The new financial system called Phoenix belongs to Vesta Technical Services and was implemented in 1 July this year. Continuous problems relating to billing eventually led to employees embarking on a strike early in December.
The fact that accounts were not going out to residents and the subsequent financial losses reportedly led to council approving a recommendation that could see the contract terminated.
The recommendation states that: “the service level agreement between Vesta Technical Services and Council be terminated pending the advice from Provincial and National Treasury.”
Following the approval, Council was tasked with requesting outstanding receipt information from Vesta. With the necessary information the finance department will now be able to capture all October and November’s billing information on BCX’s Venus (previous financial system). This will enable the municipality to issue statements to the ratepayers.
Council will further enter into a service level agreement with BCX to provide a financial system that is mSCOA compliant. This could see the municipality upgrade from the BCX Venus to the BCX Solar system.
Opposition parties requested that a report be tabled outlining the money paid to Vesta Technical Services (reported as R3,9 million) and how the money will be recovered.
The Municipal Manager, Roger Nkhumise said during the meeting: “It must be noted that we are still waiting for advice from provincial and national treasury regarding the processes relating to the termination of services.
“The Venus system is also not mscoa compliant and the upgrade to Solar will have to follow supply chain management processes.”
Municipalities had until 30 June this year to become mSCOA compliant as outlined by National Treasury.