Post on 14-Jan-2016
transcript
State Information State Information Technology AgencyTechnology Agency
Amendment BillAmendment Bill [B 24B -2002]
September 2002September 2002
Content
Main purpose of BillMain purpose of Bill new business model
Substantial amendmentsSubstantial amendments Subsidiaries, objects & functions of SITA,
Board’s constitution, transfer of staff & assets, rates for service, auditing, exemption, share capital, regulations
ConsultationConsultation
Main purpose of Bill
incorporate new business model
amend share capital
increase number of Board
members
New business model (1)
IT House of Value security interoperability economies of scales elimination of duplication
Aims of House of Value lowering costs increasing productivity enhancing service delivery
New business model (2)
Establish subsidiaries to realise IT House
of Value
Redefine compulsory & optional services
of SITA to align it with IT House of Value
Duty on SITA to uphold & enhance IT
House of Value in performing functions
Substantial amendments (1):
SubsidiariesSubsidiaries
Express provision for SITA to establish subsidiaries, eg e-Services to procure IT
goods & services through IT Acquisition Centre (ITAC) Subsidiary performs such functions as SITA (holding
company) may delegate to it may impose conditions
transfer shares in subsidiaries to 3rd persons requires Cabinet’s approval for
number of shares to be transferred persons to whom shares are to be transferred conditions of transfer Clause 3: section 3A
Substantial amendments (2): Objects of SITAObjects of SITA
Adjust objects of SITA to emphasise its
role in using IT to—
promote efficiency of departments & public
bodies (ie constitutional institutions, public
entities, municipalities & legislatures)
improve service deliveryClause 4: section 6
Substantial amendments (3):
Duties & powers of SITADuties & powers of SITA
Services that SITA mustmust & maymay render are redefined
Certain listed services must, if required, be rendered to national & provincial departments (compulsory services), (compulsory services), provision of— private telecommunication network or value-added network
service ito Telecommunications Act (wide area networks) transversal information systems data-processing or associated services for transversal
information systemsClause 5: section 7(1)(a)
Substantial amendments (4):
Duties & powers of SITADuties & powers of SITA
Certain listed services may, if required, be rendered to departments (optional services)(optional services) training in IT or IT systems application software development maintenance services for IT software/infrastructure data-processing or associated services for
departmentally specific IT applications/systems management services for IT or IT systems
Public bodies have choice whether to use any of listed services
Clause 5: section 7(1)(b)
Substantial amendments (5):
Duties & powers of SITADuties & powers of SITA cont Under current Act SITA must act as procurement agencyprocurement agency
for IT requirements unequivocally establish SITA’s role as sole IT goods & services sole IT goods & services
procurement agencyprocurement agency for all departments
Departments requiring compulsory servicecompulsory service must— acquire it from SITA or if SITA can’t provide it, procure it through SITA
Departments requiring optional serviceoptional service may choose to acquire it from SITA or through procurement, ie not obliged to use SITA
Current system of phased-in (full) participation by departments are replaced by more flexible arrangementflexible arrangement Clause 5: section 7(3) &(4)
Substantial amendments (6):
Duties & powers of SITADuties & powers of SITA cont
Departments must conclude business & service level business & service level
agreementsagreements with SITA to regulate compulsory &
optional services that it intends to use
Compulsory termsCompulsory terms of business agreement to be
prescribed by regulation
ExistingExisting business & service level agreements to be
phased out within 36 months Department & SITA must conclude new BA & SLA
Clause 13: section 20
Substantial amendments (7):
Duties & powers of SITADuties & powers of SITA cont Services used by department in respect of which
component initially constituted SITA must continuemust continue to use those services (s3(4) of current Act) unless terminated by agreement between by relevant
department & SITA “component” = Central Computer Services, Infoplan,
sub-component Information Systems in Dept of Safety & Security
Assets of these components transferred to SITA (ito current s19(2)) remain SITA’s assets & its return may not be requested
Clause 2: section 3(4A)
Substantial amendments (8):
Duties & powers of SITADuties & powers of SITA cont
SITA must set standardsstandards for— interoperability of information systems
subject to Minister for Public Service & Administration’s approval
information systems security environment subject to said Minister & Minister of Intelligence’s approval
SITA must certifycertify all acquisition of IT goods/service for compliance with these standards
Clause 5: section 7(6)
Substantial amendments (9):
Duties & powers of SITADuties & powers of SITA cont
SITA may— exclusively sell or provide authentication products or authentication products or
servicesservices for all departmentsfor all departments on requestrequest, sell or provide such products or services for
public bodypublic body apply for accreditationaccreditation of those products/services ito E-
Communications & Transactions Act If not provided by SITA, department must & public
body may procureprocure it through SITA from preferred preferred authentication serviceauthentication service providers (s28(2) of E-Com & Trans Act)
Clause 5: Section 7(6)(c) & (7)
Substantial amendments (10):
Duties & powers of SITADuties & powers of SITA cont
