Minister of Communications and Digital Technologies, Solly Malatsi, has directed the State Information Technology Agency (SITA) to submit a board-approved stabilisation and recovery plan within 30 days, following a Public Service Commission (PSC) investigation that revealed over R2 billion in irregular expenditure and major failures in contract management and governance between 2020 and 2025.

PSC Investigation Reveals Systemic Governance Failures

The PSC’s report found significant weaknesses in SITA’s spending controls, record keeping, and implementation of policies. The agency, which supports more than 100 government departments with critical IT services, was found to have repeatedly failed to implement its own governance protocols, leading to widespread procurement inefficiencies, contract delays, and a pattern of abandoned tenders.

According to the PSC, this environment of weak oversight, high executive turnover, and limited consequence management resulted in over R2 billion in irregular expenditure across four audited years. Accountability for officials responsible for these breaches was found to be inadequate, raising concerns among oversight bodies, including the Standing Committee on Public Accounts (SCOPA).

Ministerial Response And Future Reform

Minister Malatsi, speaking after the report’s release, stated, “SITA is the state’s central ICT engine. When SITA fails, departments wait longer for the systems they need, budgets are placed under pressure, and citizens ultimately experience the consequences through poorer public services.” He also indicated that SITA must submit both a stabilisation plan within 30 days and, within 60 business days, a comprehensive governance reform plan to address procurement, executive accountability, and operational resilience.

The Department of Communications and Digital Technologies, in collaboration with the PSC, National Treasury, and the Presidency, has committed to a formal review of SITA’s mandate and operations. Meanwhile, SITA’s managing director, Magatho Mello, asserted the agency’s relevance and ongoing efforts to stabilise key leadership positions, emphasising SITA’s role in national digital transformation.

The recovery and reform proposals from SITA are expected to be reviewed by the ministerial department and oversight committees after the 30-day deadline lapses in early August.