NYC Comptroller may revoke Mayor’s power to sign $432M migrant-housing deal.
New York City Threatens to Revoke Emergency Authority for Controversial Contract with Medical Company
New York City’s top finance official is taking action against Mayor Eric Adams’ $432 million, no-bid contract with a troubled medical company to address the growing population of illegal immigrants. City Comptroller Brad Lander has announced a “real-time” audit into the criticized contract awarded to DocGo, a company that recently faced controversy and had its top executive resign.
Formerly known as Rapid Reliable Testing NY LLC, DocGo previously provided mobile COVID-19 testing during the pandemic. However, it has now shifted its focus to offering mobile primary care services and is responsible for housing and providing various services to illegal immigrants, including food, medicine, transportation, security, and case management.
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According to DocGo, the company manages a total of 37 housing sites across the state, including 15 hotels and nine shelters in New York City.
City Comptroller Brad Lander typically conducts audits after a contract is completed. However, due to “serious concerns” about DocGo’s suitability for the work, he will begin scrutinizing the contract as soon as the bills come in. This is the first audit of its kind since Lander assumed the post last year.
“Emergency procurement is an important ability for city agencies,” said Lander at a press conference. “But it cannot be a blank check to enter into a no-bid, $432 million contract with a medical services firm that lacks experience in providing shelter and services to asylum-seekers, without the necessary due diligence and integrity.”
“There are too many outstanding questions and concerns about DocGo,” he added. “Are we getting what we’re paying for?”
In addition, the comptroller’s office is reviewing whether to revoke the blanket approval given to the Adams administration to fast-track migrant housing contracts without prior review.
“There is still a clear and demonstrated need for flexibility and urgency as City agencies respond to the continuous arrival of thousands of people each month. However, after 18 months, this is no longer an unexpected situation that justifies the broad suspension of due diligence processes,” wrote Lander in a letter to the New York City Department of Housing Preservation and Development.
On September 6, Lander rejected the $432 million contract with DocGo, citing a lack of evidence that the company had the necessary experience for all the tasks. However, Mayor Adams overruled Lander using his emergency powers.
“We can’t change the rules in the middle of the game,” said the mayor at a press conference, accusing the comptroller of wanting to “just get in the conversation.”
DocGo CEO Resigns
Anthony Capone, the former chief executive of DocGo, resigned on September 15 amid allegations that he lied about his college credentials.
In a filing with the U.S. Securities and Exchange Commission (SEC), the company stated that Capone resigned due to “personal reasons.”
Capone’s departure followed a report from the New York newspaper Times Union, which questioned the information on DocGo’s website regarding his educational background. The website’s biography claimed that Capone had a graduate degree in artificial intelligence from Clarkson University. However, a spokesperson for Clarkson University stated that there was no record of him attending or completing a graduate program there.
In a statement to the Union, Capone admitted that the information in his biography was inaccurate.
“I must clarify immediately: I do not have a master’s degree from Clarkson University, nor from any other institution. This inaccuracy should have been corrected, and I deeply apologize for this error. I do, however, have an undergraduate computer science degree with a focus in artificial intelligence from an accredited university,” he said.
The SEC filing also mentioned that Capone earned his undergraduate degree from the State University of New York College at Potsdam. However, the Potsdam school did not confirm whether he had indeed earned an undergraduate degree there.
What specific areas will the City Comptroller’s audit focus on to determine whether the contract was justified and if the services provided by DocGo are of sufficient quality
Vidence that the company was qualified to handle the specific needs of asylum-seekers and provide the necessary services. However, the contract still went through due to the emergency authority granted to the City in response to the influx of illegal immigrants.
This controversial contract with DocGo has been dogged by controversy and criticism. The company’s CEO, previously known for making false claims about his qualifications, resigned amidst the scrutiny. The City Comptroller’s audit aims to shed light on whether the contract was justified and whether the services provided by DocGo are of sufficient quality.
The audit will focus on several key areas, including the company’s experience in providing shelter and services to asylum-seekers, their ability to meet the needs of the growing population of illegal immigrants, and the integrity of the procurement process. City Comptroller Brad Lander emphasized the importance of due diligence in awarding such a significant contract and called into question whether the City is getting its money’s worth.
Furthermore, Lander’s office is also reviewing the blanket approval given to the Adams administration to fast-track migrant housing contracts without prior review. While the need for flexibility and urgency in responding to the arrival of thousands of people each month is acknowledged, Lander believes that after 18 months, this is no longer an unexpected situation that justifies the suspension of due diligence processes.
The City Comptroller’s actions reflect a commitment to ensuring transparency, accountability, and responsible use of taxpayer funds. The audit’s findings will provide valuable insight into the controversial contract with DocGo and may influence future procurement decisions related to housing and services for asylum-seekers.
As the audit proceeds, it will be crucial for the City to address the concerns surrounding the contract and take appropriate action. The well-being and safety of the growing population of illegal immigrants, as well as the responsible use of public funds, must remain top priorities.
In conclusion, the City Comptroller’s “real-time” audit of the controversial contract between New York City and DocGo highlights the need for due diligence and integrity in public procurement processes. City Comptroller Brad Lander’s actions aim to ensure that taxpayer funds are used responsibly and that the services provided to asylum-seekers meet the necessary standards. The findings of the audit will be instrumental in evaluating the suitability of the contract and may have implications for future procurement decisions.
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