The parking meter company at the center of a federal bribery investigation involving ex-City of Portland parking manager Ellis McCoy is in more hot water.
A new city audit released today says Cale Parking Systems USA Inc. didn't have a city business license when it was paid $18,000 by the city, and auditors couldn't find a state corporations filing for the time period Cale was paid $5.4 million.
The audit says business licenses and corporation filings are required to do business with the city. The city uses its licenses to impose income taxes on businesses.The city auditor's office says Cale renewed its city license irregularly between 2008 and 2010, the time frame city payments were audited.
"Upon further review of these results," the audit reads, "a Revenue Bureau manager confirmed that seven of the 30 vendors [investigated] were not compliant at time of payment by the City, including the vendors described above. Cale has had brief periods of noncompliance each year, according to the Revenue Bureau."
Cale, based in Tampa, Fla., is now registered with the state and licensed by the city—and has a $20 million SmartMeter contract.
McCoy, the city official at the center of the bribery scandal, pleaded guilty last month to taking free or partially funded vacations from two parking meter companies.
The FBI won't say if it's still investigating Cale.
The financial transactions audit says that between 2008 and 2010, the city made 600 payments to Cale and 29 other vendors that might not have been licensed with the city revenue bureau.
"By not verifying business registry," the audit says, "the city could provide city funds to businesses that may not be operating in the city legally or may not be paying applicable city business taxes."