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CA gets a mention in complaint about deferred prosecutions

Edolphus Towns

Edolphus Towns Credit: Dennis Cook

A federal “deferred prosecution” agreement with CA Inc. (formerly Computer Associates) gets an unflattering reference in a Congressman’s recent letter to U.S. Department of Justice.

The May 18 letter from Rep. Edolphus Towns, Democrat of Brooklyn, is titled, “Chairman Towns Questions Effectiveness of DOJ's Contractor Settlements.”

Towns chairs the House Committee on Oversight and Government Reform.
In the letter to Attorney General Eric Holder, Towns focuses mostly on his concerns that the federal contractor Kellogg, Brown and Root (KBR) has continued to get huge U.S. military support contracts in Iraq in spite of having been responsible for shoddy electrical work that has electrocuted military personnel.

KBR in fact got Justice Department to provide it with a character reference as it sought new government contracts, Towns tells Holder.

Here’s where the CA Inc. reference comes in: CA Inc., too, continued to get government contracts in spite of its 2004 deferred prosecution agreement (due to the company’s illegal accounting methods).

“DOJ agreed to intervene on CA’s behalf to ensure that it would still be considered a responsible company for federal contracting purposes,” Towns’ letter says. “Indeed, the admitted wrongdoing by CA seemed to have no effect on its ability to do business with the government. In 2007, CA boasted that it had contracted with more than 95 percent of all federal agencies that year.”

CA did not return phone calls seeking comment.

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