AUDIT: Part of $11 million grant for Detroit job seekers only aided 2 people

[Buy American]

A day late and $11 million short. This City is unbelieveable. Where is Bing? Where is accountability? Where is responsibility? I thought Bing was an honest Mayor who was doing his best to look out for the taxpayers in Detroit....what happened to him? $11 million and 2 people helped to purchase clothes for a job interview....incomprehensible and I just can't wrap my brain around this lack of due diligence.

http://www.detroitnews.com/article/2...text|FRONTPAGE

[7miledog]

In theory, these funds, or the goods the funds were expended on, still exist somewhere. I understand no inventory was done, etc., but there needs to be some investigation into where the funds actually went. If the goods are still available, then they can still be put to productive use. If not, there needs to be jail time and stiff restitution from the offenders, negligent city officials included.

I am more disillusioned by Mayor Bing's administration every day [[and I was a supporter, and still am to the extent that I don't think there are many who could do a better job, except perhaps Freman). The problems are so deep, and no Executive can be expected to know all that goes on in such a large bureaucracy, but he really needs to put some better people around him and give them the authority to get to the bottom of this mess. Every day presents a different revelation, none of which reflects favorably on the city.

[jt1]

http://www.detroitnews.com/article/20120307/METRO01/203070333/Audit-Part-11M-grant-Detroit-job-seekers-only-aided-2?odyssey=tab|topnews|text|FRONTPAGE

A day late and $11 million short. This City is unbelieveable. Where is Bing? Where is accountability? Where is responsibility? I thought Bing was an honest Mayor who was doing his best to look out for the taxpayers in Detroit....what happened to him? $11 million and 2 people helped to purchase clothes for a job interview....incomprehensible and I just can't wrap my brain around this lack of due dilligence.

Certainly a lack of controls which needs to be addressed including firing those responsible. That said, the article is lacking in detail. It appears [[from what I infer) that the $11 million was for multiple functions[[ Choice Pantry, the boutique in question and a call center operation that had capacity to help 60,000 families in need).


I'd like the news to show how much moey was lost on this bs operation and how much of the 11MM was spent on functions that did provide service.

We need to root out corruption and fire/charge all those responsible but it appears the news isn't being honest in the implication that $11MM was earmarked for clothing 400 job seekers [[since that would be an allocation of $27,500 per person.

Seems to me the news is going for sensationalism to make this waste of money seem even worse. The city can't manage their money and the news can't manage their facts.

[Buy American]

If I were in the position of being Mayor of Detroit, I would take myself to every department in the CAY building personally and demand an accounting from the supervisors, appointees, commissioners, indians and chiefs. Then I would head out to all the other City departments, one by one and either have them show me how important they are to the well-being of Detroit or I'd eliminate them. I would put the fear of God into every last one of them. He isn't making enough noise except on TV and I don't know whose benefit that's for.
If Bing were on the ball, he would have ferreted out all this corruption long ago, got rid of all thug KK's friends, family and school chums and started fresh. Instead, he's going on with day to day "stuff" that has nothing to do with the existing problems in Detroit. Bills need to be paid, specifically for the police department and fire department. There are outstanding invoices that the City refuses to pay and is holding up some very important things that could change the crime rate in Detroit.

[Zacha341]

Hah! This occurs at the federal level as well. How many actual jobs did all of the recent 'stimulus' millions create?

[Buy American]

Certainly a lack of controls which needs to be addressed including firing those responsible. That said, the article is lacking in detail. It appears [[from what I infer) that the $11 million was for multiple functions[[ Choice Pantry, the boutique in question and a call center operation that had capacity to help 60,000 families in need).


I'd like the news to show how much moey was lost on this bs operation and how much of the 11MM was spent on functions that did provide service.

We need to root out corruption and fire/charge all those responsible but it appears the news isn't being honest in the implication that $11MM was earmarked for clothing 400 job seekers [[since that would be an allocation of $27,500 per person.

