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Budget Vote for Department of State Security Agency
By Hon. David Mahlobo MP, Minister of State Security
Parliament of Republic of South Africa, Cape Town
16 May 2017
Honourable Chairperson of the Session
Chairperson of the Joint Standing Committee on Intelligence, Hon.
Charles Nqakula
Honourable Ministers
Deputy Minister of the State Security Agency, Hon. Cde. Ellen Molekane
and other Deputy Ministers
Deputy Chief Whip of the ANC, Hon. Doris Dlakude
Chief Whip of the JSCI, Hon. JJ Skhosana
Honourable Members of Parliament and National Council of Provinces
Honourable Members of JSCI
The Inspector General of Intelligence, Dr. Isaac Dintwe
Director-General of the State Security Agency, Arthur Fraser, the entire
SSA Leadership and members
Veterans of the Intelligence service
The Auditor General of the Republic, Mr. TK Makwetu
Leadership of ANC, Alliance and Progressive Youth Alliance
Mahlobo and Molekane Families
Distinguished Guests
Comrades and Friends
Fellow South Africans,
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Introduction
1. Honourable Chairperson and Members, during the celebration of
23 years of our hard-won freedom and democracy, H.E. President
Zuma implored us into action as a nation to deal with the vestiges
of colonialism and apartheid.
2. In his speech at Georgetown University is 1987, the ANC
President Cde. OR Tambo said, “We seek to create a united,
democratic and non-racial society. We have a vision of South
Africa in which black and white shall live and work together as
equals in conditions of peace and prosperity.”
3. As a country and her people we are indeed on course, many of our
citizens have access to basic services like housing, water,
sanitation, roads, electricity, education, health care and social
security that were denied before.
4. However we are the first to admit that more still needs to be done
in the construction of this national democratic society. We can
pride ourselves with the achievement of political freedom that
included universal suffrage but economic freedom remains elusive.
It is for this belief that for our freedom to be complete, In realising
the ideals of the National Democratic Revolution the ANC has
decided on a radical socio-economic transformation agenda as a
path towards building a country that is not only united in diversity
but also united in equality.
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5. The majority of our population in this country that are blacks in
general, African in particular are economically disempowered and
are already understandably impatient and dissatisfied with lack of
real economic gains from our freedom. These levels of poverty,
inequality and unemployment are unacceptable, unsustainable and
pose serious security threat to our nation.
6. In certain aspects of our democratic society, we note that our
country is experiencing a number of challenges that appear to be
testing the strength and depth of our constitutional democracy.
7. We need to have full confidence in the institutions of democracy
which our constitution establishes and we must be confident that
these matters will be handled in a manner that doesn’t destabilise
our country.
8. As the nation we have proven that through our diversity and unity
we can stand together and emerge as one people. Our
collectivism and unity of the people should be directed to defeating
the scourge of racism, tribalism, inequality, poverty and
unemployment and avoid a situation wherein the revolution is
devouring its own children.
9. Our mandate emanates from the constitution and other relevant
laws regarding to National Security by securing South Africa’s
sovereignty, territorial integrity, independence, her people, critical
infrastructure, assets and interests.
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10. As we have indicated before, in seeking to fulfil our legal mandate
we are always mindful of the need to find checks and balances to
government’s use of excessively harsh measures towards citizens
in the name of national security.
11. In South Africa, the checks and balances have been developed
after the dawn of democracy. Let me take this opportunity to thank
the Joint Standing Committee on Intelligence by diligently
concluding its work with the appointment of our new Inspector
General of Intelligence Dr. Isaac Dintwe. We wish to convey our
sincere congratulations to Dr. Dintwe and all the best in his new
task.
12. There is therefore no better way in celebrating the national
security achievements to date than to rededicate the national
intelligence structures to continue the good story of the further
consolidation of our democracy through the creation of conditions
of peace and stability that is necessary to make further
improvements to the lives of all South Africans, as well as those in
the SADC Region, our African Continent and the rest of the world.
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Global Security Environment
13. I am once again reminded of the words of OR Tambo at the 1969
Morogoro conference when he said and I quote: “The victories of
the national liberation movements were in most cases not easy,
smooth and complete, nor was the retreat of the imperialist always
unplanned or a complete defeat. Imperialism resorted to many
political, military, economic and other stratagems to extend its
lease of life and to save as much as it could in its erstwhile
colonies. “Since the advent of our democracy, it has taken us so
many years since the day these words were spoken for us to
witness their manifestation.
