SANAS - Department of Trade and Industry

ANNUAL 

PERFORMANCE 

PLAN 

2013/14 – 2015/16

SANAS | Annual Performance Plan 2013/14 - 2015/16 

ACRONYMS AND ABBREVIATIONS 

AFRAC 

African Accreditation Cooperation 

AFTA 

ASEAN Free Trade Area 

APEC 

Asia-Pacific Economic Cooperation 

ASEAN 

Association of Southeast Asian Nations 

B-BBEE 

Broad-based Black Economic Empowerment 

BUSA 

Business Unity South Africa 

CAB 

Conformity Assessment Body 

CEO 

Chief Executive Officer 

COMESA Common Market for Eastern and Southern Africa 

DoE 

Department of Energy 

DoL 

Department of Labour 

EA 

Eastern African Community 

EAC 

European Accreditation Cooperation 

EU 

European Union 

GCP 

Good Clinical Practice 

GHG 

Greenhouse Gases 

GLP 

Good Laboratory Practice 

IAF 

International Accreditation Forum 

ICT 

Information and Communication Technology 

ILAC 

International Laboratory Accreditation Cooperation 

IPAP 

Industrial Policy Action Plan 

ISO 

International Standards Organisation 

MLRA 

Multilateral Recognition Arrangement 

MP 

Member of Parliament 

MRA 

Mutual Recognition Arrangement 

MTEF 

Medium-term Expenditure Framework 

NDT 

National Department of Tourism 

NGP 

New Growth Path 

NLA 

National Laboratory Association 

NMISA 

National Metrology Institute of South Africa 

NNR 

National Nuclear Regulator 

NRCS 

National Regulator for Company Specification 

OECD 

Organisation for Economic Cooperation and Development 

OHS 

Occupational Health and Safety 

SABS 

South African Bureau of Standards 

SADC 

Southern African Development Community 

SADCA 

Southern African Development Community Cooperation in Accreditation 

SADCAS Southern African Development Community Cooperation in Accreditation Services 

SANAS 

South African National Accreditation System 

SMME 

Small, medium and micro enterprises 

SPS 

Sanitary and Phyto-sanitary 

SQAM 

Standards, Quality Assurance, Accreditation and Metrology 

TBT 

Technical Barriers to Trade 

the dti 

The Department of Trade and Industry 

WTO 

World Trade Organisation 

2

CONTENTS 

ACRONYMS AND ABBREVIATIONS 2 

CONTENTS 3 

1. FOREWORD BY THE MINISTER 4 

2. OVERVIEW BY THE CHAIRPERSON 5 

3. OFFICIAL SIGN-OFF 6 

4. STRATEGIC OVERVIEW 7 

5. CONSTRAINTS 14 

6. SERVICES PROVIDED BY SANAS 15 

7. PROGRAMME DETAILS 17 

8. KEY PROGRAMMES ALIGNED TO THE DTI’S PRIORITIES 21 

9. PERFORMANCE PLAN MATRIX 22 

10. FINANCIAL PLAN 24 

11. STRATEGIC RISK REGISTER AND MITIGATING ACTIONS 26 

12. FRAUD PREVENTION PLAN 28 

13. MATERIALITY AND SIGNIFICANCE FRAMEWORK 30 

14. ANNEXURE INDICATOR PROFILE 32 


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1.FOREWORD BY MINISTER 

The publication of the 2012 Industrial Policy Action Plan (IPAP) 2012/13–2014/15 

provides an opportunity to take stock of the progress made and challenges 

experienced since the commencement of the first IPAP in 2008. Government’s 

experience of the implementation of IPAP demonstrates that industrial policy 

can and does succeed in South Africa if it is well designed, adequately resourced 

and informed by robust and constructive stakeholder dialogue. IPAP represents 

a significant step forward in scaling up the country’s efforts to promote longterm 

industrialisation and industrial diversification beyond our current reliance 

on traditional commodities and non-tradable services. Its purpose is to expand 

production in value-added sectors with high employment and growth multipliers 

that compete in export markets, as well as against imports in the domestic market. In so doing, the action 

plan also places emphasis on the increased participation of historically disadvantaged people and regions 

in our economy, and will facilitate South Africa’s contribution to industrial development in the African 

region over the medium term. Our successes in implementing transformative industrial policy action place 

us in a position to upscale our efforts across a range of sectors. Three sectors in particular are well placed 

for upscaling through leveraging market growth and the associated upgrading of supply capacity and 

capabilities: 

Green industries: The manufacturing of components inputs into the country’s 17.8 Gigawatt renewable 

energy generation programme, as do solar water heating and other industrial opportunities that arise from 

requirements for higher energy efficiency in the economy. Agro-processing: This sector includes expediting 

regulatory and support mechanisms to establish a large-scale biofuels industry, the identification and 

promotion of export market opportunities in net food-importing countries, and product development and 

standards support. 


Metal fabrication, capital and transport equipment: This includes leveraging the large-scale public 

procurements in rail and electricity, providing associated upgrading support and taking advantage of mining 

capital equipment investment domestically and on the rest of the continent. Within this context, trade 

policy instruments such as tariffs will be deployed on a strategic basis, underpinned by the imperatives 

of sector strategies. Standards, Quality Assurance, Accreditation and Metrology (SQAM) institutions and 

practices – otherwise known as technical infrastructure – will be strengthened and aligned to support 

the development, accreditation and enforcement of standards, and to improve other measures for 

creating, upscaling and resuscitating certain industries. Accreditation interventions in Africa will underpin 

interventions in the agro-processing, mineral beneficiation and pharmaceutical sectors. 

During this Medium-Term Expenditure Framework (MTEF) period, SANAS accreditation will provide 

confidence in the competence and integrity of conformity assessment activities, which will go a long way 

towards realising the imperatives of sector strategies and clusters of sectors by unlocking the technical 

barriers to trade both locally and internationally, and in affording these sectors a competitive edge. 

I am confident that, despite the ongoing severe global and domestic headwinds, the South African National 

Accreditation System (SANAS) has the ability and the will to contribute to achieving these important 

priorities of our country. 

4 

Dr. Rob Davies, MP 

Minister of Trade and Industry

2. OVERVIEW BY THE CHAIRPERSON 

This three-year performance plan covers 2013/14 to 2015/16 and is anchored in 

the SANAS five-year strategic plan. Both plans are aimed at realising the strategic 

objectives of improving SANAS’s operational efficiency, contributing to industrial 

development and the protection of health, safety and the environment, promoting 

the acceptance of SANAS-accredited results among global partners to advance 

South Africa’s trade, supporting economic development objectives and regional 

integration, and establishing relationships to advance South Africa’s trade, 

industrial policy and economic development objectives. 

The effort of government to strengthen and support SANAS accreditation 

necessitated a review of the organisation’s processes to improve the speed of service delivery, while 

working towards minimising the cost of providing an internationally recognised accreditation infrastructure 

for the Republic of South Africa. 

The board of directors recognises the importance of SANAS’s contribution towards Cabinet’s approved 

New Growth Path (NGP), as articulated in the Department of Trade and Industry’s updated IPAP. The IPAP 

strategic thrust of locking out unsafe and poor quality imports and locking in access to the demanding 

export market is one of the key outcomes on which SANAS accreditation will focus over this MTEF period. 

In addition, the Board also recognised the role that SANAS should play in supporting other government 

departments in the protection of health, safety, the environment and economic growth objectives. The 

Board is also of the view that accreditation contributes to the establishment and sustainability of new 

entrants into the mainstream economy, which is an important platform for job creation. The balance 

between global free trade and a strategy aimed at facilitating job creation needs to be carefully managed 

and maintained to mitigate the risk of retaliation by those who may be affected. This requires South Africa 

to step up its conformity assessment (such as testing, inspection, certification) capabilities, as technical 

considerations would be one of the only acceptable tools that could be used successfully to defend 

and protect the local market from being flooded by inferior goods that undermine our local industries’ 

competitiveness. SANAS’s contribution to the achievement of the country’s strategic objectives is therefore 

crucial. 

IPAP calls for SANAS to play a more strategic industrial policy role in the achievement of its objectives. 

