Feeds

Oregon hit with federal subpoena over failed healthcare website launch

Feds want to know where $250m budget went following botched Oracle project

Internet Security Threat Report 2014

The state of Oregon is facing a subpoena and grand jury probe from the US government over a failed IT project which cost taxpayers hundreds of millions of dollars.

A Federal Court has issued a subpoena asking the state's Cover Oregon agency to hand over documents, records and correspondence related to the agency's disastrous attempt to launch its own health care portal.

Intended to cover the state's requirements under the Affordable Healthcare Act, the Cover Oregon portal was slated to launch earlier this year, but encountered numerous delays and glitches. The state authorities eventually scrapped the portal in favor of the federal 'Obamacare' website, which made Oregon the butt of jokes nationwide.

Much of the blame, according to documents obtained by The Oregonian was leveled at Oracle, which had contracted to develop the portal and the massive database which accompanied it. Emails reprinted by the newspaper show that the agency repeatedly expressed frustration with the company as deadlines for launch and enrollment passed.

According to The Oregonian, Oracle was paid a total of $130m in contracts to build the project. When contacted by The Reg, Oracle declined to comment on the matter.

Overall, the project is reported to have cost a total of $248m in taxpayer money handed out to the state and subcontractors. Now, it appears as if Uncle Sam wants to know exactly where all that money went and why it wasn't enough to create a functional web portal.

According to the subpoena, investigators want to look at not only official documents including memos, presentations and statements, but also external communications and emails between the agency and its partners.

Additionally, the subpoena seeks email archives on ten members and directors of the Covered Oregon and Oregon Health Services campaigns.

Covered Oregon will have until June 10th to submit the requested information, after which the grand jury will decide whether to bring further charges in the case.

Choosing a cloud hosting partner with confidence

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Big Content outs piracy hotbeds: São Paulo, Beijing ... TORONTO?
MPAA calls Canadians a bunch of bootlegging movie thieves
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
Just don't blame Bono! Apple iTunes music sales PLUMMET
Cupertino revenue hit by cheapo downloads, says report
US court SHUTS DOWN 'scammers posing as Microsoft, Facebook support staff'
Netizens allegedly duped into paying for bogus tech advice
Feds seek potential 'second Snowden' gov doc leaker – report
Hang on, Ed wasn't here when we compiled THIS document
Verizon bankrolls tech news site, bans tech's biggest stories
No agenda here. Just don't ever mention Net neutrality or spying, ok?
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
Protecting against web application threats using SSL
SSL encryption can protect server‐to‐server communications, client devices, cloud resources, and other endpoints in order to help prevent the risk of data loss and losing customer trust.