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Restitution for Mexico City

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<i> Reuters</i>

The Mexican unit of IBM Corp. has agreed to pay $37.57 million to Mexico City prosecutors to compensate for a failed computer system that nearly landed three IBM executives in jail, officials said Wednesday.

The agreement came a month after the Mexico City attorney general’s office issued arrest warrants for the three Mexican IBM executives and 19 former city officials involved in the project.

The $25.95-million computer system was supposed to streamline criminal investigations, but officials said it never worked. They finally gave up and disconnected it in May.

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The contract for the system was never opened up for bids, which led to the criminal charges. The charges are pending.

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