The South African National Defence Force (SANDF) has been tasked with reducing its compensation of employees (COE) bill in order to bring its budget down, but this means the Force is struggling to meet its commitments and rejuvenate its ranks.
The Department of Defence’s Chief Human Resource – Lieutenant General Malungisa Sitshongaye – briefed the Portfolio Committee on Defence and Military Veterans (PCDMV) this week on plans for force rejuvenation, implementation of previous parliamentary recommendations on rejuvenation and measures to bring COE expenditure under control.
To cut its coat according to its cloth, the SANDF has been exiting personnel for a number of years through the Mobility Exit Mechanism (MEM), which ‘separated’ 2 527 uniform members at a cost of R3.6 billion over the 2022/23 and 2023/24 financial years, of which R1.8 billion was funded by National Treasury.
The SANDF recommends that the Mobility Exit Mechanism be appropriately funded at an estimated cost of R1.4 billion over the three-year Medium Term Expenditure Framework (MTEF). An adequate reskilling programme would also be needed to ensure members that separate acquire new skills to facilitate smooth transition to civilian life and the open labour market.
“The entire rejuvenation process/human resource capacity building is projected at an additional COE cost of R18 billion over the MTEF – therefore it is strongly recommended that the Department of Defence be fully funded for this initiative,” Sitshongaye stated in his presentation, suggesting a gradual average increase of R6 billion per financial year on the COE budget.
Sitshongaye noted that while the SANDF is contractually bound by law to pay the full complement of Human Resources, the salary bill is continuously allocated less than the strength of the SANDF. Overspending on COE means the Department of Defence recorded R10.1 billion in irregular expenditure over the last five years.
Various efforts are being made to reduce the COE bill, including lowering the number of Military Skills Development System intakes, deactivating vacant posts, and implementing exit strategies. Other measures include keeping personnel strength to below 73 000 (SANDF uniform force strength is 59 264 as of 30 September 2024); reducing reserve force mandays; recruiting Military Skills Development System recruits every alternate calendar year; and re-activating the implementation of exit strategies (MEM and Employee Initiated Severance Package).
These efforts have resulted in “insufficient HR capacity” but reduced the COE budget shortfall from R3.4 billion in 2024/25 to R1.3 billion for that financial year.
Further reducing personnel numbers and costs would compromise obligations towards the SANDF’s constitutional mandate, result in the SANDF not complying with the public sector wage agreement, and limit deployments for unplanned military operations, Sitshongaye told the PCDMV.
“HR interventions thus did not contribute significantly in addressing HR cost pressure, as envisaged. A permanent solution can hardly be found outside the involvement of the country’s appropriation authority (National Treasury),” Sitshongaye warned and suggested a reconsideration of the imposed COE ceiling.
In conclusion, Sitshongaye said measures to control COE expenditure while retaining military capacity requires interventions outside the Department of Defence.
