COUNCIL HEARING PROBES INTO TAX SCANDAL
On Thursday, the Council Committee of the Whole and the Committee on Finance and Revenue held a Public Oversight Roundtable to investigate fraud in the office of Real Property Tax Revenue. Councilmember Kwame R. Brown asked about policies created by Chief Financial Officer Dr. Natwar Gandhi in 1997 that loosened check writing restrictions, which could have opened his office to fraudulent activities.
Chairman Vincent C. Gray began the Roundtable by explaining that “the purpose of today’s hearing is to begin the Council’s investigation into the management, procedures, control systems and structures within the Office of Tax and Revenue of the Office of the Chief Financial Officer that permitted millions of dollars of District tax funds to be stolen and to determine the steps necessary to prevent a recurrence of these illicit activities.” Following the Chairman’s opening statement, Councilmembers were given an opportunity to hear feedback from and question multiple witnesses including concerned District residents; former Deputy CFO Sherryl Hobbs Newman; and D.C. Auditor Deborah Nichols. In his opening statement, Brown spoke of a Ward 4 resident that summed up the feedback he had received from the community. The resident said to Brown that it’s sad that she “had to help collect money to pass out turkey’s to people that need it most when the city said that they didn’t have any money to help make sure […] that everyone [has] a turkey. But no one stopped to find out, ‘Why does $30 million walk out of this government?’” Chief Financial Officer Dr. Natwar M. Gandhi was the final witness of the evening. Councilmember Brown honed in on a 1997 memo written by Dr. Gandhi where he delegated the check signing responsibilities to his subordinates; a move which could have opened the office to fraudulent activity. On July 21, 2007, Dr. Gandhi delegated his authority for signing off on checks over $250,000 to subordinates. Councilmember Brown asked for clarity from Gandhi on this directive because it was Brown’s understanding that prior to Gandhi’s directive, directors were only authorized to sign off on checks of $10,000 or less. Gandhi responded to Councilmember Brown by saying that, “It basically was micro-managing for me to sign off on every $10,000 check.” Brown responded by saying that, “I understand that you thought it was micro-managing but $30 million is now gone.” The Council will continue its investigation in the coming weeks. The Chairman identified seven objectives for the Council’s ongoing investigation: - To review the scope of the investigation into the theft and the its adequacy in exposing all facts associated with the fraud and embezzlement;
- To determine the weaknesses in internal controls the tax office;
- To determine areas which need to be strengthened to prevent future fraud;
- To determine if there were failures, and the extent and scope of failures, in established external controls that should have detected this theft;
- To determine if there were previous signs of fraudulent activity and why they were ignored or unheeded;
- To ensure the development and implementation of a comprehensive plan of correction; and
- To strengthen the Council’s role in oversight and monitoring of the office of the Chief Financial Officer, which was created by Congress during the control period. On Tuesday, November 20th, a resolution will be presented to the Council requesting authority to engage outside counsel and a financial auditing firm to facilitate and expedite the Council’s work.
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MARCH AGAINST HATE CRIMES CONTINUES FIGHT AGAINST INJUSTICE
On Friday, Councilmember Kwame R. Brown spoke at the National Action Network’s March Against Hate Crimes. People from all over the country came out to fight against injustice and to promote a message of equality and fairness. Councilmember Brown joined other speakers in calling out to the crowd, “No justice,” with the crowd responding, “No peace.” Brown continued his remarks by saying, “Today is a good day. Today is a day we say no more. Today is not a new movement. There are many people that have come before me that have been here. But today we’re going to make a decision. We’re going to make a movement that says, we’re not going to just come, we’re going to get something called results. Today is a day that we say that we’re no longer going to wait for the door to be opened…we’re going to tear the door down.” Brown expressed pride in his fellow citizens for their dedication to justice and to ending inequality. His hope is that people will continue their efforts by getting involved in their communities and voting for leaders that can make a difference and provide a better future for our children.
________________________________________________________________ DDOE ISSUES CSX DERAILMENT STATUS REPORT On Tuesday, At-Large Councilmember Kwame R. Brown expressed serious concern that planning efforts to clean up the site of the CSX train derailment needed to be efficient and effective. Brown called for CSX to assume full responsibility for the cost of removal and remediation of the site. The next day, the District Department of the Environment (DDOE) issued a status report that gave a summary of progress and plans for clean up of the Anacostia River. Brown, a member of the Committee on Public Works and the Environment, previously said that, “It’s clear that swift action is needed at the site of the derailment due to the potential for long term damage. Initial reports that the environmental impact will be limited have been understated. I personally have seen fish floating in the Anacostia while viewing the site. We also have an important park adjacent to the site that needs to be protected during the clean up process. Trees, plants, and animals should be carefully considered in the clean up plan.” The DDOE’s status report contained the following details: Incident overview:
On November 9, nine CSX railcars derailed on a rail line over the Anacostia River. Six of the cars, each filled to capacity with coal, fell completely into the river. The rail line had already been closed in order to repair structural deficiencies—a neighboring line remains in use. CSX has investigated the cause of the derailment; preliminary reports indicate a failure to secure the cars’ brakes while at the Benning Road rail yard. Who is involved in the clean-up effort:
DDOE oversees monitoring, clean-up and remediation. CSX implements and funds the clean-up. US Army Corps of Engineers reviews and issues permits for work within the Anacostia River. National Park Service helps coordinate the clean-up and protects parkland during the project. District Fire and Police Departments provide emergency response and site security and stabilization. What’s happened so far?
