BUFFALO COUNCIL
Majority asks federal audit of 2 agencies
Amid claims that Buffalo’s anti-poverty programs may have been undermined by abuses of power and questionable spending, the Common Council’s ruling majority is asking the federal government to launch a full-blown audit of two city development agencies.
The U. S. Department of Housing and Urban Development has already issued a report that highlighted 19 deficiencies in the way Buffalo has spent block grant money. But five lawmakers don’t think the report went far enough in scrutinizing spending and lending practices at the Buffalo Economic Renaissance Corp. and the Buffalo Urban Renewal Agency.
They sent a letter to HUD Inspector General Kenneth M. Donohue Sr., asking him to take the “extraordinary step” of performing a “full and complete audit.”
Leading the charge is South District Council Member Michael P. Kearns, who is challenging Mayor Byron W. Brown in September’s Democratic primary.
“These are embarrassing allegations,” said Kearns. “If the mayor has nothing to hide, then he should not fear an audit.”
Brown administration officials insisted Wednesday that the request is political and unnecessary.
Finance Commissioner Janet Penksa said the city comptroller is already conducting an audit. She added that administration officials meet with HUD representatives weekly to discuss concerns. Penksa released a June 19 letter written by HUD Deputy Regional Director JoAnna Aniello indicating that some “positive steps” have been taken to increase the city’s effectiveness in operating the block grant program.
“I can’t for the life of me understand why [Council members] would want to bypass the regional HUD office and the comptroller,” said Penksa. “There are no issues for the inspector general to review.”
The Council’s call for an expanded review was made at a news conference outside a shuttered restaurant on Delaware Avenue near West Delavan Avenue.
HUD officials have raised concerns about the use of anti-poverty block grant funds for One Sunset. The restaurant received $160,000 in city and county loans and grants before it closed last December. An investigation by The Buffalo News concluded that One Sunset was premised on a faulty business plan and that Buffalo Economic Renaissance Corp. employees circumvented the agency’s loan committee to snare money for the restaurant.
City Comptroller Andrew A. SanFilippo said his audit will be “thorough” even though it is not a top-to-bottom review of operations. If evidence of wrongdoing is detected, SanFilippo said, he will hire outside auditors with expertise in ferreting out fraud. He said it is the Council’s prerogative to request a federal audit.
Peter K. Cutler, Brown’s chief spokesman, claimed the Council action is fueled by the upcoming primary faceoff.
“This is yet another example of Council Member Kearns’ thinly veiled political agenda masquerading as good government,” said Cutler. “With Mickey, it’s all politics, all the time.”
Kearns denied the allegation, and he was backed up by some Council peers.
“It’s not political,” said Niagara Council Member David A. Rivera. “This is money that is supposed to go to the poorest of the poor.”
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