Postbank’s interim CEO Lucas Ndala says failure to follow due procurement processes is one of the reasons for the irregular expenditure incurred at the entity.
The bank is one of the entities under the Department of Communications and Digital Technologies that appeared before Parliament’s Communications Committee on Tuesday.
They made virtual presentations on specific issues to the committee.
Postbank which was part of the South African Post Office (Sapo) became an entity operating on its own since April 2019.
It is yet to become a fully-fledged bank, only after the South African Postbank Limited Amendment Bill which is now with the National Council of Provinces (NCOP), has been finalised and signed into law.
Ndala had to give the committee an update on the filling of vacancies and supply chain management irregularities at the bank.
“In terms of the irregularities that we have seen, most of them relate to failure to follow due process and I think the biggest one being poor planning and I think a lot of these related to where we failed,” says Ndala.
“A lot of our contracts, we had to sip them from Sapo and also you know some of the contract expiry periods were not necessarily properly managed as we didn’t have a proper contract management system. We are now in the virtue of looking to that as part of the bigger IT modernisation process,” adds Ndala.
Portfolio Committee on Communications 15 March 2023 https://t.co/uLl7lLR8oT
— Parliament of RSA (@ParliamentofRSA) March 14, 2023