No visible petroleum was released, no was evidence of hydraulic fluid present. DDOE will provide oversight and guidelines for the development of a sampling protocol to be used throughout response efforts. Both water, sediment and aquatic sampling will be taken at, above and below the accident site. Daily monitoring of the river is being done by CSX and DDOE Water Quality Division staff. CSX officials are providing daily updates on response status. Involved agencies are securing the required permits for all aspects of the clean-up plan which spell out and govern the clean-up in detail. DDOE and CSX officials are meeting regularly to work out logistics, mobilization and sampling schedules and plans. What happens next?
CSX has proposed installing a floating dock for use as a recovery base—all heavy equipment would gain access at this point. CSX has agreed, per DDOE’s orders, to use two layers of turbidity curtains to secure contaminated sediment within the recovery site. This curtain is an impermeable membrane that extends from the surface to the river bottom and will contain the sediment and prevent its spread to other sections of the river. Divers will determine the placement of the rail cars and collect sediment samples prior to recovery work. Samples will be colleted both in the vicinity of the derailment as well as in designated areas upstream and downstream. Once the curtain is in place and initial sampling is complete, CSX will conduct a salvage operation ad remove the cars and coal from the riverbed. The curtains will not be removed until suspended sediment settles back to the stream floor. Sampling will be conducted throughout the salvage operation, as well as after recovery efforts, in order to gain information about any potential impacts on the river. An ecological risk assessment will be done to determine what steps are necessary to recover for environmental losses and protect ecological resources from the disturbance. “It's my view that CSX must assume full responsibility for the cost of removing pollutants from the site and for long-term remediation as well," Brown concluded. "The health of our community is at stake and we can’t afford to stall or make mistakes.” For More Information Visit
Department of the Environment
http://ddoe.dc.gov/
51 N Street, NE, Sixth Floor
Washington, DC 20009
Phone: (202) 535-2600
Fax: (202) 673-6725
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RIVER TERRACE CAREER FORUM SATURDAY
Hands on training, apprenticeship opportunities, resume and job application assistance and more… On Saturday, a Career Forum will take place at River Terrace Elementary School to help young adults between the ages of 18 – 25 gain access to employment opportunities and career training. At-Large Councilmember Kwame R. Brown, Councilmember Yvette M. Alexander and ANC 7D04 Commissioner Warees Majeed are sponsoring the event. The Forum is designed to give individualized attention to participants whether it’s resume and job application guidance, legal assistance or access to job opportunities. “All DC residents need to have access to job opportunities and individualized training,” said Brown. “Our city has seen an economic resurgence but not all DC residents have benefited, particularly those with only a high school diploma. This forum is an opportunity for River Terrace residents between the ages of 18 – 25, who are having difficulty finding employment to be a part of the hiring process.” WHAT: River Terrace Career Forum
WHEN: Saturday, November 17, 2007
TIME: 11:00 AM—Registration; 12:00PM-4:00PM—Career Forum
WHERE: River Terrace Elementary School, 420 34th Street, NE
CONTACT: For more information call (202) 727-6683 or (202) 288-6261 Councilmember Brown has been advocating for an “equal access pipeline” where all DC residents have equal opportunities in the District’s economic revitalization. Brown recently introduced the Compliance and Enforcement Agency Establishment Act of 2007 (B17-369), which is the culmination of feedback from numerous public hearings, District residents, business owners, and major economic development project tours. In introducing the legislation, Councilmember Brown stated that, “In 2006, there were 688,000 jobs in the District. While there are enough jobs in the city to employ every DC resident, unemployment remains high and certain neighborhoods are falling behind. We need to find solutions to these troubling problems and I believe that this legislation can help address those needs.” However, many residents cannot wait for the passage and implementation of legislation, they need employment now. This Career Forum is designed to address a “sense of urgency” to the unemployment crises impacting many DC residents. Once established, the Compliance and Enforcement Agency, among other requirements, will also be responsible for monitoring and enforcing DC residency employment requirements as it relates to real estate development transactions and agreements involving land currently or previously owned by the District Columbia and which currently falls under the purview of the Office of the Deputy Mayor for Planning and Economic Development. Working with other Ward Councilmembers, Advisory Neighborhood Commissioners, Civic and Citizen Associations, DOES, construction companies and unions, the River Terrace is the first of several Career Forums to be sponsored by Councilmember Brown, focusing on specific neighborhoods with high unemployment rates.
________________________________________________________________ BROWN APPLAUDS MAYOR FOR CHOOSING AN ALL LSDBE TEAM FOR PARCEL 42 On Wednesday, At-Large Councilmember Kwame R. Brown applauded Mayor Adrian M. Fenty and Deputy Mayor Neil Albert for choosing a team of local businesses to develop land known as Parcel 42 located at 7th Street and Rhode Island Avenue NW. Parcel 42 Partners is comprised of a team of three local, small disadvantaged business enterprises (LSDBEs) including Sunrise Development Corporation, Metamorphosis Development Group, LLC and Metro Partners, LLC. “Local businesses need local opportunities and solutions to help them thrive,” said Brown. “The Mayor has recognized that we need to give local businesses a major stake in the development of District land. I congratulate Parcel 42 Partners for putting forth a proposal that will help make DC a better place to live and work.” In September, Councilmember Brown introduced legislation to help address the needs of local businesses citywide. The Neighborhood Commercial Corridor Tax Relief Strategy Act of 2007 (B17-369) would require the Mayor to create a tax relief strategy for all D.C. neighborhood businesses within a commercial corridor that are economically impacted by the road infrastructure construction performed by the District Department of Transportation. The legislation was co-introduced by Councilmembers Evans, Schwartz, and Thomas and seven other members cosponsored the bill.
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