News article

Posted by Rachel Fielding PM | on Mon, 06/02/2012 - 12:09  1257

Major CSC project cancelled due to delay and cost over-run

Outsourcer CSC is facing further woes as a large project to modernise the police systems in Denmark has been abandoned.
US-listed CSC, which is being investigated by US regulator the SEC over fraud allegations concerning alleged financial malpractice in Denmark and Australia, has just lost its place on the big Scandinavian Polsag project, eight years since its conception amid growing concerns of cost overruns and political in-fighting.
Polsag began eight years ago in November 2004 with an agreement to modernise Denmark's Police back office, with politicians in 'the Borgenm' its Parliament, green-lighting project in early 2005; by late 2006, local Police ICT chiefs were ready to sign the contract for the final development of the project.
But a promising start later turned into a sorry saga of endless delay and rising proces; the final straw was a late 2010 assessment that admitted the original quote of $153m had already climbed to a potential bill of nearly three times as much, $425m.
The announcement is the latest in a string of troubles for CSC. In Denmark, an accounting scandal and deepening financial problems and problems on a project with the Danish Tax and Customs Administration are understood to have played a part in the dramatic resignation last year of its country manager there, Carsten Lind; it's also facing legal problems in other parts of the world, like Australia.

Meanwhile, in the UK the company announced in December that it was facing a possible writedown of almost £1bn on its National Programme for IT NHS contract. a highly critical Public Accounts Committee analysis said CSC's performance on the project was so poor that the British state would be wise to reconsider whether to give any more work at all to the supplier.