MEDIA STATEMENT: SCOPA ADVISES PARTIES INVOLVED IN IFMS TO CONSIDER SIU REPORT TO IMPROVE ON WEAKNESSES

The Standing Committee on Public Accounts (SCOPA) today received briefings from the National Treasury, State Information Technology Agency (SITA), Department of Public Service and Administration (DPSA) and the Special Investigating Unit (SIU) on matters around the Integrated Financial Management System (IFMS).

The objective of the committee in holding this engagement with these parties is to resolve the dispute between the National Treasury and the Auditor-General around the 2021/22 audit findings on the IFMS. The National Treasury, SITA and DPSA are the three parties that are involved this process.

The DPSA informed SCOPA today that it has not signed the Memorandum of Understanding (MoU) that has been signed by National Treasury and SITA on IFMS based on limitations of capacity in fulfilling the directives that are prescribed by the IFMS process.

SCOPA has also noted that although SITA has recognized areas of reservations which were referred to the National Treasury as the procuring party, they are still available to affirm the success of the IFMS in a new form that focuses on the migration to the Oracle Cloud Solution.

After receiving the SIU report, SCOPA has noted three critical areas that need to be noted by the parties in the contract. These are areas which affirm irregularities compared to the findings of the Auditor-General. SCOPA is also aware of similar observations that were made by the Standing Committee on Finance after noting an expenditure of about R2 billion without realizing any objectives of the existence of the IFMS. After undertaking an oversight visit to the National Treasury offices to look at the system, the Standing Committee on Finance also confirmed that no work has been done in relation to IFMS,

SCOPA has noted the outcomes of the SIU which include the issuing of two disciplinary referrals and one blacklisting referral. The SIU has also referred five criminal matters to the National Prosecuting Authority. The committee has also noted the outcomes of the SIU which include an ongoing process of the review and setting aside the award of contract relating to the appointment of Oracle, for the provision of IFMS at a contract value of R822 300 505.50 and to recover the just and equitable amount.

The committee views these SIU outcomes seriously. It has advised the parties involved in the MoU, the National Treasury, SITA and DPSA, to look into the report and recommendations of the SIU with the goal to reflect and improve on the weaknesses of the system.

Source: Parliament of South Africa