Monday, April 29, 2013

Former Queensland Health Director General Michael Read claims senior bureaucrats said payroll system would work

THE man in charge of Queensland Health when the payroll system imploded says he was re-assured by his senior bureaucrats the system would work, an inquiry has been told.

Former Queensland Health Director General, Michael Read, took the stand at the Queensland Payroll Inquiry on Tuesday.

He told Counsel Assisting Peter Flanagan, SC, that he was told by Michael Kalimnios, the former deputy director
general of corporate services at Queensland Health, that glitches arising before the system went live in March of 2010 would be fixed.

Ms Kalimnios, who was dismissed from his job following the payroll debacle, is one of the few senior bureaucrats to accept any responsibility for the debacle.

Mr Read said Mr Kalimnios kept him briefed of difficulties implementing the system but did not ask him to take further action.

"I cannot recall him asking to take any other action other than what I did,'' Mr Read said.

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"Progressively the problems were being dealt with.

"And that was right up to 'go-live'."

The inquiry before Richard Chesterman, QC, is examining all facets of the payroll contract which was part of a vast
outsourcing program won by IBM in 2007.

After under-paying and over-paying thousands of Queensland Health employees since implementation in 2010, the collapsed payroll system continues to be a drain on state finances and is predicted to cost the taxpayer $1.2 billion.

Mr Read told the inquiry on Tuesday he did not attend one meeting with IBM in 2009 over concerns with implementation of the new system because he did not think his presence was required.

Mr Flanagan said as a customer of IBM, Mr Read had every right to attend the meeting and suggested that, because of the problems being experienced, Mr Read had a duty to attend.

"That is the very occasion when a director general should involve himself,'' Mr Flanagan suggested.

Mr Read said the meeting was attended by former director of public works Mal Grierson, which was appropriate given the payroll contract was between IBM and the government in-house IT outfit CorpTech.

Mr Read said he believed he had broad responsibilities in relation to the contract but did not believe he was required to manage the issue in such a direct fashion.

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