Durban - The eThekwini Municipality should consider scrapping the disastrous billing system, the Revenue Management System (RMS), which is still not ready after more than 10 years and has already cost more than R620 million.
In a rare show of unity, incensed councillors in the municipal public accounts committee grilled Leepy Shabangu, the owner of Liepzig Advisory IT - the consultancy responsible for implementing the project - over the uncertainty of the July 1 “go live” date. Some said they now needed to seriously consider cutting their losses and pulling the plug on the project.
ANC councillors led the onslaught, supported by the DA and NFP. Shabangu, however, stuck to his guns and was adamant that the deadline would be met.
In March, Shabangu told the city’s executive committee that billing for most of the services, including rates, was already running on RMS with residential water and electricity outstanding.
On Tuesday, he warned the committee that “rushing implementation” would lead to chaos similar to that experienced by Johannesburg in 2011.
Councillor Stanley Cele was first to lay into Shabangu, putting it to him that the project would not go live in July, as little progress had been made since his presentation four weeks ago.
“This won’t even go live next January. I find it strange that the most important things that should have been started with are the last. When you talk RMS, surely you must think of electricity and water. Those are the basics that the municipality can collect money from - yet they are last to be implemented?”
Cele blasted Liepzig, saying: “Last year when you came with a presentation, you said the very same thing. I ask you guys to tell us when exactly you think this thing will be implemented, rather than misleading us.”
Councillor Nompumelelo Chabane was next, saying she had “lost hope in this whole thing” and suggested that “come July, let’s review this thing and call it quits”.
“People must just enjoy municipal resources and services free of charge, because we are spending money to get money which we do not get. Maybe that’s not what I’m saying, ultimately, but read between the lines the disappointment,” she said, with the committee breaking into laughter.
Councillor Pearl Luthuli was seething, demanding why no one had been held responsible.
“That’s where the problem is… Maybe in two years there will be someone else sitting here telling us exactly what you are telling us. We have never held anyone responsible. All we did was, we just kept pumping in money… and we were made to understand how much we need this.”
Committee chairman Sipho Kaunda said Liepzig was left with 35 or 36 days before the project went live. He said it was alarming that there were still grey areas.
Councillor Sibongile Nhlapo said: “With due respect, this is impossible. Personally, what I need to know is, what does their contract entail? All these extensions, how much are we paying?”
City manager S’bu Sithole attempted to allay fears, saying progress had been made and the project was 90% ready to go live.
He said that when the project was evaluated in 2013, the council had looked at either cutting its losses or seeing what could be saved.
“It was within this context that we have this new team project managing what is being done.”
He hinted that the city would abandon the project should the latest development fail to bring results: “Delays have not impacted on the overall budget, but we have requested that we try our luck once more with the implementation.”
He did not elaborate on this.
The DA Chief Whip in Parliament and former eThekwini executive member, John Steenhuisen, said the city had two options, to either abort the project, or put a cap on costs paid and penalise the developer for any further delays.
“They should have done a proper cost analysis in terms of what system would be required. The RMS system is a single solution. Other cities have taken an end-to-end system, the City of Cape Town uses the SAP system which cost R350m at the time… it included full financials,” he said.
“You either put a cap on it with the developers and there’s some clawback system so that when it is not delivered and gone live, you penalise the developer, or you reach a point where you just have to pull the plug. These are the only two options,
“ said Steenhuisen.
The Mercury