State IT Agency Mandate, Successes, Challenges, and Strategic Direction to Parliamentary Portfolio Committee on Telecommunication and Postal Services

SITA’s Legislative Mandate & Overview To improve service delivery to the public through the provision of information technology, information systems and related services in a maintained information systems security environment to departments and public bodies; and to promote the efficiency of departments and public bodies through the use of information technology (SITA Act, 1998). Act means “SITA Act 38 of 2002”; Regulation means “SITA General Regulations R.902 of 2005”.

New Macro Structure CEO Minister: Telecommunications & Postal Service SITA BOARD Company Secretary Procurement (Subsidiary) ICT Security (Subsidiary) CEO Internal Audit Executive Support CORPORATE SERVICE & GOVERNANCE Deputy CEO ICT DELIVERY Deputy CEO Corporate Service Executive: Corporate Services Finance Chief Finance Officer Risk Management Chief Risk Officer Technology Management Chief Technology Officer ICT Service Delivery Executive: Service Delivery Customer Relations Executive: Customer Relations Systems Executive: Systems

SITA EE Stats per Division Note: Patterson Job grades identifies the level of the job on the organization hierarchy

SITA Highlights (1 of 2) ~ 7000 public service outlets connected on a government secure network Secure Hosting of Government Systems that ensure transactions on time Provide secure Citizen Identity verification to Financial sector ~ 740 000 IT Help Desk calls per year ~ 1400 Customer Service Agreements (incl SLA Annexes) ~ 562 000 Senior Certificates processed annually

Primary contributor to the GITOC Government Wide ICT Strategy SITA Highlights (2 of 2) Developed Minimum Interoperability Standards MIOS v5 to enable data exchange between government systems. Primary contributor to the GITOC Government Wide ICT Strategy 2000 Young South Africans benefiting in SITA’s learnerships, internships and bursaries Bridging the digital divide with 15 high-end equipped ICT laboratories in Schools in primarily rural and peri-urban areas Managing and Hosting the Presidential Hotline to promote Citizen participation on improving public service delivery Techno-Girl - 8722 girls in job shadowing; 283 studying at Higher Education; 289 employed

Procurement challenges Pain points Root Causes Long delivery timeframes to complete procurement process Limited staff capacity and capability. Limited of transaction progress visibility. Lack of customer-centric approach. Locked into contracts after expiry Lack of effective contract management – process inefficiently conducted manually. Poorly defined specifications and evaluation criteria. Limited supply market intelligence Tenders cancelled Poor communication between SITA and customers Lack of customer-centric approach Lack of formal periodic progress reporting to customers. Poor stakeholders alignment of the process High prices for goods/services procured Limited ability to leverage economies of scale. Absence of commodity management approach Limited knowledge of supplier market. Lack of segmentation of the vendor master Absence of dedicated capability. Limited development for SMME growth SOURCE: SITA data; client interviews

Procurement Strategic intervention Procurement controls Pain points Long delivery timeframes to complete procurement process Improve capability and capacity through training and recruitment. Ring-fence Procurement function through a new business unit. Introduce automated transaction tracking system. Implementing effective contract management framework supported by an automated contract management system. Locked into contracts after expiry Establish independent specifications review committee. Build supply market intelligence capacity to provide market insight. Build ICT competency within Procurement. Tenders cancelled Poor communication between SITA and customers Introduce formal periodic progress report to customers i.e. weekly. Including introducing automated workflow system. High prices for goods/services procured Introduce commodity approach to leverage economies of scale to drive price reduction. Introduce fact based negotiations. Implement continuous security vetting and integrity checks. Declaration of interest per transaction including probity checks including lifestyle audits. Vulnerability to Fraud and Corruption Limited development for SMME growth Build supplier market capacity. Introduce segmentation of the vendor master. Introduce a dedicated capability and SMME help desk. SOURCE: SITA data; client interviews

ICT service delivery challenges Pain points Root Causes 1 Digital Government No defined E Government strategy, lack of robust infrastructure, limited bandwidth to support transaction intensive applications. 2 Security controls are not integrated to include physical security data and ICT i.e. national key point expectation. Have not updated controls to address rise in Cybersecurity threats. Insufficient disaster recovery Security 3 Transversal capabilities End-of-life technologies ie. mainframe based. Limited system maintenance skills. Insufficient capabilities to deliver on new customer requirements. 4 Managed Infrastructure 25 Years old data centres - prone to breakage. High Power Consumption. Poor investment on hosting technologies. No DR site. Network Low last mile bandwidth Poor rural coverage Fragmentation and duplication of networks