14. The instability of the global environment will contribute to
increasing strain on the economic, political, and security
foundations of the international order that have underpinned global
stability since the end of the Second World War.
15. Economic instability, mass migration, political dysfunction, and
foreign security crises have enabled the rise of populist
movements, testing the commitment of a number of countries to
pluralist values. In the context of these intra-civilizational identity
crises, the liberal international order faces increasing strain.
16. State and non-state actors will also seize the opportunity to
undermine the legitimacy and control of governments and to
promote their narrow interests.
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17. As a result, states will be forced to focus increasingly on threats
within their borders, to the detriment of international cooperation.
National Security Perspective
18. As the security services the thrust of our mandate is outlined in
NDP 2030: “in 2030, people living in South Africa feel safe at
home, at school and at work, and they enjoy a community life free
of fear. Women walk freely in the street and children play safely
outside”.
19. In describing our current state of peace & stability in the country,
our departure point is that South Africa is relatively stable
notwithstanding, our security assessment which identifies
economic weaknesses as the major threat to our national security
and interests.
THREATS TO THE AUTHORITY OF THE STATE
Violent Protests
20. Chairperson and Honourable Members, all of us agree on the
constitutionally enshrined rights of association, movement and
protest. In relation to the latter, our Bill of Rights provides, in
Chapter 2 that: “Everyone has the right to peacefully and unarmed,
to assemble, to demonstrate, to picket and to present petitions”.
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21. A series of concerns have emerged around the perceived trend
towards using fears about security to justify eroding human rights
and freedoms. Finding a balance on how to effectively address
security, while respecting human rights, constitute a key challenge
of our times.
22. If we look back at the history of the struggle in this country, we
can see that ours was a very violent one, where people found their
voices through various forms of protests that ended with blood on
the floor. It was the darkest period in the history of this country.
23. It can be argued that the violent nature of many protests in our
country and the violent nature of certain crime categories in society
reflect the old violence from which we come from as a nation.
24. We therefore have to condemn any wanton destruction of
property, vandalism and at times death that is associated with
some protests.
25. Last year we saw the proliferation of violent service delivery
protests, violent student protests and violent industrial actions. In
addition, we have also witnessed violence in relation to
demarcation decisions such as those that occurred in Vuwani
where schools bore the brunt of the destruction. We’ve also noted
that housing shortages have culminated in increased incidents of
land invasions which have been largely politicised.
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26. Instability in the transport sector remains a challenge. The
underlying conflict over ranks and routes is compounded by the
involvement of security companies. The introduction of Uber which
has resulted in conflict with the metered taxi industry has further
exacerbated conflicts in this sector. The involvement of some other
government officials do not assist our course of creating stability in
this sector. We will continue to work tirelessly with all our partners
in search of lasting solutions to the challenges of this industry.
27. Insecurity posed by some private security companies is not limited
to the transport industry as earlier reflected. It extends to the
involvement of our nationals in conflicts in the continent and other
parts of the world. The ever expanding footprint of this industry and
the cash based system of transacting makes curbing illegal
activities of this industry difficult. The continued provision of
security services at National Key Points and Strategic Installation
by private security companies which are foreign owned remains a
problem.
28. It is essential that these strategic installations are protected by
South Africans, as means to secure our sovereignty. It is our
conviction that the Private Security Industry Regulation
Amendment Bill will assist in resolving some of these challenges
including the transformation imperatives.
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29. Our position remains that the right to protest must be exercised in
a responsible manner that doesn’t impact negatively on others. In
all of these, we’ve also noted the disturbing trend of state and non-
state actors who continue to hijack legitimate socio-economic
concerns for narrow political gains aimed at effecting an
unconstitutional change of government.
30. As political leaders we must show political maturity by denouncing
the exploitation of genuine community concerns for ulterior
motives. We equally call on the business community to be
behaving responsibly in its engagement with workers.
Information Security and Securing the Cyberspace
31. Honourable Chairperson and Members, personal privacy and
national security in the 21st century both depend on protecting a
set of systems that didn’t even exist until late 20th century.
