Jones not yet done with SITA

By Martin Czernowalow for SITA
Johannesburg, 16 Jan 2009

Former State IT Agency (SITA) CEO Llewellyn Jones's association with the agency is not over yet, as sources say he has been appointed a member of the ministerial task team put in place to monitor the organisation.

It is Jones's abrupt resignation from SITA, in July last year, that resulted in these control measures being put in place and some have described his appointment to the task team as a vote of no confidence by the minister in the SITA board.

Jones left the agency under acrimonious circumstance, citing a rift between him and government CIO Michelle Williams, who also happens to be the deputy chairperson of the agency.

Sources closer to SITA said, at the time, that his resignation was caused by Williams instructing Jones - via SMS - to award a R1.5 million deal to Praxis Consulting and not GijimaAst - the company chosen by the SITA Bid Evaluation Committee.

The fall-out and subsequent controversy caused by Jones's resignation led to the perceptions of government interference in SITA's procurement process, and the agency's board referred the matter to the Auditor-General (AG) for investigation.

Yesterday, SITA announced the results of the AG's investigation, which absolved Williams of all wrongdoing, but called for SITA to improve its controls to ensure officials comply with SITA's procurement regulations during the evaluation and awarding of tenders. It also called for action to be taken against officials who did not comply with tender regulations.

Sources close to SITA say this prompted public service and administration minister Richard Baloyi to form the task team, but - so far - his department has refused to officially confirm this.

A Department of Public Service and Administration (DPSA) spokesperson says Baloyi is currently in the DRC and an announcement is expected on Sunday, following his return.

This morning, Jones would not comment on speculation that he is part of the task team - neither confirming, nor denying it.

However, Black IT Forum chairman Mthunzi Mdwaba, himself an appointee to the team, confirms the minister has indeed recalled Jones to fulfil an oversight role at SITA.

Babysitting SITA

The South African Institute of Corporate Fraud Management president Bart Henderson says Baloyi's move, to establish a task team to monitor SITA, is a clear vote of no confidence in the SITA board.

“It says SITA needs a babysitter. Jones's appointment, in light of the AG's findings, shows he enjoys the confidence of the minister and is a slap in the face of the SITA board and, in particular, Williams.”

Henderson also describes Jones's appointment as a “masterstroke” and a “brave decision” by the minister.

“His appointment might be perceived as politically crude, but it is going to be a good move to regain some of SITA's credibility. Bringing him back should send a strong message to Williams.”

In light of what he cites as the “narrowness of the terms of reference of the investigation”, Henderson also criticises SITA non-executive chairperson Zodwa Manase for making “gratuitous comments” and engaging in “board politics” following the AG's findings.

Reacting to the AG's report, Manase yesterday said: “I'm pleased to report that the AG has concluded in its report that there was no evidence of any impropriety on behalf of Ms Williams in the tender process.”

Henderson further states Baloyi clearly does not accept the findings and terms of reference of the AG's investigation, which industry sources have criticised as being too narrow in its scope.

So far, Baloyi's office has not made any official comments about the AG's findings.