23 November 2005
Swansea taxpayers could face a bill for millions if the council's deal with IT firm Capgemini falls through, it has been claimed.The council is believed to have been given an ultimatum by the firm to agree a deal before Christmas or it will pull out, according to County Hall sources. Both the council and Capgemini strongly dismissed the claim.But if the company was to walk away it could leave Swansea liable to a huge bill from Capgemini for work already done and still needing a way of delivering its e-Government programme - the drive to modernise council systems and practices in a bid to create millions in efficiency savings and improve access to the council through call and drop-in centres.A report giving permission for the deal with Capgemini to be done was due to go to cabinet tomorrow, but has been put back.It is understood Independent members of the Lib-Dem, Independent and Conservative coalition have voiced concerns and asked for more information.But according to a source on the LIC coalition-linked Inside Swansea website there are serious risks if the deal does not go through.He said: "The cost of not proceeding will run into millions of pounds in terms of the money payable to Capgemini for work already done. It is also the case that if we do not proceed we will still need to replace systems and equipment that is slowly grinding to a halt."That will also cost millions. Walking away from this project is not an easy option."A deal to transfer council IT staff to Capgemini was to be agreed by July, but has still not been signed.A spokesman for Swansea Council, asked about the fears the council could be slapped with a huge bill, said: "Cabinet chose Capgemini as its preferred partner a year ago and since then a lot of detailed work has been done by both partners on the scope, the terms and the conditions of the contract."Before cabinet makes a final decision on whether or not to proceed with the contract it is appropriate that it is briefed on the implications of its decision in terms of value for money and the long-term effect on improving services to the people of Swansea."As with all projects of this size and scope, it is for cabinet to make a choice about the next steps."Capgemini and the council are committed to the e-Government programme and claims that a deal must be agreed by Christmas are not true."Council leader Chris Holley said Capgemini was the council's preferred partner for delivering the e-Government programme and that the council would push ahead with the deal.He said the council had to modernise and that doing so would help attract more business to the city."The Government are telling us that we have to go down the road of e-Government and are telling us through the Gershon review (investigation into possible efficiency savings in local and central government) that we have to make efficiency saving," he said.
