Localisation policy under microscope

PARLIAMENT’S trade and industry portfolio committee is forging ahead with its inquiry into SA’s localisation policy and its implementation by state-owned firms and public sector entities.

The committee resolved on Tuesday to have its initial briefing with stakeholders regarding the purpose and objectives of the inquiry into compliance with the localisation and local public procurement policy before November 11.

The committee would determine the time-frames of the inquiry at the beginning of 2018 after the parliamentary recess, chairwoman Joan Fubbs said.

It envisaged the inquiry would include public hearings with Transnet, the Passenger Rail Agency of SA, original equipment manufacturers, government departments overseeing specific areas and any relevant stakeholders, she said. This followed a meeting with Transnet in September, when the committee expressed its concern regarding a perception that state-owned entities were not implementing the localisation policy effectively.

Given that public procurement was intended to promote economic development and employment, Fubbs said the committee was not fully satisfied with Transnet’s responses regarding the procurement of locally manufactured items.

Fubbs pointed out that this concern did not apply only to Transnet and its acquisition of 1 064 locomotives, but to parastatals in general.

“The overarching purpose of the inquiry is to ensure that the localisation and local public procurement policies, underpinning the success of the industrial policy action plan, are effectively implemented to achieve job creation and other economic development objectives,” she said.

DA MP and trade and industry spokesman Dean Macpherson said the inquiry followed disclosures that China South Rail used a Gupta front company, Tequesta, for “advisory services” to help secure a deal to supply 359 of the 1 064 locomotives tendered for by Transnet. — BDLive