Situation at CIPRO out of control - DA

Cipro corruption allegations and dubious tenders: minister must explain

The situation at Cipro (Companies and Intellectual Property Registration Office) is out of control - dubious tenders, corruption allegations and dismal internal security are cause for great concern over the office's ability to meet its mandate. Urgent action is needed to clarify the situation.

Serious questions are mounting regarding the allocation of a tender to IT service provider ValorIT to administer Cipro's database for R152.7 million - while the company's biggest reported turnover has been less than R2.2 million. Worse still, there is proof that ValorIT had access to Cipro's business plan - which is confidential - and therefore constitutes tender rigging.

Millions of rands have already been pilfered from businesses because of faults in Cipro's information systems provided by ValorIT. The serious flaws in the system allow criminals to commit tax fraud by posing as businesses entitled to tax refunds - something that could have been avoided if the system was on standard.

If Cipro cannot be trusted to administer the affairs of business registration, then it places the entire economy at risk - small to medium size businesses are the engine room of job creation.

The Minister of Trade and Industry, Rob Davis, must explain how such a small business as ValorIT could've been judged as having "a track record to deliver on a contract of this magnitude" - and why Cipro deemed it fit to award such a big state tender to a business whose books have never been properly audited.

There is quite a difference between having a turnover of just over R2 million per year and the responsibility for a single contract worth R153 million. The Supply Chain Management Framework clearly stipulates that a prospective bidder must be able to prove that it can sustain a contract of such high monetary value.

Parliamentary questions also revealed that both the minister and the director-general of Trade and Industry have requested an audit regarding this tender - but it remains to be made public. The DA will be asking further questions on this matter.

Statement issued by Andricus van der Westhuizen, MP, Democratic Alliance deputy shadow minister of trade and industry, October 29 2009

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As is the norm several of the points contained in the DA’s statement of 29 October are inaccurate. However, we have corrected most their inaccurate facts on previous occasions and will therefore not bore you by doing so again. The statement: 'millions of rands have already been pilfered from businesses because of faults in CIPRO’s information systems provided by ValorIT ...' is however a new one! In fact, it is because of our very antiquated, existing “Legacy” systems that some of the fraud, as highlighted during our media conference on Friday 21 August 2009, could take place. It is for this very reason that the urgent implementation of the ECM tender was so important and necessary. We did highlight this during the media conference in August, 2009. We are not sure if there is any merit in publishing this information but wanted to bring it to your attention nevertheless."

Dr Elsabé Conradie, Head of Communications, Marketing and Stakeholder Relations, CIPRO

 

Related links

Articles:

CIPRO responds to 5 follow up questions »

Why ValorIT got the R153m CIPRO tender - Rob Davies »

DA spreading misinformation about CIPRO - Keith Sendwe »

Michael Twum-Darko implicated in tender rigging - DA »

DA peddling lies about CIPRO - Keith Sendwe »

Inquiry needed into rot at CIPRO - DA »

Comments

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responses to this article

Cipro fruitless and wastful expenditure Even if all the tender procedures had been followed and a good IT company appointed Cipro's website would still be a waste of money. Most of the information held in its database (I refer to the Companies & Close Corporation Registries) is . .more duplicated at SARS. SARS' e-filing system has been operational for a few years now, many bugs have been ironed out and practitioners have learnt how it works. Re-inventing the wheel, duplicating all that hardware, software and proceedings (why can the annual return not be combined with the tax return, for example?) creates more work for the staff of these organisations as well as for the accounting and secretarial firms who are its "customers". In the end, the taxpayer pays, not once, but twice - in taxes & duty to support this and in professional fees. Combining one call centre might [?] reduce the inordinate amount of time trying to get through to and sense out of the call centres. Frankly, the money spent on luxury BMWs is more productive than this. . .less by CA(SA) on October 29 2009, 21:02 Find this comment inappropriate? Report it

Catastrophe looming CIPRO is one of the cornerstones of the country's economy !!! Urgent, drastic action required by Government. by Jonathan on October 30 2009, 11:05 Find this comment inappropriate? Report it

Cipro - To much info for the Masses The ANC wants Cipro to fail. Cipro before it was set-up for failure allowed Media and masses far to MUCH info on who owned/was director etc in companies. The ministers do not like this type of disclousure. They keep getting caught on . .more spouses/family directorships etc.. Watch the Govt quickly put some bill through to block this to good an access to information. Keep the masses dumb and in the dark. Break it quick to hide the info. A Good job gets rewarded with a multiple of annual salary when you then get transferred to another quasi Giovt Dept to do the next dirty deed. . .less by Cipro MUST fail - ANC Directive on October 31 2009, 17:42 Find this comment inappropriate? Report it

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