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Audit Finds SF Homeless Housing Provider Misspent Taxpayer Money
'Bad Policies and Practices': Report Highlights Weak SF Laws That Enable Public Corruption
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"content": "\u003cp>A leading developer of housing for people exiting homelessness in San Francisco has been “careless and irresponsible” with taxpayer money, according to a report released Tuesday by the city controller.\u003c/p>\n\u003cp>The report details mismanagement and wasteful spending by the nonprofit, HomeRise, including $12,500 spent on a social event and $200,000 in bonuses, and comes amid rising scrutiny of the city’s nonprofits in recent years.[pullquote size=\"medium\" align=\"right\" citation=\"Greg Wagner, city controller, San Francisco\"]‘No matter the extenuating circumstances, HomeRise had an obligation to ensure public funds were managed appropriately.’[/pullquote]HomeRise operates almost a third of city-funded units that serve formerly unhoused people — some 1,500 units across 19 properties, financed by $200 million in public grants and loans.\u003c/p>\n\u003cp>The organization brought in new senior leadership last year and has begun addressing the issues, according to city officials and HomeRise leaders.\u003c/p>\n\u003cp>The nonprofit called many of the audit’s findings factually incorrect or misleading. It “presents a false picture,” they said in a formal response to the audit. “We fear that it threatens to inflict great harm on the organization.”\u003c/p>\n\u003cp>But rather than cut the organization off from future city funding, the controller urged city agencies to strengthen oversight of their contracts with HomeRise and directed HomeRise to improve how it manages city funds. The city has a “vested interest” in ensuring HomeRise remains viable, the controller wrote in his report.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>“If the city chooses to reduce or rescind HomeRise’s city grants and agreements, there is much at stake,” the controller’s report reads. “HomeRise has a critical role as part of San Francisco’s safety net for formerly homeless residents as well as providing affordable and supportive housing units.”\u003c/p>\n\u003cp>The Department of Homelessness and Supportive Housing and the Mayor’s Office on Housing and Community Development requested the audit in 2022 after flagging issues with the nonprofit’s finances that had been going on for several years. The Controller’s Office hired Sjoberg Evashenk Consulting Inc. to undertake the audit.\u003c/p>\n\u003cp>“We are working to provide transparency and oversight with our contracting partners to better deliver services for our residents and city,” Mayor London Breed said in a statement. “This is how we work to improve how we provide services and support and to improve how our city functions.”\u003c/p>\n\u003cp>[aside label='More Housing Coverage' tag='housing']In addition to the staff bonuses and an expensive social event, the audit found widespread financial mismanagement, fueled in part by high turnover among its senior staff and high vacancy rates at its properties.\u003c/p>\n\u003cp>“This organization seems to have all the issues that other providers are having, but on steroids,” said Christin Evans, who serves on the Homeless Oversight Commission that oversees the Department of Homelessness and Supportive Housing.\u003c/p>\n\u003cp>Among its key findings, the audit determined:\u003c/p>\n\u003cul>\n\u003cli style=\"font-weight: 400\">In 2022, revenue plunged at 10 of 16 HomeRise properties reviewed by between $13,000 and $917,000, while expenses spiked, rising between 16% to more than 50% over the four-year audit period.\u003c/li>\n\u003c/ul>\n\u003cul>\n\u003cli style=\"font-weight: 400\">HomeRise lost about $6.3 million because of vacancies during the four-year audit period. Most properties had vacancies, for a vacancy rate of 14.6 percent. More than $1.7 million in rent was more than 90 days late and remained unpaid.\u003c/li>\n\u003cli style=\"font-weight: 400\">The nonprofit spent money on fundraising, staff bonuses, lunches and gifts for staff. The expenses reviewed showed “unallowable, imprudent, or questionable spending that did not meet the intent of the City’s grant agreement.”\u003c/li>\n\u003cli style=\"font-weight: 400\">As of January 2023, HomeRise had 118 credit cards in use. Over a third had credit limits of $10,000 or higher, while 21 cards had limits between $15,000 and $70,000. Many of the credit cards didn’t require approval of purchases and the nonprofit didn’t have protocols governing their use.