Manzo testifies before grand jury

HARRISBURG - For several hours yesterday, the former chief of staff to the highest-ranking Democrat in the Pennsylvania House of Representatives testified before a grand jury investigating whether public dollars were illegally used for campaign purposes.

Mike Manzo, the onetime top aide to House Majority Leader Bill DeWeese (D., Greene), appeared before the panel a week after giving explosive testimony in open court implicating his former boss in the scandal known as Bonusgate.

Manzo, who is charged in the case and is now cooperating with authorities, declined to discuss what he told the grand jury. But as one of the most loyal party insiders until he was abruptly fired last year, he is uniquely positioned to detail the inner workings of the Democratic caucus DeWeese runs.

DeWeese, who is not charged in the case, reiterated yesterday his view that Manzo was a desperate man who would say anything to save himself jail time. And DeWeese has said repeatedly that he had no knowledge of the alleged conspiracy to use tax money and public resources to further political campaigns.

"The fact that the sword of Damocles is hanging with a thread over Mr. Manzo tells me his comments are just one last wild punch before he hits the deck," DeWeese said.

William Chadwick, a Washington consultant whom DeWeese hired to represent the caucus in the Bonusgate matter, added that Manzo had been cooperating with prosecutors since January and had been unable to provide any evidence of wrongdoing by DeWeese.

"Mike Manzo does not pose legal risks to Bill DeWeese," Chadwick said.

A spokesman for Attorney General Tom Corbett declined to comment on Manzo's testimony, citing secrecy rules surrounding grand juries.

Manzo and 11 other defendants charged so far in the probe are scheduled to be formally arraigned Nov. 5. Trials are scheduled to start in January.

At a preliminary hearing on the Bonusgate case last week, Manzo testified that DeWeese knew that bonuses were being handed out and had approved them.

"I believe he did, yes," Manzo said when asked on cross-examination whether DeWeese was aware of the bonuses.

Jim Eisenhower, Manzo's lawyer, later added that DeWeese even directed giving bonuses to specific employees. But Eisenhower would not comment last week about what evidence Manzo, 39, had to back up his assertions.

On the stand last week, Manzo alleged that starting in 2004, there was a concerted effort by top Democrats, including DeWeese and former Rep. Mike Veon (D., Beaver), to regain the majority in the House.

Manzo testified that a plan was hatched to use House Democratic staffers to work on campaigns. Many of them, he said, performed the work on state time and also received handsome government bonuses.

Soon afterward, Manzo testified, it became a well-known secret among House Democratic staffers: Work on campaigns and make extra money.

Manzo joined DeWeese's staff in early 2000 as his press secretary. A year later, he became chief of staff. DeWeese forced Manzo and six others to resign in November because of what he said he believed was their involvement in the bonus scandal.

Manzo faces 47 felony counts, including theft and conspiracy.

Eisenhower would not elaborate last week on the specifics of Manzo's plea agreement, saying only that his client had agreed to plead guilty to the most serious charges, and that his cooperation would be made known to the court at sentencing.