Comptroller might review state contracts

DiNapoli says his office has the skills to sniff out improper spending

SARATOGASPRINGS>> Comptroller Thomas DiNapoli said Wednesday lawmakers are looking at expanding his authority to review contracts like the ones totaling nearly $1 billion that have led to criminal charges against Gov. Andrew Cuomo’s top aides.

“We raised objections when it was taken away from us in the past and some legislators have already reached out to me already and asked how would I feel about that oversight being restored or even enhanced,” he said. “We certainly would welcome that.”

“We have the staff capability to do that and I think it is certainly something the people of the state would expect, that in response to these charges and the allegations that we have a much more robust process of oversight, checks and balances, and accountability. In the comptroller’s office that’s what we are set up to do.”

DiNapoli was referring to federal fraud charges that have been filed against some of Cuomo’s top aides over huge state contracts to build state owned facilities in Albany, Buffalo and Syracuse.

A lobbyist named Todd Howe with deep ties to the Cuomo family pleaded guilty to all charges last week and is cooperating in the prosecution of Cuomo’s former top aide Joseph Percoco, former SUNY Poly President Alain

Kaloyeros, and several Cuomo campaign donors who landed lucrative state contracts.

The contracts that prosecutors said were fixed to favor certain bidders include the construction of a $750 million factory in Buffalo for a company called SolarCity, SUNY student housing in Albany, and state facilities in the Syracuse region.

There are also related allegations that Percoco and his wife took bribes and a no-show job from Orange County energy company that stood to make millions if the state guaranteed power purchases.

Cuomo has not been accused of any wrongdoing and said last week he knew nothing about the alleged crimes uncovered by the FBI and U.S. Attorney Preet Bharara.

DiNapoli said Cuomo and then Assembly Speaker Sheldon Silver and Senate Majority leader Dean Skelos ended his ability to review “SUNY and a number of statewide centralized contracts that are done now through the Office of General Services.” The change that also affects CUNY contracts came when Cuomo took office and moved swiftly to accrue more power over state funds and eliminate what he termed “duplicative and wasteful” review of contracts.

“At the time I raised the concern that the process was set up for us to have an additional set of eyes to look at these contracts on what we call a pre-audit basis or before the approval is done,” he said. “We can still audit some of this work after the fact but if there is a problem when you are auditing after the fact, you can’t really prevent the problem from happening .”

“So we felt that taxpayer value was not being protected by diminishing our oversight.”

DiNapoli was in Saratoga to speak at the convention of the StateWide Senior Action Council, a lobbying group for senior citizens.

Monday, he said he would return more than $20,000 in campaign donations he got from the companies facing charges, COR Development of Syracuse and LPCiminelli of Buffalo.

“People are very concerned about the scandals that seem to always be unfolding and I wanted to send a message that if there is a serious investigation and now charges, if we’ve had contributions from people who have been indicted, we don’t want to hold on to the contributions,” DiNapoli said after his Tuesday speech.

“That our way of saying we understand the frustration that’s out there and I felt the right thing to do was return that money.”

Attorney General Eric Schneiderman is donating the money he got to charity, and Cuomo has announces his funds will be held in case the federal government seeks to seize them.