A new City of San Diego audit report found six employees in the Public Utilities Department used taxpayer money to buy uniforms that were not authorized for purchase.

Auditors found department supervisors were involved in or knew about the improper purchases and did nothing to stop it.

One employee was retaliated against after she stopped the purchase from going through, auditors found.

At least six employees conspired to use taxpayer funds to buy uniforms for co-workers who were not entitled to them — then a supervisor retaliated against a city worker who thwarted the attempted purchase, according to a new audit report.

The report, released Monday by City Auditor Eduardo Luna, described the results of an investigation into a tip received through its fraud hotline about the plot.

Auditors substantiated the tip, the report said. They found that three male employees — all of whom were in the Public Utilities Department and eligible under a union agreement to receive uniforms at city expense — had attempted to order pants for three female employees. The women were not part of the unions that had such an agreement, and were therefore expected to buy their own work clothes.


Each of the three eligible male employees ordered four pairs of pants for a female employee, for a combined total of 12 pairs of pants, the report said. At $35 a pair, the total cost to taxpayers would have been $420.

All the employees involved had worked for the city “for many years, understood the ordering process and apparently knew that they should not have placed a clothing order for someone else,” the report said.

The report did not name any of the employees.

Further, one of the female employees — who was a supervisor — later “verbally abused” a worker in the same department, who had noticed the gender inconsistencies and denied the orders, the report said.


“Although the dollar amount of the attempted theft of $419.88 is not substantial, the unethical conduct by the six PUD employees, and the management response, are concerning,” Luna wrote in a letter published with the report.

Auditors were also concerned about the response by another supervisor in the department, a man who was not involved in the attempted theft but had joked about ordering women’s pants, the report said.

“Our investigation determined that in total, four supervisors were aware of the conduct and could have ensured that a formal fact-finding investigation be commenced related to the attempted theft and retaliation which could have resulted in disciplinary action,” the report said. “However, no official action was taken.”

Auditors recommended that department management conduct an independent investigation into the conduct of all the employees who knew about the plot or were involved and take disciplinary action as necessary, the report said. Department management agreed to the recommendation and would conduct the investigation by June 30.


To anonymously report fraud, waste or abuse of public resources, call the city’s hotline at 866-809-3500 or leave a tip online sandiego.gov/fraudhotline. You can also contact U-T Watchdog at 858-224-2275 or uniontrib.com/watchdog.

morgan.cook@sduniontribune.com