Slough, UK-based Anite said that following a recent review, it had no option but to incur further one-off costs in relation to the State of Victoria contract. These additional costs are likely to run to several million pounds.
The admission comes as something of a surprise, as Anite stated in December 2005 that it was making good progress on the State of Victoria deal.
Anite signed the contract with the Department of Human Services of the State of Victoria in 2002. The five-year deal, valued at 11m pounds ($19.2m), involved the provision and support of an integrated system for the Office of Housing in Melbourne, with the Anite application lined up to replace the existing in-house service.
Problems first became apparent in 2004. Anite’s head of Australian operations, who had been responsible for the deal, left the company after problems with the contract. The company also announced that it was setting aside 12.5m pounds ($21.8m) to cover potential losses on the project, which a spokesperson said had been poorly bid from the outset and completely under costed and delayed.
