DA set to pay top city officials further bonuses: ANC calls for audit of ERP project

DA set to pay top city officials further bonuses: ANC calls for audit of ERP project

2 October 2002

The DA is planning to use `savings` from the 2001/2002 budget for security at public transport interchanges to pay for further bonuses to top city officials.

A bonus of R2.35 million is to be paid to officials and consultants working on the ERP project. R400 000.00 of the payment for these bonuses is to come from `savings` from the 2001/2002 budget for security at public transport interchanges. This decision of Belinda Walker and the DA has drawn sharp criticism from the ANC.

"Using money from the safety budget to pay bonuses to their officials is a disgrace, particularly because of the crime rate.

The DA has lost all respect for ratepayers," said ANC Executive Councillor Saleem Mowzer, who first exposed the bonuses to the DA`s top city officials earlier this month.

"Top officials who recently received huge bonuses, are to receive R1 million of the R2.35 million bonus." The ANC is calling for these bonuses to be reviewed, and is also calling for a full independent audit of the ERP project. The bonuses are to be paid for the ERP project.

The ERP project has been poorly managed. Delays ­ because of Belinda Walker and the DA`s poor management - have resulted in the cost of the project escalating from R265 million to R325 million.

Yet Belinda Walker sees it fit to reward the officials and consultants with bonuses. Earlier this month the DA paid the executive director responsible for the ERP project a `performance` bonus of R102 195.09.

Belinda Walker`s mismanagement of the ERP project can have serious consequences for the city. FoxMeyer, the fourth largest pharmaceutical manufacturer in the US, is suing its consultants for $500 million (or about R10 billion), alleging that its enterprise resource planning (ERP) installation forced the firm into bankruptcy (Business Report of 19 September 2002).

The ANC indicated that it would initiate a full audit and review of the way in which the ERP project has been managed, particularly of the role of the DA`s Belinda Walker, who is responsible for this project. "We cannot continue to put the city at risk because of the DA`s poor management of the ERP project," said Mowzer.

In what appears to be a related issue, Mowzer claims that an email from the head of finance was deleted from his computer. The email is a scathing attack on the poor management of the ERP project, which the executive director of finance describes as "a totally unsatisfactory state of affairs".

"This email confirms the ANC`s concerns about the mismanagement of the project which is probably why he had the mail deleted from my computer", said Mowzer. "I wonder on whose instructions he had the email deleted."

Issued by:
African National Congress - Western Cape

Peter Gabriel (ANC Chief Whip) 083 629 0883
Clifford Sitonga (ANC City of Cape Town Caucus Leader) 083 640 4817
Danile Landingwe (ANC Executive Councillor) 082 806 0084
Thozama Mlanjeni (ANC Executive Councillor) 082 806 0081
Saleem Mowzer (ANC Executive Councillor) 082 806 8135