Transnet has issued JSE-listed information and communications technology company Gijima a letter of intent (LoI) to enter into a five-year information technology (IT) data services contract, valued at R1.3-billion.
Transnet said the LoI issuance was a decision taken following thorough deliberations on procurement processes, as part of the board’s clean governance approach.
The State-owned freight utility’s board had commissioned an internal assessment on this contract and continued to ask management to carry out risk evaluation exercises on all major contracts.
Meanwhile, a process of disengagement from T-System, the prior data service provider, has started, confirmed Transnet acting CE Tau Morwe.
The Johannesburg High Court in December paved the way for the IT contract to be awarded to Gijima, following the company’s complaint that there was an unfair procurement process involved with awarding T-Systems the contract, which was actioned by the previous Transnet board.