Siemens stands by SABC contract

By Damaria Senne for Siemens
Johannesburg, 19 Jun 2008

Siemens Southern Africa has denied any irregularities pertaining to its R330 million SABC digital migration contract, which has become part of the allegations levelled against the broadcaster's CEO, Dali Mpofu, by the SABC board.

The board is accusing Mpofu of financial mismanagement, including the signing the R330 million contract with Siemens, without following procedure, or having the required authority. Mainstream media reports say Mpofu paid Siemens R7 million before the contract was signed. The deal was subsequently signed in September 2006.

The SABC board suspended Mpofu for the third time last week, despite a Johannesburg High Court ruling which declared the previous suspension unlawful.

Siemens SA refused to address issues that relate directly to the allegations against Mpofu with regard to the contract, and would not confirm or deny that it received the R7 million that Mpofu is alleged to have handed over.

However, Sithembile Mokaeane, Siemens' media relations manager, says the company followed proper tender procedures to win the three-year SABC contract. "The contract itself is not under investigation (by Siemens)," she says.

Project details

Mokaeane says Siemens SA is developing a strategy designed to convert the SABC's transmission technology from analogue to digital and is helping to implement the strategy.

The preparatory phase of the deal saw Siemens SA refresh the SABC's technology roadmap, and undertake a skills and training gap analysis, she says. This part of the project is already completed.

Siemens is also providing a framework for the new programme management office that will oversee the implementation of around 200 technology projects that are crucial to digital transformation of the SABC's infrastructure, she adds.

Mokaeane notes that Siemens SA partnered with local ICT players Sedibeng Multimedia Services, Simeka and Spectrum Visual networks on the project.

SABC spokesman Kaiser Kganyago refused to comment on whether the Siemens contract was questionable.

"I don't even know if the allegations are true or not. I never saw a document outlining the charges levelled against him. But if the allegations in the news report were true, I would still be unable to discuss them on the grounds that they are the subject of an investigation," he said.