Parliament has criticised the Department of Public Works and Infrastructure (DPWI) following revelations that its SAGE software has lost the government R55 millionto hacking incidents since April. The most recent breach occurred earlier this month, with hackers exploiting vulnerabilities in the system to siphon funds.
Parliament DPWI portfolio committee chairperson Carol Phiri expressed frustration over the continued use of the flawed software, calling for immediate reforms: “This system is not fit for purpose. It’s causing financial losses, delaying payments to SMMEs, and undermining transformation efforts.”
HACKING CRIPPLING SERVICE DELIVERY
The committee is concerned that government funds are lost through SAGE and that in April, March, and more recently, November, the department was hacked, and money was lost.
The financial losses have also affected the government’s ability to pay service providers on time, a situation that Ms Phiri described as suffocating small, medium, and micro-enterprises (SMMEs).
“By failing to pay SMMEs promptly, you’re stifling their growth and limiting their potential to thrive in the economy,” she said.
The committee urged the DPWI to switch to National Treasury-approved systems to prevent further damage.
IDT AND INFRASTRUCTURE CHALLENGES
Concerns were also raised about the Independent Development Trust (IDT), a key entity responsible for social infrastructure projects. The IDT’s failure to submit financial statements has flagged it as a risk, but the committee emphasized its importance in reducing construction project costs and transforming infrastructure development.
CALLS FOR GENDER INCLUSION AND REFORM
Parliament also criticized the DPWI for failing to meet adequate gender representation targets, describing the 48% goal as insufficient. The committee urged the department to implement deliberate measures to prioritize women in male-dominated industries.
WAY FORWARD
To address the challenges, the committee outlined the following steps:
- Replace the flawed SAGE software system to halt financial losses.
- Investigate and recover the R55 million lost to hackers.
- Support the IDT in fulfilling its mandate for affordable infrastructure.
- Strengthen gender and disability inclusion in appointments.
What’s your take on the R55 million loss and DPWI’s challenges?
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