Not ‘all systems go’ for city

GLITCHES with its new procurement system have had a negative effect on service delivery in the City of uMhlathuze, but assurance is given that it is ‘a work in progress’ that is slowly being resolved.

To that end, a dedicated ‘war room’ team will meet weekly to get service delivery on track.

The matter was unpacked during a special executive committee meeting last week Wednesday, when the mid-year budget review was debated ahead of the looming adjustments budget in February.

With capital expenditure spending as low as 14.6% halfway through the financial year, this has become a matter for concern – especially as it was partially linked to non-payment of service providers and vendors, and thus the inability to procure essential stores items and spares.

It was admitted that there were challenges with stocking materials at stores, with user departments hampered in performing their duties.

This was especially problematic for the electricity, water and parks sections, resulting in issues ranging from uncut grass to extended power outages.

City Chief Financial Officer, Mxolisi Kunene, admitted that the change from the old Promise procurement system to new SAP ERP system had not run smoothly, but said this was to be expected.

‘This is a very complex system that is not easy to implement, and it is there to enforce proper financial management into the system, which must be built over time together with the service provider.

‘It has affected service delivery, but not because of poor management.

‘Among other differences, the new system does not allow payment if there is no contract in place.’

Mayor Mdu Mhlongo said the new system ‘must be used’ and a team would work round the clock to ensure its optimal use.

However, he cautioned councillors who ‘use genuine concerns of citizens to gain political points’.

‘Nobody is happy that grass is not cut, but that is no reason to act more disgruntled and concerned than others by posting comments on social media.

‘This might result in unstable people taking dangerous actions that might even place lives at risk.

‘Besides the fact that our standing orders do not allow this creation of hysteria, councillors must not take over issues that must first go through the proper administrative process.

‘In this case, the war room will report service delivery issues to the executive management, and from there information will flow to political offices.

The mayor called on all entities to work together to eliminate the problems and create better service delivery.

The new SAP system was not the only cause of low capex spending.

‘There was a slow start in the preparation of tenders,’ said CFO Kunene, ‘with only 16 of the 40 tenders issued going to the bid committee.’

On the positive side, the debt collection rate is more than 98%, while the operational budget boasts a surplus of R92-million and the municipality is clearly liquid in terms of cash flow.

However, business, household, employee and councillor debt levels were noted as cause for concern.

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