NYC-SAIC contractor must repay $600 million due to probe

Reuters News
Posted: Jun 29, 2011 3:03 PM

NEW YORK (Reuters) - New York City Mayor Michael Bloomberg on Wednesday demanded that SAIC Inc reimburse the city for $600 million plus certain costs due to a federal fraud probe of the technology contractor's work for the city.

Bloomberg has admitted he, too, was at fault for allowing the cost of the CityTime project, which aimed to automate timekeeping for city employees, to spiral out of control.

In a letter to the McLean, Virginia-based company that the Mayor's Office released, Bloomberg said "because the project was apparently tainted by fraud and kickback schemes, the City must be made whole."

(Reporting by Joan Gralla; Editing by Jan Paschal)