The introduction of a new computer system at the NSW Infringement Processing Bureau led to the misallocation of $50 million in fines revenue.
According to a parliamentary Public Accounts Committee report released today, the NSW government lost the $50 million during an office relocation.
The figure comprises up to $41 million in fines not processed within the required six months and $9.6 million compensation the bureau was forced to pay to councils as a result.
The processing delay occurred because of the agency's relocation from Parramatta to Maitland in September 2002 and a questionable decision to introduce a new computer system at the same time.
"The committee found that the main reason for the bureau's problems was that the two projects were managed poorly," chairman Matt Brown said.
Opposition leader John Brogden said debt collections were still plaguing the government.
"It's pretty clear that despite the transfer of these services out of policing across to Treasury, there is still a massive systems failure when it comes to collecting outstanding fines in this state," he said.
Full details of the bungled computer system upgrade will be published in the September 27 edition of Computerworld magazine.