logo
Tensions rise as SANDF criticises National Treasury over military funding

Tensions rise as SANDF criticises National Treasury over military funding

IOL News5 days ago
The Chief of the SA Navy, Vice-Admiral Monde Lobese, highlighted the acquisition of three submarines from Germany, lamenting that 80% of the funds were used just for procurement, leaving a mere 20% for necessary spare parts over their estimated 30-year lifespan.
Banele Ginidza
The National Treasury has fired back that the South African National Defence Force (SANDF), saying that it has allocated an additional R10 billion to its R57.2bn budget in the 2025/26 financial year.
This comes after Navy Admiral Monde Lobese launched a scathing attack against the Treasury last week, accusing it of sabotaging the operational capacity of the SANDF through inadequate budget allocations.
Lobese's appearance before the Joint Standing on Defence on Friday was initially intended to address ongoing disputes between the SANDF and Amscor related to constrained procurement processes.
However, it quickly evolved into a broader critique of the Treasury's budgeting practices, which he claims have long stifled the SANDF's ability to fulfil its mandate.
"National Treasury can't be allowed to be a super-department or a government on its own over and above the current government. We cannot afford to compromise the security of citizens by defunding the SANDF because of what the National Treasury is actually doing," Lobese charged.
"Our maritime borders are porous because of the lack of capabilities not because of the lack of will from myself and my team and Navy, or the lack of skills to defend our maritime resources and the economy of this country, but it is due to the failure by National Treasury and the government to adequately resource the SANDF to the required level."
Lobese pointed towards a historical trend of lean budget allocations, noting that since the year 2000, the Navy's resources have been severely limited. He highlighted the acquisition of three submarines from Germany, lamenting that 80% of the funds were used just for procurement, leaving a mere 20% for necessary spare parts over their estimated 30-year lifespan.
Apparently, the submarines have only been used in the voyage from the manufacturer to the dockyard.
"We can't run operations through procurement. It's like buying a loaf of bread and eating it on that specific day. The SANDF, specifically the Navy, must have fully stocked depots so that we are able to prepare and provide combat ready and maritime force at any given time that Parliament gives the task to the SANDF," he said.
"We should make sure on-board spares and other commodities are also ready and available when conducting operations to guarantee on-time maintenace and upkeep of schedules and plans are achieved, not what we are experiencing as SANDF and the Navy. The absence of spares affects our ability to meet maintenance and schedules as pre-determined by Original Equipment Manufacturers."
However, the National Treasury responded swiftly to Lobese's assertions, emphasising its role in facilitating a balanced budgeting process that aligns with broader national fiscal goals.
Treasury said Lobese's comments were concerning as it was responsible for the planning process that resulted in a Cabinet decision reflecting trade-offs between various policy priorities.
Treasury said the final approval was by Parliament, and [Treasury] was then entrusted to ensure the implementation of Parliament's decisions.
"It is therefore incorrect to suggest that the National Treasury is responsible for any budget challenges experienced by the SANDF," it said.
"Furthermore, the 2025/26 proposed allocation of R57.2bn in the Appropriation Bill is informed by the government's broader fiscal strategy, which aims to stabilise public finances, reduce debt-service costs, and create space to invest in critical infrastructure and frontline services in support of higher growth."
Treasury said within this constrained fiscal environment, the Department of Defence has been allocated an additional R4.3bn over the 2025 Medium Term Expenditure Framework (MTEF) to support priority needs—most notably, the orderly and safe withdrawal of troops and mission equipment from the Democratic Republic of Congo, alongside other essential operational requirements.
It said in addition, the 2025 MTEF fiscal framework contains R5.5bn for early retirement in 2025/26 and 2026/27, most of which will be used by the SANDF to realign their personnel structure with their compensation budget, which is currently unsustainable.
"Internal resource allocation in the Department of Defence is the responsibility of the Accounting Officer and if a particular division believes they are underfunded, it is a matter that should be addressed internally," Treasury said.
BUSINESS REPORT
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Why Parliament's buildings were uninsured during the devastating fire
Why Parliament's buildings were uninsured during the devastating fire

