The government dominated Public Accounts and Estimates Committee has slammed the way troubled UK software firm iSOFT was awarded a $22.5m contract as part of the HealthSMART project.

ISOFT in the UK is reeling after revelations of accounting irregularities and delays in its dealings with the NHS. Just today it was revealed that the British government made secret upfront payments of £82m to stop it going bust.

Now even Labor MPs have conceded that a Department of Human Services project manager had “inappropriate social contact” with the company.The Australian’s Karen Dearne summed it up:

A Public Accounts and Estimates Committee (PAEC) review has found that a working document was provided to iSoft before the request for tender was issued; and a Victorian Department of Human Services project manager had “inappropriate social contact” with the successful bidder.
In addition, the department did not require iSoft to supply an Industry Participation Statement, despite this being a requirement under Victorian Government Purchasing Board guidelines.
“Given that the DHS is a very large department issuing contracts each year involving many millions of dollars, it is of concern that internal controls, including the ongoing use of probity auditors to oversee large contracts and tendering processes, proved to be deficient in allowing the situation to occur,” the PAEC says in its report tabled in parliament today

This latest blow comes days after The Age reported that concerned health-care workers have written to the Premier voicing their worries about HealthSMART. According to The Age:

Health-care workers have written to Mr Bracks warning that the project is in “chaos”. Department insiders are also sceptical that the HealthSmart strategy, already delayed, will deliver the technological advancements promised.

“Instead of a statewide shared service linking health-care workers and improving quality care, Victorians face a bureaucratic IT bungle with further delays, as DHS procrastinates over how it manages the collapse of its major vendor,” says an August 19 letter to the Premier from anonymous health-care workers

It’s not all doom and gloom at iSOFT however. They still know how to party. Later this month as the weather turns cold back home, iSOFT’s senior exectuives will be sunning themselves at Sanctuary Cove in the company of Queensland Premier Peter Beattie!