Street's 'unusual' PHA deal

As chairman of the Philadelphia Housing Authority, former Mayor John F. Street insisted that the agency hire an aide who reported directly to him instead of to Executive Director Carl R. Greene.

Such an arrangement appears to be unusual for someone in Street's role, according to people who have chaired boards at several Philadelphia organizations.

"My jaw dropped. It makes no sense that a board chairman is insisting that someone be hired in an organization on the theory that he needs someone who is loyal to him," said Richard Bazelon, a lawyer in private practice who chaired the city's Redevelopment Authority, or RDA, for 17 years starting in 1984.

Mayor Nutter, who currently chairs the RDA, and labor leader John "Johnny Doc" Dougherty, who chaired the authority before Nutter, both said they had never asked that someone be hired there to report to them. They declined to offer their opinions on Street's decision.

Representatives of the Philadelphia Parking Authority, Philadelphia Gas Works, and the Philadelphia Industrial Development Corp., a quasi-government agency that promotes economic development, all said there were no employees at their organizations who were hired at the request of, and reported to, the board chair.

On Thursday, the Inquirer reported that Greene hired private detectives to conduct surveillance on Kafi Lindsay, a lawyer who worked at the PHA for $55,000 a year as an aide to Board Chairman Street.

Greene suspected that Lindsay was not showing up for work, a charge both she and Street denied.

Street said he hired Lindsay because without her, he was dependent upon Greene to get basic staff work performed. "If I wanted a phone call made or answered, I had to get someone in his office," Street said.

Street and his four fellow board members suspended Greene last month with pay for 30 days following allegations that he sexually harassed at least four women, and that he settled three of those claims for $648,000 without the board's approval. The fourth, also negotiated without board approval, has been tentatively settled for $250,000, although no settlement papers have been signed.

A federal grand jury in Philadelphia is investigating whether federal tax dollars or charity funds were misspent by PHA, as well as whether vendors felt obliged to donate to charities Greene favored.

In a twist, Lindsay is now helping Street conduct an investigation by the PHA into Greene's tenure as executive director.

Gov. Rendell, who was chair of the PHA board before Street and helped hire Greene, was not available to comment on whether he had anyone at the housing agency who answered to him.

Greene's lawyer, Clifford E. Haines, said his client had hired Lindsay only after Street "insisted."

Charles Elson, director of the University of Delaware's Center for Corporate Governance, said it was not standard for board chairs to ask that people be hired and report to them.

"A dispute between the chairman of the board and a chief executive is not healthy for an organization and is typically resolved by one or the other, or both, leaving," Elson said.

Bazelon said board chairs should rely on the general counsel at an organization to keep them informed.

"It's inconceivable that an organization that is halfway properly run could have this kind of situation," Bazelon said.

Walter D'Alessio, chairman of the board of the Philadelphia Industrial Development Corp., declined to comment on Street's decision but said that when he has a question at that agency, "I pick up the phone and call the president, Peter Longstreth."

At the PPA, spokesman Marty O'Rourke returned a call to Joseph Ashdale, a labor leader who is chairman of the Parking Authority's board of directors.

"The PPA board chairman has no employee that works for him or any other board member," O'Rourke said. "All employees work for the executive director, who reports to the board."

Dougherty, business manager of Local 98 of the International Brotherhood of Electrical Workers, said that he did not have a personal assistant at the RDA because he didn't need one.

"I had a very active executive director," Dougherty said. "I had a very active and readily involved board with me, and I also had the staff inside the RDA that had transcended many mayoral administrations that were very good at what they did."

He said he thinks it would be unfair to judge chairs at other organizations because they all have different needs, workloads and reporting requirements.

But at least one Philadelphia organization, the School Reform Commission, brought in its own person when financial trouble surfaced at the district.

In 2006, James Nevels, who chaired the commission at the time, appointed its own internal auditor, James P. Doosey, after Paul Vallas, who was superintendent then, surprised the commission with news of $73.3 million deficit. Doosey reported directly to the reform commission, not to Vallas.

The SRC has a $3 million budget, part of the school district's $3.2 billion budget, and 25 employees. The employees report to the SRC, not to Superintendent Arlene Ackerman

District spokesman Fernando Gallard did not return a call seeking comment on whether Doosey or anyone still did that job.