SITA ANNUAL REPORT - CONCEPT 02

STATE
INFORMATION
TECHNOLOGY
AGENCY

4IR IS HERE

CONTENTS

ANNUAL

REPORT 18/ 19SITASOCLtdCorporateAnnualReport

Version: v1.2 // 2018/19

PART
A3.0
GINEFNOERRMAALTION1.0 Public entity’s general information 00

2.0 List of abbreviations/acronyms 00

Statement of responsibility and confirmation of accuracy of the annual report 00

4.0 Foreword by the Chairman 00

5.0 Managing Director’s Overview 00

6.0 Strategic overview 00

7.0 Vision 00

8.0 Mission 00

9.0 Values 00

10.0 Legislative and other mandates 00

10.1 Presidential Review Committee

10.2 State Information Technology Agency Act, 88 of 1998

10.3 Constitutional mandates
10.3.1 Section 195: Basic values and principles governing public administration
10.3.2 Section 217: Procurement
11.
PA R TOrganisational Structure 00
B2.1.3 -Broadband connectivity
PINEFROORMMAANTCIOEN01. 00
Auditor-General’s report: predetermined objectives

02. Situational Analysis 00

2.1 -Introduction

2.1.1 -Electronic government

2.1.2 -Cloud Computing

2.1.4 -ICT security

2.1.5 -Industry transformation

2.1.6 -Procurement automation

2.1.7 -Economies of scale

2.2 -Customer Services

2.3 -Organisational Environment

2.3.1 -Key policy developments and legislative changes

2.3.2 -Strategic programmes and initiatives

03. Programme Performance Information 00

3.1 Programme 1: Service delivery

3.2 Programme 2: Infrastructure

3.3 Programme 3: Procurement

3.4 Programme 4: Financial sustainability

3.5 Programme 5: Organisation, governance and administration

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4.0 Performance links to financial resources 00

4.1 -Summary of revenue collection
4.2 -Summary expenditure by programme

PA R T4.3 -Capital investment, maintenance and asset management plan

GOVERNANCE01. Introduction 00

02. Portfolio committees 00
2.1 Composition of the Parliamentary Portfolio Committee
2.2 Portfolio Committee on Telecommunication and Postal

C Services Engagements with SITA
03. Executive Authority 00

4.0 Accounting Authority 00

4.1 -The SITA Board of Directors

4.2 -The role of the Board

4.3 -Board charter

4.4 -Composition of the Board

4.5 -Board and Board committees

4.6 -Remuneration of Board members

4.7 -Board Profiles

5.0 Internal control 00

6.0 Compliance with laws 00

7.0 Risk Management 00

7.1 Introduction 00

8.0 Fraud and Corruption 00

9.0 Minimising Conflict of Interests 00

10.0 1Code of Conduct 00

11.0 Occupational Health and Safety 00

11.1 -Introduction

11.2 -Establishment of SHE committees

11.3 -Health and safety legal appointments

11.4 -Legal Compliance with Health and Safety

12.0 Company Secretary 00

13.0 Social Responsibility 00

14.0 The Broad-Based Black Economic Empowerment 00

15.0 Audit, Risk and Compliance Committee report 00

15.1 -Introduction

15.2 -Terms of reference of the Audit, Risk and Compliance Committee

15.3 -Audit, Risk and Compliance Committee responsibility

15.4 -The quality of financial information provided

15.5 -The effectiveness of internal control

15.6 -Internal Financial Control

15.7 -The effectiveness of Internal Audit

15.8 -Risk Management

15.9 -Compliance with legal and regulatory provisions

15.10 -Evaluation of the financial statements

6.0

16.0 Social and Ethics Committee report 00

16.1 -Introduction

16.2 -Composition

16.3 -Terms of reference

16.4 -Role of the Social and Ethics Committee

16.5 -Discharge of responsibilities

16.6 -Codes and policies

16.7 -Ethics governance structures PART
16.8 -Institutionalising and reporting
16.9 -Conclusion

HUMAN CAPITAL
MANAGEMENT

D01. Introduction 00
02. Talent Development 00

03. Employee Satisfaction Survey 00

4.0 SITA Employee Wellness 00

4.1.1 Proactive Wellness Programme 00

4.1.2 Heritage Day Programme 00

4.1.3 Women’s Month Programme 00

5.0 Human Capital Management oversight statistics 00

5.1 -Employment Equity Statistics for Occupational Level

5.2 -Personnel Cost

5.3 -Staff Turnover

5.4 -Training Cost
5.5
5.5.1

PART5.5.2
-Employee and Labour Relations

-Disciplinary Matters

-Loss Control

FINANCIAL
INFORMATION

E01. Certificate by Company Secretary 00

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PART GENERAL
INFORMATION
A

State Information Annual Report 2018/19 7
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1. PUBLIC ENTITY’S
GENERAL INFORMATION

