Former city administrator testifies Thao never told him to bypass bidding process on housing purchase
on October 30, 2026
Former City Administrator Jestin Johnson testified Thursday that former Mayor Sheng Thao asked him to visit a modular-housing company at the center of her federal corruption trial but never instructed him to purchase its units or bypass the city’s competitive bidding process.
Federal prosecutors allege Thao agreed to help Evolutionary Homes, a business associated with California Waste Solutions executives David and Andy Duong in exchange for political benefits and payments to her longtime partner, Andre Jones. Thursday’s testimony explored how far Thao went in advancing the company’s interests, and whether she had pushed city officials to award it contracts without a competitive process.
Thao, Jones and the Duongs have pleaded not guilty.
Johnson said Thao introduced him to David Duong and asked him to tour Evolutionary Homes’ showroom, where shipping containers had been converted into studio-style housing units.
Johnson said the units were about $170,000 to $215,000 each, which “didn’t make any economic sense” as the city simply was not in a position to be spending that amount of money at the time. He also recalled company co-founder Mario Juarez pushing back against the city’s standard competitive bidding process, saying Oakland “doesn’t need process, it needs action.”
Before the trial, the U.S. Attorney’s Office revealed Juarez had pleaded guilty to conspiracy in the case and was cooperating with prosecutors.
Johnson testified that David Duong had also suggested the city’s emergency shelter ordinance could allow the city to purchase the units without the usual procurement requirements.
But Johnson said Thao never ordered him to purchase the units or bypass competitive bidding.
That distinction matters under Oakland’s unusual government structure. The mayor appoints the city administrator, subject to City Council confirmation, but the administrator manages daily operations and oversees the city’s departments.
Johnson compared his working relationship with Thao to that of a quarterback and coach, explaining that each could take on either role depending on the situation. The comparison drew a smile from Thao.
Thao was indicted in January 2025 alongside her longtime partner, Andre Jones, and the Duongs, seven months after the FBI had raided her home and the Duongs’ homes and offices. The eight-count federal indictment includes charges of bribery, conspiracy, and honest-services mail and wire fraud. Thao faces six of the eight counts, while Andy Duong also faces a charge of making false statements to the FBI. Sheng was less than two years into her term when voters recalled her in November 2024.
The trial began with jury selection on Oct. 13, followed by opening statements on Oct. 14 and is expected to last approximately six weeks.
Thao watched intently as her attorney, Jeffrey Tsai, questioned Johnson about their interactions. Johnson said it was routine for Thao to suggest businesses and community organizations to check out. Touring a showroom, he acknowledged, did not mean agreeing to buy its products.
Earlier on Thursday, former Assistant City Administrator LaTonda Simmons testified about an emergency shelter ordinance that David Duong had referenced, which allowed Oakland to expedite certain emergency shelter projects but did not grant officials unrestricted spending authority. Defense attorneys challenged the suggestion that $85 million in anticipated housing grants could be directed toward a single developer.
“That would be absurd,” defense attorney Shawn Halbert said.
Simmons acknowledged that such funding had historically supported a variety of projects and programs.
The defense also questioned Simmons about a proposed merger of city departments overseeing housing and homelessness, which would have consolidated funding and services under one department. Defense attorneys argued the proposal was driven by Oakland’s ongoing budget constraints rather than an effort to direct money toward a particular developer. The merger was never implemented, Simmons testified. Those financial pressures also provided context for Johnson’s testimony that purchasing the Evolutionary Homes’ units would not have been feasible.
Questions turned to Emily Weinstein and Larry Gallegos, who assumed interim leadership roles in the Housing and Community Development Department in 2023. Gallegos was identified in news reports as the unnamed official prosecutors allege Thao pushed to promote at the Duongs’ request. Weinstein later became permanent director, while Gallegos returned to his previous position in the city’s Economic and Workforce Development Department, Simmons testified. Gallegos subsequently resigned from the city in January 2025, the month Thao was indicted.
The extent of Thao’s influence over those decisions was examined during Johnson’s testimony. He said Weinstein agreed with him that any housing purchases would require competitive bidding. He also said Thao never instructed him to appoint Gallegos to a departmental leadership position.
Thursday’s testimony established that Thao had directed Johnson’s attention toward Evolutionary Homes, though the defense emphasized that she never ordered a purchase.
(Top photo of Sheng Thao arriving at the federal courthouse in Oakland, by Anson Tan)
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