Business Day
*Nyanda in new storm over state tenders* *Thabiso Mochiko, Business Day, Johannesburg, 15 July 2010*COMMUNICATIONS Minister Siphiwe Nyanda is expected to suspend his director-general, Mamodupi Mohlala, following repeated disagreements over tenders she refused to sign.
It is understood that Ms Mohlala warned Gen Nyanda this week that removing the administration of tenders from her would violate the Public Finance Management Act.
Mamodupi MohlalaOn Monday Gen Nyanda instructed that all tenders for the Department of Communications be cancelled until they had been "discussed and approved by the minister". He also changed Ms Mohlala's job description, effectively stripping her of some powers, including the administering of tenders, for which she is responsible as accounting officer.
Last night Tiyani Rikhotso, spokesman for Gen Nyanda, said the minister preferred not to comment on the allegations.
"The minister does not wish to address administrative and human resource issues of the department in the media. This is in deference to the staff of the department including the director-general. Any such matters shall be dealt with internally and according to the applicable laws, regulations and public service policies," he said.
"The minister exercises political oversight over the department and gives policy direction.
"The awarding and adjudication of tenders is the responsibility of the executive management of the department and the relevant state-owned entities," Mr Rikhotso said.
A source close to the pair said Ms Mohlala had refused to approve tenders because they were awarded to companies linked to people close to Gen Nyanda and a private company, General Nyanda Security (GNS).
Gen Nyanda is said to have given instructions to Ms Mohlala to suspend all tenders by the department until they had been discussed and approved by him.
A ministry source said that suspended tenders included one for the appointment of a service provider to advise the department on Telkom 's black economic empowerment status.
Others were for the appointment of a service provider for change management agents to assist with the turnaround of the SABC, and to investigate a suspected fraud case emanating from the forgery of officials' signatures and noncompliance with procurement rules for a New Partnership for Africa's Development meeting in May.
It has also been claimed that Gen Nyanda interfered with state entities that fell under the department. He has told the South African Post Office that the department should be part of the evaluation and adjudication of a tender for the IT network upgrade for the Post Office.
According to sources, Ms Mohlala had opposed changes to her job description on the grounds that they constituted an unfair labour practice.
She also warned of violations of the Public Finance Management Act regarding tenders.
According to another source, the tension between Gen Nyanda and Ms Mohlala was also related to potential delays in SA's migration to digital broadcasting from analogue.
The source said Gen Nyanda felt Ms Mohlala had given the impression the government had decided to adopt Japanese digital standards after it had started with European ones.
The government is evaluating whether to adopt the Japanese technology standards or the European standards to be used for the new broadcasting signal.
This has also caused uncertainty in the industry, which has vehemently opposed the adoption of the Japanese technology.
Ms Mohlala has said the government has not made a decision and will evaluate other technology standards. An industry lawyer said last night that it was unfortunate that there was a rift between the two, especially during this critical phase when state entities like Sentech still needed the government's assistance.
"They work well together and have achieved a lot in the short space of time, especially reining in the mobile operators to reduce the call termination fees," he said.
"If this is true, it is regrettable. The industry will be happy, especially if Mamodupi is suspended. I think the two of them should resolve the matter and find a way to work together again," the lawyer said.
Ms Mohlala was seen as an enforcer of changes in the industry. Last night, Ms Mohlala refused to comment on the matter.
Gen Nyanda has been embroiled in the tender saga that resulted in the dismissal of the CEO of Transnet's Freight Rail division, Siyabonga Gama.
Mr Gama was found to have exceeded his authority in awarding a security contract linked to Gen Nyanda's GNS.
The public protector is also investigating a complaint by the Democratic Alliance about a security contract one of his companies has with the Gauteng roads and transport department, because of an apparent conflict of interest.
The department has finalised the broadband policy that aims to expand high-speed internet and other related communication services to the poor. It is also planning to force telecoms operators to sell shares to black investors.
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