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California County Sues Deloitte For Fraud In SAP ERP Project

By Joseph F. Kovar
May 28, 2010    5:22 PM ET

Page 2 of 2

Deloitte, in a statement, said it is unfortunate that the county has decided to file the lawsuit.

“As stated previously, we fulfilled each and every one of our obligations under the contract, as evidenced three years ago when all of our work was approved by the County officials responsible for the project. To be clear, the SAP software was working properly when we completed our work in November 2007. Not only is the complaint without merit, but we are filing our own claim against the County for breach of agreement and unpaid invoices. Although we are confident that we will prevail in court, it remains our belief that this dispute can and should be resolved in a more logical fashion that benefits the County and its taxpayers,” the company said in the statement.

In Deloitte’s claim, filed with the Marin County Board of Supervisors, the company said 13 consultants working with SAP, Oracle, PeopleSoft, and other software vendors submitted bids for the County’s ERP implementation, and that Deloitte’s bid was one of four which were based on SAP.

In December 2004, a committee consisting of County personnel received demonstrations of the skills and services of each consultant interested in the project.

“Based on its independent analysis, the County committee, over dissent from Committee members who preferred a different software provider, chose SAP to provide the ERP software for the system upgrade. The County subsequently selected Deloitte Consulting from the four SAP-teamed consultants,” the company wrote in its claim.



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