Presentation to the Portfolio Committee on Public Works

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Presentation to the Portfolio Committee on Public
Works

• AGRÈMENT SOUTH AFRICA BILL, 2015 24
  February2015

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Table of Contents

• Introduction
• Agrément South Africa Current Objectives
• Need to establish Agrément South Africa as a
  Entity
• Agrément South Africa Bill
• Objects
• Powers
• Duty
• May
• Certification
• Board
• Board members conflict of interest
• Funding
• Impact of Agrément South Africa Act

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1. Introduction

• Agrément South Africa (ASA) was established by
  the Minister of Public Works in 1969, through a
  delegated authority.
• Agrément South Africa is mandates to support and
  promote the process of integrated socio-economic
  development in South Africa as it relates to the
  construction industry by facilitating the
  introduction, application and utilisation of
  satisfactory innovation and technology
  development, in a manner which will add value to
  the process and by so doing enhance Agrément
  South Africas position as the internationally
  acknowledged, objective South African centre for
  the assessment and certification of innovative
  non-standardised construction products, systems,
  materials, components and processes, which are
  not fully covered by a South African Bureau of
  Standard standard or code of practice.

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2. ASA Current Objectives

• Serve specifier and user interests by providing
  assurance of fitness-for-purpose and value for
  money of innovative, non-standardised
  construction technology as well as ongoing
  quality assurance.
• Work with the construction sector to facilitate
  the introduction of cost effective innovative,
  non-standardised construction technology.
• Disseminate correct, objective and relevant
  information to all concerned in respect of the
  technical, socio-economic, and regulatory aspects
  of innovative, non-standardised construction
  technology.
• Support policy makers at all levels and minimize
  the risk associated with the use of innovations.

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2. ASA Current Objectives ..cont

• Support the application of the National Building
  Regulations.
• Maintain links with international peer
  organizations and support the South African
  construction industry in its export activities by
  facilitating the approval of South African
  innovative construction products in foreign
  countries.
• Facilitate the acceptance of innovative products
  within the context of the governments new
  priorities and policies.
• Serves a national interest by being
  internationally acknowledged as an objective and
  independent South African centre serving the
  building and engineering communities by providing
  assurance to specifiers and users via technical
  approvals for the fitness-for-purpose of
  innovative, non-standardised construction
  technology.

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3. Need to Establish ASA as an Entity

• Agrément South Africa lack of legal status-
• Dependent on Council for Scientific Industrial
  Research (CSIR) to fulfil its administrative
  requirements and to manage its technical agency.
• Dual reporting to Dept of Public Works and Dept
  of Science Technology.
• AG Report Transfers to Agrément South Africa
  classified as Irregular Expenditure.

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4. ASA Bill Objects

• Provide assurance to specifiers and users of the
  fitness-for-purpose of non-standardised
  construction related products.
• Support and promote the introduction and use of
  certified non-standardised construction related
  products or systems in the local or international
  market
• Support policy makers to minimize the risk
  associated with the use of a non-standardised
  construction related product or system.
• Be an impartial and internationally acknowledged
  South African centre for the assessment and
  confirmation of fitness-for-purpose of
  non-standardised construction related products or
  systems.
• Support and promote the process of integrated
  socio-economic development in the Republic as it
  relates to the construction industry.

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4. ASA Bill Powers

• Assess and certify the fitness-for-purpose of a
  non-standardised construction related products or
  systems.
• Issue, amend, suspend, reinstate, withdraw or
  renew an Agrément Certificate.
• Exercise any other power as may be prescribed or
  necessary to achieve the objects of Agrément
  South Africa.
• Provide services in relation to the objects of
  Agrément South Africa to a person, entity or
  organ of state.

