[nfbmi-talk] feds should look at mcb/mrs/mpas for similar issues

[joe harcz Comcast]

Federal government suspends Flint energy grants amid investigation; Mayor Dayne Walling launches additional review | MLive.com

http://www.mlive.com

 

Ryan Garza | The Flint JournalFlint Mayor Dayne Walling

FLINT, Michigan — The federal government has suspended the city of Flint's two energy grants, citing possible problems with compliance and allowable costs,

Flint Mayor Dayne Walling said today.

 

The news comes amid a wide-reaching

federal investigation

of the city's stimulus-funded energy grant programs dating back to April 2009.

 

In a news conference at Flint City Hall, Walling said he welcomes the federal scrutiny and he is "committed to rooting out fraud and waste in Flint."

 

He announced the city is also initiating an additional review of the two energy grant programs, and a group of outside legal counsel will be assembled by

the city attorney, he said.

 

"We should have some preliminary assessments within a month," Walling said, flanked by City Attorney Pete Bade and City Administrator Gregory Eason. "We'll

continue to go above and beyond to cooperate."

 

Walling said his office received notice last week that the grants will be suspended as of Friday, July 29. The notice cited the ongoing investigation and

possible issues with compliance, procurement and allowable costs, he said.

 

Walling said he wasn't aware of what spurred the action from the feds. He pointed out that the energy department's inspector general is handling dozens

of audits of energy grant programs across the country.

 

"We have no details on specifics from the Department of Energy at this point," Walling said.

 

In addition to the federal government's suspension of the energy programs, Walling said his administration has decided to also freeze a federal grant program

funded by the U.S. Department of Housing and Urban Development. Walling said that program has ties to a company that also has contracts with the city related

to the two energy grants.

 

A federal

grand jury has convened

as part of the investigation into the city's energy grant programs.

 

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.

 

Walling said that, despite language on the subpoenas that indicated otherwise, no city officials have testified or are scheduled to testify before a grand

jury. The city was only required to submit the requested information.

 

"Every member of my administration has fully cooperated with the review and investigation," he said. "We're going to make sure our taxpayers in this city

are protected."