Hewlett-Packard Company (NYSE:HPQ) Stock Decline

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Dallas, Texas 03/28/2014 (FINANCIALSTRENDS) – Controller Scott Stringer has now rejected the proposed settlement that the Bloomberg administration had reached in the final days for Hewlett-Packard Company (NYSE:HPQ) to repay the tiny fraction of what it had overcharged the city for modernization of its 911 system. In a statement, Stringer said to the Daily News that he believes that there should be a full-review of issues around Hewlett-Packard Company (NYSE:HPQ)’s 911 contract. He said that they have to know all the facts before they resolve a dispute that is of this magnitude with the vendor that has cost their city literally millions of dollars.

This settlement, totaling only $6 million, had been submitted to Stringer towards the end of January by the Mayor de Blasio’s Law Department. This was almost around the time that Zachary Carter, the new corporation-counsel was taking office. However, all the details had been negotiated by the Bloomberg administration in Dec, say the city officials. The $6M figure is much lower than what 2 previous city-audits found that Hewlett-Packard Company (NYSE:HPQ) had actually over-billed for its work as the lead contractor on its 911 upgrade. Hewlett-Packard Company (NYSE:HPQ) received almost $350M for its work on this project that has been plagued with various problems.

One audit by the former Controller John Liu, that was released in 2012 May, found that Hewlett-Packard Company (NYSE:HPQ) had fleeced the taxpayers for over $160 million in the possibly fraudulent overcharges. Liu had revealed that Hewlett-Packard Company (NYSE:HPQ) had charged over 50% of markups to the city for the hundreds of subcontractors that it had  used, & that the it had  even billed the city for the  software engineer salaries for the employees who were doing other ordinary office work. Then-Mayor Michael Bloomberg had initially dismissed the conclusions put forth by Liu, as overblown, but later, his aides hired KPMG, the accounting firm to conduct a 2nd review for City Hall.

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