32. The digital and information age has brought exciting opportunities
in developing our economies, improving our health care,
education, agricultural production, military, provision of services
and the list is endless. In the same vein, electronic computing and
communication pose some of the most complex challenges the
world has ever faced.
33. Attacks on any of these networks would potentially have
disastrous consequences for individuals and for society as
witnessed in the recent ransom-ware attack to more than 100
countries affecting thousands of organisations worldwide.
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34. This cyber-attack affected UK health care system, railway in
Germany, number of agencies and companies in the last week
because of security deficiencies.
35. The international community is concerned over threats posed by
possible use of such technologies both in civil and military spheres
at the expense of achieving international peace, security and
stability, undermining sovereignty and security of states and
interference in their internal affairs, violation of citizen’s private life,
destabilisation of inner political and social and economic situation,
advancing of racism, terrorism, ethnic and sectarian strife.
36. Finding a balance of respecting human rights in the field of
information security and communication technologies continue to
be a subject by various proponents to the equation. In our quest to
secure critical information infrastructure, government has made
significant strides to protect its information from attacks that
emanate from cyber space.
37. Our country is one of the targets for cybercrime and research
shows that small companies and ordinary citizens especially
unsuspecting children are being targeted more and more by cyber
criminals, state actors and hacktivists.
38. Ransomware, identity theft, cyber bullying, internet banking fraud,
misuse of social networks and many other types of attacks are
prevalent.
39. We have made significant strides on the research side. In
partnership with institutions of higher learning, we have launched
capacity building programmes that will bolster our capacity to
respond to the problem of cyber insecurity. These initiatives will
not only bolster the capacity of government to respond to cyber
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insecurity, but it will create a skills base that will improve cyber
security for the public and private sectors.
40. Good progress has also been recorded on the policy and
legislative environment including relevant coordinating structures.
The Cybercrime and Cybersecurity Bill is currently before
Parliament, having gone through a process of consultation with
relevant stakeholders. The Bill seeks to ensure that the country
has the relevant legislative framework in place.
41. Information security and cybersecurity is a matter of discussion
globally. As we consider appropriate legislation we should clearly
address the following threats:
a) Acts of aggression aimed at discrediting the sovereignty and
violation of security and territorial integrity of states and
threatening international peace, security and stability;
b) For causing economic and other damages, including
destructive impact on elements of information infrastructure;
c) For terrorists purposes, as well as advocacy of terrorism and
recruitment for terrorists activities;
d) For committing crime, including those connected with
unauthorised access to computer information;
e) Interference into internal affairs of states, violation of public
order, incitement of interracial and interethnic and sectarian
strife, advocacy of racist and xenophobic ideas of theories
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that ignite hatred and discrimination and incite and also to
destabilise governance; and
f) For dissemination of information harmful for socio-political
and socio-economic system, spiritual, moral and cultural
environment in other states.
Unconstitutional Regime Change
42. A number of governments are using underhand tactics in pursuit
of their narrow national interest and national security in the
process destabilising a number of countries like what happened in
Libya, Brazil and now in Syria. During the past year, they
continued their efforts, in close collaboration with negative
domestic forces, to undermine our democratic and constitutional
advances.
43. Their modus operandi is through penetration, influencing,
manipulation and ultimately subversion in the quest to advance
and promote their national interests. These attacks may result in
the diversion of governance and the possibility that the broader
purpose of government will be hijacked by those with ulterior
agendas, sectarian interests and nefarious intent.
44. Their general strategy they use a range of role players to promote
their agenda and these include, but are not limited to certain :
mainstream media; non-governmental organisations and
community-based organisations; foreign and multinational
companies; funding of opposition activities; infiltration and
recruitment in key government departments; religious bodies,
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prominent influential persons; and punning of covert intelligence
networks and covert action on our soil.
45. As a country, we should always be careful not to wittingly or
unwittingly yield to those who exploit genuine concerns of our
people to drive a wedge amongst the public and seize this moment
to effect unconstitutional change of government.
THREATS TO THE WELL-BEING AND SAFETY OF SOUTH AFRICANS
Transnational and Organised Crime
46. Transnational crime network on arms and ammunition, drug and
human trafficking, stock theft, vehicle theft and money laundering
have become one of the international security challenge we face.