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4. ASA Bill Duties

• Develop any rules, processes, procedures,
  criteria or guidelines necessary to achieve the
  objects of Agrément South Africa and the
  execution of its duties.
• Monitor and evaluate the quality management
  systems of a certified construction related
  product or system, in its manufacture,
  application, installation or erection processes.
• Communicate relevant information to stakeholders
  in respect of the technical, socio-economic and
  regulatory aspects of a non-standardised
  construction related product or system certified
  by Agrément South Africa.
• Support and promote the introduction and use of
  certified non-standardised construction related
  products or systems.
• Open and operate a banking account in the name of
  Agrément South Africa.
• Establish and maintain international links with
  peer organizations.
• Encourage research and development of
  non-standardised construction related products or
  systems.
• .

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4. ASA Bill - May

• Acquire or dispose of property or a right in
  respect thereof.
• Immovable property may only be acquired or
  disposed of with the prior written consent of the
  Minister.
• Invest its funds not immediately required.
• Determine, charge and collect fees for any
  services rendered and product and document
  produced.
• Institute or defend legal action.
• Charge interest in respect of money due to it.
• Grant a person, entity or organ of state an
  exemption from the payment of any fee, or a
  portion thereof.

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4. ASA Bill - Certification

• Agrément South Africa must make rules to
  determine processes and procedures with regard to
  issuing, amendment, suspension, reinstatement,
  withdrawal or renewal of the certificate.
• Agrément South Africa certificate is valid for
  three years.
• subject to conditions of certification and to
  changes in the law.
• Agrément South Africa may amend, suspend or
  withdraw a condition stipulated in the Agrément
  Certificate.
• It is an offence for a person to falsely
  represent that a construction related product or
  system is certified by Agrément South Africa, if
  an Agrément Certificate has not been issued for
  such product or system or if such certificate has
  been suspended or withdrawn.
• The Agrément South Africa certificate must be
  renewed at least three months before expiry.
• However, late applications may be condoned.
• Agrément South Africa must establish and maintain
  a register of the applications rejected and
  certificates issued, amended, suspended,
  reinstated, withdrawn and renewed.

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4. ASA Bill - Board

• The Board is the Accounting Authority appointed
  by the Minister.
• Minimum of seven members but not more than eleven
  members and the Chief Executive Officer by virtue
  of his or her office.
• Board members will hold office for a period not
  exceeding three years
• May not serve more than two consecutive terms.
• Selection Committee appointed by the Minister to
  recommend Board Members for appointment.
• Chairperson is appointed by the Minister.

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4. ASA Bill - Board

• Experience and expertise of Board members
• in construction, particularly as it relates to
  innovation, infrastructure development, housing,
  quality assurance and certification
• business management, finance, law or marketing
• international or foreign standardization and
  technical infrastructure matters or
• the application of the construction regulations
  and the enforcement thereof.
• Board members should possess specialist knowledge
  on (in relation to the construction industry)
• organs of state regulating the construction
  industry
• providers of buildings and infrastructure,
  including materials and
• products
• relevant technical, scientific and professional
  institutions and associations and
• relevant community based structures, including
  non-governmental organisations.

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4. ASA Bill Board Disqualification

• Not a South African citizen and ordinarily
  resident in the Republic.
• An rehabilitated insolvent, whose insolvency was
  caused by his or her negligence or incompetence.
• Employed by Agrément South Africa as a consultant
  in the past three financial years.
• Is a supplier or customer, has a contractual
  relationship with or is a professional advisor to
  Agrément South Africa.
• A person removed from an office of trust on
  account of misconduct.
• Declared by a court to be mentally ill or unfit.
• A person who has been convicted
• in South Africa of an offence other than an
  offence committed prior to 27 April 1994,
  associated with political objectives, and was
  sentenced to imprisonment without the option of a
  fine, or, in the case of fraud or corruption, to
  a fine or imprisonment or both and
• in a foreign country of an offence, which is also
  an offence in South Africa, and was sentenced to
  imprisonment without an option of a fine or, in
  the case of fraud or corruption, to a fine or
  imprisonment or both.
• In terms of this Act or any Act regulating his or
  her profession found guilty of unprofessional
  conduct.

