OIG Follows Up on Audit of BACP Medallion Sales and Taxicab Inspections

FOR IMMEDIATE RELEASE: November 23, 2015

CONTACT: (773) 478-0534, Rachel Leven

OIG Follows Up on Audit of BACP Medallion Sales and Taxicab Inspections

The City of Chicago Office of Inspector General (OIG) has released a report in follow-up to a March 2015 audit of Business Affairs and Consumer Protection (BACP) taxicab regulatory compliance. OIG’s audit examined taxicab regulation during 2013, focusing on the medallion auction process and taxicab safety inspections.

Based on BACP’s response to the follow-up inquiry, OIG concludes that the Department has addressed all of recommendations outlined in the OIG audit. Specifically, BACP reports that it made revisions to its inspection guide to specify the visual and manual brake tests used in place of its broken brake machine, created a weekly internal review of all vehicles with past due inspection dates, and established an overt audit program, during which a supervisor shadows one inspection by each inspector once a month.

However, BACP has yet to finalize any sales from its 2013 medallion auction, a full two years after bidding closed. Therefore, OIG is unable to verify that BACP was in full compliance with the rules and regulations of the auction process.

“The lagging closure of the 2013 medallion sales,” said Inspector General Joe Ferguson, “continues to prevent OIG from evaluating whether the City fully and effectively implements its well-designed auction process. However, the Department’s response to our audit shows that BACP has improved service to taxpayers through tighter taxicab inspections.”

Both the original audit report and the full follow-up report can be found online at the OIG website: bit.ly/BACPTM2

Follow OIG on Twitter @ChicagoOIG for the latest information on how OIG continues to fight waste, fraud, abuse, and inefficiency in Chicago government.

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