DOD Presentation to the PCD&MV DEPARTMENT OF DEFENCE 2014 ANNUAL PERFORMANCE PLANS

1. DOD Presentation to the PCD&MV DEPARTMENT OF DEFENCE 2014 ANNUAL PERFORMANCE PLANS Presented By The Secretary For Defence: Dr S.M. Gulube 30 July 2014 1

2. SCOPE • Introduction • Sources of Defence Mandate • DOD Organogram • Planning Requirements • Strategic Overview • MOD&MV Strategic Priorities: FY2014/15 • DOD Contributions • MTSF • NDP • New Growth Path • IPAP 2

3. SCOPE (CONT.) • DOD Core Performance Information • Entities Reporting to the MOD&MV • Budget Allocation and Trends • PCD&MV Requirements wrt HR • Audit Report FY12/13 and DOD Action Plan • Budgetary Review Recommendations 3

4. AIM To present the concise corporate overview of the Department of Defence (Def Sec and SANDF) 2014 APPs to the Portfolio Committee as tabled on 12 March 2014 4

5. INTRODUCTION • The DOD Constitutional and Legislative mandate place the following imperatives on the DOD: • “To provide for the defence and protection of the Republic, its territorial integrity and its people” [Constitution of the Republic of South Africa, 1996: Section 200(2)] • “A civilian secretariat for defence must be established by national legislation to function under the direction of the Cabinet member responsible for defence” [Constitution of the Republic of South Africa, 1996: Section 204] 5

6. DOD VISION “Effective defence for a democratic South Africa” DOD MISSION “To provide, manage, prepare and employ defence capabilities commensurate with the needs of South Africa as regulated by the Constitution, national legislation and Parliamentary and Executive direction. The above will be provided through the proper management, provision, preparedness and employment of defence capabilities, which are in line with the domestic and global needs of South Africa” 6

7. CONSTITUTIONAL AND LEGISLATIVE MANDATES

8. CONSTITUTIONAL AND LEGISLATIVE MANDATES (CONT.)

10. PLANNING REQUIREMENTS • Defence as an organ of state is required ito the PFMA and related National Treasury Regulations (Section 5 and 30) to ensure the submission of a departmental Strategic Plan (5 Year planning horizon) • The DOD as a mechanism to safeguard “confidential” departmental information, formally adopted the development of the DOD Executive Authority Overarching Strategic Statement, EA OASS, (2011/12-2015/16) as the overarching platform to inform further departmental planning, the Defence Secretariat (Def Sec) and South African National Defence Force (SANDF) Strategic Plans (2011/12-2015/16). • The reporting of performance against the above plans is dealt with through the relevant committees of Parliament. • The DOD is in the process of developing the new DOD Strategic Plan (2015-2020) in support of the Medium Term Strategic Framework (MTSF) and will be tabled during February 2015 as required by legislation. • The MOD&MV has furthermore directed that the DOD as from FY2015/16 MTEF shall ensure the development of one single departmental Strategic Plan (2015-2020) and on single departmental APP FY2015/16 MTEF onwards. 10

11. Executive Authority’s Overarching Strategic Statement 0 Sec Def Strategic Plan and Annual Performance Plan SANDF Strategic Plan and Annual Performance Plan 1 Services/Divisions (APP) 2

12. PLANNING REQUIREMENTS • DOD FY2014/15 MTEF Planning Instruments are: • Aligned to outcomes based principles of government. • Aligned with National Treasury Framework for SP and APP. • Aligned with the DOD Strategic Plan. • DOD FY2014/15 MTEF APPs were tabled in Parliament on 12 March 2014 (60 Copies and 1x Compact Disc). 15

13. PLANNING REQUIREMENTS • The DOD as required by the NT Framework on Strategic and Annual Performance Plans, has adopted an implemented Outcomes Based Planning (Results Based Planning) at all levels of the DOD. • Reflective of this Outcomes based requirement within the context of the Defence Constitutional and Legislative mandate, the DOD Strategy Map is provided as follows as the basis of departmental planning.

