291. Mr P van der Westhuizen (DA) ask the Minister of Labour
Question 1 (a): What services has Siemens IT Solutions and Services SA
(Pty) Ltd provided to the Department?
Answer: IT Architecture, Systems Development, IT Operations and Procurement
of related hardware and software)
Question 1 (b): At what annual cost for the financial years? (i) 2010, (ii)
2011, and (iii) 2012;
Answer: Please see the below table
|Year |2010 |2011 |2012 |Total for 3 |
| | | | |years |
|Unitary Fee |R |R |R |R 679,226,178 |
| |219,218,864 |230,418,314 |229,589,000 | |
|Additional Services|R 12,248,944|R 7,593,339 |R 6,447,000 |R 26,289,283 |
|Total including |R |R |R |R 739,309,840 |
|CPIX |241,559,804 |249,912,236 |247,837,800 | |
| CPIX |4.36 % |5.% |5.% | |
| | | |
Question 2 (a): When was the agreement entered into and on what date was
the original contract set to expire?
Answer: The agreement was entered into on the 01st of December 2002 and
expired on 30th of November 2012.
Question 2 (b): Why was the department not ready to take over the functions
upon expiration of the contract, despite paying consulting firm Accenture
to ensure a smooth takeover, especially with the department knowing that
the contract was to expire at the end of November 2012.
Answer: The DoL was not ready to take over IT functions because it did not
have IT capacity to take over these functions from the contractor at the
end of the PPP contract in November 2012 due to the fact that DoL from
inception of the PPP did not build IT relevant capacity. During the term of
the PPP contract the DoL did not have sufficient IT Leadership and
Competency to effectively manage the of the PPP contract including the
preparation of the exit and termination period of this contract.
Question 3 (a): On what grounds was the contract extended?
Answer: The contract was never extended. The PPP contract expired on the
30th of November 2012. However, clause 13 of the PPP contract makes
provision for the Termination Support. This clause was therefore invoked
to provide continuity of ICT services whilst the DoL implementing its long
term ICT support processes.
Question 3 (b): Why did the minister deem it necessary to ask for the
contract with EOH Holdings (which bought Siemens IT Solutions and Services
SA (Pty) Ltd) to be suspended?
Answer: The Honourable Minister indicated that she suspended the EOH
services in order to satisfy herself about the process followed to invoke
the termination support mentioned in 3a.
Question 4: How much has been paid to Accenture in total to date to
facilitate the exit strategy?
Answer: The total amount for the R36Â 727Â 528.78 million and a total of
R33Â 506Â 072.88 has been paid to date.
Question 5: When will the Department take over their own IT functions?
Answer: The Department will fully take over its IT function by June 2013