R Kasrils: Intelligence Services Dept Budget Vote 2007/08

25 May 2007

Emulating the Skills of the African Spies of Yesteryear
Chairperson
Honourable members

Introduction

Since time immemorial leaders have depended on the skills of those entrusted
with intelligence gathering to alert them of threats to their security. This
became an integral part of statecraft centuries ago. Today is Africa Day and it
is appropriate that we turn to our own history.

One such example is depicted on your invitation to this debate, portraying
the amaXhosa reconnaissance scouts iintlola of the Eastern Cape frontier, which
was drawn by a British officer who, after encountering these skilled spies,
wrote: "The cunning manner in which he contrives to gain knowledge of our
movements, is worthy of note. Should a patrol set out on any duty from
headquarters information is immediately conveyed by means of mounted spies to
the threatened quarter, however great we may fancy the secrecy employed on our
part."

Whilst the battlefield has changed, we need our intelligence services as
ever to emulate the skills of the iintlola, the amakhangela and the Boer
Commando scouts of yesteryear. And while much remains to be done, my address
will be directed to reporting on our progress to do precisely that and the
steps we intend taking to meet the challenges ahead.

Core business focus

Foremost are the advances made in our programme to strengthen the
professional capacity of our intelligence services for the 21st century.
Members will recall that in 2004, we pledged to boost our performance by
concentrating our resources and activities on our core business, reflected in
the main pillars of the intelligence cycle, what we termed our 'Holy Trinity'
through the collection of quality information; its sophisticated analysis and
assessment and its timely presentation.

Ten priorities

Flowing from this we identified ten key priorities on which the success of
our programme could be judged. While time does not allow me to interrogate each
in detail, let me share some highlights, which demonstrate that we are
recording measurable progress, giving value for money and are determined to
make a difference:

1. We pledged to optimise the use of our resources by ensuring that
sufficient funds are allocated to core business through adjustments to our
personnel, operational and capital expenditure ratio's:

Our primary concern was that in 2004, the National Intelligence Agency (NIA)
and all the spending centres, apart from the South African Secret Service
(Sass), had a salary bill of over 70 percent, which was rising towards
consuming the entire annual budget allocation at the expense of operations and
capital investment. Urgent intervention was required and I am delighted to
report that this figure has now been decreased to 61 percent, with expenditure
on our all important operations budget consequently able to rise from 24
percent to 28 percent and capital investment from two percent to 10
percent.

Whilst Sass did not face the same acute problems in respect of their salary
bill, they have also undertaken a process of adjustment. Personnel expenditure
and capital investment are firmly within identified thresholds, with
operational spending able to improve from 15% in 2005 to 22% in 2006. By
anyone's reckoning remarkable progress has been achieved. These figures speak
for themselves and constitute measurable areas of achievement.

2. We pledged to ensure the targeted recruitment, training and strategic
placement of members:

Our recruitment has been geared to filling priority vacancies, which are
crucial to our core business. New recruits are undergoing stricter assessment
and improved formative training prior to deployment.

We identify skills requirements more thoroughly and have been evaluating
serving officers to ascertain whether they are really fit for the demands. As a
result, some members have been redeployed, whilst others are undergoing
extensive training where necessary.

3. We pledged to improve our operational capacity in the provinces and
abroad:

Over the past year, NIA has improved operational capacity in the provinces,
which we said we would do, through shifting resources, for example, to
strengthen our provincial surveillance and border intelligence capabilities
amongst other tasks. Similarly, Sass has improved operational capacity abroad,
through directing the gains associated with the rise in operational expenditure
to, for instance, enhancing their technical capabilities in safeguarding our
overseas missions.

4. We pledged to deepen synergy with regard to intelligence sharing and
co-ordination between all services, including crime, defence and finance:

Under certain circumstances there is a need to move from a 'need to know' to
a 'need to share' approach where appropriate. The National Intelligence
Co-ordinating Committee (NICOC) has formed interdepartmental project teams,
which have made a great difference. Organised around our most pressing
intelligence priorities, they incorporate representatives from a range of
departments including foreign affairs, crime, defence and finance, enabling us
to draw on the best information available across government.

