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
KPRC 2 Investigates exposes an alleged Houston Public Works fraud scheme in which higher-ranking employees approved hundreds of thousands of dollars in questionable, taxpayer-funded tool purchases, raising serious concerns about oversight and waste. (Copyright 2026 by KPRC Click2Houston – All rights reserved.)
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.
Houston Public Works employees accused of using city cards to buy, resell tools. KPRC2 tracked $346,000 in duplicate tool purchases. (Copyright 2026 by KPRC Click2Houston – All rights reserved.)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.
Houston Public Works employees accused of using city cards to buy, resell tools. KPRC2 tracked $346,000 in duplicate tool purchases. (Copyright 2026 by KPRC Click2Houston – All rights reserved.)
“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 at least one employee 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 same 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 AllegationsKPRC 2 Investigates exposes an alleged Houston Public Works fraud scheme in which higher-ranking employees approved hundreds of thousands of dollars in questionable, taxpayer-funded tool purchases, raising serious concerns about oversight and waste. (Copyright 2026 by KPRC Click2Houston – All rights reserved.)
We aren’t revealing the man’s name because he hasn’t been criminally charged. We can tell you that the Public Works maintenance manager has worked for the city since 2016, rising through the ranks from utility worker to maintenance manager. Nine days after we requested documents about his card purchases and the disposition of the tools, the city sent him home on what it called “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.
KPRC 2 Investigates exposes an alleged Houston Public Works fraud scheme in which higher-ranking employees approved hundreds of thousands of dollars in questionable, taxpayer-funded tool purchases, raising serious concerns about oversight and waste. (Copyright 2026 by KPRC Click2Houston – All rights reserved.)
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.
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 many of the purchases now under scrutiny.
Law Enforcement Investigation: Houston Tool Theft Case Referred to Police
Two 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.
Houston Public Works employees accused of using city cards to buy, resell tools. KPRC2 tracked $346,000 in duplicate tool purchases. (Copyright 2026 by KPRC Click2Houston – All rights reserved.)
“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.
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.
Copyright 2026 by KPRC Click2Houston – All rights reserved.