NHDP - Walt Havenstein Blasts Economic Development

Argues Seven NH Businesses and the State Should Be Forced to Lose Funds Already Committed

 
Concord, NH-- Today, Walt Havenstein issued an incoherent statement criticizing Governor Maggie Hassan for promoting economic development and helping our state’s businesses attract new customers so they can continue to grow. Havenstein argues that seven New Hampshire companies, and our state, should be forced to lose thousands of dollars that have already been committed for a vital trade mission to Turkey later this month. The truth is, cancelling the trade mission would not only hurt our businesses but would also jeopardize future economic growth for our state.
 

“These latest comments from Walt Havenstein prove once again that his positions are wildly out-of-touch with our state’s businesses and would take our economy in the wrong direction,” said New Hampshire Democratic Party Communications Director Julie McClain. “Even worse, his disingenuous comments attempt to distract from his record of turning a blind eye to a $500 million fraud scandal under his watch as CEO of defense contractor SAIC.”
 
“Walt Havenstein embodies hypocrisy at its worst, attempting to provide advice on the fiscal stewardship of our state even though he couldn’t be trusted to protect taxpayer dollars while his company committed massive fraud and criminally overcharged the city of New York during his time as CEO,” added McClain.

 
As DRED commissioner Jeffrey Rose clearly laid out in an op-ed in today’s Union Leader, trade missions have historically proved hugely beneficial to our state’s businesses, helping secure new contracts and diversifying their customer base – which also helps our state weather challenging economic times.
 
 

ICYMI:

Another View -- Jeffrey Rose: Why the governor and I are going to Turkey to promote NH trade (Union Leader, June 3, 2014)

“I think most Republicans will agree Jeff Rose laid out the economic arguments pretty clearly on this one.” (Tweet from Tyler Deaton‏, @tylerdeaton, June 3, 2014)


BACKGROUND ON HAVENSTEIN'S RECORD AS CEO OF SAIC:
 
UNDER HAVENSTEIN, SAIC FACED MULTIMILLION DOLLAR FRAUD SCANDAL IN CITYTIME CONTRACT WITH NEW YORK
“The company also is grappling with its New York City contract to manage an employment timekeeping system called CityTime… the U.S. Attorney’s Office for the Southern District of New York has alleged that a massive and elaborate scheme to defraud the city’ corrupted the program.” (Washington Post, November 14, 2011)
 
“NEARLY ALL OF THE $600 MILLION THAT NEW YORK CITY HAS PAID TO THE MAIN CONTRACTOR FOR ITS TROUBLED AUTOMATED PAYROLL PROJECT HAS BEEN TAINTED BY FRAUD”
A New York Times article reporting on the CityTime scandal and charges filed by US Attorneys investigating the matter reported that “Nearly all of the $600 million that New York City has paid to the main contractor for its troubled automated payroll project has been tainted by fraud . . . ‘Today we allege what many have long feared: The CityTime project was corrupted to its core by one of the largest and most brazen frauds ever committed against the City of New York,’ Preet Bharara, the United States attorney for Manhattan, said.” (New York Times, June 20, 2011)
 
FOLLOWING TROUBLES FOR THE COMPANY, HAVENSTEIN SUDDENLY ANNOUNCES DEPARTURE FROM CEO POSITION AT SAIC, CITES “PERSONAL REASONS”
The Washington Post reported that “Walter P. Havenstein, chief executive at McLean-based contracting giant Science Applications International Corp., will retire next summer, the company announced . . . In the announcement, Havenstein, who has led SAIC for just over two years, said he was leaving for personal reasons. He will depart in June. In recent months, Havenstein has spoken candidly about the budget challenges facing government contractors. In its most recent earnings announcement, SAIC reported roughly 6 percent drops in revenue and profit.” (Washington Post, October 3, 2011)
 
HAVENSTEIN’S TENURE AS CEO LEAVES SAIC IN DIRE STRAITS
“More than four decades after its founding, the contractor, now public and based in McLean, is struggling, facing two contracting scandals, the departure of its chief executive and declining sales and profit. The company’s plight has led to some soul-searching about whether its problems are linked to a generally tougher budget environment or tied to a change in strategy. In recent years, the company’s units have shifted from pursuing contracts autonomously to teaming up in an effort to bring more capabilities to the table. ‘Where some people would say we may have let go of our small, entrepreneurial nature, I would say what we’ve really done is helped transform ourselves to be able to punch our weight in the marketplace,’ said chief executive Walter P. Havenstein, who plans to step down in June. ‘We’ve got to be able to think as a scaled company, not just in the individual pieces, and I think that’s at the heart of the cultural shift.’ Thus far, that strategy has not yielded the kind of results that SAIC has produced in the past, and analysts and industry observers say the company is at a critical juncture as it readies to select a new leader.” (Washington Post, November 14, 2011)