Monday, December 21, 2009
News Communication breakdown
Posted by Scott Henry @ScottTheHenry and Thomas Wheatley @thomaswheatley on Mon, Dec 21, 2009 at 9:00 PM
A document packet of mysterious origin. A city official who denies sending a letter that bears his signature. A councilman pressuring city employees to give a lucrative deal to a contractor who’s been investigated for alleged criminal misconduct. And, up for grabs, the underwriting commissions on a whopping $1.2 billion worth of airport bonds.
Just weeks before a new Atlanta mayor and City Council come on board, one of the city’s biggest bond issues of the year — a much-needed initiative to fund the new international terminal at Hartsfield-Jackson Airport — has been delayed because of a situation that’s variously been described as a simple misunderstanding, a conspiracy to deny business to minority contractors and, most alarmingly, a suspicious effort to place two particular bond firms in a position to earn millions of dollars.
At the center of the commotion is C.T. Martin, the soft-voiced yet prickly councilman who’s represented much of Atlanta’s far western neighborhoods since 1990. Martin says he’s fighting to get Grigsby & Associates and Rice Financial Products, two out-of-state and minority-owned bond underwriters, a bigger chunk of the airport bond deal because minority companies have historically been shut out of Wall Street paydays.
But Martin’s advocacy on behalf of the two firms has proved troubling to several of his fellow councilmembers, as well as to outgoing Chief Financial Officer Jim Glass, who put the brakes on the bond deal and requested an investigation by the city’s legal department.
“We’re conducting a full compliance investigation into this matter,” City Attorney Roger Bhandari said during a Dec. 2 Council meeting. “As you know, sometimes compliance investigations can lead to criminal wrongdoing, in which case, we’ll refer it to the proper authorities. It will not just be a look at ethics. It will be a look at all facets of the law.”
The imbroglio began this fall, when Martin and fellow Councilman H. Lamar Willis expressed concern about inadequate minority participation in the upcoming airport bond deal. Historically, the city has reserved at least 25 percent of its bond underwriting business for minority-owned firms. Underwriters are selected from a list of prequalified firms by bonding experts within the city finance department, who can choose to take — or ignore — suggestions from councilmembers. For very large bond issues, like the $1.2 billion airport financing package, it’s not uncommon for six or seven firms to share the underwriting duties at different levels of involvement.
At the Council’s Sept. 8 meeting, Martin and Willis asked a finance department staffer to give a bigger share of the airport bond deal to San Francisco-based Grigsby and New York-based Rice, both of which had already been selected for a 5 percent cut each.
But it seems there was a failure to communicate.
Continue Reading "Communication breakdown"
(Photo by Joeff Davis)
Comments (9)
Showing 1-9 of 9
Good grief. What utter clownage. Atlanta taxpayer dollars to support San Francisco-based criminals. Makes perfect sense, given some of the more freakish ways of a few whacked clowns on this council. I'm sure Merrill has fed-mandated minority programs now out the ying yang, given their dubious track record at pretty much everything. And there's only one place for their stock price to go, considering it's about at $1.00 a share these days. Come to think about it, isn't BOA looking for a chief since no one else wants the job? Maybe CT can suggest a few dubious minority cronies for that position too.
like
dislike
thomas/scott - is there any sign of direct contriutions from the firms in question to martin?
These bond outfits get to skim taxpayer money for doing next to nothing beyond bribing city officials. How about genuine competitive bids for these 'services'?
WWW, bond companies and their principals aren't allowed to give political campaign contributions. Someone as smart(ass) as you should already know that.
The last quote in the article says it best: "A bunch of these bond deals need to be investigated."
The below web site says that Merrill Lynch individuals were the top contributors and gave $379,000 to John McCain for the period 2005-2010. Doesn't that count? Isn't Merrill planning to be the top gun on the airport bond deal? http://www.opensecrets.org/politicians/summary.php?cid=N00006424
yeah, i'm sure there was NO money or other favors exchanged in this deal. that isn't how politics work at all....
Thank the Lawd Councilman H. Lamar Willis is on the case! That will assure the citizens of Atlanta of financial and ethical propriety. Bwaaaahaaaahaaahaaaa!
Thank you for the expose. Please keep it coming. Perhaps if media coverage of H. Lamar Willis' misdeeds -- including back taxes, fines and an unregistered "not-for-profit" -- had been more widespread before the election in November, he never would have made it back on the council! Atlanta: until we demand better, and until we make the effort to educate ourselves about candidates for City Council, we deserve exactly what we get in our leadership. http://www.ajc.com/news/georgia-politics-elections/fulton-county-court-fines-155836.html
Latest in Fresh Loaf
-
5 things today: Goth Valentines, Vouched Books
Goth valentines, poets, Jewish films, and more
-
Pittsburgh rallies for Brandon White; hate crime legislation to be introduced 1
More than 150 people braved cold temperatures to show support for 20-year-old attack victim
-
5 things today: Willie Nelson, Twyla Tharp
The whiskey river runs to Tabernacle, dance at Cobb Energy, and more
- More »
Author Archives
-
Has Newt maxed out? More GOP voters say "meh" 3
Newt is already dropping in polls as Iowa caucuses approach
-
Mr. Reed goes to Washington — again 17
Mayor Reed is at the White House so often he has his own toothbrush
- More »
Author Archives
-
Meet the Georgia man who wants Obama to prove his citizenship in court 11
Ever wonder if these news stories are an elaborate conspiracy led by Mississippi to make us look more ridiculous?
-
First Slice 2/3/12: What would Phil Gingrey do? 3
Georgia congressman walks out of National Prayer Breakfast over apparent political talk
- More »
