Western Cape municipality Bitou has hired Dimension Data in a bid to stop its IT systems from collapsing, after it cancelled the contract with its previous service provider, Lefatshe Technologies.
The municipality faced the prospect of being unable to take care of core operations, such as billing, sewerage maintenance, reservoir upkeep, housing provision and payment of salaries, if it did not take urgent action, says mayor Memory Booysen.
Bitou cancelled its contract with Lefatshe in October last year, claiming that the financial system it implemented was a waste of R10 million as it did not work. Lefatshe stopped providing services at the end of the year.
Lefatshe has argued the cancellation letter it received did not mention non-performance and that it may take action against the municipality for publicly blaming it.
At risk
Booysen says the municipality's decision to bring in DiData in to rescue the system was “in the interests of residents and to keep the municipality operational”. He says it acted in line with the Municipal Finance Management Act and National Treasury's supply chain policy.
Bitou - formerly Plettenberg Bay - initially met with DiData in September and the company provided it with an evaluation in November, at no cost, says Booysen. “DiData, through the good offices of [chairperson] Jeremy Ord, assisted us in our moment of need to do a system and needs analysis of our IT system.”
So far, the municipality has paid Dimension Data R4.1 million to “keep the municipality operational by replacing and implementing core equipment it was due to lose when [the] Lefatshe contract ended,” says Booysen.
Bitou is set to complete a tender process in May and appoint a new contractor, he adds.
The municipality has also asked local government to appoint a team to examine the processes followed in its emergency awarding of the deal to DiData without a tender process.
Share
