Constitutional Court hears Gijima and Sita dispute
The ongoing legal battle between technology group Gijima and the State Information Technology Agency (Sita) headed to the Constitutional Court on Tuesday as the state-owned firm sought to set aside the multimillion rand deal it awarded to the privately owned company. In January 2012 Sita cancelled a multimillion rand contract with Gijima to provide IT services to the South African Police Service (SAPS) and this resulted in the company, founded by businessman Robert Gumede, incurring about R20m in lost revenue. The contract was awarded in 2006. In February 2012, the parties reached an out of court settlement that resulted in Gijima being offered another contract with the Department of Defence and Sita also agreed to compensate Gijima for losses which arose from the termination of the SAPS agreement. Sowetan reported in January that a year into the department contract, Sita stopped paying Gijima and the company instituted arbitration proceedings to force the state agency to pay R9.5m....
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