Government is pushing ahead with plans to finally deploy an integrated financial management system (IFMS), with National Treasury calling for proposals to get the project back on track.
Although specific figures were not outlined, National Treasury noted in a recent statement it is "publishing a multibillion-rand request for proposal (RFP) for the provision of an enterprise resource planning (ERP) system, including ongoing upgrades and support".
The much-delayed IFMS project was conceived in 1998 and approved by Cabinet in 2005, and was jointly led by treasury alongside the Department of Public Service and Administration and the State IT Agency. Its objective was to replace the numerous disparate, inadequate and outdated systems used throughout the public sector.
However, government abandoned plans to develop its own IFMS earlier this year, eyeing a commercial-off-the-shelf (COTS) solution to take its place - a decision that analysts note has dragged out an already-difficult implementation process.
ICT veteran Adrian Schofield likens implementing a new IFMS to changing the engines of a jumbo jet while it is still in flight. "It was never going to be easy and probably needs more resources, more skills and more expertise than have been made available. The decision that government needs a better system to exercise better control over its finances is easy. The route to achieve that will be hard, very hard."
Treasury notes the revised RFP is directed at bidders who are, "inter alia tier one ERP COTS original software manufacturers and is for acquisition of tier one ERP COTS software, including ongoing upgrades and support for this software".
Missed benefits
The years of delays means SA has missed out on the efficiencies enabled by an IFMS. Mark Walker, regional director at the IDC for Africa, the Middle East and Turkey, says to design an effective ERP system spanning multiple government departments "is not an insignificant exercise" and will need strong political will and leadership if the project will succeed this time around. If that is not in place, he adds, it "is doomed from the beginning".
"A big lesson learned would be the City of Johannesburg which also looked at upgrading its ERP years ago, but that is only recently starting to straighten out. The fact that it hasn't been implemented [on a national level] is less on the technology but more a question a leadership," adds Walker.
Accountant general Michael Sass says government aims to keep abreast of global trends by improving the way it manages public resources. He says it will do this through "regular refinement of financial management and human resource management policies and procedures" and by replacing legacy systems it currently uses.
Walker adds that standardisation of processes, procedures, reporting and efficiency are key areas government has missed out on due to delays - something which can finally be addressed if the current project gains momentum.
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