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Ohio’s overhaul of aging unemployment benefits computer system on hold after company officials indicted

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A long-anticipated overhaul of the nearly two-decade-old computer system used by Ohio’s unemployment benefits office is on hold after federal officials indicted top officials with the company hired to replace it.

In 2018, the Ohio Department of Job and Family Services awarded Minnesota-based Sagitec an $86 million contract to replace the computer system, which dates back to around 2004 and was unable to handleThe work was scheduled to be completed in fall of 2023, but about three weeks ago ODJFS put the contract on hold after news that Sagitec partners David Gerald Minkkinen and Sivaraman Sambasivam were indicted Aug. 23 in U.S.

Sagitec, in a statement, noted that the company itself was not indicted along with Minkkinen and Sambasivam and has shared with the government the results of an internal investigation led by outside expects.

 

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