A lucrative long-term IT contract under the former Labor government to replace ageing computer software at public service superannuation provider Super SA has been plagued by problems, significant delays and massive cost blowouts.
Start-up costs for the 12-year contract, awarded in 2014 to global software company DST Bluedoor Pty Ltd and signed-off by the former Labor government, have blown-out by nearly $17 million to $31.6 million.
Further, an independent review estimates the total cost of the project could nearly double to $44.5 million and was $20 million higher than the original $24.4 million price tag.
Treasurer Rob Lucas said the issue was “yet another financial scandal presided over by the former Labor government”.
“Just when we think we’ve unearthed the full extent of Labor’s mess and gross financial incompetence, up springs another calamity,’’ said Treasurer Lucas.
“South Australia’s 210,000 public sector employees would rightly be concerned to learn the provider that manages their superannuation funds has overseen a problem-plagued IT system contract that’s likely to blow-out by more than $20 million.
“The independent review into the project was damning, highlighting major failures underpinned by a lack of superannuation project expertise in terms of managing the project.”
“The first stage of this project went live in May 2018 and, due to major system issues, there were significant problems experienced by many members in the new system.
“The new CEO of Super SA has appointed additional temporary staff to resolve these issues and is now engaged in commercial negotiations with the vendor to clean up this mess and resolve the ongoing issues with the project.”