|December 14th, 2010, 10:07 AM||#1|
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Detroit Water & Sewerage Department contracts flowed like water under Team Kilpatrick
Federal investigators are reviewing documents related to Detroit Water & Sewerage contracts won by friends and allies of former mayor Kwame Kilpatrick, his parents, and Bobby Ferguson.
The Detroit News reports a grand jury subpoenaed records from two contractors -- Lakeshore Engineering Services and A&H Contractors -- that were awarded several hundred million dollars in work from the city’s Water and Sewerage Department.
Dec. 14, Detroit News: The revelations are further indications that the investigation is focusing on business dealings involving the Water and Sewerage Department, a cash-rich utility in which Kilpatrick once had broad powers to award multimillion-dollar contracts without Detroit City Council approval.
Kilpatrick and his father, political consultant Bernard Kilpatrick, have been publicly linked to the federal investigation but have not been charged with any crimes, though there are signs the government is zeroing in on Bernard Kilpatrick.
Both Lakeshore and A&H have extensive ties to the Kilpatrick political operation. Former Kilpatrick deputy mayor Anthony Adams later worked for Lakeshore’s health care arm. Lakeshore leased space in their New Center offices for the Detroit Police Department’s Central District and Jennifer Granholm’s 2006 campaign office.
Bernard Kilpatrick’s second wife, Bettye Kilpatrick, served briefly on A&H’s Board of Directors.
Both contractors made several campaign donations to both Kwame Kilpatrick and his mother, the recently unseated Congresswoman Carolyn Cheeks-Kilpatrick.
According to FEC records, Lakeshore head Avinash Rachmale made donations (totally $12,000) to the Congresswoman’s campaign. Rachmale’s giving began shortly after her son was elected mayor in 2001.
A&H’s Thomas Hardiman gave a total of $9300 to Carolyn Cheeks-Kilpatrick’s campaign and made a $2500 donation to the Transfund PAC, which the Center for Responsive Politics lists as affiliated with Cheeks-Kilpatrick.
According to the News, neither firm is a target of the investigation and both say they are cooperating with the Feds.