Question NW724 to the Minister of Public Enterprises

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15 November 2019 - NW724

Profile picture: McGluwa, Mr JJ

McGluwa, Mr JJ to ask the Minister of Public Enterprises

In view of the fact that Transnet awarded a five-year outsourcing contract to a certain company (name and details furnished) in 2018 and in light of the huge sum of money paid in settlement by the Department of Home Affairs to the specified company (details furnished), why are the services of the company being used by his department?

Reply:

According to the information received from Transnet:

Transnet embarked on a five year tender for IT Data Services concluded in 2017 where Gijima was identified as the preferred bidder through an open tender process.

The Transnet Board at the time, decided to award the business to the second ranked bidder, however, after a court process, Transnet received a declaratory order in December 2018 to change its decision and award as per the outcome of the process to Gijima.

Following the declaratory order, Transnet has since engaged with Gijima to transition the contract. As part of the contractual process, the services are currently transitioning from T-Systems to Gijima as of the 1st of September 2019. The transition process has been without any interruptions to Transnet business. Currently Transnet is consuming services from Gijima with very minimal issues.

Transnet cannot comment on the statement regarding the 2011 payment as that transaction relates to the “Who am I Online” project under Department of Home Affairs.

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