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SIU to probe e-government contract

Gauteng premier David Makhura wants the Special Investigating Unit (SIU) to probe into a security contract, which has cost the department of e-Government over R300 million in irregular expenditure.

Over the years, Makhura said, the provincial government has "done tremendous work to promote clean governance and ethical leadership in Gauteng".

He said the introduction of the Open Tender System and the Ethics and Anti-corruption Panel was aimed at eliminating corruption.

Makhura said government would continue acting decisively on corruption.

The department terminated the Gauteng Security Operation Centre contract which was renewed without tender procedures over the last four years.

The company, previously known as Lefatshe Technologies, has been providing cyber security services to the provincial government for the past 16 years, earning themselves in the region of R1 billion.

The province's MEC for finance and e-government, Nomantu Nkomo-Ralehoko said: “The contract was extended for five years from the 1 April 2011 – 31 March 2016. Thereafter, Lefatshe Technologies (Proprietary) Limited changed its name to G-SOC Services (Pty) Ltd in 2017. From here on, the contract has been on a month to month until its termination.”

Since 2016, the department incurred cumulative irregular expenditure of over R100 million because of the contract in question.

The e-government department also incurred an additional irregular expenditure of R200 million between 2009 and 2011 on the same agreement.

The controversies around the contract came to light in 2018 when head of treasury in Gauteng, Nomfundo Tshabalala advised the department to register the contract extension as irregular expenditure and immediately commence with the treatment process as per the National Treasury’s updated guidelines on irregular expenditure.

Tshabalala accused department officials of “poor planning that resulted in continuous extensions.”

Recently, fresh reports emerged that after the cancellation of the contract, officials in the department, hastily appointed a new service provider without proper tender processes citing the COVID-19 crisis.

In2IT Technologies, which won the tender denied the allegations of impropriety in the awarding of the tender.

It said it had a strict governance structure and processes to ensure compliance with the “Public Finance Management Act and Municipal Finance Management Act of South Africa, as well as Sarbanes-Oxley (SOX) compliance in addition to being fully compliant with the Foreign Corrupt Practices Act (FCPA).”

Content created and supplied by: Mthokozisi2020 (via Opera News )

David Makhura Gauteng Nomantu Nkomo-Ralehoko Open Tender System SIU


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