Uncategorized
By Thapelo Molefe
Members of Parliament’s Portfolio Committee on Education have recommended that the Special Investigating Unit probe a dodgy tender awarded by the Western Cape government.
The committee held a crucial session this week to consider allegations on irregularities regarding the R50-million IT tender.
The tender, facilitated by the State Information Technology Agency (SITA), has sparked controversy following a forensic investigation by law firm Cliffe Dekker Hofmeyr, raising questions about transparency and governance.
The firm has flagged multiple procedural issues, including the acceptance of a bid that contained two pricing options, which was in breach of procurement regulations.
Despite these findings, the department has maintained its stance that there is no wrongdoing on its part.
A legal advisor to the department, Ian Steyn, explained that the department relied on SITA’s recommendation when awarding the tender to Blue Networks Consortium (BNC).
“There were no findings of fraud or corruption against WCED officials,” Steyn told the committee.
“Our officials participated as required in the SITA bid evaluation committee, and all decisions were based on SITA’s recommendations.”
Steyn clarified that the department was unaware of any irregularities at the time of the award.
He also rejected the findings of the forensic report, which identified procedural lapses, claiming that senior counsel reviewed the report and found its conclusions unfounded.
The tender process began when the department requested SITA to procure local area network services for Western Cape schools. SITA’s evaluation committees, including department officials, reviewed bids and ultimately recommended BNC.
However, forensic investigation, commissioned by SITA, uncovered governance failures, including inconsistencies in the bid evaluation process and a controversial round robin vote by SITA’s board.
A director at the firm, Tendai Jangara, highlighted these issues in her presentation.
“The language in the tender created confusion, particularly around pricing options,” Jangara explained.
“This highlights the need for clearer and more transparent procurement processes.”
She added that some evaluators failed to seek necessary clarifications from bidders, potentially disadvantaging competitors like Dimension Data.
SITA’s interim board later withdrew its recommendation to award the tender to BNC, citing findings from the investigation. This decision placed the department in a precarious position, as it had already entered into a contract with BNC.
Steyn explained the department’s response.
“The decision to award the tender is final and cannot be unilaterally revoked or terminated by the WCED.”
SITA has since initiated legal proceedings to review and set aside the decision to award the tender to BNC.
Steyn emphasised the department’s intention to oppose the application, citing financial and operational risks.
“The WCED will continue to honour the contract with BNC unless and until valid and substantiated reasons exist to take steps to set it aside,” Steyn said.
However, committee member Lerato Ngobeni questioned the department’s judgement in continuing to honour the contract.
“Just because the department was not directly implicated doesn’t absolve it of accountability,” Ngobeni said.
“How can we ignore the red flags raised by an independent forensic investigation?”
Ngobeni questioned the rationale behind awarding the tender despite alleged irregularities, and highlighted a lack of transparency regarding BNC’s ownership and qualifications.
“We must follow this matter to its logical conclusion,” Ngobeni stated. “It is unacceptable that the public has no clarity on who BNC is, and why this contract was awarded amid apparent discrepancies.”
Several committee members recommended escalating the matter to the Auditor-General and the SIU to ensure accountability.
“We must write to the Treasury to validate the contract and involve the Hawks to investigate this matter thoroughly,” said a committee member Sedukanelo Louw. “The current board is clearly conflicted and incapable of providing an impartial review.”
The tender in question was awarded to BNC despite findings of irregularities by both an external audit report and the Auditor-General.
“You knew what specifications you set up,” said committee chairperson Joy Maimela.
“It can’t be a justification to say there was ambiguity or confusion on the bidders’ part. You set the specifications, so you were not confused.”
Maimela argued that BNC gained an unfair advantage by submitting two pricing options for a single bid, a move that she said materially impacted the awarding of the tender.
“Even if they were confused, you were not confused,” she stated emphatically.
Maimela highlighted the AGSA’s findings, which flagged irregularities in the procurement process months after the tender was awarded. She questioned why action was not taken earlier, especially since initial concerns were raised in a report by the law firm.
“We are being told that no reviewable irregularities exist, yet AGSA is now flagging the very same issues,” Maimela said.
“This points to complacency. You had the chance to halt the project when the concerns first arose, but you continued.”
SITA acting managing director Simphiwe Dzengwa confirmed that the tender process had significant shortcomings, and there had been a suggestion that both the SITA and the department approach the courts.
However, Dzengwa noted that the province later opted to rely on its own legal opinion, further complicating the resolution process.
Deputy Minister of Communications and Digital Technologies, Mondli Gungubele, criticised this move, stating that the Western Cape’s decision to act unilaterally undermined efforts to resolve the matter collaboratively.
He called for the board to either implement the forensic report’s findings or seek judicial review, describing their current approach as “misgovernance”.
The committee chairperson reiterated the need for swift and decisive action.
“We cannot allow SITA’s governance crisis to undermine critical service delivery, especially in areas as vital as education.”
INSIDE EDUCATION