ALBANY — A $300 million “screwup” by the city has caught the attention of dumbfounded state senators who want to know how it happened.
The bipartisan coalition that runs the state Senate is planning a hearing into how the city last week mistakenly transferred nearly $300 million into the bank accounts of 31,000 retired cops and firefighters.
The city Financial Information Services Agency, which is jointly overseen by the offices of the city controller and the mayor, electronically transferred a $12,000-per-person supplement normally distributed in December. The city on Friday began getting the money back.
“This is a major screwup,” said Sen. Diane Savino, the Staten Island Democrat who chairs the Senate Labor Committee that will hold the hearing jointly with the chamber’s Civil Service and Pensions Committee. “How do you just release $300 million? How does that happen?
City officials blamed a coding error as the city was testing out a new direct-deposit program.
Savino said they will seek to find out if there were oversight problems, software glitches or other errors that led to the problem, and whether similar incidents have occurred before.
They also want to see what happens if people spent the money.
“There is a whole host of things you need to look at to make sure this doesn’t happen again,” Savino said.
Asked why the state is getting involved in the city matter, she said: “The city is a creature of the state.”
In a joint statement, the controller and mayor’s offices said JPMorgan Chase, the city’s custodian bank, restored all funds to the pension system as it works to recover the payouts from the retirees.
“The mayor’s and controller’s office have initiated an investigation of FISA’s internal control environment and are in the process of engaging an independent audit firm to assist in that purpose,” the statement said.
——————–
John Cahill, a former top aide to former Gov. George Pataki, has decided to run against Democrat incumbent Eric Schneiderman for state attorney general this year, those close to the Republican say.
Cahill is set to make his formal announcement this weekend, days ahead of the state Republican nominating convention.
“He’s been encouraged by the support that he’s received from people around the state,” one source said. “He believes it’s a winnable race.”
Desperate leaders from the state GOP and Conservative parties also hope to hear this week whether Onondaga County Controller Robert Antonacci will run against the Democratic incumbent state controller, Thomas DiNapoli. State GOP Chairman Ed Cox and Conservative Party Leader Michael Long called Antonacci last week asking him to run.
