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California to Cancel Oracle Deal
ShaunC writes "Back in mid-April, the state of California bought $95M worth of Oracle software, which turned out to include more licenses than the state has employees, at a taxpayer cost of $41M more than necessary. Now, CNet is reporting that the contract is being cancelled. Oracle apparently made a $25K donation to governor Gray Davis' campaign fund after the sale was made, several state officials have been suspended, and a criminal investigation into the deal is already underway."
RTFA:
"Logicon, the Oracle reseller that negotiated the contract, agreed over the weekend to cancel its portion of the deal, clearing the way for the state to end the six-year contract for database management software, according to Davis spokesman Steve Maviglio."
If the investigation leads to a finding that the contract was part of a bribe, the contract could be nullified due to being based on a criminal act. The taxpayers will most definitely pay for any multi-million dollar trials, but Oracle may not be able to sue for breach of contract if a court finds the contract was signed for a bribe.
Developers: We can use your help.
And just how will they do that, when they made an offer to dissolve the contract if the State wished to do so?
Could Oracle Deal Put Simon Back On The Map? ... if their tax dollars are being wasted through gross incompetence -- or worse, being used to facilitate corruption."
... and takes Gray Davis off message. At a minimum, this is a godsend [to Simon]."
...
San Francisco Chronicle's Marinucci reports, Davis has run into "what Republicans hope will become the 'perfect storm' of campaign issues" for Simon. At issue is a $95M no-bid deal Oracle Corp. signed with the state that "could cost taxpayers $41 million" in "unnecessary charges." Making matters worse: a $25K campaign contribution from Oracle to Davis "handed over" to a Davis adviser "in a bar while the contract was being negotiated last spring." Making matters even worse: Reports of shredding of documents related to the contract by "state bureaucrats." The news found Simon "seizing the offensive for the first time," charging in a presser that "the scent of scandal surrounding this administration is growing." Although AG Bill Lockyer (D) is investigating, Simon said "more needed to be done." Simon: The dots are starting to be connected, and they paint a very troubling picture. Californians have a right and a need to know
Davis denied "allegations of impropriety, saying he did not know of the Oracle deal or the company's campaign contribution." And the "top three" Davis admin. officials "in charge of the contract have resigned, been fired or placed on suspension" (5/5).
About That Donation
The Davis camp "reported receiving a $25,000 donation from Oracle" 6/5/01, "Days after the contract was finalized. But Arun Baheti, the governor's director of e-government, told top Davis aides that he accepted the $25,000 check from an Oracle lobbyists before the negotiations were complete and mailed it to the campaign. The check had a March date." An Oracle spokesperson said the donation came from an April tech event "hosted by Davis that was attended by roughly 30 companies." Oracle said delivery of the check was "apparently delayed" and was "unrelated to the state contract" (Bustillo/Tamaki, Los Angeles Times, 5/6).
Just The Beginning? Or Going Nowhere?
Observers say the Oracle deal "could reinforce reservations that voters have expressed about Davis' fund-raising practices." GOP strategist Dan Schnur: "This Oracle mess is taking place in the middle of a budget crisis. It's easy to see how tens of millions in wasted money could have been spent on programs that Davis is cutting." And Simon -- to GOPers "glee -- made exactly that point when he lambasted the governor." Simon: "The money wasted on this Oracle contract could have paid for thousands of teachers, textbooks or lunches for needy children."
Berkeley prof. Bruce Cain said the Oracle story "shifts the media's attention from Simon's recent gaffes on such issues as whether he paid state taxes to the growing Oracle scandal." Cain: "[It] allowed him to go on the offense
Simon's aggressive stance "coincides with a decision to reach out to some seasoned political operatives with track records on aggressive campaigns." Simon has hired ex-Gov. Pete Wilson (R) spokesperson Sean Walsh; ex-spokesperson for Sec/State Bill Jones (R), Rob Lapsley; and researcher Mark Bogetich -- "a team that with little money, landed the toughest punches on Davis through the primary."
Walsh: "Every time that reporters and other people are turning over rocks, there are a lot of cockroaches running -- and they're all running for the center of the Capitol. And I see Bill Simon holding a big can of Raid" (Marinucci, San Francisco Chronicle, 5/5).
Said Schnur "after highway patrol officers descended on state offices" 5/2 to "prevent document destruction, no politician likes to see his name in the same headline as the word 'shredder'" (Chance, Sacramento Bee, 5/5).
NRCC Chair Rep. Tom Davis: "Gray Davis is in bad shape in terms of his personal popularity and voters wanting a change. But whether Simon's the guy to do it or not, we'll have to see" ("Capital Gang," CNN, 5/4).
Simon Dying To Get To This Guy
Simon said he "wants to see" Davis manager Garry South "on the witness stand regarding the timing of the $25,000 contribution," an idea Joint Legislative Audit Cmte chair Dean Florez (D) "quickly dismissed as ridiculous and politically motivated" (Bustillo/Tamaki, Los Angeles Times, 5/6).
