CSC fails to submit ASIC reports

CSC fails to submit ASIC reports

CSC Australia, one of the biggest IT outsourcing companies to the Federal Government has failed to submit financial statements to the Australian Securities and Investments Commission for two years running.

The mishap came out as CSC Australia's US parent company, Computer Sciences Corporation missed its third-quarter forecasts. Poor dollar performance and slowing software sales in the health-care sector has taken its toll on the company's dropping its net income by $30 million.

CSC declined to comment as to why the integrator had missed the ASIC deadlines but stressed the issue had been "blown out of proportion" by a report in the Australian Financial Review (AFR).

A CSC spokesperson told AFR that the delays where the result of CSC acquiring some major competitors in the last 15 months. The company acquired GE Capital IT Solutions in October 1999 and BHP IT in May last year as well as swallowing Canberra-based Web developer eDIME in October.

The accounts for the year to March 31, 1999, which were due by July 31, 1999, are expected to be lodged "any day" with the 2000 accounts due to follow in a few months.

Companies are required by law to submit a financial assessment within four months of its balance date. Failure to do so can sustain a $2500 fine for each offence however, at this stage ASIC is still looking into the matter.

CSC has been accused by analysts and competitors in the past of trying to maintain a stranglehold on Government IT contracts, a factor which poses a professional embarrassment in light of the ASIC omissions. For 1999 its local operation recorded over $800 million in revenue, 41 per cent of which was generated through Government Defence and Health contracts.

Meanwhile, there is considerable industry speculation concerning the recent and sudden departure of Ian Dart, former boss of BHP IT and more recently vice president of application service delivery at CSC Australia. Dart left the company abruptly last Friday, however CSC denies any connection between his departure and the performance of the $700 million IT outsourcing contract which is part of the BHP IT acquisition.

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