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STATEMENT OF CHAIRMAN VINCENT C. GRAY
AT THE JOINT PUBLIC OVERSIGHT ROUNDTABLE BY THE COMMITTEE OF THE WHOLE AND COMMITTEE ON FINANCE AND REVENUE ON "THE OPERATIONS OF THE OFFICE OF TAX AND REVENUE" THURSDAY, NOVEMBER 15, 2007,1:00 P.M.
JOHN A. WILSON BUILDING, COUNCIL CHAMBER I AM CALLING TO ORDER A JOINT PUBLIC OVERSIGHT ROUNDTABLE BY THE COMMITTEE OF THE WHOLE AND COMMITTEE ON FINANCE AND REVENUE ON "THE OPERATIONS OF THE OFFICE OF TAX AND REVENUE". I AM COUNCIL CHAIRMAN VINCENT C. GRAY. TODAY IS THURSDAY, NOVEMBER 15, 2007, THE TIME IS ___, AND WE 'ARE LOCATED IN THE COUNCIL CHAMBER OF THE JOHN A. WILSON BUILDING, 1350 PENNSYLVANIA AVENUE, NW. I WOULD LIKE TO ACKNOWLEDGE THAT WE HAVE BEEN JOINED BY COUNCILMEMBERS _____. I WOULD LIKE TO QUICKLY REVIEW THE PROCEDURE FOR TODAY'S HEARING. EACH COUNCILMEMBER WILL HAVE THREE MINUTES TO MAKE AN OPENING STATEMENT. PUBLIC WITNESSES WILL THEN HAVE THREE MINUTES EACH TO PROVIDE TESTIMONY. FOLLOWING THEIR TESTIMONY, COUNCILMEMBERS WILL HAVE ONE ROUND OF FIVE MINUTES TO ASK QUESTIONS. WE WILL THEN HEAR TESTIMONY FROM DR. NAT WAR M. GANDHI, CHIEF FINANCIAL OFFICER, DEBORAH NICHOLS, ; D.C. AUDITOR, AND SHERYL HOBBS NEWMAN. COUNCILMEMBERS WILL THEN HAVE TWO-THREE ROUNDS OF 10 MINUTES EACH TO ASK QUESTIONS TO THIS PANEL. THE PURPOSE OF TODAY'S HEARING IS TO BEGIN THE COUNCIL'S INVESTIGATION INTO THE MANAGEMENT, PROCEDURES, CONTROL SYSTEMS AND STRUCTURES WITHIN THE OFFICE OF TAX AND REVENUE OF THE OFFICE OF CHIEF FINANCIAL OFFICER THAT PERMITTED MILLIONS OF DOLLARS OF DISTRICT TAX FUNDS TO BE STOLEN, AND TO DETERMINE THE STEPS NECESSARY TO PREVENT A RECURRENCE OF THESE ILLICIT ACTIVITIES. THE REVELATION THAT THIS HORRIFIC ACT HAS OCCURRED OVER A PROTRACTED PERIOD HAS BESMIRCHED THE REPUTATION OF THE DISTRICT GOVERNMENT, THE OFFICE OF THE CHIEF FINANCIAL OFFICER AND A NUMBER OF MANAGERS INVOLVED WITH THE OFFICE OF TAX AND REVENUE, THE LOCUS OF THIS STUNNING THEFT. MORE SPECIFICALLY, THE OBJECTIVES OF OUR WORK ARE:
IN ORDER TO SUPPORT THE COUNCIL'S OVERSIGHT EFFORTS, ON. TUESDAY, NOVEMBER 20' A RESOLUTION WILL BE PRESENTED TO THE COUNCIL REQUESTING AUTHORITY TO ESTABLISH A SPECIAL COMMITTEE TO OVERSEE THIS CONTINUING INVESTIGATION AND TO ENGAGE OUTSIDE COUNSEL AND A FINANCIAL AUDITING FIRM TO FACILITATE AND EXPEDITE THE COUNCIL'S WORK. I WANT TO REEMPHASIZE THAT THIS IS THE BEGINNING OF THE COUNCIL'S INQUIRY INTO THE FACTS SURROUNDING THIS SITUATION, UTLIMATELY CULMINATING IN A REPORT OF FINDINGS AND RECOMMENDATIONS ON EACH OF THE STATED OBJECTIVES. THE COUNCIL RECOGNIZES AND APPRECIATES THAT THERE IS AN ONGOING CRIMINAL INVESTIGATION AND THAT THE CHIEF FINANCIAL OFFICER HIMSELF IS TAKING AGGRESSIVE STEPS TO UNCOVER HOW THIS SITUATION OCCURRED. BUT THESE IMPORTANT AND NECESSARY ACTIONS ARE NOT A SUBSTITUTE FOR THE ROLE OF THE CITY'S LEGISLATIVE BODY. OVER THE PAST DECADE, THIS CITY HAS WORKED HARD TO RESTORE CONFIDENCE IN OUR FINANCIAL STABILITY AND VITALITY. WE HAVE ESTABLISHED A STRONG FUND BALANCE UNMATCHED BY VIRTUALLY ANY MUNICIPALITY, EARNED A SOLID REPUTATION ON WALL STREET AND HAVE BEEN LAUDED WIDELY FOR A SEEMINGLY MIRACULOUS FINANCIAL RECOVERY. NOW THIS! I AM INFURIATED THAT THIEVES AND CROOKS FOUND IT POSSIBLE TO RAID THE DISTRICIT'S TREASURY TO THE TUNE OF TENS OP MILLIONS OF DOLLARS, LAVISH THEMSELVES FROM THESE ILL-GOTTEN RESOURCES AND WILLFULLY FLOUT THE LAW WITH SEEMING IMPUNITY. IT IS AN OUTRAGE THAT THIS WAS PERMITTED TO: GO UNDETECTED FOR SO LONG. I AM FERVENTLY COMMITTED TO SEEING THAT THE PERPETRATORS ARE PROSECUTED TO THE FULLEST EXTENT OF THE LAW. BUT I AM EQUALLY COMMITTED TO UNCOVERING THE WEAKNESSES IN -OUR SYSTEMS WHICH ALLOWED THIS TO OCCUR AND TO FIX THEM SO THAT CITIZENS AND RESIDENTS OF THIS CITY FEEL COMFORTABLE THAT THEIR TAX DOLLARS ARE PROTECTED AND THAT INTEGRITY IN GOVERNMENT IS A REALITY NOT JUST AN ILLUSORY GOAL. I WILL NOW TURN TO THE CO-CHAIR FOR THIS HEARING, COUNCILMEMBER JACK EVANS, WHO SERVES AS CHAIR OF THE COMMITTEE ON FINANCE AND REVENUE, FOR OPENING REMARKS. |
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