Agrément South Africa Board Annual Report 2006/7
Public Works and Infrastructure
31 October 2007
Meeting Summary
A summary of this committee meeting is not yet available.
Meeting report
PUBLIC WORKS PORTFOLIO COMMITTEE31 October 2007
AGRÉMENT SOUTH AFRICA BOARD ANNUAL REPORT 2006/7
Documents handed out:
Agrément South Africa Briefing to the Portfolio Committee
Agrément South Africa Annual Report 2007
An Analysis of the 2006/07 Annual Report of Agrément South Africa
Business Plan Agrément South Africa 2005/06 – 2007/08
Audio recording of meeting
SUMMARY:
Agrément South Africa briefed the Committee on its Annual Report. It had been formed in 1969, and operated under a delegation of authority from the Minister of Public Works. It was an implementing agency on behalf of the Minister, with the mandate to test innovative, non standardised or unconventional products and building systems for use in the built environment, and issue certificates of fitness for purpose of these products. It aimed to improve quality, improve speed of service delivery, clear inherited backlogs, and fit in with NEPAD and other African Renaissance ideals. The product cycle was outlined, showing its links with the Council for Industrial and Scientific Research and the South African Bureau of Standards, and its involvement during the product life. It was allied with international organisations and its certification was assisting South African firms to be awarded contracts outside South Africa. There was high level of confidence in the certification process. The presenters outlined the organisational structure and the composition of the Board. Key highlights over the past year were tabled, and the impact and achievements of the evaluation were outlined. It was noted that value added included national sustainability, the green buildings initiative, development of emerging entrepreneurs, and superior energy efficiency of some new techniques. The financial statements were tabled very briefly, and it was indicated that there was an unqualified audit report. Future plans included enhancement of the current role, reduction of risk and improvement of cutting edge research.
Members commented that the Report should have contained more detail on the financial statements and the Board, and this was noted. Further questions related to the relationship with the Bureau of Standards, the use of foreign personnel, involvement with peacekeeping projects in Africa, the concerns around global warming, the scope of Agrément’s reporting, relationships with Independent Development Trust and other departments, the reason for the low number of certificates, options for asbestos, and monitoring over certificate holders.
MINUTES
Agrément Technical Agency South Africa (ASA) Annual Report Briefing
Mr Joe Odhiambo, Operations Manager and CEO, Agrément, outlined the operating environment, summarising that Agrément operated under a Ministerial delegation of authority from the Minister of Public Works. It was located in Pretoria, with an office in Port Elizabeth. It was an implementing agency on behalf of the Minister, with the aim to provide assurance to specifiers and users, by issuing certification of fitness for purpose, of non-standardised or unconventional construction of products and building systems. It aimed to improve quality, improve speed of service delivery, clear inherited backlogs, and fit in with New Economic Partnership for Africa’s Development (NEPAD) and other African Renaissance ideals. It was noted that the typical product development cycle would start with research at the Council for Industrial and Scientific Research, and development of technology. The Agrément certification would enter already at this level, and run through market introduction, market acceptance and growth of the produce, through to the time when the South African Bureau of Standards (SABS) developed specifications and listing.
The World Federation of Technical Assessment Organisations (WFTAO), SABS, and ASA all had a performance based approach, looking at the goals and objectives, functions, performance requirements, and evaluation. Agrément South Africa continued to maintain international links with peer organisations and supported the South African construction industry in its export activities by facilitating the certification of innovative South African construction products in foreign countries. Recent research had indicated that South African firms were increasingly being awarded contracts outside South Africa on the strength of their Agrément certificates. This had confirmed the high levels of confidence placed in Agrément certification and boosted the economic development of Africa.
The organisational structure was outlined, indicating the links with the CSIR, and it was noted that there were nine board members, appointed for three years. There was a need for continuity at Board levels, and a need for closer cooperation with the CSIR Built Environment Unit. The Board had a technical committee, and its duties and authority were outlined. Some of the innovative systems certificated in 2006/07 were given. Key highlights were named as increased visibility, human resource development, international standing and recognition, 50% increase in outputs, and new building systems.
