RailCorp has confirmed its new Ariba procurement software system is behind in processing thousands of payments to suppliers.
The Sydney Morning Herald reported today that a number of private bus companies and cleaning providers were among those affected by the delays, with some payments worth up to $100,000 each.
A spokesman for RailCorp NSW told iTnews there had "been some initial problems with payments to some suppliers through Ariba", which had been in place for six months.
"All major software implementations come with challenges," he said.
"We are working as hard as possible to rectify these issues."
The system had processed 120,000 payments since being installed, but the RailCorp spokesman admitted "there are around 7,000 payments outstanding."
The RailCorp spokesman apologised to those affected by the payment delays.
"RailCorp is working hard to process these late payments and we're confident the majority will be processed over the next three to four weeks," he said.
"We are working closely with suppliers who have urgent concerns to expedite payments."
The software was implemented to satisfy recommendations by the Independent Commission Against Corruption (ICAC) for more transparent procurement practices.
The ICAC had investigated allegations that RailCorp employees and contractors acted fraudulently or engaged in bribery when procuring goods and services.
The Ariba system covers more than 300 sourcing projects worth over $900 million at RailCorp, according to recent statements by Ariba.
RailCorp is the NSW state-owned corporation responsible for passenger rail services.