A stunning admission has surfaced from within the California state government. The top communications official for the state Controller, Bismarck Obando, revealed in a hidden camera interview that critical financial audits are simply not being performed.
Obando, Acting Deputy Controller of Public Affairs and Press Secretary, confessed to an undercover journalist that widespread fraud permeates California’s financial systems. His response to a direct question about fraud was blunt: “Everywhere, cities, counties, special districts, hospitals, insurance companies.”
The reason for the lack of oversight, according to Obando, isn’t a lack of willingness, but a lack of resources. He explained that funding for auditing teams has been consistently cut, leaving the Controller’s Office unable to fulfill its core responsibility of protecting state finances.
Beyond the audit failures, Obando shockingly admitted there is “no statewide plan” to address the growing crisis of homelessness. This revelation comes as California counties and cities are requesting a staggering $1 billion this year specifically for homelessness initiatives.
An investigation by journalists focused on organizations receiving substantial state funding to combat homelessness uncovered troubling discrepancies. Visits to two Los Angeles-area non-profits, Abundant Blessing and Urban Alchemy, revealed a startling absence of the very people they claim to serve.
Abundant Blessings Incorporated, having received $23 million in public funds, saw its executive director arrested on charges of fraudulently obtaining those funds. Urban Alchemy, another recipient of over $60 million in government contracts, including $12 million since 2021, also faced scrutiny.
Individuals experiencing homelessness reported visiting these shelters in search of basic necessities like blankets, socks, and toothpaste, only to find supplies consistently unavailable. Millions of dollars are allocated to these organizations annually, yet the funds appear to vanish without reaching those in need.
The revelations paint a disturbing picture of systemic failures and potential misuse of taxpayer money. The inability to conduct audits, coupled with a lack of a cohesive plan to address homelessness, raises serious questions about accountability and responsible governance within the state of California.
