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Posted on 05/02/2002 6:15:50 PM PDT by Ernest_at_the_Beach
SACRAMENTO, Calif., May 2 (Reuters) - A top California Republican on Thursday demanded a federal probe of the state's controversial $95 million software contract with Oracle Corp. (NasdaqNM:ORCL - news).
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Assembly Republican leader Dave Cox asked the U.S. Attorney's Office to take over the investigation following a media report that a lawmaker leading a legislative review of the deal was being pressured to stop by officials in administration of Democratic Gov. Gray Davis.
The call comes two weeks after an audit blasted the deal with Oracle, saying the contract was awarded without competitive bids, with little legal oversight, for software that was little used and which could cost taxpayers $41 million.
"It's obvious that political forces would rather see this matter swept under the rug, and that usually means there's something to hide," Cox told a news conference. "An outside party would best be able to conduct this investigation."
The Republican party is in the minority in both houses of the state legislature and the Democrats promptly slammed the Republican request, saying it was just another political attack in a year when the governor is up for reelection.
A spokesman for Attorney General Bill Lockyer -- whose office is investigating the contract -- angrily denied that any conflicts of interest would hinder the probe.
"The California attorney general's office is vigorously investigating all aspects pertaining to the Oracle contract," said spokesman Nathan Barankin. "There is no conflict of interest. ... All there is, is the law."
SHREDDING ALLEGATIONS
The Davis administration seemed to be taking few chances with the budding scandal. A legal advisor to the governor reacted swiftly Thursday to what he said was an unsubstantiated report of document shredding in the case.
Barry Goode, the governor's legal affairs secretary, asked the attorney general's office to look into any shredding allegations, and dispatched the California Highway Patrol to secure all shredders and trash at the Department of Information Technology.
"While we had no conclusive evidence that any shredding or destruction of documents occurred, the mere suggestion that it may have occurred has led us to take these steps," Goode said.
Even with these rapid-fire responses, and despite the fact Davis recently ordered the attorney general to expand the investigation into the contract, and that the official in charge of the department that negotiated the contract resigned last week, the bungled deal has given Republicans ammunition in their bid to unseat the governor.
Bill Simon, the Republican gubernatorial candidate, said a San Jose Mercury News report Thursday that the Legislative Audit Committee investigating the Oracle contract has been hampered by the governor's administration showed the need for a third party to step in.
"Instead of cooperating, it appears the governor is trying to squash the investigation," Simon said in a statement.
The audit released April 17 offered a highly critical review of a deal in which state negotiators worked with little legal oversight and had no idea that Northrop Grumman (NYSE:NOC - news) unit Logicon, a consulting firm that worked with Oracle to pitch the deal and calculated the state would save more than a $100 million, itself stood to earn $28 million from the contract.
The audit also revealed that almost a year into the contract the three state departments involved in the deal were still figuring out how to pay for the software, and that as of mid-March no state workers were using the product.
Thought a picture might attract the attention of the 'Doofus' voters--
Datarape
What Gov. Davis and his 'Oracle' did to the State of California taxpayers?
GRAY DAVIS
A California abortion waiting to happen.
Davis will claim to be the 'victim' when he's the 'PERP'.
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