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untanglingwebs
El Supremo
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It was a little over a year ago that the Grand Jury convened to look into the Department of Energy Grant that was suspended and a partial repayment demanded. The city has submitted an appeal over the grant but Howard roft told a resident at the street light public hearing the appeal was denied.
During the council investigation in November 2011, City Attorney Peter Bade refused to discuss the communication with council citing attorney-client confidentiality. Ciuncil challenged Bade as to whom Bade worked for. Former city attorney Trachelle Young went to court to resolve that issue as she stated it was a conflict-of-interest for her to represent either council or the administrator against the other.
Well Bade is still refusing to turn over documents relating to this grant as an answer to a Freedom of Information Act request and is still citing attorney-client confidentiality,
That raises the question as to what is happening with the FBI and DOE investigation into the misuse of this grant?
Grand jury convenes in federal investigation of Flint energy grant funds
Published: Friday, July 22, 2011, 9:51 AM Updated: Friday, July 22, 2011, 1:58 PM
By Kristin Longley | klongley1@mlive.com
FLINT, Michigan — A federal grand jury is seeking city of Flint documents in what appears to be a wide-reaching investigation into millions of dollars of federal stimulus grants awarded to Flint.
It’s part of an ongoing investigation into grant spending — including at least $1.3 million in federal energy grants awarded to Flint — that also included a raid of City Hall on May 25.
Subpoenas issued to four city departments in May demanded more than two years worth of documents, check stubs, emails and audio and video recordings of city dealings, according to information obtained by The Journal under the Freedom of Information Act.
Most requests for information related to employees of the economic development department, but also include the personnel files for two high-ranking mayoral appointees — City Administrator Greg Eason and Green City Coordinator Steve Montle, both of whom declined comment, citing the ongoing investigation.
Federal officials requested the information in advance of a grand jury hearing that convened July 6 at the federal courthouse in Flint. Grand jury proceedings are closed to the public.
Flint City Attorney Peter Bade declined to comment on the proceedings, other than to say the city is cooperating.
Flint Mayor Dayne Walling said he has no further details on what federal officials are investigating.
“The city continues to fully cooperate with the investigation process,” he said.
Walling has previously said that he is not a target of the investigation.
Federal investigators and the FBI in May took volumes of archived documents and electronic information from the Department of Community and Economic Development.
A hand-written list compiled by a city employee during the raid, and obtained by The Journal, shows auditors from the Department of Energy were looking into $1.3 million in federal energy grants awarded to Flint through the Recovery Act.
Six city employees salaries are paid in total or in part with funds from the energy grants.
Federal officials have been cracking down on Recovery Act programs across the country.
It’s not known whether any of the city’s other grant awards have also come under scrutiny.
The subpoenas were requested by Assistant U.S. Attorney A. Tare Wigod of the Flint office.
Officials at the U.S. Attorney’s Office and the Department of Energy have declined to comment.
Each of the four subpoenas sought records related to city employees or persons or companies that have done business with the city going back to April 1, 2009, including:
• All audio and video recordings of all Flint City Council meetings and council committee meetings.
• All time sheets, payroll records and/or pay checks for a list of 23 employees, people and companies.
• Two years worth of emails to and from 19 city employees, most of whom work in the economic development department.
• The personnel files for seven employees including Eason and Montle. All five others work in the economic development office.
The city’s economic development department handles most of the federal grant funds for the city, which has been awarded more than $40 million in recent years under various federal programs.
The list of information taken from City Hall in May also indicates investigators were interested in information regarding the city’s $4.2 million federal Neighborhood Stabilization Program 1 grant, which is dedicated to rehabilitation and demolition of houses in the city.
Jackie Foster, an administrator in the city’s economic development department, said she has no idea why her name or others’ names were on the list.
“The feds came in, we cooperated fully, we gave them all the documents they requested,” she said. “I’m not sure that any of us really clearly understand exactly what’s going on or what prompted this.”
Kate Fields, who runs a consulting firm listed on the subpoenas, said she is also in the dark on what investigators are looking for.
Her firm, Advanced Solutions Group, was paid $250,000 of the energy grant funds to prepare an energy efficiency and conservation strategy. The strategy was submitted to the Department of Energy in December 2009 and resulted in Flint being awarded the balance of the $1.1 million grant in March 2010.
The money is primarily for energy efficiency and energy conservation activities.
“I thoroughly document my work,” she said Friday. “I have no concerns about the work or anything to do with my contract or projects.”