It further highlights the strengthening of the South African technical infrastructure and addresses the 

weaknesses in such systems. SANAS cooperates with the other technical infrastructure institutions, namely 

the South African Bureau of Standards (SABS), the National Metrology Institute of South Africa (NMISA) 

and the National Regulator for Compulsory Specifications (NRCS) to ensure alignment. 

SANAS will continue to align its processes, resources and objectives to achieve its mandate of providing 

South Africa with an internationally recognised and effective accreditation system for the Republic of 

South Africa. Within this context, the Board of Directors supports the continuation of the approved SANAS 

objectives as set out in the organisation’s five-year strategic plan and the implementation of this three-year 

performance plan. 


Mr. Prags Govender 

Chairperson 

5

3. OFFICIAL SIGN-OFF 

IT IS HEREBY CERTIFIED THAT THIS ANNUAL PERFORMANCE PLAN: 

1. Was developed by the management of the South African National Accreditation System (SANAS) 

under the guidance of the SANAS Board of Directors; 

2. Takes into account all the relevant policies, legislation and other mandates for which SANAS is 

responsible; and 

3. Accurately reflects the strategic outcome and objectives that SANAS will endeavour to achieve 

over the period 2013/14–2015/16. 

Recommended by the CEO for approval 

Approval by the Accounting Authority 

Ron Josias 

Name: ------------------- 

Signature:---------------- 

Prags Govender 

Name: ------------------- 

Signature:-------------------- 

Rank: CEO 

Date: 21/02/2013 

Rank: Chairperson 

Date: 21/02/2013 


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4. STRATEGIC OVERVIEW 

4.1. VISION 

To pioneer and lead the future of accreditation in Africa and deliver services with a spirit of excellence. 

4.2. MISSION 

To create an impartial and transparent mechanism for organisations to independently demonstrate their 

competence and facilitate the beneficial exchange of goods, services and knowledge, and provide a 

service that is recognised as equitable to best international practice while reflecting the demographics of 

South Africa in all that we do. 

4.3. VALUES 

Table 1: SANAS values are based on the principles below 

INTEGRITY 

To be consistent in our actions, principles and outcomes and to act with honesty without compromising 

the truth. 

EXCELLENCE Giving the best and world-class service. 

PARTNERSHIP Collaborating within and outside SANAS to give the best and to advance South Africa’s interests. 

PIONEERING To offer creative new ways in accreditation which have the potential to change Africa. 

4.4. STRATEGIC OBJECTIVES OF SANAS 

To ensure that SANAS remains a well-functioning accreditation body that is able to effectively execute its 

mandate and meet the increasingly high expectations of industry and government, the organisation developed 

the following strategic objectives: 

Figure 1: SANAS’s objectives for the period 2013/14-2015/16 


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4.5. PRODUCTS AND SERVICES 

4.5.1 SANAS’S MANDATE AND FUNCTION 

Table 2: Legislative and functional mandate 

ENABLING ACT 

MANDATE AND FUNCTIONS 


Accreditation for Conformity 

Assessment, 

Calibration and Good 

Laboratory Practice Act 

(Act No. 19 of 2006) 

SANAS is the only national accreditation body that provides an internationally recognised and 

effective accreditation and good laboratory practice (GLP) compliance monitoring system that 

enables the Republic of South Africa to do the following: 

1. Accredit or monitor organisations falling within its scope of activity for GLP-compliance purposes. 

2. Promote accreditation as a means of facilitating international trade and enhancing the Republic’s 

economic performance and transformation. 

3. Promote the competence and equivalence of accredited bodies. 

4. Promote the competence and equivalence of GLP-compliant facilities. 

In order to achieve its mandate, the Act empowers SANAS to perform the following functions: 

1. Promote the organisation as the sole national accreditation body in its scope of activity. 

2. Encourage and promote the accreditation of calibration, testing and verification laboratories, 

certification bodies, inspection bodies, rating agencies and any other type of body that may 

be added to its scope of activity. 

3. Encourage and promote GLP compliance with the principles adopted by the Organisation for 

Economic Cooperation and Development (OECD) for GLP facilities. 

4. Promote the acceptance of its activities and those of all bodies accredited by SANAS or its 

international counterparts. 

5. Promote the recognition of accredited bodies by users of conformity assessments. 

6. Liaise with regional and international standard bodies and with technical regulatory and 

metrology organisations in respect of any matter related to accreditation. 

7. Liaise with national regulators in respect of any matter related to accreditation. 

8. Promote the use of accredited bodies to facilitate trade. 

9. Advise national, regional and international organisations on the conditions for accreditation 

and on other issues related to accreditation. 

10. Establish and maintain a register of all accredited organisations in South Africa. 

11. Initiate, negotiate, conclude and maintain multilateral recognition arrangements. 

12. Support government in activities on multilateral recognition arrangements. 

13. Obtain and maintain membership of national or international organisations that may assist 

SANAS in achieving its objects and actively participating in such organisations. 

14. Participate in formulating international and regional guidelines and standards to facilitate the 

accreditation process. 

15. Formulate and implement national guidelines and standards to facilitate the accreditation 

process. 

16. Promote recognition and protect the use of the SANAS logo nationally and internationally. 

17. Promote and protect regional and international arrangement logos, such as those of the 

International Laboratory Accreditation Cooperation (ILAC) and the International Accreditation 

Forum (IAF). 

18. Establish appropriate technical committees. 

19. Investigate methods of facilitating trade through accreditation. 

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4.5.2 SANAS’S KEY INTERVENTION AREAS 

SANAS fulfils its function by enabling and supporting four key interventions at national, regional and 

international level. 

Table 3: Key focus areas and interventions 

NO KEY FOCUS AREA INTERVENTION 

1. Industrial sector support IPAP-assigned sectors (the dti), such as green industries, metal fabrication, 

capital and transport equipment and agro-processing 

2. Health, safety and environmental 

protection support 

3. Regional integration and interregional 

trade support 

Occupational hygiene (Department of Labour – DoL),energy efficiency and 

energy management (Department of Energy – DoE) 

The African Accreditation Cooperation (AFRAC), Southern African Development 

Community (SADC) and the Tripartite Grouping (Eastern African 

Community - EAC, SADC and the Common Market for Eastern and Southern 

Africa - COMESA) 

4. South African trade facilitation ILAC, IAF, OECD and the International Standards Organisation (ISO) 

4.6. RECENT COURT RULINGS 

There are currently no court rulings that have a significant, ongoing impact on SANAS’s operations 

and service delivery. 

4.7. SITUATIONAL ANALYSIS 

4.7.1 BACKGROUND 

Accreditation plays a key role, firstly as a facilitator of trade aimed at enhancing economic growth, and 

secondly by playing a major role in the protection of health, safety and the environment. In both these 

areas, major changes have taken place, driven by the ongoing economic crisis and its consequences, 

such as the increase in unemployment, customers’ increasing awareness of their impact and demand 

on the environment and natural resources, as well as a renewed emphasis on cleaner energy and environmental 

protection. SANAS’s contribution to job creation is indirect by empowering and providing 

an international accreditation infrastructure to facilitate trade and enabling small and medium-sized 

conformity assessment bodies to compete on an equal footing with the larger industry, which also 

requires an independent assessment of its competence. SANAS will continue to reprioritise its activities 

to support the development that accreditation can create, while simultaneously contributing to 

broader social benefits. It will, for instance, strengthen accreditation to support local manufacturing 

and export market access by assisting South African firms to meet the increasingly demanding conformity 

assessment requirements of advanced developed and developing countries. Moreover, accreditation 

will play an increasing role in addressing energy efficiency imperatives, at the household 

and industry levels. 

