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Cost to fix Phoenix pay system rises to $25M; wipes out one-third of savings

Deputy Minister of Public Works and Government Services Marie Lemay (right) and and associate assistant deputy minister Rosanna Di Paola speak to reporters during a technical briefing on the Phoenix pay system on Thursday, Aug. 11, 2016 in Ottawa. THE CANADIAN PRESS/Justin Tang

OTTAWA – The cost of fixing problems with the federal government’s new payroll system continues to soar.

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Marie Lemay, deputy minister of Public Works and Government Services, says measures adopted to deal with a backlog of nearly 77,000 pay issue claims have already cost $25 million.

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But while Lemay says that amount is certain to climb, it will be weeks before her department knows just how much higher.

READ MORE: New cases emerge as government approaches ‘critical mass’ of complaints

The previous Conservative government had estimated that adoption of the so-called Phoenix system would save the federal treasury $70 million annually.

Lemay can’t say whether any of those savings will be achieved as a result of the system’s failures.

Officials say another 69 civil servants came forward in the last week, reporting they weren’t being paid at all.

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