During a public forum titled 'Harrisburg:The Way Forward' sponsored by Pennlive and held at the Harrisburg University Thursday evening, Bill Cluck, Chairman of the Harrisburg Authority commented on the Forensic Audit report preformed by the Harrisburg Authority and the two day's of hearings held by the Pa Senate Local Government Committee related to the results of the audit, Cluck stated that "Crimes were committed." as well as "What you'll see is people prosecuted for perjury before the State Senate."

Archive: Recorded May 8, 2013.

State Senator John Eichelberger, Chairman of the Senate Local Government Committee is asked about the possibility of witnesses committing perjury while testifying during the October 4, and November 13, 2012 Local Government Committee hearings on the Harrisburg incinerator and the forensic audit report prepared for the Harrisburg Authority, Eichelberger stated. "We feel that there was probably perjury committed at the hearing."

Archive:

First Published Tuesday October 30, 2012.

Below is an excerpt from the Harrisburg Authority (THA) Board meeting audio files, June 21, 2001.

At this meeting, THA financial advisor Milt Lopus announced to Board members Trent Hargrove, Chair; Fred Clark; Leonard House; and John Keller that he was working on a resolution to enact a financial transaction to refund a 1992 Harrisburg School District bond issued by THA, estimated not to exceed $7 million. Lopus explains to the Board the refund will only proceed with the joint approval of THA Board, the School Board of Control, and the School Board of Directors. Lopus declares the savings to the Board would be $180,000.

However, to the Board Chair's aggravation, the Resolution the Board is being asked to vote on is not on the agenda, nor has it been given to the Executive Director or Board members for review prior to the vote.

When Board members asked general counselor Rhodes and Sinon attorney J. Bruce Walter for specific information about fees, costs of issuance, and the inclusion of John Norton of Paradyme Corporate Advisors as financial advisor, Walter explains he's unable to give them that information because he didn't have those details for the Board since the deal had been put forth less than 24 hours before by Mayor Stephen Reed.

At the urge to proceed to vote, THA Chair Trent Hargrove expressed concern about not only the lack of Board review, but also the ethical issues associated with the fact that at the time, both he and Fred Clark served not only on THA Board, but also on the School Board of Control. Hargrove says, "I think those are legitimate issues."

To placate the tension, Executive Director suggests the Board bring forth a resolution to permit the Chair to act on the resolution to approve the school debt issue based on review by THA solicitor at a later date.

Upon Clark's suggestion, Hargrove abstains from the vote, and the resolution is passed with the agreement of all other THA Board members.

Part 1-- A resolution to pass a resolution at a later date

Part 2-- "This just walked in the door"

Part 3-- "Issues are arising on this deal"

by Tara Leo Auchey

*Milt Lopus also served on the Harrisburg Board of Control - James Roxbury.

Archive:

Published October 23, 2012.

During the October 4, 2012 PA Senate Local Government Committee hearing on the debt crisis of the Harrisburg Authority (THA), former THA Board member Fred Clark explained the process and procedure of the Board voting on financial transactions. Committee Chair Senator John Eichelberger asked Clark, "Who was guiding Authority members? What was it like when you were on the ground there?"

In corroboration with his testimony that Board members made decisions based on the advice of appropriate professionals, Clark told the Committee that every vote the Board made was preceded with a introduction by the Executive Director and a presentation by professionals who gave the Board rationale for how to vote. Clark declared that for every vote, "absolutely, unequivocally professionals there making a case for why and what we were doing."

However, listening to various audio recordings of THA Board meetings during Clark's tenure, his testimony is contradicted by his own apparent frustration at a lack of professional representation and explanation at public Board meetings. On February 22, 2006, for example, Executive Director Tom Mealy presented the Board with a resolution for an agreement between the ARM Group, Inc. and THA regarding a Wind Energy Project Study in an amount not to exceed $352,795.00. When Clark asked where the representatives of the ARM Group, Inc were, Mealy responded that they weren't asked to come.

What ensues is a tense discussion about the expectations put on the Board and the resentment of Board members for feeling as if they are being asked to "rubber stamp" resolutions put before them. At one point, acting Chair John Keller states, "I personally in my opinion feel the professional people that do business with the Authority have been taking this three man board for extremely for granted."

Both Clark and Keller proclaim they have been saying the same thing for a long time about the voting procedure.

Despite their protestations of the process, the Board unanimously approved the resolution put before them without professional advice on the matter. Therefore, it seems Senator Eichelberger's questions still stands, "Who was guiding the Authority members?"

by Tara Leo Auchey

Video. ARN Group Contract.

Photos/Natalie Cake