The city's $432 million no-bid contract with migrant services firm DocGo has been the subject of a recent audit by Comptroller Brad Lander, which has revealed a significant amount of misuse of taxpayer funds.
The audit, which encompassed the initial two months of the contract in May and June 2023, determined that nearly $11 million of the $13.8 million paid to DocGo was improperly invoiced for unused hotel rooms and uneaten meals and lacked adequate documentation, according to the New York Post.
Lander criticized the city's supervision, emphasizing that payments for a variety of services were either inflated or undocumented, and that subcontractors were not adequately monitored. The audit revealed that over $9 million of the payments were directed to unapproved subcontractors. It also predicted that overpayments could reach $134.4 million if similar errors were present throughout the entire contract.
The audit also raised concerns regarding DocGo's qualifications, specifically its lack of experience in emergency housing. Mayor Eric Adams overruled Lander's objections to the contract, despite his previous rejection. The audit is in response to complaints regarding the mistreatment of asylum seekers and the use of unlicensed security officers by DocGo.
"I am truly astounded by the lack of scrutiny," Lander stated at a press conference on Tuesday. "As far as we can determine, none of the invoices were thoroughly examined."
Lander, who recently declared his intention to challenge Mayor Eric Adams in the 2025 Democratic primary, has been accused of exploiting the audit for political purposes.
Adams' office defended the city's actions, contending that essential requirements were prioritized over paperwork during a humanitarian crisis.
A mayoral spokesman stated that workers from all corners of the city government were compelled to respond to this defining moment with compassion and concern for others, amidst an unprecedented international humanitarian crisis.
"We prioritized the well-being of individuals over paperwork, as mothers required baby formula and health care workers required supplies."
The Department of Housing Preservation and Development (HPD) acknowledged that the contract was initially mishandled, but they refuted the audit's assessment of their actions.
DocGo defended its performance, asserting that it effectively managed a complex emergency and served 32,000 asylum seekers. The corporation is committed to its obligation to resolve the migrant crisis.
The HPD's "...failure to review the invoices seriously just represents a really callous disregard for taxpayer dollars," according to Lander.