Procurement of local content is a legal requirement | Infrastructure news

The procurement of goods with local content is not just a recommendation for state entities but a legal requirement. Dr Rob Davies, Minister of Trade and Industry, speaking at the Portfolio Committee on Trade and Industry, briefing in Parliament.

“All organs of state are obligated to procure goods that are on the designated list and conform with local content requirements.”

“Among the challenges we face are that some procurers do not know what is required of them. We are saying that procurement officers should go to people with local content verification to assist them.”

“The Department of Trade and Industry (the dti) appointed the South African Bureau of Standards (SABS) to serve as the Local Content Verification Agency, in September 2012 and 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 should therefore be utilised to keep off shoddy work and protect businesses from shoddy verification agents. Our message is that the private sector should take it upon themselves to go to the SABS, for them to ensure that verification is done properly.”

Dr Boni Mehlomakhulu the Chief Executive Officer (CEO) of the SABS, said “Public procurement of low quality goods made households unhappy negatively affecting service delivery which is why quality assurance is important in this regard.”

Mehlomakhulu urges the government to insist on localisation on products that are available in the country. She also said that foreign companies in South Africa should be required to transfer the skills and technology which will enable local companies to produce goods on their own.

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