![]() Other issues predate the Obamacare debacle. Yerashotis, a chartered financial analyst, cites a "red flag" around complex accounting issues, including deferred revenues, contract losses and work in progress. Mike Yerashotis, an analyst at Veritas Investment Research, an independent equity research firm in Toronto, writes in recent research notes that investors should have a "healthy degree of scepticism" about CGI's earnings. In recent months, Deutsche Bank and at least one hedge fund, 683 Capital Management in New York, have been asking if the company is double-counting revenues. Some investors and analysts are expressing concerns about potentially aggressive bookkeeping, weak disclosure practices and corporate governance issues. ![]() But the questions swirling around the company go beyond how it mangled the showpiece reform of Obama's presidency. Nuclear Regulatory Commission and State Department to the Kyrgyzstan Border Service and World Anti-Doping Agency. That put its total revenue for its fiscal 2013, which ended in September, at more than $9.8 billion, with nearly $442 million in profits.ĬGI Federal and its parent company, CGI, do behind-the-scenes work, often with "Top Secret" clearance, for hundreds of American and foreign government agencies - from the U.S. For its recently-ended fourth quarter, the company's revenue grew nearly 53 percent, to $2.38 billion. Through a lucrative government contract, CGI Federal is the principal contractor assigned the daunting job of building the federal online insurance marketplace - a large, complex website intended to help millions of ordinary Americans obtain health insurance that instead has become a byword for technological failure.Īmerican taxpayers are among the main drivers of earnings at CGI, whose stock market value is $11.6 billion. He was wrong about one thing: taxpayers didn't pay directly for the event for CGI Federal, the American arm of Montreal-based CGI Group that is known these days as the main company behind the glitch-plagued website, the engine of President Barack Obama's health care law. It was greed and opulence, and it was on the taxpayers' dime." "Some people were bombed out of their minds until 2 a.m. ![]() Amid "a lot of hooting and hollering," the manager recalls, the hotel staff was laughing. "People were riding these bikes drunk through the hallways of the resort," recalls one former manager who attended the event, while others were "duck-walking" the children's bikes, which were too small for most adults to sit on. The goal was for the teams, around 20 or so, to assemble children's pink and blue bicycles, then race their tasseled bikes up and down the carpeted corridors of the hotel. For each correct answer, they received a bicycle part. Managers were split off into small groups and asked to solve math-laden riddles. The fun came during a team-building exercise following a boozy lunch in conference rooms not far from the hotel's Lady Luck casino. Schindler, the president of CGI Federal, spoke of the company's big profits that year and its bright future. Most attendees stayed in the resort's Chateau Lafayette hotel, a replica of the Ritz-Carlton in Paris, and at a formal dinner under the elaborate chandelier in the ballroom, George D. When 200 of CGI Federal's top managers gathered at the luxurious Nemacolin Woodlands Resort in southwestern Pennsylvania on a brisk day in early November 2009, they found time for business - and high jinks.ĭuring the two-day event, managers presented PowerPoint slides celebrating the phenomenal success of CGI Federal, a major technology contractor, in winning lucrative government contracts.
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