SITA fights corruption

The Department of Public Service and Administration (DPSA) has instituted several controls to combat corruption and irregular expenditure within the State IT Agency (SITA).

This was revealed by new public service and administration minister Roy Padayachie in response to a Parliamentary question.

Irregular expenditure by SITA in 2009, 2010 and from 1 January 2011 until the latest date for which information is available, amounts to R214 million.

Padayachie said there has been intervention on the matter by the accounting authority (SITA board of directors) in relation to irregular expenditure covering the relevant periods.

“In all identified instances relating to irregular expenditure within the periods indicated, investigations were conducted to determine the circumstances that led to such expenditure being incurred. Where appropriate, disciplinary action was taken, resulting in the dismissal of officials in some instances,” said the minister.

He added that, in cases where the irregular expenditure has been a result of fraudulent and criminal activity, the cases were then reported to the SA Police Services, Special Commercial Crimes Unit, and the Special Investigations Unit.

To prevent such expenditure from reoccurring, the department implemented several controls.

policy has been finalised and formally approved by the board for implementation; a register of all irregular expenditure is now being kept and updated where necessary; and all instances of identified irregular expenditure are investigated on a continual basis by management and internal audit.

The controls also include appropriate sanctions being instituted following investigations in the case of any irregular expenditure.

“To further combat such irregular expenditure practices, the Delegation of Authority Framework is being reviewed for realignment to the new SITA governance model to set authority limits for procurement governance structures at levels commensurate with their responsibilities.

“Such structures are the recommendations committee, the procurement sub-committee of the board, and ultimately, the board,” said Padayachie.

At a Parliamentary portfolio committee meeting last month, SITA COO Khumbudzo Ntshavheni said items of irregular expenditure in the agency's annual report concerned the clean-up of existing contracts and are expected to increase in subsequent years.

SITA received an unqualified audit from the AG for 2010/11.

The COO also said issues of governance identified by the auditor-general in the annual report were addressed by implementing the supply chain management policy and procedures, and ensuring future legislative and regulatory compliance.

President Jacob Zuma last month announced a national executive reshuffle that saw Padayachie becoming the minister of public service and administration.

World Wide Worx MD Arthur Goldstuck previously said Padayachie has been recognised as someone of integrity, and that's what is needed for institutions like SITA that fall within the DPSA portfolio.

“The question is whether he can be ruthless about it. We didn't see ruthlessness at communications.”