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GSSC denies tender impropriety

By Christelle du Toit, ITWeb senior journalist
Johannesburg, 12 Mar 2008

The Gauteng Shared Services Centre (GSSC) has denied all allegations of impropriety regarding the process through which it awarded the GautengOnline school ICT tender to SMMT Online.

This is even though it has come to light that one person has a major stake in three of the companies that form part of the R2 billion tender-winning consortium.

Tebogo Mogashoa is CEO of SMM Telematics, as well as CEO and 100%-owner of Tebfin - both of which are part of SMMT Online. In addition, Mogashoa is non-executive director and acting chairman of the board of JSE-listed Beget, a third beneficiary, whose empowerment partner is SMM Telematics.

On its Web site, Beget describes Mogashoa as "well connected" and having managed large projects with a combined capital expenditure of R250 million for Eskom's national electrification programme.

Mogashoa could not be reached for comment.

'No rush'

Khusela Sangoni, head of communications at the GSSC, is adamant "there is no law prohibiting any individual to be a director in more than one company".

She says: "The rules that govern procurement processes permit that companies may submit joint venture bids."

Sangoni goes on to deny allegations by a source close to the deal, who recently told ITWeb the tender process was rushed through and was, therefore, questionable.

"We do not know what is meant by 'rushed through'," says Sangoni. "There are service levels that govern this process like any other process in our environment. We are satisfied that this [tender] was processed well within the stipulated time."

The GSSC's GautengOnline tender was advertised on 31 August 2007 and awarded to SMMT on 18 December 2007.

Funny business?

Mike Silber, of Michalson Attorneys, says the same person's name appearing repeatedly as a stakeholder in a tender consortium "certainly raises eyebrows".

"This would have had to receive attention during the tender evaluation," says Silber. "It certainly creates the impression that there is something funny going on."

However, he says it may well be that the tender board evaluated the consortium's shareholding and found nothing wrong with it.

The ownership and directors of all the companies in the SMMT Online consortium could not be determined at the time of publication. However, one company, Sifikile, has a 30% stake in Siemens Business Solutions and was party to a R1.25 billion Department of Labour contract awarded to the Siemens business unit in 2002. Sifikile is also 50%-owned by Tokyo Sexwale's Mvelaphanda group.

Self Empowerment International, another beneficiary, has a 10% stake in new Lotto operator Gidani, through holding company Nozala investments. Finally, Ernst & Young's best emerging entrepreneur of the year, Fulton Ramaphakela's Vimba Security, rounds off the group that makes up SMMT Online.

Related stories:
R2bn GSSC tender questioned
MEC heaps praise on GSSC
GSSC rapped on the knuckles

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