HUD
INVESTIGATION FINDINGS POINT TO IMPROPRIETIES
After two inquiries in one month into the procurement practices of the Peekskill Housing Authority Board of Commissioners, an investigation by the Department of Housing and Urban Development revealed that the Board violated HUD regulations, in both instances, under Republican councilman Mel Bolden’s chairmanship of the Housing Authority. The first of these violations: a $69,000 contract was awarded to a politically connected firm for security cameras to be placed at Bohlmann Towers. The company, Advantech, submitted the highest bid and was selected over two other qualified firms that submitted lower bids. Advantech was the host server for the Republican City Committee’s website until the HUD investigation into the security camera contract began. Because the low bidder filed a complaint with HUD, an investigation was commenced and the contract with Advantech was not completed. Due to this impropriety, the residents of the Housing Authority complex on Main Street are now without security cameras. Furthermore, HUD found that no-bid contracts were granted to a politically connected law firm for a series of legal fees in which no caps were placed on the extent to which attorneys could bill, and no record was maintained to justify the no-bid process. This legal firm was hired in March, 2007 to assess the grounds on which the Board of Commissioners could fire the embattled Housing Authority Executive Director, Mr. Thankachan. Mr. Thankachan had been suspended without cause in March and was reinstated to his position in May. “Councilman Bolden has a lot to answer for,” said Councilwoman Drew Claxton. “Under his leadership, the Housing Authority Board of Commissioners tried to award a contract to an unqualified and politically connected firm. They hired lawyers but did not have the ability to pay them from Housing Authority funds. Since these lawyers are already under contract with the City for union and personnel matters, I’m concerned that City taxpayers will be footing the bill for this Housing Authority impropriety,” continued Claxton. “These actions have put the safety of Bohlmann Towers residents in jeopardy, will cost the taxpayers money, and have caused disruption and dissension between Public Housing Authority residents and the Housing Authority’s Board of Commissioners,” said Councilman Don Bennett. “The fact that Councilman Bolden then resigned his Housing Authority position in the middle of this investigation is quite interesting,” concluded Bennett. “Now that these findings have been issued by HUD, it’s time to demand closer HUD oversight of the PHA,” stated Councilwoman Foster. “The purchasing improprieties are another example of the Board’s inability to effectively discharge its duty. In addition to the complaints by residents about the behavior of Commissioners during Board meetings and in daily encounters with staff and residents, the Board of Commissioners has been unable to get a quorum for several meetings because of the Chairman’s resignation, the refusal of the acting Chair to appoint the tenants’ representative to the Board, and the incarceration of another Commissioner,” continued Foster. “I am asking for the Regional Director of the Housing and Urban Development agency to appoint a permanent advisor to the Peekskill Housing Authority Board to oversee Board meetings, finances, and resident relations. This oversight appears necessary until the Board can stabilize itself.” When allegations of bid-rigging and no-bid contracts emerged, Peekskill council members Drew Claxton, Don Bennett, and Mary Foster sent a letter, dated March 13, 2007, to New York State Attorney General Andrew Cuomo, U.S. Attorney Michael Garcia, and U.S. Congressman John Hall asking for an investigation. The findings by HUD state that, “the Board of Commissioners of the Peekskill Housing Authority failed to adhere to procurements requirements,” and that no documents existed which supported the qualifications of Advantech and the decision of the Housing Authority’s Board of Commissioners to grant them the security camera contract. Additionally, the HUD found no documents in the Peekskill Housing Authority’s files that supported competitive or noncompetitive procurement practices for legal services awarded by the Board of Commissioners after their hotly-contested suspension of the Housing Authority’s Executive Director, Mr. Thankachan. Advantech, which was originally awarded the contract by the Peekskill Housing Authority under the leadership of Mel Bolden, has been a significant contributor to the Peekskill Republican Party. The company built Mayor John Testa’s political website, hosted the local GOP website, and was the host for the Republican Party’s “GoPeekskill” list serve. Advantech has since shut down its operation and shut down its phones. The Peekskill Housing Authority has been rocked with controversy over the last several months. Recently, residents of Bohlmann Towers and Dunbar Heights claim board members have harassed and intimidated them; the executive director was suspended without cause (only to have him reinstated two months later); and a board member was recently arrested on felony weapons charges. Five members of the Housing Authority Board of Commissioners are appointed solely by the mayor and 2 members are elected by the tenants. Mayor John Testa has not filled the vacancy caused by Councilman Bolden’s resignation and only one tenant representative has been allowed to join the Board. A copy of HUD’s findings can be found attached to this release. |