Undercover admission on hidden camera
An undercover journalist from O’Keefe Media Group recorded Bismarck Obando, the Acting Deputy Controller of Public Affairs for California State Controller Malia Cohen, saying the Controller’s Office simply “can’t conduct the audits.” That is a blunt admission from a senior communications official whose job is to explain how the state protects taxpayer dollars. If audits are not happening, taxpayers deserve a clear explanation and a plan to fix it.
Audits cut while fraud goes unchecked
Obando told the reporter that fraud is happening everywhere, naming cities, counties, special districts, hospitals, and insurance companies. He also said audit teams keep getting cut and that the office has not been funded to do the work. Translation: the system meant to catch abuse is being hollowed out at the same time the risk of abuse is rising. That should make every taxpayer uneasy.
Questions about homelessness funding and payouts
The undercover crew visited homeless service providers in South Los Angeles and found alarming gaps between money received and services delivered. One group received $23 million before the executive director was arrested on fraud charges. Another received more than $60 million in contracts but critics say they do not serve the people they claim to help. When shelters are empty of clients and full of contracts, we need real accounting, not excuses.
No statewide plan, officials say
Obando also said there is no statewide plan to tackle homelessness and that counties and cities are asking for roughly $1 billion this year. Without clear oversight and functioning audits, pouring more money into the same system risks repeating the same failures. A proper audit program and accountable spending are the basics of good government.
BREAKING: California Controller’s Top Communications Official Admits Audits “Are Not Getting Done” & Acknowledges “100 Percent” Fraud Exists in the State
“We [CA Controller’s Office] just can’t conduct the audits”
“There is no statewide plan on homelessness”
“They [CA… pic.twitter.com/Zi5m3yNvf4
— James O'Keefe (@JamesOKeefeIII) April 7, 2026
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