Statement calling on National Treasury to implement SIU report recommendations on Integrated Financial Management System

16 October 2024

The uMkhonto weSizwe Party has noted with shock and disappointment National Treasury's intention to take the SIU report on IFMS on review. This was communicated by the National Treasury Director General, Dr. Duncan Pieterse to the Standing Committee on Finance (SCOF) during its meeting on National Treasury's annual performance report today. Compounding matters further is National Treasury's intention to renegotiate its contract with ORACLE, despite SIU investigations establishing major procurement irregularities and potential corruption practises during the SCM processes on the matter.

It is worth noting that according to the Auditor General of South Africa, National Treasury failed to disclose fruitless and wasteful expenditure of R400 million incurred as a result of payments for the technical support and maintenance on licences for the 'FMS from which no value was derived. During its visit to both National Treasury and SITA office, SCOF established that both the IFMS licence, and the 'FMS system for which R400 million was incurred to procure the system were not in place.

The review process by National Treasury is more of a procrastination of the implementation of SIU recommendations which inter alia are alleged to be implicating senior National Treasury officials. Efforts by National Treasury to renegotiate a contract which is a product of a flawed SCM process is a snub to the laws of this country and its President who issued a Proclamation on this matter.

The MK Party will lay charges against National Treasury and call for law enforcement agencies to move with speed in implementing SIU recommendations. The contract renegotiation process initiated by National Treasury must be brought to a halt and National Treasury must engage Department of Public Administration to identify officials at National Treasury who have been identified by the SIU. Further, the SIU must recover the R400m that has been spent irregularly or in a wasteful manner. The Minister needs to take steps to safeguard the assets of this country, especially where senior officials appear hesitant to apply consequence management.

We find it strange that the department which is the custodian of the public finances and the PFMA is the one that is dilly dallying with consequence management. This can be interpreted to mean that a cover up is in progress.

The MK Party will not close its eyes and become party to the commission of a crime against the people of South Africa.

Issued by Nhlamulo Ndhlela, Head: Media and Communications, MKP, 16 October 2024