APPENDIX A: THE NATIONAL POLICY ISSUES
THE CONSTITUTION OF THE REPUBLIC OF SOUTH AFRICA
1. The Constitution requires that when organs of state contract for goods or services, they must do so in accordance with national or provincial legislation that establishes a system which is fair, equitable, transparent, competitive and cost-effective. This does not prevent the implementation of a procurement policy by organs of state providing for categories of preference in the allocation of contracts, and the protection or advancement of persons, or cateories of persons, disadvantaged by unfair discrimination. National legislation must prescribe a framework within which this policy may be implemented (Section 217).
THE WHITE PAPER ON DEFENCE
A Technologically Advanced National Defence Force
2. The White Paper on Defence, as approved by Parliament on 14 May 1996, states that the SANDF will be a balanced, modern, affordable and technologically advanced military force, capable of executing its tasks effectively and efficiently (Chapter 2: para 11.7). It further states that the government will not endanger the lives of military personnel through the provision of inadequate or inferior weapons and equipment (Chapter 3: para 43.6).
Core Defence Capability
3. The White Paper states that the SANDF has to maintain a core defence capability because of the inherent unpredictability of the future. Such a capability cannot be created from scratch should the need suddenly arise. The maintenance and development of weapons systems is a long-term endeavour (Chapter 4: para 6.2).
4. The White Paper notes that deterrence requires the existence of a defence capability which is sufficiently credible to inhibit potential aggressors. Although South Africa is not confronted by any foreseeable external military threat, this capability cannot be turned on and off "like a tap". It is therefore necessary to maintain a core defence capability (Chapter 5: para 7). A core defence capability includes a balanced and sustainable nucleus with, amongst other features, the maintenance and, where necessary, the adequate and appropriate upgrading or replacement of equipment and weaponry (Chapter 5: para 8).
5. The White Paper states that the services of an efficient defence industry are required to address the need for maintenance, upgrading and, where necessary, the replacement of weapons and equipment of the SANDF.
6. The industry will permit the cost-effective purchase of certain products and systems, ensure the life-cycle maintenance and support of such systems, and perform refurbishment and upgrades of existing equipment (Chapter 8: para 3). The defence equipment required by the SANDF, however, cannot and should not be procured exclusively from the local industry. Many complex systems cannot be produced domestically and will have to be imported. Management expertise for the specialised procurement functions is located within the DoD (Chapter 8: para 5).
Regional Co-operation
7. The White Paper recognises that the government might be called upon by neighbouring countries to play a number of supportive roles. The SANDF could, for example, provide assistance as regards the maintenance and upgrading of weaponry and equipment (Chapter 4: para 20).
Equipment for Peace Support Operations
8. The White Paper indicates that South Africa's consideration of involvement in specific peace support operations will not be limited to the possible deployment of troops. The involvement could also take the form of providing equipment, logistical support, engineering services, communications systems and medical personnel facilities (Chapter 5: para 25). The acquisition and maintenance of military equipment will take account of the particular requirements of peace support operations (Chapter 5: para 26).
Approval of Major Procurement Projects
9. The White Paper states that the approval of major weapons procurement projects is the prerogative of Parliament on an annual and long-term basis (Chapter 7: para 5).
Budgetary Forecasts
10. The White Paper requires the Defence Review to present, for the consideration of Parliament and the public, detailed and well-motivated budgetary forecasts and proposals; specific policies regarding the provisioning of logistic resources; and the identification of appropriate technology to optimise the cost-effectiveness of the core force (Chapter 7: para 6).
Foreign Procurement
11. It is stated that within budgetary constraints, the DoD will engage in co-operative ventures with its counterparts throughout the world in such fields as training and education, defence planning, exchange visits, combined exercises and procurement of arms and equipment (Chapter 4: para 6.3).
Conversion of the Defence Industry
12. The White Paper states that in circumstances of diminishing domestic defence expenditure and falling global arms sales, the industry will be encouraged to convert production capability to civilian manufacture without losing key technology capabilities needed for military production. Policies will be formulated to establish the specific and limited conditions under which the defence industry will be subsidised (Chapter 8: para 6 and 7).
Arms Exports
13. The White Paper states explicitly that the defence industry must have access to international markets in order to facilitate cost-effective performance and reduce the unit costs of producing items for the SANDF (Chapter 8: para 4). The government will support the export initiatives of the defence industry by permitting it to contract and honour obligations which have been duly approved (Chapter 8: para 11). It is vital that there be transparency in decision-making in this regard (See 1.2.11).
