IT OUTFIT SUES OVER £170M AXED PROJECT

South Wales Evening Post - 2 March 2007

Swansea Council is being sued by the IT firm it brought in to revolutionise its computer systems.

Capgemini, the company asked to deliver the council's £170 million eGovernment project, has submitted a claim against the council.

It is reportedly looking for extra cash because of delays implementing a new payroll system.

It is understood the row could result in a "significant financial impact" on council funds.

The two sides are believed to be pointing the finger at one another over the delays.

It is the latest chapter in the controversial scheme, and comes just weeks after the council dismissed the possibility of any penalty charges for dropping the second phase.

Service@Swansea would have seen an all-singing, all-dancing, one-stop shop for council queries set up.

But councillors axed the scheme because of spiralling costs.

Instead they are expected to buy a system used by Cardiff Council for less than £1 million - a fraction of the £83 million bill for Service@Swansea

But the new service will not have a call centre with residents having to deal with council staff face to face instead.

The whole Service@Swansea saga has been an embarrassment to council officers who failed to heed warnings given by council staff when they took strike action against the plans in 2004.

Councillor Rene Kinzett, who chairs the council's eGovernment working party, said the exact cost of the claim was not known but insisted promised saving levels had not been achieved.

He said: "We don't know the full story, there are claims and counter-claims.

"We, as councillors, are stuck in the middle, being kept in the dark. It would be in the several tens of thousands, it would be a significant amount."

The council is still working with Capgemini to deliver the first phase of the eGovernment project but Councillor Kinzett is concerned about the relationship.

He said: "What is the atmosphere like? What is the working environment like if they are throwing lawsuits at each other?

"And what happened about this being a launchpad for the rest of Wales?"

Capgemini declined to comment on the claim on grounds of client confidentiality.

The project was highlighted in the budget as a financial risk.

A report said: "Delay in implementing new systems has resulted in a claim for additional payments by the contractor.


Your Views

I saw first hand how this administration works when they tried to close Dylan Thomas school. They had an idea but did not understand the issues or listen to facts. No-one had a clue about the total costs or how the money would be found. I believe that exactly the same poor judgement has been involved in Service@Swansea. those responsible shoudl resign or be kicked out of office.
Peter, Swansea

I think that Chris Holley and his cabinet should seriously consider if they are doing Swansea any good. They did not expect to be in office before the last election and they are either not listening to advice or else making it up as they go along. All the spin in the world is not going to hide a basic lack of substance. We know from Ioan Richard's e-mail that it was only the money that put them in charge.
Jackie Pritchard, Swansea

How on earth do our Council manage to get themselves into situations like these? What really worries me is that the same local authority has the cheek to be offering debt advice to people!
Kim, UplandsI am told that two people who signed off the Service@Swansea contacts, Bob Carter and Tim Thorogood, no longer work for Swansea Council. How convenient!
Francis, Swansea

Didnt I read that only five councillors were involved in the contract? Well let them foot the bill. I am fed up of seeing my council tax and parking charges going up to pay for their incompetence.
Clive, Marina

This whole thing gets worse every time I read about it. They keep claiming to be an improving council but I see very littl evidnce of it. Perhaps they should have less people writing press releases and more cleaning the streets.
Anthony Evans, Swansea

As usual when Local Government deals with big business there's two things to remeber. There no such thing as a free lunch. Wait for the pain once the Honey moon period is over. Whats this all going to costs the hard pressed Council Tax payer AGAIN !!!
Kevin, Clydach

The only risk to the Swansea council tax payer is this Lib Dem Administration which is run by a bunch of incompetent dimwits.
voter, Swansea