Presentation to the Portfolio Committee on Public Works

1. Presentation to the Portfolio Committee on Public Works AGRÈMENT SOUTH AFRICA BILL, 2015 24 February2015

2. Table of Contents • Introduction • Agrément South AfricaCurrent Objectives • Need to establish Agrément South Africaas a Entity • Agrément South AfricaBill • Objects • Powers • Duty • May… • Certification • Board • Board members – conflict of interest • Funding • Impact of Agrément South AfricaAct

3. 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 Africa`s 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.”

4. 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.

5. 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 government’s 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.

6. 3. Need to Establish ASA as an Entity • Agrément South Africalack 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 Africaclassified as Irregular Expenditure.

7. 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. 24 February 2015

8. 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.

9. 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. .

10. 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.

11. 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 Africacertificate 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.

12. 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.

13. 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.

14. 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.

15. 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.

16. 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.

17. 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.

18. 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.

19. 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.

20. 5. Impact of ASA Act • Agrément South Africawill 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 provideon-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 Africawill 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.

21. 5. Impact of ASA Act…cont… • 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 Africawill ensure SA assessment standards remain internationally accepted - thus facilitating SA exports of products, materials and systems.

22. THANK YOU