Councilmembers Hire Kinfolk
To 'Work' in Their Campaigns;
Six New Reports on Slushwater

 

By Henry J. Stern
April 25, 2008

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The scandal over misuse of public funds by politicians continues to grow.

On page A1 of today's Times, jumping to most of page B6, you will find a major article: IN COUNCIL CAMPAIGNS, RELATIVES ON THE PAYROLL. If the Times were a tabloid, this story would be at the top of  page one, in the wood.  It was reported by Ray Rivera, Russ Buettner and William K. Rashbaum. It is the most exhaustive study of the Council Members' hiring practices for their campaigns that has ever appeared. This is a refreshing instance of (MSM) mainstream media using its resources to dig up information on a valuable issue of public integrity.

The 1481-word Times story describes over a dozen cases where Councilmembers hired relatives to work in their campaigns, rented space in their homes for their offices, or engaged in other acts of self-dealing.  In some cases, the Councilmember was headed for an overwhelming victory in a sham campaign, so the expenditures were primarily a vehicle to receive public funds for personal gain.

The issue is made more complex by the fact that, in other cases, some of these expenditures where, in fact, legitimate and necessary. I am personally aware of the services performed by Richard O'Malley, stepson of Councilman James Gennaro.   Peter Vallone, Jr. paid his brother Paul, an attorney, $7500 to act as campaign treasurer, a complex and arduous task for which lawyers usually charge larger sums.  These are honest people.

Other political expenditures are more suspicious. Larry Seabrook paid his brother Oliver, $82,752, although he was elected in his Bronx district by an overwhelming margin against a Republican candidate who conducted no campaign.  Read the details on page B6, column 1, of today's Times.

The Campaign Finance Board is bedeviled by spurious claims.  They are fully aware of the problem of runaway elections, for example, when there is no actual general election contest in an overwhelmingly Democratic district.  They say the law limits what they can do about it.  Public financing has a place in real contests between genuine contenders, with the money honestly spent. It should not be a siphon for unemployed relatives in practically uncontested elections.

How to keep the system honest is a question that has not yet been solved.   If it is not, the entire system of taxpayer-funded elections will be in jeopardy.  If the people were given a chance to express their feelings in a referendum, it is likely that the current program would not win general support, even if all its political beneficiaries supported it at public expense.

Our goal, at least for this week, is to send reports to you about mid-day, so that readers, if they wish to, can look at them and/or link to them during the day. We start by calling your attention here to six more reports on the burgeoning scandal, which, BTW, still lacks a prefix to -gate. Slush is a good word to build on, but it does not fit with -gate because the combination lacks meaning.  How about Slushwater, as in WhiteWater or WaterGate?  Any suggestions?

Here are the stories with which you should be familiar to keep up with the spreading stain:

Post, April 24, p4. SLUSHBUSTERS FREEZE POL'S COOL MILLION.  The pol is Larry Seabrook, the Bronx Council member mentioned earlier. The story is by Douglas Montero and Chuck Benett.  Its lede: The city has frozen nearly $1 million in funds that a Bronx city councilman sought for an obscure non-profit group conveniently located right across the hall from his own office, the Post has learned.

Sun, April 24, p4, COUNCIL USING PUBLIC FUNDS FOR SLUSH FUND DEFENSE, By Grace Rauh. "The City Council is negotiating with an outside law firm to represent council employees in connection with a  proble into the council's finances, prompting an outcry from at least one council member."  Tony Avella, a mayoral candidate, said the city should not pay for lawyers to defend a public official or employee who broke the law.  "Who is checking to see if anyone did anything illegal before we are funding their lawyers? he asked.

Post, Apr 25, p30, editorial, A JOB FOR LEGAL AID.  "Little more than a week after US Attorney  Michael Garcia busted two City Council aides for embezzling some $145,000 in "member-item" cash bound for non-profit groups, New Yorkers are starting to a good idea of just how wide and deep the scandal may run.

"It's not a pretty picture -- especially since, for the time being anyway, they'll  be the ones footing the council's growing-like-a-weed-patch legal bills."

Post, Apr 25, P5, CITY TO PAY FOR COUNCIL'S LAWYERS, By David Seifman, "The Bloomberg administration's top lawyer has authorized the City Council to hire private attorneys to represent legislators and staffers who might be dragged into the investigation of phantom funds, the Mayor said yesterday.  '[We provide representation] until there is some evidence that they have done something illegal,'. Mayor Bloomberg explained."

"Civic watchdog Henry Stern, a former councilman, agreed with the mayor that it was appropriate for the city to pay the legal fees of officials who have done nothing illegal.   But he also said there were gray areas, such as when an elected official directs funds for purposes that might be questionable -- say, to a relative's nonprofit -- but not illegal."

Post, Apr 25, p5 SLUSH-$$ COVER STORY CRUMBLES,  By Montero and Bennett.  'The woman at the helm of three non-profits whose funding amid a federal probe of City Council slush money claims she provides vital services for a senior center in her Bronx neighborhood.  The problem is, the senior center says it has never had any contact with her."

We conclude with a non-blast from the past: Sun, Apr 25, p1 AS SCANDAL GROWS AT COUNCIL, MILLER STAYS OUT OF SIGHT. By Grace Rauh.  "As fallout from the City Council slush fund scam widens and threatens to damage the political career of Speaker Christine Quinn, a key figure in the budget scandal has vanished from the scene: Gifford Miller, the former speaker of the council.

"Although Council documents show that phantom groups first appeared in the final budget of Mr. Miller's predecessor, the unusual and possibly illegal accounting maneuver grew by leaps and bounds under Mr. Miller, with nearly $10 million parked behind fake organizations during his four-year term as speaker."

#467 4.25.2008 1056wds

Michael (Bison) Oliva writes from an insider's point of view on recent political events, including media coverage and public perception.  His opinions are not necessarily those of New York Citvic, he is, after all, a relatively young fellow.  But he knows his field, and his occasional column should be worth reading.

Strawberry Fields Forever,
By Michael Oliva



Henry J. Stern starquest@nycivic.org
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