|
NLTB ANNOUNCES I.T. CONTRACT
At its meeting on Friday 12th March, the Board of NLTB approved new arrangements for its information technology management. It will use an internationally-recognised software system, SAP.
The NLTB's IT needs will be supplied by PacificConnex (PCX), a joint venture of its subsidiary company, Vanua Development Corporation (VDC). VDC will hold a controlling interest in PacificConnex. Fortynine per cent of its shares are to be held by TUI Management Services. This is the investment company of Mr. Ballu Khan, a Fiji-born businessman, with wide international experience in IT.
This comprehensive statement is issued to clear doubts and misconceptions that may have arisen as a result of recent media coverage on the subject.
Background
-
When the current Management of NLTB took office in 2002, one of the biggest issues it faced after having settled into office was that of its information system. Confidentiality, Security and Data Integrity were the initial areas of concern. It quickly became apparent that the development of a fully integrated IT system was to be the Way Forward.
-
The local firm of Software Factory Ltd. (SFL) was engaged to perform a review of NLTB's system, and their preliminary findings were submitted on 8th July, 2003. SFL subsequently recommended an IT Roadmap for NLTB which was adopted.
-
Once the specifications for the new system had been established, an expression of interest to develop the IT Roadmap was advertised in the three local dailies on 20th to 22nd January, 2004. This attracted 14 individuals and companies, 4 of which were approved to submit proposals:
1. Information Technology Services
2. Software Factory Limited
3. DATEC (Fiji) Limited
4. Tui Consulting
-
At its meeting on 25th February 2004, the Board approved in principle the bid by Tui Consulting, Mr. Ballu Khan's main operating company. The Board has since also agreed to Mr. Khan assigning his tender obligations to the PacificConnex joint venture. Details of this joint venture were completed after agreement had been reached in principle on the IT tender by Tui Consulting.
-
Price was only one of the considerations in the tender evaluation process. The primary consideration was to develop a fully integrated system. This is of crucial importance as NLTB now looks after around 90% of all land in Fiji, with a current porfolio of 32,000+ leases.
PacificConnex (PCX) Joint Venture
PCX is a major initiative by NLTB, through its wholly owned subsidiary VDC to acquire greater indigenous Fijian involvement in Fiji's developing IT industry. As well as handling the NLTB's requirements, it will be bidding for additional IT work. Staff of the NLTB's IT division will be transferred to PacificConnex which expects to become a major IT employer. Tui Consulting will provide the company with technical knowledge and skills training. The NLTB will maintain control of board information through its control interest in PCX, by its subsidiary Vanua Development Corporation.
Price & Conditions of Approval
-
As earlier announced, the NLTB renegotiated the tender price which has now been reduced from $1.8 million to $1.3 million per year. PCX will provide this service for 12 years. NLTB has the option of withdrawing from the arrangements if specific conditions are not met.
-
Our records show that since NLTB's original computerisation in 1975, the cost of providing IT services has totalled $35,357,143, or an average of $1,178,571 per year.
-
The cost of the new system to be introduced will therefore cost NLTB an additional $121,429 per year on average. Our assessment is that the benefits that will accrue to NLTB as a result of the upgrade will far outweigh the additional $121,429 per year.
-
There is no doubt that we have negotiated the best solution for the NLTB. One of the unsuccessful bidders, Software Factory Ltd., wrote to us after being informed of the Board's decision saying "We congratulate you and the Board for deciding to go with SAP. As you are now probably aware, SAP is the number one enterprise-wide financial software solution in the world"
-
TUI Consulting specialises in implementing SAP. It has assisted many international companies and organisations improve business opportunities through effective use of SAP. It has won contracts in South East Asia, the Pacific, the US, Canada and Europe.
-
SAP applications will be used by PacificConnex in its work for the NLTB. It will allow us to fully integrate our land management data along with our human resource and financial information systems. PacificConnex has the sole rights for the use of the SAP system in Fiji.
Political Influence in the Tender Decision
-
The Board rejects totally suggestions that political influence has been a factor in its decision. It is therefore mischievous and uncalled for that political considerations were a factor.
-
The issue is obviously now being politicised by some people with a particular agenda. This tender has no connection whatsoever with the SDL Party or the Duavata Initiative Ltd.
-
It is insulting and disrespectful to suggest that His Excellency the President, the Honourable Prime Minister and leading chiefs on the Board representing the Fijian landowners, have not followed proper procedures or acted in the best interests of the landowners and the Fijian people.
Conclusion
The commercial decisions the Board has taken will bring major benefits to the landowners and all other stakeholders through more effective information management. The Vanua Development Corporation and its first joint venture in PacificConnex will be working to increase indigenous Fijian participation in the economy. Mr. Ballu Khan is a respected and successful entrepreneur from Fiji. His personal interest and assistance to education and sports (rugby) in Fiji are there for all to see. We look forward to working with him.
I am leaving at the weekend with Mr. Mojito Mua, the NLTB's Strategic Change Manager, to study a project recently completed by TUI Consulting in Tacoma in Washington State in the US. This US$50 million contract for the Tacoma Municipal Council, was completed by TUI Consulting on time and on budget. It will be a valuable opportunity for Mr. Mua and me to see how the SAP system works. Tacoma is the location of TUI Consulting corporate headquarters.
One media outlet has persistently tried to impute improper motives and unethical practices to NLTB's Board and Management, when in fact there is none.
|
|
