Dimension Data’s Internet Solutions being chosen as the government’s Internet service provider (ISP) this week is the first major government deal since Andile Ngcaba (pictured) became DiData chairperson in May. The contract was awarded through the State Information Technology Agency (Sita) to provide national and provincial government with Internet connectivity.
Although other government deals were negotiated while Ngcaba, former Department of Communications director general, was the chairperson-designate, none of these have been made public. But DiData said these include the previously unannounced contract with the South African Police Service and the Pan-African Parliament, the latter through the Department of Foreign Affairs. One other is yet to be made public.
Ngcaba headed a consortium that became DiData’s black economic empowerment (BEE) partner last year, using a complex share-funding scheme that vests shares with the consortium based on the increase in the share price. The move was widely seen as a way for the company to attract more government business, given Ngcaba’s profile and nine-year government background.
“Our BEE credentials now allow us to bid for tenders offered by the government, such as Sita,” DiData spokesperson Michelle Atkins said.
“It’s a fantastic deal for us,” Internet Solutions MD Angus MacRobert said. The five-year contract, worth tens of millions of rands, is the first major public sector deal for Internet Solutions since Ngcaba’s appointment.
“It’s just positive that for the first time we’re starting to get some really nice deals since the BEE deal with Andile [was announced] over a year ago,” he said. DiData does not differentiate how much Internet Solutions contributes to group income, although it is one of its most profitable divisions.
Ngcaba’s arrival at DiData reignited debate around the revolving door between the government and business. Before quitting the government, he played a significant role in constructing legislation in the technology and telecommunications fields that directly affect DiData and Internet Solutions and the profits they can make.
Ngcaba was unperturbed by the debate, pointing out that although cooling off periods for departing officials had been discussed none had been implemented.