In a letter, the Audit Service highlights various issues related to the e-justice project addressed to the Director of the Department of Information Technology Services (DITS).
The extensive letter records a series of issues beyond the contract, such as project escalation, additional charges to the public, numerous changes in schedules, and concludes that the actions of the contracting authority have “entrapped the public in the contractor’s appetites.”
It is also noted that changes made to the system by the contractor before approval were initially costed at €1.6 million, but after consultations, they were reduced to €890,000, “indicating a kind of oriental bargaining that does not align with public contracts.”
The letter, obtained by Phileleftheros and signed by Stalo Aristidou, Technical Control Director for the Auditor General, states that in September 2020, contract C.2020/20 was signed between DITS and IBM Italia S.p.A for the e-justice Licensing Agreement, valued at €5,816,500 + VAT, with a total duration of 156 months (13 years).
According to the original schedule, the system’s implementation should have been completed by 8.12.2021, starting a 6-month pilot operation, and concluding on 8.6.2022, entering productive operation.
The letter includes the following points:
- Following recommendations from the contract coordinator and the Departmental Committee on Changes and Requirements (DCCR), the Central Committee on Changes and Requirements (CCCR), as the competent body, approved two extensions totaling nine months (six months + three months, respectively). Based on the latest approvals, the system was supposed to go into production in March 2023, having already undergone the pilot operation, set to start in September 2022 (four months pilot trial and two months pilot production operation).
- Based on recommendations, the CCCR approved changes worth €452,068 for additional functionalities (linking the e-Justice system with the Prosecution system, adding a new Administrative Court of International Protection, document verification code, Backlog of cases).
- On 6.12.2023, a new proposal for contract modification was examined by the CCCR, suggesting additional functionalities/changes to the e-Justice system, with a total value of €890,000 and an 11-month extension of the implementation schedule. The CCCR decided to postpone the decision until obtaining information from DITS. The cost for the additional requirements or changes was initially calculated by the contractor at €1,697,305, but through negotiation, this amount was reduced to €890,930, “indicating a kind of oriental bargaining that does not align with public contracts.” This request to the CCCR was unlawfully submitted retroactively, essentially aiming to facilitate the Contractor in fulfilling its contractual obligations by shifting the cost to the public.
- A delay clause of only €16,897 was imposed on the project in 2022 due to delays solely attributable to the contractor. It is noted that the clause was imposed after a recommendation from DCCR, not the contract coordinator.
The Audit Service also mentions that in November 2022, the contract coordinator and subsequently the DCCR submitted a proposal to the CCCR regarding the transfer/assignment of the contract from IBM Italia S.p.A to Kyndryl Greece, Single Member S.A., Cyprus Branch, “a proposal rejected by the CCCR but shows how the contracting authority was acting.”
The letter states that two scenarios may be applicable: either the contractor is unable to implement the system with the investment specified in its initial offer, or the specifications, as recorded in the tender documents, were not complete or accurate.
Based on the above, our Service disagrees with the approval of the amount of €890,930, as proposed by the Contracting Authority, as well as the requested extension.
Instead, the Contracting Authority must consider the possibility of terminating the contract after giving the necessary warnings if the contractor is unable to fulfill the obligations it committed to.
Additionally, it is observed that if the scheduled timelines remain unchanged, the project will experience a total delay of over 20 months (nine months already approved and 11 months pending approval).
This means that instead of being completed in 21 months, it will now require 41 months for completion, as the system has not yet been put into productive operation.
Moreover, instead of facing penalties, the contractor will have received substantial amounts beyond its initial bid.
The Ministry of Innovation sent a letter to the contractor company, instructing them to resolve all issues by Monday; otherwise, the contract will be terminated.
Neophytos Papadopoulos, the Director-General of the Ministry, informed the Legal Affairs Committee examining the e-justice issue that the contract allows for termination in case of insurmountable problems. He mentioned that this would be evaluated after the company’s efforts are completed.
Meanwhile, even lawsuits for professional negligence may be faced by lawyers who have been left hanging due to the e-justice system’s inability to meet the needs of the legal community, said Fotini Tsiridou, the chairwoman of the Legal Affairs Committee, expressing dissatisfaction with the company’s stance.
A representative of the contracting company, Mr. Michael, told the committee that efforts are being made to resolve the issues, improvements have been made for the company to fully meet its obligations, and he expressed optimism about resolving them.
The committee session took place while dozens of lawyers outside the Parliament were holding a protest.
Michalis Vorkas, the President of the Cyprus Bar Association, stated that justice is not an experiment but the cornerstone of the state, safeguarding human rights and the rule of law.
He spoke about justice in plaster and called for an electronic case registration program.