\u003c/li>\n\u003cli style=\"font-weight: 400\">HomeRise’s Finance Department had extremely high turnover; only 5 positions out of 14 were filled by February 2023.\u003c/li>\n\u003cli style=\"font-weight: 400\">The nonprofit promoted employees to high-level positions with salary bumps ranging from $22,000 to $72,000. One salary increased by more than $87,000 (74%) in nine months.\u003c/li>\n\u003cli style=\"font-weight: 400\">HomeRise handed out bonuses of $1,000 to $10,000 per employee. HomeRise gave staff “signing” bonuses even though they’d been working there for years.\u003c/li>\n\u003cli style=\"font-weight: 400\">HomeRise held meetings focused on finding corporate expenses that could be paid for with any city grant funds that remained at the end of the year.\u003c/li>\n\u003cli style=\"font-weight: 400\">To cover payroll, the nonprofit borrowed $2.5 million from a property’s operating account to. HomeRise’s leaders said this was repaid as of October 2023.\u003c/li>\n\u003c/ul>\n\u003cp>Employee turnover and trouble filling housing vacancies are the chief problems dogging all the city’s homeless housing providers, Evans said. She pointed out that the HomeRise building with the highest level of vacancies is an SRO that doesn’t have kitchens or private bathrooms, making those units less attractive.\u003c/p>\n\u003cp>“As the Homeless Oversight Commission looks to identify ways to ensure that we’re spending our money and resources appropriately, we really need to look at repurposing the buildings that have high vacancy rates because they really don’t meet people’s long-term needs,” she said.\u003c/p>\n\u003cp>Jennifer Friedenbach, executive director of the Coalition on Homelessness, which helped found the nonprofit and still appoints members to its board, cited senior staff turnover as a major contributor to HomeRise’s troubles.\u003c/p>\n\u003cp>“When you have folks who are doing really advanced jobs and then their salaries aren’t competitive, there’s a lot of turnover,” she said. “This combination of underfunding of wages that lead to turnover and the empty units, all of this kind of spells disaster. It’s a very difficult situation.”\u003c/p>\n\u003cp>In a March 15 response to the controller’s findings, HomeRise CEO Janéa Jackson, who took over in mid-2023, and board president Gregg Miller assured the city that the organization is on its way to remedying the issues identified by the audit.\u003c/p>\n\u003cp>Under new leadership, they said HomeRise has, among other things, overhauled its budgeting process, slashed the number of credit card users to 30 and steeply reduced the credit limits on those cards, updated its policies on evictions for nonpayment and is working with city agencies to fill vacancies, cutting them by 33% over the past nine months.\u003c/p>\n\u003cp>The leaders point out that the instances of improper spending called out in the audit represent only 1.3% of the nonprofit’s $130 million operating budget over the four-year period scrutinized.\u003c/p>\n\u003cp>They criticize the audit for ignoring the “immense operational challenges” the organization faced between 2019 and 2022, including a major leadership change, the chaos of the COVID-19 pandemic, and rising inflation. The audit acknowledges these headwinds but traces the problems back further than 2019.\u003c/p>\n\u003cp>“No matter the extenuating circumstances, HomeRise had an obligation to ensure public funds were managed appropriately,” controller Greg Wagner said in a statement.\u003c/p>\n\u003cp>The city is already seeing improvements in the nonprofit’s management practices, according to a press release from the mayor’s office.\u003c/p>\n\u003cp>“I have full confidence in the new HomeRise leadership to fully implement the audit recommendations, strengthen their organization, and ultimately improve services for tenants in permanent supportive housing,” said Shireen McSpadden, Executive Director of the city’s Department of Homelessness and Supportive Housing (HSH).\u003c/p>\n\u003cp>Mayor Breed on Wednesday said the city would take measures to improve oversight of nonprofits, but didn’t offer specifics. “We don’t want to create unfair burdens on all nonprofits because of the missteps of one, but we will be putting in some new safeguards and making sure that we deal with HomeRise appropriately,” she said.\u003c/p>\n\u003cp>The audit calls for the Mayor’s Office of Housing and Community Development and HSH to work with HomeRise to create a plan to address its financial issues and bring the organization into compliance with city agreements.