WCP: Barry Involved in Suspect NonProfit Dealings - sent $450,000 to nonexistent organizations

Excerpt:

By Mike DeBonis
Jul. 16 - 22, 2009 (Vol. 29, #29)

Like all of his colleagues on the D.C. Council, Ward 8 Councilmember Marion Barry has made ample use of the city's legislative earmarks—grants that politicians can steer toward their favorite nonprofit groups.

Yet few have shown Barry's mastery in funneling those earmark monies to organizations that share his agenda. City records show that Barry has directed nearly $1 million in city funds to six groups under the apparent control of his own staff. What's more striking about the arrangements is how they came about:

Barry secured council funding for the groups in June 2008. That was five months before the groups even existed—that is, before they were properly registered with the D.C. Department of Consumer and Regulatory Affairs (DCRA).

The corporation documents appear to be marred by highly irregular representations. Two supposed incorporators of multiple organizations say their signatures were forged onto the papers, and one alleged director is a person who doesn't exist.

The documents were drawn up by paid Barry staffers and notarized by a close political ally of Barry. The incorporation papers for each group were virtually identical, with only the group names and the names of the incorporators and corporate directors changing. A Barry associate closely oversees the operations of all the groups.

The groups have just the sort of names you'd expect from do-gooder associations: the Ward 8 Education Council [
PDF], the Ward 8 Workforce Development Council [PDF], the Ward 8 Health Council [PDF], the Ward 8 Youth Leadership Council [PDF], Clean and Sober [PDF], and Clean and Green [PDF]. They were registered with the city on the same day, Oct. 29, 2008.

Each of them received $75,000—$450,000 total—in District funds.

After revelations that Barry directed $15,000 in council money to former girlfriend Donna Watts-Brighthaupt, the creation and management of the nonprofits raises additional questions about Barry's use of public funds. Under this nonprofit arrangement, he has been able to use the council's earmark allotment to effectively expand his council offices, furthering the reach of his legendary patronage.

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