This article has been updated to include a clarification. |
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Fri Jul 20, 2012 7:13 pm |
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untanglingwebs
El Supremo
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Granted white collar crime and corruption are sometimes hard to prove. However this case seems so clear, that citizens keep asking why there have been no indictments.
This happened under the watch of Eason and Walling,so why is everything so quiet. |
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Fri Jul 20, 2012 10:24 pm |
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untanglingwebs
El Supremo
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DOE Rescinds Flint, Michigan Energy Efficiency Grant - EnergyBoom
www.energyboom.com/efficiency/doe-rescinds-flint-michigan-energy-efficiency...
Nov 16, 2011 ... In another episode that seems to highlight the difficulties surrounding the U.S. Department of Energy's (DOE's) allocation of loan and grant ..
DOE Rescinds Flint, Michigan Energy Efficiency Grant
By Jeanne Roberts on November 16, 2011
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In another episode that seems to highlight the difficulties surrounding the U.S. Department of Energy’s (DOE’s) allocation of loan and grant programs for renewable energy and energy efficiency, the city of Flint, Michigan just had its $1.1-million efficiency grant suspended for what the DOE is calling "serious mismanagement and misuse."
That, at least, is the wording in a letter the DOE sent to current Flint Mayor Dayne Walling. Flint’s grant is, like Solyndra’s federal loan, under investigation, and it’s hard to know who is more culpable in these failures; the DOE for handing out money so readily it has turned renewables and efficiency into a modern-day gold rush, or the city for failing to accurately document expenditures from the grant.
Not that a gold-rush in efficiency and renewables is bad. In fact, it’s the only way to get to President Obama’s clean energy economy and wean the nation off foreign oil. Unfortunately, failures like Solyndra and Flint set progress in achieving that future back exponentially.
In Flint’s case, according to the DOE, the city failed to follow grant guidelines, presumably by not selecting the lowest bid when choosing contractors, and failing to manage the work of subcontractors who performed the energy efficiency updates. No evidence of actual misappropriation has been presented.
The city’s finances were already in trouble, but that didn’t seem to prevent Mayor Walling getting re-elected. It did result in the state suggesting an emergency manager (as yet unnamed) – a move that some see as indicative of a potential state takeover.
The city council didn’t fight when a state review panel declared a financial emergency; it has said it will appeal the DOE’s suspension. In the meantime, the city is looking at how to repay the $214,991 in distributions under the grant which the federal agency has called “unsupported.”
Flint City Attorney Peter Bade has declined comment, but did submit a letter describing the issue as, “a pending legal matter under review with outside counsel.”
In an April 27 meeting, the Genesee County Board reviewed a recommendation from the Genesee County Community Action Resource Department, which administers block grants, to hire eight contractors under its DOE-ARRA funding for the rest of the program year (April 2011 through March 2012; see page 8 ). The city of Flint is in Genesee County.
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Tags: USD, clean energy economy, energy efficiency grant, Flint, Genesee County Community Action Resource Department, Michigan, Solyndra, U.S. Department of Energy (DOE), Dayne Walling, energy, energy efficiency grant, Flint, Michigan, oil, Peter Bade, U.S. Department of Energy
Jeanne Roberts is a freelance writer on environment and sustainability issues. In her previous life, she worked as both a reporter and a communications specialist for a major public utility. Her most recent book, Green Your Home, approaches environmentalism from a consumer’s perspective.
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Any opinion contained in this article is solely that of the writers, and does not necessarily shapes or reflect the editorial opinions of Energy Boom.
Energy Boom content is for informational purposes only and is not intended to be advice regarding the investment merits of, or a recommendation regarding the purchase or sale of, any security identified on, or linked through, this site. |
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Sat Jul 21, 2012 8:51 pm |
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untanglingwebs
El Supremo
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Flint City Attorney Peter Bade has declined comment, but did submit a letter describing the issue as, “a pending legal matter under review with outside counsel.”
Obviously this pending legal matter has not been resolved. |
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Sat Jul 21, 2012 9:25 pm |
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untanglingwebs
El Supremo
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City of Flint appealing termination of $1.1-million energy grant and demand for repayment
Published: Monday, November 14, 2011, 7:30 PM
FLINT, Michigan — The city is appealing the U.S. Department of Energy’s decision to terminate the city’s $1.1 million energy efficiency grant after the DOE alleged “serious mismanagement and misuse” of the funds.
In an Oct. 27 letter from federal officials to Flint Mayor Dayne Walling, the DOE also demanded that $214,991 of the money be repaid by the end of November.
The demand follows a federal review that found the $214,991 had been used for unallowable, unsupported or unresolved costs, according to the letter.
