The company will provide traffic cameras at no cost to the Ekurhuleni metropolitan.
TCS collects its revenue when people pay their speeding fines.
Total Client Services (TCS) has won a tender from the Ekurhuleni metropolitan to provide it with an integrated traffic contravention management system.
CEO Shaheed Mohammed says the contract, which will run for 32 months, is a “significant contract for us, [and] it will add a lot of value to the organisation”.
Mohammed was unable to divulge the value of the tender as it is in a closed period, with its half-year results to August to be released on Friday.
TCS was spun out of Labat and listed separately in April 2008. It provides integrated traffic law enforcement solutions, which includes technology, proprietary application software and administration services, to local authorities and provincial administrations.
The system the company will provide to the East Rand metropolitan includes cameras, computers, software and related aspects such as cabling.
Mohammed explains that TCS provides these services at no cost to the taxpayer, as it earns its revenue in the form of a flat fee for each fine it collects. The company works in conjunction with South African banks to collect the fines, and has 24 000 payment points nationwide. “That’s the most important part of traffic fines.”
However, between 30% and 40% of the fines issued nationally are returned with an incorrect address on the eNatis system. Mohammed says this makes the business of collecting fines risky. “The status of correct addresses is a major problem to the industry.”
Ekurhuleni is the largest metropolitan in SA, with 11 separate jurisdictions, says Mohammed. In an announcement, the company says: “TCS was the only acceptable bidder for this tender and, as a result, the board is optimistic the company is in a good position for the future.”
It provides services to 116 metropolitans in SA, of which 16 are of the same scale as the Ekurhuleni tender, Mohammed notes.
He adds that the company’s systems are compliant with the Administrative Adjudication of Road Traffic Offences Act, which will replace the current traffic law enforcement legislation next year.