New York City's CityTime scandal (2001-2012)
New York City's payroll modernization project CityTime started at a projected cost of $63 million and ballooned past $700 million. Prosecutors later uncovered an $80 million fraud and kickback scheme among the contractors.
Federal prosecutors charged 11 people in the scheme, and the city tightened its rules on large procurements.
CityTime remains a textbook example of how a well-intentioned government tech project can become a corruption vehicle.
San Francisco's inspector general is opening the same kind of inquiry into OpenGov, examining whether the new permitting system can prevent improper activities—echoing the concerns that haunted CityTime.
