Slushgate Reforms Revisited?
February 9th, 2010
Before the ink is dry on the indictment of Larry Seabrook, fellow Councilmember Peter Vallone Jr. is reiterating his call for a ban on giving discretionary funding to any groups that “employ family members, staff members or former staff members who have been employed by the council within the prior year,” according to a press release from his office.
“As we’ve seen all too often, not-for-profit groups established by elected officials, which then employ family or staff, are often the source of abuse. Preventing city money from flowing to these groups is a necessary step toward reform,” Vallone said in a prepared statement.
This morning, the U.S. Attorney’s Office for the Southern District released a 65-page indictment charging Seabrook with fraud, extortion and money laundering. Part of the indictment alleges Seabrook directed discretionary funds to nonprofits that he in fact controlled. Seabrook then installed family members and friends as staff at the nonprofits, effectively funneling hundreds of thousands of dollars to those closest to him, according to the indictment.
When the slush fund scandal first came to light in 2008, Council Speaker Christine Quinn enacted several reforms at the council to make sure groups that received discretionary funding were properly vetted. The reforms did not prevent council members from directly funding groups that employ their family or friends. Council members must disclose conflicts of interests, and their discretionary funding cannot go directly towards paying a family member’s salary.
Vallone floated his proposed ban immediately after the slush fund broke. But in the last session it received no traction.
By Courtney Gross on February 9, 2010, 5:06 pmIn category: Albany, City Hall, Electoral Politics, Gotham City, Governing, Law, Public Finance | No Comments »