\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n\u003cp>“They are an incredibly important homeless housing provider that does really tremendous work, especially around eviction prevention and keeping people in housing,” Friedenbach said. “So, I’m hoping they get the support they need to turn things around and get back in good standing because we definitely don’t want to lose this housing.”\u003c/p>\n\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>A leading developer of housing for people exiting homelessness in San Francisco has been “careless and irresponsible” with taxpayer money, according to a report released Tuesday by the city controller.\u003c/p>\n\u003cp>The report details mismanagement and wasteful spending by the nonprofit, HomeRise, including $12,500 spent on a social event and $200,000 in bonuses, and comes amid rising scrutiny of the city’s nonprofits in recent years.\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>HomeRise operates almost a third of city-funded units that serve formerly unhoused people — some 1,500 units across 19 properties, financed by $200 million in public grants and loans.\u003c/p>\n\u003cp>The organization brought in new senior leadership last year and has begun addressing the issues, according to city officials and HomeRise leaders.\u003c/p>\n\u003cp>The nonprofit called many of the audit’s findings factually incorrect or misleading. It “presents a false picture,” they said in a formal response to the audit. “We fear that it threatens to inflict great harm on the organization.”\u003c/p>\n\u003cp>But rather than cut the organization off from future city funding, the controller urged city agencies to strengthen oversight of their contracts with HomeRise and directed HomeRise to improve how it manages city funds. The city has a “vested interest” in ensuring HomeRise remains viable, the controller wrote in his report.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>“If the city chooses to reduce or rescind HomeRise’s city grants and agreements, there is much at stake,” the controller’s report reads. “HomeRise has a critical role as part of San Francisco’s safety net for formerly homeless residents as well as providing affordable and supportive housing units.”\u003c/p>\n\u003cp>The Department of Homelessness and Supportive Housing and the Mayor’s Office on Housing and Community Development requested the audit in 2022 after flagging issues with the nonprofit’s finances that had been going on for several years. The Controller’s Office hired Sjoberg Evashenk Consulting Inc. to undertake the audit.\u003c/p>\n\u003cp>“We are working to provide transparency and oversight with our contracting partners to better deliver services for our residents and city,” Mayor London Breed said in a statement. “This is how we work to improve how we provide services and support and to improve how our city functions.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>In addition to the staff bonuses and an expensive social event, the audit found widespread financial mismanagement, fueled in part by high turnover among its senior staff and high vacancy rates at its properties.\u003c/p>\n\u003cp>“This organization seems to have all the issues that other providers are having, but on steroids,” said Christin Evans, who serves on the Homeless Oversight Commission that oversees the Department of Homelessness and Supportive Housing.\u003c/p>\n\u003cp>Among its key findings, the audit determined:\u003c/p>\n\u003cul>\n\u003cli style=\"font-weight: 400\">In 2022, revenue plunged at 10 of 16 HomeRise properties reviewed by between $13,000 and $917,000, while expenses spiked, rising between 16% to more than 50% over the four-year audit period.\u003c/li>\n\u003c/ul>\n\u003cul>\n\u003cli style=\"font-weight: 400\">HomeRise lost about $6.3 million because of vacancies during the four-year audit period. Most properties had vacancies, for a vacancy rate of 14.6 percent. More than $1.7 million in rent was more than 90 days late and remained unpaid.\u003c/li>\n\u003cli style=\"font-weight: 400\">The nonprofit spent money on fundraising, staff bonuses, lunches and gifts for staff. The expenses reviewed showed “unallowable, imprudent, or questionable spending that did not meet the intent of the City’s grant agreement.”\u003c/li>\n\u003cli style=\"font-weight: 400\">As of January 2023, HomeRise had 118 credit cards in use. Over a third had credit limits of $10,000 or higher, while 21 cards had limits between $15,000 and $70,000. Many of the credit cards didn’t require approval of purchases and the nonprofit didn’t have protocols governing their use.