Image: Redisa

To safeguard the program’s assets and operations, the Recycling and Economic Development Initiative of South Africa (Redisa) was placed under the liquidation.

Dr. Edna Molewa, Minister of Environmental Affairs, filed an urgent application at the Cape Town High Court to eliminate Redisa. Reportedly, the reason for elimination was Redisa’s intention to cease scrap tire collection.

Afterwards, the court appointed a liquidator to take immediate control over the organization including incentives to carry out the approved Integrated Industry Waste Tire Management Plan (IIWTMP). The Cabinet approved a policy decision to reshape the funding model which would affect financing of Redisa’s IIWTMP. According to the policy review, those changes were to align the funding model with the scope of the existing public finance management system.

In the aftermath, the decision evolved in the National Environmental Management: Waste Amendment Act being passed by Parliament to enable the implementation of both the revenue collection in terms of the Customs and Excise Act as amended and the National Pricing Strategy.

According to the Department of Environmental Affairs, Redisa was informed about the new legislation requirements. Notwithstanding, after several warning requests from the department, it failed to comply with those new requirements.

Carlo Van Eck, manager of SA Tyre Recyclers, reported Engineering News Online that it wasn’t clear how Redisa’s disbandment would further influence tire recycling industry in South Africa. He pinpointed that Redisa rented SA Tyre Recyclers’ facilities in Atlantis and this could have adverse financial implications. At the same time, he said it seemed that operations at those facilities would continue at normal pace. He asserted that there would be significant challenges only if the tires coming through Redisa didn’t show up.

Article source: Engineering News