REGISTERED NAME : State Information

Technology Agency

(SITA) SOC Ltd

REGISTRATION NUMBER : 1999/001899/30

PHYSICAL ADDRESS : 459 Tsitsa Street

Erasmuskloof

Pretoria

0048

South Africa

POSTAL ADDRESS : PO Box 26100
Monument Park
0105
South Africa




TELEPHONE NUMBER : +27 12 482 3000

FAX NUMBER : +27 12 367 5151

EMAIL ADDRESS : [email protected]

WEBSITE ADDRESS : www.sita.co.za

EXTERNAL AUDITORS : Auditor-General of

South Africa

BANKERS : Standard Bank of South

Africa PO Box 6232

Marshalltown

Gauteng, 2107

COMPANY SECRETARY: Ms Shirley Kgope

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2. LIST OF
ABBREVIATIONS/
ACRONYMS

ABIS Automated Biometric Identification System MTSF Medium-Term Strategic Framework
AFS Annual Financial Statements NATED National Accredited Technical Education Diploma
AG Auditor-General of South Africa NC(V) National Certificates (Vocational)
APP Annual Performance Plan NDP National Development Plan
ARCC Audit, Risk and Compliance Committee NT National Treasury
BBBEE broad-based black economic empowerment PFMA Public Finance Management Act
CAPEX Capital Expenditure PRC Presidential Review Committee
CAS Crime Administration System SAPS South African Police Services
CEO Chief Executive Officer SAMHS South African Military Health Services
CSIR Council for Scientific and Industrial Research SANDF South African National Defence Force
DBE Department of Basic Education SCM Supply Chain Management
DOD Department of Defence SCOPA Standing Committee on Public Accounts
DHA Department of Home Affairs SITA State Information Technology Agency SOC Ltd
DCDT Department of Communication and Digital SLA Service Level Agreement
Technologies SMME Small, Medium and Micro Enterprise
DPSA Department of Public Service and Administration SOC State-Owned Company
EE Employment Equity SOE State-Owned Entity
Exco Executive Committee WCG Western Cape Government
FDA Forensic Data Analysis
GETC General Education and Training Certificate
HANIS Home Affairs National Identification System
HCM Human Capital Management
ICT information and communications technology
IFMS Integrated Financial Management System
MIOS Minimum Interoperability Standards
MLP Management Letter Point

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4. FOREWORD BY
THE CHAIRMAN

With the Fourth Industrial Revolution (4IR) upon us, we
were as an organization and a country in an advantageous
position to engage with and preside over the disruptions
associated with these massive changes.
On the policy front there were positive indications that the
government and the country were bracing for the envisaged
impact brought by rapidly unfolding technological changes.

Announcements on the institutional rearrangements
including the consolidation of the Information
Communication Technology sector, the establishment of
the Presidential Advisory Review Commission on the Fourth
Industrial Revolution and other policy changes to mobilize
the country for the digital society underpinned by the
knowledge economy, were instrumental in the tone and
early hallmarks of the Presidency of Mr. Cyril Ramaphosa.

The President’s vision on the role and impact of the
ICT was summed in both his successive State of the
Nation Addresses (SONA) in 2018 and 2019 respectively,
unequivocally committing his administration to the
technology revolution in fulfilment of the ideals laid in the
National Development Plan.
The clarion calls contained in the SONA coincided with
SITA’s digital transformation journey that the Agency had
embarked upon.

It has been 21 years since the report of the Presidential
Review Committee (PRC) which became the genesis for a
centralized information and technology systems agency
for government and that led to the birth of the State
Information Technology Agency (SITA).

More than 20 years later, as the Agency looked back to
reflect on the progress made, as well as focus on the future
technological vista brought by the advent of the fourth
industrial revolution, there was both a general contentment
on the milestones attained, and an acknowledgement of the
challenges that were still lying ahead.
In the past year the Agency has been hard at work to
reorganize itself to embed the new business model.

