Mayor Bloomberg is requesting a $600 million refund from the company overseeing the CityTime project.
Citing criminal charges levied against at least two employees of Science Applications International Corporation, Bloomberg said the company’s oversight of the project were “extremely troubling and raise questions about SAIC’s corporate responsibility and internal controls.”
“[B]ecause the project was apparently tainted by fraud and kickback schemes, the City must be made whole,” the Mayor wrote in the June 29 letter to the company, a copy of which was also sent to the US Attorney in the southern district who is investigating the matter.
A spokesman for SAIC said they were formulating a response and would have a statement shortly.
Yesterday in a press conference, Bloomberg acknowledged that a number of people did not watch the program’s development closely enough, including himself.
Update: SAIC says they are “ready to discuss appropriate resolution of this matter, considering the breadth of the fraud alleged and the fact that SAIC delivered a system that the city said this week is working well.”