A forensic investigation has uncovered significant irregularities in the awarding of a R1.2 billion tender by the State Information Technology Agency (SITA) for the provision of Local Area Network (LAN) services to schools in the Western Cape. The probe, conducted by Cliffe Dekker Hofmeyr Inc., has raised serious concerns about the integrity of the tender process, which is now under scrutiny by Parliament’s Portfolio Committee on Communications and Digital Technologies.
The investigation was commissioned by SITA following a request from then Minister Mondli Gungubele in July 2023. It focused on the procedures involved in awarding the tender for expanding and upgrading LAN infrastructure in Western Cape schools, aiming to enhance the region’s network facilities to support educational technology. However, the findings suggest that the process was far from transparent or fair.
During a briefing to Parliament on Friday, Tendai Jangara, the director leading the investigation at Cliffe Dekker Hofmeyr, outlined several irregularities that have raised red flags about the tender process.
One of the major issues uncovered was that Blue Networks and Infrastructure (BNC), the company recommended as the successful bidder, had submitted two separate pricing options for the tender. However, the Request for Bids (RFB) did not clarify whether such submissions were allowed. The decision to evaluate both pricing proposals was deemed unfair, as it deviated from the tender guidelines.
Another irregularity involved the disqualification of Dimension Data, a reputable IT infrastructure company. The reasons for this disqualification were not substantiated, leading to concerns about the fairness of the decision-making process and whether it was influenced by factors unrelated to merit.
The RFB itself was found to lack clarity regarding the submission of multiple pricing proposals, which caused confusion among bidders. This lack of transparency ultimately skewed the evaluation process, hindering fair competition.
Furthermore, the investigation revealed that the final approval of the tender recommendation was processed through a round-robin procedure, bypassing formal meetings. This raised concerns about the legitimacy of the approval process and the lack of proper scrutiny, which may have undermined the accountability of those responsible for making the decision.
Cliffe Dekker Hofmeyr concluded that the entire RFB 2556 – 2022 tender process was unfair and uncompetitive. The investigation revealed that the bidders were not evaluated on an equal footing, and the process was marred by inconsistencies and a lack of clarity, ultimately leaving the tender open to potential manipulation.
The R1.2 billion tender was intended to enhance the Western Cape Department of Education’s LAN infrastructure to connect schools to the internet and support digital learning. The province had aimed to bolster its tech capabilities, ensuring schools were better equipped for the demands of modern education. However, the investigation casts doubt on whether the tender process was handled properly, raising broader concerns about the integrity of public procurement in South Africa.
The findings have ignited political debate, with opposition parties demanding greater accountability and transparency in the awarding of public tenders. Parliament’s Portfolio Committee on Communications and Digital Technologies has vowed to conduct a thorough investigation and hold those responsible accountable.
The timing of the investigation is particularly sensitive, as South Africa grapples with concerns over corruption and mismanagement in the public sector. This latest scandal adds to a growing list of similar cases involving public tenders, fueling calls for more stringent reforms in how state contracts are awarded and monitored.
As the investigation progresses, further details are expected to emerge regarding the role of SITA officials and officials in the Western Cape Department of Education. Both entities are now under intense scrutiny, and their involvement in the irregularities may lead to legal and political consequences.
In the meantime, the findings of Cliffe Dekker Hofmeyr underscore the urgent need for greater oversight and accountability in public procurement, particularly for large tenders involving billions of rands in public funds. As Parliament moves forward with its inquiries, many will be watching closely to see what actions are taken to rectify the situation and prevent similar issues in the future.
