An independent investigation into the State Information Technology Agency (SITA) by the Public Service Commission (PSC), covering the period 2020 to 2025, has found serious weaknesses in spending controls, contract management and governance.
The findings have prompted a set of reforms aimed at stabilising the organisation and ensuring that SITA is fit for purpose in a modern digital state.
The report found that SITA was flagged for irregular expenditure by the Auditor-General across four audited years. It also found weak accountability for officials responsible for irregular spending, a high number of tenders abandoned or cancelled before completion, and long delays in awarding contracts, slowing down government projects and service delivery.
Speaking during a media briefing on Monday in Pretoria, Minister of Communications and Digital Technologies Solly Malatsi said the delays were not merely internal administrative failures, but affected the ability of government departments to obtain the Information and Communications Technology (ICT) systems and services they need to serve the public.
“Departments including the South African Police Service, Home Affairs and Justice have, over time, sought exemptions to meet their operational needs outside SITA processes,” Malatsi said.
Among the most serious findings are:
- Over R2 billion in irregular expenditure was flagged by the Auditor-General across four audited years: R819.7 million in 2020/21, R285.5 million in 2021/22, R452 million in 2022/23 and R514.171 million in 2024/25. The investigation found insufficient evidence that consequence management was consistently applied in relation to these matters.
- The investigation also found that one in four tenders analysed did not result in an award. Of 1,443 concluded procurement matters reviewed, 278 were withdrawn, 52 were cancelled and 34 were closed with no recorded reason, representing an attrition rate of 25.2%.
- In addition, 529 procurement matters remained open in the pipeline, with the oldest matters sitting in adjudication and contracting for an average of more than 400 days. A total of 203 procurement matters took longer than a year from work order to final outcome.
The report further found that SITA did not have a reliable, integrated and automated central contract register for its own contracts. Contract expiry dates were tracked manually, and value for money could not always be demonstrated.
In recruitment and human resources processes, the investigation identified corruption exposure arising from broad discretion, weak controls, incomplete audit trails, retrospective approvals, weak vetting and instances where contract extensions bypassed competitive processes.
The report also raised serious concerns about Board records, including missing meeting packs, incomplete resolutions and records that were dependent on individual custodians.
As a result, SITA was often unable to demonstrate clearly how major decisions were taken, when they were taken and by whom.
The Minister said the report provided a clear diagnosis, practical reforms and firm deadlines.
“The Board and management now have a direct mandate to stabilise the organisation, restore basic controls, clear procurement blockages and rebuild trust through evidence, not promises,” Malatsi said.
To ensure that the report becomes a reform instrument rather than another unimplemented document, the Minister and the PSC agreed on immediate actions.
- First, the SITA Board must submit a Board-approved stabilisation and recovery plan to the Minister within 30 business days.
- Second, SITA must produce a verified procurement backlog baseline within 30 business days, benchmarked against the investigation data, so that progress can be measured transparently and cannot be overstated.
- Third, SITA must submit a governance reform plan within 60 business days, including measures to strengthen Board administration, records management, delegations, procurement controls, contract management and executive accountability.
- Fourth, SITA must provide quarterly governance-health reports to the Minister, including progress on procurement turnaround times, backlog reduction, contract-register integrity, implementation of audit findings and consequence-management matters.
- Fifth, SITA must establish a consolidated consequence-management framework. Every irregular expenditure item, disciplinary matter and prior investigation finding must be registered, allocated to an accountable owner, tracked, and closed only with evidence. Criminal or high-value matters must be escalated to the appropriate authorities without delay.
- Sixth, reforms may not be closed on management’s assurance alone. Their effectiveness must be independently validated and reported to the Minister.
- Finally, the Department of Communications and Digital Technologies is leading a formal review of SITA’s mandate and operating model, working with the Department of Public Service and Administration, National Treasury and the Presidency.
The review will consider whether legislative, policy or operational reforms are required to support the wider effort to make SITA fit for purpose.
According to the statement from the briefing, the Minister and the PSC emphasised that the report does not find that every transaction, appointment or decision at SITA was irregular.
Rather, it identifies systemic weaknesses that created an environment in which poor decisions, delays, weak accountability and corruption risks could take root. - SAnews.gov.za