The money was part of $327,617 in energy grant money that had been spent by the city.
The city also failed to follow procurement standards for grant work, the letter said, including multiple conflicts of interest, lack of justification for choosing a contractor that wasn’t the lowest bidder and “serious lack of attention to grant requirements and subcontractor management,” the letter states.
The letter says the city also knowingly submitted inaccurate or delinquent reports.
Flint Mayor Dayne Walling said the letter is being treated as a legal matter and he expects the DOE’s final determination to change following the city’s appeal.
City Attorney Peter Bade declined to comment on the details of the letter but issued a written statement on the matter.
“This is a pending legal matter that is being reviewed with the assistance of outside counsel,” he said. “We are and have been fully cooperating with officials from the Department of Energy in an effort to resolve this matter.”
The purpose of the grant, awarded under the federal stimulus program, was to focus on projects that could create or retain jobs and to reduce energy usage and energy costs in the community.
“To date, the city of Flint has reported neither energy savings nor physical activity to support energy efficiency in the city of Flint,” the DOE letter states. “The projects identified by the city of Flint... do not meet this criterion.”
The majority of the funds questioned by the department of energy are related to Advanced Solutions Group, a third-party contractor and consulting firm run by Kate Fields, former executive director of the Greater Eastside Community Association.
Fields was paid nearly $250,000 to prepare an energy efficiency and conservation strategy, which was submitted to the Department of Energy in December 2009 and resulted in the city being awarded the balance of the $1.1 million grant in March 2010.
Nearly $164,000 of the costs by Advanced Solutions Group and about $51,000 in costs by the city of Flint were identified in the letter to be unallowable, unsupported or unresolved, according to the letter.
Fields said she was unaware of the letter before The Flint Journal brought it to her attention Monday.
After reading a copy of the letter supplied by the Journal, Fields said she believes the figures referred to in the letter were provided to the Department of Energy by the city of Flint.
“I think there are several errors here (in the DOE letter),” she said.
Fields said she can account for all of her costs, which fall short of the total amount cited in the letter.
She said the city has not contacted her, but she had made numerous attempts to contact city officials without success.
“The city should contact me and set up a meeting where they can discuss this,” she said. “I know my ducks are in a row.”
She also said she’s concerned the city will not be able to implement the grant.
“The city lost the opportunity to save millions of dollars,” she said. “That’s what really concerns me.” |
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Sun Jul 22, 2012 9:01 am |
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untanglingwebs
El Supremo
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Flint City Council investigative hearing to focus on grant spending
Published: Wednesday, November 16, 2011, 10:27 AM
By Kristin Longley | klongley1@mlive.com
FLINT, Michigan — The Flint City Council will hold an investigative hearing on city grant spending next week after recently learning federal officials canceled a $1.1 million energy grant more than two weeks ago.
Councilman Sheldon Neeley called for the hearing after accusing the city attorney of withholding information on the energy grant termination from the council.
In an Oct. 27 letter to the city, more than a week before the mayoral election, the U.S. Department of Energy alleged "serious mismanagement and misuse" of the grant funds and demanded that $214,991 of the money be repaid by the end of November
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(See story: City of Flint appealing termination of $1.1-million energy grant and demand for repayment)
Neeley said he asked the administration last week whether there had been any communication from federal officials regarding the grant, but was told by City Attorney Peter Bade that there was none.
The letter is a public document and should have been disclosed, Neeley said.
"We need to do an investigation with all of our grants to find out what's going on," Neeley said.
Flint Mayor Dayne Walling on Monday said the letter was not made public when the city received it last month because the city is treating it as a legal matter.
Bade said the city is appealing the findings in the letter under the process laid out in federal regulations.
"The DOE letter was not initially made public because doing so may have compromised the city's legal position, particularly as it relates to the DOE's allegations of wrongdoing," Bade said in an email. "The City Attorney is not in the practice of making any legal documents public that may harm the city's interests."
Bade said the energy department's final grant determination could change following the city's appeal.
"We are working hard to get this grant program back on line," he said.
The hearing is scheduled to immediately follow the city council's next committee meetings, which start at 5 p.m. on Tuesday. |
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Sun Jul 22, 2012 9:05 am |
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bigmouthconservative
F L I N T O I D
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| Bade is probably on vacation again. He never works. |
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Sun Jul 22, 2012 9:20 am |
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PSO2RMT
F L I N T O I D
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Tue Jul 24, 2012 4:05 am |
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untanglingwebs
El Supremo
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quote:
untanglingwebs schreef:
It was a little over a year ago that the Grand Jury convened to look into the Department of Energy Grant that was suspended and a partial repayment demanded. The city has submitted an appeal over the grant but Howard Croft told a resident at the street light public hearing the appeal was denied.
