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Staples, Inc. Message Board

  • twomules80 twomules80 Sep 8, 2011 5:48 PM Flag

    Office Depot Assails the Competence of the Dallas Auditor and Detroit Schools IG

    Office Depot Assails the Competence of the Dallas Auditor and Detroit Schools IG

    RTFS Financial News Feed--Dallas TX; Detroit MI (September 7, 2011): Office Depot has responded to recent audit reports published by Dallas County (TX) and Detroit Public Schools (DPS) alleging millions in overcharges on the U.S. Communities national office and school supply contract. The contract advertises Office Depot’s very lowest aggregate prices for state and local agencies nationally. Dallas County’s report claims $1.8 million in overcharges while the DPS IG report claims $5.2 million in overcharges by not offering the required lowest pricing.

    In a nut shell the office supply giant has been quoted as saying neither the Dallas County Auditor nor the Detroit Public Schools Inspector General (IG) have the competence to evaluate large national office supply contracts. Office Depot has called the reports “outlandish” and unduly influenced by whistleblower David Sherwin an ex-Office Depot employee. Office Depot has called the DPS IG and Dallas County auditor’s reports flawed, based on faulty methodology and lacking adherence to proper government auditing standards.

    Office Depot’s inflammatory rhetoric towards Detroit and Dallas is reminiscent of the same rhetoric that Office Depot used in attacking the audit report of the City/County of San Francisco’s findings of $5.75 million in overcharges. Office Depot also alleged that whistleblower David Sherwin had undue influence on that audit also. Eventually after the San Francisco District Attorney threatened debarment, a civil suit and grand jury action, Office Depot settled, refunding $4.25 million.

    Given Office Depot’s belligerent stance towards both DPS and Dallas County, it seems that both will need to follow the proven path of San Francisco and publically threaten debarment, a civil suit and possible grand jury action.

    Other news reports have stated that Office Depot's U.S. Communities contracts are currently being investigated by the United States Department of Justice and the Attorney Generals of California, Texas, Ohio and New York.

    Compiled by newswires and staff reports-updated 2311 EDT by RTFS

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