14. Department of Defence (FY2015/16) RSA is defended and protected (SANDF) Enhanced Civil Control of Defence (Def Sec) DOD OUTCOMES Output Deliverables (Departmental Mandate Execution) D1: Conduct ordered Defence commitments in accordance with government policy and strategy D3: Provide sound Defence direction D4: Ensure Defence compliance with Regulatory Framework D2: Provide mission ready Defence capabilities Internal Processes (What we Do) P1: Administrate the DOD P2: Enable the DOD P3: Employ the SANDF Resources Management (What we Use) R1: Provide professional & supported DOD Human Resources R3: Provide integrated & reliable Defence Information Systems R2: Provide appropriate & sustained Materiél R4: Provide sound Financial Management of the DOD Building for the Future (Sustainability) F1: Ensure Appropriate Strategic Reserves F4: Promote an appropriate Defence Industry F3: Undertake Defence Research & Development F5: Promote consensus on Defence F2: Renew DOD Main Equipment & Doctrine

15. PART 1: STRATEGIC OVERVIEW

16. MOD&MV STRATEGIC PRIORITIES: FY2014/15 The following MOD&MV Strategic Priorities shall receive attention during the period under ahead for execution through DOD (Defence Secretariat [Def Sec] and SANDF) FY2014/15 Planning Instruments:

17. MOD&MV STRATEGIC PRIORITIES: FY2014/15 20

18. MOD&MV STRATEGIC PRIORITIES: FY2014/15 21

19. MOD&MV STRATEGIC PRIORITIES: FY2014/15 22

20. MOD&MV STRATEGIC PRIORITIES: FY2014/15 23

21. MOD&MV STRATEGIC FOCUS AREAS: FY2014/15 24

22. MOD&MV STRATEGIC FOCUS AREAS: FY2014/15 25

23. MOD&MV STRATEGIC FOCUS AREAS: FY2014/15 26

24. MOD&MV STRATEGIC FOCUS AREAS: FY2014/15 27

25. MOD&MV STRATEGIC FOCUS AREAS: FY2014/15 28

26. DOD CONTRIBUTION TO THE MTSF OUTCOMES OF GOVERNMENT • The DOD, through the pursuit of its legislative mandate and inherent defence capabilities, will continue to render support to the selected MTSF outcomes. • As a general rule, the content of each MTSF outcomes forms the basis for a Delivery Agreement (DA) between a responsible Cabinet member and the President of the RSA. • Prior to the May 2014 General Elections, the MOD&MV was a co-signatory responsible for the co-ordination and chairpersonship of the International Cooperation Trade and Security (ICTS) Cluster for the MTSF Outcome 11: “Creating a better South Africa and contributing to a better and safer Africa in a better World”. • Post General Elections, the MOD is responsible for co-ordination and chairpersonship of the Justice, Crime Prevention and Security Cluster for MTSF Outcome 3: “All people in South Africa are and feel safe”

27. DOD CONTRIBUTION TO THE MTSF OUTCOMES OF GOVERNMENT (CONT.) • The MTSF outcomes to which Defencecontributes to, by virtue of its Legislative Mandate and inherent capabilities, are as follows: • Outcome 2: A long and healthy life for all South Africans. • Outcome 3: All people in South Africa are and feel safe. • Outcome 5: Skilled and capable workforce to support an inclusive growth path. • Outcome 11 Creating a better South Africa and contributing to a better and safer Africa in a better World • Outcome 12: An efficient, effective and development-oriented public service and empowered, fair and inclusive citizenship.

28. DOD CONTRIBUTION TO THE NATIONAL DEVELOPMENT PLAN 2030 • The DOD while striving for the achievement of the departmental legislative “core-sustained” mandate, remains cognisant of the national government “change” agenda to which defence, with available resources, will endeavor to support. • The approval on 11 November 2011 of the National Development Plan (NDP) is a plan for the country to eliminate poverty and reduce inequality by 2030 through uniting South Africans, unleashing the energies of its citizens, growing an inclusive economy, building capabilities and to enhance the capability of the state and its leaders by working together to solve complex problems. • This vision also informs Government Policy that includes the Industrial Policy Action Plan (IPAP) and the New Growth Path (NGP).

29. DOD CONTRIBUTION TO THE NATIONAL DEVELOPMENT PLAN 2030 • The NDP and its related policies provide a national framework that informs the national departments’ contribution. Aspects relevant to defence and our envisaged contribution are as follows: • Envisaged reduction in youth unemployment. The DOD is in the process of developing a policy on NYS within the Department. • Provide assistance in disaster aid and disaster relief. The DOD will assist in times of disaster relief and humanitarian assistance as directed by government. • Support in the combating of maritime piracy along the East Coast of Africa. The DOD will continue to support the combatting of maritime piracy along the East Coast of Africa. • Strengthening the National Research and Development capacity. The DOD will establish a DOD Strategic Research capability.

30. DOD CONTRIBUTION TO THE NATIONAL DEVELOPMENT PLAN 2030 • Building safer communities. The DOD’s contribution to building safer communities is realised through conducting internal operations and safeguarding the territorial integrity of the RSA. • Building a capable and developmental State. The DOD will review the governance structures of Public Entities (Armscor). • Corruption and Fraud. The DOD will intensify its campaign in fighting corruption and fraud.

