An audit of NYC’s $432 million contract with DocGo has revealed major financial mismanagement, leaving taxpayers on the hook for millions.
Fact-based Audit Not Politically Motivated
The Comptroller’s office claims that the audit of the $432 million contract with DocGo was purely based on financial oversight, not political ambition, despite Brad Lander’s recent announcement to run for mayor.
Lots of Loopholes Uncovered
The audit revealed major loopholes. 80% of DocGo’s payments, amounting to $11 million, were not documented, leading to massive overpayments for services never rendered.
Lack of Sufficient Oversight
The Comptroller called out the city’s decision to contract DocGo, despite the company’s lack of experience in emergency housing, as a serious mistake, wasting millions of dollars.
Evidence of Undocumented Payments
DocGo overpaid security subcontractors by $2 million, of which $583,274 was in profit for unauthorized security services.
Unanswered Questions Linger
Despite the audit, questions remain about why the Adams administration moved forward with the contract, ignoring the Comptroller’s concerns about DocGo’s qualifications.
Expect More Audits
However, with Brad Lander now in the mayoral race, New Yorkers can likely expect more audits on how the Adams administration handled contracts, especially those related to the migrant crisis.
Preparations for Projected Influx a Ready Excuse
Mayor Adams defended the need to have hotel rooms prepared for an expected influx of migrants, mentioning instances where the city received up to 4,000 asylum seekers in a single week.
Decisions Were Made Compassionately
The Department of Housing Preservation & Development (HPD) justified its quick decisions during the migrant crisis, claiming it acted compassionately and prioritized human safety over standard procedures.
The Centre of a Migrant Crisis
As of 2024, about 65,000 migrants are being housed in New York City shelters, putting a huge strain on the city’s resources and infrastructure.
Unchecked Immigration, a Burden on Social Amenities
This surge in migrants has also placed major pressure on New York City’s social amenities, with the city spending over $4 billion on migrant services in the past two years alone.
Misuse of Funds for Unoccupied Hotel Rooms
Under the contract, DocGo secured hotel rooms flatly, leading to $1.7 million in payments for vacant rooms. Of this, $408,680 was collected as commissions by DocGo, which was paid for nearly 10,000 unused hotel room nights.
Health and Safety Standards Ignored
The audit revealed that 80% of hotel rooms inspected had at least one problem, with a few posing serious health hazards. Issues included a lack of microwaves and refrigerators, mold, water damage, and pest infestations, with Comptroller Lander calling these findings “cruelty” toward asylum seekers.
Council Members Demand Better Contract Oversight
Council members criticized the Adams Administration for squandering millions on DocGo, calling for stronger contract oversight. “This report is damning,” said Council Member Alexa Avilés.
Mayor Adams Under Pressure
Mayor Adams is now facing increasing pressure as the audit’s findings put his administration’s crisis management under the spotlight. His defense of the spending decisions has done little to reduce the call-outs.
Understaffing of CaseWorkers
DocGo understaffed caseworkers by 1,670 hours and supervisors by 4,693 hours across various hotels. This denied asylum seekers the services they needed to gain self-sufficiency and stable housing.
Subcontractor Mismanagement at DocGo
DocGo also failed to submit proper approval forms for 29 of 41 subcontractors, including a $42 million contract with Platinum Community Care. “DocGo grossly mishandled over $400 million in taxpayer dollars,” said Council Member Shahana Hanif.
Poor Communication and Essential Services for Asylum Seekers
80% of survey respondents reported poor communication with DocGo staff regarding important next steps, such as work authorization, housing, and school enrollment.
DocGo Contract Criticised for Lack of Transparency
The audit revealed a severe lack of transparency in the DocGo contract, with 67% of claimed expenses going to unauthorized subcontractors and only 29% of vendors being properly reviewed.
HPD Under Fire for Contract Oversight Failures
HPD is also criticized for failing to enforce contract terms with DocGo, allowing millions of dollars in unsupported payments to slip through the cracks.
Recommendations for Accountability
The auditors recommended that HPD get back $4.7 million in unallowable expenses, get documentation for over $6.3 million in costs that were not claimed properly, and conduct a proper review of all invoices to ensure they align with contract terms.
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