S&V Weekly Newsletter Vol.8 No.15, April 11 2022
Please note: Click on any ad to go to the advertiser’s website
Alarm among manufacturers as Treasury looks to drop local sourcing rules for state tenders
Pretoria, Gauteng, SA – Affected parties have until today to submit comments on the National Treasury's Draft Preferential Procurement Regulations, which drop B-BBEE and local manufacturing, and a number of other rules, from requirements for tenders to supply all levels of government.
This follows several court rulings by the Supreme Court of Appeal and the Constitutional Court that these requirements are unconstitutional, following challenges to the regulations by Afribusiness, "a non-profit organisation representing about 10 500 members in the business community" [http://www.saflii.org/za/cases/ZASCA/2020/140.html]
Its challenge was aimed at the Black Economic Empowerment component of the existing procurement regulations, but the result has been that the proposed new regulations drop a much broader set of requirements.
The requirements which have been omitted from the draft regulations are:
B-BBEE status;
Regulations providing for local production and content;
Provisions for evaluation on functionality;
Regulations providing for subcontracting after the award of a tender;
Regulations providing for cancellation of tenders;
Regulations providing for prequalification for preferential procurement;
Regulations providing for subcontracting as a condition of tender;
Regulations providing for the issuance of circulars and guidelines;
An alliance of manufacturers, unions and the Department of Trade, Industry & Competition is opposing the proposed new regulations.
On 31 March, in an article headlined Is National Treasury serious about job creation?, Proudly South African CEO Eustace Mashimbye wrote:
"In an environment fraught with controversy but which has until recently been regulated to make the process as fair and transparent as possible, public procurement has now descended into a free for all that is threatening gains that have previously been made in the protection of local businesses and local jobs.
"A series of court rulings by the Supreme Court of Appeal and now the Constitutional Court in a case brought by Afribusiness NPC against National Treasury has left uncertainty and confusion for public entities who need to procure all manner of items for their operational needs.
"The crux of the case lies with B-BBEE regulations and the permissibility of pre disqualification of any bidder for a government tender that does not fulfil the minimum 51 percent black ownership criteria.
"But ironically, black economic empowerment is not the only casualty in this mess. Localisation is too."
On 25 February, in response to a Concourt ruling which further muddied the legal waters, National Treasury issued a directive to all government agencies that any tender issued before 16 February 2022 should proceed in accordance with existing PPPFA and that any tender issued after that date should be held in abeyance, and no further tenders should be issued until clarification was received from the apex court on the validity - and suspension - of the terms of the PPPFA.
"Subsequently, on 3 March, National Treasury issued a further advisory that public sector procurement could resume, with entities free to use their own procurement criteria and advising them that they could apply to Treasury for exemption of any of the specific clauses of the current regulations, including from local content requirements.
"To add insult to injury, new regulations have been drafted and are currently out for public comment, and all local content provisions that used to be included in the PPPFA have been omitted, with the Treasury presumably trying to avoid another legal wrangle as a result of this.
"As Proudly South African, we are asking how serious are we are as a country about job creation if some of us question a programme of public sector local procurement that is going to sustain jobs and create much needed new job opportunities.
"Who is benefiting from the current status quo if a possibility exists of a legal challenge against the inclusion in the regulations of mandatory local procurement?
"Certainly not the masses who are losing their jobs as a result of the influx of imported products supplied to the state.
"How can National Treasury be serious about job creation when their clearly cautious proposal for new public sector procurement legislation flies in the face of the work of the dtic and of Master Plans that have been drafted in a number of sectors, with the inputs of government, organised labour and private sector stakeholders – all of which are designed to protect local jobs?
"Dumping local content as one of the selection criteria for awarding a tender will set the buy local movement back immeasurably.
"The Economic Recovery and Reconstruction Plan that has been drawn up in partnership with the government includes local procurement as one of the key drivers of that recovery and cannot be ignored.
"This cautious stance by National Treasury is jeopardising the success of the plan by disregarding those 28 items that have been designated for compulsory local procurement and all other localisation considerations that apply.
"Already, Transnet, whose procurement record is one that many might question, has issued a memo stating that “Transnet will no longer be using preference during this period of exemption, that negotiations will continue to be applied for market-related pricing and any other opportunity where Transnet can achieve cost savings and that tenders will not be issued with local content requirements for designated sectors.”
