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Friday, August 6, 2010

Local Businesses Contracting Program a Mess, Audit Finds

Posted By on Fri, Aug 6, 2010 at 1:30 PM

Please file a report explaining all that paper..
  • Please file a report explaining all that paper..
The city's  Local Business Enterprise program, which gives preference to San Francisco businesses bidding on government contracts, is in shambles, an audit reveals.

Paperwork required to prevent widespread fraud is routinely ignored -- and contractors are paid anyway, the city controller reports

The controller blamed officials at the airport, the Public Utilities Commission and the Port of San Francisco for letting contractors walk away with hefty payments without completing all the required paperwork. 

The airport didn't require a contractor to submit all the payment forms prior to receiving $500,000 for electrical work; the PUC allowed a contractor to increase the amount of its agreed-upon payment without submitting proper paperwork; and the Port failed to require payment affidavit forms, the report revealed.

Additionally, the airport official charged with overseeing an electrical system job failed to personally visit the work site.

Dutifully, the three agencies responded with their own reports saying they would file more and better paperwork in the future.

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