R26.4 billion in budget deficit risks crippling the SANDF

The Department of Defence and Military Veterans has laid bare its financial woes, detailing how its R26.4 billion budget deficit for the 2022/2023 financial year threatened to cripple SA National Defence Force’s (SANDF) key divisions.

Departmental top brass told the parliament portfolio committee on defence and military veterans that SANDF needed about R75.5 billion, but had received only R49 billion from National Treasury.

Presenting the department’s annual performance plan to committee members on Wednesday, Michael Cox said the shortfall will hit key SANDF divisions, including defence Intelligence, Military Health Support, Joint Logistic Services, as well as Maritime and Air Defence.

Shortfall could cripple defence logistics

An amount of R3.3 billion has been allocated to Joint Logistic Services while the full-cost requirement was estimated at over R4.9 billion.

Cox lamented that this shortfall of R1.6 billion would adversely impact on the ability to appropriately maintain Department of Defence facilities, provide and maintain the required stock levels, and to staff the Defence Works Formation.

He said the allocation of R1.1 billion to Defence Intelligence, instead of the required R1.3 billion will adversely impact on the ability of Defence Intelligence to acquire skilled personnel and to obtain all capabilities required for intelligence and counter intelligence operations. 

“Furthermore, the shortfall will impact on the DOD support to the national cyber initiatives and the development of the DOD cyber capability,” Cox told the committee.

Military health support has received R5.5 billion instead of the required R9 billion, with the shortfall of R3 billion set to adversely impact on the ability to employ medical personnel, replace obsolete equipment, upgrade deteriorating facilities, and renew required technology.

Cox told the committee that the budget reduction also impacted negatively on the SA Military Heath Services’ ability to meet the legal requirements for accreditation of medical personnel at health training institutions and at the South African Nursing College.

Also in serious financial trouble is the maritime defence, which has been allocated R4.6 billion, which is R2.8 billion less than the R6.5 billion the division actually needs to operate optimally.

Navy and Air Defence grounded by throttled cashflow

According to Cox, this deficit will adversely impact on the preparation and provision of combat-ready maritime defence capabilities, constraining the ability of the SA Navy to deploy naval capabilities to meet deployment requirements of the Maritime Security Strategy. 

“Owing to budget constraints, the SA Navy will not be able to up-scale the Naval Station Durban to a fully functioning operational Naval Base.  Finally, the financial allocation shortfall will have an impact on the ability of the SA Navy to honour its international hydrographic obligations,” he warned.

Air Defence has received R6.2 billion, R2.8 billion less than the R9 billion it needs for preparation and provision of combat-ready air defence capabilities, maintenance backlog, maintenance of capabilities and aviation safety within the Programme. 

Due to the budget reduction, the Air Defence Programme will have to reduce the number of learners on military development courses for the 2022/2023 financial year.

For Force Employment Programme, the department has received R3.7 billion instead of at least R5.3 million it needs to provide mission-ready forces and special operational capabilities to meet the SA Defence Review 2015 and National Government requirements.

Landward Defence has been allocated R15.5 billion but needs R26.8billion for preparation and provision of combat-ready landward capabilities and the renewal and maintenance of combat-ready operational capabilities within the SA Army in support of the Joint Force Employment Requirements.

Committee members were, however, not impressed with the department’s action plan, as it lacked details on how these challenges would be addressed.

“In each of the divisions they show a shortfall and if it is not addressed then we are in a dire situation. We are in this dire situation, we have been in this dire situation so the action plan I would have expected is how are they going to mitigate that and not in terms of if that does not happen this will be the consequence. We know what is in the budget and what has been provided, how are they going to reprioritise,” DA’s Sarel Marais asked.

• siphom@citizen.co.za