According to news sources, like The Gotham Gazette, approximately $4.7 million of NYC taxpayers' money was allocated by city council members to fictitious organizations. Funds were embezzled via fake non-profits like, "The New York Foundation for Community Development" and "The American Association of Concerned Veterans."
This revelation comes amidst a time when the city is already at least 9 figures in the red. With such a deficit in the city's balance sheet, you would think that city officials would be extra vigilant about how every alloted dollar is being spent. However, despite very tough financial times, some elected officials have been playing fast and loose with discretionary funds. Two council staffers have already been indicted on embezzlement charges.
It is bizarre that such a fiasco would unfold under the gaze of a billionaire mayor who specializes in finance. The fact that the administration of a financial wizard would let millions of dollars slip through the cracks (especially during a fiscal crunch), rings of either: gross incompetence and negligence, or a case of "the fox guarding the hen house."
As of yet, no one has taken responsibility for dropping the ball on watchdogging the funds. The buck is being passed as to who is to blame. However, some government officials who are appalled by the theft of funds, are asking that the Council Speaker, Christine Quinn, step down from her position. This request is due to the fact that the "missing" funds were parceled out to various council members and organizations solely at her discretion.