Mayor Adrian Fenty started his Wednesday with a police department photo-op, but by the afternoon he was fielding questions about what authorities called the largest rip-off in city history while attempting to keep public confidence in his government.
The pilfering of roughly $16 million by higher-ups in the Office of Tax and Revenue, if proven true, is “one of the most serious breaches of the trust of the public,” Fenty said during a news conference with federal authorities. And with quick prosecution and punishment, he said, the District will “send a very strong signal to the residents of the District of Columbia that any alleged corruption will not be tolerated.”
“These are extremely serious allegations, so it is important for me to be here to say we support the direction that the U.S. Attorney’s Office is heading,” Fenty said.
Fenty learned of the fraud charges during a 6 a.m. phone call from Chief Financial Officer Natwar Gandhi, who runs the tax office, which is an independent agency. The thievery, which started in 2004 or earlier, occurred under the CFO’s watch. But Fenty was quick to say that Gandhi has his full faith and confidence.
The CFO, who earns $279,000 a year, was one of the first people Fenty sought for his administration.
“We continue to think and know that was the right decision,” the mayor said.
Fenty was willing to step aside and let the various investigations of the theft take their course, though “anytime a situation like this happens, the public must know it’s being taken extremely seriously,” he said.
“You can say ‘independent CFO,’ but the bottom line is for most citizens, it’s the District government,” said Dorothy Brizill, a leading D.C. government watchdog.
Gandhi, who took full responsibility for the “management failure,” asked most of his leadership to resign.
“Clearly there weren’t the controls in place, but then that’s why Dr. Gandhi has asked for resignations,” D.C. Council Member Phil Mendelson said.
Ward 2 Council Member Jack Evans, chairman of the finance and revenue committee, said he and Council Chairman Vincent Gray will hold oversight hearings.
