Pima County Under Fire for Casa Alitas Shelter Scandal: Conflict of Interest and Overcharges Exposed

Pima County is now under scrutiny as a federal investigation looms over Catholic Community Services (CCS), which oversees the Casa Alitas shelters for migrants. The concern stems from a revelation that a laundry company, Amado Laundry Service, owned by the mother of CCS’s director, received payments exceeding $400,000 without an appropriate contract.

Following this disclosure in May, the Pima County Attorney’s Office conducted a review and concluded no civil or criminal penalties were imminent. Nonetheless, U.S. Representative Juan Ciscomani called for a federal investigation into the use of federal funds by CCS on Wednesday.

Despite repeated inquiries, county officials have been reticent about releasing records related to the procurement issues. The Tucson Sentinel has been waiting since July 2 for public records detailing how Pima County learned of and responded to these concerns. Arizona law mandates timely access to such documents, yet none have been provided thus far.

In recent years, CCS has been a significant player in Pima County’s efforts to shelter migrants, receiving nearly $77 million in federal funding to assist over 500,000 people. Further, the county secured an additional $21.8 million from Homeland Security earlier this year to continue providing sanctuary for asylum seekers.

The collaborative program was designed to prevent migrants from being released onto the streets after processing by U.S. Customs and Border Protection (CBP). Recent statistics reveal that since last September, thousands of individuals have been successfully transported from Cochise and Santa Cruz counties to Pima County.

As federal funding dwindled, Pima County Administrator Jan Lesher sought to curtail shelter operations, signaling a shift to minimize reliance on the general fund. Notably, the county previously spent nearly $1 million weekly to support up to 1,000 individuals daily, a cost expected to decrease in response to declining CBP releases.

In May, concerns emerged when Lesher informed the Board of Supervisors that an internal CCS audit revealed two employees had violated the nonprofit’s conflict of interest and purchasing regulations. Elena Dwyre, executive of CCS, acknowledged the organization had been overcharged for laundry services and indicated that the vendor had operated without a proper contract.

Amado Laundry Service, owned by Irene A.G. Piña, charged Catholic Community Services approximately $412,000 prior to the termination of their relationship. Following the audit, Piña Lopez resigned from his position, and his supervisor was terminated. Both declined to discuss their exits.

In a statement, Dwyre emphasized CCS’s commitment to integrity and fiscal responsibility. Despite discovering the billing discrepancies, she noted that CCS promptly reported the incident to both the county and the Diocese of Tucson.

However, Lesher maintained that CCS’s procurement error was an isolated incident. The administration reassured the public that CCS remains a trusted partner and that changes had already been instituted to prevent future issues.

As part of the ongoing discussions, Ciscomani expressed his concerns over the management of federal dollars, claiming that the rate of fund usage at Casa Alitas was unusually high. He emphasized the necessity for transparency regarding the allocation of taxpayer dollars.

Amid these accusations, Pima County continues to applaud its own management of federal grants, asserting that fiscal accountability is paramount. Lesher reiterated the county’s commitment to conducting thorough audits and maintaining solid internal controls as they work alongside CCS.

As the debate unfolds over the appropriate handling of federal funds, the implications of the audit findings raise questions about the future of the Casa Alitas program and the broader response to the ongoing migrant crisis in Southern Arizona. The community watches with bated breath as investigations proceed and the true extent of these allegations is laid bare.