The auditor-general (AG) has welcomed news that the Department of Trade and Industry (DTI) is to investigate alleged tender irregularities at the State IT Agency (SITA).
Responding to reports that trade and industry minister Mandisi Mpahlwa is to convene a high-level investigation into alleged tender irregularities, AG spokesperson Africa Boso says: "Any intervention or action aimed at ensuring good governance and improvement on how taxpayers' monies are used, should be welcomed."
Reports surfaced over the weekend that the minister had been asked to intervene after the AG and internal forensic investigators uncovered irregularities relating to R120 million.
The organisation allegedly overspent by R50 million on government's online Gateway project, originally budgeted for R28 million.
The state agency has also started legal proceedings to recover R5 million from Tedaka Business Consulting in overpayments in respect of setting up a fraud and corruption office within SITA, reports said.
In addition, R43 million more than what was budgeted for was spent on the CabEnet project, newspapers said.
Comment expected tomorrow
The AG report is contained in SITA's 2006 annual report, which has not yet been released publicly. The AG was unable to provide a copy of its report. Boso says SITA would be able to provide this information, as the AG's component is only a part of SITA's annual report.
He says once the figures are audited, this report is sent to SITA, which, in turn, releases it.
SITA spokesman Sifiso Ndlazi says the organisation would comment on the matter tomorrow. The DTI could not be reached for comment.
An ITWeb search for tenders awarded by SITA since inception in 1999 could not find any reference to the tenders in which the irregularities are alleged to have occurred.
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