"Attorney General begins grand jury probe of Oracle deal"

Details here:

A grand jury will begin taking testimony Tuesday about the state's now-rescinded computer software contract with the Oracle Corp., and a key lawmaker is predicting the probe will result in criminal charges....

The contract, a six-year, $95 million deal with an option for a four-year extension, was supposed to save the state more than $100 million through volume purchases and maintenance of database software.

But the state auditor said the contract, put together in about three weeks, could cost the state as little as $6 million or as much as $41 million more than if it had stuck to its previous software supply arrangements.

Oracle made a $25,000 campaign contribution to Gov. Gray Davis five days after the contract was signed in 2001. Both the governor and the company said there was no link between the donation and the contract, but Davis decided to return the money....

Committee members said at the very least the state's evaluation of the contract was flawed. Some members had harsher conclusions, suggesting the contract was the result of political influences or even a ``culture of corruption.''