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Pressure Is On IBM To Forgive Millions In IT Debt
coondoggie writes to tell us that several California state legislators are pressuring IBM to release the Costa school district from some $5 million of long-standing debt as a charitable donation. "The back story on this tale is that the school district owes IBM for computers ordered in the late 1980s and early 1990s. For one reason or another the computers were never used and no one now seems to be able to locate either the paperwork or the hardware. The school district experienced hard financial times and ultimately never paid Big Blue for the computers. In 1993 the district and IBM negotiated a long-term settlement that said the school district would pay the first of four $1.25 million installments beginning in 2008. Payments were deferred until then because 2008 was the year the district was scheduled to finish making state loan repayments under its previous loan plan, according to the Contra Costa story."
Oh, so that makes it OK to rip IBM off.
Well, "honorable" lawmakers, how many of your teacher's pensions are in IBM stock?
Or what about your investments?
Or some of your other constituents - many who are retired and are relying on IBM making an actual profit in order to make money on their retirement investments.
Not all stock investors are rich, fat, white, dudes who nobody has pity for.
Mental note: Do not give credit to the CA schools - cash only.
I prefer Flambe as apposed flamebait.
to a collection agency. Let the agency buy the loan at a discount and then harrangue state officials until they ante up. It would be good for the officials to experience the same kind of pressure and hectoring that they allow consumers to endure...
The contest for ages has been to rescue liberty from the grasp of executive power. -- Daniel Webster
To me this seems like gross mismanagement of funds on the part of the school board. And, frankly, forgiving their debt will not compel them to manage their funds any better in the future.
Which school board? The one 15 years ago that approved the equipment and then let it get stolen, or the one now that's stuck with the bill?
Except the school board isn't stuck with the bill. At least in that the individuals on the board don't have to pay it. It isn't going to affect their salary or anything in any way. The money will have to come from them cutting back on other educational expenses. So the people who are going to suffer are the kids who weren't even born when the deal was made.
Right. That's the problem. Now people who elect these school boards need to make informed decisions and not allow people of questionable character in public office. But the people who lose have little to do with anyone who made any of the decisions. Since it sounds like the computers walked off, the real answer might be to get the police dept on the case to see if there's any way they can figure out who took them. The statute of limitations might have expired by now, but a few criminal charges wouldn't hurt if they do find the responsible party. This kind of shit happens all the time in school and public utility boards with poor accountability. IBM might even have a share of the blame if they sold excess equipment on a public procurement contract with no sense that it was going to be useful to the district. Based upon that there's an argument for getting IBM involved in the solution to this other than just paying them back.
Lessee, the school district has such lousy financial controls that they can't account for the systems, and they can't pay for them. Typically, the socialist argument is to not hold them accountable. I say bankrupt the district and put some people in who won't let $5M get STOLEN.
It is the taxpayers fault, and they DESERVE to pay for it. Either by higher taxes or crummier education for their kids.
They had a inept, corrupt school system. 5 Million in computers go poof! Is their outrage? Who's head ended up on the block? Who had to pay for this? So far no one. IBM has been nice, and has made a 15 year 5 million dollar interest free loan.
People 15 and 20 years ago were responsible for this. The city, the school board, the voters and tax payers. They did not pay the piper....It has been put off till now. It is time to pay.
If the city had taken out loans, were improving the school district, etc. Then there was some big natural disaster, something beyond their control. I could see IBM feeling generous and forgiving the debt. But this is due to the school districts own stupidity.
If a car lot (yes another car analogy), sold you a car for $30,000.00, you have a million dollar home for collateral. Your worthless brother in law runs off with the car. You are having cash flow issues, and can't really afford to make the payments. Why should the car lot forgive you this loan?
They entered into a business deal with a party who had the ability to pay. Just the party mismanaged things and has the sob story, why should IBM have to eat it? Because "they can afford it" just does not cut it. IBM could also afford to cash out, take the money and run. To not sell hardware to anybody any more. But no, they are staying in business to do business. They are not extorting their customers. They should not have to eat it. Let the tax payers who allow such government pay for it.
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