Government could seek damages for payroll implementation.
As reported by ITNews on June 30, 2010
The Queensland Government has issued IBM with a Show Cause Notice following a damning audit of its recent payroll system implementation.
The court order requires IBM to justify the continuation of its role as the prime contractor of Queensland Health's SAP HR payroll system implementation.
Queensland Health also has reserved its legal right to withhold final payment of $3.3 million and seek damages for the project, which has been blamed for more than 35,000 payroll anomalies.
"We have sought Crown Law advice in relation to options for terminating the payroll contract with IBM and it's only fair that we seek to reserve our legal rights," Premier Anna Bligh said in a statement yesterday.
"The Government has issued IBM a Show Cause Notice as to why the contract should not be terminated."
IBM was contracted in December 2007 to replace Queensland Health's LATTICE payroll system by August 2008 for $6.19 million.
By the time the system went live in March this year, IBM had made 47 changes to the original specifications, and been paid $21 million.