Contractor Strikes $500 Million Deal in City Payroll Scandal (New York Times)
A major government contractor agreed on Wednesday to pay a record $500 million to avoid federal prosecution for its role in the scandal-tarred CityTime project, an effort at modernizing New York’s payroll system. The project was plagued by widespread fraud and weak oversight and became a lingering embarrassment for Mayor Michael R. Bloomberg’s administration.There is a great need to bring modern time and attendance techniques to the operations of cities large and small. The potential ROI is huge.
Under an agreement with federal prosecutors, the contractor, Science Applications International Corporation, will reimburse the city for about 80 percent of the money it spent on the project, whose budget ballooned to nearly $700 million, from $73 million, and was described by the United States attorney in Manhattan, Preet Bharara, as “a fraudsters’ field day that lasted seven years.”
