NYC mayor requests refund for CityTime payroll project
New York City Mayor Michael Bloomberg recently ordered the lead contractor of the company in charge of the city's beleaguered time and attendance software project to refund the $600 million it has been paid for the project since 2003.
The CityTime project has been dogged with controversy, including a scandal involving several of the subcontractors' employees being accused of engaging in an $80 million embezzlement scheme in December of last year. Additionally, the chief systems engineer for Science Applications International Corporation - the company in charge of the project - recently pleaded guilty to wire fraud conspiracy, wire fraud and money laundering conspiracy, and a senior SAIC employee was fired for payroll fraud.
Although the contract for an automated payroll system has been fulfilled and CityTime is now being used to track the employee attendance of approximately 163,000 city workers, Bloomberg maintained that this does not excuse the troubles associated with the project.
"Because the project was apparently tainted by fraud and kickback schemes, the city must be made whole," he wrote in a letter to SAIC's CEO. "I am, therefore, requesting that SAIC reimburse the city for all sums paid to it … as well as the cost of investigating and remediating the matter."
The CityTime project has been dogged with controversy, including a scandal involving several of the subcontractors' employees being accused of engaging in an $80 million embezzlement scheme in December of last year. Additionally, the chief systems engineer for Science Applications International Corporation - the company in charge of the project - recently pleaded guilty to wire fraud conspiracy, wire fraud and money laundering conspiracy, and a senior SAIC employee was fired for payroll fraud.
Although the contract for an automated payroll system has been fulfilled and CityTime is now being used to track the employee attendance of approximately 163,000 city workers, Bloomberg maintained that this does not excuse the troubles associated with the project.
"Because the project was apparently tainted by fraud and kickback schemes, the city must be made whole," he wrote in a letter to SAIC's CEO. "I am, therefore, requesting that SAIC reimburse the city for all sums paid to it … as well as the cost of investigating and remediating the matter."
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