A rift between the Cape IT Initiative (CITI) board and its executive director Viola Manuel has ended with her resignation, in a deal that was signed yesterday, and leaves the ICT incubator in a precarious position.
Only one CITI staff member is now employed on a full-time basis and this person should be leaving within days as accusations of mismanagement and questions arise concerning the sustainability of the special purpose vehicle that has private and public participation.
CITI was founded almost 10 years ago as a joint initiative between the Provincial Government of the Western Cape (PGWC) and ICT companies to promote the province as a centre of IT innovation. It has a number of projects under its auspices, such as the Bandwidth Barn, which is an incubator for small companies located in the Cape Town city centre.
The Bandwidth Barn, which has its own board and operates as a separate entity, will be largely unaffected.
Private companies become CITI members and pay a fee to do so. The PGWC and the City of Cape Town Municipality contribute funding to CITI on a project basis. However, this funding has been cut drastically over the past year, leading to a severe cash flow shortage.
“PGWC used to contribute R1.02 million in funding for operational uses, but this has been slashed to R500 000,” Manuel says.
CITI board members, who are not paid for their contributions, have complained that the organisation's financial statements were not prepared properly and that not enough was done by Manuel and others to ensure CITI's continued financial well-being.
However, some of the members, who have been on the board for less than a year, also acknowledge that the board should have been more stringent in its oversight. The board only meets once every three months.
A joint statement issued by Manuel and the board today says CITI will be looking to replace Manuel early next year, but, until such time, Chris Vermeulen, GM of the Bandwidth Barn, will assume operational responsibility for the organisation.
It says certain CITI projects and events will also be run under the auspices of the Barn until a new executive director is appointed.
“The Cape IT Initiative is currently restructuring and will be focusing on creating opportunities with other key tech-enabled sectors such as the film, mobile, tourism and music industries,” says Andrea B"ohmert, CITI chairperson.
In the statement, Manuel says: “I have enjoyed working with the Western Cape's IT cluster and have learned an enormous amount from both the private and public sector players. It is, however, time to allow for a fresh perspective to drive the organisation forward. I look forward to embarking on a new path, which puts to use the experience I have gained from the CITI team and its members.”
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