Senior Fulton County officials learned of possible contracting abuses in the Information Technology Department nearly a decade before they were made public in recent audits, but decided against a call for an outside investigation, documents obtained by The Atlanta Journal-Constitution show.

In 2005, IT employees complained that the department director at the time skirted purchasing rules to award contracts to favored companies, wasting taxpayer money. An investigator did not determine whether the allegations were true, but recommended the county hire an accounting firm to delve deeper.

Instead, then-County Manager Tom Andrews sought an internal review. That review found no violations of state or county purchasing rules.

Nine years later, two recent audits have found possible abuses similar to those outlined in the 2005 employees’ complaint. Two of the companies that are the focus of the current audits – Vixio Technology and Consilium Consulting – were cited by employees in the previous investigation.

The Board of Commissioners recently agreed to spend $595,000 to assess IT operations, including issues raised in the audits. But some Fulton officials wonder whether problems that auditors say have cost taxpayers tens of thousands of dollars in recent years could have been stopped a decade ago.

“I’m disturbed to find out it’s gone on longer than we knew about,” said County Commissioner Joan Garner, who requested the recent audits.

Andrews, now city manager in Annapolis, Md., said he was satisfied with the internal review and would have considered hiring an outside accountant if the purchasing director had found any violations.

The August 2005 complaint against then-IT Director Robert Taylor dealt with accusations of abusive behavior and racial discrimination.

In December of that year, a report by the county’s Office of Equal Employment Opportunity confirmed some of those accusations and dismissed others. Andrews later suspended Taylor for five days, documents show. In 2007, he fired Taylor for failing to make promised changes to address the treatment of employees, according to documents from an unsuccessful lawsuit Taylor filed against the county.

The investigator also reviewed employee concerns related to contracting. According to the EEO report, employees said Taylor “fosters an environment which results in redundant product purchases” and used deceptive procurement practices.

They said some companies received a series of contracts worth just under $50,000 – the threshold that would have required a full bidding process and review by the Board of Commissioners. Current and former managers told the investigator Taylor advised contractors to get their price below $50,000 to avoid the commission, speed up the procurement process and save the department money.

Employees said some contracts resulted in the purchase of “stripped down” products that didn’t meet county needs and cost more money in the long run.

Two of the companies cited were Vixio Technology and Consilium Consulting.

In his review of employee complaints, then-Purchasing Director Jerome Noble found Vixio received 34 separate purchase orders worth less than $50,000 from 2001 to 2005. Many of them were “sole source” purchases of proprietary software, meaning they were not open to competition. Others were done through “requests for quotes,” which are posted on the county web site and e-mailed to registered vendors.

Noble found Consilium received nine purchase orders worth less than $50,000 during the same period, all through the request-for-quotes process.

Michael Solis, Consilium’s attorney, said the company won contracts that were open to other vendors.

“It’s not the case that Consilium is going in there and nickel and diming the county,” Solis said.

Vixio CEO Ed Ukaonu declined to comment.

Taylor told the AJC last week he never gave favorable treatment to vendors. But he said he did use the $50,000 threshold as leverage with vendors to try to save the county money – a practice he said was common at the county.

“I swear on my mama’s grave, I did not use that system for any favoritism like that,” Taylor said. “My luck, I’d get caught and be behind bars.”

In a 2006 memo to Andrews, Taylor criticized the investigation for recounting unsubstantiated claims, calling it “extremely troubling.”

Noble’s review found no violations of procurement rules. Andrews said a decision to hire an outside accountant ultimately would have fallen to county commissioners, who he said received a copy of the EEO report. He said he does not recall discussing an outside investigation with commissioners.

Former County Commissioner Bill Edwards said he doesn’t recall the EEO investigation. But he said commissioners rely on their department heads to offer sound advice when it comes to something as technical as information technology contracts.

“I have to depend on the department heads and the professionals,” he said. “Robert Taylor is supposed to be a professional in that field. Tom Andrews is supposed to be a professional in management.”

According to recent audits, the IT Department may have evaded county purchasing rules by awarding contracts to Vixio Technology just under the $50,000 threshold.

The auditor also found several problems – including overbilling and excessive salaries – involving Consilium contracts. The company has said it has done nothing wrong.

Nine years after the EEO recommendation, the Fulton IT Department will finally get an external review.

County commissioners recently agreed to pay consultant Accenture LLP $595,000 for a broad review of the department. As a first step, the company will address issues raised in the recent audits.

Garner said she wants to ensure the consultants address all of the issues raised in the audits.

“I’m really pushing the county manager to make sure we get to the bottom of these issues,” she said.