Listed IT company Dimension Data is expected to take over the provision of IT services to the City of Johannesburg after the current provider, Masana, filed for liquidation.
However, neither Dimension Data nor the city will confirm the appointment of the company to handle the outsourcing contract.
Masana staff members were set to leave the site yesterday, which would have left the city without IT services. The empowerment company was providing the city with a full spectrum of outsourcing services, including desktop, network, SAP infrastructure support and provisioning of IT infrastructure.
Liquidator Ruben Miller, from RMG Trust, says Dimension Data will take over all the services that Masana was providing to the city. He says about 80% of the staff involved will keep their jobs, while some of the executive-level employees will not.
Masana applied for voluntary liquidation last month, after the city did not honour 1 200 invoices, amounting to at least R64 million. Masana, however, claims the city owes it R90 million.
The city has agreed to pay Masana the R64 million that both parties agree is owed. There is a dispute as to another amount of R26 million, which will be held in trust until the issue is resolved.
Miller says the council has also been in talks with Dimension Data to take over the remainder of Masana's contract, which would run for another year. Dimension Data says it is not able to comment or speculate on the City of Johannesburg contract.
Gabu Tugwana, communication director for the city, says it “will soon make a press statement regarding the continuity of IT services, and contracting arrangements”.
Share