Minister Solly Malatsi on SITA regulations and EEIPs

The claims by the Chairperson of the Portfolio Committee on Communications and Digital Technologies, Ms Khusela Sangoni-Diko, regarding the proposed State Information Technology Agency (SITA) regulations and draft policy directive on equity equivalent investment programmes (EEIPs), are devoid of truth.

The SITA regulations, which enjoy overwhelming support from Ministers in the Government of National Unity and provincial governments, give departments the freedom to procure outside of SITA. To do so, departments must present a strong and viable business case within existing public procurement prescripts, with faster turnaround times and reduced costs.

This flexibility can improve public services for all South Africans by allowing government to respond more quickly and use resources more efficiently—something long requested by many departments.

These regulations are fully aligned with existing laws on government procurement and already have the concurrence of the Minister of Finance, as required by the SITA Act.

Anyone with basic knowledge of South Africa’s empowerment laws knows that EEIPs are legally permissible and have attracted major investments in the economy, including in the automotive sector. Recognising their potential, government’s Medium Term Development Plan (MTDP), formally approved by Cabinet, has adopted the introduction of EEIPs in the ICT sector.

Claims that these proposals undermine transformation are baseless and false.

It is clear that this misinformation campaign forms part of Ms Sangoni-Diko’s political audition for a possible executive role. We recognise it as such and remain focused on improving service delivery for the citizens of this country.

Enquiries:
Kwena Moloto
Spokesperson
Ministry of Communications and Digital Technologies
Cell: 083 269 3189
E-mail: kmoloto@dcdt.gov.za

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