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Department of Trade and Industry Denies Company Registrations Crisis

JOHANNESBURG, Jan 25, 2012 -- The Department of Trade and Industry (DTI) says there is no need for intervention in the Companies and Intellectual Properties Commission (CIPC) despite a deluge of ongoing complaints about the commission’s inefficiencies.

Speaking from Davos in Switzerland, DTI spokesperson, Sidwell Medupe, told Moneyweb: "For us there is no crisis". He said that the CIPC had an 18-month turnaround strategy and was only eight months into the process.

Medupe said Trade and Industry Minister Rob Davies had met with the commission last week and was satisfied with its report back. "While they are busy with their strategy, there is no need for intervention. They must be given a chance to implement the strategy."

On Tuesday the Democratic Alliance’s Tim Harris called on Davies to intervene saying: "It is ironic that Minister Davies has commissioned an inquiry into the chronically under-funded National Consumer Commission on the back of a trade union complaint, while incapacity at CIPC is doing real damage to South Africa’s reputation as a business destination. It is time for him to intervene in the Companies Commission to fix the capacity and management problems."

Moneyweb e-mailed eight people on Tuesday night who had complained about the CIPC in 2011. Five extremely frustrated respondents replied that the system was in complete disarray.

One e-mail read: "Still have problems! Last week it was offline for quite a while and then when finally back online, the system kept saying the security code was incorrect. Once in, doing an annual return was a bit of a mission. Sometimes one has to keep trying as it says the registration number doesn't match the name, and when finally in, sometimes it won't let you type in the full telephone number!!!"

Spelling errors are costing businesses time and money as an extract from another e-mail explains: "Appoint new directors - have major spelling mistakes with their names and address. To have ANY errors corrected, be it a name spelling, an address or whatever, takes forever to come through the system. We often have Limpopo at the end of our addresses????"

Another read: "I registered a new (Pty) company and CIPC made a big error with the name. I submitted all the correct documentation, one form being the CoR 14.1B (Notice of Incorporation – Alternative names for the company) and the CIPC issued a CoR9.4 (Confirmation of name reservation). However when they processed the registration they overlooked this and issued the company with the generic name (being the company registration number)."

It further lamented: "I have called several times and spoken to different people who have told me that the case has been escalated and is going to be sorted as the error was done on their side but as of yet have had no response or feedback."

Yet another read: "Companies are registered with spelling errors and it takes months to fix if you send it back to that section – IF they even get back to you at all.

"The documents that are registered have to be sent back 90% of the time because of spelling mistakes, etc," says another e-mail.

During a briefing at the CIPC offices in Pretoria in 2011, these issues were raised and Commissioner Astrid Lupin conceded staff needed more training.

In July 2011, Lupin said backlogs at the commission would be addressed by August. However, clients say this has still not been addressed.

Another complaint that regularly surfaces is the perceived incompetence of the call centre.

Again, extracts from e-mails sent to Moneyweb in this regard:

- " …They are just impossible to get through to, and when one finally does all one gets its [sic] promises of assistance and feedback but this doesn’t happen. I wish they would have someone there who could give "their clients" feedback on their various queries/applications, just so we know what’s happening."

- "The call centre is a joke – I have on numerous occasions waited more than an hour for my call to be picked up (if you are lucky – otherwise you just get cut off)."

- "I don't even bother to try and phone their offices anymore, I don't have the patience to hold on for 50 minutes in my busy day and get nowhere, have the phone answered and then just get left "hanging" when nobody comes back to you with an answer, of course, one is just going to get frustrated and put the phone down......"

- "The call centre provides clients with incorrect information eg, if they phone to ask about lodged documents, they are told that we should check our basket and that we do not collect everyday!!!"

The list of complaints is endless and is virtually identical to the ones reported on last year. Documents going missing, waiting for months to register new companies, incompetent staff members, the incorrect capturing of data, etc, etc.

CIPC spokesperson Elsabe Conradie has concurred with the ministry’s view that the situation has not reached crisis proportions.

With regards to backlogs, Conradie explained that the commission embarked on a project in August 2011 to address the problems and had done so in 99% of the cases. In November 2011 the CIPC was inundated with new company registrations, most of which had to be processed in January 2012.

She added that additional staff were brought on board to assist but that the influx was more than anticipated. On January 16 2012, the CIPC implemented a new company online registration facility. Conradie explains that if a company is registered say on a Monday and the necessary documentation is delivered on the same day, the company will be able to trade on the Tuesday.

Companies registered online are also likely to be more accurate in terms of spelling and other details. She conceded that errors in data capturing were problematic as staff were previously under tremendous pressure to adhere to certain targets set for them. This has since changed.

With regards to a plethora of complaints about the call centre, Conradie said the issue would be resolved by around mid-February with the deployment of staff in various divisions to handle queries. Employees are currently undergoing training and will have to adhere to service standards and turnaround times. Names, telephone numbers and e-mail addresses will be posted on the CIPC website for the public to call.

"We are implementing a lot of improvements but it is going to take time. We will stick to the deadlines provided by the minister." I know it’s taking more time than anticipated but the public must bear with us and they will see constant improvements," Conradie said.

On the issue of registering online, one of the e-mails received commented: "To lodge electronically when you can - is absolutely wonderful, we still do all the prep work that is required to be on file. Why can't we lodge ALL electronically - COR44 - Auditor/Company Secretary/Registered Office/CCOR39's just like we used to - we then know that it is correct because we have entered all the information?"

Posted by Veronica Silva Cusi, news correspondent
Source: http://www.moneyweb.co.za


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