1 / 26

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

The IT Agency Amendment Bill aims to introduce a new business model to optimize IT services, redefine SITA's duties, establish subsidiaries, and enhance efficiency. Consultation and amendments are highlighted.

jorgeh
Download Presentation

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

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. State Information Technology AgencyAmendment Bill[B 24B -2002] September 2002

  2. Content • Main purpose of Bill • new business model • Substantial amendments • Subsidiaries, objects & functions of SITA, Board’s constitution, transfer of staff & assets, rates for service, auditing, exemption, share capital, regulations • Consultation

  3. Main purpose of Bill • incorporate new business model • amend share capital • increase number of Board members

  4. 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

  5. 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

  6. Substantial amendments (1):Subsidiaries • 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 transferClause 3: section 3A

  7. Substantial amendments (2):Objects 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 delivery Clause 4: section 6

  8. Substantial amendments (3):Duties & powers of SITA • Services that SITA must & may render are redefined • Certain listed services must, if required, be rendered to national & provincial departments (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 systems Clause 5: section 7(1)(a)

  9. Substantial amendments (4):Duties & powers of SITA • Certain listed services may, if required, be rendered to departments (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)

  10. Substantial amendments (5):Duties & powers of SITA cont • Under current Act SITA must act as procurement agency for IT requirements • unequivocally establish SITA’s role as sole IT goods & services procurement agency for all departments • Departments requiring compulsory service must— • acquire it from SITA or • if SITA can’t provide it, procure it through SITA • Departments requiring optional 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 arrangementClause 5: section 7(3) &(4)

  11. Substantial amendments (6):Duties & powers of SITA cont • Departments must conclude business & service level agreements with SITA to regulate compulsory & optional services that it intends to use • Compulsory terms of business agreement to be prescribed by regulation • Existing business & service level agreements to be phased out within 36 months • Department & SITA must conclude new BA & SLA Clause 13: section 20

  12. Substantial amendments (7):Duties & powers of SITA cont • Services used by department in respect of which component initially constituted SITA must 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)

  13. Substantial amendments (8):Duties & powers of SITA cont • SITA must set standards 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 certify all acquisition of IT goods/service for compliance with these standards Clause 5: section 7(6)

  14. Substantial amendments (9):Duties & powers of SITA cont • SITA may— • exclusively sell or provide authentication products or servicesfor all departments • on request, sell or provide such products or services for public body • apply for accreditation of those products/services ito E-Communications & Transactions Act • If not provided by SITA, department must & public body may procure it through SITA from preferred authentication service providers (s28(2) of E-Com & Trans Act) Clause 5: Section 7(6)(c) & (7)

  15. Substantial amendments (10):Duties & powers of SITA cont • SITA may conduct research regarding use of IT to improve efficiency of public administration • In performing functions SITA must- • eliminate unnecessary duplication of IT goods/services • leverage economies of scale to provide cost-effective service • comply with- • government policies on information management & IT • regulations made under SITA Act & Public Service Act • Preferential Procurement Policy Framework Act Clause 5: section 7(6)(d) & (8)

  16. Substantial amendments (11):Constitution of Board • Current Act • maximum of 10 members/directors with not more than 3 executive directors • Aim of proposed amendment is to enable appointment of up 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

  17. Substantial amendment (12):Constitution of Board cont • Proposed amendment requires— • increasing maximum to 14 to ensure non-executive directors remain majority in line with corporate governance • replacing limitation 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 experts in financial management, governance and IT networks, security, interoperability & procurement serve on board

  18. Substantial amendments (13):Constitution of Board cont • Provision made for Minister to appoint alternate member 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

  19. Substantial amendments (14):Transfer of staff & assets • SITA must offer 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, etc Clause 12: section 16

  20. Substantial amendments (15):Rates for services, auditing & exemption • 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)

  21. Substantial amendments (16):Share 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

  22. Substantial amendment (18):Share 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

  23. Substantial amendment (19):Share 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

  24. Substantial amendments (20):Regulations - clause 15 • Minister for Public Service & Administration empowered to make regulations on— • IT 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 agreement • additional functions for SITA to achieve objects • information systems security for all departments, with Minister of Intelligence’s approval • procedure to resolve disputes between departments & SITA

  25. 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)

  26. SITA Amendment Bill end

More Related