South Wales Evening Post - 15 June 2007
A senior manager at Swansea Council has admitted millions of pounds of savings are being missed because an expensive IT system just isn't working properly.
Jack Straw, the council's director of social services and housing, was giving evidence to a panel of councillors about Swansea Council's £83 million IT contract with Capgemini.
The Swansea-based IT firm won the deal to supply new computers and software for the council. As well as replacing the old systems it promised savings of around £17 million over a 10-year period. However, since the new software was introduced those projections have been slashed and it will now be lucky to break even.
Mr Straw was being quizzed by members of Swansea Council's Performance Scrutiny Board.
He told them that his department had been forced to recruit more people since the new system was introduced.
He said: "These savings haven't been delivered at the moment because the systems are not yet working in the way that was intended when the savings were calculated.
"My department's posts haven't been saved and we're having to employ more people just to keep up with the work."
The council is holding a separate independent inquiry into the way the contract was handled to see whether any staff should face disciplinary action.
Before the deal was signed some department heads sent letters to the council's former chief executive Tim Thorogood telling him of concerns about the possible savings.
Mr Straw went on to say: "I'm not trying to pass the buck, but there were a group of people who were knowledgeable about the new system from within the council and externally, who worked out what we should be able to save. What we signed off was the saving we would make if the system is working the way it should - which it isn't.
"We are all still working towards making the savings, because we've got to, but I can't say we'll ever get there unless the system works properly."
Steve Evans, interim director of finance; Reena Owen, director of environment; Chris Maggs, head of adult services; Martin Nicholls, head of corporate building; and the council's current chief executive Paul Smith attended Wednesday's meeting.
They agreed with Mr Straw and said problems arose when the system was installed but didn't work properly with the council's existing IT systems - something that had not been foreseen.
Mrs Owen also admitted that the need for council staff to be given training in the new systems had also been "underestimated".
Groups from each of their departments are working with Capgemini to iron the gremlins out.Scrutiny into the eGovernment system has been ongoing since March.
Councillor Rene Kinzett, the board's chairman, said Wednesday's evidence will be used when representatives from Capgemini are quizzed on Wednesday, July 11. It is anticipated the board's final report will be published in September.
He said: "The evidence will really help us form our conclusions and will form part of our investigation. We've got quite a few questions to ask Capgemini."
