DailySun
The Special Investigating Unit (SIU) presented remarkable outcomes during a briefing for the Standing Committee on Public Accounts (Scopa) on Wednesday, highlighting corruption and mismanagement issues at the State Information and Technology Agency (SITA) and the South African Broadcasting Corporation (SABC).
Both entities operate under the Department of Communications and Digital Technologies.
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The SIU disclosed that contracts dating back to 2012 were examined, resulting in government savings of R262.6 million and the recovery of R58 million.
The investigation culminated in 11 criminal referrals, 46 disciplinary measures, 11 civil lawsuits, and three administrative actions.
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Although the SIU does not undertake prosecutions, it has referred applicable cases to the National Prosecuting Authority (NPA).
IBM Contract With SITA Found To Be Irregular Amid R774 Million Expenditure
A significant discovery included a sole-source contract issued to IBM without proper deviation approval.
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This contract aimed to consolidate government services across various departments but was flagged as irregular by the SIU.
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While SITA maintained that the IBM project upheld existing services, the SIU determined that procurement regulations had been violated.
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This resulted in the contract’s termination, yielding a saving of R111 million, the recovery of R24.6 million, and the referral of four cases to the NPA.
The investigation further uncovered 22 disciplinary cases related to the non-disclosure of business interests by SITA officials.
Mismanagement and Ethical Failures Exposed At The SABC
The SIU’s probe into the SABC stemmed from a board inquiry in 2017.
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This investigation led to 24 disciplinary referrals, resulting in the termination or resignation of at least 13 officials, including the notorious former COO Hlaudi Motsoeneng.
Motsoeneng has since repaid R11 million from his pension, with efforts underway to recover an additional R6.5 million.
Other unresolved matters include a R6.3 million claim for studio construction and R2.4 million disbursed to 53 artists involved in the Legends project.
Canceling these contracts saved the public broadcaster R5.8 million. In total, R33.5 million was recovered from annulled contracts, with an additional R151 million saved through other contract terminations.
The SIU urged the SABC to strengthen its internal controls and promote ethical leadership.
“Policies and procedures were willfully disregarded by senior executives and board members, leading to financial mismanagement and abuse of power,” the SIU determined.
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