The department of trade, industry & competition (DTIC), central to advancing South Africa’s industrial policy and consumer protection, has nearly half of its 20 reporting entities led by acting heads — with some going more than six years without permanent CEOs.
In the case of the South African Bureau of Standards (SABS), responsible for developing and maintaining standards and certifying products or services, the CEO vacancy has stretched into its eighth year, spanning three ministers: Rob Davies, Ebrahim Patel and Parks Tau.
The SABS’s leadership instability began in 2018, when then-minister Rob Davies placed the entity under administration after finding its performance in preventing substandard and unsafe products from entering the local market inadequate.
The organisation has not had a permanent CEO since, despite exiting administration in December 2022.
Scrutiny of the entity has remained intense, with acting roles not helping the situation.
Last year, the SABS placed COO Lungelo Ntobongwana and chief corporate services officer Lizo Makele on suspension. Both had previously served as acting CEOs and were implicated by whistleblowers in allegations relating to staff suspensions, operational failures and a cyberattack.
Upon assuming office, the new leadership was, among other things, briefed on vacancies within the department and its entities. Recognising the undesirable nature of the situation, a commitment was made to prioritise leadership stability across the department and its entities
— Bongani Lukhele, DTIC spokesperson
Another DTIC entity without a permanent CEO for an extended period is the South African National Accreditation System (Sanas), the country’s sole body responsible for accrediting conformity assessment bodies — including laboratories, inspection bodies and certification bodies.
The National Credit Regulator, National Consumer Commission, National Gambling Board, National Regulator for Compulsory Specifications, Export Credit Insurance Corporation of South Africa (ECIC) and Takeover Regulation Panel (TRP) are also led by acting appointees.
The ECIC — established to provide political and commercial risk insurance to help South African exporters secure foreign contracts — also does not have a permanent COO.
The Competition Commission has senior vacancies too, including two deputy commissioners and the divisional head responsible for market inquiries.
DTIC spokesperson Bongani Lukhele said that though acting CEOs have been appointed to certain positions, the leadership of the country’s seventh administration has made clear its “discomfort” with some entities lacking permanent heads.
“Upon assuming office, the new leadership was, among other things, briefed on vacancies within the department and its entities. Recognising the undesirable nature of the situation, a commitment was made to prioritise leadership stability across the department and its entities,” Lukhele said.
Some of these positions have been vacant for years — for example, the SABS since 2018 and the National Gambling Board since 2014. This has contributed to organisational instability, dysfunction and low performance, as well as deteriorating staff morale
— Toby Chance, DA trade & industry spokesperson
“The minister [Tau] is currently finalising appointments for the CEO of the National Credit Regulator and the ECIC, which will soon be presented to cabinet. Interviews for the CEO of the National Regulator for Compulsory Specifications are scheduled for May 11.”
Lukhele said consultations were under way between Tau and the finance minister regarding the conditions of appointment of the TRP executive director. Meanwhile, the boards of Sanas and the SABS were actively engaged in recruitment processes for their respective CEOs.
Under Tau’s tutelage, the department had filled the position of director-general of the department, as well as board positions at the SABS, Sanas and the Industrial Development Corporation, he said. The boards of the Non-Proliferation Council, the ECIC, the National Lotteries Commission Distributing Agency, the National Empowerment Fund, and the Takeover Regulation Panel had also been appointed.
Toby Chance, the DA’s trade & industry spokesperson, said it was unacceptable that several of the department’s entities were led by acting heads.
“Some of these positions have been vacant for years — for example, the SABS since 2018 and the National Gambling Board since 2014. This has contributed to organisational instability, dysfunction and low performance, as well as deteriorating staff morale,” he said.
“These positions require the appointment of skilled and professional individuals with unblemished career histories. The entities’ boards and minister Tau must resist the temptation to exert political influence over the appointments and over the new incumbents’ day-to-day management of the organisations they are entrusted to lead.
“This will likely increase the pool of applicants for the positions and avoid the tendency for ANC cadres to take precedence over more deserving candidates. The DA will continue its vigilant oversight of the appointments process to ensure the best candidates are selected.”
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