SABS Must Urgently Implement Corrective Findings Against Corruption and Maladministration

Statement by Toby Chance MP – DA Spokesperson on Trade, Industry & Competition:

The Democratic Alliance calls on the board of the South African Bureau of Standards (SABS) to immediately implement the findings of the report into governance failures, corruption and maladministration compiled by TSU International. The report, which was delivered to Minister Parks Tau in January, is under consideration, but it is evident the findings paint a picture of severe organisational dysfunction over several years.

The committee heard from Deputy Minister Alexandra Abrahams that the TSU report contained sensitive information on whistleblowers and that Minister Tau was committed to present its key findings to the committee as soon as possible.

The report evidently implicates former Acting-CEO Lizo Makele and COO Lungelo Ntobongwana, both of whom have been on precautionary suspension since July 2025. The SABS has not had a permanent CEO since July 2018 and the board has initiated the recruitment of a new CEO to replace Mr Blake Mosely-Lefatoa, who is acting in that role until July this year.

Chairperson Professor Bismark Tyobeka was frank in admitting that he and the new board inherited a broken organisation suffering from poor operational performance, low morale, internal strife, gossip and conspiracies. These contributed to an operating margin of -15.2% in the first three quarters of the 2025/2026 financial year, indicating the organisation is losing money in its core operations.

The most critical weakness lies in the Certification Division, which makes sure that the products South Africans buy comply with local and international standards. This division is underperforming by R32.5 million against its quarter 3 budget, with little prospect of recovery.

The November 2024 ransomware cyber-attack on core SABS systems crippled the organisation and resulted in critical management reports and financial data being lost. These were only restored in October 2025, enabling the SABS to produce a set of accounts which are currently being audited by the Auditor General.

Just as concerning are the dire consequences of years of under-investment in new equipment to retain the 28 SABS laboratories’ competitiveness in the face of other standard bodies snapping at it heals. The committee heard that a minimum of R2,1 billion is required to bring the labs up to standard. The DA is somewhat reassured that the board has decided to obtain this funding from a variety of sources without placing an undue fiscal burden on government.

According to Professor Tyobeka, as steps are taken to stabilise the organization, it has been moved from ICU to High Care. The patient is clearly still in deep distress and needing major surgery. Urgent intervention is required.

Without a credible turnaround strategy and strengthened accountability, SABS risks further financial decline and loss of credibility as South Africa’s national standards authority.