"This is just one policy that has been widely shared. What about the rest of the entities?
"This opens the door for cheap imports, which will ring the death knell for local businesses.
"The injustice of the proposed amendments to the PPPFA (2000) cannot be permitted, and we urge all local businesses to take a stand and make objections to the proposals that are currently on the table. Buy local to create jobs!
"We all have to rally behind efforts aimed at turning the economy around and remember that for the masses in this country, economic emancipation still remains a dream.
"Like Mama Letta Mbulu said in her hit song, we are “Not yet uhuru”, as millions of us are still not free from poverty."
Claw Boot hit by small army in robbery
Johannesburg, Gauteng, SA – Claw Boot International was hit by an armed robbery, carried out by over 20 men, on Friday, 01 April. "At approximately 9 am, 3 men entered our offices on the pretext of collecting an order," wrote Lu-Marie Fraser, who works in sales and procurement."On being questioned, they split up and cornered 3 staff members, produced their guns and told us not to raise the alarm. They herded us into an office while other men forced our warehouse staff to lie on the floor. They then opened the gates for about 20 armed men to enter in a huge truck.
"They loaded the truck with all manner of stock, laptops, cell phones, jewellery, a generator etc. Customers who entered were also herded into the office or forced to help load along with Claw staff. A supplier also arrived and the contents of their van was stolen, along with a customer’s vehicle. The nightmare lasted for an hour.
"Stock worth over R1 million was stolen, but fortunately most was insured.
"All the victims are receiving ongoing counselling, but it is a sad day when we feel blessed that nobody was hurt!
"The Claw Boots family would like to thank all our loyal customers and suppliers for their concern and support. We will be up and running in no time and have been assured of stock availability within a matter of days.
"We felt it necessary to warn as many businesses as possible in an endeavour to prevent this from happening to others in the industry."
United Agencies takes over former Apeco synthetic materials principal
Durban, KZN, SA – United Agencies has taken over Apeco's Chinese synthetic upper and lining principal, Godfreys Enterprises Corporation, and former Apeco director Rajesh Kulwa, who handled Apeco's synthetic upper materials sales, has joined United in the same role.
United has a sole distribution agreement with Godfreys, and will be both a stockist and a direct indent agent.
United member Ajay Singh said it was United's first venture into upper materials. Until now it has concentrated on threads, tapes, insole materials and grindery.
He said the first container was expected in May.
Death notice
Durban, KZN, SA – Hans Beier, Chairman Emeritus of the Beier Group, died on Thursday, following injuries sustained in a cycling accident on 01 April, according to a statement by the group.
An obituary will follow in the May issue of S&V Footwear & Leather Goods.
In case you missed it!
The April issue of S&V African Leather Magazine
S&V African Leather Magazine Vol16 No4 April 2022
IN THIS ISSUE:
03 Upfront
- A new quip from Sam Setter in each issue.
- World Leather Day: Fighting the good fight.
04 An Eclectic View
- Cactus and Leather: No material exists that can claim to be perfectly sustainable and offer the best performance, writes H. Procter.
07 Tanning Science Decoded
- Synthesis of a formaldehyde-free resin for retanning leather that is more environment friendly: A review by Dr Clive Jackson-Moss.
09 Weights & Measures
- Compiled by the ISTT.
11 Trade Statistics
- Imports and exports for February and year-to-date from SARS.
12 Sector Reports
- Crafters & hobbyists: Contributions from
- Denzil Spolander, African Gameskin.
- Richard Harris, Woodheads.
- Clive Jackson-Moss, The Leather Shop.
- Brian Zyster, Tanielz Leather Products.
- Game skins: Preparations for COP19 - a detailed report from the CITES 74th Standing Committee held in France in March.
20 Chemicals
- Buckman announces price increases - and others follow suit.
20 Fairs & Events
- SLTC UK Conference: Virtual option for African delegates.
- III IULTCS EuroCongress: Scientific Committee to evaluate abstracts.
- III IULTCS EuroCongress: More sponsorships.
- APLF Dubai: Reports from Arno Albertyn, CKI, Gert Kruger, Mossop Leather, Sebastian Jonker, OPSA, and Vidrik Thurling, Thurling Investments.
