STATE-OWNED COMPANIES
Rob Davies wants tougher sanctions for not buying local
Trade and Industry Minister Rob Davies is concerned about the implementation of the state’s localisation policy and wants it to be enforced more strictly. Talks have been held with the auditor-general’s office over noncompliance with procurement legislation being made an audit finding and for consequences to follow on it for those responsible, such as CEOs of state-owned firms and accounting officers of departments. The policy aims to encourage local manufacturing. To this end, the government has designated about 20 products that departments and state-owned enterprises are obliged to procure from local firms, including steel, bus bodies, clothing, textiles, footwear, electricity and water meters, valves and high-voltage transformers. Addressing a media briefing on Tuesday, Davies pointed out that once the designations had been published by the Treasury, noncompliance was no longer an option. He noted that localisation did not mean the company could not be foreign-owned as long as pr...
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