Seems to me the news is going for sensationalism to make this waste of money seem even worse. The city can't manage their money and the news can't manage their facts.

$11 million in this article, $20 million in another article....this certainly isn't chump change. The news media isn't to blame for this and even if a few facts are incorrect, the ultimate blame for this lack of control over their house is the City of Detroit and specifically Mayor Dave Bing.

[rjk]

Seems to me the news is going for sensationalism to make this waste of money seem even worse. The city can't manage their money and the news can't manage their facts.

I don't think they're that smart.
I've lost count of how many times I've had to re-read articles in the Freep/News in an attempt to figure it out. Usually after reading an article I end up with more questions than I do answers.

[jt1]

$11 million in this article, $20 million in another article....this certainly isn't chump change. The news media isn't to blame for this and even if a few facts are incorrect, the ultimate blame for this lack of control over their house is the City of Detroit and specifically Mayor Dave Bing.

I agree 100% with this statement: "the ultimate blame for this lack of control over their house is the City of Detroit and specifically Mayor Dave Bing"

I do however disagree that the news isn't being completely honest or thorough in their reporting. Nothing states how much of the $11 MM was wasted. If it is $1 or $11MM I will be angry at the officials that allowed it but they are using the $11MM to add to the anger when the amount wasted on the clothing program is likely a small fraction of that.

Is there significant waste in the gov't? yes. Should the officials in charge be fired and charged with crimes? Absolutely. Is the News media expected to report full facts with integrity? Yes. Are they operating with integrity when they cite an $11MM grant that was used for multiple functions and implying that it is all spent to clothe 2 people? No. Does this add to the hate, anger, resentment and mistrust towards the city? Yes.

Let's report the facts in the proper manner. There is more than enough waste to be reported on and more than enough facts to cause the anger, disgust, etc at city officials. It doesn't need to be sensationalized by half ass reporting that implies $11 MM was wasted to clothe two people when the grant money appeared to apply to other functions [[which may or may not be operating properly).

I expect city officials and News media to operate with integrity. Neither are doing so and when the news media distorts or half reports facts it takes away from a very important role they play in this whole thing.

Let's report the facts - there are more than enough to show waste, corruption and criminal activity in the city.

[SWMAP]

If you read both today's headline and the first paragraph of the article today you would have seen that both state "Part of an $11 million grant ... aided only two."

I believe that Maura Corrigan did not cite the specific amount in her discussion yesterday with Council regarding de-certifying the City as receiver of the funds because she doesn't want to compromise an on-going investigation.

i don't agree that the article represents irresponsible reporting. It is hard to understand the situation because funding is so convoluted and sometimes funded programs are so odd, such as a "boutique" for job-seekers. Couldn't the Salvation Army have done a good job with that? or Goodwill? Why was the City running a "boutique?" And before you say that the new article should have asked/answered those questions, ask yourselves if that is the reporters job here.

[brizee]

I agree 100% with this statement: "the ultimate blame for this lack of control over their house is the City of Detroit and specifically Mayor Dave Bing"

I do however disagree that the news isn't being completely honest or thorough in their reporting. Nothing states how much of the $11 MM was wasted. If it is $1 or $11MM I will be angry at the officials that allowed it but they are using the $11MM to add to the anger when the amount wasted on the clothing program is likely a small fraction of that.

Is there significant waste in the gov't? yes. Should the officials in charge be fired and charged with crimes? Absolutely. Is the News media expected to report full facts with integrity? Yes. Are they operating with integrity when they cite an $11MM grant that was used for multiple functions and implying that it is all spent to clothe 2 people? No. Does this add to the hate, anger, resentment and mistrust towards the city? Yes.

Let's report the facts in the proper manner. There is more than enough waste to be reported on and more than enough facts to cause the anger, disgust, etc at city officials. It doesn't need to be sensationalized by half ass reporting that implies $11 MM was wasted to clothe two people when the grant money appeared to apply to other functions [[which may or may not be operating properly).