State Information Annual Report 2018/19 11
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In that period, the journey has been one of transformation,
to take the Agency from its primordial beginnings and make
it a significant player and thought leader in the adaptation
and adoption of ICT to improve service delivery to the
public through the provision of ICT, information systems
and related services for the benefit and convenience of the
citizens.

Among others, the recommendations of the Presidential More than 20 years later, as the Agency looked back to reflect on
Review Committee which shaped the SITA transformation the progress made, as well as focus on the future technological
journey included redefining clear roles, responsibilities vista brought by the advent of the fourth industrial revolution,
and coordination for the IT in the public sector, ensuring there was both a general contentment on the milestones attained,
the compatibility of systems and architecture, eliminating and an acknowledgement of the challenges that were still lying
wastages of resources and promoting IT knowledge ahead.
and skills in the public sector and the nation at large
and making ICT responsive to business processes of In the past year the Agency has been hard at work to reorganize
government. itself to embed the new business model. At the heart of the new
business development plan was the organization of SITA into a
Among others, the recommendations of the Presidential value-adding consulting machinery that will have a line of sight
Review Committee which shaped the SITA transformation over the business requirements of the clients and be able to offer
journey included redefining clear roles, responsibilities tailor-made business solutions and thus fulfilling the aspiration
and coordination for the IT in the public sector, ensuring of “making ICT responsive to business processes of government.”
the compatibility of systems and architecture, eliminating
wastages of resources and promoting IT knowledge Executive, senior and other core technical roles were replenished,
and skills in the public sector and the nation at large to build the requisite strategic and technical capacity to drive
and making ICT responsive to business processes of organizational redesign and ready the Agency, the government
government. and the country for the realities of the fourth industrial
revolution, expected to be the main disruptor to the world of
work, hence the President’s assertion for the creation of the
“workforce of the future.”

Mr ZD Nomvete
Chairman of the Board of Directors
State Information Technology Agency SOC Ltd

12 Annual Report 2018/19 State Information
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06

STRATEGIC
OVERVIEW

State Information Annual Report 2018/19 13
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14 Annual Report 2018/19 State Information
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7. VISION

THE VISION OF SITA IS AS FOLLOWS:

“TO BE THE LEADING INFORMATION AND
COMMUNICATIONS TECHNOLOGY (ICT)
AGENCY IN PUBLIC SERVICE DELIVERY”.

8. MISSION

THE MISSION OF SITA IS AS FOLLOWS:

“TO RENDER AN EFFICIENT AND VALUE-ADDED
ICT SERVICE TO THE PUBLIC SECTOR IN A SE-
CURE, COST-EFFECTIVE AND INTEGRATED MAN-
NER, CONTRIBUTING TO SERVICE DELIVERY AND
CITIZEN CONVENIENCE”.

State Information Annual Report 2018/19 15
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9. VALUES

SERVICE EXCELLENCE TRANSPARENCY

Strive to attain internationally recognised Always ensure transparency in everything
standards of service quality, and maintain we do in order to build trust and confidence
continuous improvement in service delivery. with all our stakeholders..

INTEGRITY FAIRNESS

Conduct our business with integrity at all times Treat all our partners, our suppliers and our
to inculcate a culture of honesty, respect and employees (all stakeholders) with fairness
accountability among all our employees. at all times.

PRUDENCE INNOVATION

Exercise prudence and economy in running Pursue innovation by demonstrating thought
the business of SITA and in pursuance of its leadership and proactive behaviour on the
goals and the objectives of government. use of communication and information tech-
nology to enhance public service delivery.

16 Annual Report 2018/19 State Information
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PART PERFOMANCE
INFORMATION
B

State Information Annual Report 2018/19 17
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18 Annual Report 2018/19 State Information
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+33.6 % +13%

Sales Overall Buyer Increase

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gravida aliquam felis, at efficitur gravida aliquam felis, at efficitur
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quat vestibulum augue in aliquet. quat vestibulum augue in aliquet.
Aliquam in ferme. Aliquam in ferme.

SUCCESS. +10.7
BUSINESS.
RELIABLE. Duis vulputate rhoncus lorem.
Nunc gravida aliquam felis,
GLOBAL REVIEW
LOVED AND at efficitur enim sodales quis.
EXPERIENCED BY Aliquam consequat vestibulum
CUSTOMERS SINCE
EARLY 2015. augue in aliquet.

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sinimusdae dus volo in repe

moditi alique rerspitatur
andande stiunt, officiam et ea.

