NYC Comptroller Audit Finds City Overpaid $11M On Migrant Contract

NEW YORK CITY — A new city comptroller audit claims that the city may have overpaid for a firm's services during the midst of the migrant crisis.

Comptroller Brad Lander in the audit says about $11 million paid to DocGo by the Adams administration should be recouped.

Eighty percent of the $13.8 million payment shouldn't have been paid for the first two months of the firm’s contract in May and June 2023, Lander argues.

DocGo was awarded a $432 million no-bid contract by Mayor Eric Adams to help migrants in the city last year.

The audit reviewed payments used to provide hotel rooms, food and other services to migrants.

10,000 hotel rooms in New York City and Upstate New York that the city paid for were never used, according to the audit. 3,500 unused rooms at the Crowne Plaza JFK Hotel reserved for ten days racked up a $570,000 bill in June 2023.

According to the audit, $833,000 was spent for 4,902 unused rooms at the Armoni Inn in Upstate Orangeburg for 61 nights in May and June 2023.

The city Department of Housing Preservation & Development (HPD) was tasked with overseeing the contract and services provided by DocGo.

According to the audit, HPD did not hold DocGo to contract terms and conditions and did not require DocGo to provide appropriate documentation.

The audit also found a $2 million overpayment by DocGo used for security subcontractors, 80 percent of the 189 hotel rooms paid for had no microwaves and refrigerators and some had roaches, bed bugs and rats.

Also, DocGo overspent thousands on meals for migrants in hotels, among others charges.