State Senator Charles J. Fuschillo, Jr., chairman of the Consumer Protection Committee, recently held a public hearing regarding the impact that widespread corporate fraud has had on the state pension fund, local governments and property taxpayers.

Senator Fuschillo has introduced legislation to protect taxpayers by disqualifying companies that have engaged in unlawful practices from receiving contracts with state and local governments in New York. The act is officially known as the "New York State Contract Disqualification Act of 2003" and would be an added protection of New York State taxpayers. The hearing, which was held in Albany, featured testimony from various groups who would be impacted by any future legislation in this area.

New York State Comptroller Alan Hevesi testified at the hearing about the impact of these corporate scandals on the finances of New York State. Comptroller Hevesi's office released a report regarding the connection between corporate scandals and pension funds throughout the state in August.

"The fraudulent ways some of these companies have conducted their business has led to significant economic loss to New York State and that has resulted in many of the financial problems that face municipalities across this state," state Fuschillo. "The taxpayer should not have to pay the extra price while these corporations continue business as usual."

Additionally, the committee members received testimony from a representative of the Retired Public Officials Association, who spoke of the effect that the scandals have had on their members, and an official from the New York Association of Counties, who spoke of the effects they have had on the municipal governments of New York State. A representative of MCI also presented testimony at the hearing.

"New York State and its taxpayers have been significantly impacted by corporate scandal, with the estimated losses from the state pension fund at $9 billion and state revenues at $1 billion," said Fuschillo. "These companies have shown a brazen disregard for the law and we cannot continue to support them financially at the cost of New York's taxpayers. It is time that the cost of doing business with these companies is considered when the look to profit from the New York State taxpayers."

Fuschillo concluded by saying, "This hearing gave us the opportunity to ask the tough questions and get the truth about how much this corporate fraud has cost New Yorkers and how much damage was done. It also allows us to be more informed as we plan our next step to better protect the taxpayers of New York."