There is no conflict of interest for General Riah Phiyega, newly appointed national commissioner of police, who was a director and shareholder in Kapela Capital, a subsidiary of Kapela Holdings, which owns a 40% stake in ICT business XON, a SAPS supplier.
There can be no conflict of interest, contrary to alleged claims, because Phiyega resigned her positions at Kapela effective 12 June, and she asked Kapela to sell her shares as at 12 June.
“We have been a supplier to several government departments, including SAPS, through State Information Technology Agency (SITA) contracts since 2003,” says Carel Coetzee, CEO of XON. “We met Riah Phiyega on one occasion, when we concluded the deal with Kapela in July 2010, but not since. She was a minor participant in an initial meeting and we never had dealings with her again. News of her appointment as national commissioner of police came to us through the same channels as everyone else: the media.”
Coetzee adds that SITA contracts are awarded as part of a lengthy process that begins with bidding to become a supplier. Successful applicants are listed as one of many suppliers, a list that currently contains 155 partners, including XON. This information is freely available for download from the SITA Web site. Government departments that require services then issue requests for quotes, all of which are reviewed by the Supplier Review Council for proposals under R15 million and the Board for proposals above R30 million, and can only be awarded by them. SITA awards the tenders, not SAPS.
Being a successful bidder in the tender process also does not result in automatic business. Following the successful bid, companies must then issue quotes for ICT-related requirements from government departments that require services or products. XON has been successful on a number of those since 2003 and is currently contracted to supply networking equipment, cabling, software and services, including network security services, as one of 20 to 30 suppliers on average per contract. According to SITA regulations, XON is not allowed to mention specifics of the deals.
“The tender and bid process is an open one that incorporates regulated governance processes and procedures and they have been applied to XON as they were to all the other suppliers,” says Coetzee. “Riah Phiyega had no role in SAPS prior to her appointment, thus no conflict existed then, and no conflict exists now, given the fact that she instructed Kapela to sell her shares as at 12 June.
“In addition to that, we have never had any meaningful interactions with Riah Phiyega in any capacity and she never featured in our business in any way other than to be listed as a director of Kapela Capital, a subsidiary of Kapela Holdings, which owns a 40% stake in XON. We are, however, privileged to have a reputable black-owned and -operated empowerment partner with impeccable credentials and we would also like to wish the new national commissioner of police all the best in her new career.”
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