An article in The Herald Sun says that Victoria’s new smart card ticketing system is in danger of collapse after payments to the consortium hired to build the system were frozen.
The payments were stopped amid growing conflict between international consortium KAMCO and the State Government agency overseeing the $500 million myki project, sources told the Herald Sun.
The Transport Ticketing Authority yesterday confirmed it had halted all payments because of KAMCO’s failure to meet project milestones.
It also refused to express full confidence in KAMCO’s ability to deliver the ticketing system.
“TTA remains focused on ensuring KAMCO delivers myki according to their obligations,” TTA solution architect Duncan Bryce said.
“Many aspects of the project are proceeding well and on target. However, software development has been slower.”
Mr Bryce refused to say when the cash flow to KAMCO was turned off or how much money was withheld.
“KAMCO is obligated to deliver a full working solution and payment is linked to delivery,” he said. “KAMCO has failed to meet milestones.”
Software problems have left the system’s development more than a year behind schedule.
Government sources said KAMCO was unlikely to lose the contract.
Mr Bryce said relations between TTA and KAMCO were “fundamentally solid”.
KAMCO spokeswoman Margo Nison said payment milestones in the project agreement and the current status of the New Ticketing Solution program delivery were not aligned and had not stopped the company’s progress to date.
“Large projects are difficult,” she said. “I’d classify the relationship between KAMCO and the TTA as strong.
Report by The Mole
