Treasury followed failed pay system processes - DG

National Treasury has come under attack for a R1 billion Integrated Financial Management System (IFMS) that was never implemented.

Parliament's Standing Committee on Public Accounts (Scopa) heard this week that R1 billion was spent in the first phase of the project and R1.2 billion in the second phase.

National Treasury Director-General Dondo Mogajane says the project actually dates back to 2002, with then finance minister Pravin Gordhan at the helm.

The then minister of finance [Gordhan] decided to conceptualise this and understood that an integration of financial management systems was an issue. Something had to be done about it.

Dondo Mogajane, National Treasury Director-General

We then went to Cabinet in 2005, which approved the IMFS project. There are two phases here, IMFS one which dates back to 2005 to around 2013 and IMFS two began in 2013 to date.

Dondo Mogajane, National Treasury Director-General

Mogajane said it was important to note that integration was very critical at the time.

Speaking to 702 stand-in breakfast host Stephen Grootes, he said that R1.49 billion was spent for the first IMFS phase.

He admits to having experienced challenges and goes on to refute claims that public resources were misused.

Mogajane says in 2013, they approached Cabinet, presenting their integration challenges.

We then went to the World Bank and Ernst & Young who then helped them conceptualise IMFS two, the director-general says.

The reality is that all the companies and consultations in IMFS were procured legally.

Dondo Mogajane, National Treasury Director-General

If there is corruption in the organisation, we will deal with it.

Dondo Mogajane, National Treasury Director-General

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This article first appeared on 702 : Treasury followed failed pay system processes - DG


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