31. DOD CONTRIBUTION TO THE NEW GROWTH PATH Government released the Framework of the NGP aimed at enhancing growth, job creation and equity. The policy’s principal target is to create five million jobs by the year 2020. The NGP identifies strategies that will enable South Africa to grow in a more equitable and inclusive manner while attaining South Africa’s developmental agenda. The DOD will endeavour to support the NGP through: • Development of the NYS policy and preparing youth for employment. • In the long term, it is foreseen that job opportunities within the Defence Industry in accordance with approved DOD capital acquisition projects will be created.

32. DOD CONTRIBUTION TO THE INDUSTRIAL POLICY ACTION PLAN The IPAP is located in the vision of the NDP and forms one of the principal pillars of the NGP and as such, the DOD with the pending Defence Review will direct Public Procurement and enable long-term acquisition and procurement of defence PME.

33. PART 2: DOD CORE PERFORMANCE INFORMATION 36

34. DOD PERFORMANCE INFORMATION MANAGEMENT • The DOD remains committed to alignment with the national processes for strategic planning, budgeting, reporting and risk management. • To this end, the DOD strives for the development of performance information that promotes transparency and expenditure control towards economy, efficiency, effectiveness and equity in the use of public resources, and to do so in a way that demonstrates alignment with legislation and national outcomes.

35. DOD ESTIMATES OF NATIONAL EXPENDITURE (ENE) FY2014/15 MTEF The following high level criteria informs (amongst others) the identification of the DOD ENE on an annual basis: • Level 0/1 Core Indicator. • Legislative / policy (sustained) mandate. • Output Deliverables. • Major cost drivers. • Trendable information. • Linkage to the MTSF Outcomes and NDP 38

36. DOD ANNUAL SELECTED PERFORMANCE INDICATORS AND TARGETS FOR FY2014/15 (ESTIMATES OF NATIONAL EXPENDITURE) The selected performance indicators, which are presented on the next slide, form a component of the DOD 2014 Defence Vote 22.

37. DOD ANNUAL SELECTED PERFORMANCE INDICATORS AND TARGETS FOR FY2014/15

38. DOD ANNUAL SELECTED PERFORMANCE INDICATORS AND TARGETS FOR FY2014/15

39. DOD ANNUAL SELECTED PERFORMANCE INDICATORS AND TARGETS FOR FY2014/15

40. PUBLIC ENTITIES REPORTING TO THE EXECUTIVE AUTHORITY

41. PUBLIC ENTITIES REPORTING TO THE EXECUTIVE AUTHORITY

42. ORGANS OF STATE REPORTING TO THE EXECUTIVE AUTHORITY

43. ORGANS OF STATE REPORTING TO THE EXECUTIVE AUTHORITY

44. ORGANS OF STATE REPORTING TO THE EXECUTIVE AUTHORITY

45. SERVICE DELIVERY IMPROVEMENT PLAN (SDIP) • In accordance with the Public Service Regulation (PSR), the Executive Authority (MOD&MV) shall establish and sustain a Service and Delivery Improvement Programme for the DOD. • The DOD shall therefore publish an annual statement of Public Service commitment, which will set out the department’s service standards that citizens and customers/clients can expect and which will serve to explain how the department will meet each of these standards. • The DOD is in the process of developing its first Service Delivery Improvement Plan for the FY2015/16. The Department of Public Service and Administration has been approached to render assistance in this regard to ensure departmental compliance with relevant legislation.

46. FY2014/15 EA OASS LINK WITH PLANNING INSTRUMENTS Detailed information per DOD Programme in support of the corporate DOD FY2014/15 MTEF Overarching Strategic Direction as presented above, is contained in the subordinate Def Sec and SANDF FY2014/15 MTEF Planning Instruments as tabled in Parliament on 12 March 2014.

47. PART 3: DOD FY2014/15 MTEF BUDGET PLAN

48. MTEF BACKGROUND • The DOD briefed the NT’s MTEC sub-functional group about the Defence budget requirements on 23 July 2013. NT indicated to Defence that the economic situation has deteriorated and that additional allocations for FY2014/15 will most probably not be possible. • Defence again briefed the “Defence, Public Order and Safety Functional MTEC about the Defence budget requirements on 22 August 2013. The MTEC proposed some reprioritisation of the Defence budget, some of which were accepted by Defence. These proposals were subsequently submitted to the MinComBud by NT.

49. MTEF BACKGROUND • The Defence Database and Chapter for the 2014/15 MTEF was submitted to NT on 06 December 2013 for inclusion in the Estimates of National Expenditure.

50. BASELINE REDUCTIONS