Cliffe-Dekker-Hofmeyr probes R1.2 Billion Western Cape school network tender after irregularities in procedure uncovered

A R1.2 billion tender allocated for the maintenance and expansion of Local Area Network (LAN) services in Western Cape schools is facing potential disruption following a forensic investigation. Conducted by Cliffe Dekker Hofmeyr Inc., the inquiry has revealed ‘significant irregularities’ that could jeopardize the entire project.

The State Information Technology Agency (Sita) initiated the tender to enhance LAN infrastructure within the Western Cape Education Department (WCED) schools, replacing the expiring contract in November 2021. The objective was not only to sustain but also advance the existing network facilities.

A 171-page report obtained by IOL outlined various issues discovered during the investigation:

1. Alternative solutions and pricing options: The tender did not clearly allow for multiple pricing proposals, creating an unfair advantage for specific bidders.
2. Local Content Requirements: Compliance problems arose as only three out of eleven bidders met local content stipulations.
3. Disqualification of Dimension Data: Dimension Data, a contender, was disqualified over a technicality, deemed unjust by the investigation.
4. Governance and notification issues: Sita’s governance processes were questioned, particularly concerning voting methods and premature notification of the award.

The report recommends a re-evaluation of the tender, emphasizing the need for precise tender drafting, adherence to proper adjudication processes, transparent evaluation of local content, and accountability within Sita’s board and procurement procedures.

In response, Sita spokesperson Tlali Tlali acknowledged the necessity for policy and procedure improvements. Sita intends to refine its tender instructions and align governance policies with applicable legislation. An internal review is underway to address the premature award communication issue.

WCED spokesperson Bronagh Hammond, responding to IOL, mentioned that the department had not officially received the report.

‘The WCED had not yet received the report through official channels. The report is being verified. Once confirmed, the WCED will study the contents thereof,’ said Hammond.