LA city controller subpoenas LA28, demanding financial documents

In a rare move, Los Angeles City Controller Kenneth Mejia on Friday said his office issued a subpoena to Olympics organizing committee LA28, demanding it hand over documents detailing its finances, contracts and budgets for venue construction projects.

The action comes after LA28 failed to include a detailed list of its contracts in its recent budget report to the city, despite a contract requiring their disclosure.

The Games Agreement between the city and LA28 requires the committee to submit the name, type, amount, term and purpose of each contract it has entered into worth more than $1 million. It also requires the organizing committee to give updates on venue improvements, including schedules and budgets.

The controller issued a request for those details in a letter to LA28 in August, but said he turned to legal action because the organization still hasn’t satisfied its obligations. The city of Los Angeles is the financial backstop for the Games, and will be on the hook for cost overruns if LA28 doesn’t turn a profit.

“The Controller’s Office completed a review of all LA28 documents within the City’s possession and determined that the financial documents requested are either incomplete or wholly absent,” Mejia’s office wrote in a news release issued Friday.

The controller's office told LAist Friday that it worked with the city attorney on the LA28 subpoena and that it "has the full support and backing of the City Attorney’s office."

In a statement to LAist, LA28 said it has not received or reviewed the subpoena and is not in a position to respond.

“We remain focused on delivering a safe, fiscally responsible, and successful 2028 Olympic and Paralympic Games for Los Angeles. At a moment when every day counts, we are disappointed to see the City pulling away time, resources, and attention from the work that matters most: making sure Los Angeles is fully ready to harness this once-in-a-generation opportunity for our communities, our economy, and the people who call this city home,” the statement said.

There is precedent for city controllers issuing subpoenas, but they’re not common.

Former City Controller Ron Galperin told LAist that he only issued a subpoena while he was in office one time.

“It’s a power that controllers don’t necessarily exercise a lot, but when it’s the right time, it’s an important tool,” he said.

City officials have seen some of the documents Mejia is demanding, but only in passing. Sharon Tso, Chief Legislative Analyst and a top Games negotiator for the city, told a city council committee last month that she had seen a list of LA28's contracts in a meeting, but that the city didn't have hard copies due to concerns that public disclosure could harm negotiations sponsor deals.

After city councilmembers demanded to see the contracts, Tso and City Administrative Officer Matt Szabo requested LA28 submit its contracts. Tso told LAist in an email Friday that they were still waiting on LA28's response.

LAist has reached out to the mayor’s office for comment.