\u003c/li>\n\u003cli style=\"font-weight: 400\">HomeRise’s Finance Department had extremely high turnover; only 5 positions out of 14 were filled by February 2023.\u003c/li>\n\u003cli style=\"font-weight: 400\">The nonprofit promoted employees to high-level positions with salary bumps ranging from $22,000 to $72,000. One salary increased by more than $87,000 (74%) in nine months.\u003c/li>\n\u003cli style=\"font-weight: 400\">HomeRise handed out bonuses of $1,000 to $10,000 per employee. HomeRise gave staff “signing” bonuses even though they’d been working there for years.\u003c/li>\n\u003cli style=\"font-weight: 400\">HomeRise held meetings focused on finding corporate expenses that could be paid for with any city grant funds that remained at the end of the year.\u003c/li>\n\u003cli style=\"font-weight: 400\">To cover payroll, the nonprofit borrowed $2.5 million from a property’s operating account to. HomeRise’s leaders said this was repaid as of October 2023.\u003c/li>\n\u003c/ul>\n\u003cp>Employee turnover and trouble filling housing vacancies are the chief problems dogging all the city’s homeless housing providers, Evans said. She pointed out that the HomeRise building with the highest level of vacancies is an SRO that doesn’t have kitchens or private bathrooms, making those units less attractive.\u003c/p>\n\u003cp>“As the Homeless Oversight Commission looks to identify ways to ensure that we’re spending our money and resources appropriately, we really need to look at repurposing the buildings that have high vacancy rates because they really don’t meet people’s long-term needs,” she said.\u003c/p>\n\u003cp>Jennifer Friedenbach, executive director of the Coalition on Homelessness, which helped found the nonprofit and still appoints members to its board, cited senior staff turnover as a major contributor to HomeRise’s troubles.\u003c/p>\n\u003cp>“When you have folks who are doing really advanced jobs and then their salaries aren’t competitive, there’s a lot of turnover,” she said. “This combination of underfunding of wages that lead to turnover and the empty units, all of this kind of spells disaster. It’s a very difficult situation.”\u003c/p>\n\u003cp>In a March 15 response to the controller’s findings, HomeRise CEO Janéa Jackson, who took over in mid-2023, and board president Gregg Miller assured the city that the organization is on its way to remedying the issues identified by the audit.\u003c/p>\n\u003cp>Under new leadership, they said HomeRise has, among other things, overhauled its budgeting process, slashed the number of credit card users to 30 and steeply reduced the credit limits on those cards, updated its policies on evictions for nonpayment and is working with city agencies to fill vacancies, cutting them by 33% over the past nine months.\u003c/p>\n\u003cp>The leaders point out that the instances of improper spending called out in the audit represent only 1.3% of the nonprofit’s $130 million operating budget over the four-year period scrutinized.\u003c/p>\n\u003cp>They criticize the audit for ignoring the “immense operational challenges” the organization faced between 2019 and 2022, including a major leadership change, the chaos of the COVID-19 pandemic, and rising inflation. The audit acknowledges these headwinds but traces the problems back further than 2019.\u003c/p>\n\u003cp>“No matter the extenuating circumstances, HomeRise had an obligation to ensure public funds were managed appropriately,” controller Greg Wagner said in a statement.\u003c/p>\n\u003cp>The city is already seeing improvements in the nonprofit’s management practices, according to a press release from the mayor’s office.\u003c/p>\n\u003cp>“I have full confidence in the new HomeRise leadership to fully implement the audit recommendations, strengthen their organization, and ultimately improve services for tenants in permanent supportive housing,” said Shireen McSpadden, Executive Director of the city’s Department of Homelessness and Supportive Housing (HSH).\u003c/p>\n\u003cp>Mayor Breed on Wednesday said the city would take measures to improve oversight of nonprofits, but didn’t offer specifics. “We don’t want to create unfair burdens on all nonprofits because of the missteps of one, but we will be putting in some new safeguards and making sure that we deal with HomeRise appropriately,” she said.\u003c/p>\n\u003cp>The audit calls for the Mayor’s Office of Housing and Community Development and HSH to work with HomeRise to create a plan to address its financial issues and bring the organization into compliance with city agreements.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>“They are an incredibly important homeless housing provider that does really tremendous work, especially around eviction prevention and keeping people in housing,” Friedenbach said. “So, I’m hoping they get the support they need to turn things around and get back in good standing because we definitely don’t want to lose this housing.”\u003c/p>\n\n\u003c/div>\u003c/p>",
