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Forensic probe into Treasury’s failed IT system to wrap up soon

Jun 06 2018 18:59
Lameez Omarjee

Cape Town - A forensic investigation into the failings of Treasury’s Integrated Financial Management System will be finalised soon, Parliament has heard.

The standing committee on public accounts (Scopa) on Tuesday heard from Treasury on the progress made on issues the committee raised in its last meeting on the Integrated Financial Management System (IFMS).

The system is meant to upgrade and modernise government departments' information storage systems, secure financial information across departments and eventually improve each department’s efficiency, Fin24 previously reported.

The committee believes it is likely that the programme may not be cost-effective. So far R1.6bn has already been spent on the programme, which has not yet been implemented. However, the committee also believes the IFMS has the potential to resolve some of the financial management issues currently affecting the public service, it said in a statement issued on Tuesday.

But since the last meeting with Scopa in March, Treasury has taken steps to address weaknesses in the IFMS governance, resource management and capacity constraints and weaknesses in controls.

A forensic investigation by Nexus Forensic, appointed on February 1, 2018, is set to be completed on July 12, 2018. This is after two extensions were requested. Treasury said in its presentation to Scopa that it would not provide further extensions. Treasury also assured Scopa that the new deadline would not incur further costs to the investigation.

"The committee is looking forward to receiving the report and ensuring accountability," Scopa chair Themba Godi said. 

The total expenditure from 2009/10 to 2018/19, for both IFMS1 and IFMS2, is expected to amount to R1.79bn, excluding a R58m charge committed for the 2018/19 year for support and maintenance.


Scopa raised concerns over the risk of the State Information Technology Agency (SITA) undertaking the project management of the system. "The risk factor is high if SITA is to be entrusted with the project management responsibility of such a huge project, especially in light of the current challenges the entity is facing," said Godi.

SITA has been invited to address these concerns at a briefing with Scopa.

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sita  |  scopa  |  finance  |  it  |  treasury


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