D.C. Inspector General Charles Willoughby should be fired. He has demonstrated little interest in aggressively ferreting out waste, fraud and abuse. His recently completed report into the shenanigans and incompetence surrounding the city’s awarding of its lottery contract and the D.C. Council’s passage of the law permitting online gambling, suggests he has difficulty discerning questionable behaviors. Willoughby concluded in his report there was “insufficient evidence” that any council member “acted improperly or violated the standards of conduct.”
The report’s facts defy that statement: Chief Financial Officer Natwar Gandhi recommended in 2009 — and the council approved — awarding a multimillion dollar, multiyear contract to Intralot, a Greek-based gaming corporation. Intralot lacked a local minority partner, as required by law, and its business license had been revoked; The license wasn’t reinstated until November 2011.
Further, Gandhi amended — without council approval — the Intralot contract to include Internet gambling, “materially” altering the substance and value of the agreement, according to the IG. (CFO spokeswoman Natalie Wilson insisted, however, their “procurement process was completely transparent and adhered to all District procurement laws.”)
The IG said the city failed to certify a legitimate local joint business venture that had sought the lottery contract. But Veteran Services Corporation, which “was not a local business enterprise,” was certified and eventually became a partner with Intralot.
At-large Councilman Michael Brown introduced Internet gambling legislation in 2010 — although the law firm where he worked had gaming clients, including GTECH Inc. which was doing business with the city. Brown deliberately didn’t disclose those relationships when he and then-Chairman Vincent Gray, without any public hearing, put Internet gaming into the 2011 Budget Support Act. (Brown told me only: “The report speaks for itself.”)
Meanwhile, the inspector general’s report claims that City councilman Jim Graham, Ward-1, told a contractor he might support his lottery proposal if the businessman withdrew his bid on a Metro project. Graham couldn’t be reached on Tuesday to comment on the report.
Let’s recap: Gandhi appears to have violated procurement laws; Brown knowingly flouted conflict of interest laws; and Graham apparently strong-armed a business owner, all according to Willoughby’s report.
Still, for whatever reason, Willoughby concluded no one did anything wrong.
“He ought to be fired,” said one business leader. “The whole District government is so corrupt, it makes Louisiana look mild.”
“At this point, absent a federal review, I’m uncertain this mess will ever be resolved,” said Eric Payne, the CFO procurement manager fired by Gandhi after he asked the IG to investigate the contracting process. Payne is suing the District.
Willoughby didn’t mention Payne’s request, however; he only noted those in 2010 from then-Attorney General Peter Nickles and then-Procurement Chief David Gragan. Sources told me, the IG was preparing a memorandum to the AG asserting “no improprieties” in the process, when he received Councilman Jack Evans’ Sept. 6, 2011 letter demanding an investigation.
Evans has scheduled for Thursday a hearing on Internet gaming. The IG’s report offers support for those, like Ward 6 Councilman Tommy Wells, intent on repealing that law.
More tragically, however, it underscores the perception the District government and its leaders remain seriously challenged ethically.
Jonetta Rose Barras’s column appears on Monday and Wednesday. She can be reached at [email protected].
