My insight from the revived Minnesota and Minneapolis social services fraud story is that it is more than Walz's incompetence, Frey's bad judgment, or Somali fraudsters. Having worked my whole career in banking, I know how many resources we devoted to fraud prevention and fraud prosecution. It takes an attitude, but it also requires significant investment in people, systems, and physical security (the old bank vault).
There is another problem you often talk about: the government’s outsourcing. When you outsource, you need to have many controls and checks in place to manage the vendor (the bee-watcher watcher). Vendor management is a serious skill set, and I assume the government (from local to federal) does not take vendor management seriously.
“The Government” is huge, with very few resources devoted to things like fraud and vendor management. This has to change, or the whole system will crumble. We need to approach fraud prevention and vendor management with urgency.
Thanks for your insight, Jim. It reminds me of your story about the city's parking garage contracts and how difficult it has been for you to get information about them.
I’ve often unfairly attributed guilt by association. For the truth to emerge, it’s important to avoid “filling in the gaps.”
That said, our politicians should be demanding a fully independent and properly funded oversight group. I’m not sensing we have anything close to that now. Local media such as the Strib cannot be counted on to fill that role.
Even before the Strib rebranded from Minneapolis to Minnesota, they didn’t have the talent necessary to track this type of fraud. IMO, they would need financial crimes experts, who simultaneously had full and unhindered access to government records. Local Strib reporters are jacks of all trades, experts of none, and spread way, way too thin. Especially after the rebrand.
Completely agree. The state and city need independent boards that audit their finances. Their current track record of responsible management is awful. In addition, it often requires going through a lengthy data request process to find the necessary information for analysis.
Thanks (I think...) for the reminder of the Frey and Osman connections in all this. It's tough to hear, since I like the former and "kinda like" the latter... I was also reminded this week of AG Ellison's at-least-tangential involvement, and, of course, our Governor just will NOT "sit down and shut up" on this, CONSTANTLY reminding us all (inadvertently...!) that he simply did not act responsibly in-the-moment, and continues to shirk responsibility - although he APPEARS to think that he is acquitting himself well via his ongoing utterances (such as this past Sunday on NBC's Meet The Press - when he was once again seemingly oblivious to his responsibility...). When you're in a deep hole... STOP DIGGING, Tim! It's really getting harder and harder to believe that our current crowd of DFL office-holders will be able to right the ship without outside intervention(s). I welcome and wholeheartedly endorse Patrick Coolican's Tuesday suggestion in Minnesota Reformer that we DFLers might be better served by someone stepping forward to "Primary" Walz. Even if he survived the competition, at least it would force him to start talking like a guy who has failures to explain, BEFORE the eventual GOP nominee... well... forces him to start talking like a guy who has failures to explain...
Excellent breakdown of the web of connections here, really brings clarity to a complicated situation. The pattern you've mapped out isnt just about individual bad actors but speaks to somethng deeper about how vendor oversight structurally fails when there's no real accountability framework. What strikes me is how the "bee-watcher" metaphor captures exactly the problem with cascading oversight that doesn't actually prevent fraud, just adds layers of bureaucracy. It suggests we might need fewer watchers but bettr incentive structures that make fraud detection everyone's responsiblity rather than another delegated task.
Thanks for the refresher; I remember sending an email to Frey's office on the subject of Osman, and receiving no reply. Which I took as a sign he will ignore this until when and if Osman is actually found guilty of something. Osman's council position is perfectly positioned to influence contracts, which seems like an elephant in the room given his history.
I hope that a candidate from this last cycle like Alejandro Richardson will run again for another position. Maybe not mayor. Maybe city council. I got the impression he would not fall prey to this kind of ridiculousness.
Thanks for re-posting.
My insight from the revived Minnesota and Minneapolis social services fraud story is that it is more than Walz's incompetence, Frey's bad judgment, or Somali fraudsters. Having worked my whole career in banking, I know how many resources we devoted to fraud prevention and fraud prosecution. It takes an attitude, but it also requires significant investment in people, systems, and physical security (the old bank vault).
There is another problem you often talk about: the government’s outsourcing. When you outsource, you need to have many controls and checks in place to manage the vendor (the bee-watcher watcher). Vendor management is a serious skill set, and I assume the government (from local to federal) does not take vendor management seriously.
