South African regulators are struggling due to state capture and weak economy
9 October 2019
The FF Plus laments the terrible state in which the two national regulators, the South African Bureau of Standards (SABS) and the National Regulator for Compulsory Specifications (NRCS), find themselves after both received qualified audit reports from the Auditor-General.
After the regulators' presentations to the Portfolio Committee for Trade and Industry today, it is clear that state capture, corruption and vacant key positions are causing the institutions great problems while the poor South African economy is only making things worse.
The FF Plus takes note of the turn-around plans that have been implemented, but is doubtful whether these plans will get the regulators back on track. The SABS has been under administration since 2018 and Minister Ebrahim Patel should place the NRCS under administration as well.
The deterioration of the regulators has opened the door for the illegal importation of grey goods, which has resulted in a general lowering of standards to the detriment of South African consumers.
The headstrong way in which the South African government is pursuing its policy of Black Economic Empowerment and quotas clearly indicates that, for them, it outweighs healthy business principles. It boils down to industrial sabotage.
Issued by Jaco Mulder, FF Plus MP and chief spokesperson: Trade and Industry, 9 October 2019