June 1, 2012
John Liu claims HP should repay $163 million (€132 million) after purportedly overcharging for work on city’s 911 system overhaul.
NYDailyNews reports that City Controller Liu claimed HP “repeatedly submitted inflated and questionable billings” during its role as lead contractor on New York’s emergency system overhaul, allegedly paying office clerks “as much as $192 (€155) an hour” and charging “more than 50 percent markups” for the 413 subcontractors used.
According to the article, the project has exceeded its cost from $1.3 billion (€1.05 billion) to $2.3 billion (€1.8 billion), and is six years behind schedule due to mismanagement of city officials.
Liu claimed that HP has been paid “$346 million (€280 million) of a total $380 million (€308 million)” for its work, “despite finishing only one of three main components it had contracted to deliver”. He has purportedly asked a Manhattan District Attorney to investigate, with prosecutors already starting to question those involved in the project.
However, New York mayoral spokesman Marc La Vorgna insists that Liu’s claims are inaccurate, commenting: “The HP work is complete and came in $34 million (€7.5 million) under the budget registered by the comptroller’s office”; and an HP spokesman denied that the other two components Liu claimed were in the contract but never completed by HP were not included, although the company are “checking in detail” Liu’s findings.
HP was eventually ousted by the city, with Department of Information Technology and Telecommunications signing off on all HP’s billings and the contract passed over to defense technology company Northrop and Grumman; but Liu claims that the city “faces $366 million (€296 million) in cost overruns as a result.”
Categories : City News