REPORT ON THE STATUS OF THE DOJ & CD MMT PPP
Presented to the JCPS Portfolio Committee
6 March 2007
The Committee was presented with comprehensive documentation on 31 January 2006. This report serves to present an overview and update on the progression of the MMT PPP.
The MMT PPP has been progressed in certain respects including:
· The preparation of a set of Annual Financial Statements for MMT for the full 2005/06 year for all but 47 courts. This is the first set of AFS prepared for a full year by the DoJ & CD. An unaudited set of these AFS is attached.
· The acquisition, via a tender process, of the E4SE Project Management package to facilitate the tracking and management of the implementation of the MMT PPP at all user sites (all courts & other sites such as Masters Offices etc) - Complete.
· Updating records at a court level and the capture of manual information on maintenance obligors and beneficiaries at individual courts to an electronic spreadsheet template for uploading to the E4SE Project Management suite of programs that has the capacity to export the data to any of the short listed bidders - Some 40% of all court sites are complete with the balance being work in progress but on track for completion before a preferred bidder's developed system is ready for implementation at individual user sites.
· The acquisition of computer hardware for user sites with a minimum allocation of two computers and two printers together with LAN cabling etc - Complete.
· The migration from a manual record keeping system at courts to the JDAS 4 version of the electronic system that is to be further developed by the preferred bidder to JDAS version 5 ( version 5 will have the functionality to enable national report writing via a central database etc) - 5% Complete / Those that are not migrated to JDAS version 4 will be migrated directly to JDAS version 5.
· The implementation of an electronic funds transfer option to maintenance beneficiaries at 55 courts where we have assisted 9319 beneficiaries to open bank accounts so that they can receive payments directly into their bank accounts. This means that they do not have to come to court to receive payment. In total, between 1 April 2006 to 20 February 2007, we have paid R24 107 734.46 to these beneficiaries. - Further court conversions are work in progress.
· The training of trainers for each court area in the country on the MMT PPP initial conversion phases ( MMT PPP conceptual framework, data record scanning & migration, banking systems and EFT payment conversion requirements).
· The briefing and appointment of the Technical, legal, Finance and BEE MMT PPP evaluation sub-committees.
· The receipt of tender documentation on 5 February 2007 that was issued on 6 October 2006 from four of the six short listed bidders.
· Tender bids were received from:
− The First National Bank Consortium
− The Standard Bank Consortium
− The Ubulungisa Consortium ( ABSA etc)
− The Umusa Consortium ( Blue label etc)
· Tender bids were not submitted by:
− The Nedbank Consortium
− The Thebe Consortium
· The evaluation process of the MMT PPP bids is work in progress.
Specifications of the New Operating Model
The output specifications of the project include the following:
· Produce annual financial statements on each Monies in Trust type;
· Provide a financial management systems solution and manage Monies in Trust within a sound system of financial management in such a manner that it achieves an unqualified audit report from the Auditor-General; Ensure service quality;
· Enable the DoJ & CD to access financial information relating to each case of Monies in Trust;
· Accept trust money paid-in in a convenient, safe & controlled manner;
· Keep trust money safe;
· Pay trust money out according to the DoJ & CD's authorised instructions to the correct party in a convenient, safe & controlled manner;
· A central Data Integration Management System;
· A central and decentralized data back-up system;
· Banking Services;
· Cash Management in support of the DoJ & CD Treasury Processes;
· Cash in Transit services where required until total cash handling is phased-out;
· Accreditation Management of Receiving and Payment Sub-contractors Mobile Payment Units where necessary;
· Banking Cash Hall Services at 12 identified Mega Courts;
· Provide a choice and free channel to beneficiaries for receiving their monies;
· Centralised Cheque and Postal Order Banking Collection Services;
· Employer Payment Integration (Maintenance);
· Upgraded Justice Deposit Account System (JDAS) software for use at office level for administrative functions;
· Provide training on the aforementioned to departmental train-the-trainers;
· Provide call centre services to the public as well as internal clients;
· Second staff to a Project Management Office for the duration of the contract;
· Change Management and Communications Campaign;
· Provide a Banking Trust System in respect of Master's Offices.
The next phase of the project will concentrate on maintenance as this is where the biggest positive impact of service delivery will be visible. Bidders are expected to propose a secure system whereby maintenance payments will be received directly from obligors into a central facility by electronic means or by cheques, postal order or cash and that these monies will then be disbursed directly to beneficiaries in a secure manner, either by way of depositing the monies into their bank accounts (for which the department, in certain instances will carry the banking costs for the first deposit and withdrawal per month) or by way of cash (if the beneficiary prefers this option) at a facility or sub-contractor of the private party within a five kilometer radius from where they currently receive their monies.
The Department has a funding envelope of R 100 million per financial year (this funding envelope will, if necessary be increased by the annual inflationary increases granted by National Treasury).
Expected Timeframes for the Implementation of the New System
The evaluation of the tender bids has commenced and after the due processes attached to a PPP have been followed, signing of an agreement with the successful bidder is envisaged to occur before the end of September 2007. The system is expected to be developed by December 2007 and the piloting of the system at selected centres is expected to be finalised by end of March 2008. Full implementation of the new system is envisaged to take place before end of June 2008.
28 February 2007
Annexure 1 : Photo of three of the four tender bids received Attached: Unaudited MMT AFS