By Adam Pagnucco.
Inspector General Megan Davey Limarzi has released a report finding that a housing department manager “participated in the hiring of a relative without disclosing their relationship,” a violation of county personnel regulations. When the Office of Inspector General (OIG) questioned the manager and employee about the hiring, both initially lied and later admitted to being related. The current report follows a finding by the OIG of nepotism involving housing department contract employees two years ago.
The OIG’s report begins:
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The Office of the Inspector General (OIG) recently concluded an investigation based on an anonymous complaint alleging misconduct by a manager at the Department of Housing and Community Affairs (DHCA). The complaint alleged that the manager has hired several friends and family members and shown favoritism by circumventing the department’s established seniority list to offer overtime assignments to select individuals.
Our investigation did not find evidence that the manager circumvented established procedures to disproportionately grant overtime to individuals named in the complaint. However, we found that the manager participated in the hiring of a relative without disclosing their relationship, a violation of Montgomery County Personnel Regulation (MCPR) 3-6. Additionally, the relative currently works in a section overseen by the subject manager.
When initially interviewed by OIG investigators, both the manager and employee lied and denied being related. Montgomery County Code, Section 2-151(m)(2) states that “giving false or misleading information in connection with any audit, study, or investigation” is a class A violation under county law. Montgomery County Personnel Regulations also designate in pertinent part that an employee who fails to cooperate or provide information when they are the subject of an investigation can be subject to disciplinary action.
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The OIG later elaborated on the lying by the employees. According to the report:
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During an interview with OIG investigators, the manager denied being related to any DHCA employees. Subsequent investigation by OIG staff found evidence indicating that one of the employees is related by marriage to the manager and that the manager provided false information in response to OIG questions. During a second meeting with OIG investigators, the manager provided a written statement admitting that they are related to an employee in their section. The manager also told OIG investigators that they were a member of their relative’s interview panel when they applied for their current position. The manager said they did not disclose the relationship to anyone in DHCA during the employee’s hiring process or since.
The employee was interviewed by the OIG and denied being related to the subject manager. In a subsequent interview with OIG investigators, the employee recanted their previous statements and admitted that they are related to the manager by marriage. The employee confirmed that the manager was a member of their interview panel.
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This is not the first time that the OIG has found nepotism in the housing department. In the report, the OIG noted:
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Nepotism in hiring at DHCA was the subject of a March 25, 2024, OIG Management Alert. At the time, we found that DHCA employed three children and a sibling of four separate DHCA employees pursuant to four purchase orders with a County contractor. As these individuals were contract employees and not under the direct “jurisdiction or control” of a relative, it did not appear to be a violation of the County’s anti-nepotism law. However, we cautioned that nepotism in the workplace can lead to the hiring of less qualified workers, a lack of diversity, inequities in the hiring process, increased risk of fraud, and dissatisfaction among employees who believe the hiring process is unfair, which was the basis of the most recent complaint.
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In a response to the OIG, Chief Administrative Officer Rich Madaleno wrote, “I have discussed these matters with DHCA leadership. We are undertaking all necessary means to ensure all responsible personnel involved are thoroughly investigated and that appropriate corrective action is taken.”