Private Contractor Cost $600 Million in Fraud

Isn't privatization great? Look at all the money it saves. Bloomberg has shown horrible leadership when it comes to privatization and should RESIGN. Mike wants our CityTime $$ back It's about time. Mayor Bloomberg launched a frontal assault yesterday on the prime contractor of the CityTime payroll system, demanding the return of the entire $600 million it received over the past decade on a project... [more]

Isn't privatization great? Look at all the money it saves. Bloomberg has shown horrible leadership when it comes to privatization and should RESIGN. Mike wants our CityTime $$ back It's about time. Mayor Bloomberg launched a frontal assault yesterday on the prime contractor of the CityTime payroll system, demanding the return of the entire $600 million it received over the past decade on a project prosecutors charge was rife with corruption on an epic scale. "While we have received a working system that will advance our management ability . . . because the project was apparently tainted by fraud and kickback schemes, the city must be made whole," Bloomberg notified Walter Havenstein, CEO of Science Applications International Corp. The mayor pointed out that SAIC, as early as 2005, received a whistleblower complaint about possible mismanagement and alleged kickbacks to its lead project manager, Gerard Denault, who has since been indicted for fraud, conspiracy and obstruction of justice. "It is unclear what SAIC did at that time to investigate these serious allegations," the mayor said. The end of Bloomberg's blunt, four-paragraph letter gave SAIC something more to think about. "I am forwarding this correspondence to the United States Attorney so that the city's position as a victim can be taken into consideration," the mayor said. US Attorney Preet Bharara has indicted 11 individuals and one corporation in the scandal, which involves hundreds of contractors, systemic overbilling and an international money-laundering conspiracy. He has seized more than $38 million from 100 bank accounts. http://www.nypost.com/p/news/local/mike_wants_our_citytime_back_MSjoaqqLYqIR4UGner7PuM#ixzz1Qt7PgG7t [less]