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"slug": "bad-policies-and-practices-report-highlights-weak-sf-laws-that-enable-public-corruption",
"title": "'Bad Policies and Practices': Report Highlights Weak SF Laws That Enable Public Corruption",
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"headTitle": "‘Bad Policies and Practices’: Report Highlights Weak SF Laws That Enable Public Corruption | KQED",
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"content": "\u003cp>The possibility for corruption is rife in San Francisco’s Public Works and homelessness contract approval processes.\u003c/p>\n\u003cp>But, there’s a fix.\u003c/p>\n\u003cp>That’s according \u003ca href=\"http://openbook.sfgov.org/webreports/details3.aspx?id=2843\">to a new report released Monday\u003c/a> by the San Francisco City Controller’s Office, which analyzed city laws and processes following the \u003ca href=\"https://www.kqed.org/news/11798447/sf-public-works-director-mohammed-nuru-arrested-by-fbi\">FBI’s January arrest \u003c/a>of former Public Works Director Mohammed Nuru on public corruption charges.\u003c/p>\n\u003cp>Nuru was charged in connection with a series of alleged schemes involving public agency contracts, including an attempt to bribe a San Francisco International Airport commissioner to obtain a favorable contract.\u003c/p>\n\u003cp>The FBI investigation has also widened, encompassing former director of the Mayor’s Office of Neighborhood Services Sandra Zuniga and Balmore Hernandez, CEO of engineering firm Azul Works, Inc which holds large contracts with the city.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>The controller’s report offers suggestions for closing the legal loopholes that allowed Nuru, and others, to allegedly award city contracts to close allies.\u003c/p>\n\u003cp>“Our job is to ensure the transparency, accountability, and ethical behavior that San Franciscans are owed when it comes to the delivery of city services and the use of their tax dollars,” City Controller Ben Rosenfield said in a statement. “In simple terms, the Controller’s Office is seeking to rectify bad policies and practices that undermine those goals.”\u003c/p>\n\u003cp>[aside label=\"related coverage\" tag=\"mohammed-nuru\"]The report reveals sweeping vulnerabilities in city accountability provisions, and recommends a spate of changes, including stricter reporting requirements for financial gifts, greater transparency in how city contractors are hired and more competitive bidding processes.\u003c/p>\n\u003cp>Perhaps most glaring among the report’s findings is that Nuru essentially had no direct oversight for spending millions of dollars in city money.\u003c/p>\n\u003cp>Many city departments have an oversight board, usually appointed by the mayor or board of supervisors, responsible for scrutinizing and approving often lucrative contracts.\u003c/p>\n\u003cp>But Public Works, the department Nuru led, which was once overseen by the mayor’s office, has for years monitored itself.\u003c/p>\n\u003cp>“The mayor should reverse” that delegation, the report recommends.\u003c/p>\n\u003cp>Using that power, Nuru awarded roughly $25 million in homelessness contracts. Of those, the report found roughly $10 million were awarded “through no discernable selection process and are at the greatest risk of fraud or abuse in the award process.”\u003c/p>\n\u003cp>Two of the contracts in that $10 million pool, the controller’s office noted, were awarded by Nuru to Walter Wong, a permit-expediter who was arrested by the FBI just last week and charged with two counts of conspiracy to commit fraud and conspiracy to engage in money laundering, according to the U.S. Attorney’s Office.\u003c/p>\n\u003cblockquote class=\"twitter-tweet\" data-conversation=\"none\">\n\u003cp dir=\"ltr\" lang=\"en\">Wong allegedly arranged for Nuru to be flown to China to be wined/dined by Zhang Li, the 555 Fulton developer.\u003c/p>\n\u003cp>The new City Attorney investigative report today alleges Wong did the same for DBI director Tom Hui.