By Bob Hennelly

On this episode of the Stuck Nation Labor Radio Hour, we dedicate our entire show to a blockbuster report from the New York City Department of Investigation finding serious problems the with non-profit contractors overseeing the city’s homeless crisis. The $4 billion nonprofit sector is tasked with providing shelter for 86,000 people every night. 

DOI Commissioner Jocelyn E. Stauber lays out problematic self-dealing with some non-profits in the sector paying CEOs as much as $700,000 a year. That’s in a sector where the full-time workforce often has to rely on food stamps just to get by.

Since 2018, DOI probes have resulted in the arrests of 25 people on charges involving fraud and corruption at these city-funded nonprofits—including prosecutions related to homeless service providers. In its latest report, DOI identified cases where insiders at shelter providers had personal business interests involving the shelter through which they received payments beyond their regular compensation. Nepotism, too, was flagged as an all too common problem despite city prohibitions. Stauber notes that city law not only protects civil service whistleblowers, but also employees of non-profit contractors who come forward and notify her agency about instances of  self-dealing and fraud. 

Manhattan City Council Member Gale Brewer, chair of the Oversight and Investigations Committee, also talks about what can be done to make sure  taxpayer dollars actually go to house and help the homeless—and not line the pockets of some politically connected grifters. Brewer further suggests gaps in civil service staffing is hampering critical oversight of the social service contracts the city has become so reliant upon. The veteran lawmaker also offers a candid assessment of Mayor Eric Adams’ criminal indictment and its impact on the day-to-day operations of city government.

Listen to the entire show below:

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