Saturday, September 17, 2011

The Bureaucratic Shuffle – potential fraud in East Greenbush, New York government


This week, I was visited by a concerned citizen of East Greenbush, New York – a suburb of Albany, New York. He brought me a package of information alleging wrong-doing by East Greenbush government officials – about $500,000, based on the work he and several other people produced.

This individual was a former auditor and some of the people working with him were former town officials – so they have some credibility.

I reviewed the material and it was believable. More work needs to be done to determine if in fact fraud has occurred, tax dollars were wasted or if in fact, these are legitimate transactions – but didn’t (or did) comply with the town laws.

For example, one town employee was paid over $170,000 to be a “town consultant.” The person submitted vouchers for the supposed work done, but was not paid as an independent contractor. Instead, he was paid as an employee. On the surface, something is fundamentally wrong with this.

If you’re a consultant, unless you have some special expertise that justifies a sole source contract, this work should have been competitively bid.

More importantly, favored individuals shouldn’t be getting government business. State and municipal law require all vendors get a fair opportunity to get government’s business.

But why pay him as an employee and incur additional payroll costs? The less expensive way is to pay him as the independent contractor he seemed to be from the vouchers he submitted (employees don't submit vouchers, contractors do).

The town incurred additional payroll taxes and pension contributions that were unnecessary by paying him as an employee.

On January 17, 2011, these citizens wrote to the Governor’s office requesting his assistance in this matter. He must have referred it to the Attorney General’s Office because on February 24, 2011, these citizens received a call from that office requesting they compile a summary of the issues, along with related documentation, and send it to the attention of the Office of the State Comptroller.

A letter and supporting documentation was sent on March 2, 2011.

This is called the bureaucratic shuffle – no one wants to take responsibility to hold anyone accountable for the wrong-doing that might have occurred.

The March 2 letter to the State Comptroller’s Office has gone unanswered more than six-months later. It was a detailed letter with supporting documents that would have caused me to act affirmatively in pursuing the matter.

Prior to the letter going to the State Comptroller’s Office, the press reported on the matter and actually called for a further investigation by the State Comptroller’s Office – this simply hasn’t happened.

Democracy depends on citizens having reliable, accurate facts put in a meaningful context. That has not occurred in this case.

Something is fundamentally wrong when concerned and involved citizens cannot get oversight agencies and the media to properly investigate allegations of wrongdoing. A proper investigation includes accurate verification of the facts, an understanding of the underlying causes of the problem and an ultimate resolution to assure internal controls are in place to minimize the possibility of similar wrong-doing in the future.

But, from a common decency perspective, these citizens deserved a response from the State Comptroller’s Office. There may be valid reasons this issue isn’t being pursued, but those reasons should be explained to them so they can decide on their own future course of action.

These citizens believe the real reason no action is being taken is the political connections that exist between the players in the various State government and town offices.

If that is correct - someone has sold their soul. And that’s too bad for all the citizens of New York State.

9 comments:

  1. Dave: A number of concerned citizens have written the OSC's office since 2009. There has been no response to any of us.

    One of the members of the EG Town Board is being investigated for violations of his Notary responsibilities. This town official is alleged to have threatened the investigator.

    The whole picture of East Greenbush is one of corruption. In one very obvious and documented example the Supervisor openly told a citizen: "What are you going to do about it?"

    Why the good people of East Greenbush cannot get any support from those state agencies intended to protect them is a sad example of power partisan politics as work.

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  2. This has been going on in East Greenbush for the last couple of years, and it just amazes me that nothing has been done. This is pure corruption. Why will nobody look at this?

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  3. Dave have someone tell you about the ambulance squad in East Greenbush.

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  4. Dave, have someone tell you the full story of the "scrap metal" scanddal. East Greenbush should have received about $30,000 a year for the scrap metal. We received $3,000 for 16 months worth.
    It appears that there was not any contract with the Co. and there are not any records concerning the scrap metal. Who got the money?

    Gov Cuomo's people don't care about the taxpayers in East Greenbush. We need so much help, but are ignored at every turn. Is it because the Town Officials are Dems? Should that matter?` Crooks are crooks, red or blue.

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  5. Dave, story after story are told concerning officials in other municipalities. Our current leadership made the radio, tv and newspapers. I am concerned that nothing is being followed through concerning the actions of our local government. East Greenbush should be seriously looked into. The OSC and DA are obligated to seek their own findings when matters of a questionable nature are brought to their attention. We are seeing politics playing out in it's worst form, when citizens are denied due process of law concerning their elected officials. Thanks Dave.

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  6. Figures you wont post my comment....Sounds like you are a Don Johnson cronie.

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  7. Dave, do you have any idea what these brave people can do next? I say brave, because you have NO idea what these corrupt pols are capable of doing and have done to keep their positions.

    Please don't tell me we have to keep taking this if the Cuomo Administration keeps turning a blind eye.

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  8. Dave, as you know the Town's annual AUD is supposed to be submitted to OSC by April Fool's Day. The fools in East Greenbush still haven't submitted theirs! Does OSC care? I guess not. You're an old auditor- take a look at last year's AUD. It's on the Town's web page. Tell us, like "Where's Waldo," what's missing. And OSC is okay with that?

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  9. Dave, we are seven days away from election day. Our elected officials held up the annual audit AGAIN and are sitting on an Ethics Code Draft. McNally is turning a blind eye to our blight. A lot of money has been handed out to a few people and no good reason has been stated for those actions.

    Our Supervisor recently said, he is tired of our crap at a Town Board Meeting. We are getting no respect from anyone. Dave, is there anything more you can do to help us? I was going to post my first name, but I'm concerned like others about how the supporters of the current administration will respond. Intimidation is well known in our community.

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