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Audits Reveal Security Lapses In D.C. Tax Office

By: Patrick Madden // October 9, 2012
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Weak controls in the D.C. Office of Tax and Revenue may have opened the door to the theft of millions in city funds.
Larry Miller: http://www.flickr.com/photos/drmillerlg/1246397248/
Weak controls in the D.C. Office of Tax and Revenue may have opened the door to the theft of millions in city funds.

Internal audits and reports show that major security lapses lingered at the D.C. Office of Tax and Revenue years after a mid-level manager was caught embezzling tens of millions of dollars.

According to reports obtained by The Washington Post, auditors have repeatedly warned Chief Financial Officer Natwar Gandhi about weak controls and oversight at the office. The office didn't respond to requests for comment from the newspaper about the reports and audits.

The audits and reports were written by Gandhi's internal affairs unit, which was run by William DiVello. The former assistant inspector general abruptly resigned last week. He is expected to testify Wednesday before the D.C. Council about problems in the tax office.

In 2007, manager Harriette Walters was caught stealing $48 million through fake property tax refunds.

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