The government has officially terminated the contract for the e-Justice system today, ending efforts to salvage the project after its collapse in mid-January 2024.

According to government sources, two scenarios are now under consideration: either enhancing the existing i-Justice system to offer more services or launching a new tender process from scratch.

The e-Justice system had a total value of €6.2 million (an initial contract of €5.8 million and an additional €400,000 for approved changes). By January, when the system collapsed, payments of €1.25 million had been made.

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The system failed in mid-January, shortly after being implemented. The Deputy Ministry of Research, Innovation, and Digital Policy gave the project a "second chance," bringing in key stakeholders—the Cyprus Bar Association and the Judicial Service—who, despite their initial reservations, participated in resolving the issues and joined the project's Steering Committee. Together with the contractor, the problems leading to the collapse were identified. The company reported that the issues had been resolved, and preliminary tests were conducted by users between late July and early August to confirm whether the system had been corrected and supported automation services. However, the test results were unsatisfactory, leading to the decision to terminate the contract.

Government sources stated that after consulting with the Legal Service, it was deemed more prudent to terminate the contract rather than risk reactivating the system, which could encounter future problems. The first warning letter to the contractor (IBM Italia Spa) was sent on August 20, and the official termination letter was sent yesterday.

The same sources indicated that the termination of the contract should not come as a surprise, as the project had experienced issues since it was launched in January. "At that time, the decision was made to make one last effort to save the project," they added.

The contract was awarded for €5.8 million (for project implementation and ten years of operation), with an additional €400,000 for approved changes. Approximately €1.25 million was paid for the initial deliverables. The contract includes a €250,000 performance bond, and discussions are underway on how and when to proceed with its liquidation according to the contract's provisions.

Challenges for the project were apparent from the outset. The need for such a system was first approved by the Council of Ministers in 2009 and again in 2013. The project’s specifications were drafted in July 2016, and the tender was announced in March 2017, taking three years to award the contract in August 2020. The implementation was delayed three times.

According to the same sources, the Deputy Ministry of Research, Innovation, and Digital Policy is now evaluating two options: launching a new tender or, in the medium term, enhancing the i-Justice system, which mainly functions as a document management system rather than a comprehensive e-Justice platform. This enhancement is estimated to cost around €600,000. Initial estimates suggest that it will take about a month to reach final decisions on the next steps.

Finally, the same sources stated that consultations will take place with the Ministry of Finance and the Directorate General for Growth, as the project was co-financed by the Recovery and Resilience Plan. However, early indications suggest that no payments were made under the plan's milestones.