Ethekwini billing bungle
Category Principal's Message
Durban - Two multi-million rand computer systems that should have made life simpler in eThekwini have caused serious problems for ratepayers and contractors who work for the metro.
The Revenue Management System (RMS) has resulted in residents not getting lights, water or sanitation bills. The system took more than R620 million and 10 years to become operational.
A second newly-installed system, municipal standard chart of accounts (mSCOA) has caused problems for contractors, many of whom have not been paid for more than two months. Some are facing financial ruin and have been unable to pay salaries.
According to the city’s policies, all small, medium and micro enterprises should be paid within 14 days of the date invoices are received, and big businesses within 30 days.
A plumbing contractor from Queensburgh said the city owed him R120 000. He said he had made numerous calls and visited the municipal offices but nobody could help him as there were problems with the new system.
The plumber, who has been working for the municipality since 1999, said he was struggling to feed his wife and children and pay the two people who worked for him.
He said the municipality also rented equipment from him but for the past few months he had not had compensation.
“It has been hard in the past two months as I wait for the city to pay me. We have survived on my wife’s freelance work. I am not certain how much longer we can do that.
“Despite not receiving payment, I have to do the jobs because if I refuse, I may not get any work from them. I have resorted to paying my workers R500 in bonus money just to keep them. I do not know how much longer I can handle this.”
Another plumber, in Umbilo, said: “We cannot afford to pay our staff. It is frustrating. It is three months since we submitted invoices.”
Another contractor, who also requested anonymity, said he had not been paid since May. He has had to take on other jobs to make ends meet.
“It has been tough. But this delay hasn’t led to any job losses in my business. I have been communicating with the municipality regarding payment. I have been doing business with it for more than five years but things have never been this bad.”
An electrician said he was owed R80 000. “We are all taking strain. I have five workers who need money to feed their families. When I told them I had not been paid, they thought that I was lying to avoid paying them.
“I understand there may be a problem with the system, but the municipality needs to know our livelihoods have been placed on hold because of it. It is not fair on us.”
City Treasurer Krish Kumar said he was aware of the contractors’ problems but the issue was being dealt with and the city was trying to fast-track payments.
“We are aware of this and we have been working overtime to catch up. If anyone hasn’t been paid in the past 30 days, we urge them to approach us and the payment will be expedited.
“When moving over to any new system, it is inevitable such issues will arise. However, the move to mSCOA was important for the municipality as this is a national system meant to benchmark municipalities across the country more effectively,” said Kumar.
With regards to utility bills, he said the RMS system was processing 1.1 million accounts a month. Since June 15, payments had been stopped. “Due to the volume we are dealing with, the cut-over to the system created a backlog. But by the end of July, the billing is expected to be back to normal.”
Durban - Two multi-million rand computer systems that should have made life simpler in eThekwini have caused serious problems for ratepayers and contractors who work for the metro.
The Revenue Management System (RMS) has resulted in residents not getting lights, water or sanitation bills. The system took more than R620 million and 10 years to become operational.
A second newly-installed system, municipal standard chart of accounts (mSCOA) has caused problems for contractors, many of whom have not been paid for more than two months. Some are facing financial ruin and have been unable to pay salaries.
According to the city’s policies, all small, medium and micro enterprises should be paid within 14 days of the date invoices are received, and big businesses within 30 days.
A plumbing contractor from Queensburgh said the city owed him R120 000. He said he had made numerous calls and visited the municipal offices but nobody could help him as there were problems with the new system.
The plumber, who has been working for the municipality since 1999, said he was struggling to feed his wife and children and pay the two people who worked for him.
He said the municipality also rented equipment from him but for the past few months he had not had compensation.
“It has been hard in the past two months as I wait for the city to pay me. We have survived on my wife’s freelance work. I am not certain how much longer we can do that.
“Despite not receiving payment, I have to do the jobs because if I refuse, I may not get any work from them. I have resorted to paying my workers R500 in bonus money just to keep them. I do not know how much longer I can handle this.”
Another plumber, in Umbilo, said: “We cannot afford to pay our staff. It is frustrating. It is three months since we submitted invoices.”
Another contractor, who also requested anonymity, said he had not been paid since May. He has had to take on other jobs to make ends meet.
“It has been tough. But this delay hasn’t led to any job losses in my business. I have been communicating with the municipality regarding payment. I have been doing business with it for more than five years but things have never been this bad.”
An electrician said he was owed R80 000. “We are all taking strain. I have five workers who need money to feed their families. When I told them I had not been paid, they thought that I was lying to avoid paying them.
“I understand there may be a problem with the system, but the municipality needs to know our livelihoods have been placed on hold because of it. It is not fair on us.”
City Treasurer Krish Kumar said he was aware of the contractors’ problems but the issue was being dealt with and the city was trying to fast-track payments.
“We are aware of this and we have been working overtime to catch up. If anyone hasn’t been paid in the past 30 days, we urge them to approach us and the payment will be expedited.
“When moving over to any new system, it is inevitable such issues will arise. However, the move to mSCOA was important for the municipality as this is a national system meant to benchmark municipalities across the country more effectively,” said Kumar.
With regards to utility bills, he said the RMS system was processing 1.1 million accounts a month. Since June 15, payments had been stopped. “Due to the volume we are dealing with, the cut-over to the system created a backlog. But by the end of July, the billing is expected to be back to normal.”
Author: Sunday Tribune
