The Auditor General has submitted a report to the Scottish Parliament relating to the 2017/18 accounts of the Scottish Public Pensions Agency (SPPA).
It concerns a £5.6m million contract awarded by the SPPA in 2015, as part of a business transformation programme, to Capita Employee Solutions to develop an integrated administration and payment system.
The contract was cancelled in 2018. As a result of this, the report notes, the SPPA will require additional revenue and capital budget allocations from the Scottish Government over the next five years.
Discussions are currently under way between Capita and the SPPA over legal responsibility for the failed contract and any potential financial penalty. The Auditor General intends to prepare a more detailed report in 2019 once any legal process has concluded.