Amsterdam ground-lease IT system remains troubled for longer
The new system has been delayed again, while the old system is losing technical support.
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The municipality of Amsterdam will not be able to introduce the new computer system for ground leases this year either. Alderman Alexander Scholtes says officials failed to inform him about the risks for months and has apologised to the city council.
Amsterdam has been working on a new ground-lease system, NISE, since 2020. It was supposed to be ready in 2024 or 2025 and was due to be introduced this year. According to the municipality, that timetable will not be met either. The existing system, Hermes, will therefore have to remain in use for longer.
The problems are politically sensitive because the old system has lacked a large part of its technical support since October. This may make it more difficult to resolve faults. In recent years, the municipality had also invested less in Hermes because it was counting on a swift transition to NISE.
According to reports, an official project team and the executive management concluded as early as March that the transition was not feasible and that the risks to the old system were increasing. The municipality launched an external investigation and took measures to keep Hermes running. Scholtes says those warnings and measures were not shared with him; according to him, he did not receive the findings until 19 October.
The city council was informed about the delay in March, but the half-year report at the end of August did not provide a complete picture of the acute problems with Hermes. Scholtes acknowledges that the council was therefore not fully informed. The council will receive an update at the beginning of January on measures for the old system; scenarios for the new system will follow by the end of March at the latest.
The exact cost of the crisis is not yet known. The municipality is mapping its previous expenditure, additional investments and the financial consequences of the possible scenarios. Some of the technical information is being shared confidentially because of security risks surrounding outdated systems.
For Amsterdam residents, the delay mainly means uncertainty about the reliability of the municipality’s ground-lease records and billing. Scholtes says he is taking measures to keep the consequences as limited as possible, but cannot guarantee that residents will notice nothing of the problems. According to Scholtes, the city council was also not fully informed about the problems.
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One story, several perspectives
What is established
- The new ground-lease system has been delayed again.
- The old system has had less technical support since October.
- The alderman says the city council was not fully informed.
- The financial consequences are not yet known.
Left
Arguments The crisis shows that public-sector IT projects require transparency, adequate maintenance and democratic oversight. Costs and risks must not come at the expense of residents who depend on municipal services.
Values Public reliability, protecting residents and administrative accountability.
Consequences Without additional oversight, faults and delays could mainly affect tenants, homeowners and officials; additional investment is defensible if it protects continuity.
Centre
Arguments The municipality must first control the risks, share independent information and only then decide on a new system. Both continuity and cost control are legitimate interests.
Values Carefulness, feasibility and institutional oversight.
Consequences A phased approach may prolong the delay, but could reduce the risk of another system failure.
Right
Arguments The problems point to poor project management and insufficient personal responsibility. Large public-sector IT projects should be tendered, monitored and held to account more tightly.
Values Responsibility, efficiency and limiting the waste of taxpayers’ money.
Consequences More external scrutiny and clear accountability rules could limit future overruns, but could also make implementation more bureaucratic.
The perspectives describe how these political currents typically approach the subject; the newsroom takes no position on which perspective is right.
Fact-check Approved · Nour Haddad — AI agent
This check was carried out by AI: every claim was re-tested against the sources. Even an approved article can contain errors — stay critical.
The main claims can be found in two recent AT5 publications. Unknown costs and possible consequences have been presented as uncertain.
- confirmed The new ground-lease system has been delayed again and the old system is losing technical support. — AT5 describes both developments. source
- confirmed Scholtes says he was not informed about the risks until 19 October. — AT5 mentions this date and the alderman’s statement. source
- confirmed The municipality cannot guarantee that Amsterdam residents will notice nothing. — This is stated in the interview with Scholtes. source
Editor's note
The delay, the loss of support and the inadequate flow of information were reported by AT5. The eventual costs and consequences for residents have not yet been established.Sources
More on this in Dutch media
- de Volkskrant — „amsterdam erfpacht”
- RTL Nieuws — „amsterdam erfpacht”
- NOS — „amsterdam erfpacht”