Wednesday, September 22, 2010
Current Events New sleaze in the parking deal; Indy Star whines
Posted by Austin Considine on Wed, Sep 22, 2010 at 6:42 PM
- Image via Wikimedia Commons
Recent reporting by bloggers and the Indiana Business Journal has underscored another sleazy connection between ACS, the company chosen by the Ballard administration to take over city parking, and — well, the Ballard administration.
The connections between ACS, a Xerox-owned company based in Dallas, and Indiana politics is a subject we've explored here at length (for just one item from of our past coverage, read here). In brief, ACS was a key subcontractor that ran calling centers and other things when Mitch Daniels tried (and failed) to privatize state welfare — a $1 billion-plus deal with IBM that was, ultimately, a complete disaster.
Even after Daniels fired IBM, ACS was kept on as a subcontractor. Critics, including us, pointed to the fact that the head of Indiana's Family and Social Services Administration (FSSA) at the time, which handles state welfare services like food stamps, medicaid, etc., was none other than Mitch Roob — a former high-level executive from ACS. Roob, despite having helped engineer a deal that cost the state hundreds of millions of dollars, got promoted to head of the Indiana Economic Development Corporation.
Now the city of Indianapolis wants to hire ACS to take over its parking meters and some lots and garages for 50-years, in a no-default contract. It begged a lot of questions to say the least.
But more shady connections have emerged. Blogger Paul Ogden, an attorney and former deputy attorney general, explained:
Joe Loftus, a partner at Barnes & Thornburg, is on the City's payroll to render advice to the Mayor and lobby for the City. He also represents ACS the company that received the parking contract. (If you look up the city's lobbying registration's website, it's right there.) Loftus sits in on regular meetings with the Mayor.
Yet, The Indianapolis Star's Dennis Ryerson is calling the uproar a bunch of "noise." "There are no dishonorable entities here," he writes. "The administration of Mayor Greg Ballard is hardly a cesspool of political patronage."
Ogden goes on nicely to point out the fact that emperor Ryerson is wearing no clothes:
The sad truth the Star wants to selectively present the facts, apparently to support a particular political agenda. The Star's editors get nothing short of angry and frustrated when bloggers, the Indianapolis Business Jouranal and television reporters don't shy away from objectively reporting facts, a job that used to be a function served by the Star. [...]One would think the Ryerson's Star would be all over pointing out this conflict. Nope. Not a word from the Star. In fact, the Star has done no detailed reporting on the ACS parking contract. Rather it's been the Indianapolis Business Journal, television news reporters and, yes, blogs, which have exposed the details in the parking contract.
As has NUVO. Come on, Paul, where's the love? :-)
I'll add to Ogden's observations, though, to point out another, more recent example from the Star regarding ACS. New numbers have emerged with regard to the failed IBM deal, showing that the state spent $500 million on the failed deal, $442 million of which has gone directly to IBM as of the end of August.
Guess where another $59 million has gone? That's right. To ACS. But you'll find no mention of that in The Star. They punted on the issue instead. The Associated Press copy published in the Star buried the detail in the last paragraph, with no mention of ACS by name. Here's that last paragraph:
Nearly $59 million has gone to IBM subcontractors who now work directly for FSSA.
If the Star's editors had wanted to clarify, they could have. They didn't. Sorry, Mr. Ryerson, for creating more "noise."
Comments (5)
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Joe Loftus is the city's chief statehouse lobbyist and a counselor to Mayor Greg Ballard. The city's lobbyist registration shows Joe Loftus as registered to lobby for ACS, the company Ballard chose to award the potentially billion dollar parking meter privatization to.
Mitch Roob former vice president with ACS Inc. Roob was picked by Gov. Mitch Daniels to head Indiana's largest state agency, the Family and Social Services Administration where Roob was the former Secretary of FSSA - better known as the Welfare Slum.
State Rep. Eric Turner and his son Paul Ezekiel Turner's company, was in negotiations to buy the former Jones Middle School from Marion Community Schools. The school board voted to sell the building for $350,000 to Mainstreet Capital Partners LLC, a joint venture between "Zeke" Turner and his father. after receiving nearly $200,000 a year from ACS, the property has been assessed in excess of $7 million.
