27 June 1999
The Minister of Transport Dullah Omar today announced that Automated Fuel Systems had won the tender to pilot a vehicle identification technology (VIT) system to fight fuel fraud in government vehicles in five provinces.
The R17 million, two-year contract follows a one-year investigation by the Department of Transport into a comprehensive fuel management system and is part of government’s commitment to fight corruption, theft and other fraudulent practices in the public se ctor, said Omar.
The project will pioneer the technology that will fight fraud and theft using motor vehicles in South Africa. About 13,600 government vehicles will participate in the scheme and several large fleet operators are interested in using this system once governm ent’s project has been piloted.
In terms of the contract Automated Fuel Systems will also contribute 3% of gross sales between the commencement of the contact and 1 January 2006 to a Trust which will honour their commitment to the Minister and Department of Transport to develop SMMEs and economic empowerment of disadvantaged communities.
The vehicle identification system, called "Fuel O Mat", will stop millions of rands of government petrol going in the tanks of private vehicles through the introduction of smart card technology that will be built into government vehicles.
Approximately R300 million of government’s R428 million annual auto bill is on fuel and it is estimated that VIT will save R45 million over the two years of the contract, which means that government will recover the initial capital outlay of R17 million wi thin the first year of the contract.
This is in line with Automated Fuel Systems guarantee to government that the cost of equipment will be recovered through the saving of about 15% saving per year over the two-year contract period.
VIT systems, which are in operation around the world, automate the entire refuelling process while simultaneously capturing all relevant transaction information on the fleet department, identification, date and time of transaction, as well as driver identi fication (optional). It is automatically recorded on the controller and processed through the bank, oil company and electronic fund transfer networks.
The tender for the supply of a VIT system is the latest step by the Department of Transport to transform the provision and maintenance of the government vehicle fleet to stop millions lost through fraud and theft.
The tender for the supply, installation and maintenance of the VIT system was issued by the State Tender Board in 1998 and was awarded to Automated Fuel Systems Group (Pty) Ltd with effect from 1 July 1999.
The participating network of fuel companies in implementing technology are Caltex, Zenex, Sasol, Tecpco, Afric Oil and Engen and will be piloted in Northern Province, Free State, Mpumalanga, Eastern Cape and North-West before being implemented in other pro vinces. END
Inquiries: Nashrika Sewpersadh
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Issued by Didi Moyle
PA and Media Liaison Officer to the Minister of Transport
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email: moyle@mweb.co.za
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(Pretoria only)
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