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
      Schreiber suspends home affairs officials over fake AI references - Leon Schreiber

      Schreiber suspends home affairs officials over fake AI references

      30 April 2026
      South Africa headed to the polls in November

      South Africa headed to the polls in November

      30 April 2026
      Google humbles Big Tech's cloud heavyweights

      Google humbles Big Tech’s cloud heavyweights

      30 April 2026
      Logistics start-up Shiprazor pulls in R44-million seed round

      Logistics start-up Shiprazor pulls in R44-million seed round

      30 April 2026
      Why big IT projects in South Africa keep drifting off course

      Why big IT projects in South Africa keep drifting off course

      30 April 2026
    • World
      'It was my idea': Musk claims paternity of OpenAI - Elon Musk

      ‘It was my idea’: Musk claims paternity of OpenAI

      29 April 2026
      Pivotal week for US tech stocks

      Pivotal week for US tech stocks

      28 April 2026
      Worries over OpenAI's growth as Anthropic gains ground - Sam Altman. Shelby Tauber/Reuters

      Worries over OpenAI’s growth as Anthropic gains ground

      28 April 2026
      Taylor Swift trademarks her voice to fight AI fakes

      Taylor Swift trademarks her voice to fight AI fakes

      28 April 2026
      DeepSeek's long-awaited V4 model enters preview

      DeepSeek’s long-awaited V4 model enters preview

      24 April 2026
    • In-depth
      Alfa's electric rebel - Alfa Romeo Junior Elettrica Veloce

      Alfa’s electric rebel

      29 April 2026
      Africa switches on as Europe dims the lights

      Africa switches on as Europe dims the lights

      9 April 2026
      The biggest untapped EV market on Earth is hiding in plain sight

      The biggest untapped EV market on Earth is hiding in plain sight

      1 April 2026
      The R18-billion tech giant hiding in plain sight - Jens Montanana

      The R16-billion tech giant hiding in plain sight

      26 March 2026
      The last generation of coders

      The last generation of coders

      18 February 2026
    • TCS

      TCS+ | ‘The ISP for ISPs’: Vox’s shift to wholesale aggregator

      20 April 2026
      TCS | Werner Lindemann on how AI is rewriting the infosec rulebook

      TCS | Werner Lindemann on how AI is rewriting the infosec rulebook

      15 April 2026
      TCS | Donovan Marsh on AI and the future of filmmaking

      TCS | Donovan Marsh on AI and the future of filmmaking

      7 April 2026
      TCS+ | Vodacom Business moves to crack the SME tech gap - Andrew Fulton, Sannesh Beharie

      TCS+ | Vodacom Business moves to crack the SME tech gap

      7 April 2026
      TCS | MTN's Divysh Joshi on the strategy behind Pi - Divyesh Joshi

      TCS | MTN’s Divyesh Joshi on the strategy behind Pi

      1 April 2026
    • Opinion
      Free calls, dead voice and Shameel Joosub's Spanish ghost - Duncan McLeod

      Free calls, dead voice and Shameel Joosub’s Spanish ghost

      22 April 2026
      The conflict of interest at the heart of PayShap's slow adoption - Cheslyn Jacobs

      The conflict of interest at the heart of PayShap’s slow adoption

      26 March 2026
      South Africa's energy future hinges on getting wheeling right - Aishah Gire

      South Africa’s energy future hinges on getting wheeling right

      10 March 2026
      Free calls, dead voice and Shameel Joosub's Spanish ghost - Duncan McLeod

      Apple just dropped a bomb on the Windows world

      5 March 2026
      R230-million in the bag for Endeavor's third Harvest Fund - Alison Collier

      VC’s centre of gravity is shifting – and South Africa is in the frame

      3 March 2026
    • Company Hubs
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • Contactable
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • 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
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » News » Labour to take hard line on Siemens IT deal

    Labour to take hard line on Siemens IT deal

    By Editor9 February 2011
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    The department of labour will not renew its 10-year IT contract with Siemens and plans to seek redress for failures by the electronics giant in the 22 months before it runs out.

