ABC Commission approves more money for company criticized for waste in audit

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.

[PAST COVERAGE: Audit finds problems managing alcohol warehouse contract]

The state auditors report was also critical of the ABC Commission’s lack of thoroughness in evaluating previous contract increases.

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.

The commission said it had to increase the contract with LB&B because the company is delivering more liquor.

Cox Media Group