South Africa’s state-owned defence procurement agency Armscor is facing mounting internal pressure over what insiders describe as an outdated IT environment that is hampering operations, delaying automation and exposing the organisation to growing cyber security risks.
Senior managers, who did not want to be named for fear of reprisals, say the company is currently on an air-gapped network and needs a complete network redesign. This is critical to support modern enterprise resource planning, cyber security tools and platforms, as well as access to essential cloud-based services.
According to sources, the overhaul is seen as essential to modernising the organisation’s operations, enabling automation and improving efficiency across business processes.
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The concerns come at a time when Armscor’s procurement division is under scrutiny, with the head of procurement currently suspended amid allegations linked to tender processes. Sources further allege the executive was threatened during a board meeting over a tender-related matter.
Responding to questions from ITWeb Africa, Armscor chairperson Dr Lesiba Alex Mahapa confirmed the organisation is in the process of finding a service provider for its network infrastructure.
Mahapa said the initial tender, worth over R100 million, for a service provider to assist with the implementation of the network redesign, was cancelled due to a no-bid outcome.
“A new tender was issued and the process is underway, as advised by management. A new procurement process will identify a preferred bidder.”
Mahapa also rejected claims that the board was overstepping its oversight role and becoming involved in executive management.
“I am appointed as a non-executive director and the chairperson of the board of Armscor. Armscor has a clear segregation of roles and reporting lines,” he said.
Explaining the suspension of the head of procurement, Mahapa said the organisation had launched an independent investigation into the performance and effectiveness of the procurement function.
“The organisation instituted an independent investigation into the efficacy, performance and potential irregularities of the procurement function in light of the delays on the number of projects that depended on the effectiveness and efficiency of supply chain management,” he said.
Mahapa also clarified the status of the company secretary position, following questions about whether another senior official had been suspended.
“The company secretary reports to the board, and the current company secretary of Armscor is not suspended,” he said. However, he confirmed that a previous company secretary had faced an investigation over administrative issues related to the board.
“The matter was with the CCMA [Commission for Conciliation, Mediation and Arbitration] and she opted for settlement rather than going through a disciplinary process,” Mahapa added.
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