blog Things are not going well for the Queensland Government in its lawsuit against IBM over the incredibly botched payroll systems upgrade project at Queensland Health.
First the judge in the case threw the case out of court in December last year, pointing out that the Government had signed a waiver of liability over the issue (a fact that even sites like Delimiter have been pointing out to the Queensland Government repeatedly), and now that same court will force the Queensland Government to pay Big Blue’s court costs on the issue. The Australian newspaper tells us (we recommend you click here for the full article):
“… the government argued IBM had misrepresented its credentials for delivering the system … But the claim was unsuccessful and Justice Glenn Martin on Monday ordered the State of Queensland pay IBM costs incurred by the proceedings on an indemnity basis.”
At this point the causes of the Queensland Health payroll systems debacle are quite well-documented. Although IBM is not entirely blameless for the problems, the vast majority of the responsibility for the project failure lies with the Queensland Government itself.
Here, as in so many other cases to do with the public sector, the main issue related to project governance.
My recommendation to the Queensland Government at this point is to cut its losses and walk away from this situation with as much dignity as it can muster. Queensland needs to start allowing IBM to tender for contracts again and stop attempting to sue Big Blue. There is just not much else that can be done.