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SARS tender process grinds to a halt

Johannesburg, 23 May 2006

While it has been anticipated that the SA Revenue Service (SARS) would soon announce the winning bidders for several large tenders, valued at almost R4 billion, it is believed the process has effectively ground to a halt.

SARS has recently several times delayed the naming of winners of its customs scanner tender, the voice and data networks replacement tender, and the modernisation of tax and customs business, products and systems tender.

Various sources indicate the delays have been the result of a different approach by the service's new acting CIO, Barry Hore, compared to previous CIO Ken Jarvis.

Jarvis, who left SARS at the end of March, initiated all three tenders and sources have said all three were ready to be awarded during April.

Hore, who will officially take up the position of GM for strategy, modernisation and technology on 1 July, has for the past couple of months assumed the role of acting CIO while finishing off his commitments with Nedcor.

Tender scrapped

Market rumours suggest the modernisation tender, valued at R750 million, is to be scrapped. It is understood that SARS will re-evaluate the entire project and will likely choose a different way to proceed with modernisation.

In early March, Jarvis indicated to ITWeb that the winning bidder for the customs scanner tender (to install 12 to 18 container scanners at the Durban harbour and at other ports around the country) would be announced "within a few days".

While it was expected that the first scanner would be installed in July, this now seems unlikely, as it is understood the equipment order has not been placed.

Allegations are that Hore's questioning of the public-private partnership model that is to be used for this project is delaying the customs scanner tender process.

While SARS spokesperson Adrian Lackeay confirms Hore plays a central role in managing the tender projects, he categorically denies the appointment of Hore as acting CIO has caused any of the tenders to be reconsidered. He says SARS is simply taking its time with awarding the tenders because a large amount of public money is at stake.

"The final accounting officer on this is the commissioner [Pravin Gordhan]."

Subsequent attempts at finding reasons for the delays have been met with little explanation from SARS.

Both Hore and Gordhan were in meetings this morning and could not be reached for comment.

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