parool

Ground lease IT system issues to cost 20 to 40 million euros

Ground lease IT system issues to cost 20 to 40 million euros

The Amsterdam municipal government faces costs of up to 40 million euros to fix its failing digital land lease system after technical support expired. Alderman Alexander Scholtes reported that staff failed to timely inform him of the risks, leading to delays similar to previous financial system failures in the city.

The Amsterdam municipal government is facing estimated costs of 20 to 40 million euros to resolve critical failures in its long-obsolete digital land lease system. Technical support for the existing infrastructure expired in October, leaving the city with two primary options: building a entirely new system or salvaging parts of a previously delayed project. The situation has led to significant political tension, as Alderman Alexander Scholtes revealed he was not informed about the imminent expiration of support until it had already occurred. He criticized municipal staff for providing overly optimistic reports and withholding information, suggesting they attempted to manage the risks internally without executive oversight. This failure mirrors the previous mismanagement of the Afis financial system, which also resulted in tens of millions of euros in unexpected costs due to a lack of proper reporting and oversight. The recurring nature of these technological project failures has sparked concern regarding the city's internal project management and accountability processes.

Based on reporting by parool. Translated and condensed by LocalHeadlines.

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