Software deal has Davis doing damage control : (California Oraclegate )

The San Diego Union Tribune ^ | May 4, 2002 | James P. Sweeney

[Ernest_at_the_Beach]

SACRAMENTO – Gov. Gray Davis scrambled yesterday to contain a computer software scandal that threatens to become a dominant issue in his re-election campaign.

The governor said his administration has opened talks to scrap a $95 million contract with Oracle Corp., which he insisted was approved without his knowledge. He also took credit for removing three state officials who promoted or signed off on the much-criticized deal.

"I had no idea this contract was being negotiated," Davis told reporters. "I think most of you know I'm barely on the information on-ramp, much less proficient in technology. So this is not a matter that would normally come to my attention, nor did it."

The Democratic governor acknowledged his reputation for keeping a tight rein on his administration, but said he only micro-manages "what's on my plate."

The Oracle mess escalated dramatically over the past week as two Davis appointees resigned and a third was placed on leave. On Thursday, state agents responded to a report of document shredding at the Department of Information Technology.

Arun Baheti, the governor's chief technology adviser, resigned after reportedly disclosing that he had personally accepted a $25,000 check from Oracle to the governor's campaign.

The check was dated before the contract was approved but not forwarded to the campaign until after the deal was signed, Davis campaign aides confirmed. Nothing is known to be illegal about the transaction, but the Davis administration said it does not allow state employees to handle campaign contributions.

"I don't know the details of that," Davis said when asked about the $25,000 check, "and I'm not going to comment on it until I do."

The six-year Oracle contract was approved last May after being blessed by some of Davis' closest advisers, including Cabinet Secretary Susan Kennedy and Finance Director Tim Gage.

But rather than saving the state $16 million as promised, the contract could cost taxpayers up to an extra $41 million, state auditor Elaine Howle concluded. Oracle still contends the contract would result in substantial savings for the state and company officials point to an earlier assessment by former state auditor Kurt Sjoberg, who estimated the deal could save the state up to $163 million over 10 years.

Howle said the contract overestimated the state's needs.

"I am as mad as anyone else," Davis said yesterday. "This shouldn't happen on anyone's watch. We're getting to the bottom of it."

Davis said his administration and the Attorney General's Office were working to rescind the contract, apparently moving to accept an offer Oracle officials said they made months ago, when the deal first aroused public attention.

"People made a bad judgment for the taxpayers of California. I do not want that to stand, and I believe we will be able to (undo) that," Davis said.

Steve Maviglio, the governor's press secretary, said there are complex legal and financial matters that must be sorted out before the contract can be canceled.

An Oracle spokesman said the Redwood City company remains ready to cooperate.

"When our contract ... first became an issue several months ago, we offered to rescind the deal," Oracle's Jim Finn said. "That offer was rejected by the state. Today, we are renewing that offer.

"While we are prepared to unwind our involvement in the contract, there are multiple parties in this transaction who would also need to agree ... for the contract to be completely undone."

A week ago, General Services Director Barry Keene resigned, saying he should have taken a closer look at the contract that he signed.

Along with Baheti's resignation Thursday, the governor suspended Elias Cortez, director of the Department of Information Technology and a prominent proponent of the deal.

Yesterday, Davis took credit for both resignations and the suspension.

"As information comes to me, I am acting decisively," he said. "I have removed three people from their positions and will take other appropriate action as information warrants."

With a staggering budget deficit now pegged at more than $20 billion, Davis didn't need any more bad news as he pushes toward a November election against Republican Bill Simon, who has seized on the contract controversy.

"The dots are starting to be connected and they paint a very troubling picture," Simon said in a statement yesterday. "The taxpayers need to know whether the dots lead all the way to the governor's office."

Even before the contract debacle, Simon had joined longtime Davis critics who contend actions by the governor, a prolific fund-raiser, benefit contributors. Davis steadfastly denies such accusations.

The focus of the controversy will shift Monday to a hearing of an oversight panel, the Joint Legislative Audit Committee. Cortez and a number of other administration officials who reviewed the deal are scheduled to testify.

[Ernest_at_the_Beach]

I like this comment by Simon:

"The dots are starting to be connected and they paint a very troubling picture," Simon said in a statement yesterday. "The taxpayers need to know whether the dots lead all the way to the governor's office."

[Ernest_at_the_Beach]

calgov2002:

calgov2002: for old calgov2002 articles. 

calgov2002: for new calgov2002 articles. 

Other Bump Lists at: Free Republic Bump List Register

[bybybill]

Grey, that stuff on your plate, it looks like B.S....if California had a real newspaper that would really investigate this and other Greyout`s fund raising, Simon wins big

[d14truth]

Song and dance

What is the Davis response?

[17th Miss Regt]

Davis is a liar in the Clinton style. "I didn't know anything about this, just what I read in the newspapers." Sound familiar? He is trying to undo a contract his guy signed because it was a minor disaster. Just like the energy contracts that he was so proud of last summer. What a weasel.

[Bonaparte]

Still waiting for him to fire Kennedy and Gage, his "close advisors," who were in on the deal and gave it the go-ahead. Since the contract would not have gone through without them, how come only these 3 underlings are let go? Can't wait to find out what got shredded. I'll betcha words like "Davis" and "the Governor" show up a lot on those documents.

[Bonaparte]

"What a weasel."

"Now you listen to me. I did not have business relations with that company, Oracle."

[LarryLied]

Tell me Davis is done.

[Ernest_at_the_Beach]

Well I could tell you that, but in California he might not stay done!

LOL!

But he is not doing real well right now!

[Ernest_at_the_Beach]

I like this article because it gives one hope that Davis may not be able to recover from Oraclegate:

Scandal could hit Davis hard - Costly Oracle deal may have lasting fallout

[newzjunkey]

This isn't much of a scandal even with the short fall. Zzzz.

[Liz]

The Democratic governor acknowledged his reputation for keeping a tight rein
on his administration, but said he only micro-manages "what's on my plate."

And now graydavis is eating crow. LOL.

[LarryLied]

I like Davis taking payoffs from the plumbers unions better. No plastic pipe is now allowed coming into a house. That one is great. The costs to citizens will go on and on.

[hchutch]

Hand-in-the-cookie-jar bump.

[gaspar]

Wrong. This is a disaster for Davis because it reminds Californians just how corrupt and inept his administration has been. The scandal could not have come at a more inopportune time. Just when he hopes to begin bashing Simon he is forced on the defensive. This one has legs and will last at least for another month -- and thus crucial weeks will be lost in an election year.

[harpo11]

The great Govenor Gray-out Techno-dud & Electricity-Dolt Davis will try to abort his latest scandal.

Hopefully, the people of California will say enough is enough and not allow him to slither away from his accountability and responsibility as the top ranking micro-manager, campaign fund raiser, biggest tax spending deficit maker of the state.

Davis flitters around grabbing up huge campaign money, actually demanding million dollar campaign donations from California Teachers Unions, Carpenter Unions, et al., acting like some great know-it-all wise man, when all can see that he only cares about himself and abortion. He has been utterly useless, pathetic and completely ill-prepared to effectively run this great and beautiful State and show magnificent growth results, well other than the huge influx of illegal immigrant growth and budget deficits.

Veto Gray-Outs and Techno-Flop Davis!

[Ben Bolt]

I think your correct on this . The art of the Democrat attacks is so crucial with timing , those lost few weeks will be vital . I've seen some crazy things out there having been a resident for 33 years but I think this 1 has legs also . All they have to do is to keep on digging .. Exposing that man Davis for what he really is .