Contract awards by Fenty housing authority face fresh questions
By: Violeta Ikonomova
Examiner Staff Writer
November 1, 2009
The revelation that Mayor Adrian Fenty's housing authority awarded tens of millions of dollars without authorization could jeopardize several parks and recreation projects, officials said.
The quasi-independent D.C. Housing Authority awarded roughly $170 million in contracts for the Fenty administration that were neither reviewed nor authorized by the legislative branch as the law requires.
The D.C. Office of the Chief Financial Officer agreed Friday to suspend further transfers of money to DCHA in the wake of the controversy. Dozens of construction contracts, many for parks and recreation projects, were steered to firms with close ties to Fenty -- and the council knew nothing about it.
The company to benefit most was Banneker Ventures, owned by Fenty fraternity brother Omar Karim. Banneker was awarded millions to manage construction projects for the Department of Parks and Recreation and the D.C. schools modernization office.
D.C. law requires the council to review and approve all contracts in excess of $1 million. Members were furious Friday as they learned the Fenty administration has used DCHA as a conduit for many more contracts than they thought.
The explanations offered by City Administrator Neil Albert for the contracting maneuver are "unpalatable," Ward 3 Councilwoman Mary Cheh said during the hearing.
"I happen to believe that these contracts are not lawful," said at-large Councilman David Catania, usually a staunch defender of the Fenty administration.
Attorney General Peter Nickles issued a legal opinion that all contracts in excess of $1 million must be vetted by the council, but that the DPR contracts already awarded were "legal and binding."
Albert did not commit to returning the contracts to the council.
Rachna Butani, director of HRGM Corp., a firm that competed with Banneker for the construction management contracts, said the award process was "definitely not transparent." The lower bid did not win, she said.
The D.C. council will further investigate the matter in a second round of questioning Thursday. There are plans to subpoena witnesses who did not appear Friday, including Fenty.
