Dear Editor
The Democratic Alliance (DA) is alarmed by what’s coming out of Armscor and Denel. Both entities are pushing ahead with grand defence plans while ignoring the law, the budget, and basic accountability.
Presentations were scheduled in the Portfolio Committee yesterday, where Armscor proceeded with its briefing, while Denel was sent packing after arriving without a corporate plan that should have been signed off months ago by the Minister, as required under the Public Finance Management Act (PFMA) and Treasury regulations.
Armscor’s latest Corporate Plan leans heavily on a so-called “Journey to Greatness”, a clandestine strategy apparently inspired by the President’s call for more defence spending and a target of 1.5% of GDP. But this so-called vision has never been formally approved by Cabinet or submitted to Parliament.
There is no official policy backing, no Treasury commitment, and no guaranteed budget to support it. It is not binding. It is wishful thinking dressed up as strategy.
We’ve seen this before. The 2015 Defence Review also promised big results, but was based on funding that never arrived. That plan ultimately collapsed and South Africa’s defence capability has been sliding downwards ever since.
It’s now happening all over again. Defence officials and state-owned entities are building plans on budget assumptions that simply don’t exist. That’s not planning, it’s gambling. South Africa doesn’t need another high-level strategy with no money behind it. What we need is funding certainty first, followed by a revised and realistic plan that fits within the country’s actual fiscal space.
The current reality is bleak. Defence contracts haven’t been properly funded for years. Our submarines and frigates are inactive and years behind with crucial refits, aircraft fleets are shrinking, and basic maintenance is being delayed or cancelled. Armscor only has the budget to deal with maintenance on a reactive basis, which means aircraft availability isn’t guaranteed and costs keep climbing.
To restore key platforms like the Rooivalk and Gripen jets to operational service, the South African Air Force needs at least R8 billion. The refit of submarines and frigates requires approximately R700 million each. But there is no sign of that money being secured or prioritised.
Meanwhile, Denel’s conduct is just as unacceptable. Instead of providing a legally compliant plan, Denel has been relying on vague internal presentations to outline its trajectory. The Minister of Defence, Minister Angie Motshekga, when questioned, seemed unaware that no signed corporate plan had been submitted, a shocking revelation of just how detached oversight has become.
On top of this, Denel has not tabled a single annual report in the past five years. Despite this, it has publicly claimed to have made a profit in the last financial year, but with no audited financial statements to back it up. Over the past several years, Denel has received more than R10 billion in bailouts and another R1.2 billion in Treasury guarantees for this financial year all without proper public reporting, parliamentary oversight or any meaningful transparency.
This is a complete failure of governance and accountability, both in terms of strategic planning and basic legal compliance.
The DA will now submit parliamentary questions to get clarity on whether Cabinet has approved the “Journey to Greatness” strategy, whether National Treasury has signed off on any plan to increase defence spending to 1.5% of GDP over time, and what the actual compliance status is regarding Denel’s corporate plan and financial reporting.
South Africa’s defence sector cannot be rebuilt on fantasy and secrecy. What we need is a credible plan based on real numbers, proper oversight from the Minister, and accountability at every step.
The days of hollow strategies and silent bailouts must end.
Regards
Chris Hattingh MP
DA Spokesperson on Defence & Military Veterans
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