City of Tshwane resolves financial dispute worth R3.2 million with SITA
In a bid to maintain transparency and accountability, the State Information Technology Agency (SITA) has confirmed that it has settled its municipal account with the City of Tshwane, following a shortfall of R3.2 million[1][2]. The shortfall, which occurred over the past three months, was due to underestimated usage of municipal services, particularly electricity[3][4].
SITA operates a prepaid municipal account, which had been regularly serviced. However, the underestimated usage resulted in the actual consumption outpacing payments, leading to the shortfall. After a thorough review, SITA established its average monthly municipal consumption rate to be approximately R2.6 million and has adjusted its forecasting accordingly to prevent such underestimations in the future[1][2].
The temporary suspension of services at SITA's head office in Erasmuskloof did not disrupt the agency's operations. It is worth noting that the services in question were provided by the City of Tshwane. A credit from another SITA account within the City of Tshwane could have offset the shortfall had the municipality notified SITA prior to suspending services[1].
SITA has taken full accountability for the situation and is implementing stronger monitoring and billing engagement processes to prevent a recurrence of the issue. The agency has reaffirmed its commitment to transparency and accountability with all public sector partners[1].
[1] City of Tshwane News Release, 15 March 2023 [2] SITA Statement, 17 March 2023 [3] SITA Financial Report, Q1 2023 [4] City of Tshwane Utility Billing Report, Q1 2023
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