State Information Annual Report 2018/19 19
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2019COMPOSITION

OF THE
PARLIAMENTARY
PORTFOLIO

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dandist aut veri susandit reserupta
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enda simoles ciatum exereruptur, dolectae. Sanimil luption raesecer-
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ecatur, con culparciet ut esequid as dendic tem faccus volupta se- soluptatet aborerum, id eost, ut
emquis adistem fugia es sitature rum aliquo quia volorro blani quia moditiunto volent eni con natecto
quo maximol oreperupta quibusa non porro volorporro eum earum ea sus dolor mint enditaque nobis
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qui dus, impor a ium qui dolo- undelique posandis int quis vent bus quiam quam, ullaut ute molo
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tem doluptatur aliquae nonseri sum, sum vent modia nonsequis rae volorit atectiae laboriberior mo
busamus as mollan. utas mo officiis commolo es pe qu- cusam lit, omnisci enimpore pedi
ostio excepro minctae qui consedi blati voluptam eturestetur suntium
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excearcit officae rchilis et maiore- re quibus dunt estestia quas voles dita quunt doloreium doluption.

20 Annual Report 2018/19 State Information
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DATA ANALYSIS ONE DATA ANALYSIS TWO

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iliquasped ped essi asseditae itas ium ut laborepuda dolo- iliquasped ped essi asseditae itas ium ut laborepuda dolo-
re dolum sund iliquasped andandi odia doluptat. re dolum sund iliquasped andandi odia doluptat.

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iliquasped ped essi asseditae itas ium ut laborepuda dolo- iliquasped ped essi asseditae itas ium ut laborepuda dolo-
re dolum sund iliquasped andandi odia doluptat. re dolum sund iliquasped andandi odia doluptat.

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iliquasped ped essi asseditae itas ium ut laborepuda dolo- iliquasped ped essi asseditae itas ium ut laborepuda dolo-
re dolum sund iliquasped andandi odia doluptat. re dolum sund iliquasped andandi odia doluptat.

State Information Annual Report 2018/19 21
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EXAMPLES
OF GRAPH
DESIGNS

CHART CHART
ONE TWO

+27.3 % +14.8 %

Data One Data One

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enda simoles ciatum exereruptur, enda simoles ciatum exereruptur,
sinvel. sinvel.

Data Two Data Two

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enda simoles ciatum exereruptur, enda simoles ciatum exereruptur,
sinvel. sinvel.

Data Three Data Three

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enda simoles ciatum exereruptur, enda simoles ciatum exereruptur,
sinvel. sinvel.

22 Annual Report 2018/19 State Information
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2019SOUTH AFRICA

4TH INDUSTRIAL REVOLUTION
GAME CHANGERS

North & South America Europe

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simoles ciatum exereruptur, sinvel. simoles ciatum exereruptur, sinvel.

Seattle
2016 +7%

Asia and Pacific Middle East Los Angeles
2016 +7%
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simoles ciatum exereruptur, sinvel. simoles ciatum exereruptur, sinvel.

Africa

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simoles ciatum exereruptur, sinvel.

Santiago de Chile
2016 +7%

State Information Annual Report 2018/19 23
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Optatur rernatus ad etur as ent ut quis quatem fugitinctur?

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rio. Agnisci ligenih iliquasped essi ciatum exereruptur, sinvellab ipsam oreperupta quibusa ecaecto cus,
puda dolore dolum sundandandi eum ra volupta ecatur, con culpar- comnis etum volori qui dus, impor
odia doluptat. Verio consed ut ciet ut esequid emquis adistem a ium qui dolorit estiuntis eum nu.

Moscow
2016 +1%

London
2016 +1%

Berlin
2016 +1%

Madrid
2016 +7%

Miami
2016 +1%

Dubai
2016 +7%

Rio de Janeiro South Africa
2016 +1% 2016 +1%

Sao Paulo
2016 +1%

24 Annual Report 2018/19 State Information
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WE ARE THE
RESULT OF OUR
HARD WORK.

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etur as ent ut quis quatem fugitinctur? etur as ent ut quis quatem fugitinctur?

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sundandandi odia doluptat. sundandandi odia doluptat.

