The Special Investigating Unit's (SIU's) probe into the Integrated Financial Management System (IFMS) tender has been broadened to include the State Information Technology Agency (Sita) and the department of public service & administration (DPSA).
Initially, the unit was focusing only on the affairs of the National Treasury but President Cyril Ramaphosa later signed a proclamation to include the two entities.
SIU spokesperson Kaizer Kganyago said the amendment extended the time period for the investigation.
“Initially, the probe focused on alleged misconduct starting from January 1 2016. However, the updated terms of reference now allow the SIU to investigate issues dating back to July 1 2013,” he said.
IFMS is an IT system approved by the cabinet in 2005 to integrate the government’s human resources and financial systems. But, with more than R1bn spent on it since then, it has been criticised for yielding no noticeable outcomes. At least 12 top IT, accounting, auditing and human resource consultants were appointed by the Treasury as part of the IFMS project, but their appointments have been the subject of forensic investigations after it emerged that regular procurement processes were not followed.
Kganyago said the central focus of the probe remained on procuring and contracting for the IFMS.
He said the unit was mandated to investigate any alleged serious maladministration in connection with the affairs of Sita and DPSA, improper or unlawful conduct by employees of the institutions, and unlawful appropriation or expenditure of public money or property.
It will also investigate any unlawful, irregular or unapproved acquisitive act, transaction, measure or practice having bearing upon state property, as well at the intentional or negligent loss of public money or damage to public property.
The investigation will specifically scrutinise whether these procurements and contracts were fair, competitive, transparent, equitable and cost-effective, and whether they violated any applicable legislation or Treasury instructions
— SIU spokesperson Kaizer Kganyago
“The investigation will specifically scrutinise whether these procurements and contracts were fair, competitive, transparent, equitable, and cost-effective, and whether they violated any applicable legislation or Treasury instructions,” Kganyago said.
He said the investigation was no longer limited to the main IFMS contract, but a series of associated tenders and requests for quotations were also added to the probe.
These included the appointment of a service provider to review the IFMS tender specifications to ensure that the tender met the full solution requirements and the appointment of a service provider to provide probity services for the project, among others.
“The SIU will also investigate the main tender for the appointment of a service provider to establish and operate a project management office for the IFMS programme.
“The probe will also look at any irregular, unlawful, or improper conduct by officials or employees of the institutions, suppliers or service providers, or any other person or entity implicated,” Kganyago said.
He added that beyond investigating maladministration, corruption and fraud, the unit was also committed to identifying systemic failures and recommending measures to prevent future losses.
“In line with the Special Investigating Units and Special Tribunals Act 74 of 1996, the SIU will refer any evidence of criminal conduct uncovered during its investigation to the National Prosecuting Authority for further action,” he said.
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