Dodgy R1.2 billion IT tender scandal involving SITA and WCED officials revealed in Parliament

Irregularities have once again been highlighted following a forensic investigation into the awarding of a R1.2 billion tender by the State Information Technology Agency (SITA).

IOL reported in November last year that the R1.2 billion tender for the provision of Local Area Network (LAN) services to Western Cape schools hung in the balance, at the time, after a comprehensive forensic investigation conducted by Cliffe Dekker Hofmeyr Inc. exposed significant irregularities.

Parliament’s Portfolio Committee on Communications and Digital Technologies was briefed on the findings on Friday of the extensive investigation conducted by law firm Cliffe Dekker Hofmeyr Inc. which points fingers at officials in the Western Cape Department of Education in the lucrative tender for the provision of LAN services to schools around the Western Cape.

The respected law firm conducted the investigation at the behest of SITA, before briefing the parliamentary committee on the its findings on Friday.

The tender was initiated to expand the LAN services in Western Cape schools, as the provincial Department of Education wanted to enhance LAN infrastructure to sustain and advance existing network facilities.

However, according to the IT Web report, Tendai Jangara, director and lead of the corporate investigations team at Cliffe Dekker Hofmeyer told the parliamentary committee that given it was an agency transaction, it meant two parties were involved in the process: SITA officials and Western Cape Department of Education officials.

Blue Networks and Infrastructure was recommended as the successful bidder, following the bidding process.

However, Jangara told the parliamentary committee that one of the irregularities unearthed during the investigation centred around how the winning bidder, Blue Networks and Infrastructure had submitted two pricing options.

Cliffe Dekker Hofmeyer established four irregularities after looking at the process from its initiation stage until its completion – the point where a recommendation to award was made, according to the IT Web report.

Apart from the two price option, the other identified irregularities include the disqualification of Dimension Data, and board round robin process for approving recommendation for award.

“The decision to evaluate both price proposals submitted by BNC rendered the tender process unfair, since the RFB was unclear on whether bidders were allowed to submit more than one pricing option.

Cliffe Dekker Hofmeyer’s Jangara said following the investigation, it was found that tge process and award of the tender RFB 2556 – 2022 was “unfair and uncompetitive as the bidders were not evaluated on an equal footing”.

Cliffe Dekker Hofmeyer was brought in to probe the tender irregularities by SITA following a request by then minister Mondli Gungubele, in July 2023.