Davis Offers His Take
Davis said his admin "has opened talks to scrap" the $95M deal with Oracle, "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." Davis: "I had no idea this contract was being negotiated. 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." Davis "acknowledged his reputation for keeping a tight reign on his" admin., but "said he only micro-manages 'what's on my plate'" (Sweeney, Copley News Service, 5/4).
What Will The Leg. Do?
Capitol Dems were placed in a "precarious position" by the news of the Oracle deal, "requiring them to react forcefully or face" GOP "criticisms that they are protecting their governor." GOPers have "already asked the federal government to conduct its own Oracle investigation, arguing that" Lockyer, "whom Davis asked to investigate the matter, cannot be impartial because he accepted $50,000 from the software maker in recent months." State Sen. Ray Haynes (R): "If they pursue this with the same vigor they pursued [former Insurance Commissioner Chuck] Quackenbush [R], I think we could compliment them and say they did good work, If they don't, then we go through a partisan drill that is nothing more than window dressing. That's going to be the test" (Bustillo/Tamaki, Los Angeles Times, 5/6).
The cmte today will take testimony from "key administration witnesses" (Chance, Sacramento Bee, 5/5).
No Surprise, Oracle Very Influential
San Francisco Chronicle's Salladay reports, Oracle has worked had to channel "its major campaign contributions to a select few" CA pols "wielding the most power over its livelihood." Almost "every elected official" who has received money from Oracle "has some measure of control over Oracle government business, or held influence over the $95 million software contract that has embarrassed the company" and Davis. Davis and Oracle are now working together to "cancel the contract" (5/6).
State Cabinet Sec. Susan Kennedy: "If somebody comes to you and says, 'I need something and it has to be right now,' the answer is 'No.'" Kennedy said she broke that "cardinal rule" when she put her signature on a "governor's action request" (GAR) that "gave the green light for the apparently overpriced software contract with Oracle Corp." Kennedy was presented with the GAR 5/31, the "three-page memo concluded" with a sense of "urgency, emphasizing 'the short window of opportunity.'" The "state fell for it and immediately signed" the deal. Kennedy said she "assumed all the advertised benefits had been checked out -- or would be -- by the other GAR signatories. They weren't" (Skelton, Los Angeles Times, 5/6).
my sig is an honor student
To make it that much worse for Oracle, IBM has just ousted them as the number one seller of database software. To put that in further perspective, they are losing market share to Micro$oft as well! The company is downplaying it, of course, and no word from Mr. Arroga^H^H^H^H^H^H Ellison yet.
libertarianswag.com
It's common for corporations to donate to candidates from both parties.
Oracle apparently made a $25K donation to governor Gray Davis' campaign fund after the sale was made...
This is true, but misleading, because the money was received by the head of the Dep't of Information Technology, not Davis himself, nor his campaign fund directly. The contract appears to have been completely mishandled, and perhaps manipulated, by the governor's cabinet, the CA Dep't of Information Technology, and its head, Elias Cortez, who's already been suspended pending the current investigations. Cabinet secretaries involved have already resigned, embarassed at their lack of proper review of the contract. There appears to be some malfeasance on the part of software advisors to the state who made money on the deal, and $25K & $50K campaign checks that've been making the rounds to one & all. It's all available in the latest article on the deal. All in all a dirty deal, but I don't see where Davis, even though he was the Governor, could have had any precognition of the stupidity going on in the lower halls of the government before the deal was completed.
Despite GOP willingness to paint with as broad a brush as possible in an election year, Davis appears not to have known much about the deal until it hit the news, about when /. first reported it. Since then, it's been his own office working with the Assembly that've sought to find out what happened.
Think about it. The Governor does not personally handle or approve all software purchases, nor should he. There appears to be quite a bit of crooked behavior on the part of Oracle and the leaders of the CA Dep't of IT, as well as a lack of proper review by those overseeing the department, and Davis is looking into it with the Assembly. If anyone finds evidence that Davis was a part of the deal then sure, nail his ass to the wall, but don't make insinuations there's no evidence for. That just cheapens the discussion, and ignores the fact that it is Davis who began the investigations, Davis who sent in the CA Highway Patrol to stop document shredding at the Dep't of IT, and Davis who's asked for and received the resignations of 3 top cabinet officials for failing to do a proper review of the deal. I don't mind disagreeing on political issues, but corruption in the governor's chair is a serious charge that requires more than non-evidence.
Oh, and his opponent, Bill Simon, saying that the oracle deal takes food out of the mouths of children is rich. This guy wants to gut children's services, make abortion illegal, and stop state tracking of all racial data regarding education, health care, etc. I guess if you don't want to solve a problem, you start by ignoring it.
The only tool you've got against psychosis is experience.
Damn you're lazy, at least check the second link down:
News Alert 2/1/99: A Complicated Web
but you're probably to lazy to even check the link so.......:
Company
Oracle Corp
Amount
$324,663
Dems
$231,413
Repubs
$93,250
Here is a link to the California Attorney General Campaign Finance info on Oracle. Isn't the internet great! If you really want to question reality, look here and wonder why a) the teacher's union is out-contributing Gov. Davis's own party and b) Why do they have an opinion on Indian Gaming?!