A small business owner in East New York said he was surprised his work with the city's public schools for food services was singled out by the city comptroller, who reprimanded the Department of Education for approving catering orders totaling $750,000 from his restaurant.
Andrew Walcott, owner of Fusion East, said he was simply fulfilling a steady stream of orders from over 100 public schools for food ordered from his Caribbean restaurant.
Now, he has been targeted with threats against himself and his business.
"I am hustling from school to school across the city," said Walcott, a minority and women-owned business enterprise (M/WBE) vendor. "I have between 100 to 200 schools from all over the city ordering from me, because I provide them with reasonably-priced, nutritious meals."
Since the story broke, Walcott says he has faced threats against himself and his business.
According to the NYC Comptroller’s 2023 annual report, the average value of a new contract awarded to a non-certified firm was about $4.56 million, while M/WBEs averaged just $511,000.
The scrutiny began after Comptroller Brad Lander shared DOE procurement records with amNewYork. On August 1, the outlet reported on a letter from the Comptroller’s Office to Deputy Comptroller for Contracts and Procurement Charlette Hamamgian. The letter cited 13 consecutive invoices from Fusion East for events between August 28 and September 6, 2024, totaling $19,998, all billed to Brownsville Collaborative Middle School.
The Comptroller’s Office said the DOE violated NYC Comptroller Directive #6 by approving spending above the per-school limit for meals.
Walcott, a veteran and an executive committee member of the Brooklyn Chamber of Commerce, said his average purchase order from each school is about $800 to $900, with a majority of orders focused on his $5 meal combo, which provides one protein, rice and a vegetable. He hires three to four drivers to deliver the orders to various locations in Brooklyn, the Bronx and Queens, and also operates two food trucks.
He said most orders from schools are for large celebrations, like graduation, prom, Juneteenth, and teacher appreciation events, and he suspects many outer borough schools seek him out because the food he provides is culturally appropriate for Black and Caribbean communities.
New York City Public Schools did not violate any non-contracted procurement rules, said Jenna Lyle, a DOE spokesperson.
“Financial responsibility is critical to New York City Public Schools, and we worked closely with the Comptroller’s team to respond to these concerns," Lyle said. "NYCPS implemented the necessary corrective action with this school, including a leadership team and administrative staff procurement training.”
“While we deeply regret the public outrage being misdirected at Fusion East, our concern remains over Department of Education’s lack of oversight over a million of taxpayer dollars being spent at a single restaurant. It is incumbent upon schools, not vendors, to adhere to Comptroller Directive 6 before making food purchases," said Chloe Chick, the Comptroller's spokesperson.
However, Walcott said he has now gotten a threatening email from an unidentified individual who told him to "watch his back," an incident that shook him enough to report to the police.
Walcott is the type of entrepreneur that we want to elevate, not tear down, said Randy Peers, president of the Brooklyn Chamber of Commerce, who recalled a moment when Walcott passed out free meals on Pitkin Avenue during the COVID-10 pandemic.
"If the DOE made a mistake, that's on them," he said. "Fusion East delivers for its customers, and one customer happens to be the DOE."
City Council Member Chris Banks said the Comptroller has "publicly vilified" Fusion East who categorized the catering orders as "waste of taxpayer's money."
"The contracts were fair and transparent," Banks said. "Instead of celebrating a local business that feeds our local teachers and schools, a Black business is labelled and destroyed."
Small business owners voiced their concern about the city’s limited engagement with Minority- and Women-Owned Business Enterprises (MWBEs). In May, several minority vendors working with the Department of Education (DOE) expressed frustration over new procurement rules that, they say, were poorly communicated—causing delays in contract approvals.
In fiscal year 2024, MWBEs received just 6% of the $34.6 billion in contracts awarded citywide, according to a report from the Comptroller’s Office.
Assemblymember Nikki Lucas accused Comptroller Brad Lander of “harming a quality business” by leaking information to the press instead of issuing a proper public statement.
“You picked the wrong business and community to pick on,” Lucas said, calling for Lander to issue a public apology.
Some fear the controversy could jeopardize the future of Fusion East, a local restaurant whose owner is planning to open a second location in Brownsville.
“Will city agencies now avoid doing business with Fusion East in the future?” asked Peers, suggesting the move may have been a political shot at the mayor, who oversees the city’s public schools.
