JSE-listed outsourcing group Gijima has welcomed an investigation by the Public Protector into the awarding of the controversial “Who Am I Online” contract.
The listed company says, in a statement, that it learnt about the probe in this Sunday's City Press. “The article refers to a February 2009 report of the Auditor-General that has not been made available to Gijima.
“The board is confident that nothing untoward will be discovered. Gijima and its board will co-operate with the investigation in a transparent and truthful manner. Gijima is confident that the Public Protector's investigation will exonerate both the company and its CEO.”
Gijima was awarded the R2.3 billion deal in 2007, by the Department of Home Affairs, to modernise its IT infrastructure and systems.
“This included the re-engineering and digitisation of most of the national population register, including birth and death certificates, processing of ID and passport applications, Visa and other permit applications, as well as enhanced movement control for South Africans and foreigners at the country's borders,” says Gijima in a statement to shareholders.
In April 2010, the department cancelled the deal, arguing the contract was invalid. Gijima reached a settlement with the department in March last year.
Settling with the department resulted in Gijima incurring R374 million in costs, of which R263 million related to Home Affairs debt that was written off. In addition, the company wrote off another R80 million in future discounts, which it has promised the department, and another R30 million in expenses related to the settlement.
Gijima said yesterday “all issues relating to the contract have already been aired”.
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