D.C. Council’s formal investigation into the largest corruption scandal incity government history will focus on the current case of unprecedented fraud in the tax office, the council chairman said, and the panel might call on former Mayor Anthony Williams to testify.
“There’s some pretty fundamental deficiencies here that have got to be addressed that a criminal investigation would never address,” Council Chairman Vincent Gray told The Examiner on Wednesday. “If we start this off with such a wide scope to take on the entire city, we may get nothing done at the end of the day.”
Harriette Walters and Diane Gustus, tax office employees under arrest for allegedly stealing more than $20 million from the D.C. treasury, are accused of manipulating the property tax refund process for nearly a decade without anyone in the government noticing.
The D.C. Public Schools, Medicaid reimbursements, contracting and procurement and federal grants have been the frequent targets of damning city and federal audits. But the special committee of the council will specifically target lapses and deficiencies in the Office of Tax and Revenue and the Office of the Chief Financial Officer.
Gray said anyone who might have useful information could be called to testify, including Williams, who was in office during several years when the alleged thefts occurred.
“I have no problem calling the former Mayor [Williams],” Gray said. “I have no problems calling anybody. I think anybody who has something to offer both from an informational perspective and maybe to some of the solutions — the door’s wide open as far as I’m concerned. And we have subpoena power also for those who may be reluctant to come.”
Williams could not be reached for comment Wednesday.
Through the investigation, council members intend to learn how the fraud happened, how existing internal controls failed and what the city can do to ensure it doesn’t happen again. A $250,000 budget will provide for a yet-unnamed outside legal team to further the inquiry.
The council’s support for CFO Natwar Gandhi has waned in recent days. Gandhi has said he will step down only when he loses the backing of Mayor Adrian Fenty and a consensus of the council.
Only Council member Kwame Brown has called for him to step down.
“I’m saying now it is time to make a change top down,” Brown said Wednesday. “The city needs to move on.”
