New Haven Register (New Haven, CT)
GOP seeks audit of COVID spending in wake of arrest
Hours before Democratic state Rep. Michael DiMassa was arrested on allegations of wire fraud in connection with an investigation into the misuse of federal coronavirus relief money in West Haven, the top two Republicans in the state Senate called for a probe into how all 169 cities and towns in the state have spent the federal money.
“These funds are intended to help residents and communities recover during one of the most challenging times of a generation. To learn that officials may have allegedly diverted funding for other purposes shatters public trust. It is wrong and it is infuriating,” Sens. Kevin Kelly, R-Stratford, and Paul Formica, R-East Lyme, said in a letter Wednesday to the state’s budget director, which referenced the FBI investigation but not DiMassa’s arrest.
The top state budget official responded by saying state oversight is already under way and that a full review will happen.
DiMassa is also an employee for the city of West Haven. Mayor Nancy R. Rossi announced earli
er this month that she’d come across several large expenditures some of which appeared “improper” and “potentially fraudulent” when reviewing the city’s federal CARES Act expenditures.
Connecticut and its cities and towns have received several rounds of federal funding during the pandemic.
Towns will have received more than $2 billion in all, when the money is full disbursed.
The CARES Act money, approved by Congress in 2020, was intended to offset costs municipalities incurred because of the pandemic such as the purchase of personal protective equipment, cleaning of public buildings, and hazard and overtime pay for workers, but was not allowed to replace lost revenue.
In a statement Wednesday, Melissa McCaw, secretary of the state’s Office of Policy and Management, promised a thorough review of how municipalities have spent the federal funds.
“When we hear of potential misuse of any type of funds we are deeply disappointed and will take action to investigate,” McCaw said. “Consequently, OPM is already bringing in an independent auditor and will collaborate with the federal investigation to fully investigate these claims in West Haven and wherever else there are allegations.”
McCaw said OPM has ordered municipalities to report their federal relief spending to the state by Friday.
“They have been routinely cautioned that their use of funds must meet the highest standards and withstand audit,” she said.
State Sen. Cathy Osten, D-Sprague, co-chair of the legislative Appropriations Committee, said while she appreciates the concerns of her Republican colleagues, the federal dollars are already being audited at multiple levels of government.
“In this case, it’s clear they were paying attention because within just a few months they were able to identify a potential problem,” Osten said, referring to the allegations in West Haven.
The West Haven case is not indicative of widespread misuse or fraudulent activity by towns and cities, Joe DeLong, executive director and CEO of the Connecticut Conference of Municipalities, said after the arrest.
“In fact, much like what happened in West Haven, if someone does something improper, it’s going to be found and come out,” he said. “The reporting of these funds is really pretty well defined and strict.”