47. Gangsterism and drugs abuse continue to ravage the most
impoverished in our society. We must deal decisively with the
prevalence of Gangsterism in our communities. Of concern is the
targeting of schools and youth centres as recruitment grounds for
gangs.
48. Linked to the issue of gangsterism is the escalation of drug
manufacturing, smuggling, trafficking and consumption. Recent
drug bust by the security services, in February 2017, included the
confiscated of drugs worth R78 million in OR Tambo airport which
was believed to be enroute from Sao Paulo to Nairobi.
49. We also note the continued use of illegal firearms, explosives and
other ammunition in the commission of violent, syndicated and
organised crime. This has been worsened by the targeting of
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military bases and police stations for weapons, the latest of which
was the robbery at Khayelitsha last month.
50. As part of the response to these challenges, the Security Cluster
has taken steps to improve coordination in implementing the
approved Anti-Gangsterism Strategy of government. We call on
communities to join hands with government in fighting the scourge
of gangsterism and drugs.
51. The security services will continue to conduct intelligence driven
joint operations that will wage a serious war on drugs. We also
note and welcome various major metropolitan cities who have
implemented focused programmes aimed at ridding our streets of
drug lords and cleaning up on drug dens.
52. Working with SAPS and other law enforcement agencies, we
managed to run successful operations against organised crime
syndicates
THREATS TO ECONOMC DEVELOPMENT
Illicit Economy
53. A significant amount of cash was detected leaving the South
African borders to foreign jurisdictions and this is estimated at R80
billion per annual in Illicit Financial Flows (IFFs). While the threat
of IFFs were brought into sharp focus by the AU High-Level Panel
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in 2015, the information leak of the Panama law firm Mossack
Fonseca in 2016 illustrated the extent and impact of illicit flows at a
global level and these revelations implicated some of the South
African individuals and companies.
54. Over the years, it is clear that the South African economy has
been affected negatively by decades of transfer pricing and other
forms of illegal capital flight by multinational companies, especially
those who operates in the extractive industries
55. In the period under review, the threat posed by the illicit mining of
precious metals and related crimes continued to proliferate across
the country and this manifested in the displacement of illicit
activities to the previously unaffected provinces such as KwaZulu-
Natal and the targeting of Chrome mines in Limpopo. This was
exacerbated by the weakening of the Rand which resulted in the
sharp increase in gold prices in both legal and black markets thus
increasing incentives for illegal miners
56. We cannot allow a situation of instability that is manufactured
outside of our borders to manifest in this country, as we saw last
year the killings that took place in disused mines west of
Johannesburg.
57. We have also noted with concern, the increase in infrastructure
crimes which affects the livelihood of our communities. Syndicated
theft of amongst others copper affect the delivery of critical
services and at times result in community protests.
58. Within this context, we have reaffirmed our focus on providing
economic intelligence which supports government in dealing with
threats in the illicit economy. We have also extended our focus to
include exploration of economic opportunities to the benefit of our
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people. In this regard, we look forward to working with the
Treasury, SARS, DTI and the Financial Intelligence Centre in
curbing this scourge/
59. We will continue to strengthen our capacity given our unique role
and position within the global trade and financial environment. We
will also consolidate and build further on the successes of the past
with regards to combating illicit tobacco smuggling and identifying
harmful trade practices.
Fighting Corruption
60. Corruption poses a serious and direct threat to our reconstruction
and development initiatives, good governance, service delivery,
and ultimately stability, particularly at local level. We will continue
focusing on corruption within the public service and private sector.
61. The Anti-Corruption Task Team, which comprises of various law
enforcement agencies, has posted encouraging results in the fight
against corruption. For the period to end of March 2017, freezing
orders to the value of R610.5 million were obtained resulting in an
overachievement of 2%. For the same period, 87 successful
prosecutions were obtained against government officials.
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62. We are enhancing up the vetting process to improve the integrity
particularly of those in the employ of government as well as those
in state owned enterprises.
63. We are in the process of digitising the vetting process whilst
finalising the intelligence regulations that will enable the conduct of
vetting as a compulsory requirement. For us the integrity of
government officials is paramount in the fight against corruption.
Environmental Protection
64. Chairperson, with regards to the threat to our wildlife, our
assessment confirmed the escalation of wildlife crimes which has
become the fourth lucrative transnational organised crime after
drugs, firearms and human trafficking.
