Key facts
- San Francisco Zoo is in an unhealthy and unstable financial condition, according to a city audit.
- Millions were spent on construction projects without required city approval.
- Allegations of nepotism include hiring friends and relatives for contracted services and construction.
- The zoo has consistently outspent its budget for at least eight years due to low attendance.
- A city bailout of $8.5 million is planned for the zoo.
- Plans to build a new $27 million panda exhibit are opposed by activist groups.
A city audit released in May has revealed significant mismanagement at the taxpayer-funded San Francisco Zoo, highlighting a "toxic workplace environment" and unstable financial condition. The zoo reportedly spent $12 million on construction projects, including a new "Madagascar Center," without obtaining the required approval from San Francisco's Recreation and Park Commission, which has a threshold of $50,000 for such projects. Furthermore, allegations suggest nepotism, with employees hiring friends and relatives as contractors, including the former zoo CEO's fiancé performing concerts and other relatives receiving over $800,000 for construction work. The zoo also spends more than $4 million annually on contracted services without evidence of competitive bidding. Auditors found no records of contractors or their payment amounts. The zoo has been projecting "unrealistically high" attendance numbers to hide consistent budget deficits for at least the last eight years, masking its financial shortfalls from the city. The City of San Francisco provides $4 million in annual funding, a figure unchanged since 1993. In response to these issues, the city plans to provide an $8.5 million loan to the zoo, as closing it or finding a new operator was deemed more expensive. Additionally, the zoo plans to build a $27 million panda exhibit, a proposal opposed by activist groups like In Defense of Animals, who argue the zoo must first address its financial problems.