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DC EXAMINER: Council opened door for nonesistent groups to nab earmarks

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By: Michael Neibauer
Examiner Staff Writer
July 15, 2009

D.C. Council members watered down their own earmark rules as they developed and ultimately approved the fiscal 2009 budget, creating a loophole that allowed six nonexistent nonprofits linked to Councilman Marion Barry to snag $450,000 in taxpayer funds.The entities, tied to Barry’s office in published accounts, received $75,000 each through the 2009 Budget Support Act, which earned final approval in July 2008. But none of the organizations was incorporated until Oct. 29 — 28 days after the fiscal year began. It is unclear whether any operated before that date.In the summer of 2008, the council voted to allow nonprofits to receive city money without producing incorporation papers. That appears to have opened the door for the nonexistent non-profits to qualify for taxpayer cash.

"You can't always legislate against people being able to manipulate a process to engage in wrongdoing," Ward 3 Councilwoman Mary Cheh said Tuesday. "No one anticipated using the process to make up organizations on the fly."

But former Councilwoman Carol Schwartz voted against loosening the requirements last year. "I fought a very lonely battle for a very long time, and my very greatest fears are now being realized," Schwartz said.

The earmarks in question went to Ward 8 Clean & Sober, Ward 8 Clean & Green, the Ward 8 Youth Leadership Council, the Ward 8 Education Council, the Ward 8 Health Council and the Ward 8 Workforce Development Council. Those same organizations are slated to receive another $575,000 in fiscal 2010.

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