CA governor and Oracle under fire for $25k donation

SACRAMENTO, CA: California Governor Gray Davis and Oracle are on the defensive as controversy continues to swirl around the state's software contract.

SACRAMENTO, CA: California Governor Gray Davis and Oracle are on the defensive as controversy continues to swirl around the state's software contract.

Davis' chief technology advisor resigned this month after it was revealed that he had accepted a $25,000 check for the governor's reelection campaign from an Oracle lobbyist during software contract negotiations.

The incident amplified a problem that had been growing since a state audit criticized the wisdom of California's software deal, worth between $95 million and $120 million to Oracle.

Davis has been asked to supply all communications related to the deal to the Joint Legislative Audit Committee that is investigating the issue.

According to the San Jose Mercury News, his office is still considering the request.

Oracle has offered to rescind the deal, but maintains that it will save taxpayers money. The company said that the $25,000 was pledged at an earlier fundraising event, but did admit that it was handed over improperly.

Oracle has a page on its website dedicated to the issue, at www.oracle.com/california.

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