Friday, Aug. 17, 2007

State prosecutor subpoenas members of National Harbor grant committee

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The office of State Prosecutor Robert Rohrbaugh has apparently subpoenaed members of a committee that came under fire for distributing developer grants to politically connected groups in Prince George’s County.

The grants committee, whose members resigned earlier this year, was tasked with distributing $350,000 a year from the developer of the 300-acre National Harbor project in Oxon Hill.

Joe Henson, a former committee member, said he received a subpoena July 23 that was signed by Peggy Magee, clerk of Prince George’s County Circuit Court, and witnessed by Chief Administrative Judge William D. Missouri. He said he also received a letter dated July 17 and signed by deputy state prosecutor Thomas McDonough that asked grant recipients to provide all correspondence with County Executive Jack B. Johnson (D), County Council members and The Peterson Cos., developer of the National Harbor hotel and retail project.

The Office of the Maryland State Prosecutor investigates alleged crimes and reports findings to the Maryland attorney general and to the state’s attorney with jurisdiction over the matter.

Sarah Cavitt, president of the Indian Head Highway Area Action Council Inc., said her nonprofit received a little more than $8,000 for a dictionary project from the group and confirmed that she, too, received McDonough’s letter asking for details, including bank transactions.

Rohrbaugh would not comment. ‘‘We don’t confirm or deny that we are investigating any matter,” he said.

The investigation puts a spotlight on a grant process that community members said was disorganized, questionable and opaque from the start. And it comes as the county is attempting to overhaul the system by replacing the original grants committee with the Prince George’s Community Foundation.

‘‘That money is such a mess because it could have really done some good work in Prince George’s County,” said Terence Collins, executive director of the Community Ministry of Prince George’s County. He said his organization, which provides food and shelter for the homeless, applied twice for a $40,000 grant and never received a response.

The seven-member grants committee was created March 15, 2006, to review applications from community groups and decide who would receive grants. The Peterson Cos. agreed three years ago to pay $350,000 per year for 10 years to local nonprofits.

The committee, which included representatives for Peterson, Johnson and three members of the County Council, came under scrutiny earlier this year when The Washington Post revealed that grants were given to groups that had not applied for the funds or were affiliated with committee members. Johnson was criticized for presenting money during last year’s campaign season to groups that had not applied for grants.

The grants committee reported in late February that it gave out $700,000 to nearly 110 groups and programs over the past two years.

Henson said he provided his statement to a grand jury in writing last week. He said the six other members on the committee probably received subpoenas. However, those committee members did not return calls for comment.

‘‘There have not been any subpoenas or anything issued for the county executive,” Johnson spokesman John Erzen said.

Johnson was sharply criticized by the grants committee in June. Despite Johnson’s statements in late March that the Prince George’s Community Foundation would partner with the committee, the committee disbanded in June after criticizing Johnson in a resignation letter for failing to defend the group.

‘‘Our single most disappointment in all of this is that you, as County Executive, have not publicly supported us or championed our efforts to the press or the public ... we have all but been left to ‘twist in the wind,’” the committee said in the June 21 letter to Johnson.

‘‘Furthermore, there were grants awarded that the committee had no knowledge of, yet, we were held accountable for the awarding of those grants,” the letter stated.

Henson insists some of the most controversial grants were made without the knowledge of committee members, but that more than 90 of the grants went to genuine organizations, including the $41,000 that he received for Greater Fort Foote Area Recreational Cultural and Historical Council Inc., where he is president.

The resignation letter was drafted with consensus of all members, Henson said, but they could not affix their signatures to it since they live far apart.

‘‘We are not aware of any letter,” Johnson spokeswoman Denise Roberts said, adding, ‘‘And anyways, this committee is no longer managing the funds.”

Johnson and Council Chairwoman Camille Exum (D-Dist. 7) of Seat Pleasant signed an agreement last month that gave the community foundation complete oversight of the distribution.

The community foundation board was recently expanded to include Johnson’s wife, Leslie Johnson, and Beatrice P. Tignor, former chairwoman of the county school board, as well as other county government officials.

Community foundation marketing director Lucenia Dunn confirmed the original grants committee has been written out of the process and backed off earlier statements that it would be a partner.

‘‘We’ve never formed a partnership. That may have been discussed in the very beginning, but as the process worked through, the decision was made that the money would come directly to the foundation,” she said.

Dunn said that the group is still drafting the application guidelines, and that Peterson has not yet given it the $350,000 for fiscal 2008, which began July 1. ‘‘We expect [to receive the money] any day now,” she said.

The defunct committee included Michael E. Arrington, president and CEO of Annapolis government relations firm Capital Legislative Solutions, who was appointed to the group by Peterson and is a Johnson ally; Veronica Davila, a representative for Exum; and James Haynes, appointed by Councilwoman Marilynn M. Bland (D-Dist. 9) of Clinton.

Councilman Tony Knotts (D-Dist. 8) of Temple Hills appointed Henson, while Johnson appointed the Rev. Kerry Hill, the Rev. Delmond Coates and La Donna Tucker.

David Billings, Bland’s chief of staff, said the committee disbanded after the community foundation was given authority to process the grant applications.

Billings was not aware of any subpoena received by Bland’s committee appointee, but said, ‘‘If he has been subpoenaed, he should answer the questions honestly. I don’t see any reason why he won’t.”

Haynes did not return calls.

Arrington, who signed the committee’s checks, did not return phone calls. His daughter’s private school, Henson Valley Montessori in Clinton, and Brownie troop received a total of $30,000 in grants, The Washington Post reported.

Veronica Davila also did not return calls.

‘‘I have none,” said Andre Gingles, an attorney for Peterson Companies, when asked for his comments on the criminal subpoenas.

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