Download ppt - State Information Technology Agency Amendment Bill State Information Technology Agency Amendment Bill [B 24B -2002] September 2002

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


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)


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)


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)


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


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)



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)



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)



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)


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


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


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


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


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)


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


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


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



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

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