\u003c/p>\n\u003cp>Here’s the full investigative report:\u003ca href=\"https://t.co/V81IOrnnG6\">https://t.co/V81IOrnnG6\u003c/a>\u003c/p>\n\u003cp>— Joe Fitzgerald Rodriguez (@FitzTheReporter) \u003ca href=\"https://twitter.com/FitzTheReporter/status/1237514322638594050?ref_src=twsrc%5Etfw\">March 10, 2020\u003c/a>\u003c/p>\u003c/blockquote>\n\u003cp>A $171,000 portable toilet contract also went to Nick Bovis, the Lefty O’Doul’s restauranteur who was indicted alongside Nuru in January. The city canceled that contract, according to the report.\u003c/p>\n\u003cp>The report also recommends greater transparency for behest payments, in which contractors donate to nonprofits at the behest of a city official. Currently, only the board of supervisors and particular city officials are required to reveal such payments. But the report shows department heads and other staffers should reveal all donations they request from contractors, even if those donations are directed to third-party charities, as those payments can be used as workarounds for bribes.\u003c/p>\n\u003cp>On Monday, in response to the controller’s report, Mayor London Breed announced a set of immediate fixes and legislation to address some of the many shortcomings identified.\u003c/p>\n\u003cp>Among those changes, Breed pledged to rescind the unusual authority of the Public Works director to award contracts with little oversight.\u003c/p>\n\u003cp>“I know these are the first in a series of recommendations, and we need to continue to identify problematic issues that erode public trust across our city,” Breed said in a statement.\u003c/p>\n\u003cp>The mayor has made an effort to clean house in the wake of the Nuru scandal, one she became tied to in February after \u003ca href=\"https://www.kqed.org/news/11801734/sf-mayor-breed-reveals-she-once-dated-mohammed-nuru-received-gift-from-him\">publicly admitting\u003c/a> she had accepted $5,600 in car repairs from Nuru in 2019, a gift she did not report despite a legal requirement to do so.\u003c/p>\n\u003cp>Supervisor Matt Haney is also seeking fixes based on the controller’s report, including limiting “insider contracting” — in which pre-qualified contractors do not have to competitively bid for new contracts — and revisiting the city’s ethics code rule that bars officials from accepting gifts from contractors, but includes an exemption for friends.\u003c/p>\n\u003cp>https://twitter.com/MattHaneySF/status/1277711045306417152\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>“The controller’s analysis makes it clear that we need sweeping structural reform in City Hall,” Haney said in a statement. “We’ve let years of corruption waste taxpayer dollars, as city hall bureaucrats have awarded millions of dollars in contracts to their friends with no oversight. And in too many cases, they’ve gotten kickbacks for themselves or their friends under the table.”\u003c/p>\n\n",
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"title": "'Bad Policies and Practices': Report Highlights Weak SF Laws That Enable Public Corruption | KQED",
"description": "A new report from the San Francisco City Controller's Office says stronger ethics laws are needed to thwart political corruption in city government.",
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"headline": "'Bad Policies and Practices': Report Highlights Weak SF Laws That Enable Public Corruption",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>The possibility for corruption is rife in San Francisco’s Public Works and homelessness contract approval processes.\u003c/p>\n\u003cp>But, there’s a fix.\u003c/p>\n\u003cp>That’s according \u003ca href=\"http://openbook.sfgov.org/webreports/details3.aspx?id=2843\">to a new report released Monday\u003c/a> by the San Francisco City Controller’s Office, which analyzed city laws and processes following the \u003ca href=\"https://www.kqed.org/news/11798447/sf-public-works-director-mohammed-nuru-arrested-by-fbi\">FBI’s January arrest \u003c/a>of former Public Works Director Mohammed Nuru on public corruption charges.\u003c/p>\n\u003cp>Nuru was charged in connection with a series of alleged schemes involving public agency contracts, including an attempt to bribe a San Francisco International Airport commissioner to obtain a favorable contract.\u003c/p>\n\u003cp>The FBI investigation has also widened, encompassing former director of the Mayor’s Office of Neighborhood Services Sandra Zuniga and Balmore Hernandez, CEO of engineering firm Azul Works, Inc which holds large contracts with the city.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>The controller’s report offers suggestions for closing the legal loopholes that allowed Nuru, and others, to allegedly award city contracts to close allies.