Press Release: McDuffie Demands Agency Accountability Not Finger Pointing from DSLBD and OLG

News Release — Ward 5 DC Council member Kenyan McDuffie

For Release: Wednesday, July 7, 2021

Contact: Malcom Fox

Washington, DC – Today, the Office of the DC Auditor released a report entitled, “Weakness Cited in Monitoring Lottery Contract Certified Business Enterprises (CBEs). The report claimed that neither the Department of Small and Local Business Development (DSLBD) nor the Office of Lottery and Gaming (OLG) have meaningfully enforced the 35% CBE participation goal for the lottery contract as required by law.

“This report reveals yet another example of agency finger-pointing when what residents and small businesses need is accountability and transparency,” said Councilmember McDuffie. “When executive agencies neglect CBE requirements, District residents, workers and small businesses bear the costs. I will continue to advance legislative solutions and provide vigorous agency oversight that ensures CBE requirements are fully and faithfully followed.”

The Auditor’s report revealed that DSLBD failed to provide evidence that it complied with D.C. law in certifying six of the CBEs listed on the OLG Contract Subcontracting Plan. Specifically, the report claims that DSLBD did not have an appropriate or effective process to validate three CBE certification requirements in the D.C. Code, including how they evaluate managerial functions performed in the principal office, whether the business is independently owned, operated and controlled, and whether one or more veterans controlled the management and daily operations.

As chair of the Committee on Business and Economic Development, Councilmember McDuffie has raised numerous concerns about agency compliance with CBE laws. He has held oversight hearings and authored bills to strengthen CBE laws, including a recent emergency measure that clarified the definition of independently owned, operated, and controlled for DSLBD — one of the recommendations in the Auditor’s report.

###