South Africa’s IPAP 2 recognises that the capacity a country has to assist manufacturers and exporters 

comply with international standards, norms and technical regulations underpins the potential 

for economic and industrial growth. The strengthening of technical infrastructure capacity in African 

countries is a precondition for industrialisation efforts. This capacity includes metrology, standards, 

accreditation and conformity assessment. The dumping of cheap, substandard manufactured goods 

on African markets has sometimes led to the collapse of local industries and has served as a major 

barrier to industrial development. Therefore, conformity assessment is required to prevent the influx 


9

of substandard and injurious products into African markets and to improve the quality and enhance the potential 

access of African products to export markets. The balance between global free trade and a strategy 

aimed at facilitating job creation has to be maintained and carefully managed to mitigate the risk of retaliation 

by those affected. This requires South Africa to step up its conformity assessment (such as accredited 

testing, inspection, certification, validation and verification) capabilities, as technical considerations would 

be one of the acceptable tools that can be successfully used to defend and protect the local market from 

being flooded by inferior goods that undermine local industries’ competitiveness. In order to capitalise on 

this opportunity while being aware of the challenges, South Africa will have to work with countries in the 

region to strengthen the coordination of accreditation and conformity assessment services. However, it 

has to be kept in mind that the development of such capacity has a long lead time and the scope of work 

is enormous and should therefore be prioritised. 

During this MTEF period, SANAS will focus on accreditation support for the green industries, metal fabrication, 

capital and transport equipment and agro-processing sectors nationally, in SADC, as well as in the new 

Tripartite Grouping (EAC, SADC, COMESA), including an arrangement and supporting infrastructure that 

will facilitate the acceptance of accredited certification, inspection and testing in many African markets 

based on single accreditation. 

4.7.2 INDUSTRIAL SECTOR SUPPORT 

The dti’s IPAP identified green industries, metal fabrication and capital and transport equipment, and agroprocessing 

for upscaling through leveraging market growth and an associated upgrading of supply capacity 

and capabilities. In Africa, there is agreement that agro-processing, mining beneficiation and pharmaceuticals 

offer opportunities. 


10 

In South Africa, the green industry sector support focuses especially on the inputs of the manufacturing 

of components into the 17.8 Gigawatt renewable energy generation programme and other industrial 

opportunities arising from requirements for higher energy efficiency in the economy. The metal fabrication, 

and capital and transport equipment sector support focuses on leveraging the large-scale public procurements 

in rail and electricity, providing associated upgrading support, and taking advantage of mining 

capital equipment investment domestically and on the rest of the continent. The agro-processing sector 

support includes expediting regulatory and support mechanisms to establish a large-scale biofuels industry, 

the identification and promotion of export market opportunities in net food-importing countries, and 

product development and standards support. 

In addition to the above sectors, IPAP also introduces cross-cutting technical infrastructure sector support 

initiatives, including nuclear electricity generation, energy efficiency, water efficiency and climate change. 

Accreditation support for the abovementioned sectors has been identified as one of the key deliverables, 

namely to establish and maintain the necessary standards, measurement traceability, accreditation conformity 

assessment services, as well as appropriate regulatory interventions. 

4.7.3 SOUTH AFRICAN TRADE FACILITATION 

Exports are key to South Africa’s economic development. The competitiveness of South Africa’s goods and 

services hinges on the quality of these products and services, which is confirmed by conformity assessment 

bodies (CABs), such as laboratories, certification and inspection bodies. Non-acceptance of conformity assessment 

normally leads to rejection or costly retesting, inspection or recertifying such exported goods 

and services, making these goods uncompetitive in the global market. Non-acceptance of conformity assessment 

results is mainly due to lack of confidence in the competence of the CABs to produce results. 

Accreditation provides confidence in the competence and integrity of conformity assessment activities and

goes a long way towards unlocking the technical barriers to trade both locally and internationally, and 

in affording companies the opportunity of having a competitive edge. 

4.7.4 PROTECTION OF HEALTH, SAFETY AND THE ENVIRONMENT 

In many economies, the use of accreditation to assist governments is gaining momentum. Accreditation 

has become “mandatory” in many regulated areas as more governments and regulators appreciate 

the benefits accreditation brings about in assisting governments to meet their responsibilities in 

safeguarding the public. For example, in the Asia-Pacific region, the Asia Pacific Economic Cooperation 

(APEC) endorses accreditation, and accreditation is now used to underpin the conformity assessment 

component of APEC agreements. Similarly, the Association of Southeast Asian Nations (ASEAN) has 

included accreditation in the ASEAN sectorial mutual recognition arrangement (MRA) for electrical 

and electronic equipment as a means of meeting the mandatory requirements of each member and 

to facilitate the implementation of the ASEAN Free Trade Area (AFTA). 

In Europe, the Council of the European Union and the European Parliament have enacted a regulation 

that provides a legal framework for the provision of accreditation services across Europe. In the 

Americas, regulators and government entities throughout the region are increasingly relying on results 

from accredited laboratories to meet their mandatory requirements in areas as diverse as food 

safety, environmental protection, toy safety, and the quality of concrete, steel, electrical products and 

a variety of other products and services. 

The mainstream acceptance of accreditation by pan-regional bodies, and domestic regulators in individual 

governments also helps member governments of the World Trade Organisation (WTO) to meet 

their responsibilities of the Technical Barriers to Trade (TBT), and Sanitary and Phyto-sanitary (SPS) 

agreements. 

The WTO’s increasing recognition of accreditation in the conformity assessment requirements of the 

TBT Agreement and specific sector agreements, such as the agreements relating to telecommunication, 

the automotive industry, etc, is gaining acceptance, underpinning the current WTO agreements’ 

conformity assessment requirements. 

Nationally, SANAS accreditation supports South Africa’s industrial policy aims of locking out unsafe 

and poor quality imports and locking in access to the demanding export market, as envisioned in the 

IPAP, as well as other programmes under various government departments and industry stakeholders. 

In support of its national accreditation activities, SANAS is a founding signatory of the multilateral 

recognition arrangements of both the International Laboratory Accreditation Cooperation (ILAC) and 

International Accreditation Forum (IAF). These arrangements promote the global acceptance of technical 

test and calibration data, as well as certificates issued by certification bodies. In this regard, signatories 

to the ILAC and IAF arrangement are spread over 88 and 59 economies respectively. For South 

African trade, it implies the elimination of or reduction in the need for retesting or recertification to 

an importing country that is a signatory to the arrangement. In 2012, the multilateral recognition 

arrangement (MLRA) for inspection was officially launched under ILAC. SANAS was one of the first 

signatories to this agreement, allowing international recognition of the inspection results of South 

Africa’s accredited facilities. 

In support of government’s objective of regional integration, SANAS plays an important role in SADC 

by hosting the SADC Accreditation Secretariat and holding the regional coordinator position. The body 

is further currently assisting the newly established SADC Accreditation Services (SADCAS) by training 

assessors and partnering with that body. SANAS was also recently elected to host the secretariat for 


11

the newly established African Accreditation Cooperation (AFRAC), launched in support of an African 

technical infrastructure under the African Union. Internationally, SANAS holds signatory status to ILAC’s 

MRA and IAF’s MLRA. These are key agents for facilitating international trade and enhancing South Africa’s 

economic performance. 

Taking into consideration the forces that now shape the global environment, such as economic growth, 

or the lack thereof, customers’ increasing awareness of their impact and demand on the environment 

and natural resources, as well as a renewed global emphasis on cleaner energy and environmental 

protection, it is predicted that accreditation will become a key role-player over the next five years in 

underpinning conformity assessment requirements in both the voluntary and regulatory domain, with 

a special focus on economic growth. SANAS will thus focus on adding more value in these areas, while 

maintaining its current customer base. 


SANAS will continue to provide existing and developing new accreditation programmes, provide training 

in South Africa and the region, and promote the use of accreditation as a tool for fostering international 

trade and the protection of health, safety and the environment. It also intends to increase international 

recognition for its inspection functions under its current arrangement with ILAC. 

4.7.5 ORGANISATIONAL DEVELOPMENT 

IPAP 2 calls for the strengthening of technical infrastructure systems and the addressing of weaknesses 

in such systems. IPAP identified the “rightsizing of SANAS in order for it to continue to provide the accreditation 

services required by industry” as a key milestone. As of June 2012, SANAS has grown to 1 

401 accredited facilities. This change, together with the increased expectations of government, regulators 

and industry, necessitated a review of SANAS’s processes and structures aimed at positioning 

the organisation to effectively meet South Africa’s current and future accreditation demands. Over the 

MTEF period, SANAS will continue to roll out its approved project, Project Breakthrough, aimed at rightsizing 

the organisation to meet the demand for its services. The project identified recruiting 72 staff 

members, a large investment in information and communication technology (ICT) and an increase in 

office space as objectives. 

