A federal audit of the Hardest Hit Fund demolition program finds more oversight is needed to eliminate the potential for fraud.
The U.S. Department of Treasury has allocated $622 million dollars to fight blight across the country, of which, Michigan, including Detroit, has received more than $188 million.
An audit by the Special Inspector General Troubled Asset Relief Program, or SIGTARP, found the program lacks federal requirements for open competition for blight contracts, which opens up the potential for waste, fraud and abuse.
Click on the video player to watch Ronnie Dahl’s full report.
Executive Director of the Detroit Land Bank Authority Carrie Lewand-Monroe issued the following statement about the audit:
The SIGTARP report is a review of the U.S. Treasury’s federal demolition program operating nationwide with 280 local partners. There was no specific criticism of the State of Michigan’s or Detroit’s demolition programs. All demolitions in Detroit are competitively bid and the results are posted online and updated daily at detroitmi.gov/demolition.
You can read the full audit below: