An independent investigation into the State Information Technology Agency has uncovered systemic failures in financial controls, contract management and record-keeping, with over R2-billion in irregular expenditure identified across four years.
The Public Service Commission investigation, which examined SITA’s operations between 2020 and 2025, paints a picture of an agency plagued by abandoned tenders, contract delays and weak accountability that has hampered government service delivery.
Minister of Communications and Digital Technologies Solly Malatsi presented the findings at a media briefing in Pretoria on Monday, describing the impact of SITA’s failures on government departments trying to serve the public.
“Departments including the South African Police Service, Home Affairs and Justice have, over time, sought exemptions to meet their operational needs outside SITA processes,” Malatsi said.
The delays were not merely internal administrative failures, he added, but affected the ability of government departments to obtain the Information and Communications Technology systems and services they need.
Irregular spending tops R2-billion
The Auditor-General flagged irregular expenditure of R819,7-million in 2020/21, R285,5-million in 2021/22, R452-million in 2022/23 and R514,171-million in 2024/25.
The investigation found insufficient evidence that consequence management was consistently applied to officials responsible for the irregular spending.
One in four tenders abandoned
Of 1 443 concluded procurement matters reviewed, 278 were withdrawn, 52 were cancelled and 34 were closed with no recorded reason. This represents an attrition rate of 25,2%.
A further 529 procurement matters remained open in the pipeline, with the oldest sitting in adjudication and contracting for an average of more than 400 days. Some 203 procurement matters took longer than a year from work order to final outcome.
The report found that SITA did not have a reliable, integrated and automated central contract register for its own contracts. Contract expiry dates were tracked manually, and value for money could not always be demonstrated.
Corruption risks in recruitment
The investigation identified corruption exposure in human resources processes arising from broad discretion, weak controls, incomplete audit trails, retrospective approvals, weak vetting and instances where contract extensions bypassed competitive processes.
Serious concerns were raised about Board records, including missing meeting packs, incomplete resolutions and records dependent on individual custodians. As a result, SITA was often unable to demonstrate clearly how major decisions were taken, when they were taken and by whom.
Seven-point reform plan
The minister said the Board and management now have a direct mandate to stabilise the organisation, restore basic controls, clear procurement blockages and rebuild trust through evidence, not promises.
To ensure the report becomes a reform instrument rather than another unimplemented document, the minister and PSC agreed on immediate actions with firm deadlines.
The SITA Board must submit a Board-approved stabilisation and recovery plan within 30 business days, along with a verified procurement backlog baseline benchmarked against the investigation data.
Within 60 business days, SITA must submit a governance reform plan, including measures to strengthen Board administration, records management, delegations, procurement controls, contract management and executive accountability.
Quarterly governance-health reports must be provided to the minister, tracking procurement turnaround times, backlog reduction, contract-register integrity, implementation of audit findings and consequence-management matters.
SITA must also establish a consolidated consequence-management framework. Every irregular expenditure item, disciplinary matter and prior investigation finding must be registered, allocated to an accountable owner, tracked, and closed only with evidence. Criminal or high-value matters must be escalated to the appropriate authorities without delay.
Reforms may not be closed on management’s assurance alone but must be independently validated and reported to the minister.
The Department of Communications and Digital Technologies is leading a formal review of SITA’s mandate and operating model, working with the Department of Public Service and Administration, National Treasury and the Presidency. The review will consider whether legislative, policy or operational reforms are required.
The minister and PSC noted that the report does not find that every transaction, appointment or decision at SITA was irregular. Rather, it identifies systemic weaknesses that created an environment in which poor decisions, delays, weak accountability and corruption risks could take root.
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