Bonum Certa Men Certa

Queensland Health Payroll System: IBM billion-dollar-blowout inquiry

posted by Roy Schestowitz on Mar 03, 2026

Reprinted with permission from Daniel Pocock.

20:30 Mon, 02 Mar 2026

In December 2007, the State of Queensland entered into a contract with IBM for a Shared Services (SS) Initiative. The first project intended to be delivered under the SS Initiative was the modernisation of the payroll software for Queensland Health. This is vital for the payment of tens of thousands of doctors, nurses, pharmacists, support and administrative workers throughout the system.

It went so badly that a commission of inquiry was put together to analyze the fiasco. The payroll system had started as a $6.2 million dollar project, it transformed into a $25.7 million dollar project and eventually it cost over $1.2 billion.

IBM Red Hat was banned from state contracts for twelve years.

The inquiry published a report which is freely available online.

The report describes the behaviour of a cult-like network of former IBM employees (alumni) who helped IBM obtain an unfair advantage in the tender process:

1.13 The attempt to procure a Prime Contractor was conducted in two stages, the first of which occurred between 25 July and 7 August 2007. In the course of that stage employees of IBM obtained and misused a competitor’s information, sought to use some information confidential to CorpTech and attempted to gain access to its competitors’ bids which (by mistake) had been put on a CorpTech G drive.

...

1.16 Mr Burns in the course of his review displayed a marked and indiscreet partiality for IBM. In the process of evaluating the relative merits of the three tenders he intervened, as a result of which the assessment changed to favour IBM’s bid.

The State itself was lambasted for various failings on the same project.

Decision makers felt they could not terminate the contract, despite the fact IBM was in breach.

"I believed that removing IBM and its experienced contractors from the project presented a real risk and a risk that was not worth taking. The advice I received from Mr Grierson and KPMG in July 20I0 was that there was an unsustainable risk in going down the path of litigation with IBM and the entire payroll system was in danger of collapsing. Based on this advice, I believed the State to be reliant on IBM to finish the implementation."

The report reveals IBM is more than just a company selling computers and software. The manner in which their former associates are positioned within state agencies and the manner in which the state depends on IBM to keep the lights on gives IBM significant influence over their customer, the state itself. It could be said that IBM has become a non-state-actor, that is, a power that rivals the sovereignty of the states it interacts with.

Despite the ban on IBM, which was eventually rescinded, many states have made the mistake of giving up even more sovereignty when they decided to entrust critical business processes to cloud infrastructure.

If the principle of the ban on IBM is to be taken seriously, is it time to pre-emptively introduce bans on specific types of technology or cloud service before a crisis rather than waiting until it is impossible to get out of a contract?

Tellingly, one of the priorities in IBM's acquisition of Red Hat was the monopolization of Red Hat's cloud experience. The European Commission, which is much bigger than the State of Queensland, was also fooled about how the combined company would act.

In Australia, there is a well-developed system of private hospitals and health providers. St Vincent's, St John of God, Mater are Catholic-affiliated while the Uniting Church (UnitingCare) is also big in the sector. Some people argue it is better for the state not to run hospitals and health services at all as the private sector may be more efficient. Each private hospital and health service is responsible for their own choice of business infrastructure.

Read more about IBM Red Hat.

Other Recent Techrights' Posts

SLAPP Censorship - Part 158 Out of 200: Making Alliances With Men Arrested for Strangling Women Was Always a Terrible Strategy
They work for American slop companies
 
