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KGOTSO! PULA! NALA!

PEACE, RAIN & PROSPERITY

Madame Speaker
Honourable members of the National Assembly,
And invited guests

Introduction

The end of the cold war and a subsequent changing world situation has imposed constraints on all defence forces world-wide. The absence of a direct military challenge allows countries to focus on economic rather than military growth and expenditure. In this context, the disparity between the rich and developed North and the poor and underdeveloped South looms large.

Conflict on our continent is derived from the legacy of colonialism and the Cold War, wherein corrupt governments were supported for the economic benefit of the North. It is also the result of unequal access to resources. Conflict must be eliminated if we are to stabilise, develop, and move towards prosperity. But the resolution to conflict in underdeveloped regions must be initiated and led by the nations affected, with the support of the North.

It is against this backdrop that South Africa's defence expenditure must be understood.

The principal responsibility of the Department of Defence is to protect South Africa's sovereignty, and to safeguard her territorial integrity effectively and efficiently.

Today, we understand South Africa's security to incorporate political, economic, social and environmental matters. Conflict beyond our borders potentially impacts on our security.

To defend South Africa and protect her territorial integrity, we must maintain our core capabilities, which are long-term both in acquisition and payment. Security however, in its broader sense of socio-economic imperatives, is more immediate.

My Deputy Minister will be addressing some aspects of transformation, legislation and the challenges posed by HIV.

First challenge: Core commitments

The responsibility facing the Department of Defence is to maintain a core force that is able to meet its commitments to deal with a wide range of contingencies.

It must have the capacity to expand to an appropriate size when necessary. External military threats, internal threats to the constitutional order, the promotion of regional security through defence co-operation within the SADC framework, and the promotion of international security through participation in peace operations and military co-operation in support of our foreign policy goals are among the contingencies we must be prepared for.

Peace Support Operations

At present we are contributing military capacity for regional and international peace support operations.

The fluidity of the regional environment increases the likelihood of an escalation in peace support demands. As the representative of a country committed to stability, democracy, and good governance, the SANDF must be in a position to fulfil its obligations when called upon.

Support for the police

We continue to allocate resources to a number of other secondary functions. Our support for the police continues. This year alone it has involved 3, 580 men and women from the SANDF and cost us R109 million.

We are hoping that the creation of a rapid deployment stability force will release the SANDF from some day-to-day involvement with the police.

SANDF support for social delivery

The SANDF also supports a number of other departments and has provided a range of excellent services. The SANDF's response to a number of emergencies has justifiably been praised everywhere.

Domestically, these services range from active involvement in fighting the cholera epidemic, foot and mouth disease, assisting with the flood relief, repairing damaged infrastructure after tornadoes and heavy rain, building temporary bridges, and fire fighting. We are also involved in safeguarding our marine coastal resources. The SANDF assisted with local government elections and four other major events of national and international importance during 2000.

Again this year, the SANDF deployed 106 SAAF members for flood relief in Mozambique.

A significant portion of our budget goes towards providing these services.

Second challenge: Alignment of policy and budget

The second challenge facing the Department is aligning our policies (as set out in the White Paper and the Defence Review) with our budget. Quoting from the White Paper

" Defence policy should be in harmony with all other aspects of government policy, particularly foreign policy and national security policy."

The Defence Review was in effect a business plan for the implementation of the White Paper. That White Paper dictated that we change from an offensive to a defensive military posture. That goal has been attained.

But because of increased and increasing regional, continental and international demands being made on our country, we must take the process further. Whilst the Defence Review remains appropriate in the wider sense, the time may have come for some adjustments to be made. To that end, we are conducting an internal military strategic appreciation of our capability to ensure that we are able to carry out our constitutional responsibilities and implement strategic decisions.

We will be reporting to Parliament, through the Defence Committees on the outcome of this process.

Third challenge: Absorption of new technology

New technology is at the heart of the strategic defence packages. Technical training has to be adjusted. We remain committed to the strategic packages. We are pleased to report that the contracts are on track. The first leg of the process is nearly completed and the DIPs (defence industrial participation) programmes are going well.

Engineering News reported

Between April last year and April this year, just over R1.3billion of DIP credits were authorised, or 9.1% of total possible DIP credit of R14. 6 billion over the entire life of the programmes, which will run from 7 to 11 years, depending on the systems being acquired. It should be noted that all rand values for DIP are being officially calculated on an exchange rate of $1,00 = R6,25, so the above figures are actually significantly greater in May 2001 rand terms.

We need to state very clearly that the strategic packages remain valid because they provide the equipment we need for our core business.

I welcome the debate on the strategic packages. For the first time in our history, the acquisition of armaments has been carried out in a transparent fashion. South African citizens can and must scrutinise the performance of the Executive. This is unprecedented.

Finally, let me remind members that the establishment and maintenance of a balanced VIP air transport capability was approved during the 2000/01 financial year.

Fourth challenge: Changing regional situation

Honourable members, we live in fast changing times, and the Department must adapt to the changing regional situation. For that change to be positive, we must all turn the soil so that the Millennium Action Plan can take root.

In her budget address, the Foreign Affairs Minister identified the challenges and priorities facing Africa and South Africa, citing partnerships at various levels as crucial to the successful implementation of the plan. In the areas of collective regional peace and stability, it is incumbent on defence to forge partnerships.