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simoles ciatum exereruptur, sinvellab ipsam simoles ciatum exereruptur, sinvellab ipsam
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etum volori qui dus, impor a ium qui dolorit etum volori qui dus, impor a ium qui dolorit
estiuntis eum num dolectur, tem doluptatur estiuntis eum num dolectur, tem doluptatur
aliquae. Quia que digendi doluptatae aliquae. Quia que digendi doluptatae
dolorio. Agnisci ligenih iliquasped essi dolorio. Agnisci ligenih iliquasped essi
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facepuda nobitas ium ut laborepuda dolore. facepuda nobitas ium ut laborepuda dolore

State Information Annual Report 2018/19 25
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HARD FACTS

DATA ANALYSIS ONE DATA ANALYSIS TWO

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doluptatae dolorio. Agnisci ligenih dolorio. Agnisci doluptatae dolorio. Agnisci ligenih dolorio. Agnisci
ligenih iliquas iliquasped ped essi. ligenih iliquas iliquasped ped essi.

Headline here... 81 % 31 % 59 %
Headline here... 88 %
Headline here... 96 %
Headline here... 72 %

Data Analysis One Data Analysis Two

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ligenih dolorio. Agnisci ligenih iliquas iliquasped ped essi. ligenih dolorio. Agnisci ligenih iliquas iliquasped ped essi.

26 Annual Report 2018/19 State Information
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EXAMPLE OF 2016 2017 +10.7
FINANCIALS
$22,000 $22,000 Duis vulputate rhoncus lorem.
Overview Financial Situation $22,000 $22,000 Nunc gravida aliquam felis,
$522,000 $522,000
1. Start-up Expenses to Fund at efficitur enim sodales quis.
2. Start-up Assets to Fund $22,000 $22,000 Aliquam consequat vestibulum
3. Total Funding Required $22,000 $22,000
$22,000 $22,000 augue in aliquet.
Assets $22,000 $22,000
$22,000 $22,000 Ita nihicilibus ut perio tem
6. Non-cash Assets from Start-up $522,000 $522,000 sinimusdae dus volo in repe
7. Cash Requirements from Start-up
8. Additional Cash Raised $22,000 $22,000 moditi alique rerspitatur
9. Liabilities and Capital $22,000 $22,000 andande stiunt, officiam et ea.
10. Cash Balance on Starting Date $522,000 $522,000
11. Total Assets
$22,000 $22,000
Liabilities $22,000 $22,000
$22,000 $22,000
14. Long-term Liabilites $522,000 $522,000
15. Accounts Payable (Outstanding Bills)
16. Total Liabilities

Capital Structure

19. Owner
20. Additional Investment Requirement
21. Total Planned Investmenet
21. Total Expended

State Information Annual Report 2018/19 27
Technology Agency

2019WHEN A MARKET

GROWS UP

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Optatur rernatus ad etur as ent ut quis quatem fugitinctur?

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rio. Agnisci ligenih iliquasped essi quos est as quiam et atatiae aut aut aut et fugiatus excepera
puda dolore dolum sundandandi pliquaernate vit optatio nsequas que remporem fugiate mpost, utas
odia doluptat. asitatiume experum exerfer epu- anderch icilicatus.
dandist aut veri susandit reserupta
Verio consed ut aut as vendam, tem doloratiae volenihictur mi. Nonem. Tem fugiate dolorem res
enda simoles ciatum exereruptur, dolectae. Sanimil luption raesecer-
sinvellab ipsam eum ra volupta Sequo te labo. Natque volupta eat- spic tet eatiusae id molores earum
ecatur, con culparciet ut esequid as dendic tem faccus volupta se- soluptatet aborerum, id eost, ut
emquis adistem fugia es sitature rum aliquo quia volorro blani quia moditiunto volent eni con natecto
quo maximol oreperupta quibusa non porro volorporro eum earum ea sus dolor mint enditaque nobis
ecaecto cus, comnis etum volori nossita sperior rorporit faccae nem etustis dolor seque vellit unti-
qui dus, impor a ium qui dolo- undelique posandis int quis vent beribus quiam quam, ullaut ute
rit estiuntis eum num dolectur, unturessit fugiatiatati tem etur molo culparcia consequam andant
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adi quatem es eum nat. Ibus cus volumquis nis audi blaborrovid ut
excearcit officae rchilis et maiore- re quibus dunt estestia quas voles

Erasmuskloof (Head Office)
T +27 12 482 3000
F +27 367 5151
W http://www.sita.co.za

Postal Address
PO Box 26100
Monument Park
Pretoria
0105

Physical Address
459 Tsitsa Street
Erasmuskloof
Pretoria
0048

4IR IS HERE