Article By Frank Bergman
A newly released undercover video is raising serious concerns about oversight and accountability in California, after a top official in the state controller’s office admitted that fraud is widespread across government programs and agencies.
Bismarck Obando, press secretary to State Controller Malia Cohen (D-CA), acknowledged in the footage that fraud exists throughout the state and suggested that weak auditing practices are allowing it to continue unchecked.
‘Fraud Everywhere’ Admission Raises Alarms
When asked directly whether fraud is taking place in California, Obando did not hesitate.
“Everywhere,” he said, pointing to “cities, counties, special districts, hospitals, insurance companies.”
Pressed further, he doubled down on the claim.
“I mean, we’re like the fourth-biggest economy in the entire world. So yes, there’s money to be found,” he said.
Obando also confirmed there is “100 percent” fraud occurring in the state when asked about the scope of the issue.
Lack of Audits Blamed on Staffing Cuts
The footage also highlights concerns about the state’s ability to detect and prevent fraud in the first place.
Obando said the controller’s office has only completed audits that are required by law and lacks the staffing needed to conduct broader oversight.
“Instead of funding us, they cut us,” he said.
“They keep cutting our auditing teams.”
He added that state agencies often resist scrutiny.
“None of them want us to go in there and audit them,” he said.
According to Obando, even when the office seeks to expand auditing efforts, lawmakers have not provided the necessary resources.
“The legislation hasn’t given them to us because they don’t want to find out what the deal is,” he said.
Weak Accountability Leaves Fraud Unchecked
Obando also suggested that even when fraud is identified, enforcement is limited.
“People get fired,” he said.
“But there’s not much you can do because you can’t really track the money.
“Once you catch the debit out, what are you going to do with it?”
He pointed to broader issues of overspending and lack of financial accountability, emphasizing that audits are a critical tool that is currently underutilized.
Homeless Spending and Oversight Under Scrutiny
The report also touched on California’s ongoing homelessness crisis, which has drawn scrutiny over how taxpayer funds are being spent.
Obando acknowledged gaps in the state’s approach.
“See, the thing is, there’s no statewide homelessness plan,” he said.
He noted that while a new agency has been created, its role is largely administrative.
“There’s not a plan for how we’re going to fix this,” he said.
WATCH:
Journalist James O’Keefe, whose group released the video, argued the findings reflect deeper systemic issues.
“They can’t conduct the audits because they don’t have the resources,” O’Keefe said.
“Well, they have a lot of resources.
“Fraud is happening.
“Fraud is very real.
“Overspending is happening.
“We’ve just shown you.”
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