John Maley, one of the private attorneys representing Indiana in the case, called Friday’s ruling “a significant victory for Hoosier taxpayers.” He said the state’s attorneys believe Welch ruled correctly on the interest issue and that they will be conferring with state officials “regarding that narrow legal issue and possible further review.”
IBM spokesman Doug Shelton said the New York-based company is disappointed by the ruling and plans to appeal.
“IBM invested significant resources in its partnership with the state to help turn around a welfare system described at the time by Indiana’s governor as one of the worst in the nation,” he said in a statement.
Indiana and IBM sued each other in 2010 after then-Gov. Mitch Daniels, a Republican, cancelled the $1.3 billion contract that his administration reached with the company to privatize and automate the processing of Indiana’s welfare applications.
Under that deal, an IBM-led team of vendors worked to process applications for food stamps, Medicaid and other benefits. Residents could apply for the benefits through call centers, the internet and fax machines. But the contract was pulled in late 2009, less than three years into the 10-year deal, following complaints about long wait times, lost documents and improper rejections.
Not mentioned in the article is that former Assistant State House Assistant Leader Eric Turner had owned a building which was then leased by ACS to be used as a welfare call center. IR and the late great Gary Welsh have blogged about Turners legal and ethical issues.
It’s extremely frustrating to the IR crew and those of us on the front lines of fighting the most corrupt state government in the nation that this whole shit show over at FSSA is still going on. But as long as it is we and others like us will continue to report it. Don’t worry Gary. Your crusade will continue and intensify. Until our state is rebuilt. Good night and God Bless!
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