Saturday, April 6, 2013
Saturday, April 6, 2013
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Feds subpoena 'economic development' spending records from the DRPA

Vehicles traveling to New Jersey at dusk (headlights on left side) on the Ben Franklin Bridge. (David M Warren / Staff Photographer)
Philadelphia Inquirer
Vehicles traveling to New Jersey at dusk (headlights on left side) on the Ben Franklin Bridge. (David M Warren / Staff Photographer)
Story Highlights
  • Federal prosecutors sent the DRPA a subpoena for records detailing millions in spending.
  • DRPA spokesman Tim Ireland confirmed the subpoena and said the agency was "cooperating fully."
  • The DRPA operates the Benjamin Franklin, Walt Whitman, Commodore Barry and Betsy Ross bridges and the PATCO train line.

FEDERAL PROSECUTORS want details about how the Delaware River Port Authority spent millions of public dollars in the past five years on projects that had nothing to do with the agency's mission of operating bridges and a rail line over the Delaware River.

The chief of the U.S. Attorney's Office's public-corruption unit in Philadelphia sent the DRPA a subpoena two weeks ago for all records about that spending, dating to January 2008.

The DRPA has until Tuesday morning to turn over "board minutes, financial records, grant/loan application packages, correspondence and all electronic communications . . . sent or received by DRPA employees and/or board of commissioners," according to the subpoena, which was obtained Wednesday by the Daily News.

DRPA spokesman Tim Ireland confirmed Wednesday that his agency had received the subpoena at its Camden headquarters and is "cooperating fully" to turn over the relevant records.

"We will make sure that our compliance with the subpoena demonstrates the renewed commitment to transparency reflected in reforms passed recently by DRPA Board of Commissioners," Ireland said.

Patricia Hartman, a spokeswoman for the U.S. Attorney's Office in Philadelphia, said her agency does not confirm or deny the existence of investigations.

The New Jersey Comptroller's Office, in a 2012 report probing "wasteful and inappropriate spending" at the DRPA, calculated that the agency has borrowed and distributed more than $440 million in the past two decades for "a massive economic-development campaign" unrelated to the agency's actual duties.

The DRPA, run jointly by Pennsylvania and New Jersey, operates the Benjamin Franklin, Walt Whitman, Commodore Barry and Betsy Ross bridges and the PATCO train line.

The DRPA, under intense public scrutiny in August 2010, voted to stop borrowing and spending money on economic-development projects, noting those funds "could have been invested in the agency's own assets."

But the spigot of cash continued to flow for another year.

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The DRPA in December 2011 dished out $20 million more in economic-development funding for projects such as student housing at Rutgers University, a cancer center at Cooper University Hospital, and the closing and demolition of a state prison on Camden's waterfront.

Gov. Corbett, who served as chairman of the agency from May 2011 until November, wrote in the introduction to the DRPA annual report in August 2012 that the agency was "in need of a vigorous culture change" and that the most significant accomplishment toward that goal had been the vote to stop spending public dollars on economic-development projects.

The DRPA previously spent millions to help build projects such as the National Constitution Center and sports stadiums in Philadelphia, as well as the Adventure Aquarium and a berth for the Battleship New Jersey in Camden.

The DRPA also used $11 million in economic-development funds to support the Citizens Alliance for Better Neighborhoods, a nonprofit started by former state Sen. Vince Fumo. And it helped fund the Independence Seaport Museum at Penn's Landing, which gave Fumo free use of an expensive yacht.

Fumo is now serving a federal prison term on corruption charges that included misusing money from his nonprofit and the free yacht use from the museum.

 


" @ChrisBrennanDN

Blog: phillyclout.com

 

CHRIS BRENNAN Daily News Staff Writer brennac@phillynews.com, 215-854-5973
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Comments  (6)
  • 0 like this / 0 don't   •   Posted 4:13 AM, 04/04/2013
    The feds should also question the members of the Citizens Advisory Committee. You do remember that don't you? It was a well orchestrated decoy. I wanted to know who drove free thru the toll booths, and was shut down. I had reason to believe, that politicians from both sides of Delaware were issued perks.
    Frank J Graff
  • 0 like this / 0 don't   •   Posted 7:46 AM, 04/04/2013
    Yes..there are still so many hidden perks in this DRPA "Kingdom" that need to be investigated. I agree with FrankJGraff that he political boys and girls have been getting free rides for years. Not only on the tolls, but other goodies too. Let's keep looking at the law firms involved "economic" grants the DRPA gave out, etc. I bet lots of money went to the attorneys(who are tied in with the politically picked firms)for the paperwork for this BS operation. Also, what about Bond work? Who got those plums to work on? We're going to be paying for the thievery of the DRPA for years to come. In the meantime, they'll keep trying to weedle out a way to steal more money. That's why they have meetings--isn't it? This time, however, they'll shield it more effectively from public scrutiny. Remember--this is a little "feifdom" with goodies for the "Animal Farm" piggies to enrich themeselves and friends..
    oblekr
  • 0 like this / 0 don't   •   Posted 9:51 AM, 04/04/2013
    Pols, lobbyists, union officials, small business owners, ad agencies, bond placement firms, and contractors on both sides of the river better start cutting back on their discretionary spending.

    They're going to need every penny they can muster to get lawyered up enough to avoid an Action News perp-walk.
    PhillyDanny
  • 0 like this / 0 don't   •   Posted 7:10 PM, 04/04/2013
    DRPA funds also did a lot of good, and provided an alternate source from closed-off funders, albeit little-known. What is more important than the Constitution Center? They were, at least sometimes, supporting the economic development of the area, and they are the only tri-state authority that can do it. I don't think the grants will be the problem in their records.
    Zindorf
  • 0 like this / 0 don't   •   Posted 8:49 PM, 04/04/2013
    Chris, Always wanting to bring up Fumo to stir your readers a ? 3 comments ha ha ha - give it a rest will ya !
    The inky still employs mindless journalism. zzzzz......
    topaj
  • 0 like this / 0 don't   •   Posted 11:30 AM, 04/05/2013
    Didn't Christie pledge to clean up the DRPA? Maybe he should give a no bid contract to an outside/independent investigation specialization firm?
    popazivan