State enterprises obliged to procure local content, reminds Davies

| 0 Comments

 

SA_flag.jpgThe procurement of goods that conform to local content requirements is not a recommendation for State entities, but a legal requirement, said Trade and Industry Minister Dr Rob Davies.


All organs of State are obliged to procure goods on the designated list and that conform to local content requirements, he said during a Portfolio Committee on Trade and Industry briefing.


A challenge is that some procurers do not know what is required of them… Procurement officers should seek assistance with local content verification, he said.


The Department of Trade and Industry (DTI) appointed the South African Bureau of Standards (SABS) to serve as the local content verification agency, in September 2012.


The local content verification office was officially launched in June 2013.


The SABS has since published the approved South African Technical Specification (SATS 1286) for the measurement and verification of local content.


“These standards protect businesses from shoddy verification agents. The private sector must approach the SABS to ensure that verification is done properly,” highlighted Davies.


Auditing and certifying by the SABS was designed to give the State proof that local manufacturers were benefitting from the local content requirements. The winning bidders in government tenders are required to have their local content declarations verified to ensure there is no misrepresentation, fronting or misstatement of local content.


The verification process is of a high international standard, noted Chairperson of the Portfolio Committee on Trade and Industry, Joanmariae Fubbs. This ensures adequate quality assurance, which is important for service delivery, said SABS CEO Dr Boni Mehlomakhulu.


Mehlomakhulu cited an example of low-quality solar geysers, which ended up costing more to repair or replace.
She further warned of products labelled “Made in South Africa”, but which are only assembled in South Africa, with more than 90% foreign content.


Meanwhile, with the release of the second phase of the amended Codes of Good Practice, the outstanding statements of the Codes are now gazetted: the Qualifying Small Enterprise (QSE) statements and scorecards, the statement for specialised entities, the statement on developing and gazetting sector charters, the recognition in the sale of assets and the recognition of equity equivalents for multinationals.


Minister Davies noted the amended QSE code comprised five elements, which accounted for 100 points and provided a measurement framework and scorecards with targets and weighting points for enterprises that fell into this category.


South African Chamber of Commerce and Industry senior policy consultant Pietman Roos said it is positive that the new BBBEE Codes recognised that smaller enterprises had to receive certain exemptions.


However, EconoBEE CEO Keith Levenstein said that while the QSE scorecard was more lenient than the generic scorecard, QSEs would find it difficult to get a reasonable score, owed to the harsher points to level the table.


“The competitive advantage that QSEs enjoyed over generics using the 2007 codes has disappeared,” he said.
 

Leave a comment


SmartProcurement Newsletter
X

Please enter your details below to receive the SmartProcurement Newsletter for FREE on a regular basis.

As part of the SmartProcurement Newsletter you will be receiving World Class Procurement News, Tools, Tips, Tactics, Procurement Training updates, Upcoming Events, and the latest Procurement Career Openings.

* Email Address:
* Title:
* First Name:
* Surname:
* Company:
  Position:
* Country:
* Public / Private:

 

 

Career opportunites

Demand Planner

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Procurement Consultant
Salary: R500 000 - R500 000 per annum.Location: ...More

Fuel Logistics Manager

  • <500 000 Logistics & Warehousing Operations, Planning & Inventory Permanent Western Cape
Salary: R600 000 - R720 000 per annumLocation: ...More

Supply Chain Manager

  • <500 000 Gauteng Permanent Projects / Category Management Supply Chain
R650 000 - R700 000 per annum.Location: Johannesburg.A ...More

SENIOR BUYER

  • <500 000 Buyer Gauteng Permanent Supply Chain
R500 000 - R550 000 per annum,Location: Midrand,A ...More

Supply Chain Analyst

  • <500 000 Analyst Gauteng Permanent Supply Chain
Salary: R600 000 - R700 000 CTC per ...More

Supply Chain Manager

  • <500 000 Gauteng Permanent Supplier / Business Development Supply Chain
Salary: R600 000 - R700 000 per annum,Location: ...More

Demand Planner

  • <500 000 Gauteng Logistics & Warehousing Permanent Projects / Category Management
Salary: R450 000 - R550 000 per annum,Location: ...More

Demand Planner

  • <500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Permanent
Salary: R500 000 - R500 000 per annum,Location: ...More

Warehouse and Distribution Manager

  • <500 000 Logistics & Warehousing Permanent Procurement Management
Salary: R650 000.00 - R850 000.00 CTC pa,Location: ...More

National Supply Chain Manager

  • <500 000 Gauteng Permanent Procurement Management Supply Chain
Salary: R900 000 - R1 000 000 per ...More

Procurement Specialist

  • <500 000 Gauteng Permanent Procurement Management Procurement Officer / Specialist
Salary: R380 000 - R420 000 per annum,Location: ...More

Supply Chain Analyst Lead

  • <500 000 Analyst Gauteng Permanent Supply Chain
Salary: R1 000 000 - R1 100 000 ...More

CIPS Tutor and Coordinator

  • Gauteng Permanent Projects / Category Management Supply Chain
Commerce Edge South Africa,Division: Commerce Edge Academy,Location: Johannesburg, ...More

Warehouse Manager

  • <500 000 Gauteng Industrial Engineer Logistics & Warehousing Permanent
Salary: R480 000 - R600 000 per annum.Location: ...More

Senior Buyer

  • <500 000 Buyer Gauteng Permanent Procurement Consultant
Salary: R600 000 - R650 000 per annum.Location: ...More

Operations Manager

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Supply Chain
Salary: R700 000 - R800 000 CTC per ...More

Warehouse Manager

  • <500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Permanent
R400 000 - R480 000 CTC per annum.Location: ...More

Supply Chain Analyst

  • <500 000 Analyst Permanent Supply Chain Western Cape
R400 000 - R500 000 per annum.Location: Cape ...More

Commodity Manager

  • <500 000 Commodities Gauteng Permanent Procurement Consultant
R650 000 - R750 000 per annumLocation: Cape ...More

Logistics Manager

  • <500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Permanent
Salary: R 800 000 - R 900 000 ...More