An audit indicates New York taxpayers are being fleeced for millions in no-bid contracts under emergency powers to deal with the illegal immigration crisis.
An audit reveals that New York taxpayers are being overcharged millions of dollars for non-competitive contracts awarded by Mayor Eric Adamsâs administration to for-profit companies to provide services to illegal immigrants.
New York City Comptroller Brad Lander said in a statement that city agencies probably spent âmillions of dollars more than necessaryâ for the same services, adding that City Hall should âinsist on getting the most competitive prices from its own contractors in order to keep costs down.â
The mayorâs office did not immediately respond to a request for comment.
âHaphazard Approachâ
The influx of illegal immigrants led Mr. Adams to declare a state of emergency in October 2022 and quickly scale up shelter operations to provide housing to the new arrivals under New Yorkâs long-standing right-to-shelter laws.
Since then, the city has opened over 210 shelters and other facilities to provide temporary housing to illegal immigrants, with city authorities turning to outside vendors to provide services like meals, medical care, and site staffing.
The Comptrollerâs Office audit found that roughly 340 unique contracts valued at roughly $5.7 billion were in place as of November 2023, with most of them procured on an emergency basis.
Emergency procurements, which waive competitive bidding requirements, allow the city to quickly source vendors. But they also mean less oversight and higher pricesâwhich translate to a bigger financial burden for taxpayers.
âThe City allowed for-profit companies to take advantage of an emergency in its nascency,â the audit report states, adding that companies charged âexorbitant ratesâ to do work that the city often procures at more reasonable rates.
The Comptrollerâs audit found that supervisors and security staff at various illegal immigrant shelters were being paid âwildlyâ different rates, even though the services they were providing were exactly the same.
For instance, a review of the four highest-cost deals found that the city was paying private security guards between $50 and $117 per hour, which is much higher than the prevailing wage rate of $27.58 an hour.
The audit indicates that the city would have spent âfar lessâ if it had relied on its existing organizational structure and civil service jobs rather than financially wasteful emergency procurements.
âAnnualized, the savings would total approximately $50 million if certain staffing had been provided by hiring City employees rather than through the emergency contract,â the report reads.
âThe Cityâs haphazard approach to entering these contractsâand their subsequent failure to compare or control prices across themâunderscores the pitfalls of inadequate management of emergency procurement,â Mr. Lander said in his statement.
Costs In Focus
New York City spent around $1.45 billion on the illegal immigration crisis in fiscal year 2023 and is set to spend nearly $11 billion on it over the next two years, according to earlier reporting.
In November, Mr. Adamsâs office released an updated financial plan for fiscal year 2024, which included a cost-cutting scheme called the âprogram to eliminate the gapâ or PEG, which imposed a 5 percent across-the-board cut affecting every city agency, balancing the budget at the expense of services, including education and policing.
Mr. Adams said that the city would be cutting an additional 10 percent in budgeted city-funded spending on illegal immigrants in addition to a 20 percent cut in the preliminary budget that he said already saved $1.7 billion.
âThe combination of our tough, but necessary financial management decisions, including cutting asylum seeker spending by billions of dollars, along with better-than-expected economic performance in 2023, is allowing us to cancel the last round of spending cuts, as well as lift the near total freezes on city hiring and other than personal spending,â Mr. Adams said in a statement.
âMake no mistakeâwe are not yet out of the woods, as we still need Albany and Washington, D.C. to play their roles in providing New Yorkers with additional support,â he added.
Mr. Adams has repeatedly lambasted the Biden administration for failing to provide adequate help with the illegal immigration crisis.
Original News Source Link – Epoch Times
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