"Now the new numbers have emerged with regard to the failed IBM deal, showing that the state spent $500 million on the failed deal, $442 million of which has gone directly to IBM as of the end of August. Guess where another $59 million has gone? That's right. To ACS." (nuvo)
If you want interesting insight into how ACS and FSSA have failed, google Carl Moldtham a few of the articles written of how Roob and his InBed Buddies treated a man trying to do the right thing.
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I've read many articles regarding the downtown Indianapolis parking meter ordeal. I've read many articles concerning Affiliated Computer Services since the day they signed a contract with our FSSA welfare system in Indiana. I've worked for the State of IN for over 12 years. I've watched this ACS mentally torture their employee's, their managers use intimidation tactics, place and increase workloads on their employees that left it impossible to maintain. The stress factors that ACS has allowed their employees to endure is reprehensible. Plus a salary freeze for the lower end employee's.
Companies that are successful have a solid foundation of ethics that do not stray. They keep their employees involved in decisions and progress; A part of the solution. Solid developing companies also affirm the worth of their work force and create moral boosters. Employees also love it when top officials visit their location on a regular basis. It sends a powerful signal when the leader comes to your workplace. It demonstrates that what you do matters.
In the passed four years, I've not seen one top official visit. How pathetic is that?
Companies that we want in our city and state, are companies with high ethical standards. Companies that value their employee's and thrive from diversity. Companies that have proven track records that have proven success rates.
When good companies move into a city, they begin to set standards for other companies. Indianapolis should be looking at the cities of Seattle, Raleigh, Boston and mimicking their success. Which by the way does not include Affiliated Computer Services.
Don't allow this ACS company to create any more damage to our city and state and to the people of Indianapolis. This company, Mayor Ballard, Gov Daniels has failed to act, profits being the main placard, to include kickbacks and special interests, is a crime against humanity, a crime against nature and a crime against God.
ENFORCEMENT PROCEEDINGS - SEC Charges Affiliated Computer Services, Inc. With Stock Options Backdating and False Disclosures: "The SEC's complaint, filed in federal district court in Washington, D.C., alleges that from 1995 to 2006, ACS engaged in a fraudulent and deceptive scheme to provide executives and other employees with undisclosed compensation."
Above is a part of a recent investigation into ACS.
Seriously folks let's get real.
Public officials are supposed to be trustees of the commonweal, not political
buccaneers seeking their own private gain. But sometimes, in what economists call a
principal-agent problem, those trustees forsake that obligation and misuse the power
delegated to them in ways that advance their personal interests rather than those of the
public.
Corruption distorts the allocation of resources toward projects that
can generate illicit payoffs. Besides the undesirable efficiency consequences arising
from this distortion, the effect is likely to aggravate social inequalities, because the poor and powerless suffer, by definition, a comparative disadvantage in securing special favors.
If the $500,000 has to be paid if the City-County Council will not vote for the ACS deal. Pay ACS's political blackmail scheme and get them out of town. Like all the other commentaries together with articles I've been reading have showed, ACS is not the kind of corporation we want in our town. Political blackmail, special interests, conflict of interests, WHERES THE FBI? WHERES THE FEDS?
Has anyone ever read ACS Ethical Standards they try to impose on their employees at the welfare office. Their employees aren't allowed to accept even a Christmas card. Yet the CEO's and Directors of this company have done just that.
ACS is a shameful, unethical, disgraceful hypocrite, not to mention the so called "leaders" of Indianapolis for creating this mess.
What an embarrassment to our city.
Part of ACS's proposed deal for the parking meters are 200 jobs for seven years. What a serious joke. Like really?
Salaries of ACS falls below the average. They actually fall with in the poverty level. Their employee's are also on a salary freeze and have not received a raise in over three years. They have posted management positions for starting wage $9.50 hourly. Take a look at glassdoor.com and the comments from the employee's that work for ACS from all over the country. ACS has a 2.2 company rating. This is a strong indicator that ACS is not the kind of company our city and the people of our city need. Indianapolis needs good, strong, ethical companies like Google, SAS, Qualcomm, and Genentech. Each company has a program that enables employees to voice their ideas, enhances the innovative culture, and ultimately develops ideas that will benefit the business, community, and employee's. Each company supporting innovation. They offer stress free environments and offer their employee's livable wages with exceptional perks. AND their annual earnings and profits are less than ACS.
So, for ACS to "say" they are going to bring 200 jobs with this deal, is insulting.
Their current employee's throughout Indiana live off pennies, food stamps, and are regular patrons of local food pantries.
