About
Subscribe

Anyone remember arivia?

I'm beginning to wonder if this once-glorious state institution is going to fade into the abyss.
Johannesburg, 05 Feb 2008

I may have mentioned before that my husband is the type that likes to ignore problems in the hope that they may eventually just go away.

Of course, I never thought that he was the only one, but I must admit I never expected state-owned ICT player arivia.kom to suffer the same fate as our monthly shopping requirements.

Admit it, it's been ages since you last heard of arivia and your interest in who the successful acquirer will be - unless you are one of the last two standing - is non-existent. But you've got to wonder how did it all go wrong?

Habitual neglect

Word on the street is that the business has been left to decay for quite some time.

My empowered industry insiders note that arivia's ex-CEO, Zeth Malele, spent more time on the golf course than he did at home, never mind the office. And he wasn't doing deals either, they point out.

If this is the case, I must confess to being quite saddened. I met Malele on several occasions and quite liked him for the simple reason that he thought I could bring 'value' to the Black IT Forum despite the fact I was (a) a journalist, and (b) not black. Having said that, I must admit that I never got to meet Malele in his official capacity.

Of course, without strong leadership to guide the behemoth through the rocky waters of ICT and its services, the company quickly became stagnant, say my sources. And its focus on performance was quickly replaced by typical parastatal work ethics.

In the last year, the company's woes have been expounded by bad press. Take for instance arivia's participation in the Tasima consortium. One would have thought that securing the tender for the implementation of the transport department's electronic National Traffic Information System (eNatis) would have been a coup for the company.

However, it was not to be. eNatis became a household name for all the wrong reasons, creating embarrassment for all involved and - if rumours are true - a significant loss for the partners.

Status quo

Whichever way you look at it, arivia appears to have turned into a dud bomb waiting to explode.

Kimberly Guest, senior journalist, ITWeb

Unfortunately, getting any official information on arivia at the moment is impossible.

My first port of call for insight into organisational health is usually the company's annual report or latest financial figures. However, arivia has yet to post its annual report for the year ended 31 March 2007 on its Web site. (I'm assuming there is a 2007 annual report to start with.)

In the past year, arivia shareholders Transnet and Eskom have declined to give journalists any statements of substance, despite repeated calls for clarity. Then again, many of the journos who have been following arivia say they suspect the spokespeople have been deliberately avoiding them, so fluffy statements come as little surprise.

As for the five original companies that were short-listed as potential buyers, all have without exception declined to comment. And that's because they have been forced to sign non-disclosure agreements, say insiders.

Of the five, it is believed only T-Systems and Business Connexion remain at the table. While it is understandable that T-Systems could brief its European head office confidentially, what about Business Connexion's public shareholders? At what stage will these people be alerted to what the company's board of directors is agreeing to?

Will these shareholders still support the deal if it does not include the two lucrative IT service contracts which analysts highlight as arivia's saving grace?

Whichever way you look at it, arivia appears to have turned into a dud bomb waiting to explode.

If my hubby and I were both (God forbid) employed at arivia, I'm pretty sure that I would not be the only one handing out my CV to all who would deign to consider it. Even my escapist-loving hubby can see when the writing on the wall has been splashed in psychedelic paint and lit up by spotlights. There's only so much ignoring you can do.

Share