\u003c/p>\n\u003cp>“Our job is to ensure the transparency, accountability, and ethical behavior that San Franciscans are owed when it comes to the delivery of city services and the use of their tax dollars,” City Controller Ben Rosenfield said in a statement. “In simple terms, the Controller’s Office is seeking to rectify bad policies and practices that undermine those goals.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>The report reveals sweeping vulnerabilities in city accountability provisions, and recommends a spate of changes, including stricter reporting requirements for financial gifts, greater transparency in how city contractors are hired and more competitive bidding processes.\u003c/p>\n\u003cp>Perhaps most glaring among the report’s findings is that Nuru essentially had no direct oversight for spending millions of dollars in city money.\u003c/p>\n\u003cp>Many city departments have an oversight board, usually appointed by the mayor or board of supervisors, responsible for scrutinizing and approving often lucrative contracts.\u003c/p>\n\u003cp>But Public Works, the department Nuru led, which was once overseen by the mayor’s office, has for years monitored itself.\u003c/p>\n\u003cp>“The mayor should reverse” that delegation, the report recommends.\u003c/p>\n\u003cp>Using that power, Nuru awarded roughly $25 million in homelessness contracts. Of those, the report found roughly $10 million were awarded “through no discernable selection process and are at the greatest risk of fraud or abuse in the award process.”\u003c/p>\n\u003cp>Two of the contracts in that $10 million pool, the controller’s office noted, were awarded by Nuru to Walter Wong, a permit-expediter who was arrested by the FBI just last week and charged with two counts of conspiracy to commit fraud and conspiracy to engage in money laundering, according to the U.S. Attorney’s Office.\u003c/p>\n\u003cblockquote class=\"twitter-tweet\" data-conversation=\"none\">\n\u003cp dir=\"ltr\" lang=\"en\">Wong allegedly arranged for Nuru to be flown to China to be wined/dined by Zhang Li, the 555 Fulton developer.\u003c/p>\n\u003cp>The new City Attorney investigative report today alleges Wong did the same for DBI director Tom Hui.\u003c/p>\n\u003cp>Here’s the full investigative report:\u003ca href=\"https://t.co/V81IOrnnG6\">https://t.co/V81IOrnnG6\u003c/a>\u003c/p>\n\u003cp>— Joe Fitzgerald Rodriguez (@FitzTheReporter) \u003ca href=\"https://twitter.com/FitzTheReporter/status/1237514322638594050?ref_src=twsrc%5Etfw\">March 10, 2020\u003c/a>\u003c/p>\u003c/blockquote>\n\u003cp>A $171,000 portable toilet contract also went to Nick Bovis, the Lefty O’Doul’s restauranteur who was indicted alongside Nuru in January. The city canceled that contract, according to the report.\u003c/p>\n\u003cp>The report also recommends greater transparency for behest payments, in which contractors donate to nonprofits at the behest of a city official. Currently, only the board of supervisors and particular city officials are required to reveal such payments. But the report shows department heads and other staffers should reveal all donations they request from contractors, even if those donations are directed to third-party charities, as those payments can be used as workarounds for bribes.\u003c/p>\n\u003cp>On Monday, in response to the controller’s report, Mayor London Breed announced a set of immediate fixes and legislation to address some of the many shortcomings identified.\u003c/p>\n\u003cp>Among those changes, Breed pledged to rescind the unusual authority of the Public Works director to award contracts with little oversight.\u003c/p>\n\u003cp>“I know these are the first in a series of recommendations, and we need to continue to identify problematic issues that erode public trust across our city,” Breed said in a statement.\u003c/p>\n\u003cp>The mayor has made an effort to clean house in the wake of the Nuru scandal, one she became tied to in February after \u003ca href=\"https://www.kqed.org/news/11801734/sf-mayor-breed-reveals-she-once-dated-mohammed-nuru-received-gift-from-him\">publicly admitting\u003c/a> she had accepted $5,600 in car repairs from Nuru in 2019, a gift she did not report despite a legal requirement to do so.\u003c/p>\n\u003cp>Supervisor Matt Haney is also seeking fixes based on the controller’s report, including limiting “insider contracting” — in which pre-qualified contractors do not have to competitively bid for new contracts — and revisiting the city’s ethics code rule that bars officials from accepting gifts from contractors, but includes an exemption for friends.\u003c/p>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\n\u003cp>\u003c/p>\n\u003cp>“The controller’s analysis makes it clear that we need sweeping structural reform in City Hall,” Haney said in a statement. “We’ve let years of corruption waste taxpayer dollars, as city hall bureaucrats have awarded millions of dollars in contracts to their friends with no oversight. And in too many cases, they’ve gotten kickbacks for themselves or their friends under the table.”\u003c/p>\n\n\u003c/div>\u003c/p>",