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4. ASA Bill Vacation of Office

• The Minister may terminate membership of a member
  of the Board if the member
• fails to perform his or her functions as a member
  of the Board
• obstructs, impedes or unduly influences a member
  of the Board, the Chief Executive Officer or a
  staff member of Agrément South Africa in the
  exercise of a power or the performance of his or
  her duties in terms of this Act
• fails to declare a conflict between his or her
  interests and those of Agrément South Africa
• acts in a manner that is likely to bring Agrément
  South Africa and the Board into disrepute
• misuses or misappropriates Agrément South Africa
  funds or resources or
• approves or engages in unauthorised or irregular
  expenditure or fruitless and wasteful
  expenditure.
• The Minister may dissolve Board
• If the board fails to perform its obligations
  under this Act or PFMA, or
• Following an investigation and wrong doing is
  found.

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4. ASA Bill Board Meetings, Committees
Remuneration

• Board must meet at least four times a year.
• The Chairperson may convene Special Board
  Meetings.
• The Board may establish dissolve committees.
• Remuneration allowances shall be determined by
  the Minister, in concurrence with the Minister
  responsible for finance.
• Members of the Board in the employ of the State
  (receive a salary from public funds) shall be
  reimbursed for out-of- pocket expenses only.

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4. ASA Bill Board Members - Conflict of
interest

• A member of the Board
• may not have a conflict of interest with Agrément
  South Africa.
• may not directly or indirectly enter into a
  contractual relationship with Agrément South
  Africa for the supply of any goods or services,
  during and for a period of two years following
  the lapse or termination of his or her term of
  office.
• is obliged to recuse himself or herself from the
  meeting during the discussion and voting of the
  matter in which he or she has an interest.

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4. ASA Bill CEO Staff

• The Board shall appoint a suitably qualified,
  experienced and competent person as the CEO.
• The CEO holds office for a period of 5 years and
  may be reappointed.
• The CEO
• is accountable to the Board with regard to the
  functions assigned or delegated to him or her in
  terms of this Act or by the Board
• must manage and control the daily activities of
  Agrément South Africa, in accordance with the
  business and financial plans of the Board and
• may not, during and for a period of two years
  following the lapse or termination of his or her
  period of appointment, directly or indirectly
  enter into a contractual relationship with
  Agrément South Africa for the supply of any goods
  or services.
• The CEO must, after consulting the Board, appoint
  staff to enable Agrément South Africa to
  effectively execute its functions.

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4. ASA Bill Delegation Funding

• The Board may delegate any of its powers in terms
  of this Act, except the power to make rules under
  section 27, to the Chief Executive Officer, a
  committee, a staff member or a member of the
  Board.
• The CEO may delegate any of his or her powers in
  terms of this Act, to a staff member.
• The funds of Agrément South Africa consist of
• moneys appropriated by Parliament.
• income derived by virtue of the exercise and
  performance of its powers and duties.
• donations or contributions.
• any other income, including interest earned on
  any investment made.

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5. Impact of ASA Act

• Agrément South Africa will act independently as
  it will be legislatively empowered to enforce its
  mandate and conclude agreements on its own.
• Easier introduction of Agrément South Africa
  regulation to provide on-going quality assurance
  of a product, material and system in the
  construction industry for which a standard does
  not exist.
• DPW would enhance its oversight role through the
  Board and compliance with PFMA and Treasury
  Regulations.
• Agrément South Africa will be accountable to DPW
  only, and no longer to the CSIR/DST.
• Irregular expenditure concerns raised by the AG
  will be addressed.
• Agrément South Africa will effectively promote
• the value of certification of non-standard
  construction materials systems, and
• innovation, local manufacturing and job creation.

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5. Impact of ASA Actcont

• Increased availability and reliability of
  non-standard construction products and systems
  will lower construction costs for the public and
  private sectors.
• Through international engagements, Agrément South
  Africa will ensure SA assessment standards
  remain internationally accepted - thus
  facilitating SA exports of products, materials
  and systems.

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• THANK YOU