Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      MultiChoice scraps annual DStv price hikes for 2026 - David Mignot

      MultiChoice scraps annual DStv price hikes for 2026

      20 February 2026
      South Africa's dynamic spectrum breakthrough - Paul Colmer

      South Africa’s dynamic spectrum breakthrough

      20 February 2026
      SABC Plus tops two million registered users

      SABC Plus tops two million registered users

      20 February 2026
      Blu Label takes R5.2-billion Cell C hit, touts clean slate ahead

      Blu Label takes R5.2-billion Cell C hit, touts clean slate ahead

      19 February 2026
      MeerKAT detects most powerful natural radio laser ever observed

      MeerKAT detects most powerful natural radio laser ever observed

      19 February 2026
    • World
      Prominent Southern African journalist targeted with Predator spyware

      Prominent Southern African journalist targeted with Predator spyware

      18 February 2026
      More drama in Warner Bros tug of war

      More drama in Warner Bros tug of war

      17 February 2026
      Russia bans WhatsApp

      Russia bans WhatsApp

      12 February 2026
      EU regulators take aim at WhatsApp

      EU regulators take aim at WhatsApp

      9 February 2026
      Musk hits brakes on Mars mission

      Musk hits brakes on Mars mission

      9 February 2026
    • In-depth
      How liberalisation is rewiring South Africa's power sector

      How liberalisation is rewiring South Africa’s power sector

      21 January 2026
      The top-performing South African tech shares of 2025

      The top-performing South African tech shares of 2025

      12 January 2026
      Digital authoritarianism grows as African states normalise internet blackouts

      Digital authoritarianism grows as African states normalise internet blackouts

      19 December 2025
      TechCentral's South African Newsmakers of 2025

      TechCentral’s South African Newsmakers of 2025

      18 December 2025
      Black Friday goes digital in South Africa as online spending surges to record high

      Black Friday goes digital in South Africa as online spending surges to record high

      4 December 2025
    • TCS
      Watts & Wheels S1E4: 'We drive an electric Uber'

      Watts & Wheels S1E4: ‘We drive an electric Uber’

      10 February 2026
      TCS+ | How Cloud On Demand is helping SA businesses succeed in the cloud - Xhenia Rhode, Dion Kalicharan

      TCS+ | Cloud On Demand and Consnet: inside a real-world AWS partner success story

      30 January 2026
      Watts & Wheels S1E4: 'We drive an electric Uber'

      Watts & Wheels S1E3: ‘BYD’s Corolla Cross challenger’

      30 January 2026
      Watts & Wheels S1E4: 'We drive an electric Uber'

      Watts & Wheels S1E2: ‘China attacks, BMW digs in, Toyota’s sublime supercar’

      23 January 2026

      TCS+ | Why cybersecurity is becoming a competitive advantage for SA businesses

      20 January 2026
    • Opinion
      A million reasons monopolies don't work - Duncan McLeod

      A million reasons monopolies don’t work

      10 February 2026
      The author, Business Leadership South Africa CEO Busi Mavuso

      Eskom unbundling U-turn threatens to undo hard-won electricity gains

      9 February 2026
      South Africa's skills advantage is being overlooked at home - Richard Firth

      South Africa’s skills advantage is being overlooked at home

      29 January 2026
      Why Elon Musk's Starlink is a 'hard no' for me - Songezo Zibi

      Why Elon Musk’s Starlink is a ‘hard no’ for me

      26 January 2026
      A million reasons monopolies don't work - Duncan McLeod

      South Africa’s new fibre broadband battle

      20 January 2026
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » News » Home affairs may save R2bn in Gijima settlement

    Home affairs may save R2bn in Gijima settlement

    By Editor7 March 2011
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp
    The new home affairs IT system is meant to enhance efficiency, including at the country's border posts

    The department of home affairs has hailed the settlement it reached over the weekend with JSE-listed IT group Gijima, saying the agreement is in the best interest of the state and taxpayers and could save the department in the region of R2bn.

    Gijima was appointed in 2008 to modernise the department’s IT infrastructure in a project known as “Who Am I Online?”.

