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Watchdog to conduct wide-ranging probe into SITA affairs

Simnikiwe Mzekandaba
By Simnikiwe Mzekandaba, IT in government editor
Johannesburg, 12 Dec 2024
Communications and digital technologies minister Solly Malatsi.
Communications and digital technologies minister Solly Malatsi.

The Public Service Commission (PSC) will formally investigate a range of “critical issues” affecting the State Information Technology Agency (SITA).

The move was announced by Department of Communications and Digital Technologies (DCDT) head Solly Malatsi.

The minister’s decision comes as the embattled government agency continues to face mounting challenges, which he says impact SITA’s ability to deliver on its critical mandate.

The PSC, an independent body, investigates matters related to public administration, including looking into the conduct of public officials and institutions, to ensure compliance with the Constitution and public service regulations.

Furthermore, it examines issues such as corruption, inefficiencies and misconduct within the public sector. Through its investigations, the PSC identifies areas needing improvement, recommends corrective actions and reports its findings to Parliament.

Problem child

An entity of the communications department, SITA sits as a central pillar of government's IT procurement.

It is also responsible for developing, operating and/or maintaining ICT services consumed by government departments.

In a DCDT statement, Malatsi is candid about SITA’s challenges, listing governance concerns, irregular procurement practices, operational inefficiencies and an alarming deterioration in service delivery.

If left unaddressed, the issues pose a threat to the agency’s mission and its ability to deliver value to South Africans, says the communications minister.

The PSC will investigate alleged governance lapses, leadership instability and infighting, mismanagement, and the absence of accountability in decision-making. It will probe allegations of procurement irregularities, corruption and the approval of irregular contracts. It will also examine the high turnover in leadership positions, which led to organisational instability.

The investigation will also focus on claims of deteriorating professional standards within SITA, and the root causes of operational inefficiencies, says Malatsi.

“Holding SITA accountable and enhancing good governance is critical to ensuring the agency can deliver on its mandate. This process will not only restore accountability and trust, but also set the agency on a trajectory toward fulfilling its role as a cornerstone of South Africa’s digital transformation,” notes Malatsi.

Several client departments have sought exemptions from using SITA services due to inefficiencies. (Photograph by Lesley Moyo)
Several client departments have sought exemptions from using SITA services due to inefficiencies. (Photograph by Lesley Moyo)

Over the course of its more than 20-year history, SITA has been constantly plagued by challenges.

These include allegations of corruption and mismanagement of procurement processes, and a client base that is increasingly frustrated with the poor level of service delivery. It was also flagged by the auditor-general for irregular and wasteful expenditure.

The agency’s processes have long been criticised, with predecessors describing large-scale corruption uncovered in supply chain management and human capital management as destroying the soul and essence of SITA.

SITA is also no stranger to leadership instability, with 23 CEOs/MDs – permanent and acting – at the helm during the entity’s lifetime.

ITWeb yesterday reported the entity is embroiled in another leadership squabble, after Mkhabela Huntley Attorneys madedamning recommendations regarding the appointment of the acting MD and chief procurement officer.

The minister’s pronouncement of the PSC investigation followed an oversight visit, which included himself and the Parliamentary Committee on Communications and Digital Technologies, to the SITA offices in Pretoria yesterday.

According to the minister, service delivery failure is one of the notable issues brought to the fore.

This, as numerous client departments, including the ministries of police, home affairs and justice, have sought exemptions from using SITA services due to inefficiencies, reflecting the agency’s inability to meet expectations and undermining trust in its capabilities.

SITA and the Department of Home Affairs have been at loggerheads for years, with the latter’s offline status blamed on the agency.

Turning to governance challenges, Malatsi notes allegations of corruption, maladministration and interference at board level have raised red flags about accountability and transparency within SITA.

On the issue of leadership instability, he says the high turnover at the executive and senior management levels left critical positions in an acting capacity and divisions at the executive committee level, leading to organisational instability and poor decision-making.

Other issues include:

Irregular procurement practices: The agency’s alleged failure to adhere to proper procurement processes resulted in contracts being irregularly awarded, tarnishing its reputation and raising legal concerns.

Deteriorating audit outcomes: SITA’s inability to submit its 2023/24 annual report for tabling highlights a worrying decline in financial and operational accountability.

Missed performance targets: Consistently underwhelming results against predetermined objectives have further eroded confidence in the agency.

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