IBM's governance blamed for health payroll bungle

IBM not be allowed to enter any new contracts with the Queensland Government until it improves its governance and contracting practices.

The move comes in the wake of the scathing Commission of Inquiry report into the $1.2 billion health payroll bungle that resulted in 80,000 Queensland Health employees being overpaid, underpaid or not paid at all.

Premier Campbell Newman said IBM, who implemented the system, must prove it had improved its practices, after a scathing report into the Health Payroll bungle.

"It appears that IBM took the state of Queensland for a ride," he said.

"We are determined that something similar doesn't happen in Queensland again."

Mr Newman said also he expected the IBM company to deal with employees adversely named in the report.

He said the Public Service Commission chief, with advice from Crown Law, would also consider whether it should take action against public sector employees adversely named and review the public service code of conduct.

Mr Newman said his government would detail its response to the report's recommendations at the next parliament sitting.

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