Solar Manufacturer ARTsolar Gagged a Reporter. So We Asked the Owner Some Tough Questions

Solar panel company ARTsolar has been in the news for obtaining a gag order against a journalist and whistleblowers.

ARTsolar, a Durban-based company, has been in the news for the past few weeks because it obtained a gag order against journalist Bongani Hans and three whistleblowers.

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The company’s website states: “As a local manufacturer / assembler of solar PV modules (solar panels) and distributor of solar related products, we are equipped to provide you with world class products that are internationally certified, locally certified and are locally guaranteed.”

At issue appears to be whether and to what extent ARTsolar’s solar panels are locally manufactured versus imported from China, and the fact that the Industrial Development Corporation (IDC) financed the company for approximately R90-million.

We sent questions to ARTsolar’s Chairman Bebinchand Seevnaryan. Below is the interview, very lightly edited. But a concern we have is that because of the gag order, which is still in place, the whistleblowers are prevented from giving us their views on this interview, which is a serious breach of freedom of expression.

GroundUp: Did ARTSolar receive R90-million from the IDC?

ARTsolar: ARTsolar and the IDC have concluded a written finance agreement. In terms of that agreement a sum of approximately R90-million was to be advanced for the purpose of acquiring and commissioning a manufacturing plant. In the IDC’s affidavit it confirms all the funds were used for their intended purpose. The agreement does not contain any term by which ARTsolar is obliged to manufacture any quantities of panels locally. Neither does it contain any restriction on the source of panels. Thus not one cent of borrowed funds were used for a purpose not intended by both ARTsolar and the IDC. ARTsolar is free to manufacture locally, and also to import. ARTsolar is 100% locally owned and employs over 300 local employees.

The agreement is attached to the court papers of the IDC, from which it is clear that the advance of funds was in no way linked or contingent on any local manufacture. There is not a single reference to any required local manufacture in the document. The advance was for the specific purpose of acquiring and commissioning a manufacturing plant. The IDC did not, in its affidavit contend otherwise.

GroundUp: Is it true that you instead imported the solar panels from China?

ARTsolar: There is no obligation on ARTsolar to manufacture locally or not to import from any country, so the question “instead of” does not arise. The facilities agreement itself records the partnership between the applicant and a Chinese manufacturer. Thus from inception ARTsolar was transparent and the IDC signed the agreement which approves the Chinese partnership.

GroundUp: What percentage of your stock is currently from China?

ARTsolar: ARTsolar is obliged to import when factory capacity is utilised. None of these panels are used for public procurement programme. All these panels are subjected to local testing. The percentages are confidential from a business point of view and cannot be disclosed.

GroundUp: Is all of your Chinese stock bought from Chinese company Einnova Solarline?

ARTsolar: No.

GroundUp: Are all the solar panels that you buy from foreign companies bought separately from the funding you received from the IDC?

ARTsolar: The funding from the IDC was used for the acquisition and commissioning of the plant, not to pay for imported panels.

All the information provided here is known to the IDC. They have conducted many audits of ARTsolar’s business and have never found or suggested that ARTsolar is in any way in breach of any obligation. They have had open book access to all ARTsolar’s records and even have the right to appoint a member to the board. They are as much a party to the importing of some solar panels, as ARTsolar is. The IDC therefore has for years had a detailed knowledge and understanding of exactly what is manufactured, what is imported and why. In its own affidavit the IDC acknowledges that all of the borrowed funds were used for their intended purpose. The money was not used to fund imported panels.

GroundUp: ARTsolar’s website states: “From their website: “As a local manufacturer / assembler of solar PV modules (solar panels) and distributor of solar related products, we are equipped to provide you with world class products that are internationally certified, locally certified and are locally guaranteed.” Does your website not create the impression you manufacture the panels locally?

ARTsolar: We are a LOCAL manufacturer/assembler of solar PV modules. We are ALSO a distributor and installer of solar-related products. All our products including panels whether imported or locally manufactured are locally guaranteed. We welcome you to engage and view our facility.

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