Board Orders Review of Sheriff Contract Process

Concerned that the arrest of two men in an alleged bribery scheme may signal more fundamental management problems within the Los Angeles County Sheriff’s Department, the Board of Supervisors voted unanimously Tuesday to order a review of all the department’s contracting procedures.

Acting with little discussion on a motion by Supervisor Mike Antonovich, the board directed county auditors and analysts “to determine whether those practices are still open to these types of abuses, and if so, what additional changes should be made.”

The auditors were directed to report back within 30 days.

Antonovich raised similar concerns in June after a Times investigation and subsequent audit by KPMG Peat Marwick found serious flaws in the contracting process. That review--the first-ever independent audit of the sheriff’s $1-billion operation--called on Sheriff Sherman Block to implement a number of reforms, including competitive bidding on all contracts. The supervisors agreed, and Block pledged to make the changes.

A centerpiece of that reform effort is an electronic procurement system that will give Block--and county auditors--centralized oversight over departmental purchasing, said Richard Popper, chairman of the county audit committee. He said the system is not yet online.

But Antonovich said the supervisors need to know “whether [the reforms] were implemented and [whether] loopholes are there to allow people to get around them.”

As part of their alleged scheme, the sheriff’s assistant food services director, Fred Gaio, and private contractor Rick Hodgin conspired to award contracts to Hodgin’s clients without competitive bidding, resulting in higher prices, authorities say. Both men were arrested Friday on bribery charges.

“I have confidence in Sheriff Block,” said Antonovich, a conservative and staunch supporter of the sheriff. “I do not have confidence in a procedure that allows noncompetitively bid contracts.”

Antonovich said he also wants auditors to look into why Block’s subordinate managers ignored warning signs concerning Gaio’s conduct.

Gaio’s boss, manager Betty Starr, was relieved of duty temporarily Monday pending the outcome of an investigation.