Public Values

NYC taxpayers lose billions to contracted firm in latest fraud scandal

The cost of 'having private companies involved in the public's business' exposed.

Day: Under the current administration, the city has steadily shifted how it uses private companies.November 15, 2011: Amid a myriad of examples of private consultants taking longer than expected to complete projects at higher costs than anticipated, failing to train employees to create an abnormal need for their services, and defrauding city taxpayers, Adrienne Day warns on CityLimit.org that the real danger lies in the lack of real accountability or transparency inherent in outsourcing.

"It was a scandal so big, it pushed an IT deal into the headlines of New York City's sexed-up tabloids: CityTime, a software system that was supposed to modernise the city's payroll administration, turned out to be riddled with fraud.

A $63 million contract with Science Applications International Corp (SAIC) that began in 1998 and was to be completed by 2003 had ballooned to at least $700 million and remained unfinished. But that was, in a way, the good news. The bad news was that at least some of the millions had allegedly been embezzled by the very people the Bloomberg administration trusted to oversee the work…"

For the complete article, please click here.

Posted: November 22, 2011

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