{"id":788344,"date":"2024-08-27T10:32:35","date_gmt":"2024-08-27T08:32:35","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=788344"},"modified":"2024-08-27T10:35:46","modified_gmt":"2024-08-27T08:35:46","slug":"r1-5-billion-headache-for-south-africas-army","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/government\/788344\/r1-5-billion-headache-for-south-africas-army\/","title":{"rendered":"R1.5 billion headache for South Africa’s army"},"content":{"rendered":"\n

The South African National Defence Force (SANDF) is facing over R1.5 billion in contingent liabilities\u2014a liability the entity may have to pay depending on the outcome of a future event, such as a court case.<\/p>\n\n\n\n

This was outlined in a recent Parliamentary response by Defence and Military Veterans Minister Angie Motshekga to a question posed to her by Economic Freedom Fighters (EFF) MP, Vuyani Pambo.<\/p>\n\n\n\n

According to the response, the contingent liabilities arise from various civil claims and mobile asset accidents, the majority of which stem from HR and labour-related claims.<\/p>\n\n\n\n

As of 30 June 2024, the total number of contingent liabilities were:<\/p>\n\n\n\n

Type of claim<\/strong><\/td>Amount<\/strong><\/td><\/tr>
HR and labour related claims<\/td>R419 million<\/td><\/tr>
Unlawful assault, arrest, detention and prosecution<\/td>R376 million<\/td><\/tr>
Damages, explosions and fire<\/td>R196 million<\/td><\/tr>
Underpaid and unpaid invoices for services rendered<\/td>R173 million<\/td><\/tr>
Medical negligence<\/td>R157 million<\/td><\/tr>
Breach, cancellation and termination of contracts and services<\/td>R147 million<\/td><\/tr>
Shooting during exercise and operation<\/td>R48 million<\/td><\/tr>
Personal injuries<\/td>R18 million<\/td><\/tr>
Mobile assets accidents<\/td>R13 million<\/td><\/tr>
Loss of support due to collision of vehicles and helicopters<\/td>R5 million<\/td><\/tr>
Total<\/strong><\/td>R1.55 billion<\/strong><\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n\n

This R1.55 billion in claims against the department is up from the R780.5 million recorded in the 2014\/15 financial year<\/a>.<\/p>\n\n\n\n

It is important to note, however, that this contingent liability amount \u201cdoes not necessarily reflect the amounts to which claimants are legally entitled, nor the amounts that are ultimately paid,\u201d the government has previously said.<\/p>\n\n\n\n

\u201cDepending on the nature of a claim, the average amount of compensation granted is only a small fraction of the amount claimed,\u201d it added.<\/p>\n\n\n\n

Although the payouts are expected to be lower than the listed amount, payments in this regard could strain an already stressed military budget.<\/p>\n\n\n\n

In July 2024, Motshekga outlined the Department of Defence’s R51.8 billion budget \u2013 down from the adjusted R52.4 billion in 2023\/24.<\/p>\n\n\n\n

Of this total budget, R2.6 billion is budgeted for obligations to Department of Public Works and Infrastructure for lease payments, assessment rates, refurbishment, maintenance and repairs and municipal services. Additionally, R1.4 billion to Armscor.<\/p>\n\n\n\n

For 2025\/26, the defence budget rises to R53.7 billion and for 2026\/27 it increases to R56.2 billion, but considering inflation is over 5%, this represents a decline in real terms.<\/p>\n\n\n\n

Defence expert Dean Wingrin told Defence Web<\/a> that this budget is a \u201cdisaster for the SANDF and its abilities to carry out its missions.\u201d<\/p>\n\n\n\n

Wingrin said that defence spending is now about .7% of GDP, versus the international norm of 2% of GDP, putting strain on an overstretched SANDF that is carrying out deployments in the Democratic Republic of Congo, Mozambique, internally and on South Africa\u2019s borders.<\/p>\n\n\n\n

\u201cI know South Africa is facing critical social issues, but then don\u2019t deploy troops into harm\u2019s way. Either support them or withdraw them,\u201d Wingrin said of the SANDF\u2019s external deployments.<\/p>\n\n\n\n

While the R1.55 billion in claims against the department has increased over the past several years, this is not unique to the SANDF; other essential governmental departments have also been grappling with ballooning claims against them.<\/p>\n\n\n\n

As an example, recklessness, negligence, and misconduct cases could cost the South African Police Service (SAPS) over R65.3 billion.<\/p>\n\n\n\n

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R65 billion kick in the teeth for police in South Africa<\/a><\/blockquote>