Thursday, July 7, 2022

Ex-Mayor Bill de Blasio cooked books to hide $224M in NYC Ferry outlays: audit

Bottom Line

  • Comptroller Lander found that de Blasio wasted $66 million on ferry operating costs due to bad decisions by his hand-picked officials in charge of the city's Economic Development Corp
  • The EDC reported spending $534 million to operate the ferries during the six and a half years that ended on Dec. 31, but auditors uncovered a total of at least $758.5 million in ferry related expenditures

The actual subsidy per ride has actually been near twice that amount

  • ranging from a low of $11.44 in fiscal 2019 to a high of $14.57 during fiscal 2020, when ridership plunged amid COVID-19-related lockdowns.
  • During fiscal 2021, the taxpayer subsidy was $12.88 per ride.

Lander's recommendations include seeking the recovery of what he called about $12 million in "overpayments" to San Francisco-based Hornblower Cruises, which has been paid nearly $830 million since 2015 and has a contract to operate the ferry system through September 2023.

  • In a response to the audit’s findings, the EDC said it wouldn’t seek any refunds from Hornclower because all the money the company got paid was "in accordance with" its contract.
  • EDC executive vice president and chief financial officer Fred D’Ascoli also said that under de Blasio, the nonprofit corporation was charged with implementing a massive and complex ferry system in less than three years despite being told by experts that a system of this scale would be impossible to deliver in this timeframe.

 

https://nypost.com/2022/07/06/ex-mayor-bill-de-blasio-cooked-books-to-hide-224m-in-nyc-ferry-outlays/ 

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