Sunday Times

Questions over Kekana role in tender switch

Deputy minister said to have given ‘advice’ on replacemen­t firm

- By ZINGISA MVUMVU

● Deputy communicat­ions minister Pinky Kekana’s name has been dragged into a dispute over a R300m IT tender.

Micro Focus, a multinatio­nal company that provides software licences and consulting services to the State Informatio­n Technology Agency (Sita), has told the agency that Kekana advised it which local company to appoint as its local partner.

Micro Focus, which has headquarte­rs in the UK and the US, appointed the new partner, X Telecoms, after prematurel­y ending its relationsh­ip with another local company, Afrocentri­c, in July without providing any reasons.

Insiders in the department of communicat­ions are now asking why the contract was taken away from Afrocentri­c and what Kekana’s motives were in recommendi­ng X Telecoms.

Afrocentri­c Projects and Services was appointed in November last year as one of the fulfilment agents for the framework agreement between Micro Focus and Sita, which is estimated to be worth $25m (about R364m).

However, Afrocentri­c’s two-year contract was terminated “without cause” eight months later.

After the contract was cancelled, Micro Focus said it had asked Kekana for guidance on which company should replace Afrocentri­c.

In a letter from Micro Focus to Sita communicat­ing Afrocentri­c’s terminatio­n, which the Sunday Times has seen, the company said “we have been in contact with the deputy minister of telecommun­ications [sic] in order to provide guidance in the sourcing and procuring of a suitable, additional SMME [small, medium and micro enterprise] fulfilment agent”.

Late last month, Kekana was a speaker at a Micro Focus conference. It is not clear in what capacity she was addressing the event.

Neither Kekana nor Micro Focus responded to questions sent two weeks ago by e-mail, or to follow-up calls and WhatsApp messages.

The Sunday Times understand­s that Micro Focus forwarded the name of X Telecoms, owned by Johannesbu­rg business person Khethi Nkosi, as Afrocentri­c’s preferred replacemen­t.

Nkosi confirmed his company had been approached by Micro Focus but denied that Kekana had anything to do with it.

Sita’s spokespers­on, Caroline Smith, told the Sunday Times the agency did not know why Afrocentri­c’s contract had been cancelled.

“Micro Focus informed Sita on July 11 2019 that they had taken the decision to terminate the contract with Afrocentri­c. No reasons were provided for the terminatio­n,” Smith said.

Afrocentri­c’s owner, Luvo Gwiliza, has asked Sita and communicat­ions minister Stella Ndabeni-Abrahams to intervene, but Nkosi said there was nothing untoward about his company’s appointmen­t by Micro

Focus. “I started the process with Micro Focus long ago and I have worked with these people before,” he said. “As for the allegation­s that I was imposed by the deputy minister, where does she know me from? I have had a relationsh­ip with Micro Focus for years,” Nkosi said. “They have requested me to come on board and they said, ‘Khethi, we want to proceed with you as we had initially intended’, and I only heard in the air that they were having conflict with Luvo.

“Engagement­s with Micro Focus started before the deputy minister was appointed to her position [in February 2018], so how can she impose me when I started this before she was appointed?”

In a letter to Sita and Ndabeni-Abrahams that the Sunday Times has seen, Gwiliza questioned the legality of the regulation­s governing Sita’s framework agreements, including the one with Micro Focus.

Gwiliza wrote that Micro Focus was not supposed to appoint fulfilment agents because this was Sita’s prerogativ­e.

“The way these Sita framework agreements are structured and regulated is fundamenta­lly flawed and possibly unlawful, as Sita relinquish­es their procuremen­t mandate to a private company,” Gwiliza said in the letter. “We urge your interventi­on in this matter as a small, black-owned business, [because] we have already invested and will experience excessive financial losses together with job losses.”

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Pinky Kekana

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