Whistleblowers: £171m council IT fix 'in trouble'

Key project hits snag as authority denies report is misleading

- JANE HAYNES News Reporter

INSIDERS have revealed a vital multi-million pound IT project that triggered Birmingham City Council's bankruptcy is ‘in trouble’ - contrary to a council document claiming all is well.

A report will inform the council's cabinet that the massive project's re-implementation is on target for a go-live next April, with no major complications or holdups.

But whistleblowers told us that it is not correct. They have revealed that a crucial part of the scheme has been dogged by issues and delays.

The council has now confirmed that it is the case.

The income management system is the problem area - it's a system that ensures that the thousands of payments in and out of the council every week match up with bank records.

It acts as an early warning of fraud and is a critical part of accounting and auditing.

Worried insiders fear delays in finishing the bank reconciliation work will impact the overall project, which has now racked up a bill of £171 million. “It’s a mess,’ said one.

The Post was contacted amid claims that attempts to raise the alarm internally about the scheme's progress and to flag questions around ‘weak’ oversight had been rebuffed.

The council has now admitted that the IMS part of the project is indeed behind schedule and but will not give anew date for its completion.

It said the report due to be discussed by the cabinet this week - which gives the scheme a clean bill of health - was written before the problems emerged and that this would have been shared with members as soon as part of the reporting arrangements.

There has been no attempt to mislead or hide, the council said.