SIU Uncovers Major Corruption At SITA, SABC

The Special Investigating Unit (SIU) have revealed significant successes during a briefing to the Standing Committee on Public Accounts (Scopa) on Wednesday, highlighting corruption and mismanagement 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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According to the SIU, contracts dating back to 2012 were examined, resulting in the government saving R262.6 million and recovering R58 million.

The probe led to 11 criminal referrals, 46 disciplinary actions, 11 civil litigations, and three administrative actions.

While the SIU does not prosecute, relevant cases have been referred to the National Prosecuting Authority (NPA).

IBM Contract With SITA Flagged As Irregular Despite R774 Million Spent

One major finding involved a single-source service provider contract awarded to IBM, allegedly without proper deviation approval.

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The deal aimed to integrate government services across departments but was deemed irregular by the SIU.

Although SITA claimed the IBM deal was a continuation of existing services, the SIU concluded that procurement rules had been bypassed.

As a result, the termination of the contract saved R111 million, R24.6 million was recovered, and four cases were referred to the NPA.

The investigation also uncovered 22 disciplinary cases involving non-disclosure of business interests by SITA officials.

Mismanagement, Ethics Failures Exposed At The SABC

The SIU’s investigation into the SABC stemmed from a 2017 board inquiry.

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The findings resulted in 24 disciplinary referrals, leading to the dismissal or resignation of at least 13 officials, including controversial former COO Hlaudi Motsoeneng.

He has since repaid R11 million from his pension, with an additional R6.5 million currently being recovered.

Other pending issues include a R6.3 million studio construction claim and R2.4 million in payments made to 53 artists under the Legends project.

The cancellation of these deals saved the public broadcaster R5.8 million. In total, R33.5 million was recovered from contracts that were set aside, while R151 million was saved through further cancellations.

The SIU recommended that the SABC strengthen its internal controls and promote ethical leadership.

“Policies and procedures were deliberately bypassed by senior executives and board members, enabling financial mismanagement and abuse of power,” the SIU concluded.

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