RICHMOND, Va. — Richmond Mayor Danny Avula announced Wednesday a reset in the city's procurement card program (p-card program) and a reduction in the number of cards available to city workers. P-cards are essentially credit cards issued to staff, allowing them to make smaller purchases more easily and efficiently.
A series of recent reports uncovered areas of weakness within the program, as well as examples of alleged waste, fraud, and abuse.
“P-cards are a best practice, but Richmond’s p-card program needs a reset,” Mayor Avula said in an emailed statement. “So, today, I’m turning off the vast majority of p-cards and placing new purchasing restrictions on the remaining cards. We’ll take the next few months to reassess, retool, and reboot the program in an effective way that really serves Richmonders.”
The number of city p-cards will be reduced by over 80% — from 320 to approximately 60 — by May 9, according to a city spokesperson.
"The only allowable purchases will be those where public health, safety, and critical services would be disrupted if not allowed or where no other payment methods exist," a spokesperson's statement said. "The reset will last at least 60 to 90 days during which the Department of Procurement Services (DPS) will redesign and then relaunch the p-card program."
Richmond's Department of Procurement Services recently hired the Institute for Public Procurement to assess Richmond's program and report back on its findings.
“My team and I are absolutely committed to creating the most efficient procurement p-card program possible — for the City of Richmond, the people we do business with, and the residents we serve,” Rene Almaraz, director of the Department of Procurement Services, said in an emailed statement.
An investigation by Richmond’s government watchdog agency released last year cited the then Richmond General Registrar and his department with 25 counts of waste, fraud, and abuse. The probe found nearly $500,000 in public funds was wasted through purchases that violated city policies.
Watch: Richmond's top election official resigns after fraud investigation
The City of Richmond laid out the following guidelines during the p-card reset:
- The only allowable p-card purchases will be those where public health, safety, and critical services would be disrupted if not allowed or where no other payment option exists.
- No travel-related purchases are permitted on p-cards. City employees will follow the existing travel advance/reimbursement policy.
- No Amazon purchases are permitted on p-cards.
- No food purchases are permitted on p-cards, except for mission-critical, citizen-supporting programs like summer food programs or after-school programs.
- Department directors will no longer be issued p-cards, allowing them to better focus on approving purchases.
This is a developing story. Email the CBS 6 Newsroom if you have additional information to share.
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