A multimillion-rand project meant to overhaul the Nelson Mandela Bay Municipality’s computer and financial systems is set to cost ratepayers more than four times the tendered price of R47.5-million.
The municipality will have to fork out R215-million if it wants the mSCOA (Municipal Standard Chart of Accounts) and the Enterprise Management Solutions (EMS) fully running.
The massive undertaking by the city three years ago is set to change the way it draws up its financial reports and will ensure that one computer system links all the municipal departments‚ instead of 50 at present.
mSCOA is a national Treasury requirement for all municipalities to link up with the national government and EMS is a new internal municipal system.
Implementing the project has been marred by several setbacks due to constant changes in the scope and poor project management.
The Treasury‚ through its Cities Support Programme‚ reviewed the project and found that the contract‚ when awarded‚ was ambitiously under-priced‚ according to a national Treasury report that formed part of a mayoral committee agenda.
- The Herald
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