Poor police plan prompted half-billion dollar blowout
Even though its technology had been known to be outdated for more than a decade, the audit found that the state police agency relied on a high-risk vendor for critical upgrades, contributing to a cost explosion.
NSW Police spent $155 million on technology upgrades between 2021 and 2025, according to an investigation by the state’s auditor general; This accounts for more than half of the allocated budget, but it revealed it had changed only one of its five key systems.
The investigation found that NSW Police had not effectively planned for updates to its central technology, much of which had been in place since 1994 and was based on an outdated programming language.
The final delivery date for the program, which has been trying to solve the problem since 2006, is four years away from 2031, and the projected final cost will be about $500 million higher than first thought.
“Slow progress has required the NSW Police force to allocate program funds to extend the life of its legacy systems,” the report said.
“Meanwhile, the delay in delivery has resulted in technology and operational risks and reduced operational efficiency.”
One of the main problems that led to cost and time explosions was the selection of a “high risk” supplier in the early stages of the upgrade.
The police obtained legal advice warning about the financial situation, limited experience and lack of capacity of the foreign start-up he chose.
But the power still continued to advance with that company.
The audit found that this decision cost the police nearly $20 million in spending on studies that provided no benefit.
“In June 2022, the supplier advised the NSW Police Force that it was unable to deliver a forensics and display system and that delivery of (other components) would be delayed by several years,” the report said. The statement was included.
The report said the force terminated its contract with the start-up in 2022 and has since updated its procedures by imposing stricter requirements on suppliers.
The auditor general recommended that the force should continue to demonstrate effective program management and incorporate lessons learned from previous mistakes.
Police Commissioner Mal Lanyon thanked the audit office in April for a review of procedures and police agreed to the cost and time extensions needed to complete the upgrades, a police spokesman said in a statement.
“The project has already provided the core platforms and infrastructure needed to stabilize operations (and) improve cybersecurity,” the spokesperson said.
