State Central Management Services to terminate management contract for improper billing           

[MAY 6, 2005]  SPRINGFIELD -- On Thursday Gov. Rod Blagojevich directed Central Management Services to terminate the state's contract with Illinois Property Asset Management for billing the state for improper expenses like cell phone charges, ice tongs, candy and alcohol. Illinois Property Asset Management was hired in 2004 to help Central Management Services reduce the cost of managing, renting and leasing property and office space. After the completion of a review by the governor's office of the company's billings and work, the governor decided Thursday to have the contract terminated.

"We've reviewed IPAM's expense reports thoroughly, looked at the body of their work, and no matter how much money they're helping us save elsewhere, in my mind, billing the taxpayers for things like car rentals and meals is inexcusable and won't be tolerated," Gov. Blagojevich said. "You cannot bill the taxpayers for completely inappropriate expenses like parking fees and alcohol and expect to get away with it. Let this serve as notice to every company that does business with the state of Illinois: If you try to stick the taxpayers with these kinds of expenses, your contract will be terminated."

Over the course of the contract, Illinois Property Asset Management submitted bills for reimbursement for items ranging from a celebration dinner to parking fees, airfare and car rentals. Central Management Services has held $35,000 in payments in escrow during the review of the billings. The state employee responsible for overseeing the contract was also suspended for reimbursing Illinois Property Asset Management for the questionable expenses.

The governor thanked Auditor General Bill Holland for uncovering the improper expenses in his recent audit of Central Management Services.

[News release from the governor's office]