5. We pledged to enhance NICOC's analytical skills, national intelligence
estimates and the National Early Warning Centre:

NICOC embarked on a drive to build our analytical capacity by fostering
relationships with civil society experts; establishing an association bringing
together analysts from across the services to share best practice; and
head-hunting additional specialists. These initiatives, in tandem with our
project teams, have contributed to an improved National Intelligence Estimate
and a growth in the range and number of products. These rose from 38 in 2005 to
271 last year for NICOC alone.

South Africa's National Early Warning Centre, housed at NICOC, received a
major upgrade, providing a technically advanced facility for early warning
indications of conflict, interfacing with the early warning systems of the
Southern African Development Community (SADC) and the continent, so as to
ensure far greater reach, capacity and foresight.

6. We pledged to develop intelligence co-operation in Africa and with our
international partners:

Sass has been at the forefront of intelligence co-operation in Africa. We
have a firm footprint across the continent and relationships with over 60
services internationally. Apart from sharing intelligence on matters of mutual
concern, we embarked on a programme providing technical equipment, expertise
and training to assist the services of certain states emerging from conflict
situations.

7. We pledged to implement the Minimum Information Security Standards (MISS)
within all government departments:

The appointments of Security Managers in government departments, which have
been trained and supported by NIA, are essential to implementing security
guidelines such as MISS. As a result, there has been a marked rise in the
number of departments with improved MISS implementation from 53% in 2004 to 80%
in 2007. Its guidelines will be updated to deal with the latest electronic
intrusion technologies.

8. We pledged to strengthen security at our borders and ports of entry:

We continue to play a valuable role in support of a number of
interdepartmental committees that have been established to ensure a more
co-ordinated approach to border security. Those upgrades, together with the
threat risk assessments undertaken by NIA at our major airports, borders and
ports of entry are indicative of progress.

9. We pledged to look at the projected development and costing of the South
African National Academy for Intelligence (Sanai), its syllabus, training
commitments and future:

Much sweat and effort has been expended to place Sanai, as a fledgling
institution, on a stronger footing, ranging from interventions to improve its
syllabus, trainers, management and infrastructure. I do not want to pretend
this is easy but we are seeing light at the end of the tunnel.

10. We pledged to make comprehensive improvements in our vetting
capacity:

Vetting investigation turnaround times have improved, where a top secret
security clearance now takes 49 days to complete compared to 60. A confidential
clearance takes 14 days instead of 30. This has led to an overall growth in the
number of clearances issued annually, which have nearly doubled since 2004.
Most noteworthy has been Cabinet’s endorsement of our new vetting strategy that
will build capacity within all government departments. Detailed reports of
progress regarding the ten priorities are available.

Quality products and operational breakthroughs

The quality of our products has improved and was commended by the President
in his address on Intelligence Services Day last year. We have seen significant
operational breakthroughs ranging from the disruption of trans-national
smuggling and money laundering syndicates; to foiling a plot directed at
destabilising a neighbouring country; to exposing individuals engaged in
espionage; to the provision of early warning insight into the plans of
belligerents. "Success breeds success."

Chairperson, Honourable Members

Just as success breeds success, in the year ahead we will build on our gains
by sharpening our core business focus and intensifying the implementation of
our plans to improve our professional capacity.

Adherence to the Constitution, the rule of law and democratic norms

We will not limit this to securing heightened technical competence and
tradecraft. We are enhancing an awareness of the necessity for legality and
propriety, ensuring that our activities do not undermine the very democracy
which we have sworn to protect. We are ensuring that all officers clearly
understand that they serve professionally at the behest of our people and as
such the powers they command must always be used responsibly. We aim to
strengthen an institutional culture that promotes adherence to the
Constitution, the rule of law and democratic norms. We serve the government of
the day and will not bend the rules, for who will then decide how far the bend
will go?

Civic Education Programme

Creating this professional ethos involves the Civic Education Programme we
launched recently. A curriculum has been developed and Sanai, together with the
service heads, is responsible for piloting the programme. This will be
supported by a series of public debates, engaging with academics, media
specialists and civil society on the role of intelligence in a democracy.

Strengthening compliance

We have strengthened the regulatory mechanisms to ensure compliance with the
constitutional and legal framework. Much work has been undertaken to address
deficiencies in our policies and to enforce stricter control, authorisation,
monitoring and oversight of our operations. We will provide legislative
expression to internal measures that have been introduced.