    The project is meant to digitise most of the key processes of the department. This includes producing an enhanced national population register and processing ID, passport, visa and other permit applications more efficiently. It’s also aimed at enhancing “movement control” for South Africans and foreigners at the country’s borders.

    Gijima won the R2,1bn bid in 2008, but by 2010 the cost of the project had escalated to R4,5bn, leading to an investigation by the department.

    In April last year, home affairs notified Gijima — as well as IBM and Hewlett-Packard, which had provided lease financing for the project — that it regarded the contract as invalid. The department then entered into negotiations to allow for the “urgent completion of the project in line with its original requirements and in line with the original cost estimates”.

    In terms of the settlement between the parties, the agreed final cost of the project to the department will be R2,27bn, in line with the budget allocated by national treasury of R2,23bn, which was conditionally approved in 2009.

    Government has paid R391m to date, including interest on leases of R945m between Gijima and the department. IBM and Hewlett-Packard purchased the revenue streams accruing from these leases. Home affairs has agreed to settle R815m of these leases early, saving R234m in capital and interest.

    Home affairs says Gijima has agreed to contribute R375m under the settlement. This money comprises the “writing down of invoices and the future rendering of support and maintenance services”.

    “The settlement opens the way for the urgent resumption of the project and represents a potential R2bn in saving to government against the R4,5bn estimated cost to complete the project under the current disputed contracts.”

    Once the outstanding lease settlement costs have been paid, the department says it anticipates spending R1,3bn in completing the project. The vast bulk of this funding will be paid to subcontractors working with Gijima to deliver the outstanding components of the project.

    Home affairs says a key factor that allowed for completion of the project at close to the original tender amount is the use of existing state IT infrastructure and systems developed in recent years. “Among these is the highly successful enhanced movement control system developed and implemented ahead of the 2010 World Cup.”

    The project will also build on a number of systems currently in use by the SA Revenue Service, including its service management system used in branches and in its call centre.  — Staff reporter, TechCentral

    • Image: Fihliwe
    • Subscribe to our free daily newsletter
    • Follow us on Twitter or on Facebook


    Gijima
    WhatsApp YouTube Follow on Google News Add as preferred source on Google
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleMotorola Xoom tablet set for April launch in SA
    Next Article Microsoft tries to bring back the cool

    Related Posts

    BCX CEO Jonas Bogoshi to retire after seven years at the helm

    BCX CEO Jonas Bogoshi to retire after seven years at the helm

    16 February 2026

    Hamilton Ratshefola, IT industry stalwart, has died

    16 April 2023

    Gijima lands consecutive IT Partner of the Year award from Huawei

    4 August 2022
    Company News
    Customers have new expectations. Is your CX ready? 1Stream

    Customers have new expectations. Is your CX ready?

    19 February 2026
    South Africa's cybersecurity challenge is not a tool problem - Nicholas Applewhite, Trinexia South Africa

    South Africa’s cybersecurity challenge is not a tool problem

    19 February 2026
    The quiet infrastructure powering AI: why long-life IOT networks matter more than ever - Sigfox South Africa

    The quiet infrastructure powering AI: why long-life IoT networks matter more than ever

    18 February 2026
    Opinion
    A million reasons monopolies don't work - Duncan McLeod

    A million reasons monopolies don’t work

    10 February 2026
    The author, Business Leadership South Africa CEO Busi Mavuso

    Eskom unbundling U-turn threatens to undo hard-won electricity gains

    9 February 2026
    South Africa's skills advantage is being overlooked at home - Richard Firth

    South Africa’s skills advantage is being overlooked at home

    29 January 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    MultiChoice scraps annual DStv price hikes for 2026 - David Mignot

    MultiChoice scraps annual DStv price hikes for 2026

    20 February 2026
    South Africa's dynamic spectrum breakthrough - Paul Colmer

    South Africa’s dynamic spectrum breakthrough

    20 February 2026
    SABC Plus tops two million registered users

    SABC Plus tops two million registered users

    20 February 2026
    Blu Label takes R5.2-billion Cell C hit, touts clean slate ahead

    Blu Label takes R5.2-billion Cell C hit, touts clean slate ahead

    19 February 2026
    © 2009 - 2026 NewsCentral Media
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}