Michael Cervay calls for independent auditor to look at the Cincinnati Empowerment Corporation

City executive calls for audit of Empowerment Corp.
Cincinnati Business Courier - 5:58 PM EDT Wednesdayby Dan Monk

The city of Cincinnati's director of community development and planning wants to hire an outside auditor to examine the finances of the Cincinnati Empowerment Corp.

This, after two recent controversies over potential conflicts of interest among the agency's board members, employees and consultants.

"I see a lot of smoke and I want to make sure how much fire there is," said Michael Cervay, who advocated the hiring of an independent auditor during a June 28 meeting with city finance and legal officials.

The meeting was held in response to a June 7 memo by city council members Chris Bortz and Jeff Berding. They asked interim City Manager Dave Rager to freeze "all reimbursements and administrative drawdowns" to the federally funded agency until the city can conduct a "full audit" of "potentially inappropriate expenditures."

The Courier reports that the decision to freeze the funds and conduct the audit will be made by the end of the week. I can't see them not doing it at this point.

"Enough questions have been asked that I have not been able to answer that I feel I need the information in order to be assured that no irregularities exist," Cervay said.

I think that Michael Cervay is doing the right thing, and I commend him.

****************UPDATE*****************

Inner-city nonprofit's funds frozen
Empowerment Corp. VP: City's action premature
BY GREGORY KORTE ENQUIRER STAFF WRITER


Looks like they aren't going to wait out the whole week after all.

The city of Cincinnati has frozen its funding for a nonprofit organization that helps inner-city neighborhoods after questions arose about conflicts of interest involving its board and staff.

Those questions have sparked at least two reviews of the Cincinnati Empowerment Corp. The city and the U.S. Department of Housing and Urban Development said Wednesday they have launched investigations.

Check this out for doublespeak and run it through the bullshit detector:

The vice chairman of the Empowerment Corp. board, Robert O'Neal, told City Council on Wednesday that the city's action was premature.

"I'm saying there are people here to answer any questions. Do not take what's being reported in the paper. We've had three financial audits," he said. "We're willing to work for the community and do the work we are supposed to do."

Afterward, O'Neal declined to answer questions from The Enquirer. "I only talk about what the board tells me to talk about," he said.

Pay no attention to the man behind the curtain. And don't worry, we will answer all of your questions. Unless of course you actually have questions. Then I will have to admit that I am a board puppet with Garrett and Junebugs hand up my yass.

I remember when CityLink skipped and backed out of public engagments, and when they didn't show up when requested by the City Administration. When Council finnaly voted against them they complained that they never got the chance to explain themselves. They had plenty of chances. Likewise with the Empowerment Zone. You don't see Harold Cleveland making a comment in this article. He is speaking these days through his lawyer. Len Garrett and Junebug are mum as well. They sent out O'Neal because at this point he is one of the few left not facing indictment.

The Cincinnati Empowerment Corporation has been asked questions. Requests have been made for documents. That haven't responding to the questions or document requests. If you read the article you will find that they were years late in filing their audits with the City. Those are required filings, not requests.

The addition of the HUD audit is big news. We are bringing down the hammer.