A culture of corruption pervaded the security software company and government contractor CA Inc. almost from its inception, according to a report issued by the company's corporate board Thursday.
According to the report, founder and former CEO Charles Wang oversaw â€œaccounting fraud lasting more than a decade at the software company,â€ once known as Computer Associates, reports The New York Times.
CA, which makes network management software, was 46th on Government Executiveâ€™s list of top 2005 federal technology contractors. It captured $117,763,017 worth of federal contracts in fiscal 2004, or 0.25 percent of the federal technology market. CA did not rank in the top 50 during fiscal 2005.
Wangâ€™s successor, Sanjay Kumar was sentenced to12 years in a federal prison and agreed last week to pay $800 million in restitution to stockholders who lost money when it was revealed the company overstated earnings.
Wang has not been indicted, but the CA board charges he â€œmasterminded accounting gimmicks that led his company to report inflated sales and profits,â€ the Times reports. CA â€œis still struggling to rebuild the trust of employees and shareholders, the report says. ...'Fraud pervaded the entire CA organization at every level, and was embedded in CAâ€™s culture, as instilled by Mr. Wang, almost from the companyâ€™s inception,' according to the CA board."
In a statement, Wang called the report "fallacious" and blamed Kumar for the company's woes.
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