The Democratic Alliance (DA) has learned that ValorIT, the IT company whose allegedly irregular R153 million tender with Cipro came under fire following a forensic investigation, has approached the Gauteng North High Court to request a declaratory order to have its contract for the Enterprise Content Management (ECM) system declared valid.

This court action could have been avoided if the department had acted when red flags were first raised regarding the ECM tender in September 2009.

The application brought by ValorIT seeks to overturn the announcement by Trade and Industry Minister Rob Davies that gave the IT company ten working days to give reasons why the contract should not be cancelled. Instead, ValorIT would like the court to place the burden of proof on the department and order it to supply reasons as to why the contract is invalid.

The early termination of the initial forensic audit as well as delays in the related South African Police Service (SAPS) investigation will assist ValorIT in challenging the Minister's decision. However, this latest development could have been completely avoided had the minister heeded the DA's warnings regarding tender irregularities at Cipro.

In addition to closely monitoring the situation, I will be writing to the Minister to ascertain how he intends to ensure that Cipro is put back on track. The agency performs a critical function in the South African economy and, for the sake of the thousands of entrepreneurs who engage with it on a daily basis, it is important that the department prevents irregular activity from occurring in the future.

Statement issued by Andricus van der Westhuizen, MP, Democratic Alliance deputy shadow minister of trade and industry, June 8 2010

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