I expect city officials and News media to operate with integrity. Neither are doing so and when the news media distorts or half reports facts it takes away from a very important role they play in this whole thing.

Let's report the facts - there are more than enough to show waste, corruption and criminal activity in the city.

And it's SO OBVIOUS that this story is trying to paint a narrative it's infurating.

It's obvious some people need to lose both their jobs and a few years of freedom because of this.

But to arrange the story like this with the most sensationalistic title possible...it's just irresponsible.

Why is it so hard to just tell the truth and do the right thing?

[Det_ard]

$11 million in this article, $20 million in another article....this certainly isn't chump change. The news media isn't to blame for this and even if a few facts are incorrect, the ultimate blame for this lack of control over their house is the City of Detroit and specifically Mayor Dave Bing.

Yes, but it's not just there. It's somewhat inherent in these programs that government employees will take less care with taxpayer funds than if it were their own money.

Case in point, Pontiac recently had to hurry up and spend some federal funds, or the money would go back. One decision they made was to use $3.8 million of that to build some new houses and rehab others in the area SE of the Loop. If you know Pontiac you know that's not a very desirable area. Original homes there are selling for $5K - $15K depending on condition. There have been other new construction homes built in the last decade in that area [[more government-funded programs) that sell for $25K - $35K. You can pick up 3 bd / 1 bath homes in Pontiac's premier Indian Village or Seminole Hills neighborhood and be all-in, including rehab, for $30K - $45K.

So what does our state government do with that $3.8 million? [[Pontiac turned over the program to the state since they knew they didn't have the capacity to do it themselves given their budget problems and cutbacks) They could buy homes, rehab them and be all in for maximum $50K each. That would allow the $3.8 million to buy and fix 76 houses. They could probably actually do 100 homes at $38K each.

Instead they've found a way to spend $3.8 million on 19 new homes and 11 rehabs, in the ghetto-est part of Pontiac. That works out to something like $150K per new home and $85K per rehab. To make homes that'll be worth maybe $30K on the open market. And that's a high estimate, none have sold for that much recently, and most existing homes in that area sell for less than $10K.

So I'm not surprised when government does dumb things with our money. Detroit may be the poster child for ineptness, but the problem in inherent in the system.

[jt1]

If you read both today's headline and the first paragraph of the article today you would have seen that both state "Part of an $11 million grant ... aided only two."

I believe that Maura Corrigan did not cite the specific amount in her discussion yesterday with Council regarding de-certifying the City as receiver of the funds because she doesn't want to comprimise an on-going investigation.

i don't agree that the article represents irresponsible reporting. It is hard to understand the situation because funding is so convoluted and sometimes funded programs are so odd, such as a "boutique" for job-seekers. Couldn't the Salvation Army have done a good job with that? or Goodwill? Why was the City running a "boutique?" And before you say that the new article should have asked/answered those questions, ask yourselves if that is the reporters job here.

Agree and disagree. Yes, technically listing 'Part of' makes the headline accurate. What is inaccurate is that the writer opens with, "part of an $11 million grant intended to provide business attire to 400 low-income job-seekers instead helped only two people."

The $11 MM was for more functions that only helping to attire 400 people. That statement is false and sensationalistic. Maybe it was an oversight, maybe it was stated poorly or maybe it was intentional [[and given the integrity of our local media I believe the latter is the case)

The article also only makes casual mention of the other functions. In my opinion, there is no question that the article is written to be overly sensationalistic. If not, we need our local 'journalists' to go back to school.


As for the questions you pose. I agree, the writer should not have to ask those questions. Those should be for city officials and are very viable questions. I would however have no issues if the reporter asked city council and Bing why the boutique is not run by one of the many great non-profits.

All that aside, some city employees need to be fired over this and if appropriate charged for any/all crimes associated with it.

[Wesley Mouch]

Yes, but it's not just there. It's somewhat inherent in these programs that government employees will take less care with taxpayer funds than if it were their own money.
<snip>
So I'm not surprised when government does dumb things with our money. Detroit may be the poster child for ineptness, but the problem in inherent in the system.

