The contract requires the company to manage
The uptake of specialised financial
services by municipalities involved in waste management can improve revenue
collection and the efficiency of landfill sites, says multidisciplinary
engineering firm BVi Consulting Engineers.
The company notes that by
employing financial administration contractors, the public’s willingness to pay
for waste disposal will significantly increase once it realises that there is an
effective, equally enforced and, hence, fair financial system in place.
BVi can do this by controlling vehicle access to landfill sites;
ensuring that landfill users are charged correctly, accurately and timeously;
controlling the collection process; and by managing in and outbound tele- phonic
call centres.
“A financial administrator plays an integral role in the
landfill management process and integrates different role-players such as the
owner, users, site contractors, weighbridge operators, weighbridge suppliers and
software suppliers,” explains BVi Ekurhuleni metropolitan municipality landfill
site financial administration project financial director and leader Stefan de
Meillon.
The appointment of an external financial administrator
significantly reduces the financial risk, especially in terms of fraud, which is
an ever-increasing challenge at landfill sites.
“Despite efforts to
close loopholes, fraud remains a risk owing to a number of factors, including
the nature of the weighbridge process, which requires a human component; the
weighbridge typically being situated in a physically remote location; and the
transport industry being highly price competitive,” notes De Meillon.
Further, disaggregating the roles and responsibilities of the three
role-players – the owner, the landfill operator and the financial administrator
– results in a balance of power, which provides checks and balances for all
aspects of the process.
Through its financial administration service,
BVi can also provide a client with a range of reports containing financial and
statistical data, on which projections and other management decisions can be
based, explains De Meillon.
The contract requires the company to manage
all the functions relating to the financial administration of all five of the
municipality’s landfill sites and one privately owned site, which is also being
used by the municipality.
The municipal sites comprise the Rooikraal
landfill site, in Boksburg; the Simmer and Jack landfill site, in Germiston; the
Weltevreden landfill site, in Brakpan; the Rietfontein landfill site, in
Springs; and the Platkop landfill site, in Vosloorus.
The contract also
requires BVi to collect raw data from the weighbridges, invoice the users and
ensure that the charges are paid timeously.
The large number of
transactions, vehicles and users of Ekurhuleni’s landfills pose a challenge in
trying to invoice users on time. Therefore, to achieve the efficient running of
operations, the company has invested in internally-developed software systems,
which enable statements to be issued to users before the fifth day after the end
of the month.
“We have also developed a range of reports that were not
previously available. These reports link tonnages and waste-type reports to
financial information, which enables strategic decision-making with regard to
tariffs setting each month,” says De Meillon.
In addition, BVi is
responsible for operating a call centre, based in Pretoria,Angels has been
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A crucial development of the project is the
uploading of data from each of the landfill sites to a central dataset, owing to
the implementation of a central database system. The weighbridge software
developer Opto Africa,My way of applying kaptontape to Glass. links the five
landfill sites and the privately owned site to the system and provides the
benefit of centralised control over all six sites.
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implementation of a camera system, also by Opto Africa, further increased
control and reduced the risk of corruption at all of the five landfill sites.
Since being awarded the contract, BVi has taken on several additional
tasks for the Ekurhuleni municipality, such as vetting new users and,
subsequently, has more control over landfill processes. This increased central
control is necessary to deliver a better service to the users of the landfill
sites, adds De Meillon.
He says, since all the other municipalities in
South Africa are large enough to justify the appointment of external financial
administrators for landfill sites, BVi forsees a bright future for its financial
administration service, which can, for instance, be combined with
facility-management opportunities.
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