65. To this end, some SADC countries are used as key operational
bases for poachers particularly for those operating in the Kruger
National Park.
66. Targeting of rhino horn and smuggling remains a course for
concern and the intensification of security operations at national
parks diverted focus of criminal networks to private game parks.
67. Despite this, the security services in partnership with the
Department of Environmental Affairs continue to disrupt the
activities of poachers and their syndicates. Last month, the
Department of Justice opened the Skukuza Regional Court to
assist in combating rhino poaching related activities.
68. Arrests continue to be made on poachers with the latest of these
being that of a syndicate using luxury vehicles to commit the
crimes in North West province- popularly known as Bokone
Bophirima.
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THREATS TO THE TERRITORIAL INTEGRITY OF THE REPUBLIC
Management of Migration and Securing South Africa’s Borders
69. Illegal immigration has become a serious challenge for our
country because of our vast borders such as land, air and
maritime. Effective control and management of our South Africa’s
border security is critical
70. As a country we continue to experience the high entry of
economic migrants into South Africa who claim to be asylum
seekers.
71. As a result, they continue to saturate our urban and peri-urban
centres, hence their intensification of moving into the rural parts of
our country.
72. Despite all interventions, it is evident that South Africa remains
the preferred destination of economic migrants in Southern Africa.
The South African economy has over an extended period of time
been supported by amongst others migrant workers. South
Africans have peacefully coexisted with foreign nationals over the
years. The openness of South Africa to migrants have been
acknowledged by the United Nations in declaring that South Africa
has taken more than its fair share of migrants per capita.
73. As indicated before, competition for scarce resources and
business opportunities continue to drive anti-foreigner sentiments.
Accusations of foreign nationals’ involvement in criminal activities
have also been levelled. Criminal acts, irrespective of who
commits them should be dealt with decisively Communities need
to be encouraged to seek dialogue in resolving conflicts with the
émigré community instead of resorting to violence..
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74. The preparations for the launch of the Border Management
Authority (BMA) are at an advanced stage, with the BMA Bill
before Parliament for consideration, under the stewardship of the
Department of Home Affairs. It is envisaged that the BMA will go a
long way in addressing the challenge of uncontrolled migration.
75. This coordination will enhance the work already being done by the
JCPS Cluster in cross-border migration. We will also continue
operational engagements with our neighbouring counterparts to
improve regional security and stability.
Countering Terrorism, Radicalisation and Violent Extremism
76. The escalation of international terrorism as one of the major global
security challenges, dominated by the threat of the Islamic State
(IS), foreign terrorist fighters (FTFs), and the growing trend of
online radicalisation. Furthermore, this period saw the escalation
of the threats posed by lone-wolfs and self-radicalised individuals
under the IS banner as witnessed in France, Germany and the
USA wherein soft targets such as hotels, beach resorts,
restaurants and even educational facilities got hit. Of our serious
concern is the sustained attempts by South Africans travelling to
the conflict zones especially the youth being the most vulnerable
group.
77. Although, South Africa is not a primary target for attack by
international terror organisations no country is immune. However,
South Africans cannot afford to be complacent given the extent of
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extremist ideology and propaganda being spread through the
internet and social media.
78. Working with the collective of the law enforcement agencies, we
continue to ensure the effective implementation of the National
Counter-Terrorism Strategy as outlined in the National Counter-
Terrorism Strategy Implementation Plan.
79. We will also raise with Parliament the legislative limitations that
we have detected in terms of criminalising terrorism.
80. We will also continue the partnerships that we have established
with a number of community and civil society structures which
have come out in support and said “not in our name”. These are
the unsung heroes and heroines of our country that have pledged
to ensure, just like the NDP envisions, we create safer
communities where women and children can walk free without any
fear or want.
81. We have had and will continue to have extensive engagements
with international partners in our quest to improve cooperation on
these matters. As a member of the Committee of Intelligence and
Security Services of Africa (CISSA), we have contributed to the
development of a strategy on countering terrorism in Africa.
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INTERNATIONAL SECURITY COOPERATION
82. Honourable Chairperson and Members, the prosperity and
advancement as a country is intrinsic and inextricable link to that of
our region and continent. We have played significant role in
supporting our government on matters of peace, security and
national interest. We will continue to play our part by providing
dynamic, reliable and timeous intelligence to advance our national
security and interests.
