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SITA mum on CEO crisis


Johannesburg, 29 Jul 2008

The State IT Agency (SITA) is remaining tight-lipped for now, following an extraordinary board meeting yesterday to manage the crisis caused by the unexpected resignation of its CEO.

ITWeb broke the story yesterday, following a tip-off from sources close to SITA.

Llewellyn Jones tendered his resignation last Thursday - barely nine months into his tenure - days before the start of SITA's annual high-level conference, GovTech, currently under way in Durban.

The agency, as well as public service and administration minister Geraldine Fraser-Moleketi, appear to have been surprised by Jones's decision, prompting the minister to convene the meeting yesterday afternoon.

As yet, no official announcement has been made by SITA, leaving GovTech delegates and media representatives to speculate about the turmoil behind the scenes.

This morning, SITA spokesman Elton Fortuin said that no announcement is planned at this stage, and he would also not give any further detail. "We have no further comment at this stage."

He added that the conference would proceed as planned and described the event as "successful".

Fraser-Moleketi's spokeswoman, Ramona Baijmath, would also not comment on the outcome of the meeting. "I am unable to comment. The minister is back in Johannesburg and will be in meetings all day. She could make an announcement later, if she chooses."

Pulling rank

So while no official reason has been given for Jones's exit, insiders say his decision was prompted by a high-level government official's alleged interference with SITA's tender processes.

It is understood that the official, whose name is known to ITWeb, insisted that an e-government tender be re-awarded to a company fourth on the short-list, instead of being given to the one chosen through the official tender procedure.

This speculation has been gathering speed at GovTech, with several sources confirming that Jones's resignation was "bound to happen", as he refused to be drawn into the political circle that forms part of parastatals' corporate culture.

It is not unusual, these insiders claim, that a minister or government official will "pull rank" and override decisions made by state-owned entities. It is believed that Jones's determination to "go by the book" would have lead to him being pushed out sooner or later.

Another source at the event says SITA is hoping to weather the storm by presenting a "business as usual" facade, despite increasingly uncomfortable questions from private sector delegates. "The timing is unfortunate for them, and they are trying to manage the situation."

Meanwhile, Jones has been presenting at GovTech, and has thus far not given any indication of what is happening behind the scenes. He has not been available for comment and journalists at the conference say it is unclear whether he will address the media today.

Related stories:
SITA head quits amid alleged rift

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