Premier Weatherill’s Budget papers have revealed a massive blowout of more than $40 million in the total cost of SA Health’s new Oracle Corporate Systems IT project.
The Labor Government approved funding for Oracle in 2009 and commenced the process for implementation in 2010. The original budget for Oracle was meant to be $23 million, but Mr Weatherill’s Budget indicates more than $40 million extra will be needed to complete the project.
Shadow Minister for Health Rob Lucas said Oracle was intended to be an integrated system for all parts of SA Health to replace legacy systems for financial management and procurement.
“However it has been riddled with problems from the start and the Auditor General has been damning in his criticism of the management of the project in his reports,” said Mr Lucas.
In December 2012, SA Health CEO David Swan told the Legislative Council Budget and Finance Committee that virtually all of the original budget had been spent just on Phase 1 of the project when it was meant to fund all of Phase 1 and Phase 2.
“The total costs of this debacle are likely to be even higher as SA Health had to pay consultants PKF $1.7 million to help fix some of the problems associated with the project. It is not clear whether these costs have been included in Mr Weatherill’s Budget figures,” said Mr Lucas.
“This is yet another example of Mr Weatherill’s waste and financial mismanagement at a time when critical programs in Health are having to be cut.
“In fact, Mr Weatherill’s Budget papers indicate a number of other capital works projects in Health have had to be delayed or cut to help pay for this massive blowout.
“Mr Weatherill must now explain how a $23 million project can end up costing South Australian taxpayers more than $60 million.
“Mr Weatherill must also now give some assurance that other major Health IT projects such as the $408 million EPAS project are not also suffering from blowouts.
“South Australians deserve a Government with better priorities to get our state back on track.”