12

Minister: Trade 

and Industry 

EXECUTIVE AUTHORITY 

Board of 

Directors 

ACCOUNTING AUTHORITY 

Audit and Risk 

Committee 

Human 

Resources and 

Remuneration 

Committee 

ADVISORY 

FORUM 

COMMITTEES OF THE BOARD 

SANAS CEO 

MEMBERS OF KEY MANAGEMENT 

Executive Committee 

Personal Assistant 

Company 

Secretary 

Approval Committee 

Senior Manager 

Mechanical and 

Physical 


Certification, 

Testing, BEE 


Corporate Services 

(vacant) 


Strategy and 

Development 

Chief Financial 

Officer 

Figure 2: Organogram 


13

5. CONSTRAINTS 

The implementation of this Annual Performance Plan takes place against the backdrop of serious constraints 

exogenous to its implementation. 

The failure to secure suitable office space for the rightsizing of SANAS, hampered by the current landlord’s 

refusal to allow SANAS to cede its lease agreement, poses a huge constraint to the implementation 

of this annual plan. 

Secondly, SANAS’s service delivery is reliant on a high level of technical expertise in both permanently 

employed and short-term contracted individuals, providing services on an as-needed basis. The scarcity 

of this technical expertise in some specialised areas, demand higher compensation and privileges, 

which exerts pressure on SANAS’s desire to provide a cost-effective accreditation infrastructure. These 

costs are normally passed on to the client. In addition, the majority of the technical experts in the 

SANAS’s assessors pool are nearing retirement age and, although they might still be used after their 

retirement, their expertise will fade if they are no longer operating in their field of expertise. This poses 

a danger to the technical integrity of the accreditation process. 

The implementation of this plan coincides with a major internal shock: double-digit increases in electricity 

and logistics costs and a range of negative factors that impact on the manufacturing sector, which 

were either exacerbated by the crisis or pre-dated it: 

• Weak growth in traditional export markets, particularly the US and European Union (EU) markets 

• Significantly, above-inflation increases for administered prices, with huge electricity price increases 

of between 75% and 90% from Eskom, and up to 140% when municipal increases are factored in 

• A significant slowdown and backlogs in infrastructure expenditure at all levels of government 

• Short-term and non-strategic procurement practices in relation to major areas of public capital expenditure 

• Slow progress with regard to addressing the shortage of skills 


These factors have impacted on SANAS’s customer base, with the calibration and legal metrology sector 

being hardest hit. It is against this background that SANAS initiated its long-term strategy of investing in 

tertiary educational institutions by providing training on accreditation, as well as internship and bursary 

programmes to address the future shortage of skills. 

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6. SERVICES PROVIDED BY SANAS 

To give effect to its vision, mission and objectives, SANAS undertakes various initiatives and interventions 

under the following key programmes: 

1. Administration 

2. Provision of accreditation services aimed at promoting the acceptance of such accredited results and 

assistance to regulators in terms of its health, safety and environmental protection mandate 

3. Monitoring authority for the OECD or for GLP-compliance 

4. Strategy, development and training 

5. Representing South Africa in matters of accreditation within the SADC region, the African continent and 

internationally 

Table 4 below highlights the key accreditation scopes covered by SANAS’s accreditation provision responsibilities 

and their purpose. 

Table 4: Accreditation scopes 

NO SUBPROGRAMME CONTRIBUTION TO ECONOMY AND/OR HEALTH AND SAFETY 

1. Calibration laboratories and 

proficiency testing schemes 

Calibration laboratories provide legal metrological traceability in South Africa as stipulated 

in the Measurements Units and Measurement Standards Act (Act No. 18 of 2006). 

The laboratories therefore form an integral part of the metrological chain whenever 

physical measurements are performed, be these for trade, safety, scientific purposes, 

law enforcement or to ensure that South African manufacturers remain globally 

competitive. The calibration programme has an impact on the lives of ordinary South 

Africans, from ensuring that the weight of the sugar, maize meal and flour that is purchased 

is correct, to ensuring the accuracy of the equipment used for law enforcement, 

such as evidential breath analysers and speed measuring devices, and ensuring the 

accuracy and traceability of measurements required within the IPAP priority sectors. 

Proficiency testing is essential for the demonstration of the competency of a laboratory. 

2. Testing laboratories Testing laboratories play an important role in economies by providing objective evidence 

that a product or service offering conforms to certain customer requirements or 

specifications. SANAS-accredited laboratories in the food safety sector play an important 

role in monitoring the quality of food for import and export purposes, as well as 

for the health and safety of the public at large. 

The testing programme also provides an accreditation service in the IPAP priority 

sectors and other industry sectors, including environmental monitoring, food safety, 

infrastructure and construction, agriculture and minerals. 

3. Medical laboratories Creditability of medical pathology laboratories is paramount to the health and safety of 

the patients who rely on the testing services provided by these laboratories. Laboratory 

tests are an integral part of the workup of any patient, and constitutes up to 80% of a 

physician’s diagnosis and treatment choice. It is therefore important that the results are 

reliable, as medical doctors base their diagnosis on such results. 

4A. GLP-compliant facilities SANAS is the official OECD GLP monitoring authority. The main duty of the GLP monitoring 

authority is to monitor compliance with GLP Principles by conducting laboratory 

inspections and study audits. 

The OECD principles of GLP were primarily developed to promote the quality and validity 

of test data used to determine the safety of chemicals and chemical products. 

4B. Forensic laboratories Forensic laboratories are crucial to our criminal justice system as they provide very 

useful information that aid in the investigation and prosecution of crime through the 

scientific examination of physical evidence. 


15


NO SUBPROGRAMME CONTRIBUTION TO ECONOMY AND/OR HEALTH AND SAFETY 

4C. Veterinary laboratories 

and Good Clinical Practice 

(GCP)-compliant facilities 

South Africa is no exception when it comes to the problems faced by the livestock 

industry worldwide. It is therefore important for the country to have a strong and competent 

veterinary laboratory industry to help with the diagnosis of diseases, especially 

emerging diseases such as Bovine spongiform encephalopathy (BSE – mad cow disease) 

and to test the safety of meat and other animal products. 

4D. Blood transfusion The primary goal of a blood transfusion facility is the transfusion of safe units of blood. 

Accreditation plays a vital role in ensuring that the personnel involved in all the activities 

(such as donor registration, blood collection, testing, processing and storage) of a 

blood transfusion service are competent and that national and/or international standards 

are being adhered to. 

4E. Pharmaceutical The South African pharmaceutical industry is regarded as the largest in Africa, constituting 

about 33% of all the pharmaceutical sales in Africa. The pharmaceutical or medicine 

industry is regarded as one of the best areas for business investment. Furthermore, it 

plays a vital role in fighting numerous diseases that are ravaging our country, such as 

TB, HIV and AIDS. 

5. Inspection bodies Inspection mainly operates within the regulatory domain where regulators and citizens 

need to be confident that inspection bodies, especially those inspecting health and 

safety issues in accordance with the Occupational Health and Safety (OHS) Act, are 

competent to do so. This also applies to bodies that are required to ensure the protection 

of consumers, such as the National Regulator for Compulsory Specification (NRCS) 

and those required under the IPAP, for example, nuclear inspection and measurement 

and verification agencies. 

6. Verification laboratories Verification laboratories fall under the domain of legal (trade) metrology, whose 

sole purpose is to protect consumers from unfair trade practices. These laboratories 

perform verifications on volume, mass and length measuring instruments in accordance 

with the requirements of the Trade Metrology Act (Act No. 77 of 1973) and other 

related technical regulations to ensure reliable results. 

