San Francisco tax boss improperly pushed $10M contract to close pal: Bombshell audit

A top San Francisco tax official “abused her position” to improperly steer a lucrative $10 million contract dealing with the city’s $2.6 billion in business taxes toward a close pal’s company, according to an explosive city audit.The joint report by the City Attorney’s Office and the Controller‘s Office found Chief Assistant Treasurer Tajel Shah used her powerful role to benefit Mechanical Orchard, a tech firm competing for a contract to replace the city’s aging business software.The audit largely confirmed allegations first raised by The San Francisco Standard last year.Shah, who was suspended after The Standard’s investigation triggered multiple reviews, ultimately left city government late last year and Mechanical Orchard abandoned its pursuit of the contract.

In a farewell letter to colleagues, Shah announced her retirement after 17 years with the city, saying she was proud of the office’s accomplishments and grateful for her public service career.The audit found Shah improperly participated in contracting decisions involving Mechanical Orchard despite personal relationships with company officials, including former chief revenue officer Roque Versace, whom she had described as a friend.Investigators concluded her actions created at least the appearance of favoritism and undermined the integrity of the procurement process.“The instances in which Shah instructed TTX staff to act in ways that benefited Mechanical Orchard were so numerous, it appears that she intended to selectively assist the firm in violation of city law and policy,” auditors wrote.In an interview with The Standard, Shah compared Versace to a friendly business acquaintance like any other city contractor, but a Facebook post from 2017 shows that Shah commented on a photo of Versace’s family by writing, “My favorite peeps!”San Francisco has been rocked by a slew of scandals at City Hall in recent years, including the head of the Human Rights Commission being charged wit...