INFOTECH: Labour Dept Blows R1.9b In Siemens Contract Gone Wrong
Recent Western Cape Business News
The department of Labour has lost R1.9 billion because of a mismanaged IT contract with Siemens.
The contract with Siemens was entered into in December 2002 but there have not been any results out of it. The company (Siemens) failed to deliver both hard and software’s despite being paid R1.9 billion in respect of such a contract.
The Portfolio Committee of labour was informed by the department of Labour yesterday in Parliament about this state of affairs. The department also claims the project was carried out as a result of an initiative from the Treasury Department.
COPE spokesperson on Labour, Mr. Papi Kganare says “this project is a public- private partnership gone wrong. Unfortunately the tax payers have been taken for a ride.”
Mr Kganare believes the short-cut to appoint Accenture by not following the normal procurement system might also result into a repeat of Siemens experience.
It is not clear how much will the Accenture contract cost the department. “It is not clear why the department waited for the Siemens report to come to an end and only then acquire about services of Accenture through a process which is not necessarily transparent,” Kganare concluded.
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