DRC

Allow me a few examples of where we have been hard at work on this score: We were given the task of convening Defence Ministers from Rwanda, Uganda, Zimbabwe and the Democratic Republic of Congo to develop strategies of disarming the armed groups in accordance with the Lusaka Cease Fire and Standstill Agreement. This project is now awaiting the completion of Phase 2 of MONUC.

Burundi

South Africa, Ghana, Nigeria, Senegal and Belgium have been invited to secure the peace process in Burundi. We have recommended to the President that South Africa accept the invite and play a part in this process. We have already scheduled the first meeting, which will cover contingency planning.

SADC

The strength of our region is embodied in SADC. I remind the House, that the SADC adopted the Protocol on Politics, Defence and Security Co-operation, which is an agreement at the political level on how to deal with major conflicts, which destabilise or may destabilise our region in the future. The ratification of the Protocol, which defines the work of the Organ on Politics, Defence and Security, by the Heads of State, will mark an important milestone in the achievement of regional security and confidence building measures.

Flowing directly from the Protocol is the need for a comprehensive regional pact, the drafting of which started immediately after the 22nd session of the Inter State Defence and Security Committee, which was held in Maseru last month. It is intended that the collective defence pact must deal with the issues of conflicts between states (that is inter-state both between two SADC states, or one SADC and another state), or intra-state (that is within a state). It must serve before the next summit of Heads of State in August.

The Pact will provide a modus operandi of how to intervene in conflict situations as well as prescribing proportional contributions to be made by every member state. No country can single-handedly shoulder the responsibility for the security of the region.

Fifth challenge: Defence Secretariat

Members will appreciate that all of the activity mentioned above, requires capacity. To qualitatively increase the capacity of the Defence Secretariat is therefore our fifth challenge. The Secretariat remains the Minister's resource base for his civil oversight role

The internal audit committee I set up last year has made 3 reports thus far, focussing on four areas of weakness. These are being attended to as a matter of priority.

Problems of resource management

It is unfortunately my duty to report to you that crime entailing financial loss to the state has been uncovered within the Department. We take this very seriously at all senior level of the Department. We have uncovered syndicates operating within some of our bases. The Chief Financial Officer, under the direction of the Secretary is setting up internal control mechanisms. A holistic approach that includes the Military Police and the Inspector General will be used. This approach will include professionalising the audit function and supplementing with an external forensic capacity.

With regard to the curbing of losses and effecting improvements in our efficiency, I have directed the CEO of Armscor to conduct an investigation into a more cost efficient utilisation of the Simon's Town Naval Dockyard. It is expected that the workgroup doing the investigation will present a range of viable models to me by the end of the year.

Problems of transition

With regards to the problems of transition, I wish to advise the House that the final report of the Ministerial enquiry is being edited. I hope to be able to share its findings with Cabinet as well as the House before Parliament rises. In the meantime I wish to inform the House that following the Interim report, the Defence Staff Council looked at ways of addressing the problems, which were identified. The situation is at present relatively stable; nevertheless further efforts need to be made to overcome these problems.

New Service System

Ensuring constant access to high quality personnel is a challenge for any defence force. For us in South Africa, this challenge also provides us with an opportunity to empower some of the best and brightest of our young people with the skills and disciplines they will require throughout their lives.

Consequently, we are recommending to the country the introduction of a service system. The service system will form the first career stage for young (under 22) unmarried grade 12 school leavers to serve in the SANDF on a voluntary basis for two years. It is proposed that during their first year of service they will undergo basic military training and some functional training. After which, if they don't choose a military career, they will be allowed to return to civilian life but encouraged to serve in the Reserve Force. This will enable the SANDF to retain the necessary average age and best physical capacity among the bulk of the members of the National Defence Force. The youth in turn receive a training that is beneficial to them. We aim an annual intake of 10 000 young people.

Thanks

I would like to extend my thanks to the Defence Secretary, Mr January Masilela, who is Accounting Officer and Head of Department, and the Defence Secretariat.

I would like to thank the Chief of the South African National Defence Force, General Siphiwe Nyanda, the four Chiefs of the Services, and the SANDF for the tremendous job they have done this year.

I want to recognise the men and women in the military bases around the country and to our teams in the DRC and Eritrea and Ethiopia. They serve as symbols of courage, discipline, and dedication and our government and people are proud of their sterling efforts.

My thanks to Armscor, our acquisition agency.

I would like to thank the British Military Advisory Training Team headed by Brig Hughes.

Thanks to the Civic Education Monitoring and Advisory Committee and all those who have participated in working with the Department from NGOs and universities.

I would like also to thank Dr Setai, Gen. Geldenhhuys, Col Mbongwa, and Ms Lamani who are working to complete their report.

Roy Anderson and Admiral Bekker have headed the independent audit committee. My thanks to them.

My thanks to Mr Roeland Hudson Bennett and the Castle Control Board for there open-mindedness and participation in helping to map the way forward for the Castle.

My thanks to the team at the Ministry.

Most importantly in this forum, Madame Speaker, allow me to thank the three Chairs and Parliamentary Committees.

Conclusion

In closing, Madame Speaker,

As proud as I am of these achievements, I would be remiss in my duty if I did not remind you that, to ensure that we are able to meet the challenges we face, we must make the right strategic decisions now. We must prioritise issues and choose what to do with the money we get.

I am sure members will join me in identifying those choices and in defining how precisely our goals are to be achieved.

I look forward to a very constructive debate.

I thank you.

Issued by Ministry of Defence

19 June 2001