Pressure is mounting on the State Information Technology Agency (SITA), as a Special Investigating Unit (SIU) probe into suspected maladministration and corruption at the beleaguered entity has been authorised by the president.
The corruption-busting unit will also investigate the Bushbuckridge Local Municipality in Mpumalanga, after president Cyril Ramaphosa signed two proclamations.
The SITA proclamation, published in the Government Gazette, dated 16 May, directs the SIU to investigate claims of procurement irregularities at SITA.
According to the SIU, proclamation 258 of 2025 directs it to investigate allegations of maladministration and corruption at the state’s IT procurement arm.
The SIU’s investigation will focus on the procurement of a turnkey software asset management solution and integrated logistics support services.
“The SIU will assess whether the procurement process adhered to National Treasury guidelines, or if it was tainted by irregularities, lack of transparency, or wasteful expenditure. Additionally, the investigation will examine any unlawful or improper conduct by SITA employees, suppliers, or other entities involved in the contract,” it states.
“The investigation period spans 13 July 2017 to 16 May 2025, including any relevant conduct before or after this timeframe.”
The Bushbuckridge municipality probe has to do with alleged maladministration and unlawful conduct related to a street paving contract for the Lillydale phase one project.
As per investigation guidelines, evidence of criminal conduct uncovered will be referred to the National Prosecuting Authority.
“Under the SIU Act, the SIU is also authorised to initiate a civil action in the High Court or a Special Tribunal in its name to address any wrongdoing identified during its investigation resulting from acts of corruption, fraud, or maladministration.”
The SITA investigation order comes as the agency faces delivery and capacity challenges, as well as scrutiny by the Public Service Commission and Public Protector into governance issues.
SITA is an entity of the Department of Communications and Digital Technologies, under the leadership of minister Solly Malatsi.
It is considered as a central pillar of the state’s IT procurement, acting as the backend office of government ICT. Some of its responsibilities include developing, operating and/or maintaining ICT services consumed by government departments. It was founded to provide services to government departments at a reduced rate.
However, its governance, performance and existence have continuously been called into question, amid delayed tender awards, irregular spending and high staff attrition.
The Department of Home Affairs has expressed interest in severing ties with the agency because of system downtime issues, which it blames on SITA.
Home affairs minister Leon Schreiber previously slammedSITA as an “artificial construct that stands squarely in the way of technological progress, not only at home affairs, but across government”. He blamed SITA for hindering progress across government and dragging on its ambitions to become a modern, digital department.
The South African Police Service, justice and constitutional development and basic education departments have also expressed their frustration in the past.
There is also a political squabble at play centred on SITA’s future, amid a process to gazette proposed amendments to the SITA Act that would give departments the freedom to procure outside of the agency.
Malatsi said such “flexibility can improve public services for all South Africans by ensuring government can respond faster and spend resources more efficiently, something which has been requested by several government departments for some time”.
To do this, departments would need to present a strong and viable business case, within existing public procurement prescripts, at a faster turnaround time and lower cost, according to the minister.
However, the African National Congress (ANC) has expressed concern in Parliament about the ongoing discussions regarding the regulation amendments to decentralise ICT procurement powers from SITA.
In a statement, the ANC study group on communication and digital technology said it stands firmly in support of strengthening SITA and ensuring it remains a key enabler of government efficiency and service delivery through ICT infrastructure and strategic innovation.
“We find it impossible to reconcile the minister’s statements that departments must present a ‘credible business case’ to procure outside of SITA with the idea of enhancing SITA’s business model; these two ideas are fundamentally contradictory and cannot co-exist.
“We recognise the efforts of those promoting a balanced strategy for ICT governance. This strategy would aim not to dismantle SITA but to redefine its mandate and enhance efficiency in its operations.
“The decentralisation of procurement powers to client departments, allowing them to handle their procurements, could result in job losses for almost half of SITA’s 3 200 employees. This situation jeopardises economic transformation and job creation within the ICT sector and could negatively affect progress,” said the ANC study group.
“We support granting government agencies greater autonomy in ICT procurement under specific conditions approved through SITA. This approach offers a balanced solution that aims to strengthen the agency rather than undermine it. Importantly, these initiatives must not compromise SITA’s stability, or its ability to oversee and support its clients.
“When implemented correctly, a balanced approach can improve service delivery, create job opportunities and stimulate local economies by enabling SMME participation in the ICT value chain.”
Amid the controversy, SITA has said it is putting its house in order and actively implementing reforms to restore trust and service excellence.
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