ARTsolar, a firm based in Durban, has been making headlines over the last several weeks after securing a gag order against journalist Bongani Hans and three whistleblowers.
See:
- Durban judge gags journalist
- Courts are being utilized to suppress journalists and activists.
- Legal win for free speech: IDC unshackles itself
According to the company’s website: “We serve as both a local producer and assembler of solar PV modules (panels), along with being a distributor for various solar-related items. This allows us to offer top-tier products that meet international standards, have received local certification, and come with a local guarantee.”
The concern seems to revolve around the degree of local manufacturing versus imports from China for ARTsolar’s solar panels, along with the detail that the Industrial Development Corporation (IDC) provided financing amounting to roughly R90 million to the company.
We directed questions to ARTsolar’s Chairperson Bebinchand Seevnaryan. Here is the interview, with only minor edits applied. However, our main worry is that due to the ongoing gag order, the whistleblowers cannot share their perspectives on this discussion, constituting a significant infringement upon freedom of speech.
GroundUp: Was ARTSolar awarded R90 million from the IDC?
ARTsolar:
ARTsolar and the IDC have finalized a documented financial agreement. According to this pact, an amount totaling roughly R90 million was set aside to cover the acquisition and setup of a production facility. The IDC’s statement affirms that these funds were utilized strictly as planned. This contract makes no stipulations requiring ARTsolar to produce solar panels domestically nor imposes limitations on where such panels can come from. Hence, none of the loaned money deviated from what both parties had agreed upon initially. Therefore, ARTsolar has full liberty to either fabricate products within the country or bring them in from abroad. ARTsolar remains entirely indigenous-owned with more than 300 locals employed at the company.
The agreement included with the court documents of the IDC clearly indicates that the provision of funds was entirely independent of and unrelated to any form of local production. The paperwork makes no mention whatsoever of mandatory local manufacturing. These funds were designated specifically for purchasing and setting up a manufacturing facility. In their affidavit, the IDC did not argue against this interpretation either.
GroundUp: Is it correct that you sourced the solar panels from China instead?
ARTsolar:
ARTsolar has no requirement to produce domestically or refrain from importing from any nation, hence the concept of an alternative approach doesn’t apply. The facilities agreement documents the collaboration between the applicant and a manufacturing partner based in China. Therefore, since its outset, ARTsolar maintained transparency, and the IDC endorsed this arrangement by signing off on the agreement with the Chinese entity involved.
GroundUp: What proportion of your inventory presently comes from China?
ARTsolar:
ARTsolar must import products when the factory’s capacity is fully utilized. These panels are not part of the public procurement program. Each panel undergoes local testing. The specific percentages are considered confidential for business reasons and thus cannot be shared.
GroundUp: Do you purchase all of your Chinese stocks from the Chinese company Einnova Solarline?
ARTsolar:
No.
GroundUp: Were all the solar panels purchased from international firms acquired independently of the funding you got from the IDC?
ARTsolar:
The IDC funds were utilized for purchasing and setting up the plant, rather than covering the cost of imported panels.
The data presented here is fully understood by the IDC. Having performed numerous reviews of ARTsolar’s operations, they have consistently failed to identify any violations or breaches committed by the company. The organization has unrestricted visibility into all of ARTsolar’s documents and can select an individual to join the board. Similarly, the IDC shares responsibility regarding the importation of certain photovoltaic modules alongside ARTsolar. Consequently, over several years, the IDC has maintained comprehensive insight into precisely which products are produced, sourced from imports, and the reasons behind these actions. Within their official statement, the IDC confirms that every dollar drawn down from loans adhered strictly to designated purposes. None of this capital was utilized for financing imported components.
GroundUp: According to ARTsolar’s website, they mention: “Quoted from their site: ‘Being a local producer/assembly unit for solar PV modules (panels) and a distributor of various solar-related items, we can offer top-tier goods that meet international standards, have local certification, and come with a local warranty.'” Doesn’t this description suggest that you produce the panels domestically?
ARTsolar:
We are a LOCAL company specializing in the manufacturing and assembly of solar PV modules. Additionally, we serve as distributors and installers for various solar-related items. Every product we offer, including all panels—whether they are imported or produced domestically—is backed by local warranties. Please feel free to visit and tour our facilities.
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