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Probe into Gauteng’s 24-hour, R30m express tender

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Nomantu Nkomo-Ralehoko. Picture: Felix Dlangamandla
Nomantu Nkomo-Ralehoko. Picture: Felix Dlangamandla

An investigation has been ordered into allegations of irregularity regarding a Gauteng Security Operation Centre contract.

City Press reported on Sunday that the Gauteng government has been accused of using the cover of the Covid-19 coronavirus to rush through a big information technology (IT) contract without proper tender processes.

The R30 million contract to provide Gauteng’s e-government department with IT services, including cybersecurity, was concluded within 24 hours.

This after Nomantu Nkomo-Ralehoko, the MEC for finance and e-government, requested permission from Communications and Digital Technologies Minister Stella Ndabeni-Abrahams for a deviation from following normal procurement processes.

The contract was won by In2IT Technologies, the sponsor of National First Division side Moroka Swallows.

Read: Outrage over Gauteng’s 24-hour, R30m express tender

In a statement issued on Monday in response to the article, Nkomo-Ralehoko said she had “noted with concern the report about the alleged irregularities into the appointment of the service provider for the security operations centre” and had “decided to initiate an investigation, and provide a full report to all stakeholders”.

She said that the security operations centre was critical and necessary for the provincial government to be protected from cybersecurity threats and malicious activities.

Nkomo-Ralehoko added that the security operation centre and its predecessor had provided cyber security services for the past 16 years.

The first initial appointment was for a period of three years, from May 1 2005 to May 31 2008. The bid was awarded to Lefatshe Technologies. The scope of work expanded for a period of two years from November 2008 to November 2011, she said.

The contract was extended for another five years to March 31 2016. Lefatshe Technologies changed its name to G-SOC Services in 2017. The contract was continued on a month to month basis until its termination.

In the 2016/17 financial year the Auditor-General found that the security operation centre contract and all extensions after the contract expired in March 2016 were declared as irregular expenditure.

The irregular expenditure was also raised by the Gauteng provincial legislature finance oversight committee and Standing Committee on Public Accounts.

“Even after the Auditor-General’s findings the department continued with the irregular expenditure on a month by month basis until the contract was terminated. It was also established through the Basic Accounting System, which is linked online to the Centralised Supplier Database, that the service provider was not tax compliant,” said Nkomo-Ralehoko.

Nkomo-Ralehoko said she was committed to ensuring that proper administrative and financial accountability was adhered to by departments and urged all her counterparts to act against irregular expenditure.

She added that, in line with her mandate to enforce clean audits in all departments, she supported measures being put in place to reduce irregular expenditure in the department of e-Government.


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