EDS, the Texas-based IT services company, has been forced to repay
£3.5m to the South Australian government after it was accused of
overcharging on an outsourcing contract.
EDS was awarded a nine-year contract to overhaul the state's entire
IT infrastructure in 1995. The contract was worth an estimated
£250m.
In a report published last week, the Australian auditor-general,
Ken MacPherson, found EDS guilty of charging the government above
market rates.
EDS denied the allegations, arguing that the prices arrived at were
the result of a systematic price review, guaranteeing mutual
fairness.
In addition to forcing EDS to pay money back, the South Australian
government has forced the IT services firm to adjust its prices for
the remaining six years of the contract.
The outsourcer has now been accused of overcharging the Australian
tax office for computer peripherals.