Cambridge may sue consultants

Cambridge University is considering legal action to get compensation from consultants who helped it to introduce an allegedly disastrous computer system that wasted £9m.

A two-part independent report recommended "immediate and forceful steps" be taken to see if compensation could be obtained from the consultants. But KPMG, one firm involved, has also said that is may take legal action against the contents of the report.

The "Capsa" computer system, introduced 15 months ago after almost four years of planning, had brought the univers-ity to a virtual standstill, with staff unable to access research grants or pay salaries and bills.

Oracle, a American software supplier, had provided a "poor quality" product while KPMG had "made a series of serious mistakes", the report said.

But it also found that the university, which has a £350m turnover, was incapable of accounting for its money.

The university refused yesterday to name the companies it intended to pursue.

A spokeswoman for KPMG Consulting said: "We believe that both reports contain a number of serious inaccuracies. We are now actively considering the contents of the reports with our legal advisers."

Oracle said that it was still working with the university and that client confidentiality prevented it discussing the case.