Showing posts with label no-bid contracts. Show all posts
Showing posts with label no-bid contracts. Show all posts
Tuesday, April 2, 2013
In a related story to the last post, the Buono for Governor campaign issued a press release earlier today highlighting an editorial that ran in yesterday's Daily Record titled "True costs of AshBritt deal could grow". The editorial goes into a little more detail about the circumstances behind Governor Christie's decision to issue a "piggybacked" no-bid contract to AsBritt Inc. for Hurricane Sandy related debris removal and Senator Lautenberg's recent letter advising the govern of FEMA's reimbursement concerns:
Here's what the editorial had to say:
Gov. Chris Christie says a lot of the right things about how government should be run efficiently and responsibly.
But, like most any other politician, he doesn’t always lead by example.
The governor has, for instance, railed against New Jersey’s plentiful authorities and agencies that past administrations have turned into patronage pits. Yet he’s been more than willing to push people with minimal credentials into jobs at the Port Authority, arguing among other things that because he had already gotten rid of so many more unqualified people there that it’s all good. Well, no, it isn’t.
The stench of the AshBritt debris removal deal also isn’t going away. After superstorm Sandy ripped through the state, Christie quickly signed on with AshBritt, “piggybacking” onto a Connecticut contract with the same company, which is another way of saying that New Jersey simply adopted the Connecticut deal without bothering to negotiate one of its own.
It was a no-bid operation, in other words, the kind Christie in the past has often found so offensive. The administration spin is that since the deal was the product of competitive bidding in Connecticut, that was good enough. The state was also operating with a sense of great urgency given the overwhelming storm damage, suggesting speed was of the essence.
But was it that important to get a deal in place that quickly? Several Shore towns chose to bypass AshBritt and strike separate deals on their own, reportedly at lower costs and without any great concerns about inferior work or delays. It also doesn’t help that Christie is friendly with former Mississippi Gov. Haley Barbour, who advised Christie to sign up AshBritt because of that company’s work along the Gulf Coast after Hurricane Katrina. Barbour, however, just happens to be the founding partner of a lobbying firm that represents AshBritt. The chairman of that firm held a fund-raiser for Christie’s re-election in Virginia in February. Christie would frown on such cozy relationships if they involved other lawmakers and businesses.
Now comes word of a supposed warning from FEMA issued shortly after the AshBritt contract was sealed that federal reimbursements could be at risk because of the piggyback nature of the contract. That bit of news was delivered to Christie by U.S. Sen. Frank Lautenberg in a February letter.
Both the Christie and Lautenberg camps said the correspondence is merely routine, and considering the Democrat Lautenberg and Republican Christie have often been at political odds, it’s no surprise that Lautenberg may have simply wanted to give the threat a bit more juice than it really deserves.
It does, however, highlight one thing: the feds don’t view the state’s no-bid piggybacking onto the Connecticut deal as simply a convenient time-saver. Fact is, there were likely better deals out there that would have cost less, and help extend the overall reach of the Sandy aid. Some towns seem to have found those deals. And the more money unnecessarily poured into AshBritt, the less there is for other relief needs.
On Friday of last week the Newark Star-Ledger ran the story "FEMA warned Christie administration that AshBritt contract could jeopardize federal funding". The article stated that a letter was send to Governor Christie in February, by U.S. Senator Frank Lautenberg, advising him that FEMA officials had contacted his office to advise, that due to the Governor's use of a "piggybacked" no-bid contract to hire AshBritt Inc. for debris removal after Hurricane Sandy, the State and therefore local municipalities, were in jeopardy of losing federal reimbursement funds due to the fact that AshBritt may have overcharged for there services. FEMA found that towns that did not use Ashbritt for their clean-up needs, struck better deals with local debris removal firms than if the would have used Ashbritt, thus saving US taxpayer money.
For people living in the communities affected by Hurricane Sandy, like Middletown, this could be huge problem if they "piggybacked" onto the State's deal to used Ashbritt for their clean-up needs after the storm.
Many of these towns are expecting to be reimbursed up to 75% of the cost for debris removal and are planning this year's budgets around this figure. Middletown for example just introduced its budget and is expecting to be reimbursed upwards of $3 million over the next couple of years from FEMA for storm related clean-up costs.
We are learning now however, that Middletown and other towns may not see reimbursements upwards of 75%, it could be far less, which in turn would wreak havoc with tax levys sometime this year and later down the road.
Yesterday, former Mississippi Governor and current lobbyist Haley Barbour confirmed to the Star-Ledger that he made calls to Governor Christie on behalf of AshBritt Inc. to secure the Hurricane Sandy debris removal contract.
Gubernatorial candidate and State Senator Barbara Buono released the following statement:
"This weekend, a peculiar ally came to Governor Christie's defense regarding his handling of the bid process for Hurricane Sandy debris removal contracts: AshBritt Inc. lobbyist Haley Barbour. Mr. Barbour admitted to proposing a no-bid solution to Governor Christie and suggested that his client receive the contract. The details of the lobbying process come only days before Mr. Barbour's partner is to hold a fundraiser in Virginia for the Governor.
