The Northern Territory Government has decided that it will walk away from a failed SAP project and will write off the $70 million already spent on it.
The asset management system (AMS), was started by the former Labor government, had a starting budget of $7.2 million. It looked fair dinkum at the time, after all who knows that SAP software is supposed to do any way, and besides it was expensive so it must be good right?
More than 11 project managers were involved in the project over three years and even then it managed to be two years late.
It was finally switched in April 2012, it was $12 million over budget and it did not work.
It was supposed to unite nine different information technology systems and it didn’t.
A report by the Auditor-General last year noted that another $40 million would need to be spent on it.
Treasurer Dave Tollner told parliament the AMS could only manage 11 percent of its intended purpose. It would be even more expensive to rebuild from scratch.
An advisory group KPMG estimated would cost a further $120 million of taxpayer money and take another five years to deliver.
Instead the Government will spend $12.5 million to set up a replacement called ASNET, to be developed from existing computer programs.
ASNET will take about three years to introduce and work would start on the system immediately.