Ministerial review commission

The vigour of this approach will be tested and augmented by the
recommendations of the Ministerial Review Commission, chaired by Mr Joe
Matthews, which was launched last year. The Commission's brief, as Members
know, is to review our legislation, regulations, operational policies and
mandate including the 'political intelligence' mandate in order to advise
whether there is a need to revise the existing framework.

The Commission is working diligently and the recommendations contained in
their final report which may be completed by the end of 2007, will also have
engaged public comment. I want to encourage intelligence officers, both past
and presently serving, to feel free to contact the Commission to make
submissions.

Openness and secrecy

The common thread binding these initiatives is our belief that certain
matters of intelligence policy must be subject to informed public debate. There
is no room in the services of a healthy democracy, such as ours, for warped or
inappropriate notions of secrecy. If tolerated, these become counter-productive
and harmful to the intelligence practitioners themselves. We have an obligation
to place a high premium on greater accountability, which is why during this
year we intend introducing legislation setting out a process for the
declassification of information, which the current Protection of Information
Act makes no provision for.

Indeed, we must allow for access to certain information in the interests of
national security. We must make it clear, however, that there are instances
where we are required to jealously protect information in the very interests of
national security. These instances are clearly set out in law; they relate to
safeguarding the identities of agents and sources and details of operations,
the effectiveness of which depends on the secrecy that we must maintain.

Therefore the fuss about our recent application to the Constitutional Court
for the continued protection of certain documents from public disclosure in the
Masetlha appeal is very difficult to fathom. These documents amount to a small
fraction of the court record and have legitimately been withheld precisely
because they contain those details that we are legally prohibited from
disclosing. Our actions contrary to the distorted headline's proclaiming that
we are 'above the law' were in keeping with our responsibilities in terms of
the law. We abide by transparency in the public interest but will rigorously
apply the rules of secrecy where appropriate. After all if we do not operate
according to the necessary rules of secrecy and security we would be no more
than a glorified information and research bureau!

National, continental and international intelligence priorities

Chairperson and Honourable Members,

In today's world we cannot lose focus. Our offensive and defensive
capabilities must continue to be mobilised towards securing real and secret
intelligence in those areas of gravest risk to the successful fulfilment of our
government's programme to build a more secure country, continent and world.

A more secure country

We are fortunate to report that there are no indications of any serious
threat to our constitutional order; but remain vigilant to any potential
dangers arising from espionage or subversive activities. We will improve our
capacity to reinforce the police in countering organised crime of whatever
nature. We will continue to ensure that all events hosted by our country are
properly secured and incident free and can confidently guarantee this for the
2010 Soccer World Cup.
Terrorism

We also remain alert to averting the possibility of a terrorist attack or
the use of our territory by subversive elements from whatever quarter. While we
are neither a primary target nor a safe haven, we cannot afford to be
complacent, as no country is immune from this threat. We do not condone the
indiscriminate use of violence against civilians, whether by state or non-state
terror. Nor can we be accused of being 'soft' on terror, as our record in
respect of the containment of such activities demonstrates.

We do, however, believe that the 'terror' label should not be
indiscriminately or incorrectly applied, as this becomes a hindrance to genuine
investigations. This has unfortunately become all too commonplace in the global
environment. We also maintain that terrorism can only be purposely dealt with
by going beyond its manifestations to paying concerted attention to its root
causes. And we are concerned that the so-called 'global war on terror' has
opened a Pandora's Box. It has fuelled a host of unforeseen and unintended
consequences, human tragedies, extreme reactions, deep grievances and veers on
a dangerous phobia about Islam; one of the world's most respected and venerated
religions, which has been practiced in our country, along with other creeds,
without any controversy or problems whatsoever for centuries. And will continue
to do so Insha'Allah; Baruch Hashem; God Willing; Amen!

In strengthening our efforts to combat terrorism, we will continue to engage
in co-operation with governments the world-over. We do so, however, not as
anybody's 'lackeys' but as a state with clearly defined international and
domestic security obligations to all people. As such we will never countenance
the victimisation of any of the diverse communities that constitute and enrich
our democracy.

When we speak of the Boeremag we do not refer to an ethnic group, similarly
when we speak of Al Qaeda we do not refer to a religious community. We must
move away from simplistic and value laden terms, ensuring that all our
communities join hands as they did to defeat apartheid, to define a common
language and strategy with which to deal with terrorism, of whatever kind,
which fraudulently invokes God's name and threatens us all, irrespective of
colour, creed or nationality. We will never undermine those cultural and
religious traditions we, as South Africans, cherish and will safeguard in terms
of our Constitution and law, without fear or favour.

