The agency tasked with consolidating and co-ordinating the government’s information technology resources is facing a serious cash-flow crisis that threatens the functions of the state.
Sita is responsible for about R2bn annually in IT procurement spend on behalf of government departments. It has previously been embroiled in tender controversies and accused of failing to provide reliable government IT systems. Tshenye said the recovery of critically overdue debt, the delayed signing of agreements resulting in no billing for services delivered, and the lack of capex funding had negatively affected the cash flow.
Tshenye, who was briefing members of parliament’s communications portfolio committee on the agency’s financial statements and governance challenges, said since its inception the organisation has been grappling with a number of systemic and institutional challenges that have prevented it from fully achieving its objectives.
“This, however, inevitably resulted in the substantial loss of critical core and scare skills in key functions of the organisation,” Tshenye said.
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