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Resource ID: #26083
Subject: Computers
Source: KCRA-TV (Sacramento, Calif.)
Date: 2013-12-31



When payments for California's unemployed were delayed after a computer upgrade, KCRA began digging into the cause of the delay. What reporter Sharokina Shams and producer Dave Manoucheri found was a state agency that was downplaying the problems with their new computer system and grossly under-reporting the number of people affected. Utilizing California Public Records Act requests (similar to FOIA) and whistleblowers inside the department, KCRA exposed the fact that California had purchased a computer system plagued with problems. Within a week they had determined that multiple states had hired the same company, Deloitte, LLC, and those states were experiencing similar problems. With more digging Shams and Manoucheri found that Deloitte had also donated hundreds of thousands to political campaigns and lobbied heavily with the state. KCRA found hundreds of millions paid to the company for IT contracts, failed previous projects and a new contract due to be awarded that would costs half a billion dollars. Ultimately, KCRA's investigation led to legislative hearings, the creation of legislation to change how the state writes IT contracts, and revealed that more than 40 states are waiting in the wings to upgrade their computer systems and the federal Department of Labor anticipates similar problems in all those states.

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