Health Department Forms Folder 0038, 2000-2001

NYC 9/11 Public Portal Document

O.C.R. Fax:2126693069 Sep 1 '00 9:59 P.03

DOH made its decision to award the contract to East Harlem Council in August of 1999 - one year ago. As early as September 1999, DOII became aware of a serious integrity issue involving a high ranking official of East Harlem Council. Yet, DOH waited 5 months, until January 18, 2000. to request the City's investigation department (DOI) review the matter and apprise the agency of its findings. On May 12, 2000, DOI advised DOH that "...the City would remain at risk in dealing with an organization whose official has such a bad track record." Three months after the DOI advisory, the contract was submitted to this Office for registration.

As a result of the concerns we raised regarding DOI's findings and its import with respect to this vendor's responsibility, DOI reviewed the matter again and has now reached a different conclusion. In an August 24, 2000 letter to the Comptroller's Special Counsel, DOI First Deputy Commissioner Alain M. Bourgeois advised that DOI was now sufficiently satisfied with the remedial steps taken by DOH to ensure that the official has no direct or indirect role in the administration or performance of this contract. Specifically, DOI concluded that:

• The official's conviction was for a misdemeanor offense unrelated to any city business;

The vendor has undertaken significant steps to isolate the official, by means of a multi-faceted "firewall," from any involvement in the performance of this contract. The vendor has committed that it will insure that the official has no operational oversight or control over the contract performance; that all reports with respect to all aspects of the contract will be reviewed , approved and signed by the Chair of the Board of Directors, and that the vendor has created a new position of Associate Director/General Counsel to independently review any and all documents regarding the contract, and that the official will have no contact with the city or DOH regarding this matter;

DOH has limited the term of the contract to one year. committed to the issuance of a new request for proposals for provision of contract services beyond that term, and undertook to engage the services of a financial auditor/monitor to review the vendor's performance.

In addition to the forgoing, we urge DOH to require that the official be prohibited from receiving, reviewing, presenting or in any other manner having access to or taking any action with respect to any and all aspects of this contract.

Furthermore, on August 24, 2000, we were contacted by the official's attorney, who advised us that as early as April 18, 2000, the City was provided with information that disclosed mitigating circumstances surrounding what appeared to be an isolated, aberrant act on the part of the employee. Despite our stated concerns about DOI's initial findings, you inexplicably chose to withhold this critical information from the

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