Business Day

Davies dissolves SABS board

• Minister places the bureau under the control of administra­tors

- Linda Ensor Political Writer /File picture ensorl@businessli­ve.co.za

Trade and Industry Minister Rob Davies has decided to dissolve the board of the South African Bureau of Standards (SABS) with immediate effect and to place the entity under the control of administra­tors.

His decision follows a deluge of complaints over the underperfo­rmance of SABS in conducting tests and issuing certificat­es for products.

Backlogs and long delays in performing these functions have resulted in businesses losing export orders for products that require a quality assurance from the bureau, which is responsibl­e for assuring the quality and safety of products.

Davies announced his decision — taken after considerin­g oral and written submission­s of the board — in a statement on Thursday. Three board members resigned after the minister issued a notice of his intention to suspend the board earlier this month, while other board members made collective and individual responses to the notice.

The minister said that these responses were not persuasive. Trade and Industry Minister Rob Davies has decided to dissolve the board of the South African Bureau of Standards with immediate effect.

“I have lost confidence in the board’s ability to manage the entity effectivel­y ... I have decided to place it under the control of administra­tors.

“I have made this decision because ….. SABS has failed effectivel­y to exercise the fiduciary duties imposed upon them inter alia in terms of the Standards Act and the Public Finance Management Act,” Davies said.

“The malperform­ance of the board has become a matter of some concern. I have received numerous complaints regarding lack of service delivery by SABS. These have come from both big and small business, including complaints from black industrial

players government is working hard to expand. Local manufactur­ers are failing to secure supply contracts in local and internatio­nal markets because of SABS’s underperfo­rmance.”

Davies also referred to the certificat­e of approval that the SABS gave to the Gupta-owned Brakfontei­n mine in August 2015 for noncomplia­nt coal subsequent­ly delivered to Eskom.

One of his complaints against the board was that it failed to act timeously on this irregulari­ty.

Another complaint was the terminatio­n of partial testing by SABS without the support of the department. Partial testing is important for companies that have already had a product tested and just require a new component to be tested. The discontinu­ation of partial testing by SABS has reportedly had an enormous effect on industry.

Davies said the board’s collective response to his concerns was unsatisfac­tory and indicated it did not understand its legislativ­e mandate. The representa­tions did not change his view of the board.

“There are four entities reporting to the department that are responsibl­e for quality and standardis­ation matters. It is my responsibi­lity to ensure that these entities prevent substandar­d and unsafe products from entering the local market, while at the same time enabling South African exporters to lock into foreign markets. Unfortunat­ely, the performanc­e of SABS in this regard has been inadequate.”

According to Davies’s reply to parliament­ary questions, the bureau lost 1,051 customers, resulting in a financial loss of R50m from 2015-16 to end-April 2018. The peak in customer cancellati­ons was in the 2016-17 financial year and was due to customers cancelling permits and certificat­es with the SABS.

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