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"info": "Our flagship program, helmed by Kai Ryssdal, examines what the day in money delivered, through stories, conversations, newsworthy numbers and more. Updated Monday through Friday at about 3:30 p.m. PT.",
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"politicalbreakdown": {
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"tagline": "Politics from a personal perspective",
"info": "Political Breakdown is a new series that explores the political intersection of California and the nation. Each week hosts Scott Shafer and Marisa Lagos are joined with a new special guest to unpack politics -- with personality — and offer an insider’s glimpse at how politics happens.",
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"possible": {
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"title": "Possible",
"info": "Possible is hosted by entrepreneur Reid Hoffman and writer Aria Finger. Together in Possible, Hoffman and Finger lead enlightening discussions about building a brighter collective future. The show features interviews with visionary guests like Trevor Noah, Sam Altman and Janette Sadik-Khan. Possible paints an optimistic portrait of the world we can create through science, policy, business, art and our shared humanity. It asks: What if everything goes right for once? How can we get there? Each episode also includes a short fiction story generated by advanced AI GPT-4, serving as a thought-provoking springboard to speculate how humanity could leverage technology for good.",
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"pri-the-world": {
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"info": "Each weekday, host Marco Werman and his team of producers bring you the world's most interesting stories in an hour of radio that reminds us just how small our planet really is.",
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},
"radiolab": {
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"info": "A two-time Peabody Award-winner, Radiolab is an investigation told through sounds and stories, and centered around one big idea. In the Radiolab world, information sounds like music and science and culture collide. Hosted by Jad Abumrad and Robert Krulwich, the show is designed for listeners who demand skepticism, but appreciate wonder. WNYC Studios is the producer of other leading podcasts including Freakonomics Radio, Death, Sex & Money, On the Media and many more.",
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},
"reveal": {
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"info": "Created by The Center for Investigative Reporting and PRX, Reveal is public radios first one-hour weekly radio show and podcast dedicated to investigative reporting. Credible, fact based and without a partisan agenda, Reveal combines the power and artistry of driveway moment storytelling with data-rich reporting on critically important issues. The result is stories that inform and inspire, arming our listeners with information to right injustices, hold the powerful accountable and improve lives.Reveal is hosted by Al Letson and showcases the award-winning work of CIR and newsrooms large and small across the nation. In a radio and podcast market crowded with choices, Reveal focuses on important and often surprising stories that illuminate the world for our listeners.",
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},
"rightnowish": {
"id": "rightnowish",
"title": "Rightnowish",
"tagline": "Art is where you find it",
"info": "Rightnowish digs into life in the Bay Area right now… ish. Journalist Pendarvis Harshaw takes us to galleries painted on the sides of liquor stores in West Oakland. We'll dance in warehouses in the Bayview, make smoothies with kids in South Berkeley, and listen to classical music in a 1984 Cutlass Supreme in Richmond. Every week, Pen talks to movers and shakers about how the Bay Area shapes what they create, and how they shape the place we call home.",
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},
"science-friday": {
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