Committee blasts Davis administration on Oracle contract. "We got taken to the cleaners"

Ventura County Star ^ | June 18, 2002

[John Jorsett]

SACRAMENTO- A legislative committee investigating a potentially costly state computer contract has wrapped up its hearing with scathing criticism of the Davis administration's handling of the deal.

"I think we got taken to the cleaners...," Assemblyman Dean Florez, D-Shafter, said Monday night as the Joint Legislative Audit Committee completed more than 110 hours of testimony.

"Every agency head involved in this fiasco _ as well as the governor's policy adviser, cabinet secretary and director of e-government _ abdicated their duties to the detriment of taxpayers and to the benefit of the corporate interests."

Republicans pressed for even more hearings on the $95 million, no-bid agreement with the Oracle Corp., suggesting that the testimony had revealed a "culture of corruption in state government."

"We cannot adjourn," said Assemblyman Bill Leonard, R-Rancho Cucamonga. "If we do adjourn we allow this creeping culture of corruption to take over state government."

A spokesman for Democratic Gov. Gray Davis, Hilary McLean, said some former administration officials "did not perform due diligence" in verifying claims that the contract would save the state money.

But she said the administration "has worked (to implement its programs) with the highest ethical standards."

"The governor, throughout this review, wanted as much as anyone to know what happened and how we could avoid something like this from happening again," she said.

The contract was supposed to save the state more than $100 million through volume purchases and maintenance of database software, but the state auditor says it could end up costing up to $41 million more than if the state had stuck to other software supply arrangements.

Oracle officials have heatedly disputed the auditor's conclusions and described the contract as a fabulous deal for the state.

But Florez, the committee's chairman, said the auditor had done "excellent work" and suggested that the contract would have died if it hadn't been for "improper influences _ political or monetary."

"This contract was at a standstill before Oracle began pulling political strings," Florez said, referring to testimony that Sen. Richard Polanco, D-Los Angeles, made a call to the Department of Finance to get a review of the contract going. Polanco's son works for Oracle.

"Now, if that's not political influence at work, I don't know what is."

The department also got a call from Kari Dohn, Davis' policy director, asking what was holding up the contract, a day after she had a meeting with the contract's pitchmen, Florez said.

He suggested an e-mail written by former Oracle lobbyist Ravi Mehta urging that Oracle make campaign contributions to several key legislators was "nothing less than a proposal to pay off certain legislators in order to keep this contract alive and ensure they are helpful to Oracle."

Oracle officials say the donations were never made.

Assemblyman Rod Pacheco, R-Riverside, asserted that administration officials pushed the contract over objections from some of their subordinates to satisfy a major Davis campaign contributor.

"Money was used to get this contract and money was used to protect this contract," he said.

That was a reference to the $25,000 check that Mehta gave to a Davis aide for the governor's re-election campaign five days after the contract was signed.

Both the governor and Oracle have denied any link between the money and the contract, but Davis has returned the donation and the state and Oracle are discussing how to rescind the agreement.

Assemblyman Fred Keeley, D-Boulder Creek, said the committee hadn't found any evidence "of bribery, kickbacks or other forms of corruption." But he said the strong advocacy for the agreement in the administration "does give one pause. We have not been able to rule out some of the darker hypotheses."

He said it was time to allow the attorney general office to conduct its investigation of the contract.

A spokesman for Attorney General Bill Lockyer, Nathan Barankin, said Monday night that that probe is ongoing.

"We have not made any determination about any cases yet," he said. "We are investigating. If there are any cases based on (violations of) the law we will bring them."

[John Jorsett]

More grist for the mill. Forgot to put the CALGOV2002 keyword in.

[Ernest_at_the_Beach]

Thanks for posting this local piece!

Davis has got to be working full time keeping this off the Major papers Front pages!

calgov2002:

calgov2002: for old calgov2002 articles. 

calgov2002: for new calgov2002 articles. 

Other Bump Lists at: Free Republic Bump List Register

[John Jorsett]

Yeah. The story's going to appear in Weekly Bargain Hunters everywhere, I'm sure, but it's not going to get the kind of splash it deserves.

[Political Junkie Too]

"If we do adjourn we allow this creeping culture of corruption to take over state government."

That phrase has a nice sound to it.

-PJ

[NormsRevenge]

A spokesman for Democratic Gov. Gray Davis, Hilary McLean, said some former administration officials "did not perform due diligence" in verifying claims that the contract would save the state money.

But she said the administration "has worked (to implement its programs) with the highest ethical standards."

"The governor, throughout this review, wanted as much as anyone to know what happened and how we could avoid something like this from happening again," she said.

Another Hilary :-\ ... BootLickers for Davi$ ..

Unfortunately for ol' GraYout, This Oracle story has legs. Question now is if Lockyer bites the hand that feeds him, so to speak?
DUMP DAVI$ & the Den of Socialists



GO SIMON

[d14truth]

"Taken to the cleaners"

What happens to the 'average person' during Socialist redistribution to the 'poor' with votes?

[d14truth]

"Lockyer investigation"

I checked, Governor. There's still room for more 'dirt' under the rug!

[Ernest_at_the_Beach]

ROFL!