The Public Service Commission (PSC) has revealed over R2 billion in irregular expenditure and significant governance failures at the State Information Technology Agency (SITA) over the period from 2020 to 2025, according to a report released by the PSC on 6 July 2026. The investigation, requested by Minister of Communications and Digital Technologies Solly Malatsi, found weak accountability systems, procurement delays, and board governance gaps that have disrupted delivery of critical public IT services.

Key Findings: Irregular Spending, Procurement Failures, And Governance Weaknesses

The Auditor-General flagged SITA’s irregular expenditures at R819.7 million in 2020/21, R285.5 million in 2021/22, R452 million in 2022/23, and R514.171 million in 2024/25. The PSC reported limited evidence of consistent consequence management for officials responsible for these irregularities, undermining financial accountability.

Procurement inefficiencies were highlighted, with approximately 25% of SITA tenders not resulting in an award. Of 1,491 tenders, 278 were withdrawn, 52 cancelled, and 34 closed without a recorded reason. Some procurement processes remained unresolved for over 400 days on average, with 203 instances taking longer than a year from initiation to final decision.

Board Governance, Contract Management, And Required Recovery Plan

The PSC found SITA lacked a reliable, integrated contract register, instead relying on manual tracking of contract expiry dates. This introduced additional risk in contract management and oversight. The investigation identified significant corruption risks in recruitment and human resources, including excessive managerial discretion, weak controls, incomplete audit trails, and several instances of contract extensions that bypassed competitive processes entirely.

The report further noted serious board governance issues, with missing meeting packs, incomplete resolutions, and records dependent on individual custodians rather than formal systems. The PSC has directed SITA’s Board to submit a stabilisation and recovery plan, formally approved by the board, within 30 business days.

Government Response And Broader Significance

Minister Solly Malatsi, speaking at the report’s release, stated, “This report is difficult reading, but it is necessary reading. 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.”

Malatsi added, “The era of drift at SITA must end. The Board and management now have a direct mandate to stabilise the organisation, restore basic controls, clear procurement blockages and rebuild trust through evidence, not promises.” The PSC’s findings underline the urgency of strengthening state procurement and information technology governance to safeguard effective service delivery across government.

The SITA Board is expected to deliver its stabilisation and recovery plan for review by mid-August 2026.