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DTI mum on Cipro

Nicola Mawson
By Nicola Mawson, Contributor.
Johannesburg, 06 Aug 2010

The Department of Trade and Industry (DTI) is not saying a word about what is going on at the Companies and Intellectual Properties Office (Cipro) until after a pending court case.

In addition, Cipro is referring all enquiries about the stalled enterprise content management (ECM) system implementation back to the department.

DTI is embroiled in a lawsuit laid by a former service provider to Cipro, Valor IT, about the canned R153 million ECM contract. Valor IT was hired to implement an ECM system, which is vital for Cipro to be able to comply with the provisions of the new Companies Act, which comes into effect in October.

However, a forensic investigation completed in March revealed several irregularities around the awarding of the deal. The probe resulted in Valor IT's contract being cancelled, and the suspension of Cipro CEO Keith Sendwe and CIO Michael Twum-Darko.

Despite the urgent requirement for the system to be implemented, there has been no word from either organisation as to what is being done to make sure Cipro is ready in time. Valor IT has approached the courts to have the contract between it and Cipro upheld, and any legal action is likely to delay the implementation of the ECM system for at least a year.

No comment

Sidwell Medupe, director of media and public relations, says: “The department is currently not able to comment on your request as the matter is before the court and will only comment once the legal process has taken its course.”

However, the office's legacy systems will be unable to cope with the requirements of the new Act, a situation that will hamper economic growth, as companies will not be able to register or implement empowerment shareholdings.

In addition, almost three months have passed since trade and industry minister Rob Davies said publicly that Sendwe and Twum-Darko would be charged. The DTI has not indicated when this will happen, or what the charges will be, apparently waiting on the finalisation of the court case before moving on the charges.

Towards the end of last month, it looked likely that the department wanted to settle out of court with Valor IT, which would speed up the process. However, ITWeb could not ascertain whether an offer has been made, as the DTI did not clarify the issue, and Valor IT chairman Josias Molele was not available this morning.

Related story:
DTI to settle with Valor IT?

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