PSC Probe Uncovers Governance Failures at SITA

The PSC found limited evidence that officials responsible for the irregular expenditure consistently faced consequence management.

An independent investigation by the Public Service Commission (PSC) has uncovered widespread governance, procurement and financial management weaknesses at the State Information Technology Agency (SITA), prompting a series of reforms aimed at restoring accountability and improving the organisation's performance. The investigation, which examined the period from 2020 to 2025, found systemic shortcomings that affected procurement, contract management and oversight, with implications for government service delivery.

Investigation reveals procurement and spending concerns

Presenting the findings in Pretoria, Communications and Digital Technologies Minister Solly Malatsi said the report highlights structural problems that have slowed the delivery of information and communications technology (ICT) services across government.

According to the investigation, the Auditor-General flagged more than R2 billion in irregular expenditure over four audited financial years. This included R819.7 million in 2020/21, R285.5 million in 2021/22, R452 million in 2022/23 and R514.17 million in 2024/25. The PSC found limited evidence that officials responsible for the irregular expenditure consistently faced consequence management.

The report also revealed major procurement inefficiencies. Of 1,443 completed procurement matters reviewed, 278 were withdrawn, 52 cancelled and 34 closed without a recorded reason, resulting in an attrition rate of 25.2 percent.

In addition, 529 procurement matters remained outstanding, with some cases remaining in adjudication and contracting stages for more than 400 days on average. A total of 203 procurement matters took longer than a year to reach completion.

Malatsi said these delays have affected the ability of government departments to obtain essential ICT systems and services, noting that departments such as the South African Police Service, Home Affairs and Justice have sought exemptions from SITA processes to meet operational requirements.

Weak governance and contract management identified

The investigation also found significant shortcomings in SITA's contract management systems. According to the PSC, the agency lacked an integrated and automated central contract register, relying instead on manual tracking of contract expiry dates. This made it difficult to demonstrate value for money and monitor contractual obligations effectively.

The report further identified corruption risks within recruitment and human resource processes due to broad discretionary powers, weak internal controls, incomplete audit trails, retrospective approvals, inadequate vetting procedures and instances where contract extensions bypassed competitive procurement processes.

Governance concerns extended to the Board, where investigators found missing meeting documents, incomplete resolutions and poor record management. The report concluded that SITA was often unable to clearly demonstrate how key decisions were made, when they were taken or who approved them.

Government outlines reform programme

Malatsi said the investigation provides a clear roadmap for reform rather than simply identifying problems.

Among the immediate actions agreed with the PSC, the SITA Board must submit a Board-approved stabilisation and recovery plan within 30 business days, followed by a verified procurement backlog assessment over the same period.

Within 60 business days, the agency must also present a governance reform plan covering board administration, procurement controls, contract management, records management and executive accountability.

The reforms will include quarterly governance reports to the Minister, the establishment of a comprehensive consequence management framework to track irregular expenditure and disciplinary cases, and independent validation of reform progress rather than relying solely on management assurances.

The Department of Communications and Digital Technologies is also undertaking a broader review of SITA's mandate and operating model in collaboration with the Department of Public Service and Administration, National Treasury and the Presidency. The review will examine whether legislative, policy or operational changes are needed to ensure the agency can effectively support South Africa's digital transformation.

The Minister and the PSC emphasised that the investigation does not conclude that every decision or transaction undertaken by SITA was irregular. Instead, it identifies systemic governance weaknesses that created conditions in which poor decision-making, procurement delays, weak accountability and corruption risks were able to develop.

Tags: South Africa, State Information Technology Agency, SITA, Public Service Commission, PSC, Solly Malatsi, Communications and Digital Technologies, Procurement, Governance, Irregular Expenditure, Auditor-General, ICT, Public Administration, Corruption Prevention, Government Reform