New York's handling of COVID-era contracts and ethics has come under scrutiny, with critics pointing to instances of alleged corruption and hypocrisy among state leaders. The fallout from this period continues to emerge years after pandemic-related mandates have ended.
Former Deputy State Budget Director Sandra Beattie was fined $5,000 by the state Commission on Ethics and Lobbying in Government for failing to report vacations taken at the Florida home of lobbyist Michael Balboni. During these trips, Balboni’s clients had business pending with Beattie’s office. Shortly after these undisclosed visits, Beattie facilitated the inclusion of Balboni's firm in the "Excelsior Pass" app project, where his firm consulted and lobbied for Deloitte, the primary contractor. Balboni’s firm reportedly received $300,000 in fees for this work, all of which Beattie approved.
Balboni has since become president of Adelphi University, a position described as being well-suited to secure public-private partnerships, a role critics suggest involves leveraging connections to direct public funds to private entities.
Further allegations involve a $637 million no-bid contract awarded to Digital Gadgets for 52 million COVID tests in November 2021. Then-Governor Kathy Hochul declared a state of emergency to expedite pandemic countermeasures, leading to this contract. Days prior to the award, Digital Gadgets owner Charlie Tebele and his relatives had contributed $300,000 to Hochul’s campaign. The company acted as a middleman for the tests, which it did not manufacture, reportedly leading to the state paying a higher price than necessary. Hochul's campaign also hired Tebele's son.
These events follow scrutiny of former Governor Andrew Cuomo's $5 million book deal, which was secured while he was lauded for his pandemic leadership. Critics argue that Cuomo's book contract exploited his public image, and they point to his administration's mandate forcing infected individuals into nursing homes, which they contend endangered seniors and developmentally-challenged adults to benefit hospital lobbyist donors. State employees reportedly authored the book, and Cuomo obtained an ethics waiver for the deal.
The current criticism suggests that while self-dealing may be a long-standing issue in New York, these specific instances are notable due to the prominent positions of the leaders involved and their public image as protectors during a public health crisis.