Scopa wants answers from Treasury on failed IT system

Cape Town - Parliament’s Standing Committee on Public Accounts (Scopa) has written to National Treasury demanding that it explain why the State Information Technology Agency (SITA) was not chosen to assist with implementing Treasury’s ill-fated Information Financial Management System (IFMS).

National Treasury gave the first phase of the project to ICTworks before the project collapsed. The two parties settled on R383m and an agreement that the company handle the second phase of the project as well.

The project was intended to upgrade and modernise government departments’ information storage systems, secure the financial information across departments and eventually improve each department’s efficiency.

National Treasury told Scopa on Tuesday morning that it had appointed a service provider for its R1bn IFMS and investigations into the initiative's false start are at an advanced stage.

National Treasury Director General Dondo Mogajane briefed the committee after it emerged last year that Treasury failed to implement the system even though it had already spent R1bn on it.

In a statement Scopa said it was concerned that National Treasury was planning to launch phase two of the IFMS project in November 2018 without a concrete plan of action. 

“The committee has requested the department to give detailed information in this regard."

Scopa said it is worried about the fact that there are no signed service level agreements with SITA on IFMS two. 

Scopa said it also requested that National Treasury send written information to the Committee explaining why the department does not have a signed service level agreement with SITA for the second phase of IFMS.

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