Really depends on how this is managed and what type of integration the websites have. Everyone says wordpress, because it's an opensource tool to manage content, but (and I have not seen the tender report) maybe the cost included some expensive CMS (Vignette or otherwise) and also included upfront purchase of hardware or hosting cost.
If you run 38 websites, you would probably self-host or at least manage it with a team of technical support staff (that team would be small) but then you would also run a content team (you would probably need to look at 2 content people per site and a pool of graphics designers etc). When you then add in management/project management, your operational costs of 38m/p.a. might not be far-fetched (if you consider opexed hardware etc).
I am honestly more pissed off that someone built a toll-system for billions of rands and that our prez has a cushy place for 250bn.