Bloomberg’s City Time Scandal


I can be hard on unions, however, there is something to be said for their not wanting to give on contracts when they see the fraud that escapes notice and costs jobs? The City Time Scandal would be one such case of fraud. While Bloomberg is cutting a 1000 jobs and college tuition grants, $700,000 was blown on a corrupt private contracting corporation which escaped oversight.

Preet Baharara, the U.S. Attorney for the Southern District of New York, told reporters, “The crimes alleged in today’s superseding indictment are truly jaw dropping,” said Baharara. “They reveal one of the most elaborate and massive schemes to defraud the city ever charged.”

The scheme started as an outsourced contract that would develop a payroll system to track the hours of city employees. It started out as $63 million under Giuliani and ballooned to more than $700 million under Bloomberg’s oblivious leadership. Federal prosecutors now say at least $600 million of that was “tainted.”

It is understandable that Bloomberg didn’t have time to make sure the contractors were doing their job. He is busy getting salt off restaurant tables and liquor out of the city.

There was corruption at every level of this system according to Federal prosecutors. The prime contractor was the defense contractor Scientific Applications International Corporation. The SAIC CEO hired consultants at inflated rates, deliberately delayed implementation of  the project, and approved unnecessary work orders for staffing increases.”

Bloomberg’s three person oversight panel fell down on the job. Lobbying corruption entered into the scheme of course.

Two of the criminals involved have fled to India.

The job has now gone to city workers and the city is cutting down on the use of outside contractors. Every rock you turn over reveals more corruption. Read here: City Time Scandal