Big bucks spent on renewing myki contract seven months before a review into its performance was completed

PUBLIC Transport Victoria renewed a $700 million contract with the operators of myki without reviewing the performance of the much-maligned system.

VICTORIA signed a $700 million contract extension with the operators of the much-maligned myki ticketing system before conducting an official performance review.

The state auditor general on Thursday says it told Public Transport Victoria in 2015 to find the original business case for myki and complete a post-implementation review.

But PTV was unable to verify with the premier’s department if a document it had from 2004 was the original business case, so it didn’t start the review until February this year.

A report by the state auditor general found the Victorian government renewed the myki contract before a review was conducted.

That was seven months after the government announced it was extending NTT Data’s contract until 2023 — at a cost of $700 million.

“This means that the new myki contract, which came into effect 1 January 2017, has not been informed by the lessons from a PIR, even though it could have been,” the report says.

“We have been unable to verify the status of the PIR and when it is expected to be completed.”

The auditor-general also found PTV didn’t develop an accurate way to assess the success of the myki contract until after the contract had already been awarded again.

There is still no mobile website or app to easily top up myki accounts.

“PTV should have completed this work before it awarded the new contract in July 2016 so that PTV, bidders for the retender and the state had a clearer understanding of the expected benefits and how to measure them,” the report says.

Myki was introduced to selected regional areas in 2008 before being rolled out across Melbourne in mid-2010.

It was more than $500 million over budget, behind schedule and without the promised option of single-use tickets.

The system still has no mobile website or app to allow commuters to easily top up their accounts.

Myki was over budget, behind schedule and still had its contract renewed.

PTV says it accepts both recommendations and will have the PIR complete by the end of August.

In a statement to the auditor-general, PTV chief executive Jeroen Weimar said the myki ticketing system remained an integral part of the public transport network and continued to serve the state.

Public Transport Minister Jacinta Allan has been contacted for comment.