South African solar panel company responds to allegations about Chinese imports and gag order

Durban-based Artsolar has responded to reports of investigations into the extent of its local solar panel manufacturing capacity and says it has suffered reputational damage from individuals defaming the business.

This comes after the Industrial Development Corporation (IDC) launched an investigation into Artsolar over claims that 95% of its modules were imported from China and weren’t manufactured locally.

“Recent media reports have cast unfounded aspersions on the reputation of Artsolar, a local manufacturer, assembler, distributor, and installer of solar-related products which was founded in 2010,” it said.

Its response came in a statement published on X by energy expert and EE Business Intelligence managing director Chris Yelland.

Artsolar accused various media players of recycling allegations regarding its interim interdict gag orders against Brett Latimer, journalist Bongani Hans, and two former Artsolar employees.

“In most cases, an emotive headline referring to a ‘Gagging Order’ has been used. At no stage has it been ARTsolar’s intention to ‘Gag’ the media,” it said.

“The order was sought rather to prevent the malicious, defamatory, and distorted narratives that appear to be motivated by personal vendettas.”

It added that it intentionally chose not to argue its position in the media.

The interim interdict issued on 26 March 2025 by the Durban High Court bars Latimer, Hans, and the two former employees from making written or verbal comments or statements concerning Artsolar.

“Several new reports have appeared that have recycled the very allegations that were found to be prima facie defamatory and made with malice,” it said.

Artsolar said its core function is to supply government-funded projects that require local content as per national legislation.

“In some instances, where there is limited volume, Artsolar supplies solar panels that are more cost-effective; however, Artsolar’s warranties and quality control remain in effect,” it added.

The court hearing for finalising or dismissing the interdict against the whistleblowers is scheduled for 29 July 2025.

IDC investigates Artsolar over Chinese imports

The IDC’s investigation into Artsolar comes after it provided R90 million in funding to upgrade Artsolar’s solar assembly and manufacturing plant in New Germany.

Latimer, a former Artsolar customer, accused the company of defrauding his company, Oxford Family Supermarkets, by inflating panel prices.

He also accused Artsolar of misrepresenting that its equipment was manufactured locally when it allegedly came from China.

The gagging order interdict also applies to former Artsolar employees and whistleblowers Kandace Singh and Shalendra Hansraj.

Hansraj provided a supporting affidavit alleging that 95% of Artsolar’s modules were imported from China during his time at the company from July 2019 to January 2024.

The IDC approached the court arguing that the gagging order would hamper its investigation into the allegations.

Acting Judge Paul Wallis agreed that the IDC should have been included in the original proceedings and found that Artsolar had no absolute right of protection from defamatory allegations.

He amended the order to remove reference to the IDC, enabling the government entity to investigate the claims raised by the whistleblowers.

IDC spokesperson Chimemwe Manza said the IDC’s funding was intended to upgrade the plant, enhance localisation and import substitution, among other outcomes.

However, it did not specify a certain number of solar panels that Artsolar should produce. He also said the IDC has not yet established any wrongdoing by Artsolar.

Artsolar chairman Beninchand Seevnaryan pointed to this fact in his initial response to media reports.

He said the company never made a “contractual undertaking or representation as to where the panels were built”.

However, after the latest court developments, Artsolar tweaked a key description on its website. The original description read as follows:

“As a local manufacturer of solar PV modules (solar panels), we are equipped to provide you with world class solar related products that are internationally certified, locally certified and locally guaranteed.”

It tweaked the description to add “/assembler” after “manufacturer”.