IG report: Improper sale of ATVs, unlicensed contractor among $2.5 million that cost taxpayers
Palm Beach County Inspector General John Carey questioned more than $2.5 million in public spending in 2023, according to his recently released annual report.
The 65-page report labeled $2 million as “questioned costs,” which means expenses were either approved without “adequate documentation or the intended purpose was unreasonable,” but the report noted that not all questioned costs “are indicative of fraud or waste.”
Carey said his staff found nearly $250,000 in cost savings for taxpayers. It referred 53 “matters” to law enforcement or ethics commissions for further investigation and made 60 recommendations to improve government efficiency. The state attorney made three arrests last year based in part on a referral from the IG, according to Carey, and there are other cases that the office is actively involved in with prosecutors.
Among the findings:
Fired Pahokee City Manager Greg Thompson "directed an improper sale of two all terrain vehicles and inappropriately benefited from that action." He was awarded the ATVs even though he never submitted a bid. He subsequently sold them at a profit.
The Village of Tequesta failed to properly review invoices related to the construction of its community center. Nearly $1 million in costs were questioned; $33,000 was cited as being ineligible for payment.
Enterprise Leasing Company of Florida failed to properly report its revenue as required by the contract. It rents cars at Palm Beach International Airport. The IG questioned $232,000 in costs but noted there was no evidence that company attempted to defraud the county.
Lantana used an unlicensed contractor to oversee the renovation of its library. The IG identified $411,000 in questioned costs. The contractor was prosecuted on charges of forging a document that said he had insurance. Town officials maintain that the work was done.
The Urban League was compensated for work it did for the county that lacked “sufficient documentation.” Questioned were $61,000 in costs.
Fraudulent COVID relief applications continue to draw the IG's attention
The IG filed several reports in 2023 documenting fraudulent CARES Act applications where housing assistance was improperly given. It recovered more than $200,000. Fake paystubs were submitted, duplicate applications approved and tenants received rental assistance for rent never paid.
Agencies in Palm Beach County and across the country used federal COVID relief money to keep people and businesses afloat financially during and in the immediate aftermath of the pandemic. But IG Carey, as have his counterparts throughout the country, found that all too often applicants bilked the program.
A report from the Office of the Inspector General for the U.S. Small Business Administration estimates that more than $200 billion in COVID-19 relief loans and grants for small businesses may have been stolen through fraud.
On Dec. 27, the IG released its most recent report, calling on the county to recover nearly $20,000 based on a fraudulent CARES Act application. The applicant falsely claimed to have worked for an employer. The company had no record of him working for it.
Carey said an additional 20 CARES Act cases are being investigated with the potential of showing at least another $200,000 in fraudulent applications.
In the case of former Pahokee City Manager Thompson, the IG found that he was given the two ATVs without submitting a bid: The IG said: "The totality of his conduct reflected a blatant lack of responsibility, fairness and stewardship of taxpayer dollars."
IG office: Underfunding hampers us from doing job
The IG provides oversight for the county’s 39 municipalities, county government and the Solid Waste Authority. The annual report noted that the agency continues to have 13 vacant positions. When the office was created, it was expected to have 40 employees but a number of cities, led by West Palm Beach, legally challenged whether the county had the right to force them to contribute. The county lost the lawsuit, and none of the municipalities help fund the office. As a result, Carey said the office cannot do all of the work that was intended.
"We still look at their (the municipalities) operations," said Carey. "In fact, more of our work involves the municipalities than the county." In the fiscal year of 2023, the agency had an approved budget of $3.5 million. It provides oversight for budgets that total more than $7 billion.
Mike Diamond is a journalist at The Palm Beach Post, part of the USA TODAY Florida Network. He covers Palm Beach County government and transportation. You can reach him at mdiamond@pbpost.com. Help support local journalism. Subscribe today.
This article originally appeared on Palm Beach Post: Inspector General: Government inefficiency and fraud in Palm Beach County
