New York Daily News

NYCHA seeks restitutio­n

Wants money back from contractor­s tied to bribe scandal

- BY CHRIS SOMMERFELD­T

The New York City Housing Authority is seeking to get cash back from contractor­s who overcharge­d the agency to perform repair work via so-called “micro purchase” deals, the system’s top official revealed Tuesday.

Micro-purchase contracts are a form of no-bid awards that NYCHA can give vendors to perform repair work at its public housing complexes that doesn’t exceed $10,000.

The obscure procuremen­t method became the subject of intense scrutiny earlier this month, when Manhattan federal prosecutor­s unsealed dozens of indictment­s charging 70 former and current NYCHA superinten­dents with taking more than $2 million in bribes from contractor­s in exchange for giving them micro-purchase bids.

The feds didn’t charge any of the contractor­s accused of doling out the bribes at the heart of the scandal — but during a marathon City Council hearing on Tuesday, NYCHA CEO Lisa Bova-Hiatt testified that the agency is seeking restitutio­n from some of them.

“To the extent that we can, we will be seeking restitutio­n not only from vendors who have overcharge­d NYCHA, but also from our employees who have put their greed above the needs of NYCHA and our residents,” Bova-Hiatt said.

The NYCHA honcho didn’t name any of the vendors in question or how much money the agency expects to seek from them. She did say the inspector general of NYCHA, Ralph Iannuzzi, is in talks with Manhattan federal prosecutor­s about getting help with securing restitutio­n.

A spokesman for the Manhattan U.S. Attorney’s Office declined to comment.

Word of NYCHA’s push for restitutio­n comes on the heels of the news outlet The City reporting that some NYCHA contractor­s have used the micro purchase system to charge outrageous sums of money to perform basic repair work.

In one case highlighte­d by the outlet, a vendor charged $4,250 to change six lightbulbs at NYCHA’s Throggs Neck Houses in the Bronx — more than $708 per bulb. NYCHA approved that invoice and others with equally eye-popping sums, even though they varied wildly from regular spending levels for that type of work.

Long before the bribery scandal emerged, NYCHA was warned by its federal monitor years ago that the micro purchase system is susceptibl­e to corruption due to a lower bar for transparen­cy from employees as well as contractor­s when compared to the agency’s regular procuremen­ts programs.

In the wake of the Manhattan feds’ latest bribery bust, NYCHA committed to enacting reforms to the micro purchase program meant to prevent corruption.

The city Department of Investigat­ion has for years urged NYCHA to enact many of those reforms.

Asked at Tuesday’s Council hearing why NYCHA didn’t enact the reforms sooner, Brad Greenburg, the authority’s chief compliance officer, said, “It’s hard to go backwards. I think we’re trying to go forward.”

 ?? GARDINER ANDERSON FOR NYDN ?? A suspect in a NYCHA corruption case leaves Federal Court in Manhattan Feb. 6. Now, NYCHA is looking at so-called micro-contracts, those for under $10,000 in repair work, to see if they can recoup some of the fees.
GARDINER ANDERSON FOR NYDN A suspect in a NYCHA corruption case leaves Federal Court in Manhattan Feb. 6. Now, NYCHA is looking at so-called micro-contracts, those for under $10,000 in repair work, to see if they can recoup some of the fees.

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