Board grills auditors in Andrew Do case: How did corruption go undetected?

New questions are emerging as Orange County leaders seek to understand the extent of the corruption that took place under former Supervisor Andrew Do. Chief among those questions: How did the corruption go undetected for so long?

The Board of Supervisors got its first official debriefing Tuesday from outside auditors hired to review county contracts approved during Do’s time in office — before he went to prison for bribery. The debriefing was based on the first phase of the auditors’ report, released earlier this month.

Many of the audit’s findings were uncovered by LAist in recent years and involve millions in taxpayer money that was directed to nonprofits and businesses associated with Do’s family, friends and political donors.

Do is currently serving a five-year prison term after admitting that nearly $8 million in taxpayer funds that were supposed to feed those in need were diverted for personal gain, including $385,000 to purchase a home for Do’s daughter.

At their Tuesday meeting, several supervisors asked the auditors, from the firm Weaver, to dig deeper. They also questioned how and why early indications of wrongdoing went uninvestigated.

“There were people that were trying to draw attention to this, and those in positions of more executive authority … didn’t pay attention,” said Supervisor Vicente Sarmiento, who represents District 2.

How to encourage staff to speak up

Sarmiento and Supervisor Katrina Foley, who represents District 5, both questioned how to better encourage county employees to speak up about potential wrongdoing — and how to ensure their concerns are taken seriously.

“I think we have really ethical people that work in this county,” Sarmiento said. “And I'm sure somebody saw something because these are, you know, hundreds of contracts with hundreds of thousands of dollars involved.”

Foley noted that years ago she had heard concerns about the county’s contract for COVID-19 testing during the pandemic. She said when she asked several top county administrators about it, “I was basically told there's nothing to see here.”

The recent audit found that 360 Clinic billed the county for some claims while receiving private insurance payments for the same claims, among other concerns largely echoed in previous LAist reporting.

“ At some point we've gotta figure out why we don't see what's actually there,” Foley said.

What happens next?

Supervisor Janet Nguyen, who represents Do’s former district, District 1, asked the auditors to delve deeper into the payments to 360 Clinic as they move into phase two of the audit. She also said she wants a deeper investigation into Do’s use of an outside printing firm to send mailers to constituents about the 2020 Tet Festival. Foley said she and other supervisors would normally use the county’s in-house printer for such jobs.

“We also need to continue to unearth to see, what else did we miss?” Nguyen said.

Phase two of the audit will look at an even bigger range of contracts considered high priority — worth $1.7 billion. The first phase of the audit looked at 145 contracts worth about a half-billion taxpayer dollars.

Go deeper ...

Here's a look at some of LAist's coverage of one of the biggest corruption scandals in Orange County history:

LAist investigates: Andrew Do corruption scandal
Ex-Orange County Supervisor Andrew Do is ordered to pay $878,230.80 in restitution
'Robin Hood in reverse.' O.C. Supervisor Andrew Do resigns and will plead guilty to bribery conspiracy charge
Former OC Supervisor Andrew Do turns himself in, begins 5-year federal prison term
6 questions we still have after disgraced former OC Supervisor Andrew Do’s sentencing
A quiet retreat for the judge married to disgraced OC politician Andrew Do

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