"Following allegations of pay-to-play political donations, the continued lack of appropriate oversight, and the Governor's unwillingness to operate transparently, New Jerseyans are entitled to a full accounting of how AshBritt Inc.'s political connections played a role in receiving the contract. As the facts stand now, there is simply no way for New Jersey's taxpayers to know whether money designated to rebuild after Hurricane Sandy is going to the families who need it or to the profits for multi-million dollar, politically connected corporations."
Below is a timeline of events preceding Mr. Barbour's admission of directly influencing Governor Christie's decision to select AshBritt Inc. at the request of the firm.
Fall 2005 - Then Mississippi Governor, Haley Barbour hires AshBritt Inc. to remove debris caused by Hurricane Katrina.
October 2012 - AshBritt Inc. calls its lobbyist, Haley Barbour, asking him to talk with Governor Christie about using the firm to clean up debris left by Hurricane Sandy.
October 2012 - During Hurricane Sandy, Chris Christie awards a no-bid contract to AshBritt Inc.
November 2012 - Days after being awarded a state contract, AshBritt Inc. donates $50,000 to the Republican Governors Association, a group Mr. Barbour once chaired and is now dedicated to reelecting Governor Christie.
February 2012 - Ed Rogers, a founding partner in Mr. Barbour's lobbying firm, holds a Virginia fundraiser for Governor Christie.
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Hmmm, Middletown has spent nearly $14 million on Hurricane Sandy clean-up, a ton of which was paid to AshBritt, and we still have debris and garbage littering the neighborhoods of North Middletown, Port Monmouth, Belford and Leonardo. I wonder how much of those taxpayer dollars went to finance donations to the Republican Governors Association?
This letter to the editor was written by Linda Baum, Candidate for Middletown Township Committee. It appears online at the Atlantic Highlands Herald:
On May 21st, the Middletown Township Committee introduced Ordinance 2012-3060, which loosens the Township’s pay-to-play rules and reinstates the weaker state regulations that were in place prior to January 1, 2008. A public hearing on the Ordinance is scheduled for June 18 at 8 p.m.
The Township’s move follows the footsteps of the Monmouth County Freeholders, who voted unanimously on January 26th to adopt the state’s “fair and open” process in place of stronger pay-to-play rules that were put in place in the county after 2008 Operation Bid Rig.
The Township Ordinance, if adopted, opens the door to rewarding politically connected persons and businesses with municipal contracts, weakens competition, and may have the direct effect of increasing property taxes in line with higher contract costs.
New Jersey State Comptroller Matthew Boxer released a 20-page report in September 2011 entitled “Weaknesses in the Pay-to-Play Law’s “Fair and Open” Contracting System”. It states, “Qualifying for the fair-and-open exception returns the local government entity to the traditional, unregulated system of contracting.” “In effect, no-bid contracts may be awarded to favored local vendors much as they had been prior to the passage of the pay-to-play law, and without regard to issues such as vendor cost.”
Further, in order to receive certain categories of state aid, a municipality is required to have a strong pay-to-play ordinance in place. The state Department of Community Affairs recommends a model pay-to-play ordinance that is similar to the one currently in effect in Middletown.
”The main problem with “fair and open” is that it’s so easy to qualify, that it pretty much allows for business as usual,” said Heather Taylor, Communications Director for public advocacy organization The Citizens Campaign. She said, ”When we are reading in the paper that stealth PACs are springing up in Middlesex County and other places, now is not the time to be relaxing the rules, but rather the time to make sure we have the strongest laws possible.”
The latest Corzine '09 campaign ad that was released today clarifies the connections between Chris Christie and his "Pioneer" status for his massive political contributions to George Bush, and his subsequently being named as U.S. Attorney—a classic example of pay to play. Once he purchased his office, Christie brazenly awarded his political allies and fellow Bush cronies millions in no bid contracts.