24 Agriculture
- Building a stronger, more inclusive agriculture sector in SA, by Gert Breet, FNB Agriculture.
- An impressive rebound in agriculture GDP in 4th quarter 2021, by Paul Makube, FNB Agriculture.
25 Knowledge Transfer, Education & Training
- UNIDO launches on-line course: Introduction to Leather Testing. - Winners of 2022 IULTCS Young Leather Scientist Grants for Research announced. - Making leather, Part 3 of 10: The introduction of new materials and extension of the structure, by Richard Daniels.
Advertisers in this Issue
ISTT (02), Italtan (14), Mimosa (06), Rolfes Leather Division (10), S&V Calendar (01), S&V Directory (16), Saddler Belt (08), Southern African Footwear & Leather Export Council (SAFLEC) (05), Stahl (OFC), Woodhead's (12).
CLICK HERE TO VIEW IT ONLINE
They Said It
Got anything you'd like to share?
Do you have any suggestions, comments or experiences about the industry that you'd like to share with the industry? - tony@svmag.co.za
11/04/1976: Janine Govender, Nikkita Footwear, Durban, KZN, SA.
11/04/1997: Roberta Johnson, Chillisource, Durban, KZN, SA.
12/04/1922: Harry Hoyte, retired, formerly Hoyte Shoes/agent, Durban, KZN, SA.
12/04/1968: Kobie Koen, Vellie Boutique, Boksburg, Gauteng, SA.
13/04/1970: Jason Wilkins, agent/retailer, Johannesburg, Gauteng, SA.
13/04/1976: Gareth Kemp, Apollo Brands, Cape Town, W. Cape, SA.
14/04/1946: Pierre Lailvaux, formerly Service Agencies [closed], Durban, KZN, SA.
14/04/1955: Bharatlal Ranchod, Ramjee's Shoe Store, Klerksdorp, NW Province, SA.
15/04/1928: Des Scott, retired, founder, Scotts [closed], Durban, KZN, SA.
15/04/1971: Jacques Ergas, Red Planet Shoes, Cape Town, W. Cape, SA.
16/04/1952: Russell Lochner, agent, Johannesburg, Gauteng, SA.
16/04/1954: Lynn Sukool, Devan's Footwear Agency, Durban, KZN, SA.
17/04/1948: William James Mail, Norton Wellworth Agencies, Johannesburg, Gauteng, SA.
17/04/1957: Colin Battle, agent, Port Elizabeth, E. Cape, SA.
17/04/1971: Newald Groenewald, Le Croc Tannery, Brits, N.W. Province, SA.
In Memoriam this week
13/04/2014: Theuns JK Viljoen (b. 25/12/1942), Divac, George, W. Cape, SA.
14/04/2015: Neville Horwitz (b. 25/11/1932), agent, Johannesburg, Gauteng, SA.
16/04/2016: Barrie Walsh (b. 19/03/1949), Eddels Shoes, Pietermaritzburg, KZN, SA.
17/04/2021: Mike Peterkin (b. 30/08/1945), agent, Johannesburg, Gauteng, SA.
Have you let us know about your birthday, or the birthdays of your colleagues? Our readers love this section, so please become part of it. This also applies to the In Memoriam section. Help us remember former colleagues.
3. Malawian Kwacha (MWK)
Source: https://www.xe.com/currencyconverter/
|
Euro € |
GBP £ |
US $ |
CNY ¥ |
09/04/2022 |
881.73 |
1056.72 |
810.67 |
127.38 |
4. Zambian Kwacha (ZMW)
Source: https://www.xe.com/currencyconverter/
|
Euro € |
GBP £ |
US $ |
CNY ¥ |
09/04/2022 |
19.09 |
22.88 |
17.55 |
2.75 |
5. Zimbabwean Dollar (ZWL$)
Source: https://www.xe.com/currencyconverter/
|
Euro € |
GBP £ |
CNY ¥ |
Official US$ |
09/04/2022 |
393.61 |
471.73 |
56.86 |
145.87 |
ABSA Agri Trends: Hides & skins prices
Johannesburg, Gauteng, SA (07 April 2022) - The current average hide price increased by 1.4% to R6.92kg from R6.83kg a week ago. The current price is 0.9% higher than the average price a month ago and is 22.1% lower than the average price a year ago. The range of prices reported was as follows: Minimum price: R6.50 Maximum price: R7.00. Please note: Our methodology weighs the prices we collect according to the number of hides they sell in a month. This is done to make it more representative of the prevailing market price. NB* Hide prices are determined by the average of the RMAA (Red Meat Abattoir Association) and independent companies. - Marlene Louw, senior agricultural economist, and Nkhensani Mashimbyi, agricultural economist, Absa group.