The problem is that people, including most posters here, believe that its the role of government to 'create jobs' or 'fairness' or 'you-name-it'.

A much better use of the money would be to not spend it at all -- and make Detroit & Michigan a lower-tax place to do business.

The number of government programs that work is much outweighed by the number of programs that just suck money that ends up in the pockets of the government-industrial complex.

Let Detroit grow. Free from all this wasteful spending.

As my friend John once said - 'Get the hell out of my way'.

[Zacha341]

Correct. The government creates nothing, and is at this point [[ala Bush and Obama) very top-heavy, ineffective and ineffecient in the delivery of most services such as a job [[sic).

[ejames01]

What a horrible article. It's only purpose was to invoke a negative response from ignorant people. I can't believe how many people on the Detroit News website were ranting about $27,000 suits.

The only clear thing was that $148k was advanced by a contractor to without any kind of oversight by anyone that would be overseeing this project.

[ejames01]

Correct. The government creates nothing, and is at this point [[ala Bush and Obama) very top-heavy, ineffective and ineffecient in the delivery of most services such as a job [[sic).

Govt isn't supposed to create anything. It's purpose is to serve citizens and businesses.

[Lowell]

I do however disagree that the news isn't being completely honest or thorough in their reporting. Nothing states how much of the $11 MM was wasted. If it is $1 or $11MM I will be angry at the officials that allowed it but they are using the $11MM to add to the anger when the amount wasted on the clothing program is likely a small fraction of that.

Is there significant waste in the gov't? yes. Should the officials in charge be fired and charged with crimes? Absolutely. Is the News media expected to report full facts with integrity? Yes. Are they operating with integrity when they cite an $11MM grant that was used for multiple functions and implying that it is all spent to clothe 2 people? No. Does this add to the hate, anger, resentment and mistrust towards the city? Yes.

Let's report the facts in the proper manner.

Very good assessment. I think there are very few who will glance at the headline and not assume the $11 million disappeared. It is needlessly inflammatory and highly deceptive, no matter what qualifications buried in the article may state.

[ejames01]

Very good assessment. I think there are very few who will glance at the headline and not assume the $11 million disappeared. It is needlessly inflammatory and highly deceptive, no matter what qualifications buried in the article may state.

99% of the commenters on the Detroitnews believed that 11 million were spent on clothes.

[SWMAP]

It is needlessly inflammatory and highly deceptive, no matter what qualifications buried in the article may state.
Lowell, Detroit News headline and first two article words say carefully: "PART of"
The headline here on your site by the OP is the erroneous and inflammatory one because it carefully leaves out the important qualifier the the DN used.

[ejames01]

It is needlessly inflammatory and highly deceptive, no matter what qualifications buried in the article may state.
Lowell, Detroit News headline and first two article words say carefully: "PART of"
The headline here on your site by the OP is the erroneous and inflammatory one because it carefully leaves out the important qualifier the the DN used.

I wonder if the OP removed it on purpose?

[Buy American]

Well excuse me...my bad I guess. Everyone can read can't they? Just click on the link and it's all self explanatory.

We all know the truth don't we? "PART" means minimal, the rest went into someone's pockets.

[Novine]

Another example of the decline of the US newspaper industry.

[Zacha341]

I AGREE! Yet were are promised some things of private sector and interprise as though the government can do it better!

Govt isn't supposed to create anything. It's purpose is to serve citizens and businesses.

[ejames01]

Well excuse me...my bad I guess. Everyone can read can't they? Just click on the link and it's all self explanatory.

We all know the truth don't we? "PART" means minimal, the rest went into someone's pockets.

Aww man. Don't be so pessimistic. The $148,000 was definitely stolen, but the rest may have been wasted by incompetence.

[jt1]

Aww man. Don't be so pessimistic. The $148,000 was definitely stolen, but the rest may have been wasted by incompetence.

Don't know if I should laugh or cry since that statement is so true.