Arms Control
14. Chapter 8 of the White Paper deals specifically with arms control. On 30 August 1995, Cabinet approved new interim policy on arms control. Chapter 8 of the White Paper is based largely on that policy, as contained in the Cabinet Memorandum on the "Rationale and Proposed Principles Governing Conventional Arms Control" (Chapter 8: para 1).
Arms Trade Principles and Guidelines
15. The White Paper establishes a number of principles and guidelines governing conventional arms trade. In essence, these require that:
15.1 The import and export of conventional arms, and the transit of arms through South Africa, will be subject to a control process and permit system under the auspices of a cabinet committee, the National Conventional Arms Control Committee (NCACC); and will be subject to oversight by the relevant parliamentary committees (Chapter 8: para 9).
15.2 The principle of openness and transparency relating to arms trade will apply. This will be limited only by national security interests consistent with the need for confidentialty (Chapter 8: para 12).
15.3 New arms control measures are based on the principles of the United Nations Charter, international law, recognised international arms control systems, and a balance of economic, ethical, military and security considerations (Chapter 8: para 13).
15.4 South Africa will promote and exercise due restraint in the transfer of conventional arms and related technologies by taking into account factors such as respect for human rights, the international security situation, and the degree to which arms sales are supportive of South Africa's national and foreign interests (Chapter 8: para 15).
15.5 South Africa will avoid transfers and trade which would be likely to be used for purposes other than the legitimate defence and security needs of the recipient country (Chapter 8: para 17).
Arms Control Processes and Structures
16. The White Paper established certain arms control processes and structures. Conventional armaments and related technology may not be imported, transferred through South Africa, or marketed or exported abroad without a duly approved permit. The applications will be subject to a multi-departmental review process. The newly-established NCACC will serve as the ministerial control, policy and decision-making authority. An independent Inspectorate will be established to ensure that all levels of the process are subject to scrutiny and oversight (Chapter 8: para 18-27).
International Arms Control Regimesand Treaties
17. As regards international arms control regimes and treaties, the White Paper states that South Africa is committed to the international cause of non-proliferation of weapons of mass destruction (i.e. nuclear, biological and chemical weapons and related technology, as well as advanced missile systems and missiles as defined by the Missile Technology Control Regime) (Chapter 8: para 28-38).
WHITE PAPER ON SCIENCE AND TECHNOLOGY
The Defence Industry
18. The White Paper on Science and Technology deals with defence research. It notes that although our industries are spending financial resources on Research and Development (R&D), our balance of trade in medium and high technologies remains negative (Section 8.2.5). A notable exception is the armaments industry, which currently has a positive annual balance of trade.
Technologically Advanced Core Force
19. The White Paper on Science and Technology states that the essence of the new strategyof the SANDF is to convert the current force into a small, but technologically more capable one. The reliance on quality intelligence will be high to allow for the timeous scaling-up of the force to meet potential threats, as will be dependence on a broad technology base.
20. Insurance against threats will take the form of maintaining small, but sophisticated forces which can be mobilised quickly and which rely on technology to increase the flexibility and responsiveness of a smaller military establishment.
Defence Technology Base
21. The White Paper on Science and Technology notes that the maintenance of a strong technology base is therefore a prerequisite of the new SANDF strategy and must serve a number of purposes, namely:
21.1 Maintaining the capability to detect threats.
21.2 Being aware of trends in military technology and their implications for the SANDF.
21.3 Being capable of producing technology demonstrators that can rapidly be turned into military technology if necessary.
21.4 Being capable of providing expert advice for procurement purposes.
21.5 Providing test and evaluation services.
21.6 Supporting upgrade and maintenance activities.
22. The White Paper on Science and Technology states that the future of the South African defence industry cannot be seen as distinct from that of its civilian manufacturing counterpart and that dual concepts should be understood and applied. The view that defence technology should be phased out in favour of civilian technology, or converted into it, is not tenable. Instead, the defence industry must make special efforts to leverage spin-offs in the civilian sector and to develop relationships with civilian institutions in the National Science Initiative (NSI) to promote spin-on's.
23. The White Paper on Science and Technology states that the Department of Defence, Department of Arts, Culture, Science and Technology, and the Department of Trade and Industry should co-operate closely to develop a strategy for optimal promotion of the local defence industry.
24. The Defence Research and Development Board budget should be displayed in the government SET (Science, Engineering and Technology) budget, as well as in the Department of Defence budget. This would give government and the public the opportunity to evaluate the entire SET expenditure programme in an unfragmented way.
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