Democrat Mayor Makes $154 Million Vanish
San Diego Mayor Todd Gloria is currently under scrutiny following a recent audit by City Auditor Andy Hanau, which uncovered significant issues with how Gloria’s administration has handled city contracts and financial transactions. The audit, published in late July, reveals that Gloria, a Democrat, made substantial changes to city contracts without the required approvals from the San Diego City Council, raising serious concerns about financial oversight and procedural integrity.
According to Hanau’s 50-page report, Gloria’s administration altered approximately 42% of city contracts, totaling around $154 million, without the necessary council authorization. One notable instance involved a contract originally approved by the council for $14 million in equipment rentals. Gloria’s administration subsequently amended this contract twice, ultimately increasing its value by nearly $7 million, bypassing council oversight.
Another example highlighted in the audit involves a three-year, $1.6 million contract for water treatment and supply equipment from 2017. Three years later, the contract was increased to $3 million without any formal approval from the city council. The audit points out that while there may be a legitimate need for some flexibility in contract management, the lack of proper documentation makes it impossible to determine whether these changes adhered to legal requirements.
The audit also identifies a broader issue within the Gloria administration regarding contract management and adherence to city rules. Hanau’s report indicates that the city’s contract administration processes are poorly defined, leading to inconsistent interpretations of approval requirements. This has resulted in frequent violations of established procedures and a lack of clear guidelines for handling contract alterations.
In response to these findings, Hanau has proposed 13 recommendations aimed at improving transparency and compliance. These include updating the municipal code to clarify approval processes and establishing a formalized system for managing contract documentation. Despite previous recommendations over the years addressing similar issues, many of the suggested reforms remain unimplemented, perpetuating the problems identified in the audit.
As Gloria continues his tenure as mayor, these revelations underscore the need for more rigorous oversight and adherence to established procedures to ensure responsible governance and fiscal accountability in San Diego.