7. Certification bodies Certification is the activity of conformity assessment where the focus is on a system 

that forms the basic requirements to ensure that an organisation has the necessary 

self-regulating procedures and controls on factors that affect a product so that it is 

possible to provide the customer with confidence that the product falls within the 

specified requirements. Accredited certification bodies certify other organisations 

with regard to compliance to management systems with recognised standards, such as 

quality management system, environmental management system. food safety management 

system requirements, responsible tourism and greenhouse gas validation and 

verification. This programme, together with the Inspection Body Programme, is the key 

accreditation implementer for the attainment of the IPAP projects assigned to SANAS. 

8. Broad-based Black Economic 

Empowerment (B-BBEE) 

verification agencies 

In 2007, SANAS initiated the B-BBEE Verification Accreditation Programme, which supports 

government’s national objective to allow for a broader participation of previously 

disadvantaged people in the mainstream economy. 

16

7. PROGRAMME DETAILS 

7.1.1 PROGRAMME 1: ADMINISTRATION PROGRAMME 

Purpose: The administration programme provides strategic and policy development support in SANAS. 

The programme aims to ensure that effective leadership, management, legal and administrative support 

continues the refinement of the organisational strategy and structure in compliance with the appropriate 

legislation and international best practices. 

Description of Sub – programmes 

The SANAS Board of Directors provides oversight and policy direction to SANAS; and the Office of the CEO 

provides overall management of SANAS’ resources. The Corporate services sub-programme provides legal 

advisory/ compliance services, company secretarial services and provide high level oversight of internal 

corporate support functions which includes; IT services, communications and marketing, office and quality 

management services. The financial management sub-programme provides support to SANAS with respect 

to all the financial and fiscal management aspects of the SANAS operations. 

7.1 2 PROGRAMME 2: ACCREDITATION PROGRAMME 

Purpose: The accreditation programme provides, manages and maintains accreditation services to new 

and existing clients in both the voluntary and regulatory domain. 


Purpose: The accreditation programme provides, manages and maintains accreditation services to new 

and existing clients in both the voluntary and regulatory domain. 


SCOPES OF AC- 

CREDITATION & 

(SANAS DOCU- 

MENT) 

Testing Laboratories 

(P04) 

Medical Laboratories 

(P04) 

ACCREDITATION 

STANDARD/ 

SCHEME 

VOLUN- 

TARY OR 

REGULA- 

TORY 

DOMAIN 

COVERED 

BY: 

ISO/IEC 17025 Voluntary ILAC MRA 

• ISO 15189 

(Preferable) or 

• ISO/IEC 17025 

Voluntary 

ILAC MRA 

VALIDITY PERIOD 

OF CERTIFICATE OF 

ACCREDITATION 

5 years 

4 years 

ACCREDITATION IS GRANT- 

ED FOR: 

• Tests performed on specified 

materials or products 

to specified test methods; 

• Techniques - for specified 

instrument(s) using 

specific chemical and/ 

or physical methods, to 

identify and/or determine 

a physical property of a 

material or species contained 

within. 

• Tests performed on human 

biological materials 

to specified test methods. 


17


SCOPES OF AC- 

CREDITATION & 


MENT) 

Calibration Laboratories 

(P04) 

Certification Bodies 

(P05) 


(P05) 


(P05) 

GLP/GCP Facilities 

(P16) 

Blood Transfusion 

Laboratories (P04) 

Proficiency Testing 

(PT) Providers 

(P04) 

ACCREDITATION 

STANDARD/ 

SCHEME 

VOLUN- 

TARY OR 

REGULA- 

TORY 

DOMAIN 

COVERED 

BY: 

ISO/IEC 17025 Voluntary ILAC MRA 

ISO/IEC 17021 and 

IAF mandatory 

documents 

ISO/IEC 17024 and 

IAF Mandatory 

documents 

ISO/IEC Guide 65, 

and any relevant 

IAF mandatory 

documents 

OECD Principles of 

GLP/VICH Principles 

of GLP 

Voluntary 

or National 

Programme 

Voluntary 

Voluntary 

Voluntary 

IAF MLA 

IAF MLA 

IAF MLA 

OECD 

ISO/IEC 17025 Voluntary National 

Programme 

• ILAC-G13 Voluntary No 

• ISO/IEC Guide 

43-1 

• ISO/IEC 17043 



ACCREDITATION 

5 years 

3 years 

3 years 

3 years 

2 years 

4 years 

4 years 


ED FOR: 

• Specified types of measurements 

performed, 

measurement range and 

calibration and measurement 

capability (CMC); 

• The transfer of traceability 

from national standards 

• QMS Certifiers for certifying 

organisations to ISO 

9001; 

• EMS Certifiers for organisations 

to ISO 14001; 

• QMS Certifiers for certifying 

organisations to 

HACCP SANS10330. 

• Responsible tourism 

• GHG validation and verification 

• Personnel Certifiers for 

certifying or registration 

of personnel. 

• Product Certifiers for 

certifying products min 

accordance with various 

national and international 

specifications, and sectorspecific 

industry schemes, 

whose requirements are 

maintained by the industries 

themselves. (Eg: 

Eurepgap, BRC (British 

Retail Consortium) and 

GFSI (Global Food Safety 

Initiative) 

• GLP compliance monitoring, 

according to the 

Organisation for Economic 

Co-operation and 

Development (OECD) 

Principles of Good Laboratory 

Practice for facilities 

conducting non-clinical 

environmental health and 

safety studies 

• The operation of PT 

schemes 

18

SCOPES OF AC- 

CREDITATION & 


MENT) 

Producers of Certified 

Reference 

Materials (CRM) 

(P07) 

ACCREDITATION 

STANDARD/ 

SCHEME 

• ISO Guide 34 

• (ISO/IEC 

17025 a prerequisite) 

VOLUN- 

TARY OR 

REGULA- 

TORY 

DOMAIN 

Voluntary 

COVERED 

BY: 

No 



ACCREDITATION 

5 years 


ED FOR: 

• The production and 

assignment of property 

values of CRM 

Inspection Bodies 

(P15) 

Verification Laboratories 

(P17) 

Broad Based Black 

Economic Empowerment 

(B-BBEE) 

Verification (P24) 

• ISO/IEC 17020 

and/or the 

National 

Standards 

specific to 

the field of 

inspection 

• National 

standard: 

SANS 1825 

– Gas Test 

Stations 

• National 

standards: 

SANS 10227; 

• SANS 1347– 

Vessels under 

Pressure 

• SANS 10378 

• NRCS requirements 

SANAS R47 and 

competence to the 

B-BBEE Codes of 

Good Practice 

Regulatory 

Regulatory 

Regulatory 

7.1.3 PROGRAMME 3: GLP MONITORING 

ILAC MRA 

or National 

Programme 

National 

Programme 

National 

programme 

4 years 

4 years 

• The performance of 

inspections in a specified 

field. 

• Energy efficiency measurement 

and verification 

bodies 

• Laboratories assessed 

to SANS 10378 are not 

allowed to perform 

commercial calibrations 

to ISO/IEC 17025 unless 

their accreditation certificate 

specifically indicates 

they are accredited for 

this. The Regulator recognised 

this exclusion 

• Accreditation is granted 

to facilities who verify 

compliance to the BBBEE 

Act and Codes of Good 

Practice 

Purpose: The GLP monitoring programme participates and contributes to the maintenance and expansion 

of the OECD GLP programme in order to fulfil South Africa’s international obligations as a signatory 

to the international Multilateral Arrangements and benefit South African testing facilities 

Description of Sub – Programmes 

SANAS is the official GLP Monitoring Authority of South Africa. Its (GLP Monitoring Authority) main duty 

is to inspect test facilities and conduct study audits to ascertain their degree of compliance to the OECD 

principles. South Africa is a non-member country that met the OECD criteria through SANAS. SANAS’s 


19

participation in the various working groups of the GLP panel is a vital part of maintaining this acceptance 

agreement. SANAS actively participates in the OECD GLP Working Group meetings where decisions about 

the Mutual Acceptance of Data are made. SANAS also participated in OECD on-site visits as required by this 

arrangement of Mutual Acceptance of Data in order to influence decisions. 

