The Limpopo Health and Social Development Department has awarded a R261 million tender for the overhaul of information systems in the province`s hospitals - after already having spent R193 million on attempts to carry out similar upgrades in the last decade.
Although the identity of the successful bidder will only be revealed later in the week, the department`s spokesperson, Phuti Seloba, says the winner is a Limpopo-based black economic empowerment (BEE) consortium with interests in the IT sector. "IBM will also be strategically involved."
He adds that his department consulted with the State IT Agency and KPMG to make the correct decision.
The news comes after recent reports that the Standing Committee on Public Accounts (Scopa) had criticised the Limpopo Health and Social Development Department for spending about R193 million on failed IT system deployments.
Seloba agrees with Scopa`s claims: "I agree that it [spending money on the previous hospital information systems] was a fruitless expenditure."
Chequered history
In December 1996, the Limpopo Health and Social Development Department awarded a R116 million tender to IBM for the implementation of hospital information systems (HIS). IBM was to implement HIS in 40 hospitals over a three-year period.
"In actual fact, they only installed systems in 23 hospitals," notes Seloba, "despite the contract being extended to September 2000."
At this stage, the department invited new tender applications for HIS to the value of R27 million, which was awarded to Ethniks Systems.
Ethniks was brought in to install HIS in the remaining 17 hospitals, and replace IBM systems - for reasons the department is not revealing. The contract expired at the end of 2005, adds Seloba.
Certain additional expenditure meant the total cost of the two HIS projects was about R193 million, he explains.
The department issued a new HIS tender invitation earlier this year, which was awarded to the as-yet-unidentified BEE consortium on 19 April.
Mathula Magubane Mphande, communications executive of IBM SA, says the company declines to comment on customer specifics and adds that it is company policy not to comment on speculation.
Software contract
Meanwhile, Australian-listed e-health company IBA Health claims it is part of the winning consortium.
In a statement issued on 1 May, IBA Health said: "The award of this agreement is valued at over $9.64 million to IBA and affirms IBA`s position as the leading supplier of health information technology in SA."
IBA claims this follows an "extensive tender evaluation" and that it was awarded the agreement over 10 international and local software competitors.
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