The New York City Housing Authority is swiftly responding to allegations of corruption, with CEO Lisa Bova-Hiatt on Wednesday announcing new measures to overhaul purchasing practices following the arrest of 70 current and former employees.
"One of the things that we're going to do is really take the control over approving these micro-purchases out of the same people who are actually asking for the micro-purchase to take place," Bova-Hiatt said during an appearance on “Mornings On 1.”
She noted that they will also be ensuring that those assigning contracts can only select from previously vetted contractors.
“We have, since 2021, built out a pre-qualified list of people and entities, businesses that have already been vetted, that [NYCHA complexes] will have to use on a rotating basis, so that the discretion is taken out of the supers and the assistant supers,” she said.
The changes come in the wake of Manhattan federal prosecutors charging 70 NYCHA employees with bribery and extortion on Tuesday as part of a long-term corruption investigation. Prosecutors alleged employees demanded more than $2 million in bribes from contractors in exchange for awarding contracts worth more than $13 million for work at numerous NYCHA buildings.
“Some people they move from development to development, so whatever they were doing at one development, a bad act was transferred to another development,” Bova-Hiatt said.
She said that while the activity had been ongoing for years, she is taking accountability for the behavior.
"I'm the CEO. The mayor does not need to take responsibility. I need to take responsibility," Bova-Hiatt said. "Change takes time. But I am dedicated to making sure that our 12,000 employees are not violating the public trust."