The management consultants who received €38.5 million in fees for the health service's computerised staff-management system, PPARS, today said the project was one of the largest of its kind in the world.
In a statement this afternoon, Deloitte said PPARS was a complex programme handling over €7 billion of public expenditure and implemented in a "challenging environment".
"In the three years to October 2005, Deloitte deployed an appropriate and agreed level of resource in response to the client's requirements and also advised the client on optimising the use of its internal resources," the statement said.
The company were originally contracted to do work at a price of €400,000 in 2002 after a tendering process. But after the scope of the project widened, it continued as project advisers on a "time and materials" basis. The cost ultimately came to over €38 million.
The C&AG report found these arrangements "did not incorporate an appropriate sharing of risk". "In practice, the State carried all the risk," the report found.
"There is evidence of a lack of clarity regarding the role of Deloitte. Whereas the PPARS national project team characterised Deloitte as a strategic implementation partner, Deloitte regarded itself as a project support adviser. This lack of clarity on the part of the health agencies militated against clear direction and control," the report said.
A review of Deloitte's performance was undertaken by another consultancy ReedSmith Healthcare during the development of the project in 2003, found "considerable skills, talent and commitment" were in evidence. This was noted in the report.