Qld govt initiates IBM court action

The Queensland government will serve technology company IBM with court documents over the state's health payroll disaster, Premier Campbell Newman has confirmed.

Thousands of health staff were overpaid, underpaid or not paid at all when the system was implemented under the former Labor government in 2010.

A five-month inquiry, headed by former Supreme Court judge Richard Chesterman QC, was highly critical of IBM, which won the tender for the failed $1.2 billion system.

It found IBM solicited and received information during the tender process that gave it a distinct advantage over competitors.

IBM was also accused of understating the cost of building a new system just to win the contract.

The government-commissioned inquiry added a further $5 million to the damage bill.

The state government will serve IBM on Monday with a statement of claim over its role in delivering the system.

It will seek unspecified damages after law firm Minter Ellison was appointed to prepare the action, The Courier-Mail reports.

"I can confirm press reports that we intend to take the matter further," Mr Newman told reporters in Brisbane on Sunday.

"Queenslanders were wronged, we believe, in the pay affair and we intend to recover money for them - the taxpayers - the men and women of Queensland."