The working relationship with a laundry provider, employed by migrant-assistance program Casa Alitas, was dissolved in May owing to a discovered conflict of interest. Party to this transaction was the former leader of Casa Alitas, Diego Piña Lopez, whose mother owns the contentious vendor, as stated by the representatives of Pima County last Thursday.
As reported by the Arizona Daily Star, this vendor, apart from operating without a formal agreement, was charging higher rates than usual and was appointed without following the proper bid comparison process. The insider connection wasn’t known until The New Republic brought it to light on Thursday, revealing that Amado Laundry Service in Amado, held by Irene A.G. Piña, mother of ex- director Diego Piña Lopez, had accrued nearly $412,000 in laundry service fees from Tucson-based Casa Alitas, prior to discontinuing their agreement.
Elena Dwyre, CEO of Catholic Community Services, by which Casa Alitas is managed, admitted to the Arizona Daily Star that although Amado Laundry Service had served Casa Alitas as per the agreed terms, their charges were considerably higher than competing service providers in the market.
Upon an internal audit revealing clashing interests and issues with procurement, Piña Lopez tendered his resignation along with his superior, Teresa Cavendish, the operations head at Catholic Community Services in May. In light of these developments, County Supervisor Steve Christy raised concerns regarding the transparent practices at Catholic Community Service and supervision of federal funds at Pima County that are utilized for migrant aid.
Pima County Administrator, Jan Lesher, revealed to the Board of Supervisors on Thursday that a county review indicated no other concerns related to procurement at Catholic Community Services. However, she pledged that should any financial inconsistencies come to their attention, the federal funder would be apprised immediately.
In asserting that the Catholic agency’s intention was complete transparency regarding these procurement issues, Dwyre commented on the same. She emphasized that such instances offer a chance for reflection and results in improved functioning. It was thanks to their existing system that they were able to identify this conflict, she added.
After being apprised of the concerns surrounding contract dealings, Lesher promptly reported the matter to the county Board of Supervisors as well as the federal government that is responsible for the region’s migrant aid funding. However, the memo did not include details about Irene’s relationship to Piña Lopez.
Sharing her disappointment about the contract situation, Lesher said that they were always hopeful of setting the benchmark in their field of work. She emphasized their determination to carry out functions within the ambit of guidelines and laws, and reiterated their prompt action in informing all parties concerned once the issue was flagged.
Due to these concerns, Pima County ceased all payments to Amado Laundry Service. However, it had previously funded Catholic Community Services over $347,000 in federal funds for laundry services. The New Republic reported that Amado Laundry Service began its operation by billing Casa Alitas in March 2023, even though it was officially registered as an LLC with the Arizona Corporation Commission in May 2023.
Since 2019, Pima County has been responsible for handling federal funds assigned for the region’s migrant assistance effort. In this capacity, it has managed around $93 million to cater to food and shelter services, transportation logistics, and miscellaneous requirements.
Casa Alitas volunteer, Joy Tucker, has shed light on how the organization ended up with Amado Laundry Service. According to Tucker, there was a shortage of laundry vendors in Tucson in early 2023, which led Piña Lopez to recommend his mother’s business to his supervisor, Cavendish.
The CEO of Catholic Community Services, in speaking of the unexpected vendor issue, clarified that there was no intent of fraudulence. Reflecting on the scenario, she believed it was merely a poor judgment call by Piña Lopez and Cavendish, who were largely committed to their mission.
Lastly, the nonprofit has shifted its focus, emphasizing families with children under 10 and other vulnerable individuals such as expecting mothers. Contrarily, this change was decided prior to the procurement issues, Dwyre noted, hence was not affected by these events. As County Supervisors opined about the matter, they wished such issues would surface earlier to facilitate better discussion and subsequent actions.