SITA may conduct researchresearch regarding use of IT to improve efficiency of public administration
In performing functions SITA must- eliminate unnecessary duplicationunnecessary duplication of IT goods/services leverage economies of scaleleverage economies of scale to provide cost-effective
service comply with-
government policiesgovernment policies on information management & IT regulationsregulations made under SITA Act & Public Service Act Preferential Procurement Policy Framework ActPreferential Procurement Policy Framework Act
Clause 5: section 7(6)(d) & (8)
Substantial amendments (11):
Constitution of BoardConstitution of Board
Current Act maximum of 1010 members/directors with not more than 3 not more than 3
executive directorsexecutive directors Aim of proposed amendment is to enable
appointment of up to 6 executive directorsup to 6 executive directors on board, eg: SITA MD (Group CEO) chief operating officer & chief financial officer of SITA
(holding company) CEO of each of 3 subsidiaries
Clause 6: section 10
Substantial amendment (12):
Constitution of Board contConstitution of Board cont
Proposed amendment requires— increasing maximum to 14 to ensure non-executive non-executive
directorsdirectors remain majoritymajority in line with corporate governance replacing limitation of 3 executive directorslimitation of 3 executive directors with
requirement that majority of directors must be non-executive
maximum of executive directors never more than 6 -eg 6 executive & 8 non-executive
Increase in non-executive directors - assist in ensuring expertsexperts in financial management, governance and IT networks, security, interoperability & procurement serve on board
Substantial amendments (13):
Constitution of Board contConstitution of Board cont
Provision made for Minister to appoint alternate alternate membermember for every non-executive member Aim: Absence of non-executive members should not
prevent Board from continuing with its business Alternate may attend & vote at Board meetings that
member is unable to attend Serve same term as member in respect of whom he/she
is appointed & also vacates office with him/her
Majority of non-executive directors forms quorum
Substantial amendments (14):
Transfer of staff & assetsTransfer of staff & assets
SITA must offer employmentoffer employment to IT practitioner of department associated with compulsory/optional service when department uses SITA for that service
Clause 8: section 15(1)
When compulsory services are used, all assets must be transferred to SITA includes intellectual property rights
When optional services are used, only those assets that both parties agreed to, are transferred to SITA
Transfers exempted from transfer & stamp duty, etcClause 12: section 16
Substantial amendments (15):
Rates for services, auditing & Rates for services, auditing & exemptionexemption Minister for Public Service & Administration to determine
rates for SITA’s services after consultation with all Ministers & MECs with approval of Minister of Finance Clause 9(a): Section 16(1) &(2)
Board may appoint own auditor to audit holding & subsidiary companies, ie no longer Auditor-General
Clause 9(e): section 16(9)
To protect Republic’s security, Minister of Intelligence may exempt any intelligence service established by President ito s209(1) of Constitution from any provision of Act Clause 5: section 7(9)
Substantial amendments (16):
Share capitalShare capital
Current Act (s18) stipulates that State must be issued with fully paid-up shares as stipulated in an agreement in exchange for assets transferred to SITA
valued on method acceptable to State Requires valuation of assets and then
agreement on value and number of shares
Substantial amendment (18):
Share capital contShare capital cont Provision in current Act inappropriate for both current &
proposed role of SITA Current role
Requires transfer of all IT assets, but assets transferred from time to time, ie as & when departments participate - not once off transfer of assets of all IT assets of all departments
Proposed role Does not require transfer of all IT assets, but only-
assets related to networks, transversal information systems & data-processing/associated services for such systems (compulsory services)
other IT assets but only if SITA & department agree (optional services) also not once-off transfer of assets, but only as & when
department requires a particular service
Substantial amendment (19):
Share capital contShare capital cont
Now proposing share capital of R1, represented by one share with nominal value of R1 share capital has no linkage to assets transferred
to SITA State remains sole shareholder of SITA
no provision for transfer of shares in SITA, but only its subsidiaries
Clause 10: section 17
Substantial amendments (20):
Regulations - clause 15Regulations - clause 15 Minister for Public Service & Administration
empowered to make regulations on— IT procurementIT procurement-
after consultation with all Ministers & MECs subject to Minister of Finance’s approval requiring participation of client departments in procurement process requiring support of local economies regarding exemption from procuring through SITA
compulsory terms of business agreementbusiness agreement additional functions additional functions for SITA to achieve objects information systems securityinformation systems security for all departments, with Minister
of Intelligence’s approval procedure to resolve disputesprocedure to resolve disputes between departments & SITA
Consultation process
Before Cabinet’s approval was sought, comment requested from all national & provincial departments, SITA & GITO Council
Those that submitted comment listed in Memorandum on Objects of Bill (par 5)
SITA Amendment BillSITA Amendment Bill
endend