CD2 Policy

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Motion Calls for Greater Scrutiny of DWP Investigation

In late October, the L.A. Times reported that:

Criminal charges were filed Thursday against two employees of the Department of Water and Power, accusing them of setting up a scheme to defraud the utility using the agency’s corporate credit cards.

The two men are accused of using about a dozen DWP “P-cards,” or purchasing cards, to buy at least $3 million in products on the utility’s behalf between July 2003 and December 2009. They allegedly bought goods at an inflated price and pocketed the difference

Less than a week later, the L.A. City Council sought to ensure the ensuring DWP investigation does not fall into the black hole of bureaucracy. On Wednesday, Nov. 3, 2010, the council introduced a motion that calls on the DWP to report back to city officials on the status of its investigation. The motion was seconded by Councilmember Paul Krekorian and brought forward by Councilmembers Bernard Parks and Jan Perry.

The motion will next be heard in the Energy and Environment Committee before it makes its way back to the council for a vote. Read a scanned copy of the original motion below the jump.


November 4, 2010 - Posted by | council motion | , , , , , , ,

1 Comment »

  1. Jeremy,

    Are there any other departments that use P-Cards? Is there a way to proactively scan for this type of fraudulent behavior?

    For instance, who set up the pay center for the dummy companies? Shouldn’t that action be independent of the requestors, and the requestors should never be allowed to receive payment directly?

    So, if this isn’t a policy that is already established, in theory, it could be happening anywhere within the City’s purview…could this happen at the airport? The port? Within any of the offices reporting in to the Councilmembers or Mayor?

    Is this something that the Controller’s department should already have been auditing?

    Comment by Sandy | November 4, 2010 | Reply

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