A lawsuit filed by the District against self-described billionaire Don Peebles over $1.2 million in alleged overbilling highlights the District’s systemic failure to track its bills.
The lawsuit filed by D.C. Attorney General Peter Nickles alleges Peebles’ property company, which leases property to the city, charged the District for donations made to the political campaigns and political action committees of three council members. It also says Peebles’ company billed the city for champagne and valet parking at a “fundraiser” held at Miami’s Bath Club, which Peebles owns. Those and other charges added up to $1.2 million between 2007 and 2009, the years an independent auditor examined after the city received a $3 million bill from Peebles in February, the lawsuit says. The audit found that the city paid $600,000 of the improper bills.
At-large Councilman Phil Mendelson told The Washington Examiner on Wednesday that the entire situation could have been avoided if the city kept better track of its bills.
“Anytime the city has a bill, it should be sent to an auditor to make sure its accurate. … It’s a systemic problem,” Mendelson said. “Now, in a high-profile dramatic way, we’re trying to get back what’s owed,” he said, noting that he’s not excusing Peebles if he did, in fact, overbill the city.
Peebles, who funded political organizations working to oust Mayor Adrian Fenty, did not return calls for comment. The lawsuit is seeking more than $3.6 million from him.
In September, a report from District auditor Deborah Nichols found that a technology company had overcharged the city by $3.1 million. The city forked over the cash, despite $2.5 million of those charges resulting from unsubstantiated invoices.
On the flip side, the city has also been accused of overcharging. Just last month, the Centers for Medicare and Medicaid informed the District that it owes the federal health care programs $58 million after overcharging them in fiscal years 2004 and 2005. The city says it plans to appeal.
“In a way,” Mendelson said, “this is like suing Peebles for our own negligence.”
