CEO of SAIC comments on conference call today:
From Suzannah Troy: Yeah folks but CityTIme doesn’t work from what I hear -- people use a pencil....
like Karen Shaffer as just one example....http://suzannahbtroy.blogspot.com/2011/05/karen-shaffer-must-be-fired-bloombergs.html
below his comment....
"I would next like to update you on CityTime, the workforce management system that is currently being used by more than 65 New York City municipal agencies. As we've disclosed previously, the U.S. Attorney's office is conducting a criminal investigation relating to the CityTime program. Two former SAIC employees, along with other contractors on this program, have been charged with conspiring to defraud the City of New York for their own profit by taking kickbacks and increasing the cost of the program. The 2 former SAIC employees have also been charged with defrauding SAIC by depriving it of their honest services.
One of these former SAIC employees has pleaded guilty to multiple charges, including taking millions of dollars in kickbacks from an SAIC subcontractor. The company is continuing to cooperate with the U.S. Attorney's investigation, but cannot predict its outcome.
After a comprehensive review of the CityTime program, including a review of management performance, a group president, a deputy group president and a business unit general manager responsible for management and oversight of the CityTime program were removed and are no longer with the company. The company is not aware of any evidence that these individuals had any personal involvement in the CityTime fraud.
In addition to taking these personnel actions, the company engaged an outside law firm to assist company leadership in conducting a comprehensive review of key policies and practices and to recommend enhancement to strengthen the company's culture of ethics, accountability and compliance. As a result of this systemic review, the implementation of process improvements and control enhancements by the company is now underway.
In addition, a special committee of the Board of Directors that is overseeing the company's response to CityTime has engaged an independent company, Guidepost Solutions, and specifically its chairman, Bart Schwartz, to undertake its own review and monitor the efforts the company is making in response to this matter.
Based on developments related to the CityTime matter since our last quarterly filing, the company now estimates that its loss relating to the CityTime program will be at least $232 million. Accordingly, we have taken a loss provision for that amount this quarter. An updated description of the CityTime matter will be included in the 10-Q, which we will file this week.”
See my earlier posts today...
Wall Street Journal article a plant -- pure SAIC cover-up and won’t allow anyone to comment for fear of the truth being posted.
