news tonight, page-4

Its easy getting articles on ERG--for the four years I had it just put the word troubled or struggling into the search engine--it will come up with ERG--when this article states Victoriua defends Myki--thats a load of bulltwang--the Govt might--those that vote don't.--RG
Victoria defends $20m myki projectFont Size: Decrease Increase Print Page: Print Correspondents in Melbourne | September 03, 2008
THE Victorian government has defended paying the consortium behind the troubled myki public transport ticketing system $20 million and not penalising it for late delivery.

The Transport Ticketing Authority made the payment to public transport smartcard operator Kamco in February this year.

This is despite the $844 million myki project being hundreds of millions of dollars over budget and more than two years late.

Under the $494 million contract signed with the Victorian government in 2004, Kamco can be fined $50,000 a day for late delivery.

Public Transport Minister Lynne Kosky said the $20 million payment was awarded after Kamco reached a milestone identified in the project.
The milestone related to assets delivered and the government had reserved the right to fine the operator at a later stage.

Ms Kosky was unsure exactly what the assets included, but said they related to software and the completion of a successful trial in Geelong.

She said fining the operator now would only delay the project even further.

"We've kept our legal rights so they're all preserved, but we want to get the system up and running and having lawyers involved, having litigation involved, will not get the smartcard ticketing system up and running."

Premier John Brumby said Kamco was entitled to be paid like any other government contractor.

But Opposition Leader Ted Baillieu said rewarding Kamco for performance failures, rather than fining the consortium, made no sense.

"This nonsense can't continue and clearly the minister now has to take responsibility for this and she should go," he said.

"This was a pre-payment ... and when they could have been fining the company they were giving them a bonus payment; (they) could have taken $20 million from Kamco for non-performance, instead they've given them $20 million, probably to keep them quiet."

AAP