Transnet, Gijima reach agreement on R1.3bn IT services contract

A Transnet locomotive. Picture: Facebook

A Transnet locomotive. Picture: Facebook

This comes after a number of engagements between the two companies on the IT data services contract estimated at R1.3 billion for a period of five years. 

State-owned freight and logistics company Transnet said on Thursday that it had issued tech company Gijima Holdings with a letter of intent for a previously disputed IT data services contract worth more than R1 billion.

An impasse between Transnet, Gijima and the former service provider T-Systems had been going on for years over who was rightfully awarded the contract to provide IT data services to Transnet.

Late last year, T-Systems withdrew from the court case at the South Gauteng High Court after Transnet made an application for a declaratory order to set aside its 2017 letter of intent to award the contract to give T-Systems the contract and give the contract to Gijima instead.

In a statement on Thursday, Transnet said the decision to issue the letter of intent was taken following thorough deliberations on procurement processes as part of the clean governance approach adopted by the new board.

The board had commissioned an internal assessment on this contract and continues to ask management to carry out risk evaluation exercises on all major contracts.

On March 1, 2019, all parties, Transnet, Gijima and T-Systems expressed their support on the way forward on the IT data contract.

Tau Morwe, Transnet acting group chief executive, said they were pleased that this matter has been finalised to the satisfaction of both parties.

“A process of disengagement from T-Systems will commence shortly, with Gijima becoming the IT service provider for Transnet. In this regard, a handover process from T-Systems to Gijima will be effected,” Morwe said.

Transnet also disputed media reports that it had intended to undermine the court order which it had applied for or that it was doing everything in its power keep the T-Systems’ contract longer than the stipulated period.

Gijima’s group chief operating officer, Maphum Nxumalo said Gijima feels finally vindicated for its just fight for a fair and unbiased Transnet public tender system.

“Gijima is happy that three years later the injustice has been rectified following the High Court decision and the invaluable role played by National Treasury and Transnet,” Nxumalo said.

“In the process, Gijima spent tens of millions of rands whilst fighting for justice and transformation resulting in a court order granted on 12 December 2018. Since then, T-Systems’ contract expired on 8 March 2019.”

Nxumalo said Gijima was ready to begin executing the contract with significant cost savings and innovation for the benefit of Transnet and the country.

Transnet said that it newly-appointed board intended to ensure that all major contracts will be reviewed to ensure that they comply with the spirit and letter of the Public Finance Management Act.

– African News Agency (ANA)

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