ICT service delivery strategic intervention Service Delivery Controls Pain points Partnership with Government Agencies. Develop strategic framework for implementation of E-Government (standards costs, equipment, local content , budget etc) Adopt a top-down approach on e-Government initiatives and strategic direction (e-Government as an immediate priority). 1 Digital Government 2 Security Ring-fence security function in separate business unit. Implement integrated security system (Physical, ICT, people) Partner with SSA for regular review of SITA’s security. Modernise the aging Government Wide Transversal systems (BAS, PERSAL, LOGIS) i.e. Hosting the new IFMS. Integrate and enhance Government sector transversal solutions to improve interoperability amongst cluster systems and increase productivity of government service delivery machinery. 3 Transversal capabilities 4 Managed Infrastructure Explore strategic partnerships with State agencies on DR sites. Upgrade and modernise existing data centres ,cloud computing and virtualisation , UPS. Consolidate and upgrade Government shared ICT infrastructure. Network Extend footprint and upgrade existing Government network in line with SA connect Broadband targets. Enhance the security and reliability of the Government network. Partner with Telkom and BBI in improving BB services.

Focus on E-Government Government Goal: Make at least 70% of public facing services online accessible to citizens by 2016. Strategic Direction Approach Partnership with Government Agencies. Develop strategic framework for implementation of E- Government (standards costs, equipment, local content, budget etc.). Adopt a top-down approach on e-Government initiatives and strategic direction (e- Government as an immediate priority).

SITA’s transformation journey will be implemented through 23 initiatives across 4 key categories Procure-ment Establish procurement Subsidiary Implement contract tracking & management system Implement new approach to technical specifications Launch new procurement process Establish contract model Launch On-line Buying Introduce new organisation model Revise SITA’s procurement policies A 1 2 3 4 5 6 7 8 IT Service Portfolio B Consolidate & modernise data centres Upgrade bandwidth & network Design and implement security system New IT Service Delivery Model System Integration & e-GOV Build internal capabilities Design and implement retained organisation 9 10 11 12 13 14 SITA Business Enablers Create transparency on cost Integrate and automate finance and procurement process Develop and implement new customer engagement model Recruit top talent to SITA PMO Strategy Institutionalization D 19 20 21 22 23 Organisa- tional Health C Create a customer centric organisation Reward and recognise exceptional performance Build an open and trusting culture Empower SITAzens to fully leverage their capabilities 15 16 17 18

Summary of Auditors General, 2013/14 Unqualified audit report 1 Reported issues 2 2 Issues relating to the reliability of reported performance information 7 Issues relating to non-compliance with procurement information 2 Other instances of non-compliance (material audit adjustments, irregular expenditure) 3 Audit Findings Interventions 13 Finance 30 Supply Chain Management 6 Corporate Services 3 Company Secretary 2 Performance Management 1 Customer Relation Management Action plan for each findings has been developed and to be managed from the CFO office. Dashboard to facilitate monitoring has been developed to be updated monthly.

Financial Sustainability Planning

Capital Expenditure

Current Status (in response to media coverage) Financial Health While there is room for improvement, SITA’s current financial position is nowhere near collapse As part of our strategy implementation programme all financial systems, processes and controls are being reviewed to achieve more efficient financial management, with improved financial growth and sustainability Governance SITA’s leadership team is one hundred percent committed to the highest standards of corporate governance and ethical behaviour and does not hesitate to confront breaches, dealing with them decisively and swiftly The irregularities and malpractices reported on in the said media reports were presented as an exposé which caught the leadership off guard, they were actually part of the findings of an internal investigations commissioned by the SITA leadership team with the precise objective to uncover any potential irregularities Procurement Our newly adopted strategy implementation programme is currently reviewing and refining the procurement system to ensure high levels of efficiency with quick turn-around times and optimisation of economies of scale Service Delivery Our strategy is geared towards reviewing and enhancing every aspect of our operations, ensuring that SITA becomes completely customer centric, being fully equipped and capable to deliver top-end services to our clients Staff Related Matters SITA has in the last number of years, unfortunately, been subjected to large scale staff and skills losses The strategy implementation programme has sufficient focus on our efforts to build organisational capabilities to enable SITA to deliver on its mandate while becoming an employer of choice within the ICT industry

Thank You Questions