Calif. scraps agency at heart of Oracle flap

In the wake of a bungled state contract with Oracle, California officials on Wednesday effectively shut down the agency that negotiated the controversial software deal and ran an expensive state Web site.

An executive order issued by Gov. Gray Davis farmed out work to other state agencies from the Department of Information Technology--effectively closing the book on the agency at the center of the Oracle scandal.

The overhaul came amid political controversy over a state deal with Oracle. An independent audit concluded the deal was hustled through with little oversight, no competitive bidding and could end up costing taxpayers $41 million.

A $25,000 donation from Oracle to Davis also sparked criticism when it was discovered a lobbyist for the No. 2 software company gave campaign funds to a Davis official after the contract was awarded.

Last week, officials said the state of California would officially cancel the Oracle contract valued at roughly $95 million.

News source: Cnet

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