Street ally out of the money in city contracts

In 2003, Lana Felton Ghee, a friend and former campaign manager of then-Mayor John F. Street, was overheard in an FBI recording talking with the late power broker and Street confidant Ron White about city contracts in which they had an interest.

"Once we're not here in four years, we ain't getting these contracts," she said. Felton Ghee was never charged in the FBI probe with any wrongdoing, but her grasp of politics and city contracts was sound.

Since Mayor Nutter took office in January 2008, Felton Ghee's income from city business has dried up, due in part to the efforts of Nutter's chief integrity officer, Joan Markman.

Markman said that she began asking questions about Felton Ghee's contracts months ago and that it appeared to her that Felton Ghee's role as subcontractor on two airport contracts was largely to process payments for other vendors and to add a 10 percent markup for her consulting firm.

"I learned that for the most part the airport people and some of their other vendors were doing most of the work, that she was acting more as a bank than a provider of services," Markman said in an interview.

So the airport gradually stopped sending work Felton Ghee's way, and her contracts have expired.

Markman said that when she asked why Felton Ghee had that kind of arrangement, she never got clear answers.

"I just got the impression that she'd been a friend of previous administrations, and I don't think it's any big secret that those people who had been friends of previous administrations got some city contracts," Markman said.

Felton Ghee said that she wasn't surprised that her city work was ending but that she knew nothing about Markman's looking into her business.

And Felton Ghee said it's "offensive" to think she got public work because of her political connections.

"I don't think that's a fair assessment," Felton Ghee said. "If I were being asked to do something I didn't have the background to do, that discussion would be worth having."

Felton Ghee's background is mostly in public relations and event planning.

According to city records, she earned $125,000 over the last four years as a subcontractor to the Parkway Corp., which had a contract to provide public-information services to the airport.

Markman said it appeared that the city or Parkway would engage printers and other vendors for services, would have Felton Ghee's firm pay them, then would pay her for the vendor's fee plus a 10 percent markup.

Felton Ghee said the arrangement was helpful to smaller and minority businesses that "can't afford to do business with the city because it takes too long to get paid . . . this allows the city to use vendors who wouldn't be able to participate."

Felton Ghee performed much the same function as a subcontractor to the Graham Co., which had an airport insurance contract. Her subcontract called for Felton Ghee to provide "property damage appraisal services," but Markman said it appears that Felton Ghee processed payments for other firms that did the work.

Felton Ghee said she hadn't had the Graham contract "in four years," but Markman said city records show the arrangement lasted through the fiscal year that ended June 30. Markman said she was paid $36,000 for that year, and earned $121,000 under the contract over the last four years.

Graham Co. head William Graham IV acknowledged in a 2004 interview with the Inquirer that he had done business with Felton Ghee because of her connections with then-mayor Street.

The contracts for which Felton Ghee was a subcontractor are now being rebid, but she said she isn't seeking to participate because she's beginning to plan her retirement.

Markman said part of her job is to make sure that everyone interested in city businesses "is on an equal footing."

"We're just interested in the city getting value for the money we spend, regardless of any kind of relationship," Markman said, "so people don't feel like they need to be a friend or contributor, or pay some sort of monthly retainer to somebody they perceive as close to the mayor."