Though management at The State Information Technology Agency (Sita) has tried to downplay allegations of wrong-doing in adjudication processes of high value Government ICT tenders, the recent hasty departure of former CE Llewellyn Jones paints a picture of an institution torn apart by cronyism and corruption.<\/p>\n
Jones tendered his resignation after he allegedly refused to heed an order from Government chief information officer Michelle Williams that he rescind Sita\u2019s bid evaluation committee\u2019s decision to award a R1,5m business process management tender to a company other than the one chosen by Sita\u2019s bid evaluating committee.<\/p>\n
Most worrying for the opposition Democratic Alliance \u2013 which wants Government to reverse Sita\u2019s recommendation that a R16bn Home Affairs tender to produce smart chip identity cards for 48m citizens be awarded to companies run by former Sita executives \u2013 is the increasing number of former Sita employees benefiting from State tenders.<\/p>\n
Pierre Rabie, DA chairman for commerce, says: \u201cThe manner in which the R16bn Home Affairs tender has been managed raises suspicion \u2013 more so because the bulk of beneficiaries are former Sita executives who by virtue of their association with the agency gained undue advantage over competing bidders.\u00a0 It\u2019s unethical business practice.\u201d<\/p>\n
Despite tabling a bid of R15,5bn \u2013 substantially higher than the lowest bidder\u2019s R1,5bn \u2013 National Pride, a consortium led by former Sita Coo Noedine Isaacs-Mpulo along with Vusi Magagula, former chief information officer, looks set to be given a huge chunk of the Home Affairs tender.<\/p>\n
Sita CE Femke Pienaar has flatly denied any hint of cronyism in the awarding of tenders.\u00a0 \u201cAs far as I know, a decision hasn\u2019t been made on the winning bid for the Home Affairs smart card tender,\u201d Pienaar says.<\/p>\n
Pienaar was quick to dismiss corruption allegations levied at the State\u2019s ICT service procurer.\u00a0 \u201cSita adheres to strict procurement regulations laid down by Government.\u00a0 There\u2019s no documented record of outside interference in the tender adjudication process,\u201d says Pienaar, adding the outcome of the smart card tender shouldn\u2019t create the impression that former Sita officials have in the past benefitted from Government contracts.<\/p>\n
But the evidence seems too conspicuous, says Rabie.\u00a0 Indeed, JSE-listed technology group, GijimaAst, whose CE Jonas Bogoshi is a former Sita executive, is another company that recently was awarded a R2,6bn contract by the agency to digitize Home Affairs documentation.\u00a0 Gijima bagged the tender within three months of Bogoshi quitting his position at Sita to join the technology group.<\/p>\n
Says Rabie: \u201cThat\u2019s too strange a coincidence.\u00a0 It\u2019s precisely why the DA wants Government to cancel these contracts.\u00a0 It seems to us the adjudication processes were just mere formalities, as most of those decisions were pre-determined.\u201d<\/p>\n
In fairness, Pienaar says former Sita employees have the right to tender for Government business as long as their bids meet the stipulated compliance standard.\u00a0 \u201cOur procurement policy doesn\u2019t exclude former employees from tendering for Government business.\u201d<\/p>\n
However, Rabie counters that Sita\u2019s procurement policy (as outlined by Pienaar) contravenes the new Consumer Protection Bill.\u00a0 \u201cIt\u2019s categorical when it comes to former Government officials tendering for business institutions that they previously served.\u00a0 There\u2019s a cooling off period of 18 months, after which the individuals can then tender for business.\u201d<\/p>\n
Rabie blames Government for Sita\u2019s alleged woes, saying the State has been paying lip service with regard to implementing existing regulations and promulgating stricter legislation (such as that propose by the ANC at its Polokwane conference last year) that should bar former Government officials from tendering for State business.<\/p>\n
There may be merit in Rabie\u2019s allegation if the lag between the ANC\u2019s national executive committee\u2019s (NEC) proposal to promulgate legislation that would guide its membership and former Government officials on tendering for State contracts and its execution is anything to go by.<\/p>\n
\u201cIt\u2019s time Government showed leadership on this issue, as this kind of crony capitalism is unfortunately not helping the cause of entrepreneurship,\u201d Rabie says.<\/p>\n