Deputy Speaker, the response is as follows: During the financial year 2009-10, the State Information Technology Agency, or Sita, reported irregular expenditure of approximately R214 million. Of this, the financial loss to Sita of an amount of R130 million had not been determined, due to the fact that a disciplinary hearing was in progress. The disciplinary hearing was concluded during the 2011-12 financial year and the responsible executive authority was subsequently dismissed. Further, the matter was referred to the SAPS. I have the case number here: Brooklyn CAS134/4/2011. So, the SAPS and the Special Investigating Unit are investigating the possibility of criminal conduct, the outcome of which will form the basis of instituting a claim for the recovery of the financial loss suffered, if any.
Furthermore, as part of the investigation by the SAPS, an amount of R18 million is currently being kept in the trust account of Sita lawyers, pending the SAPS investigation. This is because it is alleged, or rather suspected, that the contract in respect thereof may be the basis of criminal conduct.
Thirdly, in the financial year 2010-11 Sita reported, inter alia, irregular expenditure of more than R243 million, in respect of which there was no financial loss suffered. In this matter, further investigation has been conducted by Sita and a report will be provided to the portfolio committee once the case has been concluded.
Mr L Ramatlakane: Deputy Speaker, I thank the Minister for the detailed response. However, you have not answered two parts of the question. What is happening to the 32 cases that was discovered by the Sita forensic audit? Is any action being taken concerning those cases and what is the status?
Lastly, Minister, are you saying that, in terms of the Public Finance Management Act regarding irregular expenditure, you will wait to implement that law until after the police criminal cases have been concluded? This may take years, and the Financial Management Act is very specific about how to deal with officials who have utilised money inappropriately, in terms of call-back. Is that what I am hearing - you are going to wait for two or three years down the line before action is taken?
Deputy Speaker, my apology, hon Ramatlakane. The answer, which I did not read fully, states that in 2010 the Sita board decided to commission an investigation into a range of allegations of misconduct, some of which was reported as irregular expenditure. The service provider commenced with the investigation at the beginning of 2011 and the investigation of the 32 cases will be finalised this year. I was informed by the director-general that the Sita board will be sitting tomorrow and they will definitely consider the report on the 32 cases, because it has been completed. So, tomorrow they will be sitting to complete it.
It also transpired that some of the employees have since resigned, one would assume in anticipation of a negative outcome for them. Consequently, where there is evidence of criminal conduct, Sita has referred the matter to the SAPS for further investigation or arrest.
Deputy Speaker, as in the Sita case, there is irrefutable proof that financial mismanagement and maladministration are widespread in many departments and it seems there are no consequences for nonperformance. How will the hon Minister ensure that appropriate sanctions are implemented to put an end to this state of affairs and will the Minister insist that directors-general be held accountable by dismissing them and not by redeployment?
Deputy Speaker, there is a government performance management tool for senior managers, which is also applicable to Sita. So, one can safely assume that the tool that is being used across government also applies to Sita. So, if there are criminal activities, they will be dealt with in terms of the management tool that exists in the system. Sita is no exception to the rule - the Deputy Minister confirmed this when he said that Sita is subject to the tool that is being used in government generally for the management of public servants.
Intentions regarding mandatory declaration by public office bearers and public servants of all their financial interests
105. Mr A R Ainslie (ANC) asked the Minister for the Public Service and Administration:
Whether she intends making it mandatory for all public office bearers and employees in the Public Service to declare all their financial interests and to prohibit them from participating in any decision- making which will result in a conflict of interest; if not, why not; if so, what are the relevant details?