Updated
Updated · Mission Local · Jun 23
San Francisco Audit Finds Tajel Shah Steered $7 Million Contract to Friend's Firm
Updated
Updated · Mission Local · Jun 23

San Francisco Audit Finds Tajel Shah Steered $7 Million Contract to Friend's Firm

1 articles · Updated · Mission Local · Jun 23

Summary

  • $7 million in business-tax software work was improperly steered to Mechanical Orchard after former chief assistant treasurer Tajel Shah bypassed ethics and procurement rules, a joint city investigation found Tuesday.
  • A $65,000 discovery project gave the company an inside track: Shah shared nonpublic information, skipped qualification checks, changed scoring to lift Mechanical Orchard, and inflated rivals' costs, according to the audit.
  • The report also cited undisclosed ties between Shah and then-Chief Revenue Officer Roque Versace, while subcontractor Ratio PBC later hired Shah's niece, adding to the conflict-of-interest concerns.
  • City investigators said weak internal checks enabled the misconduct, describing Shah's management style as intimidating and discouraging staff from raising concerns through HR.
  • Mechanical Orchard withdrew from contract talks before the allegations became public last year; Shah was later released, the original contract will be closed, and the city says it will restart bidding.

Insights

After a rigged AI contract, can San Francisco ensure its tech procurement is fair?
Beyond one official's misconduct, how will San Francisco fix a system that enabled it?