The board of the embattled State IT Agency (SITA) has been directed to finalise the process of recommending suitable candidates for the acting MD position as a matter of urgency.
This, after it “erroneously issued communication regarding the appointment of an acting MD to assume duties on 5 February 2025, without ministerial approval, as is required by law”.
So said the Department of Communications and Digital Technologies (DCDT) in a statement issued on Friday.
SITA is an entity of the DCDT that is charged with provisioning and procuring ICT goods and services on behalf of government departments and public entities. The department is headed by minister Solly Malatsi, under the Government of National Unity.
In the statement, the DCDT notes the minister met with the SITA board on Friday, after it announced the appointment of a new acting MD.
According to the ministry, the minister expressed concern over the board’s decision to unilaterally appoint an acting MD in violation of SITA’s Memorandum of Incorporation (MOI), Clause 13.7.1, which states: “The board may in writing appoint any senior employee of the company whom it deems fit and provided that it is in accordance with SITA policies, and the minister shall approve the appointment of any person to act as CEO (MD).”
As a result, the department states the board acknowledged it had acted outside its authority and agreed to retract its earlier communication to SITA staff. “To this end, the minister has accepted the board’s apology.”
In addition to instructing the board to recommend suitable candidates for the acting MD role to enable a smooth transition, Malatsi directed it to respond to his earlier query regarding the shortlisting process.
“Addressing this outstanding matter will enable the minister to make a well-informed decision on the appointment, ensuring compliance with the SITA MOI and enhancing leadership stability.”
In its statement, the DCDT does not divulge the name of the acting MD appointed by the board.
However, responding to queries from ITWeb, Tlali Tlali, SITA head of corporate affairs, said Ntutule Tshenye was announced as the acting MD (AMD) designate in the board’s communication to staff.
“These were the measures the board was putting in place to provide for a seamless transition and business continuity when the contract term of the current AMD Simphiwe Dzengwa comes to an end. The announcement indicated that he [Tshenye] would take over the role of AMD with effect from 5 February 2025.
“On Friday, 17 January 2025, the board met with the minister to discuss, among other things, the announcement the board had made. During that meeting, the board apologised to the minister for prematurely announcing the AMD designate without completing the consultation process with the minister.”
Leadership instability at the government IT procurement agency is among the critical issues that plague SITA, and forms part of the investigation being conducted by the Public Service Commission into the entity’s affairs.
Over the years, the agency has had less than three executive heads stay the duration of their employment term, with many leaving within three months, to a little over a year.
Former SITA boss Dr Bongani Mabaso was the agency’s 22nd MD and its first permanent MD following the resignation of Dr Setumo Mohapi in March 2019. Mabaso’s exit from the embattled IT agency marked another entity under the DCDT portfolio without a permanent head at the helm.
Following Mabaso’s exit in December 2023, the board placed national regional consulting services executive Tshenye as the agency’s acting MD. In February 2024, SITA confirmed the appointment of Dzengwa to the role in an acting capacity.
At the time, the agency said his appointment is “effective from 1 February 2024 until the recruitment and appointment process of a permanent managing director has been concluded”.
According to Tlali, Dzengwa still remains in the acting MD position.
Last year, ITWeb reported that SITA was embroiled in another controversy, over the legitimacy of the appointment of the acting MD (Dzengwa) and chief procurement officer.
This, after attorneys hired by SITA − Mkhabela Huntley Attorneys − to evaluate matters arising from the appointment of two executives, made damning recommendations regarding the matter.
It is alleged the acting MD did not go through the mandatory security vetting before the appointment. It is also claimed that within a day of appointment of the acting MD, the acting CPO was irregularly appointed.
The appointment of the acting MD, in accordance with the SITA MOI, is believed to be invalid because only SITA's executive managers can serve as managing directors.
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