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SITA slams CEO speculation


Johannesburg, 06 Mar 2007

Responding to speculation on the causes for CEO Mavuso Msimang's departure, the State IT Agency (SITA) says reports of tensions between Msimang and the organisation's board are without merit.

The statement follows the announcement of 65-year-old Msimang's decision to step down from his position once a suitable candidate is found to replace him.

The IT industry has largely credited the organisation's turnaround to Msimang, who joined SITA in 2003. Under his guidance, the agency restructured its management structure, stemmed financial losses, improved industry communication, and instituted policies and procedures to ensure operational efficiency, transparency and identification of corrupt activities.

Speculation soars

Last week's news that Msimang - SITA's longest serving CEO - would leave the government agency, led to much industry speculation surrounding the reasons for his departure.

Several unrelated sources alleged that, while Msimang's decision had not come as a surprise to the industry, his departure had more to do with tensions with the board than a desire to manage his time differently.

"SITA's board is largely made up of academics and government officials," explains one source. "In trying to realise his vision of an efficient and effective service-oriented supplier to government, Msimang has introduced strategies and processes that support the business of supplying government rather than the politics.

"Unfortunately, the board has often been slow to recognise the benefits of running SITA like a business, resulting in frustration for Msimang," the source says.

Elton Fortuin, SITA's GM of communications, refutes these allegations in an official response to questions put to Msimang and chief of business operations Noedine Isaacs-Mpulo.

"Msimang delivered on the mandate set by the minister of public service and administration and the SITA board to bring stability to the organisation and transform it into a streamlined, integrated, customer-focused ICT service provider to government. SITA is now on a solid foundation and Msimang feels it is time to create space for a new CEO to lead the organisation on its current growth trajectory.

"Any speculation regarding tension between Msimang and the SITA board is without merit," he says.

Successor guessing

"We are cognisant that Msimang's decision to step down as CEO has fuelled intense speculation around his likely successor. We must, however, reiterate that it would be premature to speculate on a possible candidate or the time frame for a likely successor to be appointed," says Fortuin.

The board is searching for a suitable candidate to take SITA's top spot, he says.

"Due consideration will be given to all suitable candidates, both within and outside the organisation. The SITA board is responsible for selecting and recommending a new CEO, while the final decision resides with Cabinet acting on the recommendation of the minister of public service and administration."

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