Millions of taxpayer dollars unaccounted for from Pittsburgh's finances, DA says

Stephen Zappala provided an update on the Allegheny County District Attorney's Office's investigation into alleged stolen city of Pittsburgh taxpayer money. 

Zappala said Ed Gainey's administration paid money to different organizations, but when it came time for some to provide proof of how the money was spent, trouble started. The DA said "millions" of dollars are unaccounted for. 

Now, investigators with the district attorney's office will pore over thousands of financial documents. This all stems from a March search warrant around the prior city administration under former Mayor Gainey.

"Just prior to arguing the last extension of the warrant, we received 7,000 documents," Zappala said.

Zappala said his team is looking for what he is calling "work product."   

"So for the amount of money that was paid out to different people, what kind of work product did the taxpayers get in return? That's oversimplified, but that's the approach that we're taking," Zappala said. 

When asked if he's found anything to indicate money had been inappropriately accounted for or taken, he said, "Absolutely." 

There are millions of dollars unaccounted for from different accounts, contracts and schemes, he said. The current city administration is fully cooperating, and the DA says these contracts originate from two to three years ago.

"These are contracts for really important purposes: helping kids, helping seniors. It targets the minority community substantially, and these services were not being provided," Zappala said. 

He declined to speculate on criminal charges or who could be held accountable, but he said there are countless investigative agencies taking a look at this. So far, he says the documents show the money was spent, but not for the intended purposes.

"All personal stuff, not the work of the taxpayers, not the work of the contract," Zappala said. 

Zappala said the investigation could take months.