SPRINGFIELD, Ill. (AP) – A Chicago contractor accused of improper expense reimbursements wants $10.9 million from the state, saying Gov. Rod Blagojevich’s administration reneged on paying the fired company for work it already had performed.

Illinois Property Asset Management’s $30 million deal was canceled after an audit found that the state Department of Central Management Services had reimbursed IPAM for expenses such as liquor and parking at a Chicago Bulls game.

IPAM argues it wasn’t given a chance to remedy any mistakes and was fired only after public criticism of Blagojevich and his department.

IPAM filed a complaint Jan. 12, asking the Illinois Court of Claims for $9.3 million for work it completed in reorganizing the way CMS manages state property, plus $1.6 million in interest on the unpaid bill.

Court papers include a May 5, 2005 dismissal letter from CMS that promised IPAM payment for work it had done. The company says CMS ignored its final June 2005 invoice.

CMS spokeswoman Sue Hofer defended the company’s termination as “both appropriate and lawful.”

IPAM lawyer Michael Forde said the company would have fixed any problems if given the chance.

“From the minute this came to light, IPAM wanted to work with CMS to figure out what’s appropriate and what’s not,” Forde said.

The bulk of the questioned expenses were incurred during a period when CMS and IPAM had agreed to a monthly flat rate for expenses, Forde said, meaning the company did not need to submit invoices and could spend the money on anything.

Hired in 2004, IPAM had been paid $13.3 million on a $24.9 million deal that later was increased by $5.75 million.

CMS claimed IPAM saved the state at least $44 million by finding waste in property the state owns or leases. IPAM put the figure much higher, saying it found $123 million in savings in just two areas of its work.

An April 2005 report by Auditor General William Holland found mismanagement at CMS, including calling about $540,000 out of $708,000 in expense payments to several contractors questionable. The audit singled out IPAM and flagged $31,000 in expenses.

Blagojevich initially defended the company, then days later severed ties with it.

A Cook County Circuit judge dismissed an IPAM lawsuit last year, ruling it was a matter for the Court of Claims, which handles monetary demands against the state.