Despite spending over R9 million and receiving millions in government grants for the Gauteng Link project, the provincial government is yet to deliver on its long-awaited biggest broadband infrastructure project.
The project, also known as Blue Umbrella, was transferred to the Gauteng Shared Services Centre (GSSC) from the Blue IQ, in the 2008/9 financial year and has been delayed for almost three years.
During the 2006/7 financial year, following the announcement of the project by the province, R9.44 million was spent on several aspects of the project. These included computer costs, wages and salaries, staff and training, as well as marketing and advertising. The biggest cost, however, came from consulting fees, with expenses totalling R8.429 million in 2007 alone.
The GSSC says no budget has been allocated and, while the business case is complete, the project has yet to be approved. Final approvals are in progress and any timelines for the project will only be determined once final approval is granted, adds the GSSC.
The GSSC also declined to reveal where funding would be sourced from, saying that “given the current state of the approval process for the G-Link project, we are not at liberty to immediately disclose the information”.
The project will be headed by GSSC CIO Lemmy Chappie. The GSSC also hopes to fast-track the project.
“Subsequent to the approval, the first sub-projects that will be concluded will be the design and validation centre; three months after this, it is anticipated that the core of the network will be built,” says the GSSC.
What budget?
Blue IQ previously failed to allocate a budget for the project and the centre has yet to finalise funding. The project has been estimated to cost anywhere between R15 billion and R35 billion in the past.
While it is not known where funding for the project will be sourced, it is expected to receive significant funding from the Gauteng Fund. The provincial government body is tasked with funding public infrastructure projects at all levels from provincial to nation government.
However, the process for this could be slow. Projects are selected by the board of the Gauteng Fund Management - which will be made up of both public and private representatives. Once a project is identified, the project office will consider its commercial viability and then present it to the fund for possible funding. Once approved, the tender process for the specified services will begin.
Bad spending
The GSSC recognises the importance of the project as a catalyst for digital and social inclusion, but progress continues to be slow. The centre says there “is also a concerted effort to focus on improving service delivery and stimulate growth in the economy, especially in the rural areas”.
The office of the auditor-general (AG) recently slammed the project in Blue IQ's annual report. The office questioned the slow progress of the project, and the irregular and unauthorised spending on the Blue Umbrella project. The Gauteng broadband infrastructure development initiative had not followed the required supply chain management processes and had not been based on approved budgets, the AG noted.
In the GSSC budget speech in August, Gauteng finance MEC Mandla Nkomfe said the department had concluded the business plan for the Gauteng Link broadband project.
He added that, in the current financial year, National Treasury would consult with civil society to seek input and buy-in. A strategic investor conference, to engage business on the role it can play, would also be held, he revealed.
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