From the NY Post:
The company responsible for the fraud-ridden CityTime payroll system acknowledged yesterday it will have to pay back at least $232 million to the Big Apple, according to records filed with the feds.
Virginia-based Science Applications International Corp., which already has sacked three top execs because of the CityTime boondoggle, said that it might well have to pay even more to City Hall but that the preliminary reimbursement sum is already proving to be a drag on company revenues. SAIC yesterday announced a $17 million loss for the third quarter.
“It is possible that the figure could be larger,” according to an SAIC statement released as the stock market was closing for the day.
SAIC CEO Walt Havenstein, in a conference call with analysts, said the company made the loss calculation based on recent “developments,” but he refused to elaborate.
CityTime was supposed to prevent fraud and time padding by city workers but instead became the biggest financial scandal of Mayor Bloomberg’s 10-year reign.
The megabucks payment is about 30 percent of the total of some $760 million the city spent on the system.