regard to the industry. At the same time the conversion of the industry is under discussion. We will be introducing legislation, hopefully at the end of this year, in the form of the new Armscor Act which will reflect the needs of a transformed Department in a new South Africa.

(Defence intelligence)

The complex world of defence intelligence has always been difficult to handle. The Moerane Commission is now completing its work. We will be examining their findings closely and will be looking at their recommendations with a view to implementation

(Military Disciplinary Code and Grievance system)

The previous system of military discipline posed a challenge to the transformation process since it was found that the problems around integration were reflected in the military justice system and grievance procedures. When the Constitutional Court ruled that the disciplinary system was unconstitutional we had to take immediate measures. Subsequently the Military Disciplinary Supplementary Measures Act was passed last year. I have requested the Secretary to monitor its implementation. We are committed to making this system work fairly and for all members of the Force to have fair and equal legal representation.

But we have to tighten discipline in the National Defence Force to ensure a highly disciplined force. We have recently introduced a Code of Conduct which must extend to all ranks of the SANDF. SANDF members faced with charges of murder, rape, attempted murder, and pointing firearms, will have to stay out of our bases until the courts clear them. The presence of persons charged under this category of crime remaining in the base is seriously demoralising the members of the SANDF as a whole, and general discipline is being affected.

(Training)

The modernisation of the National Defence Force has necessitated, amongst other things, the incorporation of a new value system. Training in the National Defence Force must reflect this re-alignment. Previously the preparation of troops centred around preparation for war. This must now be extended to include participation in peacekeeping and training for development.

(Tempe enquiry)

The massacre at Tempe was a tragedy for the country at large and for the Department of Defence specifically. The Ministerial Commission of Enquiry into the Tempe massacre, will be making its preliminary report by the end of June. We are taking this Enquiry very seriously and will be delving into the heart of this problem in order to dig out the problems and consider solutions. What has clearly emerged at this point in time is that there are a few elements in the SANDF, drawn from the previous statutory as well as non- statutory forces who are carrying out activities which undermine the coherence and morale of the SANDF. They constitute a criminal element whether they are those that celebrated the Kassinga massacre or those involved in murder and rape. They are disloyal to the national objective. Our organisational culture will have to be addressed and we will be looking beyond the scope of the Civic Education Programme as to its effectiveness.

(Combating the spread of HIV/Aids)

HIV/Aids is a strategic and security issue for the SANDF. It must receive high priority and attention. We are fighting to break the silence around this issue. We must create the environment for soldiers to speak out. We must encourage voluntary testing and peer support. We must identify soldiers who are prepared to declare their HIV status

(Legislation)

We will be introducing six pieces of legislation this year. The first and most important is the new Defence Bill to replace the outdated act, originally drawn up in 1957. This Bill regulates the Defence function and has taken shape over the last four years. It has had to be recast continually in line with the transformation of the Department and the compilation of the Defence Review. The Act is now before the Cabinet Committee where it is being examined closely. I would like to recognise the work of the Defence Act Workgroup for the work they have put into this Act. The workgroup, set up by Minister Modise, is composed of members of parliament, experts from different fields and senior members of the Department.

The National Conventional Arms Control Committee is to be institutionalised and given the necessary status in accordance with its task. Legislation to this effect is already with the State Law Advisors and will be tabled shortly.

As we terminate the integration intake of statutory and non-statutory forces, legislation to effect this is in the pipeline. The Termination of Integration Intake Bill brings this process to its finalisation. It goes with two other small pieces of legislation. The first is an amendment to the Demobilisation Bill and the second is a minor amendment to the Constitution, both of which at present leave the process open ended.

We will also be introducing an amendment to the Defence Endowment Property Bill.