Links 22/08/2026: Prince Harry, Elton John and Others Pay High Price for Frivolous Litigation in the UK
Links for the day
'Voluntary' Mass Layoffs at IBM/Red Hat
IBM does not want people to notice what truly goes on there
Another Round of GAFAM Layoffs, This Time Apple
Now Apple "is shutting down an entire Vision Pro team focused on developing gaming features for the mixed-reality headset."
Gemini Links 22/08/2026: The Bodyguard (1992), Minimalism, Backups, and IPFS
Links for the day
Links 22/08/2026: TikTok Settles With Feds, Harms Caused by Social Control Media Gaining Attention
Links for the day
New Data Shows Microsoft's XBox is Really Dying
XBox is a "burning platform"
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, August 21, 2026
IRC logs for Friday, August 21, 2026
Sources-First Publication
Thank you for keeping us on track
Ubuntu is Not Linux
I was one of the first users of Ubuntu
Links 21/08/2026: Outrage Over Politicians Who Support Slop-Feeding Data Centres, "America Is About to Get More Expensive"
Links for the day
Gemini Links 21/08/2026: Rain Coming Back and "Small Internet"
Links for the day
Mass Layoffs at IBM, But Mostly in Secret (PIPs and 'Voluntary' Redundancies)
Gerstner laid off a record number of people; Krishna tries to find 'innovative' new ways to cause workers to leave
Slop-ware: Nobody Knows What Code Goes Into Linux and Most Developers Cannot Understand the Rust Code (Even If They Tried)
So nobody is in charge
The Slop Pyramid Scheme (Not Boon!) Isn't Good for GNU/Linux, Even If the Plagiarism Engines (Framed as "Training" or "Intelligence") Almost Always Run GNU/Linux
We need the slop pop - we need the bubble to pop
North America: GNU/Linux Measured at 13%-15% Every Night
many (north) Americans use GNU/Linux at home and are using it to access the Web in the small hours of the morning
Links 21/08/2026: "Silicon Valley’s Billionaire Cults Are Coming for Democracy" and "Who’s Raking it in as the National Debt Explodes?"
Links for the day
SLAPP Censorship - Part 157 Out of 200: What is a 'Defamation Troll'?
"Defamation Mill" also
Northern Europe Leads the Pack in Abandoning Windows After Threats Made to Greenland (Says Clownflare Data)
Clownflare has a vast trove of data, so it cannot be easily dismissed as pure nonsense
Clownflare: In Past 12 Months Microsoft Windows Fell From ~80% to ~75% on Desktops/Laptops in Asia
Microsoft is deep in debt
Secret Layoffs at Microsoft, Apparently More Sites Will Shut Down Entirely
vindicates us and serves to affirm what we've said for over a month
The State of Slopfarms About "Linux" in August 2026
The Web needs serious cleanup, which curation can help deliver
IBM Offers Workers Some Money to Fire Themselves, It's Called "Next Step" and It's Allegedly 'Extended' (Not Enough Fools Have Fired Themselves)
Will IBM executives - including the CEO - ever be held accountable?
£5 Million Unsolicited/Undisclosed Bribes and What That Means to British Politics
It still remains unknown (disclosure denied) who helps fund the £1 million lawfare against us
[Satire] Pocock, Binface & nobodies vs Farage: defamation before UK High Court
Reprinted with permission from Daniel Pocock
The IBM Censorship Team, PIPs (Silent Layoffs) in IBM Europe
There seem to be many de facto layoffs going on at IBM right there
SLAPP Censorship - Part 156 Out of 200: Brett Wilson LLP Becoming Wilson FC
Now acting almost like one-person shop (lots of staff has fled this past year)
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, August 20, 2026
IRC logs for Thursday, August 20, 2026
Gemini Links 21/08/2026: "Ensmallening the BigWeb", "Rust Dependencies"
Links for the day
Links 20/08/2026: 'Linux' Foundation Promoting Slop Hype for Money (Hype as a Service), Malaysia’s Exports Jump 38% Year-on-Year
Links for the day
Gemini Links 20/08/2026: A "Break From Routine" and "Modem Was the Problem"
Links for the day
Clownflare Reckons GNU/Linux is on Almost 1 in 10 Laptops/Desktops in Western Europe
Western Europe and China are leaving more of GAFAM behind them
Looking Ahead at September
Rianne and I look forward to a productive September
Links 20/08/2026: Facebook "Ran Ads for an App That Promised to Nudify Female Politicians" and Facebook Faces "Social [Control] Media Addiction Trial"
Links for the day
Clownflare Sees GNU/Linux at 16% Market Share on Desktops/Laptops in Tajikistan
in Tajikistan it seems like adoption of GNU/Linux is exceptionally high, based on a very large data set associated with Web access
The Demise of Social Control Media Continues
Entering (anew) social control media in 2026 seems foolish
SLAPP Censorship - Part 155 Out of 200: Throwing Stones in Houses Made of Glass
character-assassination-as-a-service
Gemini Links 20/08/2026: Planners, Pantsing, Vinylyssee
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, August 19, 2026
IRC logs for Wednesday, August 19, 2026