The mayor got a surprise last Sunday when widespread spending misdeeds within his administration appeared on The Washington Post’s front page. While the Post did not go so far as to call it corruption, the magnitude of the allegations is sure to stir things up and may well be the makings for a large scandal.
The allegations are based on an analysis of five years worth of government records. The Post claims that the District of Columbia government routinely ignored rules and regulations regarding the awarding of contracts.
In all, the article detailed over $425 million in no-bid contracts or other unauthorized payments to contractors. Significantly, the District overpaid by at least $50 million on the contracts that were not open to bids. Not pocket-change, that much is clear. At this point, it looks like a case of political cronyism bypassing the bidding process.
Financial corruption within the District government is not new. Over the years, through wrongdoing or sheer mismanagement, the District’s books have been less than perfect. But this is the first time the current administration has had to face financial scandal. Mayor Anthony Williams has plenty of experience with the city’s finances, having served as the District’s chief financial officer under Mayor Marion Barry, meaning he will have a hard time claiming ignorance.
As with any potential scandal, the reaction is more important than the deed. Maryann Young, spokesperson for Chief Financial Officer Natwar Ghandi, believes the Post’s article was a “very gross misrepresentation” of the District’s financial oversight process. Young also said the report amounted to “sensational headlines” and stressed that there is a “tremendous amount of oversight” in the contracting process. Young added that following the Post’s inquiries, new layers of oversight had been added beginning with fiscal year 2006. The CFO’s office also admitted that the contracting process is a less than exact science but said in no cases were fraud or any other criminal activity involved.
Councilmember Adrian Fenty (D-Ward 4) called for accountability, saying “the people involved need to be fired.” Fenty called any regulatory violations “completely intolerable,” especially considering the Mayor’s previous experience with the District’s finances.
Surely investigations will follow. D.C. Council Chair and mayoral candidate Linda Cropp (D) has requested an investigation by the city auditor. Vincent Orange (D-Ward 5), another council member and also candidate for mayor, has promised hearings before the D.C. Government Operations committee. On the federal level, Rep. Tom Davis (R-Va.) is asking the U.S. Government Accountability Office to investigate. The CFO’s office as well as the mayor, in a news conference Tuesday, welcomed any and all investigations, including by the GAO.
Mayor Williams, after deciding not to seek a third term, has been reiterating his desire to get things done during his last year in office. It is important to note that the Post did not allege any criminal actions, but if allegations of regulatory violations are true, and if Williams was involved, his legacy would certainly be called into question.
