NYC Audit Finds City Overpaid $11M on Migrant Contract

HI INDIA NEWS DESK
NEW YORK, NY- A new city comptroller audit reveals that New York City may have overpaid for services provided by DocGo during the migrant crisis. Comptroller Brad Lander asserts that approximately $11 million of the $13.8 million paid to DocGo should be recouped, as 80% of the payments for the first two months of the contract in May and June 2023 were deemed unnecessary.

DocGo was awarded a $432 million no-bid contract by Mayor Eric Adams to assist migrants, which included providing hotel rooms and meals. The audit found that 10,000 hotel rooms in New York City and Upstate New York, paid for by the city, were never used. Notably, 3,500 rooms at the Crowne Plaza JFK Hotel resulted in a $570,000 bill, and $833,000 was spent on 4,902 unused rooms at the Armoni Inn.

The city’s Department of Housing Preservation & Development (HPD), responsible for overseeing the contract, failed to hold DocGo accountable to contract terms. The audit also uncovered a $2 million overpayment, inadequate facilities, and overspending on meals. The audit recommends the city recover the overpayments and improve contract oversight.