SITA scandals return

The State Information Technology Agency (SITA) is once again having to fight internal fires, as corruption and senior management difficulties attract public service and administration minister Richard Baloyi's attention.

This comes after Baloyi's October commitment to Parliament's Portfolio Committee on Public Service and Administration that government would root out corruption at all levels.

This time, three of the organisation's executive team have been suspended as investigations into tender irregularities and colluding with suppliers prepare to be launched. The revelation is reminiscent of the multiple leadership disgraces the parastatal experienced prior to the reign of former home affairs DG Mavuso Msimang.

This morning, ITWeb was able to confirm that Ramabele Magoma Nthite, shared services executive; Moses Mthimunye, strategic services chief; and Ranti Mahlabana, general manager for human resource services, have been removed from their positions pending the outcome of the investigation.

Just over a year ago, the minister charged two of the three - Nthite and Mthimunye - to form two-thirds of a “tripartite acting CEO team” while the department sought a permanent CEO. The rotating team was to lead the organisation through the execution of a turnaround strategy.

At the time, the joint leadership was mandated with turning the toxic situation around, which came to light when a risk assessment report on SITA's procurement processes uncovered large-scale irregularities and corruption plaguing the organisation. The report was handed to Baloyi in April last year. To date, he has yet to publicly comment on the findings or announce a plan of action, bar the appointment of the three-member CEO team, which was put in place in direct response to the red flags raised by the report.

In a surprise move, Nthite and Mthimunye were pulled from the top rotating position last month and replaced by yet another acting-CEO, Nontobeko Ntsinde. Ntsinde's contract runs for a year; or until the recruitment process for a permanent replacement bears fruit.

Baloyi rationalised Ntsinde's appointment as “the second phase” of his turnaround strategy for the organisation.

“The centre of the three senior officials assigned to lead the agency no longer holds and we had to act urgently, in the interest of the agency, the shareholder and the public,” he explained.

This morning, DPSA spokesperson Dumisani Nkwamba confirmed the suspension late last week of the three executives, as well as the basis for the suspension - allegations of irregularities in tender processes. This is despite the fact that the tripartite management team was meant to lead the charge against corruption within the organisation.

Nkwamba noted that the investigation would most likely be headed by the SITA board; however, a source close to SITA's board reveals the communication between the ministry and the board has left the matter unclear.

Also unknown is whether any contracts or tenders have been placed on hold.

SITA has long been embroiled in corruption allegations, the pinnacle of which has been agency's procurement and tender processes. While industry observers were positive of a successful fight against corruption during Msimang's reign, things deteriorated upon his departure.

Since Msimang's departure, in 2007, the agency has been lost in a constant turnaround of acting CEOs and fraud allegations. Upon taking up his position as minister of the DPSA, Balyoi committed to turning the situation at SITA around.

He has been quoted as saying: “We are also looking at a complete turnaround strategy for SITA. I don't like to use the term 'turnaround', because it often means you end up where you start, but we will fix it.”

But, the strategy seems to have now come full circle, with no end in sight to the ongoing turmoil within government's IT services provider.