A more secure continent

In turning to our support for government's programme in building a more
secure continent, we note with satisfaction the contribution made in the
process towards the restoration of peace in the Great Lakes region, more
especially the successful elections held in the Democratic Republic of Congo
(DRC) in 2006. We will continue to work with the parties in the DRC and Great
Lakes region to ensure that the stability attained is firmly secured and
translated into concrete action towards post-conflict reconstruction.

While we acknowledge these gains, we remain focused on those areas of our
continent where instability persists. We are concerned about the Horn of
Africa, particularly the festering conflict in Somalia, which could have major
continental repercussions. The situation in Sudan and particularly Darfur
remains complex and a priority. We continue to interact with all parties in
Zimbabwe to encourage progress to resolve its domestic challenges. These
efforts will be reinforced by the SADC's appointment of our President as a
facilitator.

A more secure world

In looking beyond the continent at our support for our government's
programme to build a more secure world, we mention with pride our role in
bringing peace to Northern Ireland. This was recently praised by the President
of the Sinn Fein, Mr Gerry Adams, who in expressing his appreciation to several
South Africans involved, highlighted the positive impact our own negotiated
settlement had on developments there.

It is this maturity, which is sorely needed in the Middle East, with the
Palestinian people living under the most unbearable and repressive conditions
imaginable. This year marks the 40th anniversary of the Israeli occupation of
the West Bank, Gaza and Golan Heights. We will continue to do what we can to
support a just settlement, with a viable Palestinian state along the 1967
borders. This is in the interests of both Israeli's and Palestinian's, but is
also integral to resolving the wider conflict engulfing the region.

Essentiality to progress is the need for Israel, with its superior power and
resources, to make positive moves, as our President has urged. Israel must
release the Palestinian customs revenue it withholds, its occupation and land
seizures, halt its aggression against the Palestinian people to remove the
Separation Wall; implement the United Nations resolutions, including that on
the Rights of the Refugees and embark on good faith negotiations with the
democratically elected leadership of the Palestinian National Unity Government,
which we believe is doing its best to reciprocate, under the most adverse of
circumstances. This has included the cutting off of certain international
funds, constituting a cruel and collective punishment on the Palestinian people
for electing leaders unpopular with the West. If Israel's leaders are really
serious about wanting the rocket-fire and resistance to stop and for its people
to live in peace, it is imperative that they address the afore-mentioned
requirements.

It is also the wisdom of South Africa's negotiated settlement that should
surely be utilised in the current global climate, with the call for an
alternative to failed unilateral, militarist solutions, which condemn the
majority of the world's inhabitants to a life of poverty, indignity, insecurity
and premature death. As such, we will use the opportunities presented in
marshalling support for our government's vision of a just, multi-polar
international order and a multilateral approach, premised on a commitment to
inclusive dialogue in the resolution of conflict as the most appropriate route
to achieve the lasting peace, stability and security that all people yearn
for.

A personal reflection

It is for this reason that I have travelled widely to places such as
Zimbabwe, Sudan, the Democratic Republic of Congo (DRC), Burundi, Syria,
Pakistan, Iran, occupied Palestine and elsewhere. And with each visit I am
constantly struck by the value that our transition holds for various
protagonists, as so recently portrayed in the power sharing government
established in Northern Ireland, the inauguration of which I was privileged to
attend.

To those critics who question why a Minister for Intelligence should embark
on journeys of this nature, I respectfully assert that such missions are
precisely what this portfolio is about. Aside from providing an opportunity to
share the lessons of our transition, they crucially enable us to obtain the
insights and intelligence we require, which is primarily gained through
fostering mutually confidential relationships on matters of common interest,
directly with the actual role-players.

Conclusion

Chairperson, Honourable Members

Our intelligence services have served us well. They have resolutely carried
the mantle of the African reconnaissance scouts of yesteryear and proved their
commitment to aspire to even greater heights in the period ahead. In requesting
the House to adopt our budget, let us pay tribute to them and express our
gratitude to the Heads of the Services, their management teams and all staff
whose dedication we acknowledge this Africa Day. In closing, I express my
appreciation to my hard working Ministry personnel who make every day at work a
rewarding one for me.

I thank you.

Issued by: Ministry for Intelligence
25 May 2007