Gijima 'confident' before protector probe

2012-01-23 20:30

Johannesburg - Listed IT company Gijima on Monday said it was "confident" that Public Protector Thuli Madonsela would discover "nothing untoward" during her probe into a multibillion-rand home affairs tender.

Gijima reacted on the Johannesburg Stock Exchange's news service Sens after City Press yesterday revealed that Madonsela was scrutinising the R2.4bn Who Am I Online tender.

The tender was awarded by the home affairs department to Gijima in 2007 at a price tag of R1.9bn.

The cost of the project increased to R4.5bn before it was cancelled by Home Affairs Minister Nkosazana Dlamini-Zuma in 2010.

The parties settled last year and the tender’s value was adjusted to R2.4bn.

Madonsela confirmed that her probe would include possible conflicts of interest. Gijima chief executive Jonas Bogoshi was a senior executive at the State Information Technology Agency (Sita) when it recommended Gijima for the tender.

The board of Gijima, chaired by businessman Robert Gumede, said today it learnt via City Press of Madonsela's probe.

"The R2.3bn contract awarded to Gijima by the department of home affairs in 2007 was for the modernisation of the IT infrastructure and systems of the department.

"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," according to the company's statement.

"This matter has already been settled between Gijima and [home affairs] in 2011, and all issues relating to the contract have already been aired.

"The board is confident that nothing untoward will be discovered.

"Gijima and its board will cooperate 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," the statement read.

Bloomberg reported that Gijima's share price fell the most in a month on Monday..

"The stock declined as much as 6.3% to 60c, the biggest drop on a closing-price basis since December 22."

  • Makatikamusona - 2012-01-23 20:46

    "...cost of the project increased to R4.5bn before it was cancelled.." I can't wait for the bobbejaan to stand dancing.Did they deliver on the system or SARS did the job

      Donovan - 2012-01-23 20:53

      Yeah Gijima's confident. If you're connected you're protected. Dirty rotten scoundrels.

  • Morne - 2012-01-23 20:57

    Not related to this story, but given it's Gumede's company Kevin de Klerk from the Lions Rugby Union must be smiling at this news.

  • John - 2012-01-23 21:03

    Of course they will plead that there was nothing untoward.... Did you expect them to stand up and say, we got the tender via the back door, tried to screw the department for a an additional R 2.6bil, but were happy to have the contract to be cancelled at a price tag of R 2.4bil

  • Burtfred - 2012-01-23 21:26

    Bunch of ANC cronies

  • inwardk - 2012-01-23 21:33

    I have been in the IT industry for a long, long time and what is required here does not cost billions to do. I would love to quote a couple of billion for a job not even worth 500K.

  • pws69 - 2012-01-23 21:40

    I remember reading a comment a while back on timeslive claiming to be Robert Gumede, and how many regrets he had, and how politicians owned him, and how he was forced to "contribute" to the ANC. Robert, was that the one and only time you regretted what you have done. Did the illegal loot buy you peace of mind?

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