May 1st 2025.
In a recent announcement, Mayor Danny Avula of Richmond, Virginia shared that the city's procurement card program, also known as the p-card program, will be paused and reevaluated. This decision comes after numerous allegations of misuse and abuse of the program, as reported by 6 News Richmond.
As the first immigrant and Indian mayor of Richmond, Avula stated that the number of p-cards will be significantly reduced from 320 to only 60 by May 9th. This means that only a small number of staff members will have access to these credit cards, which are typically used for smaller and more efficient purchases. The mayor emphasized the need for a "reset" and thorough review of the program, following reports of program weaknesses and instances of waste, fraud, and abuse.
Avula explained, "P-cards are considered a best practice, but the p-card program in Richmond requires a reset. Therefore, I have made the decision to restrict the majority of p-cards and implement new purchasing regulations for the remaining cards." He also added, "Over the next few months, we will take the necessary steps to reassess, refine, and relaunch the program in a way that truly benefits the people of Richmond."
According to a 2024 investigation by a government watchdog agency, the city's former General Registrar and his department were found guilty of 25 counts of waste, fraud, and abuse. The report also revealed that nearly $500,000 of public funds were misused through purchases that violated city policies. A spokesperson for the city stated that only purchases that are essential for public health, safety, and crucial services will be allowed. Other purchases may only be made if no other payment methods are available.
The reset period is expected to last anywhere from 60 to 90 days, during which the Department of Procurement Services will work to redesign and relaunch the p-card program. City officials, including 4th District Councilmember Sarah Abubaker, commended Avula's actions but expressed the need for more accountability and transparency in the program. "We need to be proactive in our approach and think about ways to hold people accountable for their actions," she stated, as reported by 12 On Your Side.
Rene Almaraz, the head of Richmond's Department of Procurement Services, has hired the Institute for Public Procurement to evaluate the program and provide recommendations. Almaraz affirmed that the team is dedicated to creating an efficient and effective p-card program. Among the changes being implemented during the reset, the purchase of items from Amazon will be prohibited, except for essential food items or programs that support the citizens of Richmond, such as summer food programs or after-school activities. Additionally, department directors will no longer be able to issue p-cards, allowing them to focus on approving purchases.
In other news, a new scam targeting bank accounts through Near Field Communication (NFC) technology has recently emerged. This scam serves as a reminder of the importance of being cautious when making purchases and protecting our personal information.
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