Bureau of Standards officials probed

• Alarm over escalating governance crisis and cybersecurity breaches • Call for immediate independent audits of expenditures

The department of trade, industry & competition is investigating allegations of maladministration against some of the executives of the SA Bureau of Standards (SABS), the statutory body that is responsible for product standardisation and quality.

The department responded to questions from Business Day after a statement by DA spokesperson on trade, industry & competition Toby Chance, who expressed alarm at what he said was the “escalating governance crisis and repeated cybersecurity breaches” at the bureau.

The department said it had provided SABS executives with the opportunity to respond to the allegations against them, and an internal process of reviewing the responses was under way.

“Once the review is completed the department in consultation with the minister will decide whether to initiate a fullblown investigation or not,” a departmental official said.

The official confirmed the SABS had experienced a cybersecurity breach on November 21 that affected most of its core operations and that the department was “working around the clock” to restore the affected systems. No ransom was paid.

Chance said that despite multiple interventions and expenditure of R140m including capital expenditure of R9.5m for improved IT security, “the SABS remains in disarray, putting public safety and industrial credibility at risk.

“Over the past several months, serious governance failures at the SABS have come to light, including an illegally constituted board with insufficient members impairing decision-making; a revolving door of acting executives creating accountability gaps and perpetuating dysfunction; allegations of corruption and deliberate organisational destabilisation by senior management; and loss of key laboratory accreditations critical to industry and public safety.

“Further compounding these issues, a ransomware attack has crippled SABS’s IT systems, leaving operations at a standstill, from certification processes to employee salaries. Alarmingly, whistle-blower reports allege that funds allocated for cybersecurity were misappropriated, and key leadership figures failed to act despite prior warnings.

“This negligence not only jeopardises public safety but also risks losing critical accreditation, immobilising sectors that depend on SABS certifications. Assurances provided by minister [Parks] Tau and acting director-general Malebo Mabitje-Thompson that the department’s internal audit department is investigating these allegations have so far proven hollow,” Chance said.

He called for immediate independent audits of SABS cybersecurity expenditures and outcomes; enhanced transparency in informing affected clients about data breaches; and urgent ministerial intervention to dissolve the board and place SABS under administration.

The department official denied funds allocated for the upgrade of the IT systems, which included enhancements to the cybersecurity system, had been misappropriated and that the fully functional SABS board was illegally constituted. All board members were appointed by the minister and their number met the minimum threshold prescribed by the Standards Act, the official said.

“The SABS mandate is to develop, maintain and promote national standards and to promote the quality of commodities through conformity assessment services, among others. The SABS continues to fulfil these functions,” the official said.