PRESS RELEASE ON THE MINISTER'S STATEMENT ON THE CIPRO ECM TENDER

We have noted Minister Rob Davis statement in the media from his press conference of Tuesday 18 May 2010.

It is regrettable that he made comments to the effect that ‘based upon their investigations, there is an untoward pattern of relationship between ValorIT, Mantra and some CIPRO staff.'

This statement impinges on the integrity of Mantra Consulting and Abe Mbulawa in particular. That Mantra Consulting and none of the other subcontractors were not mentioned is puzzling.

We wish to put it on record that the alleged business case was never defined as a confidential document. It remains to be seen whether the Minister can prove a negative to the effect that none of the other bidders had access to it.

We also note that after launching our summons in the Gauteng South High Court where the Minister was the Second Interested Party, the Minister took a decision not to respond. If either the Minister or his legal advisers read the founding affidavit, they would have noted that the relationship between Mantra Consulting and ValorIT began with the release of the bid and ended on its award. The fact that Mantra Consulting did not sign nor appear in the bid documents indicates the low level of this relationship even before court proceedings began. In the same affidavit which is in the public domain, we have outlined our relationship with two members of the CIPRO executive. That CIPRO decided to appoint its current CIO is an indication of its recruitment process rather any other influences given that Abe Mbulawa provided not one but two potential candidates. We are also not aware if other firms or individuals were not approached for recommendations. That just after Mantra Consulting has won its court bid, the Minister decides to use the public platform to make undue comments is unfortunate.

The Minister is quick to query the tendering process laying blame in several quarters expect his ministry. In September 2009, our attorneys wrote to the Minister with a hope of amicably resolving the CIPRO matter but he never bothered to reply. This was after a failed attempt to approach the CIPRO CEO for intervention. Not only did the Minister or his staff contact our attorneys', his private investigators and the Auditor-General also never saw the need to do so. On the other hand, we have had contact with both the SAPS and NPA. Yet, without giving us an opportunity of reply, the Minister goes on live TV and tells the nation of an unbecoming relationship involving Mantra Consulting! Were any of the other subcontractors investigated or is Mantra Consulting being put up simply because it went to court? If they were not investigated, on what basis were they dismissed? Did the Auditor-General and the private investigators evaluate all the other potential bidders and determine that they did not have access to the said business case or was only the winning bid investigated? Quite clearly, the manner the Minister has handled his investigation leaves much to be desired.

When the fish rots, it rots from the head. As far back as April of 2009, we copied a letter to the CIPRO CEO advising that the removal of subcontractors who helped formulate the ValorIT proposal would have an adverse effect on the project. This letter was ignored. The CIPRO's ECM Contract Board through its Chairman the CEO ignored our warnings as the matter could have easily been addressed through their agreement with the supplier under ‘subcontractor governance'. As a result CIPRO as an organisation, and the D-G who signed off the award, is just as to blame to the current project concerns and recent problems that were widespread in the media; all the blame cannot be apportioned to ValorIT alone nor Mantra Consulting used as a diversion. That CIPRO, the custodian of the Companies' Act and a national economic security point, does not have a Board of Directors is a reflection on the leadership of the dTI rather than CIPRO's executive management.

Therefore, before the Minster and his team start throwing aspersion at Mantra Consulting, they must reflect at how they have failed CIPRO and the nation as a whole. And like any professional organisation, have the courtesy of giving all affected parties an opportunity of reply before making public statements.

Statement issued by Abe Mbulawa, CEO of Mantra Consulting, May 20 2010

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