of section 188 of the Constitution of the Republic of South Africa, 1996 (Act No. 108 of 1996), read with sections 3

and 5 of the Auditor-General Act, 1995 (Act No. 12 of 1995), section 16(9) of the State Information Technology

Agency Act, 1998 (Act No. 88 of 1998) and the Companies Act, 1973 (Act No. 61 of 1973). These financial statements,

the maintenance of effective control measures and compliance with relevant laws and regulations are the

responsibility of the accounting officer. My responsibility is to express an opinion on these financial statements,

based on the audit.

The audit was conducted in accordance with Statements of South African Auditing Standards. Those standards

require that I plan and perform the audit to obtain reasonable assurance that the financial statements are free of

material misstatement.

An audit includes:

• examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements,

• assessing the accounting principles used and significant estimates made by management, and

• evaluating the overall financial statement presentation.

Furthermore, an audit includes an examination, on a test basis, of evidence supporting compliance in all material

respects with the relevant laws and regulations, which came to my attention and are applicable to financial matters.

I believe that the audit provides a reasonable basis for my opinion.

In my opinion, the financial statements fairly present, in all material respects, the financial position of SITA at

31 March 2004 and the results of its operations and cash flows for the year then ended in accordance with South

African Statements of Generally Accepted Accounting Practice and in the manner required by the Companies Act,

1973 and the Public Finance Management Act, 1973.

Without qualifying the audit opinion expressed above, attention is drawn to the following matter:

Although the transfer of the Centurion, Numerus and Beta properties has not been finalised, SITA has recorded the

properties in the accounting records and fixed asset register. A memorandum of agreement between SITA and the

National Department of Public Works has been signed for transfer of the Centurion property and management

continues to pursue the transfer of all the properties into SITA’s name. The memorandums of agreement for the

other two properties are in the process of being drawn up. The book value of the properties at year-end amounted

R131 154 950. Further particulars of this matter are disclosed in note 2.2 of the financial statements and in the

Directors’ report.

With reference to the paragraph in the Directors’ report relating to the Gateway Project, the internal audit

component of SITA instituted a forensic investigation into alleged irregularities on the project. At the time of

compiling this report the investigation was still ongoing.

The assistance rendered by the staff of SITA during the audit is sincerely appreciated.