Audit: North Carolina ABC Commission Wasted Millions In Taxpayer Money

Audit: North Carolina ABC Commission Wasted Millions In Taxpayer Money

3:31pm Aug 09, 2018
Bottles line the shelves at a local ABC store in Winston-Salem. SEAN BUETER/WFDD

North Carolina’s Alcoholic Beverage Commission wasted millions of taxpayer dollars due to bad management, according to a new report from the state auditor.

The audit found that ABC lost nearly $1 million per year over the last 13 years, due in part to badly handled contracts.

At its core, this issue is about storage. According to the findings from State Auditor Beth Wood’s office, the department consistently overpaid for warehouse space over the past decade.

In addition, ABC spent more than $2 million on space that it rented, but subsequently never used.

What’s more, the agency did not adequately monitor some of its finances, and was underpaid to the tune of nearly $300,000 over the last two years.

In its response to the audit, ABC Chairman Zander Guy did not dispute any of the findings, and committed to implementing changes that would put it in line with the state’s recommended practices.

"While I am not responsible for the actions that occurred before my tenure, as the current chair I will take responsibility for the future oversight and management of this organization," Guy said.

Guy was appointed to the commission in 2017 under then newly elected Governor Roy Cooper. 

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