South Wales Evening Post - 8 August 2007
Swansea MP Alan Williams has launched a stinging attack on Swansea Council's £83 million IT scheme.
Mr Williams has labelled the deal, which is falling way behind on expected savings, as "an exercise in complete incompetence".
Swansea Council signed the deal with city-based IT firm Capgemini last year with the promise of around £17 million worth of efficiency savings. It has now become clear that the scheme will be lucky to break even.
Mr Williams, a member of Westminster's Public Accounts Committee, was speaking after raising concerns about Swansea Council's eGovernment contract with the auditor general for Wales, Jeremy Colman.
He has also criticised the deal with Swansea-based IT firm Capgemini, saying: "This case is likely to be rich in lessons."
There are already a number of investigations into the deal, including an internal one into the role of senior managers at the council.
Mr Colman said: "The reason for all this investigatory activity is that the programme in question now appears to fall well short of the high expectations on which it was founded. In particular, the contract with Capgemini does not include the call centre that formed part of the original specification for the programme.
"It was dropped on the grounds of affordability in 2005, but without, at that time, a full appraisal of the options available to the council to restore the programme to affordability."
Mr Colman also points out that promised savings targets are likely to be missed.
Mr Williams said he had warned Swansea Council about the dangers of taking on a big IT scheme and said not enough was done to safeguard tax-payers' money.
He said: "The eGovernment scheme is an exercise in complete incompetence. Swansea Council has only got part of what it wanted from the scheme.
"They informed me that they were going to do it and with my experience of public accounts I warned them of the pitfalls.
"I pointed out to them that the public accounts committee has done more investigations into failed IT systems than anything else."
External auditors Pricewaterhouse Coopers (PwC) slated the council in a report that was published earlier this year.
Council leaders were forced to drop a telephone and internet customer contact centre in favour of a cheaper face-to-face option supplied by Cardiff Council after costs spiralled.
Mr Colman added: "PwC's work is throwing some light on the reasons why the prospects for the programme have deteriorated, but it is too early to reach conclusive judgements on that."
Swansea Council's cabinet member for eGovernment, Mary Jones, said: "The auditors have highlighted that there are lessons to be learned from the way the programme was procured.
"The council accepts these points and is now working with PwC to put forward an action plan to make sure that the lessons are learned for future projects."
