Feeds

Australian State to sue IBM over $AUD1bn project blowout

Queensland pulls out the big stick to whack Big Blue

High performance access to file storage

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. ®

Top three mobile application threats

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.