Feeds

Australian State to sue IBM over $AUD1bn project blowout

Queensland pulls out the big stick to whack Big Blue

The essential guide to IT transformation

The Australian State of Queensland has reportedly filed a statement of claim against IBM to recoup some cash from an SAP disaster.

Queensland's keen to bash Big Blue because its Health Department engaged the company to build a new payroll system. IBM quoted $AUD6m for the SAP-based project, then upped the quote to $27m. A few years down the track the payroll still wasn't working properly and had racked up $1bn of bills and more than a little pain for employees who weren't paid properly, if at all.

The State launched an inquiry that found IBM did not act ethically in pursuit of the contract. That inquiry also found that public sector workers in Queensland were less-than-stellar managers of their suppliers. To make things worse, a previous State government settled with IBM because it feared that if it was hostile to Big Blue it would walk away and leave it with an even smaller chance of delivering a working payroll.

That sequence of events led the Judge who headed the inquiry to describe the project as “in the front rank of failures in public administration in this country,” before adding, “It may be the worst.”

It now appears that Big Blue will have a day in court. Australian outlet ITNews.com.au reports that Queensland has filed a statement of claim in the State's Supreme Court, a jurisdiction that considers claims of unlimited size.

Government sources did not reveal any details of the claim to ITNews.com.au, citing confidentiality requirements of the process. Nor is it known when, or if, the matter will reach court.

Vulture South imagines cash-strapped Queensland may prefer the quick kill of a settlement, especially if IBM offers up an appropriately-sized cheque. Whether IBM decides to fight, and thereby risk its sharp business practices again being aired, will be interesting to watch. ®

Boost IT visibility and business value

More from The Register

next story
Microsoft exits climate denier lobby group
ALEC will have to do without Redmond, it seems
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
BYOD's dark side: Data protection
An endpoint data protection solution that adds value to the user and the organization so it can protect itself from data loss as well as leverage corporate data.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?