IOL News

time18 hours ago

  • IOL News

Why Parliament's buildings were uninsured during the devastating fire

The restoration and rebuilding work is set to be completed in November 2026 for the New Assembly building and the following month in the Old Assembly just in time for the State of the Nation Address in 2027. Image: Phando Jikelo / Independent Newspapers The buildings of Parliament were not insured when they were gutted by fire three years ago, Secretary to Parliament Xolile George said on Friday. 'The State does not insure immovable property to a large extent as we know, including movable property. There is no insurance. It covers that by placing funds to rebuild whenever there are issues or replaces those assets,' he said. George was responding to questions from MPs when implementing agent, the Development Bank of Southern Africa (DBSA) and Parliament briefed the Joint Standing Committee of Financial Management of Parliament on the rebuilding and restoration work. George also said the National Treasury had issued an instruction note in 2007 that clearly stated departments not to insure immovable properties. 'These buildings were not insured at the time of the fire. The replacement is done as per appropriation from the national fiscus to rebuild. We may not know the reasons for that, given the large scale of the portfolio of the state. It might have been informed by these considerations. I don't know,' he added. During the meeting, MPs heard that at least R574 million has been spent to date on rebuilding the buildings gutted by fire in January 2022. DBSA group executive for infrastructure delivery, Chuene Ramphele, said the cost of restoring and rebuilding the gutted buildings was R4.4 billion. 'We have already spent R574 million. These are reconciled by the National Treasury and Parliament,' Ramphele said. He told the MPs that the work done at the precinct had entailed five work streams that included enabling a work safe access route, MPs' offices, rubble removal, asset recovery, and spatial planning and designs, among other things. Ramphele also said the gutted buildings were a crime scene after the devastating fire until 2023. 'It was under police watch. That was lifted in February 2023. Technically, work started in March 2023,' he said. However, Ramphele said there was much significant work completed at that particular time. He said some of the achievements were the demolition work which came to the tune of R73m. The designs were completed in November 2023 and presented to the multi-party forum and chief whips in January 2024. The heritage application process, started in November 2023 in consultation with the South African Heritage Resource Agency, was approved in December 2024 following an intensive consultative process. Ramphele also said the construction and restoration have started after construction companies were appointed following the issuing of a work permit for construction by the Department of Employment and Labour. He said work was happening underground. 'You may not see things really happening. You see cranes. We started the kind of work happening in the basement,' he said. The presentation made to the committee showed that work in the New Assembly and Old Assembly would be completed in November 2026 and January 2027, respectively, just in time for the State of the Nation Address. Ramphele said they projected to commission, test, and hand over the New Assembly in November 2026. 'At that time, the building will be practically complete at 95%. It can really be used.' He stated that the building can be used around January 2027. Ramphele also said the Old Assembly will be commissioned, tested, and handed over in January 2027. He said they were monitoring the timelines closely. 'We really work hard with contractors, consultants, Parliament, and everyone involved to make sure these milestones are achieved and get these buildings completed,' Ramphele said. George echoed the sentiments of MPs that issues of weather could not be used as an excuse for not completing the project unless something unreasonable happened. However, George said a stream of ground was found under the Old Assembly buildings. 'It is known that the stream has always existed. I think the engineers, like any other, would find answers so that it does not materially impact the progress per set timelines. We will be watching that also to ensure the project is completed as planned,' he said. [email protected]

SA sees ‘dramatic' increase in munition exports in last three months — here is where they went
SA sees ‘dramatic' increase in munition exports in last three months — here is where they went

The Citizen

timea day ago

  • The Citizen

SA sees ‘dramatic' increase in munition exports in last three months — here is where they went

