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DPSA downplays SITA lawsuit conflict

By Martin Czernowalow for SITA
Johannesburg, 04 May 2009

For the record

ITWeb reported on 4 May 2009 that Tedaka Consulting was awarded the contract to assist SITA establish an office of the ombudsman without “a proper tender process” having been followed. However, in a statement issued to ITWeb, Teddy Daka, founder and head of Tedaka Consulting, has explained the circumstances under which he received the contract. ITWeb apologises for any inconvenience caused to Daka or Tedaka Consulting. To read the full statement, click here.

The Department of Public Service and Administration (DPSA) has downplayed suggestions that an ongoing court case between the State IT Agency (SITA) and a business consultancy has undermined a ministerial task team investigation and caused a potential conflict of interest.

Last month, SITA launched a R5 million lawsuit against Tedaka Business Consultancy, headed by Teddy Daka, who - it emerged - sat on the ministerial task team appointed to investigate SITA.

At the end of last year, the task team was appointed by public service and administration minister Richard Baloyi to probe SITA's processes and functions.

At the time, Baloyi said there is an urgent need to reposition the ailing agency to be fully compliant with the SITA Act, in terms of its board constitution, governance, business model and procurement practices.

The agency has faced a string of embarrassments and accusations of misconduct in recent times and insiders pointed to a potential conflict of interest as Daka - a well-known BEE management specialist - while advising SITA on matters of procurement and tender processes, is now also facing the agency in the Pretoria High Court.

However, in a brief reply to ITWeb this morning, the DPSA noted that “when the task team handed its report to the minister, the team ceased to exist”. It further noted that Baloyi would comment on the task team's report “once he has studied it and after consulting with all relevant stakeholders and interested parties”.

'Malicious in the extreme'

In response to questions about Daka's legal wrangles with SITA and his involvement with the task team, the ministry stated that “the issue about Mr Daka and the tender [at the centre of the dispute] is sub judice”.

The case against Daka stems back to 2005, when SITA was planning to establish the Office of the Ombudsman to probe allegations of fraud and corruption within the organisation and its tender processes. Tedaka was brought in to advise and was allegedly paid R5 million for its services.

However, in court papers filed at the Pretoria High Court in 2006, SITA alleged Tedaka Business Consulting did not provide the services it promised, while the consultancy argued it delivered consultancy work for the project and that the payments it received were above board.

At the time, Daka also alleged that his company was approached by SITA chairperson Zodwa Manase, towards the end of her first tenure, who invited him to take on the contract, side-stepping the proper channels. Sources have questioned whether the allegations against Manase's would be investigated.

However, the DPSA has made it clear that “Manase is not facing any criminal charges and allegations of mismanagement are just that - allegations”.

“To continuously link Ms Manase to hearsay is mischievous and malicious in the extreme,” the DPSA noted.

The department did not explain how Daka - who admitted to obtaining work from SITA without following a proper tender process - could have been selected to investigate SITA's procedural problems and tender irregularities.

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