‘Bad financial management’ behind govt’s delayed IT system — Mogajane

A forensic report into a delayed national IT system has recommended that treasury director general Dondo Mogajane take action against officials allegedly responsible for financial mismanagement.

Treasury on Wednesday night briefed the standing committee on public accounts (Scopa) on the findings and recommendations of a probe into the Integrated Financial Management System, or IFMS.

A forensic report by Nexus Forensic Services found some R300m in irregular and authorised expenditure related to the IFMS. Treasury as not yet had time to considered the responses of implicated service providers.

The IFMS, which was approved by Cabinet in 2005, has cost the state over R1-billion. It is meant to integrate the disparate financial, human resources and supply chain management systems of government departments.

Mogajane was meant to brief the committee on the report two weeks ago, but it had not yet been finalised.


At the time he told MPs that the report recommends he take action against certain individuals and companies, but these parties first need to be given an opportunity to view it and submit comments.

The report, based on an investigation by Nexus Forensic Services, has since been made available to those implicated to give them an opportunity to respond to allegations. The committee also received copies of it ahead of Wednesday’s meeting.

The findings by Nexus revealed irregular expenditure of R273-million and unauthorised expenditure of R17.8-million.

Nexus found possibly flawed procurement processes with bidders failing to declare conflict of interest, non-compliance with supply chain management policy and failures of contract management.

Irregular expenditure

According to the findings of the Nexus report, contracts were irregularly awarded to several service providers, meaning all payments made to these service providers was irregular, Mogajane told the committee on Wednesday evening.

The Nexus report found that contracts were irregularly awarded to ICT Works, resulting in R165-million in irregular spending. Nexus found that contracts were irregularly awarded to KPMG, Apex and Abacus, resulting in irregular spending of R69-million, R8.8-million and R28.4-million.

Another finding shows that three service providers — KPMG, Abacus and Barnstone — failed to declare interest in bid documents for tenders. Nexus recommended that this be referred to law enforcement.

“Basic financial management processes were thrown out the door in some instances,” said Mogajane.

“I am not pointing fingers at anyone in the report […] they have an opportunity to respond,” he added.

The implicated service providers had until December 5 to give full responses, which Treasury is yet to consider.

Nexus recommended that the DG take action against implicated officials. Mogajane said that he will continue to study the report, and take further action where necessary. — Fin24

Subscribe to the M&G

These are unprecedented times, and the role of media to tell and record the story of South Africa as it develops is more important than ever.

The Mail & Guardian is a proud news publisher with roots stretching back 35 years, and we’ve survived right from day one thanks to the support of readers who value fiercely independent journalism that is beholden to no-one. To help us continue for another 35 future years with the same proud values, please consider taking out a subscription.

Lameez Omarjee
Lameez Omarjee
Parliamentary reporter at Fin24.com

Related stories

Advertising

Subscribers only

Q&A Sessions: ‘I should have fought harder for SA vaccine’...

Professor Salim Abdool Karim talks to Nicolene de Wee about his responsibility as head of the ministerial advisory committee tasked with guiding the government’s response to the Covid-19 pandemic.

Do you have to take the Covid-19 vaccine or not?

The South African law does not make it mandatory for citizens to be vaccinated, and the same will apply for Covid-19 immunisation. But experts say people still have the responsibility not to act recklessly — and they should follow Covid-19 health protocols

More top stories

Zuma won’t appear before Zondo commission on Monday, say his...

Last year the commission asked the Constitutional Court to force the former president to appear. Although ruling has not been made, the summons remains valid, but Zuma’s lawyers say they won’t honour it

Molefe blames Ramaphosa for Eskom’s woes in statement to Zondo...

Brian Molefe guns for Cyril Ramaphosa, alleging that the president’s relationship with Glencore was only a ploy to siphon money out of Eskom

Death and anxiety rife at matric marking centres as schools...

Education department delays 2021 academic year as the Covid-19 death and infection rates rise rapidly, but assures 2020 matrics that results will be released on time

Zondo commission: Lynne Brown reportedly says ‘eish’ when told of...

More allegations against Jacob Zuma put before the state capture commission, as the questions the former president will have to answer when he appears next week continue to stack up
Advertising

press releases

Loading latest Press Releases…