About
Subscribe

Alcom Matomo wins R500m SAPS tender

By Georgina Guedes, Contributor
Johannesburg, 12 Feb 2004

Alcom Matomo, an Altech subsidiary, yesterday announced that it has been awarded the R500 million South African Police (SAPS) tender for the supply, delivery, installation, commissioning and communications system for Gauteng.

The tender, which Alcom claims is the largest communications contract ever awarded on the African continent, was the subject of fierce competition between big names like Nokia, EADS Telecommunications and Marconi.

Alcom Motomo is a black economic empowerment company, formed when Altech concluded a black empowerment deal with the Matoma ICT Group last year, selling the company 30% of its subsidiary, Alcom Systems.

"I applaud SAPS for their careful evaluation of the tender and in selecting the bidder that grows the South African economy while creating skills development and employment," says Craig Venter, Altech CEO.

"We won on prices, superiority of technology and because we were an empowered company," says Thozamile Botha, executive chairman of the Matomo Group. "At the end of the day, it doesn`t matter how empowered you are, your ability to deliver on what the client wants is what counts."

The system is a Motorola solution currently being deployed in many countries. "After the events of 11 September, it has become critical for a country to have an effective, safe, secure, encrypted technology for communication," says Venter. "The ability to communicate between the police, fire ambulance and hospital services is critical in times of major emergencies and disasters."

Altech was awarded the contract for the implementation of a similar project in the Western Cape two years ago. This project will roll-out over three years, with final payments being made in the fourth year. "What is significant to us is that we did the [30% Alcom purchase] deal in a structured finance arrangement," says Botha. "We believe that we could be enjoying dividends by the end of our contract."

Share