New Orleans Sewerage and Water Board former employees fixed bills for family, themselves, documents show
millions in unpaid Sewerage and Water Board bills and records show former employees were fixing bills
millions in unpaid Sewerage and Water Board bills and records show former employees were fixing bills
millions in unpaid Sewerage and Water Board bills and records show former employees were fixing bills
With millions of dollars in the red, an investigation is underway to see if some people are getting around high, unpaid, Sewerage and Water Board bills in the city of New Orleans.
According to Sewerage and Water Board data WDSU Investigates obtained, more than $133 million is owed in unpaid dues. It's a problem some city leaders say is a result of incorrect bills and possible wrongdoings by employees.
"It's been an issue since the moment we've stepped into office," said Joe Giarrusso, New Orleans City Council member. "It's been one that's been pervasive for the last six years."
It is an issue Giarrusso says needs to be a top priority.
"Until you get the billing fixed, we can't talk about anything else," Giarrusso said.
WDSU Investigates dug into Sewerage and Water board data. It shows since 2019, the unpaid bills have added up by more than $107 million.
That's not even counting overdue bills within the last two months.
The inspector general and his investigators are now digging into it.
At a city council budget hearing, Inspector General Ed Michel said his office was looking into some of the problems.
"Some of these individuals that are not paying their water bills are Sewage and Water Board employees themselves and while we can't talk about aspects of an ongoing investigation there are different things that is very telling," Michel said. "It's something that has to be corrected and yes it's some internal matters that they're doing."
WDSU Investigates requested to see how many Sewerage and Water Board employees still owe.
The department said it could not provide that information on an individual basis.
They did provide the policy for the department for employees which states: “Employees of the Sewerage and Water Board are not allowed to originate, process or approve any transactions for their own personal accounts, relatives accounts or another employee's account.
"Apparently there looks like there may be issues with inside dealing with fixing bills for people," Giarrusso said. "That really shouldn't be, which of course if this is the case it is going to inflame the public as it absolutely should."
WDSU Investigates found there have been a handful of employees who have been investigated by the board for doing just that.
According to investigation records obtained from Sewerage and Water Board, an employee of several years was found inappropriately adjusting and voiding bills for her service account, her husband service account, and her mother's service account resulting in transactions for services worth over $6300 that were mishandled. According to the records, that employee resigned.
In response to the employee violations we found, Sewerage and Water Board sent us this statement:
"Consistent with our response to any allegation of wrongdoing, when we were alerted about some suspicious activity within our billing department, we immediately launched an investigation.
“Upon our investigation, we found two employees were tampering with accounts. We also collaborated with the Office of the Inspector General, and that office reached the same conclusion as our internal SWBNO investigation, emphasizing these were isolated incidents.
“Upon launching the investigation, the employees' access to the billing system were immediately revoked. As a result of our investigation, both employees were separated from the utility last year.
“Based on actual meter readings, the accounts were adjusted back to the correct amount due. Partial payments were made, and these accounts are subject to our collection procedures and full revenue recovery efforts are ongoing."
“Since the investigation the department has hired an "internal SWBNO Chief Audit Executive to add another layer of monitoring, tracking, and safeguarding against such activities."
“Stating that the chief audit executive will make additional recommendations to safeguard SWBNO's resources and ensure those recommendations are implemented across the utility—ultimately strengthening SWBNO's internal control environment.
“Adding ‘the Sewerage and Water Board of New Orleans is committed to transparency and accountability.’"
This isn't the first time the Inspector General has investigated the Sewerage and Water Board. Just two years ago, they reported more than two dozen employees using fake or unauthorized handicap tags to not have to pay city parking meters.
The OIG continues to make recommendations for parking and will make recommendations for billing issues within the department.