ICS Contract Signed Before Company Legally Registered

May 8, 2012

KSPN News disclosed today that the Commonwealth Healthcare Corporation’s CEO Juan Babauata signed an expensive and questionable 7-page contract with International Consulting Services, LLC even before the company was registered with the State of Idaho.

The contract between the CHC's CEO Juan Babauta and Bingham Memorial Hospital's CEO Louis Kraml and COO Dan Cochran was signed on January 30, 2012. The deal was made even before the company was certified with the State of Idaho. The company was registered on February 24, 2012, over a month after the contract was signed (See the registration form on the left.)

The January 30th contract called for each Idaho consultant to receive a daily consulting fee of $2,250 while at CHC, $1,000 per day for travel and any other out of pocket expenses. Yet, when interviewed by Idaho news media, Kraml reported that their relationship with CHC was "a humanitarian effort.” That is quite the sketchy and expensive humanitarian aide.

ICS received an $8,000 advance on January 30th for a February 11th to February 29th trip Cochran and Kraml made to the CNMI. Another invoice for $12,000 in consulting fees and over $7,600 in travel expenses was paid on February 25th. On February 25th Babauta also requested that a check be written for an additional $10,000 as a travel advance. That check covered the April to May 2012 trip that Cochran made to the CNMI with his his wife.

When questioned by KSPN as to the total of the start up costs, CEO Babauta claimed that ICS was paid about $10,000 for travel to bring people for coding. (What coding people? Kraml and Cochran are the coders or did other go to the CNMI?) Babauta stated that he was not aware of the $19,645, even though he signed the request for the release of all of the checks that were issued to ICS.

The CNMI Attorney General is investigating this contract, The State of Idaho should look into this deal also.


Anonymous said...

These guys are slick and scary at the same time. CHC should run from them but why are the docs and Babauta behind them? Aren't the CHC docs who support them the ones Babauta took to California?

Anonymous said...

These are crazy,crazy times. Lots of scam artists out to make big cash on the desperate.