DWP Purchasing Cards To Be Audited After Fraud Discovery
LOS ANGELES (CBS) — The city controller will audit the Department of Water and Power's use of purchasing cards after two city employees were charged with using them to divert $3 million into their own pockets.
By request of DWP Chief Operating Officer Raman Raj, City Controller Wendy Greuel will conduct an "evaluation of the process and internal controls over the DWP's Purchasing Card program.
"Purchasing Card (P-Card) programs are used by agencies to promote an efficient, cost-effective method of purchasing small dollar items; however, operational efficiencies must be balanced with ensuring that necessary control procedures are in place to guard against misuse and fraud," Greuel said.
DWP plumbing supervisor Anthony Mark Carone pleaded not guilty last month to charges and he -- along with DWP fire protection engineer Akbar Fonooni and Troy Mitchell Holt -- were involved in a plot to divert public funds.
The three are each accused of one count of conflict of interest and misappropriation of public funds and two counts of conspiracy to commit a crime.
The criminal complaint alleges that the crimes occurred between July 2003 and December 2009.
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