We see only green here sir...
Isn't that what anyone would expect from an IBM led delivery project. An artful construction of status reporting that ensure there is no issues at all except with the customer...
And trying to control billable change requests with Agile is nonsense, you are changing as you go - that's a blank cheque, particularly if the project didn't waterfall long enough to identify the rough edges.
As for selling vaporware - that's fairly standard, although IBM clearly didn't apply enough business knowledge to know this was going to be a bit tough. Not sure anywhere else has a premium tax like UK for example.
Over £10m annually for support? yikes, I hope that is a very broad definition of support, or that would be another moneypit, attracting permanent fees for changes. Frankly that seems an awful lot in proportion, particularly as costs should go down over time, not up as the system stabilises in its new form.