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SAAQ’s ERP Disaster: How a Government Tech Project Led to Police Raids

SAAQ’s ERP Disaster: How a Government Tech Project Led to Police Raids

SAAQ's SAP implementation collapsed under dysfunction and denial—offering brutal lessons for any organization leading digital transformation.

Not all ERP failures are created equal.

Some are frustrating. Some are expensive.

And then there’s the one that triggers a criminal investigation.

That’s what happened in Quebec, Canada.

The province’s motor vehicle agency, Société de l’assurance automobile du Québec (SAAQ), set out to modernize its systems with a new SAP-based ERP platform.

What followed was one of the most chaotic digital transformation failures in recent memory.


A System Upgrade That Broke the System

The project, known as SAAQclic, was meant to streamline driver licensing and vehicle registration services.

Instead, when it launched in early 2023, it brought the entire agency to its knees.

Citizens waited 8 to 12 hours in the cold just to renew a license.

Online platforms crashed. Staff couldn't access internal records. Frontline workers were left improvising with paper forms and verbal apologies.


The Fallout Was Immediate—and Escalated

Within weeks, media across Canada called it a "bureaucratic catastrophe."

Public pressure mounted.

The provincial government had to deploy emergency response teams to manage the backlog. Staff were pulled from other departments. Overtime exploded.

In March 2023, the situation escalated further.

UPAC—Quebec’s anti-corruption police unit—raided SAAQ offices and seized documents. The probe centered on mismanagement, contracts, and vendor oversight.


Where It Went Wrong

1. Leadership Dysfunction

The project changed hands multiple times. Each leader brought different goals, disrupting continuity.

Internal warnings were ignored. Some officials flagged readiness issues months before launch. But no one hit pause.

2. Vendor Chaos

The implementation involved multiple subcontractors, including third-party integrators and SAP consultants.

Oversight weakened. Responsibility blurred. When systems failed, finger-pointing began.

3. No Phased Rollout

Rather than piloting the system or running dual environments, SAAQ opted for a full switch.

When it failed, there was no fallback.

This wasn't just a bad day. It was a collapse in operational continuity for a public agency serving millions.


This Isn’t an Outlier

ERP failures aren’t rare.

🔹 Nike lost an estimated $100 million in 2000 due to a failed supply chain system rollout with i2 Technologies.

🔹 Hershey’s missed $100 million in orders before Halloween in 1999 after a rushed SAP implementation.

🔹 Levi Strauss wrote off nearly $192 million in 2008 due to an Oracle ERP failure that took down its operations.

The problem isn’t always the software. It's the execution, governance, and clarity of decision-making.


The Mirage of “That Won’t Happen to Us”

Every disaster looks absurd in hindsight.

But it never starts with a police raid.

It starts with ignored risk logs, unclear accountability, and a culture where raising concerns is seen as disruptive.

SAAQ didn’t plan to fail.

They just failed to pause.


How To Avoid Becoming the Next Headline

Here’s what top-tier organizations do differently:

Create an Escalation Path: Ensure engineers and users can flag critical issues without fear of retribution.

Run Parallel Systems: Phase rollouts wherever possible. Dual-run environments catch failures before they become public.

Clarify Accountability: Who owns success? If everyone is responsible, no one is.

Audit Vendor Incentives: Are your vendors paid to complete implementation—or to ensure it works?


Clarity Over Complexity

The best-run projects prioritize strategic governance, not just timelines.

They structure transformation like a living operation, not a single event.

They know a failed system isn’t just a cost center—it’s a reputational time bomb.


SAAQ’s ERP meltdown isn’t just a Canadian problem.

It’s a global warning.

When technology projects go wrong at scale, the cost is more than money.

It's lost trust. Burned-out teams. And sometimes, police reports.


 

At Maldicore, we’re offering private 1:1 advisory sessions to help organizations avoid the pitfalls before they start.

Whether you’re planning a digital rollout, mid-way through implementation, or recovering from a rough launch—we can advise.

📩 Email us at info@maldicore.com to book a confidential review.

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