Friday, May 20, 2011

ANOTHER PRIVATIZATION FAIL

(h/t BuzzFlash)

Privatization didn't work with electricity rates and even with IBM in charge, didn't work for social services in Indiana.  The latter was the brain child of the newest GOP Great White Dope, Mitch "What Budget?" Daniels.
For Mitch Daniels, IBM Poses Bigger Problem Than Planned Parenthood
By Andrew Belonsky Saturday, April 30, 2011
Death + Taxes

The IBM drama began back in December of 2006, when Daniels signed a $1.37 billion contract between Indiana’s Family and Social Services Administration and the Armonk, NY-based IBM. Under the privatization deal, IBM’s staff and systems would administer and distribute welfare programs, as well as coordinating recipient calls, a departure from face-to-face meetings, and document imaging.

In addition to canceled or missed meetings with recipients, no provisions were made for disabled citizens who couldn’t communicate by telephone and hundreds of people, including a nun, were inexplicably booted from the system, resulting in the loss of essential benefits.

“The system wasn’t working,” Daniels said in October 2009, when he canceled the contract and blamed IBM for the woes. He then filed a lawsuit for payments to the computer giant. 

Though Indiana originally wanted more than the $1.37 billion it had promised IBM, it has since brought its request down to a mere $437 million, but still insists IBM shoulders the blame for the system’s collapse.

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