Balderas: $10 million in corrections contracts at risk

Hector Balderas

Former employees may have illegally steered Department of Corrections construction and maintenance contracts worth about $10 million to certain companies that were paid for work that may never have been done, State Auditor Hector Balderas says.

Balderas’ office announced earlier today that it is conducting a special audit of the situation. Balderas said his office received a tip about the situation through its fraud hotline, but the corrections department separately asked for his help and has been cooperating.

“I was very happy that they came forward to seek out my assistance,” Balderas said. “That’s not always the case in government.”

Balderas said he could not release many details about the situation, including which contracts, vendors, and former employees are being scrutinized.

Balderas said his agency will work to complete its audit as soon as possible. He will then provide the document to the corrections department, oversight agencies, and, if criminal activity is found, to law enforcement.

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