THE YEAR 2000 COMPUTER PROBLEM

WEDNESDAY 19, NOVEMBER 1997

The Government has set up a high-level task team to draft a strategy on dealing with the Year 2000 computer problem (millennium bug), which could crash all computerised systems and data bases.

This problem is being described as a "ticking time bomb" that will wreck millions of computer systems around the world.

"This phenomenon should be countered at all costs because the price to be paid by the country will be astronomical and government treats this matter as a national priority" Minister for Posts, Telecommunications and Broadcasting Jay Naidoo said on Wednesday.

The problem arises due to the computer systems and time based consumer equipment not programmed to recognise date digits starting with 20 instead of 19. For example on January 1, 2000, six digit date fields in computer programs will read 01-01-00, causing the machines to interpret the date as January 1, 1900, instead of January 1, 2000.

The problem is not only an information technology problem, but also a business problem because consumer products will be affected. It is estimated, depending on the results of a comprehensive audit being done across the economy, that the "millennium bug" could cost the South African economy between a low of R7 – 9 billion to a high of R25 billion.

A national coordinating committee of public and private sector, including parastatals, IT companies, major users and government departments will be established very soon and will report to the committee of Cabinet Ministers chaired by Deputy President Thabo Mbeki with the participation of the following Ministries:

• Minister for Posts, Telecommunications and Broadcasting (convenor)
• Minister of Arts, Culture, Science and Technology
• Minister of Finance
• Minister of Justice
• Minister for Public Enterprises
• Minister for Public Service and Administration
• Minister of Trade and Industry
• Minister of Provincial and Constitutional Affairs

The Ministers will be supported by experts drawn from the following organisations:

• Council for Scientific and Industrial Research
• The South African Reserve Bank
• Denel
• Justice Department
• Foundation for Research and Development

Some of the consequences of the "millennium bug" could be:

• Stock Exchange computer systems collapsing
• Social and civil pensions disruption
• Tax revenues will not be calculated and collected
• Law enforcement could be seriously affected
• Hospital and life support systems may fail
• Deeds will not be registered
• Government investments could be disrupted and corrupted
• Credit card payments may fall behind, perhaps totally lost
• Banking systems will be in disarray
• Transport systems (e.g. airlines and train reservations) making use of computer based technology may be affected.
• General electrical equipment such VCRs, Television sets and calculators could malfunction.

Mr. Naidoo said the overall impact of this "millennium bug" if not addressed can create serious havoc, resulting in payroll and benefits cheques not being cut; inventory programs will think stock is outdated; hospital records will mistake newly-born babies with elderlies; purchase orders will expire long before their issue dates.

The Group’s work will focus on the following issues:

• Risk management exercise
• Conduct an audit of Y2K programmes and its impact on the entire economy
• Develop legislation and compliance enforcement
• Identify life threatening risks, and define legislation (hospitals, nuclear, aviation)
• Create awareness to business and general public on likely consequences
• Monitor the country and ensure counter measures are developed
• Standardise technology that is Y2K compliant. Increasing the role of South African Bureau of Standards in ensuring that certain standards are met by vendors in all affected technologies, as outlined by International Standards Organisation (ISO)
• Devise training in all sectors of the economy, not only for general awareness but also to counter the problem.

A proclamation will soon be issued that will enforce compliance by vendors and suppliers of technology software and hardware.

Public and private sector will have to pull their resources together and jointly devise means to combat this serious threat to the advances of the information age. According to Minister Naidoo "Although we have started to address this Year 2000 problem late, we should not panic. Joint action between the public and private sector will avert any undue chaos" .

FOR FURTHER DETAILS CONTACT: CONNIE 082 552 1939