$10M Bid-Rigging Probe - Official Suspended
Published September 26, 2025
The Facts
San Francisco's chief assistant treasurer, Tajel Shah, was placed on paid leave Thursday following a whistleblower complaint alleging bid-rigging and conflicts of interest in a nearly $10 million contract to modernize the city's business tax system.
According to an investigation by Josh Koehn at The SF Standard, the complaint alleges Shah failed to disclose a close friendship with an executive at the winning firm, Mechanical Orchard, and that the firm's sister company hired her niece shortly before bidding began. The whistleblower further alleges Shah instructed staff to revise scoring sheets in ways that benefited Mechanical Orchard, helping the company advance from fifth place to ultimately win the contract
The whistleblower also accused Shah of pressuring staff to overlook deficiencies in Mechanical Orchard's proposal and creating an environment where employees felt unable to voice concerns about the irregular process. The contractor withdrew from the deal one day before Shah's suspension.
The City Attorney and Controller's offices have launched an independent review.
The Context
The now-cancelled contract was intended to replace an aging system that manages tax collection for the city's 100,000+ registered businesses.
The GrowSF Take
The city's whistleblower protections are strong, and it's fantastic that an employee felt safe to come forward. Additionally, the reporting from Josh Koehn at the Standard helped bring this issue to light, and we commend his work.