Question NW27 to the Minister of Communications

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25 February 2019 - NW27

Profile picture: Ndlozi, Dr MQ

Ndlozi, Dr MQ to ask the Minister of Communications

Whether (a) her department and/or (b) entities reporting to her awarded any contracts and/or tenders to certain companies (names and details furnished) from 1 January 2009 up to the latest specified date for which information is available; if so, in each case, (i) what service was provided, (ii) what was the (aa) value and (bb) length of the tender and/or contract, (iii) who approved the tender and/or contract and (iv) was the tender and/or contract in line with all National Treasury and departmental procurement guidelines?

Reply:

I have been advised by the Departments as follows:

DOC and DTPS

The departments have not awarded contracts and/or tenders to any of the listed companies.

ENTITIES

FPB, MDDA, BBI, NEMISA, .zaDNA & Sentech

These entities have not awarded contracts and/or tenders to any of the listed companies.

BRAND SOUTH AFRICA

Kindly note that Brand SA contracted Vox Telecommunications as indicated below:

Name of the company

(i)Descriptions of services

(ii) aa. Value

(ii) bb. Length

(iii)Who approved the tender/contract

(iv)Tender/ Contract in line with the National Treasury

Vox Telecommunications (PTY) Ltd.

Internet and Voice over internet protocol (VoIP).

R23,657.12 per month inclusive of VAT

36 months’ contract, extended for further one year

36 months’ contract was signed by Ms. Alice Puoane - Chief Financial Officer

One-year extension of contract was signed by Dr. Jonty Tshipa – Director: Corporate Service

No record available to confirm whether or not the contract was in line with all National Treasury and procurement guidelines

ICASA

Kindly note that the Independent Communications Authority of South Africa contracted Vox Telecommunications as indicated below:

Name of the company

(i)Descriptions of services

(ii) aa. Value

(ii) bb. Length

(iii)Who approved the tender/contract

(iv)Tender/ Contract in line with the National Treasury

Vox Telecommunications

Provision of 20 Mbps Data Link 3 years from February 2015

R1 002 941.69

3 years from February 2015

3 years from February 2015

Yes

Vox Telecommunications

Audio and Video Equipment - Once-off 2016

R542 969.69

Once off 2016 ( May 2016)

Bid Adjudication Committee ( PFMA) requirement(BAC)

Yes

Vox Telecommunications

20 Mbps Data Link Access for Nelspruit Office - 28 months until September 2018

R7 870.33

28 month until September 2018

BAC and CEO

Yes

Vox Telecommunications

ADSL & MPSL 5 years from April 2017

R7 270 099.20

5 Years from April 2017

BAC and CEO

Yes

Vox Telecommunications

Network configuration changes - Once off

R2 052.00

Once off (September 2017)

SCM Manager and CFO

Yes

Total

8 825 932.91

       

SABC

Kindly note that SABC contracted the companies as indicated below:

Name of the company

(i)Descriptions of services

(ii) aa. Value

(ii) bb. Length

(iii)Who approved the tender/contract

(iv)Tender/ Contract in line with the National Treasury

Orion Telecom South Africa (Pty) Ltd(The supplier sent a notification of name change from Orion to Vox in May 2009. The company registration number as well as VAT number remained unchanged).

Telephone lines in the following Provincial Offices:

KZN, Mpumalanga, Eastern Cape, and Western Cape

R1,450,150.78

2009 to 2013

Provincial and Technical Managers and Head of Legal

Contracts were approved in line with Delegation of Authority Framework (DAF) applicable at the time.

Vox Telecommunications (Vox)

Telephone lines in the following Provincial Offices

KZN, Mpumalanga, Eastern Cape, and Western Cape

R2,180,047.15

2013 to 2018

Provincial and Technical Managers and Head of Legal

The contracts were continuation of subscriptions of initial contract entered into with Orion. The approval of the contract was done in line with Delegation of Authority Framework (DAF) applicable at the time. Subscriptions, water and lights, TV Licence Pay points and others similar services were part of exclusions as detailed in the Procurement Policy.

SAPO

Kindly note that SAPO contracted the companies as indicated below:

Name of the company

(i)Descriptions of services

(ii) aa. Value

(ii) bb. Length

(iii)Who approved the tender/contract

(iv)Tender/ Contract in line with the National Treasury

AFRAIT Pty (Ltd)

Supply Trailers

R14 134 720.00

9and a half months

GCEO

Yes

USAASA

Kindly note that the USAASA contracted Vox Telecommunications as indicated below:

Name of the company

(i)Descriptions of services

(ii) aa. Value

(ii) bb. Length

(iii)Who approved the tender/contract

(iv)Tender/ Contract in line with the National Treasury

Vox Telecommunications

Internet Connectivity equipment and Connectivity Services

R1 308 030.00

24 months

CEO, Mr Zami Nkosi

Yes

SITA

Name of the company

(i)Descriptions of services

(ii) aa. Value

(ii) bb. Length

(iii)Who approved the tender/contract

(iv)Tender/ Contract in line with the National Treasury

Vox Telecommunications

Annual maintenance of the email service for SA engineer formation

R1 773.68

1 year

Senior Manager

Yes

Vox Telecommunications

Annual maintenance of the email service for SA engineer formation

R1 519.9

1 year

Senior Manager

Yes

Vox Telecommunications

Annual maintenance of the email service for SA engineer formation

R1 463.05

1 year

Senior Manager

Yes

Vox Telecommunications

Annual maintenance of the email service for SA engineer formation

R1 463.05

1 year

Senior Manager

Yes

Vox Telecommunications

Digital Viewer Software Expert- SAPS Port Shepstone

R34 758.86

Details cannot be found on the archives of the entity and employees responsible are no longer at SITA.

Provincial HoD

Yes

Vox Telecommunications

Digital Viewer Software Expert- SAPS Port Shepstone

R34 758.86

Details cannot be found on the archives of the entity and employees responsible are no longer at SITA.

Provincial HoD

Yes

Vox Telecommunications

Digital Viewer Software Expert- SAPS Pietermaritzburg

R13 326.4

Once off

Provincial HoD

Yes

Vox Telecommunications

Telephone handsets for the DoE in KZN

R347 367.3

Details cannot be found on the archives of the entity and employees responsible are no longer at SITA.

Provincial HoD

Yes

Vox Telecommunications

Training for the server administration for right fax

R12500

Details cannot be found on the archives of the entity and employees responsible are no longer at SITA.

HoD: Capital Management

Yes

Over and above the transactions listed in the attached table, in 2014 SITA published to the open market RFB 1316/2014 for off-net voice services for the agency. After evaluation and approval the tender was awarded for 3 years to Vox for the total amount of R10 425 600.00. The tender was approved by the Bid Adjudication Committee as per the SITA Delegation of Authority. In terms of the tender requirements, bidders were required to provide two options on the solution required and to price them separately. After award, it was realised that the bid price for the solution awarded to Vox was actually for the other option.

SITA attempted to withdraw the award. The decision to withdraw was challenged by Vox as it was of the view that it is entitled to the tender. SITA launched a counter application to have its decision set aside in order to approach the market. The Court set aside the award to Vox as it was based on the incorrect evaluation results.

_____________________________

Ms. Stella Ndabeni-Abrahams, MP

Minister

Date:

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