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Special Investigating Unit to Blacklist Oracle SA Over Improper R800 Million Treasury Contract

Published March 29, 2024
1 months ago

Satori News Agency, South Africa – The Special Investigating Unit (SIU) is taking decisive action against Oracle South Africa (SA) following the discovery of irregularities and conflicts of interest in a significant contract with the treasury. The integrated financial management system (IFMS) deal, valued at R800 million, is facing scrutiny as the SIU moves to blacklist Oracle SA in a bid to safeguard public funds and uphold legislative compliance in government procurement.

Unveiled in 2015, the ambitious IFMS project sought to modernize government operations by implementing a cohesive system for managing supply-chain processes, financials, human resources, payroll, inventory, and business intelligence. However, the project has been marred by allegations of mismanagement and misconduct since Oracle was awarded the contract in 2016.

Prompted by President Cyril Ramaphosa's directive in 2020, the SIU embarked on an in-depth investigation to decode the procurement failures associated with the IFMS initiative. Previous disclosures to parliament’s standing committee on public accounts (Scopa) pinpointed significant payments to Oracle, totalling over R822 million, purportedly for license fees, support, maintenance, and pre-implementation services between 2016 and 2021.

A whistleblower's report brought to the SIU's attention the possible collusion between Oracle, senior treasury officials, and the State Information Technology Agency, raising alarms over corruption and procurement malpractices. These findings were compounded during the recent Scopa hearing when the SIU affirmed that Oracle had failed to deliver any services commensurate with the payments received.

Andy Mothibi, the SIU head, acknowledged the culmination of the investigation and the impending civil actions against implicated parties. He also clarified that the SIU's findings would be promptly executed, irrespective of the report submission to the President, focusing on recovering public assets and holding responsible officials accountable.

Mkhuleko Hlengwa, Scopa's chairperson, resonated the unit's concerns, emphasizing the dire state of the IFMS system and the need to preclude any further financial drain on the taxpayer. With the backdrop of upcoming provincial and national elections, and the need for stable grid infrastructure, the case against Oracle intensifies the urgency for prudent fiscal management and adherence to clean governance.

The SIU's actions against Oracle and the related individuals, including the blacklist and potential criminal charges by the National Prosecuting Authority, reflect a steadfast commitment to combating corruption and upholding the integrity of South African institutions.

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