Overview
- The joint audit released Tuesday by the City Attorney’s Office and Controller’s Office concluded that former Chief Assistant Treasurer Tajel Shah used her position and undisclosed personal ties to benefit Mechanical Orchard during a multimillion‑dollar procurement.
- Auditors documented more than 1,100 internal emails and specific procurement adjustments, including roughly $1.7 million in last‑minute cost additions to competing bids that left Mechanical Orchard’s proposal largely unaffected.
- Mechanical Orchard withdrew from the contract negotiations in September 2025 after media questions surfaced, and Shah left the treasurer’s office under a November 2025 settlement that included a payment to her.
- The report flagged systemic weaknesses that allowed the misconduct, citing a lack of segregation between operations and human resources, limited checks on senior staff, and a culture that discouraged reporting concerns.
- City Treasurer José Cisneros, who requested the audit, said the business tax modernization procurement will be restarted and the city will implement the auditors’ recommended controls to prevent similar conflicts and restore competitive integrity.