Independent probe into allegations of corruption, mismanagement at SABS to be launched
Trade, Industry and Competition Minister Parks Tau has approved an independent investigation into SABS allegations
Amid persistent allegations of corruption and mismanagement at the South African Bureau of Standards (SABS), the Department of Trade, Industry and Competition (dtic) has finally announced the launch of an independent investigation.
During a Trade, Industry and Competition Portfolio Committee meeting, held virtually on January 28 – at which SABS executives and Trade, Industry and Competition Minister Parks Tau were present – the dtic said it was in the process of finalising the logistics for the probe, with the intention to have it start as soon as possible, potentially as early as next week.
The department emphasised the need for the investigation to be independent and transparent, acknowledging that an internal investigation would not be credible, given the nature of the allegations.
Tau and Trade, Industry and Competition Deputy Minister Andrew Whitfield confirmed that they had received multiple allegations against the SABS over the past few months, including allegations of bullying, mismanagement and financial irregularities.
However, concerns were raised by committee members about the delay in processing these allegations, given the impact that these issues might be having on SABS operations if true. Of particular concern is the temporary loss of accreditation for cement certification.
The SABS’s cement segment scope of accreditation from the South African National Accreditation System (SANAS) was partially suspended on August 8 last year. This means SABS cannot issue new permits bearing the SANAS logo or for new clients, additions of scope or new products and renewals.
The temporary loss of this accreditation has serious implications for SABS's ability to deliver services, particularly related to the certification of cement.
SANAS initially gave SABS a three-month period to put in place the necessary remedial actions. However, SANAS has since granted SABS an extension until April to fix the issues and undergo a reassessment.
The recent ransomware attack on SABS, which Engineering News reported on in December, has affected some of its processes, making it difficult to complete the necessary actions within the initial three-month timeline.
During the briefing, SABS representatives said the agency was in regular communication with SANAS, with monthly meetings taking place to provide updates on the progress in addressing the issues leading to the partial suspension of accreditation.
The loss of the cement accreditation and the cybersecurity breach were raised as key points of concern that needed to be addressed in the investigation.
Various committee members emphasised the need for transparency, impartiality, and timely resolution of the investigation, while highlighting the importance of safeguarding the SABS's integrity and ensuring proper cybersecurity measures.
Members of the portfolio committee also emphasised the need for the investigation to be conducted independently, without any influence or interference. There were questions about who the service provider conducting the investigation would be, and also calls for the terms of reference to be shared.
Concerns were also raised about ensuring that evidence, including information on employees' computers and in the cloud, is properly preserved during the investigation.
In addition, there were also requests for clear provisions to be made to protect the identity and safety of whistleblowers who might come forward with information.
Assurances where also sought that the findings of the investigation would be communicated transparently to the committee and the public.
In addition, there were requests for timelines to be shared, including one for when a report would be submitted.
The overall focus was on ensuring the independence, thoroughness and transparency of the investigation process to address the serious allegations against the SABS.
“It is critically important that the investigator, whoever it is, makes it absolutely clear that they are open to receiving comments and statements and emails – whatever else it is – from whistleblowers, from either the ones that have already blown the whistle or ones that haven't yet and wish to,” Democratic Alliance Trade, Industry and Competition spokesperson Toby Chance, who brought several of the allegations about SABS to the public’s attention in recent months, including in interviews with Engineering News, said during the briefing.
“What we're trying to establish here is the truth.
“What we want to hear is from people who have information, whether they be past or present employees or other people, maybe their suppliers, maybe their customers who have information that is relevant to this investigation, and I think that it's very important that an open channel of communication be not just open but broadcast, so that people are aware that they can speak out, but confidentially, and that their identity will be protected,” Chance added.
SABS officials continued to deny the allegations levelled against members of its executive board and said the independent investigation would clear them of any wrongdoing.
Among the issues raised by Chance in recent months has been the game of musical chairs being played in the boardroom, with executives being suspended and positions being swapped every few months, with the acting CEO becoming a seemingly permanent fixture.
Tau admitted that the instability of the SABS board was concerning, with another executive resignation having occurred as late as yesterday.
“Therefore, the need to strengthen the board and governance in the SABS is a matter of priority. Linked to that is the finalisation of the appointment of a CEO, and we had indicated the difficulty of finalising the process in an environment where we needed to stabilise the board.
“So, we would need to sequence the processes in such a way that we have a board that is fully constituted [and] that's able to finalise the process of the appointment of a CEO, in consultation with the ministry and government overall,” he said.
Tau added that he expected the board to be finalised within the next few weeks, following which the issues surrounding the selection of a permanent CEO could be processed.
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