NEW YORK (CBSNewYork/AP) — The project manager who developed the long-delayed and costly CityTime payroll system has been fired for ripping off the city by paying himself for hours that he did not work.

Comptroller John Liu says 49-year-old Gerard Denault, who worked for Science Applications International Corporation, was booted from the private company that created the system.

“By their own admission, this latest development now implicates, for the first time in this scandal, SAIC,” Liu said. “The very company entrusted by our City to build a timekeeping system for NYC employees has grossly mismanaged their own time keeping.”

In a letter to the executive director of the Financial Information Services Agency, SAIC said it has yet to determine how many hours Denault should have been paid for.

Company spokeswoman Laura Luke confirmed Denault was terminated. The company says it’ll reimburse the city $2.4 million for all his time billed for the project.

Denault referred questions to his lawyer, who did not immediately return calls for comment.

SAIC was the target of a fraud probe last year that led to criminal charges against four consultants and the resignation of the city’s payroll director. Prosecutors said the consultants bilked the city out of $80 million.

The city has said it will not renew the company’s contract when it expires June 30.

The cost of CityTime, which was launched during former Mayor Rudy Giuliani’s administration, has ballooned from an estimated $68 million to over $700 million. 

Liu has called for a comprehensive investigation of other possible violations by SAIC. He is also urging the city to withhold future payments to SAIC pending the outcome of the investigation.

(TM and Copyright 2011 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2011 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)

Comments (9)
  1. rocky says:

    How much of a cut did our great Mayor get

  2. Dale Auburn says:

    A consultant is somebody whom you hire to tell you the time.

    – A good consultant will look at YOUR watch and tell you what it says.

    – A very good consultant will get YOU to look at your watch and tell him the time, then he’ll repeat what you said and bill you twice.

  3. Tony says:

    From 68 Million to 700 Million and there were no red flags? What a corrupt Bloomberg administration… It’s so easy for him to milk money out of New York city residents. Look at the costs of everything in NYC… No wonder the population has gone down, and now NY has only 29 reps in Congress…

  4. Michael says:

    the culture of consulting firms should be partly blamed for this however. no one dev/tech can be billable 100% of the time. Guess what happens when you get to a pressured situation to be billable or else.. (even if you found a solution years ago). What has the last comptroller been doing all these time? $80m and still ballooning. I doubt JPM/GS spent that much buying proprietary trading programs annually.

    Kudos to John Liu. Too much bleeding within the city’s finance.

  5. Anonymous says:

    CONSULTING. If You’re Not A Part Of The Solution, There’s Good Money To Be Made In Prolonging The Problem

    – Anonymous

  6. Donald Hsu says:

    Yes, Comptroller John Liu did a good job. I am not surprised. People take advantage of the system and 49-year-old Gerard Denault is no different.

    The question is, why did it take so long to find out?

  7. Dr. John says:

    The mayor is leaving quite a legacy in his last term. Mismanagement of city functions abounds in the headljnes repeatedly.

    1. midi-man says:

      Yes he is. Thank god for us he is a finical wizard that cannot do basic math.
      He must have paid his way through school like he did with his election.

      Keep up the great job Bloomberg, you are a dup of your friend Koch and his poor city management.

  8. Barry Levine says:

    I would like to get a job with the City of New York as a consultant. You ask, a consultant of what, and my answer is, who cares what the title is, just give me one of those jobs. Ask any question and I will have an answer for it, the answer will not make sense but it will be an answer because I will be the paid consultant and as long as I am being paid to be a “consultant” my answer will suffice and stand.
    If you need my E-mail to notify me that I am hired the address is;

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