The Department of Transport has grossly overpaid for a national database of vehicles. Moreover, the database is ineffective because data is not being correctly captured, which could lead to a procedural nightmare for motorists.
The department awarded the initial Electronic National Traffic Information System (eNatis) contract to Tasima, which developed and still operates the system, in December 2001.
According to the auditor-general's performance audit on the use of consultants at selected departments, the consultant was appointed on a five-year contract, which expired in May 2007 for R594 million.
However, the AG found that after the contract expired, after a one-year extension, it was agreed that the consultant would continue operating on a monthly basis. A total of R936.2 million was paid to the consultant over four years, which included services not in the contract.
No handover
In May 2010, Tasima announced that transport extended its public-private partnership with Tasima by renewing its contract to manage, maintain and develop system for another five years.
The AG's report found that Tasima was meant to start a handover of the deal in May 2007, and that it accepted responsibility for the transfer management plan, "but did not provide it". The transfer should have been wrapped up by last April.
"In the absence of a documented transfer management plan it was not possible to determine how the department envisaged transferring eNatis and services to the department/state by April 2012. The department did not have the internal capacity to take over the management and maintenance of eNatis," notes the report.
According to a legal opinion obtained by the department in May 2011, transport was only obliged to pay for software maintenance during the transfer management period. However, from June 2007, costs unrelated to software maintenance were paid to the consultant, totaling R936.2 million, found the AG.
According to the report, R574.8 million was paid between June 2007 and April 2010, which included R269 million for additional services such as hardware and network maintenance, hardware resources, network resources and software. In addition, R361.4 million was paid between May 2010 and March 2011, which included payments for third party suppliers.
No permission
In April 2010, Tasima requested that the contract be extended for five years, notes the AG. Its report states that the Road Traffic Management Corporation (RTMC) was of the opinion that the contract should be re-advertised and that the rates charged by the consultant were high.
"The department, however, adhered to the consultant's request without a competitive bidding process being followed. The department initiated a process of withdrawing the extension of the eNatis contract, but, as at February 2012, the extension was still in place."
In addition, the AG found that department did not have the power to procure information technology goods and services other than through the State Information Technology Agency.
In the report, the department responds that National Treasury has approved a fully capacitated trading entity from where the management and operation of eNatis will be performed and all services provided by the consultant will be transferred to the trading entity.
Transport is in the process of establishing the trading entity and has appointed consultants to assist with negotiations with the service provider to facilitate the transfer of services to the department or another service provider or both.
In addition, it will look into whether there is a need for further software development or only maintenance of the current software.
Polluted
Justice Project SA chairman Howard Dembovsky says that eNatis is "one of the most polluted databases in SA".
Dembovsky adds that: "A lot of money has been wasted on eNatis and for what's been spent, they could have had an awesome system with artificial intelligence and crime prevention measures. Not to mention they could have linked to all of the credit databases to check that the address details are current."
The eNatis system includes registers of motor vehicles, motor trade numbers, temporary and special permits, as well as driving licences and professional driving permits.
The biggest problem is that the data provided via municipalities is often not updated, such as when road users renew vehicle licences and fill in the change of address form, which the municipalities do not capture, says Dembovsky.
Dembovsky explains that, as a result, fines are not sent to the correct address, which could result in a summons being issued to the incorrect place, and drivers having a warrant out for their arrest if they were not aware that they had to be in court and missed the proceedings.
In addition, people who pay their licence fees at the post office cannot change addresses, as the post office has no access to the system to do this function, says Dembovsky. "If you put rubbish into it, you get rubbish out."
The system is not worth the money that has been paid for it and is flawed because of inaccuracies in the data, says Dembovsky. He explains that if, for example, a hit and run accident occurs and the address is not correct, the driver cannot be tracked.
Neither Tasima, nor the department, responded to a request for comment this morning.
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