RAF abandoned GCIS despite evidence it was cheaper

THE ROAD Accident Fund (RAF) ditched the Government Communications and Information Services (GCIS) as its media buyer and creative agency despite evidence suggesting GCIS was the more cost-effective option, a parliamentary inquiry has revealed.

- MAYIBONGWE MAGHINA

The Standing Committee on Public Accounts (Scopa) is conducting an inquiry into maladministration, financial impropriety and misuse of public funds at the RAF.

One of the matters it is dealing with is RAF’s procurement of media and marketing services from MediaMix 360 and

Dzinge Production at a combined cost of R1 billion. Testifying at the inquiry, suspended senior marketing manager Hlami Mathye said the RAF used to utilise GCIS to procure media services and also for its panel of creative agencies for advertising until October 2020 when a memorandum of understanding with GCIS was not renewed.

GCIS was initially used for media buying and its Memorandum of Understanding (MoU) was amended to increase its scope to include creative agencies.

However, when the MoU was due for renewal, RAF wanted to go to the market on a competitive bidding process in 2020.

Mathye said a request was put through the Bid Adjudication Committee (BAC) to recommend to the then-new CEO Collins Letsoalo.

“He did not approve stating that GCIS was not cost effective route,” she said.