SAP and IBM Unit Ensnared in $800 Million Quebec IT Fiasco

Software company SAP SE and an IBM Corp. subsidiary are embroiled in a C$1.1 billion ($810 million) technology boondoggle that triggered both a public inquiry and an anti-corruption investigation in Quebec.

The Canadian province’s Treasury Board President Sonia LeBel also ordered Quebec’s procurement watchdog to conduct an “in-depth analysis” of how the government awards technology contracts, she announced Monday. The mandate came after the ongoing inquiry revealed cost overruns, potential conflicts of interest and unexplained contracts for a bungled IT upgrade.

The inquiry heard that consultants raised their hourly rates to C$350 from C$82 without a clear reason. It also ...