Mr Odhiambo tabled the typical scope of the evaluation, and listed the impact and achievements. He set out the ways in which Agrément was contributing to growth, including the growth of knowledge, improvements in project management, interpretative results of the testing and the work of the accredited laboratories, which contributed to the technical infrastructure. Value was added further through the development of national sustainability, the green buildings initiative, development of emerging entrepreneurs, and superior energy efficiency of some new techniques.
Mr Odhiambo then tabled the audited financial statements, which showed the total costs over the last year as R7.45 million. He showed graphs of the employment equity, indicating that 75% of staff were either black or female. He noted that the Agency was managed and reported to the Director of the CSIR Built Environment Unit, that the Board held at least four meetings a year, that its finances formed part of the CSIR finances, and that there was an unqualified audit report. Its future plans included enhancing its present role, preventing substandard construction products from getting into the market, reducing risk and improving cutting edge research.
Discussion
Mr B Radebe (ANC) commented on the nature of the reporting and called for a more robust breakdown of the figures given in the annual report in future. Following his comment, Mr Radebe asked on the stance of South African Bureau of Standards, relative to Agrément South Africa.
Mr Odhiambo said that Members should note that ASA had just moved into the area of repairs, and was concentrated more on innovative systems. Any ordinary product could simply be submitted to the South African Bureau of Standards (SABS).
Mr Radebe also wanted to know how much the Board Members were being paid.
Mr Odhiambo gave the Committee his word that a more detailed Annual Report detailing how much ASA Board Members were paid would be drawn up in future.
Ms C Ramotsamai (ANC) wanted to know how many students from universities were being brought in by Agrément South Africa. She also asked for an indication of the vision of the company up to 2015.
Mr J Blanche (DA) queried why ASA was recruiting from Cuba and not using South African citizens, as there was a large pool of labour locally.
Ms Nozibusiso Shabalala, Board member, Agrément argued that one of the advantages of having other Agrément establishments around the world was that the Board felt it could source from other countries, including Cuba.
She cautioned that the word “labour” did not imply unskilled labour, as Agrément required personnel with first-class technical knowledge, and these were often unavailable locally.
Mr Blanche also asked why ASA was involved in peacekeeping projects in Africa, while it was under a Ministerial delegation of authority from the Minister of Public Works.
Mr Odhiambo noted that in view of the ongoing civil wars across the African continent, Public Works at a ministerial level must take part in carrying out and assisting initiatives by ASA, to help achieve the goals set up by New Economic Partnership for Africa’s Development (NEPAD).
Ms Ramotsamai asked if ASA was concerned with Global Warming.
Mr Kevin Bramwell, Senior Technical Evaluator, ASA, agreed that global warming was an important concern, and pointed out that ASA was tackling the issue with a rather technical approach, citing the fact that systems and software were being developed by the technical unit as a way of addressing the growing concerns.
Mr Blanche asked if ASA actually reported to various provinces as well as the Departments of Roads. Mr Blanche also wanted to know what ASA were doing about gravel roads.
Mr Odhiamho reminded Members that ASA was operating under a ministerial delegation of authority from the Minister of Public Works, and was thus in continued contact with relevant departments and provinces as much as it engaged with this Portfolio Committee.
Mr N Magubane (ANC) pointed out that mud schools could do with more attention from ASA. She asked if the Independent Development Trust and Agrément South Africa had cordial relations or partnerships in working together to eradicate this problem.
Mr Odhiambo stated that ASA had provided information on innovative ideas to address this matter to the concerned departments.
Mr Radebe asked why only 434 certificates had been issued since the company’s inception in 1969.
Mr Odhiambo made it clear to the committee that ASA in essence tested ideas of products brought forward to it. He noted that not many were actually being brought forward.
Mr Radebe asked how ASA tackled inferior catastrophic products in the built environment industry and if there was any consideration around the cheaper asbestos option.
Mr Odhiambo responded that the ever-rising problem of catastrophic inferior products was in fact what had inspired the establishment of Agrément South Africa in 1969. He added that ASA supported the South African construction industry by facilitating the certification of innovative South African construction products, thus placing it in a position to help eradicate the problem. With regard to the possible re-introduction of asbestos products into South Africa, Mr Odhiambo stated that there was ongoing research by the Research Unit on alternative products.
Dr S Huang (ANC) asked about the quality of monitoring over holders of certificates issued by ASA.
Mr Odhiambo replied that each certificate holder was visited by ASA at least once a year.
The meeting was adjourned.