Los Angeles shelled out nearly $461,000 for two in-ground aerial vehicle lifts that never showed up, according to a City Controller report that reads like a how-not-to manual for public purchasing. Staff not only recorded the pricey equipment as delivered, but they also okayed an advance payment that investigators say violated the city’s own procurement rules.
The Controller’s fraud, waste, and abuse unit opened an investigation after a hotline tip and concluded the city paid $460,972 for vehicle-repair equipment that never arrived, Los Angeles Daily News reports. The vendor was identified as Makai Solutions, and General Services Department staff marked the lifts as received in the city’s financial system despite the lack of delivery.
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