HOUSTON — Everyone loves a bargain and a good get for a great price. But what if the deal is part of an exclusive sale, and you’re left out?
That’s what happened at the City of Houston Housing and Community Development Department last spring, according to an analysis of city records by KHOU 11 Investigates.
The department bought computer equipment in 2019 for a Hurricane Harvey outreach program, and after that project ran its course, the electronic devices were no longer needed. The department’s director decided to offer his employees an opportunity to buy the surplus items.
“Oh, (the deals) were good!” said one former employee who asked not to be identified.
The worker recalled walking into a conference room-turned-showroom at the housing agency’s downtown offices, where refurbished iPads were selling for $10, laptops for $75, and computer monitors for $25.
“That’s crazy to me,” the former employee said. “And it was cash only. It was sketchy how they did everything.”
The man behind the employee-only sale is Keith Bynam, director of the Housing and Community Development Department, and a 30-year veteran employee of the City of Houston. Bynam said he thought he had the authority to approve such a sale.
“I felt it was a good idea because of the intent of trying to provide our employees with some equipment,” Bynam said. “A number of them were trying to provide equipment for their children, their grandchildren.”
Records show employees took advantage of the exclusive deals. Last March and April, they bought a total of 174 laptops, iPads and monitors at deep discounts—about six cents on the dollar of their original price.
The original purchase prices of the electronics were about $195 for the refurbished iPad Airs; $1,495 for the Dell Latitude laptops; and $234 for the Dell monitors, according to department invoices.
When questioned by KHOU 11 Investigates, Bynam conceded his workers got an inside deal and he chose the prices.
“You’re, you’re correct,” he said.
The City of Houston has a policy for what happens when city assets are no longer needed.
“The way it’s supposed to work is, it’s really simple,” Charles Jackson said.
As the deputy director of operations for the city’s Administration and Regulatory Affairs Department, he oversees the disposal of surplus property.
Jackson said surplus items from any city agency should be taken to a city-owned warehouse, where ARA workers sort and tag everything and then put it up for auction online.
Jackson said his staff conducts about 2,000 public auctions a year and any member of the public can bid.
“We want to make sure that we have a process that's transparent and a process where it maximizes the return to the city,” he said.
The then-mayor, Sylvester Turner, got wind that the process wasn’t followed and fired off a memo on the last day of the private sale, making it clear that surplus property “cannot be sold directly to city employees.” The same day, Bynam emailed his staff, “I was wrong! In order to correct that error, ALL ITEMS MUST BE RETURNED IMMEDIATELY!”
The city housing agency’s Chief Financial Officer Temika Jones followed that up with her email a week later.
“Employees who purchased furniture and equipment are asked to return those items and receive a refund,” Jones wrote.
Records show the CFO did not practice what she preached. Jones purchased two laptop computers and a portable monitor, but never returned those items to the city. Seven other employees in management positions also failed to return what they purchased, according to records reviewed by KHOU 11 Investigates.
In the end, the city got back only 19% of electronics sold.
“By the time, individuals were told that they needed to return it, if it was no longer in their possession, there was not much that we could do about that,” Bynam said.
What happened to those electronics is unknown.
“I don't know where it went and I didn't inquire about where it went,” he said.
Bynam said the prices for the computer equipment were reasonable given their age. He claimed most of the iPads and laptops had reached the end of their useful life when his agency put them up for sale.
“The intent was good,” he said. “Even though it was wrong, the intent was good. I recognize that it was the wrong decision and I’ve lived up to that.”
Bynam said he nor anyone on his staff was disciplined for their handling of city surplus property. When reached by phone, Jones had no comment.