7.1.4 STRATEGY AND DEVELOPMENT PROGRAMME 

Purpose: The Strategy and development programme provides effective leadership in developing new fields 

of accreditation, project development, knowledge transfer and supporting sub-regional, regional and international 

objectives pertaining to accreditation. 

Description of Sub – Programmes 

The International trade development sub-programme facilitates multilateral recognition arrangements 

aimed at promoting accreditation as a means of facilitating South African exports and enhancing the Republic’s 

economic performance. The African accreditation development sub-programme manage the SADC 

accreditation secretariat and regional coordinator function for SADC as well as secretariat for the newly 

establish African Accreditation Cooperation (AFRAC) aimed at providing leadership on accreditation matters 

in the African region and deepening regional integration. SANAS will continue to provide appropriate 

training and development for SADC member state delegates and leadership in the implementation of the 

regional accreditation infrastructure. The research and development sub-programme provides effective 

leadership in developing new fields of accreditation and project management. The knowledge transfer 

sub-programme provides training and mentoring to SANAS, industry and the region. 


20

8. KEY PROGRAMMES ALIGNED TO THE DTI’S PRIORITIES 

DTI’S PRIORITIES SANAS’S STRATEGIC OBJECTIVES SANAS’S OUTCOMES 

Promote a professional, competitive 

and customer-focused working environment 

that ensures effective and 

efficient service delivery 

Facilitate transformation of the economy 

to promote industrial development, 

investment, competitiveness and 

employment creation 

Build mutually beneficial regional 

and global relations to advance South 

Africa’s trade, industrial policy and economic 

development objectives 

Improve SANAS’s operational efficiency 

to deliver services with a spirit of excellence 

Provide accreditation support for industrial 

development and the protection 

of the health and safety of the South 

African public and the environment 

Promote the acceptance of SANAS-accredited 

results among global partners 

to advance South Africa’s trade and 

economic development objectives 

Support regional integration and relations 

to advance South Africa’s trade, 

industrial policy and economic development 

objectives 

• Reduce the vacancy rate 

• Develop a diversified assessor pool 

• Operationalise accreditation programmes 

in the areas as assigned 

to SANAS by the dti in IPAP 2 

• Operationalise accreditation programmes 

in the areas as assigned 

by other government departments 

and stakeholders, e.g. DoL, Business 

Unity South Africa (BUSA) 

• Provide accreditation programmes 

for conformity assessments bodies 

to service government and industry 

sectors supporting the production 

of safe and good quality goods 

and services 

• Provide accreditation support to 

facilitate market access of South 

African goods and services supporting 

exports 

• Provide input into the international 

requirements concerning accreditation 

to facilitate a level playing field 

for the acceptance of South African 

goods and services 

• Establish and operationalise an 

African and SADC accreditation 

cooperation 

• Provide accreditation support to facilitate 

locking out of unsafe, poor 

quality goods and services 


21

10. PERFORMANCE PLAN MATRIX 


9. PERFORMANCE PLAN MATRIX 

ANNUAL PERFORMANCE TARGETS 

Target for 

2012/13 

PERFORMANCE 

INDICATORS/ MEASURES 

OUTCOMES OUTPUTS 

2013/14 2014/15 2015/16 

Strategic objective 1: To Improve SANAS’s operational efficiency to deliver services with a spirit of excellence 

Efficient service delivery Reduce the vacancy rate 

Percentage of vacant positions 15% 

10% 10% 10% 

Increase the 

Diversified 

assessor pool 

76 82 90 

68 

Number of previously 

disadvantaged assessors 

registered with SANAS in the 

assessors’ pool 

registration of 

previously 

disadvantaged 

assessors 

Strategic objective 2: To contribute to industrial development and the protection of health, safety and the environment 

0 1 1 0 

Number of new accreditation 

programmes developed and 

rolled out 

Develop and roll out 

an accreditation 

system for the 

accreditation of IPAP2 

assigned areas 



rolled out 1 1 0 1 




accreditation of DoL 

assigned areas 



rolled out 1 0 0 0 




certification of 

responsible tourism 

Established 

accreditation 

systems for 

new 

programmes 

0 1 0 0 



rolled out 




verification of 

greenhouse gases as 

requested by BUSA 

SANAS ANNUAL PERFORMANCE PLAN 2013/14 – 2015/16 Page 23 

22

OUTCOMES OUTPUTS 

Expand the number of 

accredited 

organisations in the 

fields of testing, 

inspection, calibration, 

certification bodies and 

other conformity 

assessment services 

PERFORMANCE 

INDICATORS/ MEASURES 

Number of accredited 

organisations 

Target for 

2012/13 

ANNUAL PERFORMANCE TARGETS 

2013/14 2014/15 2015/16 

1 408 1 438 1 470 1 500 

Strategic objective 3: To promote the acceptance of SANAS-accredited results among international partners to advance South 

Africa’s trade and economic objectives 

Influencing 

international 

accreditation 

requirements to 

facilitate a level 

playing field for 

acceptance of 

South African 

goods and 

services 

Provide input into the 

international 

accreditation 

requirements of the 

ILAC and IAF 

Percentage input to the 

international accreditation 

requirements of the ILAC and 

IAF 

90% 95% 95% 95% 

Strategic objective 4: To support regional integration and relations to advance South Africa’s trade, industrial policy and economic 

development objectives 

Accreditation 

support to lock 

out poor quality 


services 

Provide an Intra- 

AFRAC Secretariat 

Provide a Southern 

African Development 

Community 

Cooperation in 

Accreditation (SADCA) 

Secretariat and 

regional coordination 

function 

Number of meetings where 

secretarial support is provided 


secretarial support is provided 

3 meetings 3 meetings 3 meetings 3 meetings 

3 meetings 3 meetings 3 meetings 3 meetings 



23

10. FINANCIAL PLAN 

i) PROJECTIONS OF REVENUE AND EXPENDITURE 

2013/14 2014/15 2015/16 

SUMMARY OF INCOME 

Accreditation provision 35 168 823 36 940 269 38 745 339 

Knowledge transfer (research and development) 5 949 355 6 125 612 6 407 390 

Transfer from the dti 32 615 000 34 560 000 36 151 488 

Utilisation of the approved reserve: 1 200 000 - - 

- Expenses 

Interest 1 001 250 877 198 909 949 

Sundry income 254 700 267 180 299 608 

TOTAL 76 189 128 78 770 260 82 513 774 

- Capital assets 10 592 000 50 350 000 300 000 

EXPENDITURE 

SUMMARY OF EXPENDITURE 

1. Administration 29 777 748 31 206 433 33 163 356 

2. Accreditation provision 33 154 580 34 784 059 36 524 179 

3. Marketing and communication 2 822 800 2 938 317 2 881 958 

4. Regional development 718 150 737 866 897 480 

5. International trade facilitation 2 261 178 2 134 487 2 344 250 

6. Research and development 7 454 672 6 969 097 6 702 551 

TOTAL 76 189 128 78 770 260 82 513 774 

SURPLUS/(DEFICIT) - - - 


24 

Economic classification 

Current payments: 76 189 128 78 770 260 82 513 774 

Compensation of employees 34 761 426 36 463 733 38 720 621 

Goods and services, of which: 

Administrative fees (bank charges) 41 427 702 42 306 527 43 793 154 

Advertising and marketing 2 822 800 2 938 317 2 881 958 

Assets

2013/14 2014/15 2015/16 

Depreciation and amortisation 402 711 422 444 441 877 

Entertainment 31 590 33 138 34 500 

General accreditation operating expenditure 1 366 880 1 315 520 1 428 749 

International and regional responsibilities 2 979 327 2 872 353 3 241 730 

Lease payments 3 992 523 4 188 157 4 380 812 

Operating expenditure 1 745 486 1 829 463 1 889 131 

Projects 2 124 550 1 333 293 1 064 792 

Stationery and printing 486 660 510 506 530 800 

Training and staff development 1 350 020 1 416 171 1 560 000 

Transfer payment: National Laboratory Association (NLA) 477 211 500 595 523 622 

Travel and subsistence 9 077 562 9 522 363 9 960 391 

SUBTOTAL 76 189 128 78 770 260 82 513 774 

TOTAL 76 189 128 78 770 260 82 513 774 

ii) CASH FLOW PROJECTIONS 

2013/14 2014/15 2015/16 

Cash flows from operating activities 

Cash receipts 69 039 773 72 644 648 76 106 384 

Funds received from the dti 32 615 000 34 560 000 36 151 488 

Fee income 35 168 823 36 940 269 38 745 339 

Investment income 1 001 250 877 198 909 949 

Other receipts 254 700 267 180 299 608 

Payments (67 473 282) (71 549 021) (74 640 317) 