Note: For previous prices, see HERE
Directory entries updated last week
Ms Hoity Toity, Bellville, W. Cape, SA.
United Agencies, Durban, KZN, SA.
Urban Mania, Cape Town, W. Cape, SA.
New subscribers last week
Zolani Ngange, Vermont Leathercraft, Johannesburg, SA.
Damien Nash Reddy, Planet Events, Durban, SA.
Rodrick, Veneko, Kempton Park, Gauteng, SA.
Kerri Baigent, Earth Gear, Johannesburg, Gauteng, SA.
Have a look at these links
We invite businesses to send us links to websites, Facebook pages and the like which they feel would be of interest to others. The links below are from our database:
Hannitan Leather, Springs, Gauteng, SA. Furniture leather tannery.
Harbour Bay, Plettenberg Bay, W. Cape, SA. Women's boutique.
Classified Adverts
SECOND HAND THICKNESS GUAGES FOR SALE
R750 each excl VAT.
Contact Clive Jackson-Moss
082 926 1023
(selling on behalf of someone else)
Laces for sale
@ 60% of the original prices!
Colour |
Length |
No of |
Original |
Discounted |
|
in cm
|
pairs
|
price
|
price
|
Sea green |
150 |
243 |
R6.30 |
R2.52 |
Sea green |
120 |
447 |
R7.45 |
R2.98 |
Dark green |
100 |
3463 |
R5.84 |
R2.34 |
Yellow |
90 |
773 |
R5.84 |
R2.34 |
Tan |
90 |
1289 |
R5.84 |
R2.34 |
Brown |
125 |
1200 |
R7.45 |
R2.98 |
Brown |
150 |
500 |
R6.30 |
R2.52 |
Red |
130 |
1572 |
R7.45 |
R2.98 |
Red |
60 |
1327 |
R2.66 |
R1.06 |
Red |
100 |
3154 |
R5.84 |
R2.34 |
Red |
150 |
99 |
R6.30 |
R2.52 |
Green assorted |
150 |
2262 |
R6.30 |
R2.52 |
Green assorted |
120 |
3957 |
R7.45 |
R2.98 |
Green assorted |
100 |
2300 |
R5.84 |
R2.34 |
Grey |
90 |
1290 |
R5.84 |
R2.34 |
Grey |
60 |
3087 |
R2.66 |
R1.06 |
Grey |
45 |
240 |
R1.47 |
R0.59 |
Yellow assorted |
130 |
689 |
R7.45 |
R2.98 |
Yellow assorted |
150 |
112 |
R6.30 |
R2.52 |
Maroon |
100 |
917 |
R5.84 |
R2.34 |
Maroon |
60 |
368 |
R2.66 |
R1.06 |
Maroon |
150 |
119 |
R6.30 |
R2.52 |
Maroon |
45 |
386 |
R1.47 |
R0.59 |
Black |
45 |
1500 |
R1.47 |
R0.59 |
Light green |
60 |
1345 |
R2.66 |
R1.06 |
Light blue |
60 |
200 |
R2.66 |
R1.06 |
Grey assorted |
125 |
268 |
R7.45 |
R2.98 |
Grey assorted |
130 |
58 |
R7.45 |
R2.98 |
Grey assorted |
150 |
751 |
R6.30 |
R2.52 |
Red assorted |
100 |
28 |
R5.84 |
R2.34 |
|
|
|
|
|
Contact Helene Pietersen at Strassbergers for further information: helene@strassbergers.co.za?subject=Laces for sale
Contact us
News & Classifieds: Tony Dickson, +27 (0)31 209 7505, tony@svmag.co.za
Next newsletter: April 18, 2022.
SAFLIA enquiries: Tel 0800SAFLIA * Email info@saflia.co.za * Website http://www.saflia.co.za
Our website www.svmag.co.za
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