Canadian News

Trudeau government wastes $137 million on flawed pay system

The federal government has paid nearly $137 million to IBM to maintain the Phoenix pay system in 2019 alone.

Cosmin Dzsurdzsa Montreal, QC
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The federal government has paid nearly $137 million to IBM to maintain the Phoenix pay system in 2019 alone.

The original contract which was signed in 2011 was valued at $5.7 million. Today it stands at a total of more than $393 million.

The public service pay system has been plagued with inefficiency resulting in hundreds of thousands of over and under payments.

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The new improvement will hire 170 IBM employees to provide technical support for the system.

Despite the rising maintenance costs, the government is still intent on replacing the inefficient system.

In 2018, the Liberal budget earmarked $16 million over two years to find a replacement for the system.

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