The committee approved 283 export permits for munitions, valued at just under R5 billion. The South African defence industry continues to grow along with the demand for products produced in the country. On Friday, the National Conventional Arms Control Committee (NCACC) briefed the Joint Standing Committee on Defence on the 2025 first and second quarter reports. The current committee, headed by Minister in the Presidency, Khumbudzo Ntshavheni, was appointed by President Cyril Ramaphosa in October last year. The committee, comprising 11 ministers and deputy ministers, will serve a five-year term. According to Deputy Minister of Justice and Constitutional Development and NCACC Deputy Chairperson Andries Nel, the committee has held nine meetings since then. It has issued 129 registration permits, nine marketing permits, and 138 contracting permits, valued at R33 billion. Munition permits The committee has issued 461 conventional munition export permits, valued at R5.8 billion, and 149 permits for the export of dual-use items, valued at R466 million. 'The committee is fully functional and seized with discharging its duties in terms of the Conventional Arms Control Act. This does not mean there are no challenges. The committee is attempting to address these challenges through developing a standard operating procedure to guide its work and modernising and digitising the processing of applications,' said Nel. ALSO READ: Reserve Force members allegedly defraud cash-strapped SANDF of R1.1 million Between January 2025 and June 2025, the committee approved 90 registration certificates and one marketing [the promotion of conventional arms and any negotiation of a tender, advertising, shows, exhibitions or giving of information relating to conventional arms]. It approved 85 contracting permits valued at R17.2 billion. The committee approved 283 export permits for munitions, valued at just under R5 billion. According to Nel, 79 permits for the export of dual-use items [products, technology, services and other goods which, besides their normal use and application for civilian purposes, can also be used for the furtherance of general military capability] were approved, valued at R287 million. Nel said 165 import permits were approved, valued at R156 million. 'The committee's work is accelerating. During the second quarter, 56 companies were registered, compared to 34 during the first quarter,' he said. 'The value of contracting permits approved was R9.3 billion during the second quarter. This is compared to R7.9 billion during the first quarter. ALSO READ: Motshekga dismisses allegations of 'rampant ill-discipline' in SANDF 'The most dramatic increase was the export of munitions. During the second quarter, this stood at R4.9 billion compared to R907 million during the first quarter.' Exports of arms The industry continues to export arms to different regions, with Europe being the biggest importer of South African-produced munitions. Between January 2025 and March 2025, Europe imported the biggest share of South African-produced munitions, at 59%. This was followed by the Middle East at 30% and Australasia at 11%. ALSO READ: Why South Africa can't defend itself anymore During the same period, the Americas were the largest importers of South African-produced dual-use goods and technologies, accounting for 65%. This was followed by the Middle East at 15%, Europe at 14% and Africa at 5%. Between April 2025 and June 2025, Europe remained the largest importer of munitions, accounting for 52%. This was followed by Africa, which recorded the highest increase, at 35%, from 1% in the previous quarter, and the Americas at 7%. The largest importer of dual-use goods and technologies during this quarter was Africa, accounting for 54%. This was followed by the Americas, with 36%, and the Middle East, with 6%. 'The industry we are regulating makes a considerable contribution to economic growth, development, and the retention of skills and innovation,' said Nel. READ NEXT: SA's military proves resilience despite the odds

South Africa secures $474m AfDB loan for Just Energy Transition
South Africa secures $474m AfDB loan for Just Energy Transition

The Citizen

timea day ago

  • The Citizen

South Africa secures $474m AfDB loan for Just Energy Transition

South Africa and the African Development Bank (AfDB) have signed a US$474.6m (approximately R8.6b) loan agreement aimed at supporting the implementation of the Just Energy Transition. The loan agreement with the AfDB follows the first policy loan concluded in 2023 to support South Africa's Just Energy Transition. 'This new agreement highlights the importance of South Africa's partnership with the AfDB in advancing South Africa's development agenda. It strengthens efforts to improve energy security measures, accelerate the decarbonisation of the economy, and enhance the socio-economic benefits of the energy transition, enabling inclusive economic growth and fostering job creation,' National Treasury said yesterday. This loan is part of the third Development Policy Operation, which includes participation from the World Bank, KFW Development Bank, Japan International Cooperation Agency, and the Organisation of the Petroleum Exporting Countries Fund for International Development (OPEC Fund), to support structural reforms to enhance the efficiency, resilience and sustainability of the country's infrastructure services. It offers favourable concessional financial terms at a nominal value of US$474.6m, with a maturity of 15 years and a three-year grace period at an interest rate of a daily Secured Overnight Financing Rate plus 1.22%. 'The National Treasury wishes to express its appreciation to the AfDB for its continued partnership and support of South Africa's development objectives. 'This includes efforts to implement critical reforms in the energy and transport sectors, while also advancing the country's Just Energy Transition goals and meeting foreign currency commitments at lower interest rates.' Read original story on

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store