83. The security challenges in the various regions of our continent are
an indication that there are new and unconventional threats that
have necessitated more collaboration within various regions and
other multilateral institutions through the AU to respond to the
challenges.
84. We will continue supporting government’s efforts in facilitating
peace and stability in the region as characterised by the initiatives
in the Democratic Republic of Congo, Lesotho and Mozambique,
amongst others.
85. We remain seized with supporting the efforts of HE President
Zuma in his capacity as Chair of the African Union Ad Hoc High
Level Committee on Sudan, as he seek to get all the parties to
recommit to the peaceful resolution of the South Sudan crisis.
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86. The outbreak of violence in Juba after the signing of the power
sharing deal that led to the formation for the transitional
Government of National Unity was a major setback. We will
continue to support the Presidential Special Envoy in its mission.
87. With regards to Libya, South Africa, through the participation of
President Zuma on the African Union High Level Committee on
Libya, will continue to support regional and continental processes
to respond and resolve the crisis in Libya that has resulted in
untold suffering in that country and in the perishing of migrants in
the Mediterranean seas.
88. We will continue to support government’s participation within the
multilateral institutions of the United Nations. Equally, BRICS
remains an important forum through which South Africa and major
international players such as China, Russia India and Brazil
collaborate to enhance global governance to ensure an equitable
development and global peace and security.
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Building Capacity to Respond
89. The process of improving the capacity of the intelligence
structures remains an ongoing one in order to ensure that the SSA
continues to have the capability to fulfil its constitutional
responsibilities against the background of continuously evolving
national security threats from within the domestic and global
environments. Improving our capacity also remains premised on
our appreciation of the role of intelligence in securing the South
African State, its sovereignty, its people, infrastructure and
resources.
90. To this end, the SSA has developed a strategic perspective that is
premised on the National Development Plan but extends it to the
year 2035. We believe that as the national risk management
capacity of the state, the SSA should have a strategic vision on
national security matters that goes beyond that of the NDP in order
for it to provide early warning on potential threats and dangers
which may confront our country and her people.
91. Lastly, capacity building also means that we have to ensure that
we protect our institution from any unauthorised attempts to gain
access to our systems, processes and information by our
detractors who are intent on preventing us from developing a
prosperous and secure nation.
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Conclusion
92. We also value the contribution, guidance and counsel that is
provided by the family of oversight structures; the Joint Standing
Committee on Intelligence, the Auditor General and the Inspector
General of Intelligence. These are institutions that our Constitution
has established to hold us accountable, on behalf of the people of
South Africa, for the actions and or inactions we take in the
exercise of our work. We pledge our full cooperation in this regard.
93. I wish to thank HE President Zuma and the ANC for their
continued support and guidance. Let me also thank the Deputy
Minister, the Director General and his Top Management Team and
Members of SSA and the leadership of the entire intelligence
community. The Ministry Staff and my family are also worthy of
mention for their support with the task at hand.
94. We shall work with vigour to implement bold and decisive
interventions toward socio-economic transformation in order to
eradicate poverty, unemployment, reduce inequality and create
sustainable livelihoods which constitute the main tasks of our
second phase of the transition as espoused in the National
Democratic Revolution by the people’s movement- the ANC.
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95. Leaders across the globe are having a unique opportunity to
advance humanity by developing policies and strategies that
promotes peace and prosperity.
96. We are obligated by human solidarity and love for peace, justice
and equality to be tolerant, reject prejudice base on race, creed,
gender, religion, sectarianism and cast. Freedom and equality is
the cornerstone of a truly united, non-racial, non-sexist, democratic
and prosperous society we all yearn for.
97. We cannot succeed as nation when the majority of its citizens are
held back by economic bondages. Majority of our people are still
suffering from poverty, inequality and unemployment. They too
are human, let’s work tireless in our diversity through a united
action to embrace the strength within them and realize their full
potential in the land of our birth.
98. Our responsibility is to unite and lead the nation, while accepting
the baton of history. Our responsibility is to our people and
expects better quality of life. They hope that their children and next
generations can grow up better, have decent work and a better life
for all. The ANC has led our people in scoring accomplishment
that capture our imagination and attention of the world. We have
every reason to be proud. However we are proud but can’t allow
complacent to set in and will never rest on our laurels.
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