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TCS wins revenue deal

Nicola Mawson
By Nicola Mawson, Contributing journalist
Johannesburg, 23 Apr 2012

JSE-listed Total Client Services (TCS) has won a deal that will aid the Gauteng Department of Community Safety (GDCS) collect revenue under the Traffic Contravention and Administrative Adjudication of Road Traffic Offences (Aarto) Acts.

TCS provides enforcement solutions to traffic departments around the country and its systems have been developed to comply with Aarto, which is set to replace current traffic law enforcement legislation in SA.

The company says in a statement that the contract, for an undisclosed amount, is to run a Revenue Enhancement Pilot Programme for the GDCS for two years. The contract can be extended for another 24 months, as long as “proper tender ” are in place, it says.

TCS will provide equipment and systems to allow the GDCS “to achieve a more efficient and effective execution of the Traffic Contravention Act and the Aarto Act,” it says. A date for the implementation of Aarto has yet to be finalised.

Nationwide rollout of the new traffic law can only happen once an Aarto summit has taken place, although pilot projects have been running in Johannesburg and Pretoria for some time. TCS says its pilot project will start on 2 May.

Better systems

cleaning, he adds.

Whittle says TCS will be paid out of revenue generated, which means that if the system does not work, it will not receive income. He adds that the contract will be tricky, as the Johannesburg Metropolitan Police Department is running an Aarto pilot, while the Ekurhuleni Metro Police Department is still using the old system.

In the first half of the year, TCS said turnover gained 4.7%, to R22.46 million, while its after-tax loss narrowed to R2.64 million, from R21.46 million. It said the sector continued to be impacted be delays in Aarto being rolled out.

TCS was spun out of Labat and listed separately in April 2008. It provides integrated traffic law enforcement solutions, including technology, proprietary application software and administration services to local authorities and provincial administrations.

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