A security company previously owned by Deputy Mayor Philip Banks has secured a $150-million contract with the city Housing Authority. The Adams administration has approved this company, Overwatch Services, to qualify for no-bid security contracts at the city’s growing network of migrant shelters. The Department of Citywide Administrative Services (DCAS) added Overwatch Services to a list of pre-qualified minority- and women-owned businesses eligible for contracts up to $1.5 million without the usual competitive bidding process. Michael Garner, the city’s chief diversity officer, has been instrumental in the city’s MWBE program and the hiring of security firms for the shelter system.
Federal authorities confiscated the cell phones of top Adams’ aides, including Philip Banks, First Deputy Mayor Sheena Wright, schools Chancellor David Banks, and senior aide Timothy Pearson in September. No wrongdoing has been accused of these aides. This is the fourth instance of contract issues involving top Adams’ administration officials. Banks and his brothers have been linked to various business dealings, raising concerns about potential conflicts of interest.
Philip Banks purchased Overwatch Services after resigning from the NYPD in 2014. The company was later renamed City Safe Partners and listed Banks as a partner. Despite Banks’ claims of divesting from the company in 2018, state records indicate his continued involvement until mid-2020. The company’s ties to Adams and lobbying efforts have raised questions about transparency and accountability in city contracts.
The influx of asylum seekers in New York City has increased the demand for security guard firms to manage the strain on the shelter system. The involvement of Garner, head of the mayor’s office of MWBE, in lobbying efforts by security firms like Nature’s Finest Security, LLC, has raised concerns about favoritism and influence in the bidding process. Lobbying activities to secure contracts under the MWBE program overseen by Garner have highlighted potential conflicts of interest and lack of transparency in city contracting practices.
The appointment of Louis Molina as the new DCAS Commissioner in June raises hopes for increased accountability and oversight in the awarding of contracts to pre-qualified MWBE security guard firms. The city’s efforts to promote diversity and inclusion in contracting must be balanced with transparency and fairness to ensure that taxpayer funds are used effectively and ethically. The ongoing investigation into contract issues involving top officials underscores the need for greater scrutiny and oversight in city contracting processes to prevent conflicts of interest and ensure accountability in public spending.
