NRI PULSE STAFF REPORT
San Francisco, CA, June 24, 2026 — A former top official in San Francisco’s Treasurer and Tax Collector’s Office improperly steered city business toward a technology company connected to a personal friend and failed to disclose the relationship, according to a city audit released this week.
The audit concluded that former Chief Assistant Treasurer Tajel Shah repeatedly took actions that benefited Mechanical Orchard, a technology company whose former chief revenue officer, Roque Versace, was a personal friend of Shah’s. Auditors found that Shah helped direct a sole-source contract to the company and influenced a subsequent procurement process for a multimillion-dollar project to modernize the city’s business tax system.
According to the audit, Shah instructed staff to take actions that favored Mechanical Orchard so frequently that investigators concluded she appeared to be selectively assisting the company in violation of city policies and procurement rules.
The findings stem from a months-long investigation conducted by the city’s Controller and City Attorney after whistleblower allegations surfaced in 2025. Reporting by the San Francisco Standard first brought the allegations to public attention, prompting city officials to launch an independent review.
The contract at the center of the controversy involved replacing San Francisco’s aging business tax management system, which supports the collection of approximately $2.6 billion in annual business tax revenue. The proposed agreement was valued at nearly $10 million.
According to the San Francisco Standard’s investigation, whistleblowers alleged that Shah helped alter scoring criteria and procurement procedures in ways that improved Mechanical Orchard’s standing during the bidding process. The company ultimately emerged as the selected vendor despite concerns raised by competing bidders.
The audit also examined allegations involving Shah’s niece. Investigators found that Shah contacted company officials about employment opportunities for her niece and that the niece subsequently received paid consulting work from Ratio PBC, a sister company affiliated with Mechanical Orchard. While auditors did not find a direct violation of city law, they said the arrangement created the appearance of a quid pro quo and fell short of the ethical standards expected in public contracting.
Mechanical Orchard withdrew from contract negotiations in September 2025 after media scrutiny intensified. Shah was subsequently placed on paid administrative leave.
In November 2025, Shah resigned as part of a settlement agreement with the city under which she received approximately $100,000.
Shah has denied wrongdoing. Through her attorney, she argued that the procurement process complied with city policies, that she did not make the final contract award decision, and that she received no personal benefit from her relationship with Versace. Shah also said she had been open about the friendship and maintained that her actions were intended to serve the city’s interests.
City officials said the case exposed weaknesses in oversight and procurement controls. In a response to the audit, Treasurer José Cisneros called the conduct described in the report “wrong” and said his office has already implemented structural changes to prevent similar problems in the future. Controller Greg Wagner said the findings underscored the importance of organizational culture and accountability in protecting the integrity of public contracting.
The audit’s release marks the culmination of an investigation that began after whistleblower allegations and reporting by the San Francisco Standard raised questions about conflicts of interest and favoritism in one of the city’s largest technology procurements.
Reporting for this article is based on the City of San Francisco audit and reporting by the San Francisco Chronicle and the San Francisco Standard.
Cover photo courtesy: SFO city.