Here are the Facts:
Chris Christie was a George W. Bush Pioneer and helped raise over $350,000 for Bush. Gannett News Service, in 2003, asked, “What motivates a ranger or pioneer?” One of their answers was, “there's political patronage as well. Three of Bush's 21 New Jersey pioneers in 2000 won presidential appointments. Former Republican congressman William Martini was named a federal judge, Internet communications executive Clifford Sobel was named ambassador to the Netherlands, and former Morris County Freeholder Christopher Christie was named New Jersey's top federal prosecutor.” The Star Ledger, in 2004, also indentified Christie as a Bush Pioneer. According to the New York Times, “He became counsel to the Bush campaign in New Jersey in 2000, while joining Mr. Palatucci to raise more than $350,000.” The Washington Post and Bergen Record have also reported that Christie helped raise $350,000 for George W. Bush [Gannett News Service, 11/7/03; Star Ledger, 11/19/04;New York Times, 7/21/04; Washington Post, 11/27/02; Asbury Park Press, Bergen Record, 10/10/02]
Chris Christie was named U.S. Attorney in return for his Bush fundraising. A Star Ledger editorial, in 2001, decried Christie’s appointment to U.S. Attorney and stated, “What Christie brings to the table is excellent political connections. He has energetically raised money for various candidates, including George W. Bush in 2000, and his mentor and law partner is William Palatucci, a friend of the President and a powerful figure in the state GOP… It is common for U.S. attorneys to have political ties, but Christie's party links are closer than most. This is a patronage appointment, plain and simple. This is a distinguished position, one of the most important jobs in the state. It should not become a political plum.” The New York times reported that “after the Bush victory, Mr. [Bill] Palatucci sent Mr. Christie's resume to Karl Rove, the president's chief strategist. Mr. Bush, who dubbed Mr. Christie ''Big Boy'' (an apparent reference to his hulking frame), chose him for United States attorney.” [Star Ledger, 9/7/01; New York Times, 7/21/04]
Christie went soft on crime by refusing to indict companies that ripped off the American public. Chris Christie decided not to indict several companies; instead, he gave them deferred prosecutions agreements. As the Gloucester County Times noted, these “agreements basically let potential corporate criminals go free in exchange for paying millions to have ‘monitors’ oversee their affected operations.” In an editorial titled “Going Soft on Corporate Crime,” the New York Times described deferred prosecution agreements as “cozy deals” and wrote, “Federal prosecutors have been regularly offering settlements to companies for wrongdoing that, in previous administrations, would likely have led to criminal charges. It is another disturbing example of how [the Bush] administration has taken the justice out of the Justice Department…. The cost [of deferred prosecution agreements] to the public and the rule of law is too high. If corporations believe that they can negotiate their way out of a prosecution, the deterrent effect of the criminal law will inevitably be weakened.” [Gloucester County Times, 6/27/09; Associated Press, 6/24/09; New York Times, 4/10/08]
Chris Christie awarded Bush cronies millions in no-bid contracts. “When the top federal prosecutor in New Jersey needed to find an outside lawyer to monitor a large corporation willing to settle criminal charges out of court last fall, he turned to former Attorney General John Ashcroft, his onetime boss. With no public notice and no bidding, the company awarded Mr. Ashcroft an 18-month contract worth $28 million to $52 million…. The New Jersey prosecutor, United States Attorney Christopher J. Christie, directed similar monitoring contracts last year to two other former Justice Department colleagues from the Bush administration, as well as to a former Republican state attorney general in New Jersey.” [New York Times, 1/10/08]
Chris Christie is pushing for the same Bush economic policies that wrecked our economy. Chris Christie’s proposed economic policies include Bush re-treads such as tax cuts for the wealthy and corporations and opposition to government regulations that protect the public. Christie has pledged to cut income taxes for the “very top of the wage scale.” Christie has also said “it will be a priority for the Christie administration to reduce corporate business tax rates.” While Christie has been vague on specifics, he has consistently voiced broad opposition to government regulations and has said he will “rollback,” “rescind” and “freeze” New Jersey regulations. The New Jersey Department of Banking and Insurance regulations include “consumer protections through the regulation of 16 types of businesses that provide a variety of consumer financial services.” The Department regulates “state-chartered credit unions through on-site examinations and report filings to ensure safety and soundness, as well as compliance with applicable state and federal laws.” [Fox News, Neil Cavuto, 5/4/09; 55 Way Chris Christie Will Fix New Jersey, http://www.votesmart.org/speech_detail.php?sc_id=459712&keyword=&phrase=&contain=; Gannet News, 5/16/09; 88 Ways Chris Christie Will Fix New Jersey, New Jersey Department of Banking and Insurance, http://www.state.nj.us/dobi/division_banking/index.htm
Christie is recklessly calling for tax cuts without a plan to pay for them – just like Bush. The Philadelphia Inquirer opined, “Christie, incredibly, says if elected he will cut income taxes and corporate taxes across the board. Sound good? You bet it does. But as this governor's race progresses, Christie will need to fill in a few gaps of his own. He stands to inherit the same conditions that have been battering New Jersey's economy for the past two years. For example, how would Christie balance the state budget while lowering revenue further through tax cuts? Corzine will have cut the budget in absolute dollars two years in a row. That's unprecedented in any state, and especially in New Jersey. Tax cuts would require even deeper budget reductions by Christie. That's not to say it can't be done, but Christie was deliberately vague during the Republican primary campaign about how he intends to achieve even bigger savings in Trenton.... coasting time is over for Christie. Now, he must tell voters with specificity how he would tackle the same long-term problems more effectively.” [Philadelphia Inquirer 6/7/09]
The number of unemployed Americans has increased by more than 7 million since the recession began. According to the U.S Department of Labor’s Bureau of Labor Statistics, “Since the start of the recession in December 2007, the number of unemployed persons has increased by 7.2 million.” [Department of Labor, Bureau of Labor Statistics, http://www.bls.gov/news.release/empsit