    This route was recommended by KPMG in a report handed to the department last week, acting director-general Sam Morotoba told parliament’s portfolio committee on labour on Wednesday.

    The auditing firm advised that unilaterally scrapping the contract could lead to costly litigation, and that it would be wiser to come to a negotiated arrangement with Siemens. This should however include reviewing areas of the contract where Siemens failed to deliver on its commitments on time, and enforcing the applicable penalties.

    KPMG also recommended the department present the company with evidence of over-billing and reclaim the excess it was charged. “We have given notification to Siemens that we will not renew this contract,” Morotoba said.

    “We can now enter into negotiations that will result in a make-or-break with Siemens on going forward or not with this contract. We are in the process of setting up high-level negotiations.”

    The department has become increasingly concerned over the contract, which dates from 2002 and is due to run until November 2012, as estimates indicated its overall cost would spiral from R1,2bn to R1,9bn as a result of interest rate and inflation changes.

    In addition, the service it received from Siemens has not been up to standard, partly as internal restructuring at the company saw it outsource delivery to a subcontractor.

    The department said it had not agreed to this arrangement “nor is it obliged to agree to the cession of the contract”. KPMG was of the opinion that it constituted a breach of contract on the part of Siemens.

    The department had enlisted the help of the national treasury, the State IT Agency (Sita) and the state attorney, to handle the talks with Siemens, Morotoba said. It was also taking advice from Sita on setting up a new IT management system once the contract with Siemens expires.

    “Given the remaining term of the contract we had to look beyond Siemens to develop an exit and transfer plan. That process is currently underway.”  — Sapa

    • Image: Surber
    • Subscribe to our free daily newsletter
    • Follow us on Twitter or on Facebook
    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    KPMG Sam Morotoba Siemens
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleStephen Elop’s brutal memo to Nokia staff
    Next Article Cell C’s lessons for Neotel

    Related Posts

    Siemens is battling Big Tech for AI supremacy in factories

    Siemens is battling Big Tech for AI supremacy in factories

    24 June 2025
    iPhone 16 Pro

    Could the iPhone soon be cheaper in South Africa than America?

    8 April 2025
    US President Donald Trump

    Trump tariff threat: what it means for South Africa’s tech sector

    18 February 2025
    Company News
    The breach is in the database - Ascent Technology Johan Lamberts

    The breach is in the database

    30 April 2026
    Hospitality sector embraces Google Workspace and Gemini to cut admin - Digicloud Africa, Rand Data Systems

    Hospitality sector embraces Google Workspace and Gemini to cut admin

    30 April 2026
    Paratus Mozambique powers 2026 Santa Maria fishing showdown

    Paratus Mozambique powers 2026 Santa Maria fishing showdown

    30 April 2026
    Opinion
    Free calls, dead voice and Shameel Joosub's Spanish ghost - Duncan McLeod

    Free calls, dead voice and Shameel Joosub’s Spanish ghost

    22 April 2026
    The conflict of interest at the heart of PayShap's slow adoption - Cheslyn Jacobs

    The conflict of interest at the heart of PayShap’s slow adoption

    26 March 2026
    South Africa's energy future hinges on getting wheeling right - Aishah Gire

    South Africa’s energy future hinges on getting wheeling right

    10 March 2026

    Subscribe to Updates

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

    Latest Posts
    Schreiber suspends home affairs officials over fake AI references - Leon Schreiber

    Schreiber suspends home affairs officials over fake AI references

    30 April 2026
    South Africa headed to the polls in November

    South Africa headed to the polls in November

    30 April 2026
    Google humbles Big Tech's cloud heavyweights

    Google humbles Big Tech’s cloud heavyweights

    30 April 2026
    Logistics start-up Shiprazor pulls in R44-million seed round

    Logistics start-up Shiprazor pulls in R44-million seed round

    30 April 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}