Employee costs (34 761 426) (36 463 733) (38 720 621) 

Suppliers (32 462 830) (34 824 061) (35 643 697) 

Finance costs (249 025) (261 227) (276 000) 

Net cash flows from operating activities 1 566 491 1 095 626 1 466 067 

Cash flows from investing activities 

Purchase of property, plant and equipment (20 592 000) (50 350 000) (300 000) 

Intangible assets acquired - - - 

Net cash flows from investing activities (20 592 000) (50 350 000) (300 000) 

Cash flows from financing activities 

Mortgage bond 31 000 000 (3 000 000) 

Finance lease payments (131 392) (122 397) (114 019) 

Net cash flows from financing activities (131 392) 30 877 603 (3 114 019) 

Net increase/(decrease) in cash and cash equivalents (19 156 900) (18 376 771) (1 947 952) 

Cash and cash equivalents at the beginning of the year 53 070 200 33 913 300 15 536 529 

Cash and cash equivalents at the end of the year 33 913 300 15 536 529 13 588 577 

iii) DIVIDEND POLICIES - Not applicable 


25

11. STRATEGIC RISK REGISTER AND MITIGATING ACTIONS 


1. 

2. 

STRATEGIC 

OBJECTIVE 

To improve 

SANAS’s 

operational 

efficiency to 

deliver services 

with a spirit of 

excellence 

To contribute 

to industrial 

development 

and the protection 

of health, 

safety and the 

environment 

ACTIVITY NO. RISK DESCRIPTION 

Staff retention 1 

Developing and 

implementing 


process IT 

system 

Non-availability 

of assessors 

Establishing 

new programmes 

Establishing 


Establishing 


Establishing 


Establishing 


Failure to retain or attract 

critical skills 

2 Inefficiencies due to 

manual systems resulting 

in long turnaround 

times 

3 Assessors who have 

confirmed for scheduled 

assessments cancel 

a few days before 

the assessment 

4 

5 

6 

7 

8 

Lack of stakeholders/ 

experts buy-in to support 

the process 

Timing of regulators 

to establish required 

legislation 

Unawareness of regulations 

by SANAS 

Perceived costs versus 

the benefits of accreditation 

Expectations gap between 

industry regulators 

with regard to the 

delivery of accreditation 

programmes 

Limited skills (assessors) 

for new programmes 

RESIDUAL 

RISK (SCORE) 

ACTIONS TO IMPROVE MANAGE- 

MENT OF THE RISK 

• Develop and implement a 

Management Development 

Strategy 

• Expand the assessor pool 

• Automate the accreditation 

processes 

Expand the assessor pool to allow 

for more flexibility by: 

• advertising for assessors 

• approaching employers of 

potential assessors to have an 

agreement 

• Direct interaction sessions with 

regulators 

• Involvement in stakeholder 

forums and drafting of regulations 

• Subscribe and track publication 

of new regulations 

• Senior management to pursue 

regulations sent for comment 

Create a support mechanism to 

minimise accreditation costs for 

new applicants by: 

• holding an annual induction for 

new facilities 

• creating a toolkit to assist 

small, medium and micro 

enterprises (SMMEs) with accreditation 

process 

• Develop and distribute relevant 

marketing material 

• Conduct workshops 

• Ensure stakeholder participation 

in the work of SANAS 

• Provide stakeholders with 

regular progress updates 

• Develop guidance documentation 

where applicable 

26

STRATEGIC 

OBJECTIVE 

ACTIVITY NO. RISK DESCRIPTION 

RESIDUAL 

RISK (SCORE) 

ACTIONS TO IMPROVE MANAGE- 

MENT OF THE RISK 

3. To promote 

the acceptance 

of SANAS-accredited 

results 

among global 

partners to 

advance South 

Africa’s trade 

and economic 

development 

objectives 

4. 

To support 

regional 

integration 

and relations 

to advance 

South Africa’s 

trade, industrial 

policy 

and economic 

development 

objectives 

ILAC, IAF, 

SADC, AFRAC, 

Eastern African 

Community 

(EAC), regulators, 

industry 

Marketing, 

road shows, 

workshops, 

website, etc. 

Accreditation 

support to lock 

out poor quality 


services 

9 

10 

11 

12 

Failure to meet international 

requirements 

Lack of understanding 

of the Accreditation 

Act, SANAS's mandate 

by other government 

departments, industry 

and the public (including 

staff and assessors) 

Increase in reliance 

on SANAS to support 

SADCAS 

Insufficient funds to 

maintain regional 

projects 

• Ensure international participation 

• Develop and distribute relevant 

marketing material 

• Conduct workshops 

• Identify and train regional 

resources 

• Acquire donor funding 


27

12. FRAUD PREVENTION PLAN 

SANAS’s Fraud Prevention Strategy, as documented in FP04, is focused on the following areas: 

1. Formalisation and implementation of a zero-tolerance culture to fraud and corruption within SANAS 

2. A high level of fraud awareness 

3. Management and control of an environment that proves difficult to misappropriate assets 

There are essentially four pillars to a fraud prevention strategy, which have been used as the basis for 

SANAS’s Fraud Prevention Plan. These are the following: 

1. Creating an anti-fraud environment 

2. Understanding and managing the risks 

3. Being proactive in defence 

4. Reacting swiftly to suspected or known crimes 


28

Table 5: Fraud Prevention Plan 

FP04 

REF 

ACTION RESPONSIBILITY 

a) Formalising and reinforcing our anti-fraud environment 

Corporate governance 

14.1.2 Continued focus on governance Board and Management 

Ensure that the internal audit function is able to maintain its independence Audit and Risk Committee 

Review existing code of conduct as detailed in the HR Policy to ensure that it is 

Management 

comprehensive, clear and easily interpreted 

Fraud prevention responsibility, sponsorship and control functions 

Anti-fraud Policy reviewed annually Audit and Risk Committee and 

Management 

Implement, maintain and monitor Fraud Prevention Plan Management 

Anti-fraud Policy and Anti-fraud Charter 

14.1.6 Create a zero-tolerance environment towards fraud Management 

Ongoing fraud awareness campaign 

14.1.7 Publish Anti-fraud and Corruption Policy together with the Fraud Prevention Plan and Antifraud 

Charter to employees 

Management 

Investigate methods to communicate issues with regard to fraud and corruption Management 

b) Understanding and managing risks 

14.2 Include fraud risk identification as part of the enterprise-wide risk assessment Board and Management 

c) Being proactive in defence 

Improvements to accounting and internal controls and other procedures 

14.3.1 Maintain proper, strong and appropriate accounting and internal controls Management 

If necessary, formulate appropriate solutions for fraud risks and control issues Management 

If necessary, institute forensic controls where risks are not adequately managed by ordinary Management 

controls 

Fraud awareness training for all employees 

14.3.2 Empower employees through awareness training Management 

Supplier and employee vetting procedures 

14.3.3 Perform background checks of prospective employees and service providers Management 

Confidential crime information database 

14.3.4 Establish a confidential crime reporting database for the recording of all incidents of 

Management 

identified malpractice and criminal behaviour in SANAS 

d) Reacting swiftly to suspected/known crimes and irregularities 



29

13. MATERIALITY AND SIGNIFICANCE FRAMEWORK 

Realising SANAS’s vision depends on the nature of every transaction conducted by every employee. The 

ethical conduct of SANAS is built on moral values such as trust, integrity, confidentiality and discretion, 

and underpins the organisation’s commitment to adhere to the highest possible acceptable norms and 

standards of society in all dealings with clients and stakeholders, as well as the relationships within SANAS. 

