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DA requests 'Who Am I' reports

Johannesburg, 10 Dec 2010

The Democratic Alliance (DA) has called on the Department of Home Affairs (DHA) to release reports on two investigations into the controversial 'Who Am I' project.

Shadow minister of home affairs Annette Lovemore says the official opposition has submitted applications, in terms of the Promotion of Access to Information Act 2 of 2000, for copies of the two reports.

“Both reports detail investigations commissioned in 2008 by former minister of home affairs Nosiviwe Mapisa-Nqakula into the awarding of a multibillion-rand tender for electronic systems to GijimaAst.”

The project aims to replace outdated paper-based and manual systems with electronic processes.

The department cancelled the multibillion-rand contract in April in a surprising letter that stated the deal was “invalid”. It subsequently locked Gijima staff out of its Pretoria headquarters, and the State Attorney had to intervene before staff members were let back in.

Hidden reports

Lovemore says the first report, by the office of the Auditor-General, was apparently delivered to the DHA in February last year, but has never been made public.

“This is despite calls for disclosure of the contents of the report by the DA, the ID [Independent Democrats] and by the Parliamentary Portfolio Committee on Home Affairs.”

The second report is by academic Harvey Wainer, and was apparently delivered to minister [Nkosazana] Dlamini-Zuma in 2009, and was also never made public.

Department standstill

“In 2008, the Department of Home Affairs signed a contract with GijimaAst, valued at R1.9 billion, to implement the 'Who Am I Online' system. GijimaAst is owned by billionaire Robert Gumede, a known friend and backer of President Zuma,” says Lovemore.

She adds that costs for the project spiralled exponentially during its short life, eventually reaching a total of R4.5 billion.

She also says the DHA informing the company that the contract had never been valid and was unenforceable, implies that the department paid the company hundreds of millions of rand without a valid or binding contract being in place.

Gijima has subsequently threatened legal action over the cancelled contract.

“Taking into account that the entire budget for the department's functioning for 2010/11 is R5.7 billion, a successful court challenge could well bring the department to a standstill. It is rather alarming to note that the pending legal claims against the department total R6.8 billion - well in excess of the total annual budget.”

Lovemore says the main concern is that the government will potentially fund an additional R4.1 billion for a project that was awarded under circumstances that have been the subject of two forensic audits, and that has not delivered any measurable results.

Outstanding invoice

Gijima has been in discussions with the department to try and resolve the impasse since May, in a bid to avoid having to go to court to have the deal enforced.

However, CEO Jonas Bogoshi in September told investors and analysts that the dispute may end up in court if its latest offer was not accepted within the next few weeks.

In its financial year to June, Gijima invoiced R476 million, of which R237 million has not been paid by the department.

This amount relates to work completed in the second half of the year until Gijima stopped working on the contract in June. However, says Bogoshi, it has performed in terms of its contractual obligations so far.

Since inception of the deal, Gijima has earned R1.18 billion from the project.

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