Honourable Chairperson, Honourable Members, Respected Guests, Ladies &
Gentlemen
OVERALL STRATEGIC LEADERSHIP
In view of the Management Performance Assessment Tool (MPAT) and its 4 KPAs, I wish to address the factors contributing to the current state of affairs and the achievement of Level 2.5 (noncompliance). Is the new target of Level 3 (compliance) achievable whilst the high risks continue? The Defence and Military Veterans (DMV) APP contains many inaccurate and contradictory figures. This is a statutory document signed off by MODMV & Acting Director-General and copied to Department of Planning Monitoring and Evaluation (DPME), Department of Public Service and Administration (DPSA)
and National Treasury! Allow me then to set out for you the factors that make the Level 3 target unfathomable.
HR MANAGEMENT
First, the department has incompetent and unqualified staff who cannot do their job. No wonder the systems, memoranda, frameworks, policies, processes and procedures are lacking, including the SWOT analysis which leaves much to be desired. Of the total 169 funded posts, various reports contain differing employee figures of 116, 125 and 133. Similarly, additional staff including interns, contract posts and secondments are variously reported to be 74 or 109. Is the total staff 190 or 242? These are some huge discrepancies, and as a result the vacancy rates are therefore inaccurate.
The Skills Audit and Gap Analysis remain outstanding, at the expense of the institution and military veterans. The recruitment process is highly questionable, and the new organogram is yet to be finalised.
This is a sad reflection on the leadership and management of the department. Is it therefore strange to find the budget for contractors has increased drastically from R35 million to R58.5 million?
Other concerning increases which require the Minister’s explanation are:
- R4.973 million is allocated for Catering;
- The communications allocation has been increased from R4.816 million in 2017/18 to R10.543 million in 2018/19;
- The allocation for Infrastructure and Planning increases from R561 000 in 2017/18 to R14.779 million in 2018/19;
- Legal Services increase from R1.647 million in 2017/18 to R4.388 million in 2018/19;
- The allocation of Contractors increases dramatically from R35.290 million in 2017/18 to R58.544 million in 2018/19;
- R105 000 is budgeted for entertainment for 2018/19;
- The allocation for Consumable Supplies increases from R3.606 million in 2017/18 to R5.889 million in 2018/19; and
- The allocation for Venues and Facilities increases from R8.848 million in 2017/18 to R10.209 million in 2018/19.
By the way, can you explain why movable assets were attached by the Sheriff of Court in Pretoria last week?
GOVERNANCE AND ACCOUNTABILITY
In healthcare provision, there are recurring problems with access to, and authorisation of, medication; the military pension is non-existent; the Social Relief of Distress programme is erratic and exposed to fraud and abuse; the Business & Skills Development effort is underperforming and lacks accredited
service providers to offer training and development, including placements.
Our Service Delivery Agencies (SDAs) are a serious risk and challenge to delivery of Military Veterans’ benefits. A number of Memoranda of Understandings and Service Level Agreements are not in place
impacting directly on services and benefits.
Governance and accountability are enhanced by strong internal controls and internal audit. Yet this sub-programme’s budget has unfortunately been reduced from R10.8m to R10.1m and remains under-capacitated. This will have a direct impact on the performance of Department, and the achievement of Level 3.
STRATEGIC LEADERSHIP
A complete, verified and accurate database with integrity of processes and credible information is the basis for determining benefits. Of course, this fundamental instrument has not been finalised for the last 7 years.
The ICT platform and Integrated Benefits Management System are still incomplete, not fully functional and networked, undermining the finalisation of the database.
Registration on the Database is a prerequisite but has become a nightmare for many a military veteran. Yet, benefits continue to be issued in this unregulated environment.
The Transport Policy is key to unlocking opportunities and providing access, but it is still incomplete, impeding the military veterans who wish to pursue jobs, attend learning institutions, reach health institutions, visit their sick family, attend family and military veterans’ funerals and access DMV
Provincial Offices. In fact, only three of these offices have been established to date.
Military Veterans Benefits Regulations are not complied with in all instances. The Education Benefit is implemented without approved regulations. The draft regulations have also not been complied with. DMV supports a first undergraduate degree. However, certain dependents have received funding for post graduate and MBA studies at the expense of others.
FINANCIAL MANAGEMENT
The Education Benefit makes up 37% of DMV Budget of R622,111 and 57.4% of SES Programme 2 budget. Can you imagine that ONE benefit equals more than a third of all benefits, at the expense of the other benefits. Where is the balance?
This is considered a medium- to long-term benefit and will have a medium- to long-term effect. The main reason for this is a failure to deliver on other benefits, like the building 238 of 1000 houses. 6 of 17 targets were achieved equalling 35% compared to 94% spent on Administration/employees in the
2017/18 financial year. This is the trend.
The High Impact Communication & Marketing Strategy & Plan have not been effective as suggested. Many a military veteran remains unaware of benefits and its related regulations. Yet, there’s a target set of 100%.
Litigation against DMV poses a serious threat. The Zeal Health claim of R198 million is the biggest one and almost one third of DMV’s budget. No contingency has been put in place to mitigate this situation.
THE CASTLE OF WOES
The Castle of Good Hope is under investigation for alleged irregularities, fraud and corruption. Historical annual targets and performance indicators have been amended providing misleading information. It is not self-sustaining, but is dependent on an annual subsidy of R4.5 million from Department of Defence. Actual figures are elusive to justify the Revenue Optimization Plan which is supported by the unknown Responsible Commercialisation Study.
DA IS THE ALTERNATIVE FOR REAL CHANGE
In conclusion, the DA will treat all qualifying deserving military veterans equally. It’s time for change and new beginnings. With its values of freedom, fairness, opportunity and diversity, the DA will restore military veterans’ honour and dignity.
The DMV should submit a report to the Committee, within 30 days, on the reasons for the expected expenditure increases in 2018/19 in relation to the following:
- R4.973 million is allocated for Catering;
- Communications allocation increases from R4.816 million in 2017/18 to R10.543 million in 2018/19;
- The allocation for Infrastructure and Planning increases from R561 000 in 2017/18 to R14.779 million in 2018/19;
- Legal Services increase from R1.647 million in 2017/18 to R4.388 million in 2018/19;
- The allocation to contractors increases drastically from R35.290 million in 2017/18to R58.544 million in 2018/19;
- R105 000 is budgeted for entertainment for 2018/19;
- The allocation for Consumable Supplies increases from R3.606 million in 2017/18 to R5.889 million in 2018/19;
- The allocation for Venues and Facilities increases from R8.848 million in 2017/18 to R10.209 million in 2018/19