SANAS’s staff members will refrain from any conduct that may be prejudicial to the image and name of 

SANAS, and will ensure that all activities are done in a spirit of exceeding expectations and according to the 

legal framework of South Africa. 

13.1 MATERIALITY LEVEL 

SANAS is not an asset-intensive entity and the revenue component is selected as a basis for the materiality 

calculation as the level of activity is dependent on the total revenue received. Therefore, the level of a 

material loss is assessed at 0.5% of the budgeted total revenue (which includes accreditation income, the 

dti grant, training income, interest and any other income). 

Misstatements that are large individually or in aggregate may affect a reasonable user’s assessment, which 

results in materiality being based on qualitative grounds. SANAS has considered the following qualitative 

factors: 


Table 6: Materiality – factors and measures 

FACTOR 

• Unusual transactions entered into that are not of a 

repetitive nature and are disclosable due to the nature 

and the knowledge thereof that affect the decisionmaking 

of the users of financial statements 

• Fraudulent or dishonest behavior of all officers or staff 

of the organisation 

• Going concern and liquidity, including loss of 

significant customers 

MEASURES 

• Any activity that has not occurred previously and has not 

been budgeted for 

• Any rand value will warrant disclosure 

• Loss of reserve 

• Significant increase in creditors/liabilities 

• Loss of large medical, blood and testing programme 

customers 

• Constraints on the availability of government funding • Non-payment of any transfer payment 

• Changes in the industries in which the entity operates • Any matter that changes the measures of accreditation 

• Changes in key personnel, including the departure of • Loss of the CEO, senior managers or field managers 

key executives 

• Changes in the IT environment • Loss of the dti’s service level agreement 

• Loss of the dti’s infrastructure 

• Pending litigation and contingent liabilities • Any legal action raised against SANAS 

• Public accountability to stakeholders, Parliament, 

auditors and the community at large 

• The sensitivity of the organisation’s financial 

information in making decisions 

• Inadequate policies and procedures to mislead users in 

making decisions 

• Any matter that is raised as fruitless and wasteful 

expenditure 

• Any decision that impacts on operations or staff 

• Any unusual behaviour or transactions 

• Material infringement of legislation • Any misconduct for which disciplinary action is taken 

• The imposition of regularity restrictions that can 

impair operating capabilities 

• Unannounced regulations that affect the accreditation 

process 

30

FACTOR 

• Any transaction, activity or conduct entered into that 

could result in reputation risk 

• Application of a new accounting policy or changes in 

the accounting policy 

MEASURES 

• Any media liaison 

• Any change effected 

13.2 SIGNIFICANCE LEVEL 

The organisation will submit relevant particulars of the transaction to the Board for approval of the transaction. 

The following transactions will be regarded as significant and require full disclosure: 

• Acquisition or disposal of a significant asset 

• Commencement or cessation of a significant accreditation activity 


31


32 

14. ANNEXURE INDICATOR PROFILE 

Number of new accreditation programmes 

developed and rolled out 

Indicator title Reduce the vacancy rate Number of PDI assessors registered with SANAS in the 

assessors pool 

Develop and roll out accreditation 

programme for IPAP 2, Department of 

Labour, etc 

Short definition Percentage of position vacant SANAS registered assessor pool is representative of 

the demographics of our country 

The new programmes supports the 

monitoring of government’s strategic 

objectives pertaining to industrial 

development, exports and the protection of 

health, safety and the environment 

Diversify SANAS’s assessor pool to perform the 

required assessment in support of SANAS’ mandate 

Purpose/importance The indicator measures SANAS’ human 

resources capacity which is important for 

ensuring service delivery 

Alternative indicator None None None 

Potential other uses of indicator None None None 

Source/collection of data Termination report Assessor register Quarterly report against the Buisness plan 

Lead/ coordinating agency Human Resources Accreditation Provision Strategy and Development 

Number of PDI registered assessors Number of new programmes ready to offer 

accreditation 

Method of calculation Number of vacant positions filled expressed 

as a percentage 

Baseline 15% annually by March 2013 62 by March 2012 1 for bodies that measurement and verify 

energy efficiency 

Target and target date for the indicator 10% annually 76 by March 2014 Quarterly milestones as per the Business 

Plan 

The numbers to be achieve is reliant on 

some activities outside of SANAS control 

such as were a regulation is required 

Data limitations None The target are dependent on the trainees successfully 

completing both theoretical and practical training 

Quality assurance strategy Quarterly performance evaluations Quarterly performance evaluation Quarterly performance evaluation 

Type of indicator Outputs Output Activity 

Calculation type Cumulative Cumulative Non-cumulative 

New indicator Continues without change Continues Continues 

Reporting cycle Quarterly Quarterly Quarterly 

A lower than target performance will 

impact negatively on governments’ ability 

to achieve l its development objectives 

A larger pool of PDI assessors is desirable in order 

to diversify the assessor pool and ensure sufficient 

availability of assessors to perform assessments 

Desired performance A lower level of performance may 

negatively impact on SANAS’s service 

delivery efficiency and prevent SANAS from 

achieving its stated objectives 

Indicator responsibility HR Manager Field Managers Senior Manager: Strategy and Development

ANNEXURE INDICATOR PROFILE 

Number of meetings where SADCA 

secretariat and regional services is 

provided 


AFRAC secretariat services is 

provided 

Indicator title Number of accredited organisations Percentage input into the international 

accreditation requirements 

Provision of SADCA secretarial 

service 

Organisations accredited by SANAS Provision of AFRAC secretarial 

services 

Short definition The indicator measures SANAS attempts to 

influence the international accreditation 

requirements of ILAC and IAF in order 

to support acceptance of South African 

exports 

The support indicates South Africa’s 

commitment under SADC for 

regional integration 

The support indicates South 

Africa’s commitment under 

the African Union for regional 

integration 

Extension of accredited organisations in 

the fields of testing, inspection, certification 

bodies and other conformity assessment 

services 

Purpose/importance To influence the international accreditation 

requirements of ILAC and IAF in order to 

support acceptance of South African goods 

and services 

Alternative indicator None None None None 

None None None None 

Potential other uses of 

indicator 

Quarterly report against the 

Buisness plan 

Quarterly report against the Business plan Quarterly report against the 

Business plan 

ILAC and IAF tracking register, SANAS 

internal control register 

Source/collection of 

data 

Quality Services Streams AFRAC Secretariat (SANAS) SADCA Secretariat (SANAS) 

Lead/ coordinating 

agency 

Number of accredited organisations 3 meetings 3 meetings 

Method of calculation Percentage input into international 

accreditation requirements 

Baseline 90 % by March 2013 1362 in December 2011 3 meetings 3 meetings 

95% by March 2014 1438 by March 2014 3 meetings 3 meetings 

Target and target date 

for the indicator 

None None None 

Data limitations The accuracy of the measures is dependent 

on the relevance of the information and 

the expertise that can provide expert input. 

Quarterly performance evaluations 

Quarterly performance evaluations Quarterly performance 

evaluations 

Internal audit and centralise all 

international correspondence relating to 

input required 

Quality assurance 

strategy 

Type of indicator Output Activity Activity Activity 

Calculation type Cumulative for the year Cumulative Cumulative Cumulative 

New indicator None Continues New None 

Reporting cycle Quarterly Quarterly Annually Annually 


33


34 

A lower or higher level of 

performance than targeted is not 

desirable there will be no added 

value 

A higher level of performance 

than targeted is very desirable as 

it will contribute to achieving the 

objective in a shorter period than 

expected, and thereby fast track 

the benefit to be derived 

A lower than targeted performance will 

impact negatively on government’s ability to 

achieve its development initiatives 

Desired performance Lower level than targeted is not 

desirable as it could damage SANAS’ 

international standing and negatively 

affect South Africa’s exports and the cost 

of exports making our goods and service 

competiveness and restricting economic 

growth 

Indicator responsibility Quality Manager Senior Managers: Stream AFRAC Secretariat SADCA Secretariat

NOTES 


35

www.sanas.co.za 

Tel: +27 12 394 3760 

Fax: +27 12 394 0526

SANAS - Department of Trade and Industry

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