PSC report flags over R2bn in irregular spending and governance failures at SITA

What Happened at SITA?

The Minister of Communications and Digital Technologies, Solly Malatsi, and the Public Service Commission (PSC) released a report that looked deep into the State Information Technology Agency (SITA). The investigation covered the years 2020‑2025 and was asked for by the minister in December 2024 to find out why SITA kept running into problems.

Big Money Irregularities

One of the most shocking findings was the amount of irregular spending flagged by the Auditor‑General:

• R819.7 million in 2020/21
• R285.5 million in 2021/22
• R452 million in 2022/23
• R514.171 million in 2024/25

That adds up to more than **R2 billion** over four financial years. The report did not blame any single person, but it showed that the money was not handled properly because of weak rules and checks.

Procurement Problems

The investigators looked at 1,443 procurement cases and found:

• About one in four tenders never resulted in an award.
• 278 tenders were withdrawn, 52 cancelled, and 34 closed without a clear reason.
• 529 cases were still stuck in the pipeline, with some waiting over 400 days.
• 203 matters took longer than a year from the work order to the final outcome.

These delays forced departments like the South African Police Service, Home Affairs, and Justice to look for ways around SITA’s processes just to get the technology they needed.

Weak Governance and Controls

The report also highlighted several systemic weaknesses:

• No reliable, automated register for contracts – expiry dates were tracked by hand.
• Recruitment and HR processes had broad discretion, poor vetting, and sometimes contract extensions that skipped competition.
• Board meetings often lacked proper packs, minutes, or clear records, making it hard to see who decided what and when.
• Consequence management – the follow‑up when rules were broken – was inconsistent or missing.

Why It Matters

SITA is the government’s central ICT engine. When it stalls, public services slow down, budgets get squeezed, and ordinary citizens feel the impact through slower or poorer services.

What Needs to Change?

The PSC and the minister gave SITA a clear roadmap:

1. Submit a board‑approved stabilisation and recovery plan within **30 business days**.
2. Provide a verified procurement backlog baseline within the same 30‑day window.
3. Deliver a governance reform plan within **60 business days**.
4. Produce quarterly governance health reports to the minister.
5. Set up a consolidated consequence‑management framework.
6. Have reforms independently validated.

In addition, the Department of Communications and Digital Technologies, together with Public Service and Administration, National Treasury, and The Presidency, will review SITA’s mandate and operating model to make sure it fits the government’s needs.

Conclusion

The investigation shows that SITA’s troubles are not about a few bad apples but about deep‑rooted governance gaps that allowed money to be misspent, processes to drag, and accountability to slip. By following the concrete steps laid out in the report – fixing procurement, tightening controls, improving board oversight, and applying fair consequences – SITA can become a reliable technology partner for the state. The minister and the PSC promise to monitor progress closely and keep the public updated, aiming to rebuild trust and ensure that public money is used wisely for the benefit of all South Africans.