The Information, Communication and Technology Union (Ictu) is demanding an independent inquiry into the corruption allegations at the State Information Technology Agency (Sita), focusing in particular on the board members who have “stitched-up” their contracts to ensure that when their contracts expire they will still be entitled to receive payment. 

The union called for the investigation needed to look into all contracts with all its service deliverers, following the Standing Committee on Public Accounts (Scopa) on instructing Sita and the South African Police Services (SAPS) to terminate multimillion-rand contracts with service provider and supplier Forensic Data Analysis (FDA), a company owned by Keith Keating, a former warrant officer in the SAPS, and a director of 23 companies, on November 30.

Since 2010, FDA has won R5.4-billion in contracts from the police, which the Independent Police Investigative Directorate has flagged as stemming from a "corrupt relationship" with former acting police commissioner Khomotso Phahlane, his wife Brigadier Beauty Phahlane, who is attached to SAPS Technology Management Services (TMS), Phahlane’s sister Josephine and Colonel Johan Potgieter through a Pretoria car dealership.

In one case police bought torches from FDA for R300 000 each when that same torch, imported from Australia, costed just R7 000. They paid R100 each 500 000 for 500 disposable face masks, R1.6-million for distilled water and R129 per set of latex gloves which sell for less than R1 a pair.

In return, Keating allegedly paid R1-million to a car dealer for a Toyota Hilux bakkie, Hyundai i20, Ford Ranger and VW Polo for Phahlane and his wife, daughter and sister. These were invoiced to "Joe Doe”.

"The position of the committee is that the contracts with FDA are of a corrupt nature and we want to have them cancelled,” Scopa chairperson Themba Godi noted.

African National Congress MP Vincent Smith added that the committee was not “asking the agency, but telling it” to halt its dealings with FDA.

“The Sita is obliged to support small- and medium-sized companies but must not be allowed to use this as a cover for corrupt deals. It is also now possible that they will not be in a position to pay these contractors and its suppliers as it is running out of cash,” the union noted.

It added that these dealings could result in possible retrenchments or reduced wages. 

Keating and three of his companies - FDA, ISS and RDD - have also been the focus of a Sita-initiated investigation which has uncovered a total of R6.1-billon worth of transactions by Keating’s companies through SAPS and SITA between 2010 and 2017.

Sita spokesperson Lucky Mochalibane confirmed that the agency had initiated its own internal investigation on supply chain processes in general in February 2017 in an attempt to deal with corruption.