Cabinet has approved a request from the board at the embattled State IT Agency (SITA) to step down, pending an investigation into the state's IT procurement arm by the Special Investigating Unit (SIU).
Every tender SITA has issued in the past nine years is under investigation by the SIU to determine whether any of its staff were involved in unlawful conduct, or wasted the entity's money.
The probe, announced two months ago, was prompted by various earlier investigations, says the Department of Public Service and Administration (DPSA).
One of the most in-depth probes into SITA's procurement practices was carried out in 2009, and resulted in a damning report by Henderson Solutions. The risk assessment report revealed large-scale irregularities within the organisation and its procurement practices, involving several of the agency's employees and other high-profile figures, including senior members of the South African Police Service.
The 613-page risk assessment report reveals a seemingly total breakdown of the internal control environment, and left questions about how such widespread illegal practices could have escaped SITA management and its internal audit committee. Then public service and administration minister Richard Baloyi did not publicly release the report and was subsequently accused of burying the findings.
However, Baloyi did announce a turnaround plan for SITA in the months following the release of the report. Despite claims later that the turnaround had been a success, the DPSA never revealed any tangible changes, or improvements that resulted from the strategy.
In 2010, the same year that the agency implemented a turnaround plan, the auditor-general found that SITA did not have adequate policies, procedures and systems in place to ensure compliance with laws and regulations.
SITA was established in 1999 to consolidate and coordinate the state's information technology resources to achieve cost savings through scale, increase delivery capabilities and enhance interoperability.
New faces
In a statement released yesterday, after Cabinet's regular meeting, the state said Cabinet approved a request by the members of the current SITA board to recuse themselves to allow investigations into the operation of the entity by SIU to take place. The members who have stepped down exclude the CEO, who is seconded to the board by virtue of being an executive.
Cabinet adds that it made several appointments in a bid to make sure the entity continues to operate with a fully constituted board. Former Business Unity SA CEO Jerry Vilakazi has been appointed as chairman, replacing acting chairperson Febe Potgieter-Gqubule, with advocate Beatrice Matlejoane as his alternate.
Other people appointed to the board include businesswoman Anna Mokgokong, who was reportedly the first woman to be appointed onto Shoprite's board. Zukile Nomvete and Khuseni Dlamini were appointed as alternates, while N Mngomezulu is National Treasury's representative.
'Serious maladministration'
In September, the SIU was mandated to probe the agency through a proclamation by president Jacob Zuma in the Government Gazette. The Gazette states that the probe will examine unlawful or improper conduct by anyone that could have caused harm to SITA.
The investigation covers the period between October 2003 and September this year. The terms of reference state the SIU will look into any "serious maladministration" in connection with SITA's affairs.
As the board is the accounting officer, which signs off on tenders, it has asked to be excused, says DPSA spokesman Ndivhuwo wa ha Mabaya.
Wa ha Mabaya says the investigation builds on previous probes into the agency, but its scope has been widened. He adds that the SIU has been asked to complete the process as quickly as possible to bring stability to the agency.
The probe will investigate whether there was "improper or unlawful conduct by members of the board, directors or employees" and "unlawful appropriation or expenditure of public money or property" as well as "unlawful, irregular or unapproved acquisitive act, transaction, measure or practice having a bearing on state property".
The terms of reference will also include a probe into "unlawful or improper conduct by any person". In addition, the schedule includes any failure to collect money due to SITA.
SITA spokeswomen Anthea Summers refused to comment on the probe, referring ITWeb to the DPSA.
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