The implementation of a new SAP IT system in the public administration of Saxony and Saxony-Anhalt has led to widespread chaos in payment processing. Authorities have lost control over transfers worth millions of euros, paralyzing the work of universities, police, and fine collection offices.
Paralysis of Saxony's Main State Treasury
Software errors prevent correct assignment of incoming revenues and execution of outgoing payments in the region.
Crisis at universities
At least eight universities cannot verify the status of semester fees worth millions of euros.
Suspension of fine enforcement
The Central Fine Collection Office has suspended sending reminders and enforcement procedures due to system errors.
Problem in two states
Identical problems with the financial system have also been recorded in the neighboring state of Saxony-Anhalt.
The implementation of a new SAP IT system in the public administration of Saxony and Saxony-Anhalt has led to widespread chaos in payment processing, as reported on March 12, 2026, by MDR. In Saxony, the most serious problems were recorded by the Main State Treasury, which lost control over transactions worth millions of euros. The software failure prevents precise tracking of revenues and expenditures, directly impacting the functioning of key state institutions. Preparations for this digital transformation in the Saxon financial administration lasted nearly five years, but the switch to the new operating system has caused administrative paralysis.
The effects of the glitch have affected at least eight universities in Saxony, where students and administration are struggling with unclear statuses of semester fees. The system is unable to verify whether the required amounts have been paid, creating uncertainty in recruitment and administrative processes. The problems have also not spared law enforcement and judicial authorities. The Central Fine Collection Office in Saxony was forced to completely suspend reminder and enforcement procedures because officials are unsure which fines have already been settled by citizens.
Public administration in Germany has been undergoing a digitization process based on solutions from SAP, one of the world's largest business software providers, for years. In Saxony-Anhalt, the IT infrastructure is managed by Dataport, a provider of IT services for several states in northern and eastern Germany. Similar implementations of ERP-class systems in the public sector have repeatedly been associated with temporary difficulties due to the complex legal and financial structure of government offices.
According to findings by MDR Investigativ journalists, identical difficulties are occurring in Saxony-Anhalt, where the IT system was also changed at the beginning of 2026. The state treasury and offices responsible for imposing fines there are grappling with a similar lack of transparency in cash flows. The Ministry of Finance of Saxony-Anhalt, headed by Michael Richter, announced it would officially address the scale of the problems on Friday, March 13, 2026. Work is currently underway to restore full system functionality, but the scale of the backlog in payment accounting remains unknown.
SAP system implementation and escalation of problems: March 2021 — Start of preparations; January 2026 — System changeover; March 12, 2026 — MDR report; March 13, 2026 — Promise of explanations
Mentioned People
- Michael Richter — Minister of Finance for the state of Saxony-Anhalt