RALEIGH, N.C. — The North Carolina ABC Commission is giving more money to a company that was criticized by state auditors last year.
The commission voted to pay LB&B more money for every load of liquor it moves from one of its warehouses to a local ABC store. LB&B is headquartered in Maryland.
An investigation in 2018 showed the contract was poorly managed, with auditors noting the company’s poor management cost the state nearly $14 million over the course of nearly a decade.
The state auditors report was also critical of the ABC Commission’s lack of thoroughness in evaluating previous contract increases.
[PAST COVERAGE: Audit finds problems managing alcohol warehouse contract]
One of the ABC commissioners, Mike Herring, resigned following the audit, writing a scathing letter to Gov. Roy Cooper that called into question the audit’s findings.
[ [PAST COVERAGE: On the way out, ABC commissioner criticizes Gov. Cooper] ]
The commission said it had to increase the contract with LB&B because the company is delivering more liquor.