Defence Budget Vote

 

Speech by Mr VB Ndlovu MP

 

NATIONAL ASSEMBLY : 27th May 2008  

Chairperson,  

The IFP has always subscribed to the philosophy of Ubuntu and its application to the everyday lives of all South Africans. It is therefore very worrying that we have heard that some generals who retire from the SANDF have such a poor pension that they cannot make ends meet and are thrown into an existence of poverty after diligently serving their country.

This situation begs the question: Does the Department of Defence support the philosophy of Ubuntu and its application to South Africa's soldiers?

On the surface that does not appear to be the case.

The 2008/09 Defence budget increases from R26, 2 billion last year to R28, 2 billion this year. This represents a nominal increase of about 7,7%.

However, if the average inflation rate for last year is factored into the allocation it is clear that the Defence budget has in fact decreased in real terms. I will return to this issue again later.

Over the medium-term the Defence budget will grow by an average of 7% per year to increase to R32, 2 billion in 2010/11. If the projected annual inflation rate for the next three years is above that figure, it becomes clear that the Defence budget will not just stagnate in real terms, it may even go backwards depending on the inflation figure.

With economic conditions worsening, it is highly likely that inflation over the next three years will be substantially more than 7% and the budget picture for the SANDF therefore looks very bleak.

The IFP cannot find fault with the main objectives listed in the Department's strategic plan for the next few years.

However, we are extremely concerned that the budget cannot be aligned at all with the strategic objectives. In virtually all of the individual budget sub-programmes the allocations have gone backwards and in real terms the strategic objectives cannot be met by the allocated funding.

That, Chairperson, means that the Defence Force itself will be going backwards unless the funding situation does not improve.

There are in our view two major reasons for the stagnation in the Defence budget. The first is the massive demands on the budget to fund the strategic arms acquisition process. That process is nearing its end and we can only express the hope that at least some of that funding would in future be earmarked for the Landward defence requirements of the SANDF.

The second reason is the understandable reluctance of the Minister of Finance and National Treasury to provide the SANDF with more funding seeing as though it has a very poor track record when it comes to financial management of the allocations it received in the past.

For a number of consecutive years the Department has received qualified audits and it is clear to the IFP that it is not in a position to effectively spend its allocations or to properly account for its finances in terms of the Public Finance Management Act.

It is therefore no wonder that the Minister of Finance is very reluctant to provide sufficient levels of funding to meet the strategic objectives of the Department.

Unless the Department dramatically improves its financial management and controls the Minister of Finance will not part with these funds and we can expect the overall situation in the SANDF to further deteriorate as equipment becomes obsolete, difficult and expensive to maintain and fixed assets cannot be maintained or improved.

Chairperson,

The age profile of the SANDF has for a long time been an issue of some concern. We therefore welcome the increased allocations over the next three years for increasing the intake of new recruits into the Military Skills Development System training programme.

We also support the long-term intention to increase the annual MSDS intake to about 10 000 recruits to supply the Army with a continuous stream of fresh soldier material that is young enough and healthy enough to serve their country both locally and abroad.

However, the establishment of a works regiment is also funded under this sub-programme and it does not spell out what the division of allocations will be between the MSDS and the works regiment.

In principle, the IFP supports the establishment of a works regiment, but we are somewhat concerned that it would eat too much into the MSDS funding. We need the assurance of the Minister that this will not be the case.

It is our understanding that a sum of about R100 million has been allocated to provide for a new Intelligence headquarters building, but questions remain whether tenders have been issued or awarded and when the construction will actually start.

We understand to a certain extent the need for confidentiality when it comes to Intelligence matters, but as we are also talking about the use of taxpayers' money here, it is important that the most crucial questions are answered by the Minister to reassure the public.

Chairperson,

Over the past few years, the SANDF has been dogged by revelations of poor discipline and a lack of proper command and control. Add to this large stock losses, persistent qualified audit reports, shortages of equipment and technical personnel, the breakdown of critical weapon systems and the overall picture appears rather bleak.

The SANDF is in crisis and the IFP therefore calls for the top management of the Department to be replaced by competent and skilled managers that can turn around the Department's finances and management. If they were competent, the same problems would not recur year after year and it is therefore clear that their time is up.

In many respects the SANDF is out of control. No self-respecting armed force anywhere in the world would allow the same level of poor discipline displayed by its soldiers, or the extent of mismanagement by its commanders.

The Defence Force is a national asset but if things continue going downwards as they are currently, this asset will not be deployable and will not be able to protect our country. It will also mean that the Army will not be able to play a full role in securing the 2010 Soccer World Cup finals.

On a political level, the IFP finds it very difficult to support the Defence budget vote. In real terms, the department and budget are going backwards with no obvious indication that the Minister and commanding officers are prepared to take responsibility for the problems or find solutions to improve the situation.

I thank you.

 

FOR MORE INFORMATION
Mr Velaphi Ndlovu MP 0836250803