Q&A
Discussion of Sevco's related party transaction with its security company
1:29:26
ยท
57 sec
Council Member Julie Won brings up the case of Sevco, a shelter provider, and its related party transaction with a security company it wholly owns.
- Sevco, with approximately $35 million in city shelter contracts, subcontracted to a for-profit security company it owned
- This arrangement allowed Sevco's senior leadership to collect substantial payments through the for-profit company, funded by the nonprofit city contract
- Commissioner Park clarifies that DSS still has two contracts with Sevco, correcting her earlier statement
- Won expresses concern about the city continuing to do business with Sevco despite these issues
Julie Won
1:29:26
Could you also expand so in one instance, Sevco, which has roughly 35,000,000 in city shelter contracts, subcontract for a for profit security company that it wholly owns.
Molly Wasow Park
1:29:38
So just to clarify, we we're no longer doing business with Sevco.
1:29:41
And I actually I know they have, other contracts with the city.
1:29:45
I don't believe we ever, hit anything close to they were relatively small shelter provider, but I can I can double check the numbers?
1:29:52
Yes.
1:29:53
The reason we're
Julie Won
1:29:54
Just to finish, this allowed the senior leadership at Sevco, who also serve as a director and deputy director of the security company, to collect 100 and 1,000 of dollars in payments for the for profit funded through the nonprofit city contract.
1:30:07
So can you help us understand, especially for MOX?
1:30:09
Because even if DHS no longer does business with SEPCO, it seems that they're still doing business with the city.
1:30:15
So what can MOX do to ensure that vendors like SEPCO are engaging in a competitive bidding process and not just giving business to their own companies owned by their own leadership?