Loose Lips

SEC Wants to See CFO’s Office Audits

Now the the Securities and Exchange Commission, too, wants to know what's going on Natwar Gandhi's Office of the Chief Financial Officer.

The SEC sent a letter to the OCFO yesterday asking to see more than two years' worth of audits and inspections, according to a letter sent by Gandhi to Mayor Vince Gray and the D.C. Council today. The letter came from the SEC's municipal securities enforcement unit, suggesting that they are interested in the District's bond offerings.

Federal regulators want to see "copies of all audits, inspections, reviews, and investigations (including drafts)" performed from Jan. 1, 2010, to Oct. 19, 2012, by the OCFO's oversight branch, the Office of Integrity and Oversight. The OCFO's practice of keeping previous audits private came under fire last week, with the council voting unanimously to require the audits to be posted online.

'The OCFO intends to fully comply with the request," Gandhi writes in his letter. A supplement about the SEC request is set to be added to a new $675 million bond issue from the District.

Photo by Darrow Montgomery

  • thatshitcray

    Another one bites the dust. Hey!

  • Tru Dat

    Nat, can the outmanuever the dysfunctional DC Council and local government...but guess what...dude is now in a whole different playing field with the SEC. Can't wait for them to administer an investigatory rectal exam all up in the CFO office. Lets see how much his supposed Wall Street connections can save him now.

  • DC Antics

    It is about damned time he answered to someone!!

  • ToTheContrary

    Oh, my. Ghandi's goose is cooked.

  • Typical DC BS

    I wouldn't be too confident about the SEC's investigatory prowess. These are the same guys that allowed Madoff's ponzi scheme to flourish for 20 years under their noses, EVEN AFTER THEY WERE TOLD BY AN INVESTOR IT WAS A PONZI SCHEME! Remember Enron? The list can go on and on.

  • Tru Dat

    Not doubting you Typical but here is the distinction I would make. While the SEC was alerted to the possiblity of fraud with Madoff, they werent handed conclusive evidence and access to an insider--otherwise they would have acted. In the CFO's case, it is undisputed and well-documented that the CFO's office has major issues. Multiple embezzlements and, even worst, Gandhi's top officer in charge of integrity abruptly resigns and flips on him with the Council. Make no mistake--this guy is providing the SEC with an insider's roadmap as to were the skeletons are. It is no coincidence that the SEC is requesting draft copies of all of the Office's internal audits. So given that Nat's own top lieutenant is at odds with him--I would say dude has got problems. DC Council needs to grow up and issue a NO Confidence Vote on Nat--and he needs to go!!

  • Angelina

    How do you like your goose cooked? I take mine well-done and served on a silver platter!