Objectives

The primary objective of this tender is to procure a suitable debt collection and recovery system for uMshwathi Municipality. The system aims to:

• Assess the adequacy and effectiveness of existing debt collection, legal, and recovery processes in line with applicable laws, regulations, and internal policies.
• Identify weaknesses in debt collection, legal, and recovery processes and provide monthly reports to inform recommendations to Council portfolio Committees.
• Strengthen internal controls, improve collection rates, and prevent debtors from prescribing.
• Evaluate the efficiencies of Debt Management practices, Legal, and Post-recovery processes currently in place.
• Review and enhance the adequacy of Debt Management, Financial Support, and SOPs through detailed reporting.
• Design and implement additional controls to improve debt recovery processes.
• Provide reports to identify weaknesses and recommend corrective measures, including disciplinary actions.
• Install an Indigent verification system, including training and linkage to CAATs, to verify indigent applicants and debt write-offs.
• Facilitate communication of outcomes via SMS and enable integration with the current financial system (Sage).

Scope

The scope encompasses the procurement and implementation of a debt collection and recovery system that:

• Encompasses legal and manual debt recovery processes, with a focus on improving efficiency and accuracy.
• Includes installation of an Indigent verification system, uploading applications, verifying applicant information, and generating approval/disapproval letters.
• Provides monthly reporting, gap analysis, and process review to enhance revenue collection.
• Integrates with the existing financial management system (FMS - Sage).
• Includes training for staff and installation of necessary modules.

Technical Requirements

• The system must assess existing debt recovery processes, legal procedures, and internal controls.
• Capability to generate detailed monthly reports and recommendations.
• Installation of an Indigent verification module with documentation upload, verification, and communication features.
• Linkage to CAATs for audit purposes.
• Ability to communicate outcomes via SMS.
• Integration with the current FMS (Sage) system at the service provider’s cost.
• Provide access to credit bureaus (minimum of 2 or 3) for data search and verification.
• Include licensed collection software with proof of licensing.
• Ensure system security, confidentiality, and compliance with relevant laws.

Skills Requirements

• Proven experience in debt recovery services, with at least 4 or more appointments letters from public sector clients.
• Experience in municipal debt collection and management, including handling debtor accounts and legal processes.
• Legal expertise with attorneys experienced in debt collection and high court proceedings.
• Technical proficiency in collection software, credit bureau data integration, and verification systems.
• Ability to install, configure, and train staff on the new system.
• Capability to provide ongoing support, maintenance, and system upgrades.
• Knowledge of municipal financial systems, legal compliance, and audit requirements.
• Demonstrated ability to generate comprehensive reports and provide strategic recommendations.