NYC Comptroller responds after Probation Department purchases ,000 SUV for commissioner.

The New York City Comptroller’s office has mandated that the Department of Probation seek prior approval for specific contracts following allegations that the department circumvented city procurement regulations to acquire a taxpayer-funded luxury vehicle for Commissioner Juanita Holmes. In 2023, the department procured a new Ford Expedition Platinum, priced at ,000, which allegedly bypassed city rules designed to ensure that vehicle purchases benefiting minority- and women-owned businesses are processed through the Department of Citywide Administrative Services (DCAS).

The mayor’s office has endorsed the purchase, with the Probation Department asserting it acted within the law. However, a letter dated June 25, from Comptroller Brad Lander’s office to Bridget Hamblin, the General Counsel for the Probation Department, revoked the agency’s ability to self-register contracts with minority and women-owned business enterprises (M/WBE). This letter explicitly titled “Revocation of Department of Probation Delegation to Self-Register M/WBE Small Purchases” outlined that the Probation Department’s recent vehicle procurement did not comply with mandated procurement regulations.

Charlotte Hamamgian, Deputy Comptroller for Contracts, emphasized that DCAS regulations prohibit the use of M/WBE small purchase methods for vehicle acquisitions below the threshold of .5 million. Only DCAS is authorized to oversee such vehicle procurements. Hamamgian stated that confidence in the department’s procurement capacity is vital to mitigate risks associated with corruption, fraud, and misuse of public funds.

Sources indicate that the DCAS had already provided Holmes with a new vehicle shortly after her appointment by Mayor Adams in March 2023. Furthermore, the Expedition was subsequently sent to a Long Island firm, Valley Van, for the installation of a lights and sirens package, valued at approximately ,000.

Under Holmes’ leadership, it has been revealed that a significant percentage—77%—of the Probation Department’s M/WBE contracts have been registered late. One such instance involved hiring Narrow Security for a .4 million contract for armed guard services, which commenced before the formal approval process was completed.

Probation spokeswoman Regina Graham contested the interpretation of the Comptroller’s actions, asserting that the office only limited the agency’s rights concerning contracts below .5 million. Graham insisted that the department adheres to all procurement laws and that the commissioner had no involvement in the Expedition’s purchase.

An email from a top aide to Holmes indicated that efforts were made to secure the vehicle based on recommended dealers. The inquiry into the luxury SUV purchase gained traction following a report by a local news outlet highlighting additional expenditures related to the vehicle.

Holmes’ tenure has not been without controversy, marked by challenges including high turnover within the department and ongoing scrutiny of her leadership practices. The department’s procurement issues underline ongoing tensions regarding accountability and transparency in city government operations.

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