(Defence Foreign Policy)

An interdepartmental team has drawn up a draft or framework of foreign defence policy. Central to it is:
* the promotion of security and defence co-operation and co-ordination;
* the strengthening of regional security and defence institutions;
* the promotion and development of stable civil military relations;
* the design and implementation of confidence and security building measures;
* the establishment of communication and other procedures for addressing inter state tension around military matters;
* ensuring effective border control;
* participation in disaster relief and other humanitarian operations;
* the promotion of regional co-ordination in preparing for peace support operations;
* the promotion of co-operation and co-ordination in a variety of specialised fields (e.g. naval matters, aviation matters, communications, logistics and intelligence);

(Regional Peace initiatives)

South Africa's regional peace initiatives have been widely covered in the media. Current efforts, led by the Minister of Foreign Affairs, have been in relation to the Democratic Republic of the Congo. We are also participating in the re-training of the Lesotho Defence Force.

(Strengthening of SADC Organ on Politics, Peace and Security)

We are putting a lot of hard work and effort into the strengthening of the SADC Organ on Politics, Peace and Security. We are working hard with our regional counterparts to achieve consensus on this issue.

(Constitutional obligations)

Our Constitutional obligations stipulate that the 'Defence Force must be structured and managed as a disciplined military force'. That the ' primary object of the defence force is to defend and protect the Republic' and that the Defence Force may be employed 'in co-operation with the police service, in defence of the Republic or in fulfillment of an international obligation'

Peace in the region and on the continent are essential components of SA's security system. The social and economic upliftment of our people, however, is the best guarantor of security.

(Auditor general's report)

The general trend noted in the Auditor General's report is not good. The Auditor General says that inadequate controls are in place, that there is limited compliance with Treasury regulations, and vigorous internal control is far from what it should be. Most disturbing however, is that the regulations of SCOPA, which are passed by parliament, are either ignored or flouted. Corrective measures have now been taken, and the Defence Secretary has set up an independent audit committee reporting directly to me. This committee had its first meeting two weeks ago.

(Acknowledgement/thanks)

I would first like to thank my Deputy Minister whose contribution is of invaluable worth. She plays a key role in the areas we have designated to her namely the decision making structures of the Department; secondly legislation undertaken in the Department, and thirdly, the budget - its process and functioning

The Secretariat, whose existence is enshrined in the Constitution, has had an exceptionally difficult time this last year. After the departure of Pierre Steyn, who steered the Secretariat through the first phase of the transition, Mr. Mamatho Netsianda acted in this post for over a year. We would like to thank him for this.

The Defence Secretary, Mr. January Masilela was appointed on 1st December last year and has already taken control of his function. We wish him all success in the years to come.

We have also lost our Chief of Policy and Planning, Mr. Aboobaker Ismael. He has moved to head the security division at the Reserve Bank. He played a key role in the creation and functioning of the Secretariat and we would like to wish him well in his new post.

The effective functioning of the Secretariat is of paramount importance. We will, together with the Secretary, be looking at strengthening the Secretariat.

I would also like to thank the Chief of the National Defence Force, General Nyanda who has borne numerous difficulties during the course of this year. He is playing a key role in the transformation of the Department.

Special thanks to members of the Defence Staff Council and all members of the Department who have gone to such lengths to enable the transition of the change over of Ministers a smooth and effective one.

The Ministry has two advisors and I would like to thank them both for their contribution.

My thanks also to the new staff of the Office of the Minister.

A special word of thanks to the BMATT (The British Military Advisory Training Team) team for their consistent contribution throughout the years.

My thanks to the team at Armscor.

Last, but not least, many thanks to the parliamentary oversight bodies, namely, the Portfolio Committee, the Joint Standing Committee and the Select Committee. These committees, under the leadership of the Hon Thandi Modise, Ntsiki Mashimbye, and Jabu Mahlangu keep us on our toes at all times and vigorously monitor all that we do. We appreciate their commitment and hard work in this process. Their involvement bears testament to our understanding of defence in a democracy and reflects the importance we attach to accountability and civil control over the military.

Finally I would like to acknowledge all those who have died in the last year whilst serving in the South African National Defence Force in the service of their country.

Enquiries: Sam Mkhwanazi, tel (021) 469 6008, 083 628 0858

Issued by the Ministry of Defence