About
Subscribe

BCX opposes R261m Limpopo IT tender

By Dave Glazier, ITWeb journalist
Johannesburg, 25 Aug 2006

Business Connexion (BCX) this week filed a formal application to review the controversial R261 million Limpopo information system (HIS) tender process.

One of the losing bidders, BCX filed the application to review the tender at the Pretoria High Court, following its filing of an interim court interdict about a month ago, citing irregularities in awarding the tender to a local empowerment consortium.

"We are now waiting for notice to oppose the application from the respondents - the Limpopo Department of Health and LHC Health Solutions [the consortium awarded the tender in May]," says Neil Haupt, senior legal counsel for BCX.

He explains there were "certain irregularities in the awarding of the tender - and we feel it shouldn`t have been awarded to LCH".

Disqualification

Haupt adds BCX is contesting its disqualification at one of the stages. "We were disqualified for allegedly not complying with one of the formal requirements regarding pricing."

He confirms what CEO Peter Watt has said of BCX`s tender quotation being R121 million - substantially less than that of LHC.

The Department of Health has consistently maintained BCX was simply not offering the solution it was looking for.

Both respondents are expected to have about a month to respond to the application; and, if no objections are received, or the court deems them invalid, the tender process will be reconsidered.

Haupt says BCX is pushing for the tender to be awarded directly to it, but if that fails he says he hopes to see it sent back to the Department of Health for re-evaluation.

Common problem

Speaking from its Canadian headquarters, HIS provider Heron Technology chairman Ron Hebert says the previous failures of health IT systems in Limpopo are indicative of public sector HIS projects in developing countries.

"Almost all public sector HIS attempts in developing countries fail, according to my international research over the past 10 years. I have never found a success," says Hebert.

"Regarding the LHC consortium, it is hard to imagine how a new, and probably inexperienced 'consortium` could now take the lead and tell the earlier (Medicom and IBM) how to proceed towards success with the same software and hardware as was used before," he adds.

Hebert`s comments refer to the Standing Committee on Public Accounts` investigation into an alleged wasted R193 million on failed IT system deployments when IBM deployed Medicom software between 1996 and 2000. It is understood that LHC, through its service , Australian-based IBA Health, will deploy Medicom software.

LHC could not be reached for comment.

Related stories:
R261m Limpopo hospital IT tender halted
Consortium wins Limpopo hospital IT contract
Limpopo awards R261m hospital IT tender

Share