The investigation by the Particular Investigations Unit (SIU) into the procurement processes on the State Data Expertise Company (SITA) saved the entity R111 million and recovered R24.6m.
The corruption-busting unit referred 4 legal instances to the Nationwide Prosecution Authority, 22 disciplinary instances to SITA and one administrative motion and a contract valued at R265m was put aside.
There was one case of litigation that was pursued following the investigations.
This was revealed by SIU head Andy Mothibi when he and his workforce briefed the Standing Committee on Public Accounts (Scopa) on Wednesday on the investigation they performed at SITA and the SABC.
“The main focus of the investigation has been on procurement irregularities that occurred at SABC and SITA,” Mothibi stated.
Scopa held a second day of hearings on Wednesday into the affairs of the SABC and SITA, following one other with the Auditor-Common on Tuesday with an intention to name Communications and Digital Applied sciences Minister Solly Malatsi sooner or later.
Mothibi stated the SIU was approved in 2014 and 2015 to analyze the appointment of IBM SA to produce works, items and/or providers when it comes to an Built-in Provide Settlement in addition to irregular, unauthorized and fruitless expenditure incurred within the awarding of a contract to service supplier iFirm Consulting.
He stated the SIU discovered that the contracts have been concluded irregularly.
SIU chief working officer, Leonard Lekgetho, informed Scopa that IBM was appointed at a price of R888m as a single supply service supplier with out prior permission of the Nationwide Treasury to deviate from a aggressive procurement course of.
“Whereas the SITA board permitted the Built-in Provide Settlement for R888 399 393.35 (VAT inclusive), phrases of the settlement itself acknowledged that the contract value to quantity to R854 365 829.50 (excluding VAT).
“Nonetheless, if 14% VAT is added to this quantity, the whole exceed the quantity permitted by the board by R85 577 652.28,” Lekgetho stated.
He additionally stated R774 676 244 in funds was incurred as irregular expenditure.
Lekgetho stated it was discovered that iFirm was appointed and not using a aggressive bidding course of being adopted.
“iFirm submitted a false tax certificates. That they had no prescribed safety clearance they usually weren’t registered with Non-public Safety Business Regulating Authority for safety providers they have been offering,” he stated.
Lekgetho stated with the help of SIU, SITA lodged an software within the Gauteng Excessive Court docket to have the contract reviewed and put aside.
The court docket discovered that the settlement concluded was unconstitutional and invalid and the iFirm was ordered to pay the prices of the appliance.
Lekgetho added that the investigation referred 22 issues for disciplinary motion and SIU demanded R24m excellent monies.
He stated the SIU saved R111.3m when the contract was terminated and referred 4 legal referrals and one to the Asset Forfeiture Unit and one for blacklisting.
Responding to questions, Mothibi stated the contract with IBM was presupposed to be an add-on to providers IBM was offering to SITA and “there was clear dependency”.
“It appears IBM actually entrenched themselves. The idea of evergreen had crept in,” he stated.
Lekgetho stated SIU had highlighted the difficulty of monopoly by IBM at SITA on the time.
SITA had apparently maintained that if the contract was cancelled, it could have an effect on authorities providers as a result of it could take 5 years to comply with procurement.
“We ended making this matter to be irregular expenditure.”
He additionally stated disciplinary motion couldn’t be taken towards the CEO, who was on the forefront, as he had left SITA employment.
Mothibi stated: “It’s our view that SITA ought to actually think about to make sure it meets the procurement necessities.”
Scopa chairperson Songezo has raised issues with SITA’s governance and efficiency failures following the two-day hearings.
Zibi stated SITA has for a number of years failed to attain passable audit outcomes or to adequately help varied authorities departments, companies and different public establishments.
This has left them with a excessive variety of vacancies, insufficient IT help, out of date know-how, defective procurement processes and severe cyber safety weaknesses.
“It’s unacceptable that at a time when info know-how is so crucial to monetary controls, governance and operational effectiveness, the only company tasked with supporting authorities is failing so dismally and for thus sustained a interval.
“Speak of modernisation in several areas, such because the police, will stay a pipedream if reliance is positioned solely on the SITA,” Zibi stated. The committee heard that whereas a brand new board has been in place since February 2025, the company nonetheless has crucial unfilled vacancies equivalent to a chief digital officer.
“We’re going to invite the Minister of Communication and Digital Applied sciences to look earlier than the committee to elucidate the steps he’s taking to make sure the SITA recovers to fulfil its constitutional mandate. The SITA’s failures have develop into a severe monetary and nationwide safety threat that shouldn’t be tolerated any longer,” Zibi stated.
mayibongwe.maqhina@inl.co.za
