Clarity needed over local goods verification

National Treasury, in
consultation with the
department of trade and
industry (dti), needs to
resolve the confusion
around verification of
locally produced goods
and services
– and
amend the
Preferential
Public
Procurement
Framework
Act (2011) if
necessary.
This
according
to the
chairperson
of the
Portfolio
Committee
on Trade and Industry,
Joan Fubbs, who
responded to recent
industry questions around
verification of local
content as government
continues to push local
procurement to realise
its industrialisation
ambitions.
“There is a broad
understanding that
verification through the
South African Bureau
of Standards (SABS)
is required to ensure
they meet minimum
standards, but the
verification process –
especially for a small
business – can be costly,”
she said.
Fubbs added that
the issue of who was
responsible for paying
for the verification
process still had to be
clarified – the winning
bidder or the state?
She commented that the
Portfolio Committee was
“hugely encouraged” by the
strides made to leverage
South Africa’s public
investment and procurement
programme
but that
issues such as
local content
verification,
compliance,
supplier
development
and import
monitoring as
well as export
standards
performance
remained
“areas of
concern”.
Henk Langenhoven, chief
economist of the Steel and
Engineering Industries
Federation of South Africa
(Seifsa), told FTW that the
setting of standards and
specifications was vital to
the enhancement of local
goods and also welcomed
government initiatives to
ensure local procurement by
state-owned companies.
“But the increasing
institutional uncertainty
regarding the areas of
authority and the execution
of this role between
SABS and the National
Regulator for Compulsory
Specifications (NRCS) is a
cause for great concern,” said
Langenhoven.
He said this had become
an issue with testing parts
or complete products and
undermined the drive
by the dti to ensure local
production to enhance local
procurement.
INSERT & CAPTION
The issue of who is
responsible for paying
for the verification
process still has to be
clarified.
– Joan Fubbs