By Lehlohonolo Lehana.
An independent investigation into the State Information Technology Agency (SITA) revealed over R2 billion in irregular expenditures and systemic governance failures.
The investigation examined a range of critical issues, including governance failures, leadership instability, internal infighting, and weak accountability and decision-making processes.
Further, it probed allegations of procurement irregularities, corruption and the approval of irregular contracts, as well as the high turnover in executive leadership that has contributed to organisational instability.
The Department of Communications and Digital Technologies (DCDT) commissioned the Public Service Commission (PSC) to probe the agency.
PSC having concluded the investigation, formally handed over the report to DCDT on Monday, 06 July 2026.
Minister of Communications and Digital Technologies Solly Malatsi, along with the chairperson of the Public Service Commission (PSC), Professor Somadoda Fikeni, presented the final report into governance failures at the state-owned entity.
Malatsi requested that the PSC conduct an independent investigation into Sita in December 2024 for the period between 2020 and 2025.
Fikeni said the weaknesses identified in the report include inconsistent consequence management and procurement challenges.
According to the report, over R2 billion in irregular expenditure was flagged by the Auditor-General across four audited years: R819.7 million in 2020/21, R285.5 million in 2021/22, R452 million in 2022/23 and R514.171 million in 2024/25.
There was not enough proof, according to the report, that consequence management was consistently used in connection with these issues.
The investigation also found that one in four tenders analysed did not result in an award.
The report articulated where the parties responsible for SITA, including the DCDT, its board and executive, ought to be intervening, with the PSC outlining key areas for immediate intervention.
The Minister said the report provided a clear diagnosis, practical reforms and firm deadlines.
“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,” Malatsi said.
SITA Board Chairperson Professor Stella Bvuma said that SITA remains a strategic enabler of the state, and that rebuilding trust requires decisive leadership, strengthened governance and a shared commitment to institutional excellence.
“The future of SITA will not be determined by the challenges we face, but by the choices we make together. Our responsibility is to build an organisation where strong governance, capable people, innovation and a shared sense of purpose enable us to deliver greater value to government and the citizens we ultimately serve. As a strategic enabler of the state, we must continue strengthening the institutions that rely on us to drive South Africa’s digital transformation. When leadership is aligned around purpose, solutions become clearer, collaboration becomes stronger and progress becomes inevitable,” said Bvuma.
Bvuma further emphasised that effective governance and visionary leadership are complementary drivers of organisational success. By creating an environment where people are empowered to perform at their best while maintaining the highest standards of accountability, SITA is positioning itself to respond confidently to the rapidly evolving digital landscape.
The leadership engagement concluded with a shared commitment to continue building an organisation that earns the confidence of government, creates value through technology and contributes meaningfully to South Africa’s digital future.
To ensure that the report becomes a reform instrument rather than another unimplemented document, the Minister and the PSC agreed on immediate actions:
Within 60 business days, SITA must submit a comprehensive governance reform plan to strengthen procurement controls, record-keeping, board administration and executive accountability.
In addition, SITA is required to provide quarterly governance reports to ensure that implementation is monitored transparently and progress can be measured against clear deliverables.
The review will consider whether legislative, policy or operational reforms are required to support the wider effort to make SITA fit for purpose.
All reforms require independent validation, while the department leads a formal review of Sita’s mandate and operating model with the Department of Public Service and Administration, the National Treasury and the Presidency.