The US state of California and Oracle have officially agreed to
cancel a very public, politically embarrassing and acrimonious
database contract.
The $100m (£63m)-plus deal, signed in May 2001, was lambasted by
critics after it emerged that the contract had not been properly
put out to tender.
The furore surrounding the deal has caused the closure of
California's Department of Information Technology and the firing or
resignation of several state officials.
The trouble began in April when the state auditor published a
damning report on the contract with Oracle and systems integrator
Northrop Grumman.
Announcing the agreement, state Attorney General Bill Lockyer said,
"The state is relieved of any further financial obligations
including all associated interest and fees.
"Oracle and Northrop Grumman were under no obligation to help
California by rescinding this contract, and we appreciate their
co-operation."
For its part, Oracle said it was, "pleased to have resolved this
matter to the satisfaction of the State of California. We look
forward to working with the state in the future."