City has 'nothing' to show for dubious million-dollar deal

Started by JHAT76, June 23, 2016, 12:48:30 PM

JHAT76

http://www.firstcoastnews.com/news/investigations/city-has-nothing-to-show-for-dubious-million-dollar-deal/252642808

Misleading.

Inappropriate.

Unauthorized.

Not done in accordance with legal requirements.

Not legally allowable.

That's how city auditors describe four years of dubious financial transactions by a top city official. The result: a million-dollar deal for which auditors say the city has little or nothing to show.

Just as troubling, the money went to a company with close ties to the official who orchestrated the deal.

The expenditures came to light in an audit released Tuesday. It found that Mayoral Chief of Staff Kerri Stewart issued a no-bid contract for consulting services to Infinity Global Services in 2007 – while she was head of the city's Neighborhoods Department under then-Mayor John Peyton.

That contract continued through 2011, when Stewart authorized diverting $400,000 from a limited-use municipal bond fund belonging to City Councilman Reggie Brown, and using that money to pay IGS.

The four projects the bond money was earmarked to pay for, including bleachers at a Northwest Jacksonville park and renovations to a community center, have still not begun.

Council Auditor Kirk Sherman says the price tag of the deal bloomed eightfold over four years, even though the scope of the original contract never changed. He noted, auditors could not discern "any significant work product" from the contract.

Shortly after she signed off on the $400,000 transfer, Stewart went to work for IGS as a Senior Vice President. She returned to the public sector in 2015 to work under Mayor Lenny Curry.

Stewart referred questions to the mayor's office.

Curry declined requests for an interview, issuing a statement through a spokesperson. That statement is printed in its entirety below. Curry did agree with the recommendations of auditors, however, including repaying Brown's depleted bond fund.

Brown, who initiated the audit when he realized his bond funds were missing, did not return multiple calls for comment.

Gilmore, president of IGS, declined to discuss the audit findings, or say what services his company provided in exchange for almost $1 million.

Upon his election, Mayor Curry has sought to lead with transparency, fiscal responsibility and proper stewardship of taxpayers' dollars. He is as equally committed to working closely with the Jacksonville City Council on addressing the needs of citizens and the communities they serve.
Within his first 90 days, Mayor Curry commissioned an audit to gain greater insight and understanding of the City's financial health. While he is unable to speak to previous administrations' practices, he has fully reviewed the report identifying the 2007 project, and is adhering to its recommendations. Funds are being redirected, as specified. Audits afford us the opportunity to learn from challenges while strengthening our operations and services.



saltlife_steve

"stay positive?" how are jacksonville residents supposed to stay positive about this? this is a crime on a federal level

Noone

Quote from: saltlife_steve on August 27, 2016, 03:52:21 AM
"stay positive?" how are jacksonville residents supposed to stay positive about this? this is a crime on a federal level

+1