Phoenix cost soars by another $137M, paid to IBM
The federal government continues to pay millions of dollars more than expected to IBM to run the troubled Phoenix pay system, despite its many problems.
Since the start of 2019, the company has received at least another $137 million, according to the federal government’s online procurement site Buy and Sell, under a new agreement that came into effect in March.
The deal marks the 46th amendment to the initial contract, signed in 2011, with the multinational company which was responsible for the payroll system’s implementation. The total value of the contract has since increased from $5.7 million to more than $393 million.
Phoenix has been mired in controversy since its introduction in 2016, causing myriad problems including under-, over- and non-payment for hundreds of thousands of public servants. – CBC News
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Only a government would continue throwing millions of dollars into what is turning out to be a bottomless money pit. The private sector would have never even considered spending $400 million on a pay system. Its the government system of throwing more and more money at a problem hoping to fix it.
Eventually, they reach a point of no return. Too much money has been spent to quit. Just keep throwing that money.
Think of Ontario’s E-Health. Its is exactly the same thing.
Nobody is ever held responsible.