The West Australian Department of Treasury and Finance (DTF) has delayed the appointment of an executive director for its AU$196 million Shared Corporate Services Project until after the WA state election on 6 September.
DTF Shared Services, formerly known as the Office of Shared Services, began the project in 2003 with the aim of cutting $50 million off the state's $315 million annual corporate services bill by consolidating back-office functions. DTF Shared Services currently provides services such as payroll and finance systems to 24 agencies and will ultimately provide services to around 90 agencies.
However in mid-2007 WA auditor-general Colin Murphy found the project to be two years late and more than $76 million over its original $122 million budget.
The position of executive director was advertised nationally on 4 July 2008, but the appointment was delayed pending the election. The current acting executive director is Brian Roche, who is understood to have applied for the permanent position. A DTF spokesperson said the appointment was expected to be finalised shortly after the election.
Oracle holds a 10-year, $66.8 million contract with the state to deliver the project's key technology platform. The latest component of the Oracle system, the HR/Payroll system, went live in November 2007. Oracle has subcontracted to a second supplier, Perth-based company ASG, who also holds a separate, $88 million deal with the state in its own right.
The spokesperson said in the 2007/2008 financial year, over 100,000 transactions were processed with a total value of $659 million through the Oracle system. A further three agencies are scheduled to roll-in over the next four months, including Main Roads, which will be the largest client agency to transition into shared services arrangements.
What a lot of cobblers - where is the justification and the ROI. All they have done is paid millions of tax payers funds to have a monopolistic software supplier - lock in on a big scale.