National Treasury has published a tender for a forensic investigation into the beleaguered integrated financial management system (IFMS) initiative.
Launched in 2005, the project aimed to secure an integrated solution for national government, incorporating supply chain management, financial management, HR management, payroll, inventory and business intelligence.
It was a joint initiative led by National Treasury in partnership with the Department of Public Service and Administration and the State IT Agency.
Following years of difficulty, government abandoned its desire for a custom-made solution and in 2014 advertised for an off-the-shelf ERP solution. This strategy also failed to deliver the sought-after results.
Last month saw finance minister Malusi Gigaba and National Treasury executives lashed by Parliament's Standing Committee on Public Accounts (Scopa) for the failure of the project which has already cost South Africa R1.2 billion.
The IFMS project has also been touched by the controversy surrounding KPMG. Earlier this month, Scopa issued a statement questioning the company's involvement: "[KPMG's] work in the IFMS project, in which it was paid almost R5 million before delivering on the contract, raises questions about its integrity".
National Treasury's forensic investigation tender specifies a wide scope across what it calls the IFMS 1 and IFMS 2 projects. This encompasses investigation of all payments, including approvals and contract compliance on IFMS 2 to date.
The provider is also asked to investigate and determine if appropriate processes were followed in the termination of IFMS 1 contractual obligations and the "reasonableness" of settlement amounts.
Going further, the investigation is expected to report on whether National Treasury received and is receiving value for money for all payments made to date. As is common, any irregular, unauthorised, fruitless and wasteful expenditure is to be identified.
The contract with Oracle for the off-the-shelf solution is also to be examined and any risks, "gaps" or areas of non-compliance must be identified. The investigation is additionally expected to determine if any relationships and conflicts exist between any National Treasury employees and IFMS 1 and 2 service providers.
The identities of parties involved in non-compliance, both past and current, and their respective roles are to be established to serve as the basis for disciplinary action if required.
Interested parties have until 11am on 13 October to submit their bids on this tender.
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