In one of the largest public corruption roundups in Justice Department history, about 70 people, including NYCHA workers and contractors, were arrested for alleged kickback schemes involving construction, maintenance, and no-bid contracts at NYCHA facilities in New York City. The investigation, spanning over a year, resulted in the arrest of 55 current NYCHA employees and more than a dozen former employees who allegedly demanded bribes totaling over $2 million in exchange for contracts worth more than $13 million. The bribes, which involved small jobs like plumbing, were allegedly demanded before work could begin.
The corruption scandal, which involved almost 100 NYCHA developments across the city, has prompted calls for significant reforms to the public housing authority’s contracting process. U.S. Attorney Damian Williams emphasized the need for contractors to report any wrongdoing by NYCHA employees and urged them to refrain from engaging in bribery schemes.
NYCHA Chief Executive Officer Lisa Bova-Hiatt condemned the accused individuals for betraying the public trust and emphasized NYCHA’s zero-tolerance policy for illegal activities. Housing and Urban Development Inspector General Rae Oliver Davis expressed concern that the alleged pay-to-play schemes waste public funds and jeopardize residents’ living conditions.
The investigation’s revelations have raised concerns among NYCHA residents, with some questioning whether repairs were delayed due to the alleged corruption. The scandal highlights the need for greater oversight and reforms within NYCHA to ensure integrity and prevent future instances of misconduct.
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