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Audit: Nearly $14 million wasted in ABC liquor contract

August 9, 2018 · Travis Fain, WRAL

RALEIGH, N.C. — Poor contract management and too much warehouse space cost the state nearly $14 million over 13 years, according to a state audit of Alcoholic Beverage Control Commission operations released Thursday.

The ABC Commission repeatedly allowed annual contract price increases above what the contract itself allowed, leadership thought someone else was monitoring the contract and the commission paid hundreds of thousands of dollars a year for a 200,000-square-foot warehouse in Clayton that was largely empty, even during the busy holiday season, the audit found.

“The Commission did not explain why it repeatedly approved price increases that exceeded the maximum allowed amounts,” State Auditor Beth Wood’s office wrote. “But the Commission offered that it had little to no resources dedicated to monitoring the contract.”

The state has contracted with LB&B Associates Inc., which is based in Maryland, since 2004 to handle liquor warehousing and distribution. In fiscal 2017, the contract totaled $8.3 million, and it has cost the state more than $80 million over its life, the auditor’s office said.

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ncrma NC Retail Merchants @ncrma ·
7 Feb 2022

.@Andye123 joined @TimMoffitt, @stillnbarrel and @jonpsanders on a virtual panel hosted by @JohnLockeNC to discuss the modernization of NC's ABC system and whether NC should privatize the sale and distribution of liquor. https://bit.ly/3Jc0mNW #ncga #ncpol #freethespirits

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ncrma NC Retail Merchants @ncrma ·
23 Nov 2021

An excellent analysis by ⁦@CarolinaJournal⁩ of the NC ABC System, how NC got here & why the system needs to be fixed. Arcane N.C. ABC caters to college kids, problems drinkers, and the poor - #ncga #ncpol #freethespirits https://www.carolinajournal.com/opinion-article/arcane-n-c-abc-caters-to-college-kids-problems-drinkers-and-the-poor/

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sgteliv K9Star🐾 & Sarge🇺🇸 @sgteliv ·
3 Oct 2021

This place is built on Indian Burial Grounds.
#FreeTheSpirits

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julierobinsonnc Julie Robinson @julierobinsonnc ·
21 Sep 2021

After today’s surprise resignation…
Next step: WHO is interested in this **VERY important** NC ABC Commission appointment???🙏 @ChuckMcGrady @BrianTurnerNC @TimMoffitt @Andye123 @IsaVillaGarcia @DavidMeeker @stillnbarrel @HouserLobbyNC Dan Gurley, others?🤷‍♀️😃🥃 #freethespirits

Julie Robinson @JulieRobinsonNC

This👇is BIG #NCPOL news…NC’s ABC Chairman resigned today amid on-going warehouse & supply issues for customers at NC’s ABC stores.
Will this “change in leadership” be another important step to FINALLY modernize NC’s (woefully outdated) #liquor laws & regulatory structure??🙏🙏 https://twitter.com/stillnbarrel/status/1440029200690339842

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