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Inspector General outlines $20M in prevented losses, embeds staff in Safety & Permits to review processes
Summary
Inspector General Ed Michel told the council OIG reports in 2024 identified more than $20 million in prevented economic loss, recovered funds and led to personnel accountability at city agencies. The OIG has embedded staff at the Safety & Permits department to review permitting processes and will produce a report with recommendations in several
Ed Michel, Inspector General for the City of New Orleans, told the council the Office of Inspector General (OIG) produced 14 reports in 2024, identified more than $20 million in potential economic loss prevented, and recovered funds for the city including a $1,063,000 reimbursement from a nonprofit.
"For 2024, we have produced and disseminated 14 reports, letters, and or investigations... We have identified unprecedented levels of potential economic loss prevented to the tune of more than $20,000,000 this year alone," Michel said.
The OIG described high-profile work on homestead-exemption review, which the office said identified nearly 300 improper homestead exemptions that may yield additional revenue under the Homestead Exemption Fraud Act (House Bill 546). The office also reported multiple administrative and criminal investigations in Safety & Permits that resulted in resignations, firings or indictments; the OIG has assigned personnel to embed at Safety & Permits to review processes and reduce corruption risks.
Councilors asked the OIG to explain what embedding personnel means; the IG said one to two full-time OIG staff are currently placed in Safety & Permits to review processes, procedures and standards (not to do daily operational work) and to coordinate with consultants such as Matrix to avoid duplication. The OIG expects a final report with recommendations in roughly six months, and said initial interviews and cooperation from Safety & Permits have proceeded faster than expected.
The OIG also described ongoing criminal investigations, support for stronger procurement rules and efforts to recover funds tied to past transactions. Michel highlighted a returned $1,063,000 check from a nonprofit and mentioned recovery related to "Wissner funds," sewage and water billing, and OPSO overtime and off-duty pay issues.
Why it matters: The OIG's work can reshape procurement, permitting and operating practices across city government. Embedded reviews and cross-agency data-sharing initiatives are intended to reduce fraud, waste and abuse and to provide more real-time information for decision makers.
Ending: The OIG asked the council to maintain support for the office's staffing and analytic capacity, and promised to deliver a detailed report with recommendations once the embed review and combined audits are complete.
