Audit of COVID-era contracts in OC finds millions awarded with little accounting

A year after former Orange County Supervisor Andrew Do reported to federal prison to serve time for bribery, evidence continues to surface of widespread corruption and mismanagement of taxpayer dollars during his time in office.

A county report released Wednesday found that millions of dollars in COVID-era contracts and grants were directed by Do and another top county official with no competitive bidding and little to no accounting of how the money was spent. Overall, the report paints a picture of a local government facing an unprecedented public health crisis, flush with federal relief dollars, but with minimal guardrails to ensure those dollars were properly spent.

For example, Do awarded a $500,000 small business grant in May 2021 to Bridgecreek Realty Investment Corp. to expand outdoor dining in Little Saigon during the pandemic. But the audit noted that the contract never required Bridgecreek to provide supporting documentation for how the money was spent — such as invoices or receipts. In the end, there is no documentation for how more than half of the taxpayer funds were used.

LAist left a voicemail with Frank Jao, owner of Bridgecreek, requesting comment and will update this story if we receive a response.

The audit also details the numerous times that top county officials were alerted to, but didn’t act on, potential irregularities regarding millions in county funds awarded to a nonprofit connected to Do’s adult daughter, Rhiannon Do. The audit details one occasion in which Clayton Chau, the former county health care director, reprimanded a subordinate for raising concerns and stated “that Supervisor Do was a lawyer and he would know if there was a conflict.”

Chau did not return a text and message from LAist left on his voicemail. We will update this story if we receive a response.

Frank Kim, the former Orange County chief executive, was also interviewed by the auditors. The audit said he was also aware of the alleged conflict of interest, but failed to consult with the county’s top lawyer at the time. Instead, according to the audit, he relied on the word of Do’s then-chief of staff, Chris Wangsaporn, who assured Kim there was no conflict.

LAist left a voicemail on Wangsaporn’s cellphone seeking comment and will update this story if and when we receive a response.

“It’s not an excuse, but that was a strange time,” Kim, the former county CEO, told LAist on Wednesday. Referring to the pandemic and the audit’s findings, Kim added: “None of the processes were really set up to deal with emergencies.”

Kim told LAist he had trusted the supervisors and top county staffers.

“I never thought there would be fraud," he said. “These were people I had worked with for a long time. I never thought they would do something like that.”

Several county supervisors were quick to react to the audit findings, calling for even deeper investigation into what Supervisor Donald Wagner called “potential additional abuses of taxpayers’ dollars.”

Supervisor Janet Nguyen, who was elected to replace Do, said Do and Chau had “scammed taxpayers in the most difficult time of their lives.” She also said the audit showed the county had “routinely bypassed its own rules” for contracting with outside entities.

Supervisor Katrina Foley said the report exposed “deficiencies in oversight and accountability that the board continues to address,” adding that the county must complete the next two scheduled phases of the forensic audit to “uncover remaining problems, strengthen our controls, and protect taxpayers from corruption and abuse.”

The backstory

The new report is the result of the second phase of a forensic audit of major pandemic-era contracts ordered by the O.C. Board of Supervisors in the wake of the Do scandal. The outside firm Weaver is conducting the audit.

Do pleaded guilty to a federal bribery charge in 2024 following a more than year-long investigation by LAist that found he directed some $13 million in taxpayer funds to an organization affiliated with his daughter, Rhiannon, who was a student at the time. Most of that money was slated to provide meals and services for needy residents of Do’s district during the COVID-19 pandemic.

Instead, at least $550,000 of the funds was rerouted back to Do and his two daughters in the form of bribes, according to federal officials, while just 15% was used to feed residents.

Do will complete his first year in prison on Saturday. He’s scheduled for release in June 2029, according to the federal Bureau of Prisons.

How to watchdog your local government

One of the best things you can do to hold officials accountable is pay attention. Your city council, board of supervisors, school board and more all hold public meetings that anybody can attend. These are times you can talk to your elected officials directly and hear about the policies they’re voting on that affect your community.

• Read tips on how to get involved.
• The Orange County Board of Supervisors meets on alternating Tuesdays at 9:30 a.m. at 400 W. Civic Center Drive, Santa Ana. You can check out the O.C. Board of Supervisors full calendar here.
• Learn how to submit a public comment to the O.C. Board of Supervisors.