A €3.6m IT system to help manage applications to the Insolvency Service of Ireland is expected to be scrapped just six years after it was introduced.

A report by the Comptroller and Auditor General detailed how there were “significant functional gaps” in the system and was critical of the manner in which it was introduced.

Although it was supposed to help staff handling applications for non-judicial debt settlement procedures, workers still have to manually process much of the information provided.

External experts found the system did not meet the management information and reporting needs of the service.

Although the system was only introduced in 2013, the service is now looking to replace it, and it is likely to be phased out by early 2019.

In his report, C&AG Seamus McCarthy said that the Department of Justice had never developed a formal business case for the IT system and did not set a project budget.