JSE-listed ICT group Gijima and the Department of Home Affairs (DHA) have reached an amicable agreement over the Who-Am-I-Online (WAIO) contract. The settlement agreement has been signed by all parties, but is subject to the fulfilment of suspensive conditions.
Gijima was awarded a groundbreaking contract in June 2008 to overhaul DHA's information technology infrastructure. The contract for the WAIO system covers the design, development and implementation of an integrated core system for DHA, including all business processes of both its Civics and Immigration Divisions.
In April 2010, Gijima received a letter from DHA contending the validity of the contract. Gijima disputed this contention and the parties then entered into negotiations to reach an agreement in order to avoid potentially lengthy and costly litigation.
Gijima and its funding partners have reached a settlement with DHA, to map a way forward for the completion of the WAIO project. The settlement brings the project back in line with the original objectives and cost estimates. The total final capital cost of the items in the scope of this project, including expenditure to date of approximately R1.4 billion, is estimated to be approximately R2.27 billion. This is in line with the Treasury budget of R2.23 billion for the project, which was conditionally approved in 2009.
Says Gijima CEO Jonas Bogoshi: "We feel this was the best solution possible for both parties, as it's important to our relationship with government and our other clients. Gijima will continue to work closely with the Department of Home Affairs to deliver on this project. This is important for the growth of our country as this new system will transform the lives of millions of South Africans by changing how they access much-needed services using technology."
As part of the settlement Gijima has agreed to incur certain manageable losses. “The expected impact will be felt in this financial period, but it is a once-off impact, and we are confident that future prospects are favourable,” says Bogoshi. “Our focus will be on ensuring that Gijima delivers quality work, on time and within budget on the WAIO project. Allocating a highly skilled team with experience to complete the work required is our top priority. Delivering long-term value for our clients, understanding their requirements and delivering on our mandate to remain a first-class ICT company both in South Africa and internationally has always been our culture at Gijima.”
Gijima is evolving in line with market changes. It is focusing on its core competencies, which include constructing unique solutions that drive clients' business growth. The company is moving into new growth areas such as cloud computing, which will have a profound effect on how clients consume information and communication technology services. The organisation has made significant strides in information and communication technology over the last decade.
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