“The Government” is huge, with very few resources devoted to things like fraud and vendor management. This has to change, or the whole system will crumble. We need to approach fraud prevention and vendor management with urgency.
Thanks for your insight, Jim. It reminds me of your story about the city's parking garage contracts and how difficult it has been for you to get information about them.
One correction, Jamal Osman does not chair the Budget Committee; he chairs the Business, Housing, & Zoning Committee.
Thanks for reposting, and for breaking down these connections without undue speculation and hyperbole. It's good information in a measured tone.
I’ve often unfairly attributed guilt by association. For the truth to emerge, it’s important to avoid “filling in the gaps.”
That said, our politicians should be demanding a fully independent and properly funded oversight group. I’m not sensing we have anything close to that now. Local media such as the Strib cannot be counted on to fill that role.
Where do you think the Strib falls short Mike?
Even before the Strib rebranded from Minneapolis to Minnesota, they didn’t have the talent necessary to track this type of fraud. IMO, they would need financial crimes experts, who simultaneously had full and unhindered access to government records. Local Strib reporters are jacks of all trades, experts of none, and spread way, way too thin. Especially after the rebrand.
Completely agree. The state and city need independent boards that audit their finances. Their current track record of responsible management is awful. In addition, it often requires going through a lengthy data request process to find the necessary information for analysis.
Understood, thanks.
Thanks (I think...) for the reminder of the Frey and Osman connections in all this. It's tough to hear, since I like the former and "kinda like" the latter... I was also reminded this week of AG Ellison's at-least-tangential involvement, and, of course, our Governor just will NOT "sit down and shut up" on this, CONSTANTLY reminding us all (inadvertently...!) that he simply did not act responsibly in-the-moment, and continues to shirk responsibility - although he APPEARS to think that he is acquitting himself well via his ongoing utterances (such as this past Sunday on NBC's Meet The Press - when he was once again seemingly oblivious to his responsibility...). When you're in a deep hole... STOP DIGGING, Tim! It's really getting harder and harder to believe that our current crowd of DFL office-holders will be able to right the ship without outside intervention(s). I welcome and wholeheartedly endorse Patrick Coolican's Tuesday suggestion in Minnesota Reformer that we DFLers might be better served by someone stepping forward to "Primary" Walz. Even if he survived the competition, at least it would force him to start talking like a guy who has failures to explain, BEFORE the eventual GOP nominee... well... forces him to start talking like a guy who has failures to explain...
Thanks so much for this summary! I was not aware how close all of this came to Frey. This state desperately needs accountability.
Excellent breakdown of the web of connections here, really brings clarity to a complicated situation. The pattern you've mapped out isnt just about individual bad actors but speaks to somethng deeper about how vendor oversight structurally fails when there's no real accountability framework. What strikes me is how the "bee-watcher" metaphor captures exactly the problem with cascading oversight that doesn't actually prevent fraud, just adds layers of bureaucracy. It suggests we might need fewer watchers but bettr incentive structures that make fraud detection everyone's responsiblity rather than another delegated task.
And news stories about Rep. Mahamoud and Sen Fateh highlight the concern.
Representative Mahamoud was CEO of treatment center that lost several million
"DFLHouse candidate touts experience as administrator of treatment center that filed for bankruptcy"
See article BY: DEENA WINTER - JULY 16, 2024 5:49 PM
Minnesota Reformer
Earlie Fateh Complaint
"Ethics committee upholds complaint against Sen. Omar Fateh, dismisses others."
By:
Max Nesterak July 27,2022 Minnesota Reformer
-
Thanks for the refresher; I remember sending an email to Frey's office on the subject of Osman, and receiving no reply. Which I took as a sign he will ignore this until when and if Osman is actually found guilty of something. Osman's council position is perfectly positioned to influence contracts, which seems like an elephant in the room given his history.
I hope that a candidate from this last cycle like Alejandro Richardson will run again for another position. Maybe not mayor. Maybe city council. I got the impression he would not fall prey to this kind of ridiculousness.
Terry - you inpired me to write this https://catchgroove.substack.com/p/minnesota-social-services-fraud?r=5hgtj