President Cyril Ramaphosa has signed Proclamation 281 of 2025 that broadens the scope of a Special Investigating Unit (SIU) probe into the Integrated Financial Management System (IFMS) tender.
The new proclamation amends an earlier investigation, initiated by Proclamation R.4 of 2020, which initially focused solely on the affairs of the National Treasury. The investigation has now been extended to include the State Information Technology Agency (SITA) and the Department of Public Service and Administration (DPSA).
The amendment extends the time period for the investigation. Initially, the probe focused on alleged misconduct starting from January 1, 2016. However, the updated terms of reference now allow the SIU to investigate issues dating back to July 1, 2013.
The central focus remains on procuring and contracting for the IFMS. The SIU is mandated to investigate any alleged:
- Serious maladministration in connection with the affairs of SITA and DPSA.
- Improper or unlawful conduct by employees of the Institutions
- Unlawful appropriation or expenditure of public money or property.
- Unlawful, irregular or unapproved acquisitive act, transaction, measure or practice having a bearing upon State property.
- Intentional or negligent loss of public money or damage to public property.
- Corruption-related offences as outlined in the Prevention and Combating of Corrupt Activities Act.
The investigation will specifically scrutinise whether these procurements and contracts were fair, competitive, transparent, equitable, or cost-effective, and whether they violated any applicable legislation or Treasury instructions.
Furthermore, the investigation is no longer limited to the main IFMS contract. The amended schedule details a series of associated tenders and requests for quotations (RFQs) that are now included in the probe. These include, but are not limited to, appointments for:
- Appointment of a service provider to review the Integrated Financial Management System tender specifications (technical and functional), to ensure that the tender meets the full solution requirements.
- Appointment of a service provider to provide probity services for the Integrated Financial Management System project.
- Appointment of two service providers to lead the programme, stakeholder management and strategic business planning.
- Appointment of a service provider(s) to assist with organisational change management and communications concerning the Integrated Financial Management System Programme.
- Appointment of a service provider(s) for strategic systems planning regarding the Integrated Financial Management System.
- Appointment of a service provider to assist with probity services and assurance with regard to the Integrated Financial Management System programme
The SIU will also investigate the main tender for the appointment of a service provider to establish and operate a Project Management Office (PMO) for the IFMS programme.
The probe will also look at any irregular, unlawful, or improper conduct by officials or employees of the Institutions, suppliers or service providers, or any other person or entity implicated.
Beyond investigating maladministration, corruption, and fraud, the SIU is committed to identifying systemic failures and recommending measures to prevent future losses.
In line with the Special Investigating Units and Special Tribunals Act 74 of 1996 (SIU Act), the SIU will refer any evidence of criminal conduct uncovered during its investigation to the National Prosecuting Authority (NPA) for further action.
Under the SIU Act, the SIU is also authorised to initiate a civil action in the High Court or a Special Tribunal in its name to address any wrongdoing identified during its investigation resulting from acts of corruption, fraud, or maladministration.
Enquiries:
Kaizer Kganyago
Spokesperson: Special Investigating Unit
Cell: 082 306 8888
E-mail: KKganyago@siu.org.za