During the council investigation in November 2011, City Attorney Peter Bade refused to discuss the communication with council citing attorney-client confidentiality. Council challenged Bade as to whom Bade worked for. Former city attorney Trachelle Young went to court to resolve that issue as she stated it was a conflict-of-interest for her to represent either council or the administrator against the other.
Well Bade is still refusing to turn over documents relating to this grant as an answer to a Freedom of Information Act request and is still citing attorney-client confidentiality,
That raises the question as to what is happening with the FBI and DOE investigation into the misuse of this grant?
Grand jury convenes in federal investigation of Flint energy grant funds
Published: Friday, July 22, 2011, 9:51 AM Updated: Friday, July 22, 2011, 1:58 PM
By Kristin Longley | klongley1@mlive.com
FLINT, Michigan — A federal grand jury is seeking city of Flint documents in what appears to be a wide-reaching investigation into millions of dollars of federal stimulus grants awarded to Flint.
It’s part of an ongoing investigation into grant spending — including at least $1.3 million in federal energy grants awarded to Flint — that also included a raid of City Hall on May 25.
Subpoenas issued to four city departments in May demanded more than two years worth of documents, check stubs, emails and audio and video recordings of city dealings, according to information obtained by The Journal under the Freedom of Information Act.
Most requests for information related to employees of the economic development department, but also include the personnel files for two high-ranking mayoral appointees — City Administrator Greg Eason and Green City Coordinator Steve Montle, both of whom declined comment, citing the ongoing investigation.
Federal officials requested the information in advance of a grand jury hearing that convened July 6 at the federal courthouse in Flint. Grand jury proceedings are closed to the public.
Flint City Attorney Peter Bade declined to comment on the proceedings, other than to say the city is cooperating.
Flint Mayor Dayne Walling said he has no further details on what federal officials are investigating.
“The city continues to fully cooperate with the investigation process,” he said.
Walling has previously said that he is not a target of the investigation.
Federal investigators and the FBI in May took volumes of archived documents and electronic information from the Department of Community and Economic Development.
A hand-written list compiled by a city employee during the raid, and obtained by The Journal, shows auditors from the Department of Energy were looking into $1.3 million in federal energy grants awarded to Flint through the Recovery Act.
Six city employees salaries are paid in total or in part with funds from the energy grants.
Federal officials have been cracking down on Recovery Act programs across the country.
It’s not known whether any of the city’s other grant awards have also come under scrutiny.
The subpoenas were requested by Assistant U.S. Attorney A. Tare Wigod of the Flint office.
Officials at the U.S. Attorney’s Office and the Department of Energy have declined to comment.
Each of the four subpoenas sought records related to city employees or persons or companies that have done business with the city going back to April 1, 2009, including:
• All audio and video recordings of all Flint City Council meetings and council committee meetings.
• All time sheets, payroll records and/or pay checks for a list of 23 employees, people and companies.
• Two years worth of emails to and from 19 city employees, most of whom work in the economic development department.
• The personnel files for seven employees including Eason and Montle. All five others work in the economic development office.
The city’s economic development department handles most of the federal grant funds for the city, which has been awarded more than $40 million in recent years under various federal programs.
The list of information taken from City Hall in May also indicates investigators were interested in information regarding the city’s $4.2 million federal Neighborhood Stabilization Program 1 grant, which is dedicated to rehabilitation and demolition of houses in the city.
Jackie Foster, an administrator in the city’s economic development department, said she has no idea why her name or others’ names were on the list.
“The feds came in, we cooperated fully, we gave them all the documents they requested,” she said. “I’m not sure that any of us really clearly understand exactly what’s going on or what prompted this.”
Kate Fields, who runs a consulting firm listed on the subpoenas, said she is also in the dark on what investigators are looking for.
Her firm, Advanced Solutions Group, was paid $250,000 of the energy grant funds to prepare an energy efficiency and conservation strategy. The strategy was submitted to the Department of Energy in December 2009 and resulted in Flint being awarded the balance of the $1.1 million grant in March 2010.
The money is primarily for energy efficiency and energy conservation activities.
“I thoroughly document my work,” she said Friday. “I have no concerns about the work or anything to do with my contract or projects.”
This article has been updated to include a clarification.
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Tue Jul 24, 2012 6:30 am |
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