Hundreds of thousands of dollars down the drain.
KPRC 2 Investigates reporter Amy Davis is uncovering years of alleged theft right under the noses of city leaders.
Higher-ranking Houston Public Works employees signed off on purchases paid for with tax dollars.
After years of investigating Houston’s water department in ‘DRAINED’, we’re back because what we found shows Public Works leaders are still struggling to ferret out the fraud draining all of us.
Inside Houston’s McKinney Warehouse: How City Tools Were Allegedly Stolen
When Houston Public Works crews need tools or supplies, they request them from the department’s McKinney warehouse. Through multiple public information requests, we obtained records showing all the tools a maintenance manager received from the warehouse since 2022.
City-Issued Credit Card Abuse: $346,000 in Duplicate Tool Purchases
At the same time, our investigation found the same manager used his city-issued credit card to buy tens of thousands of dollars of identical tools from Home Depot and Lowe’s — purchases totaling $346,537.94, according to the credit card statements obtained by the station.
“There was a scheme, a couple of employees that we’re aware of that, for a series of years, were using a P-Card to make purchases of tools and then selling those tools on their own and pocketing the money,” said Randy Macchi, Houston Public Works director.
Records and social media posts reviewed by the station show that the maintenance manager listed three new Milwaukee drill sets for sale online, advertising an original price of $700 and selling them for $450.
Credit card statements reveal the employee had purchased the same drill set 190 times since December 2022.
Former Houston Public Works Employee Questioned on Missing Tools
Amy Davis asked that man, “Where did all those tools go?”
“To employees,” the man replied.
When Davis pointed out the lack of paperwork to corroborate his story, the man told her on camera, “If you want to speak to me, you’ve got to remove the camera.”
Houston Maintenance Manager Pulled Off Duty Amid Fraud Allegations
We aren’t revealing the man’s name because he hasn’t been criminally charged. We can tell you that he has worked for the city since 2016, rising through the ranks from utility worker to maintenance manager, earning more than $105,000 a year.
Nine days after we requested documents about his card purchases and the disposition of the tools, the city sent him home on what it calls “relief of duty.”
A city letter dated Sept. 12 informed the employee he would not be allowed to work but would continue to receive full pay and benefits while the city investigated allegations against him.
Between September 19th and February 6th, the city paid the maintenance manager $44.864.20 while he was under investigation. He resigned on January 30th.
The manager claims he repeatedly purchased so many tools because they either broke or were stolen. He says he was giving the tools to his subordinates. There are no records that reflect that; and the city can not find the tools he purchased.
Macchi says the proper procedure would have been for employees who needed tools to request them from the Public Works warehouse, where they are procured, stocked and tracked within the city.
Supervisors Under Scrutiny: Who Approved Questionable P-Card Purchases?
The city’s protocol requires supervisors to approve and sign off on their subordinates’ P-card purchases. KPRC2 found supervisors had signed off on the purchases now under scrutiny.
Davis questioned Houston Public Works director Randy Macchi about how the employee was able to buy so many tools without anyone questioning him.
This employee had the signature of his supervisor,” Davis told Macchi.
“Yeah- That’s exactly right,” Macchi replied.
Macchi told 2 Investigates there would be accountability. “There will be accountability all across the board,” he said.
Law Enforcement Investigation: Houston Tool Theft Case Referred to Police
Two of the accused employees resigned months after the city’s Office of Inspector General opened an investigation. The city referred the allegations to law enforcement and said police are actively investigating.
“I would say he certainly was not cleared of any wrongdoing. There’s a pretty good record here, at least from the city’s files, that what he did was wrong. The allegations were sustained. Again, that’s why we’ve referred it over to law enforcement,” said Macchi.
Lax City P-card Oversight
Our 2 Investigates analysis found in 2024 and 2025, 338 HPW employees had 425 p-cards.
Macchi said the duplicate cards for multiple employees were cancelled late last year. That was after Mayor John Whitmire hired Vincent & Elkins to conduct a city-wide efficiency study.
The study revealed $613 million dollars in p-card purchases didn’t comply with city standards.
The same day the Mayor presented the study at a City Council meeting, p-card statements show the accused maintenance manager charged $2900 on his purchase card for Dewalt tool kits he is accused of selling on the side.
“It is so revealing why Houstonians are frustrated, “ the Mayor said in February 2025. “And why I will not go to them and ask for additional resources until we, in my judgement, gain their confidence that we’re using their money wisely.”
Houston Public Works director Randy Macchi oversees some 4,000 employees. It is the largest city department; and one of only 2 that hires people with criminal records.
“Those are positions that, you know, for some of these folks on a second chance, they have a hard time getting another job,” Macchi explained. “But you know we need people to help fill potholes, to dig ditches, to clean lines out, et cetera. Not glamorous jobs in many instances, but it’s a way for some people to get a fresh start. “
We found employees with city credit cards with criminal convictions for burglary, sex crimes, possession of controlled substances, theft and fraud.
“Should we be entrusting those people with p-cards?” David asked Macchi.
“That is a process that we’ve already reviewed and is being reformed right now. In fact, since this came to light to me, really just a couple of weeks ago, we’ve been reviewing every individual who has a P card,” Macchi answered.
“And we’re talking folks that are many, many levels down in the organization from where I sit, right? But I personally am reviewing those things and asking those questions because we want to make sure that the right folks have them. And there’s really no excuse for... an excess.”
What’s Next: KPRC 2 Investigates Ongoing Fraud, Waste, and Abuse in Houston Public Works
KPRC2 will continue seeking additional answers about how the alleged fraud persisted and whether internal controls will be tightened to prevent future loss.
Have a news tip? Email Reporter Amy Davis at ADavis@kprc.com or Producer Andrea Slaydon at ASlaydon@kprc.com.