THE State Information and Technology Agency (SITA) is under investigation by the Public Protector and the Public Service Commission (PSC).
This takes place as the embattled SITA received yet another disclaimer audit opinion from the Auditor-General Tsakani Maluleke.
This emerged when the Department of the Communications and Digital Technologies briefed the portfolio committee on governance issues at the entity on Wednesday.
Director-general Nonkqubela Jordan-Dyan said a member of the public lodged a complaint with the Public Protector alleging that no proper processes were followed in the appointment of the previous managing director.
The complaint also raised issues around proper processes not being followed in the appointment of the chief procurement officer and a bidding process not followed in appointing a firm of attorneys as the entity’s company secretary.
Jordan-Dyan also said the Public Protector’s investigation was also dealing with the appointment of the former interim board and a ministerial task team.
“The minister has met with the Public Protector and we were given assurance that the work is to conclude quickly and we await the outcome of the investigation,” she said.
Jordan-Dyan also said Minister Solly Malatsi had sought the assistance of the PSC to look into the governance matters at the entity after a whistle-blower brought some issues to his attention.
“The minister has commissioned an investigation of governance matters by the Public Service Commission.”
The PSC’s investigation covers allegations of corruption affecting SITA operations and transgressions in procurement, irregular contracts, and approvals.
The investigation is also looking into the high turnover at executive and senior management level and deterioration of professionalism, which Jordan-Dyan said, impacted the stability in the organisation.
She added that an investigation was under way into the affairs of the KwaZulu-Natal office.
“Staff reported that they were being ill-treated by the provincial manager in the KwaZulu-Natal office. This was corroborated by a staff survey that was undertaken,” she said.
“An investigation is currently under way to determine the facts and what to do with the people under suspension.”
She told MPs on Wednesday that SITA’s audit has been completed and the annual report was tabled on February 6.
“SITA continues to receive a disclaimer. This is the third or fourth year.”
She also said the Auditor-General did not express an opinion on the financial statements due to the inability to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on the financial statements.
Jordan-Dyan said significant findings were identified in the submitted annual financial statements, indicating that the standards of Generally Recognised Accounting Practice were not interpreted and applied properly and consistently when preparing the annual financial statements.
“Management developed an action plan to address prior years’ material audit findings. However, implementation of the action plan was not effectively monitored.”
She also said the A-G found material irregularities related to the payment made for licences that were not utilised.
“SITA has given an opinion but the A-G response is that this matter still stands as material irregularity.”
Jordan-Dyan said the A-G found that there were payment for services that were not delivered.
“SITA claims there was value for money.”
According to Jordan-Dyan, the A-G would be referring the material irregularities to law enforcement agencies.
“We are engaging with them and will ensure we get to bottom of this.”