Page 60 of 91 ANNEXURE B: COMPLIANCE INVESTIGATION UNIT – STAKEHOLDER PROPOSAL FOR CONSIDERATION Objectives 1. To ensure that South African production is used wherever possible for designated steel and steel products which are being procured by organs of the State. 2. To identify cases where there is a contravention of the designation and to recommend to the DTIC what steps should be taken, including prosecution where appropriate 3. To identify patterns of behaviour which undermine local production and the system of designation. 4. To stop illicit imports – under-invoicing and mis-declaration. Method 1. Establish a database to which the industry and whistle-blowers can send confidential reports. 2. Support SARS to stop illicit imports: SARS to decide what they can accept as support. 3. Track tenders which include the procurement of steel and steel products by organs of State, including especially the SOEs, the municipalities, the Water Boards and departments of government. 4. Track where steel and steel products which have been designated for local production are being procured through these tenders or others means. 5. Track where steel and steel products which can be produced in South Africa, whether or not they have been designated by the DTIC have been imported (even where an exemption has been provided) 6. Where designated products have been imported, scrutinize the design and specification of the products and the context in which they are being used in order to determine whether or not the specifications which exclude South African manufacturers are necessary, bona fide and legitimate. 7. Analyse the value chain, local value added and margins in the procurement of imported steel and steel products which have been designated. 8. Where anomalies are detected in any of these processes, report to the DTIC with recommendations for action. Actions may include reporting to the DPE, COGTA or SARS, prosecution or recommending to the National Treasury that firms be blacklisted for State procurement. 9. Recommend to the DTIC from time to time which products should be subject to new designations or revised designations. Resources 1. Inspectors with long experience in the steel and engineering industry. 2. Investigators including investigators with experience in financial investigations. Annexure B COMPLIANCE INVESTIGATION UNIT – STAKEHOLDER PROPOSAL FOR CONSIDERATION
3. A design engineer. 4. A system engineer.
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The South African Steel and Metal Fabrication Master Plan 1.0
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