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"disqusTitle": "SF City Attorney Dennis Herrera Tapped to Take Over Scandal-Laden Public Utilities Commission That He Investigated",
"title": "SF City Attorney Dennis Herrera Tapped to Take Over Scandal-Laden Public Utilities Commission That He Investigated",
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"content": "\u003cp>Over the past year, San Francisco City Attorney Dennis Herrera has rooted out wrongdoing in an expansive, still unfolding city corruption scandal.\u003c/p>\n\u003cp>Now, Herrera has been tapped to lead one of the agencies at the center of that scandal — the San Francisco Public Utilities Commission — a move announced Monday by Mayor London Breed.\u003c/p>\n\u003cp>As head of the city's water and power agency, Herrera would be tasked with reducing San Francisco's dependency on PG&E, California's largest utility, which has itself drawn heavy scrutiny in recent years.\u003c/p>\n\u003cp>The move would also leave an empty seat at the helm of the City Attorney's Office, leading to a potential power shuffle in city government. Those rumored to be vying for the seat include two sitting supervisors, the head of the local Democratic Party and a state assemblymember.\u003c/p>\n\u003cp>https://twitter.com/LondonBreed/status/1386728480360988674\u003c/p>\n\u003cp>While some of those rumored to be potential candidates denied a run outright, former city supervisors David Campos and Jane Kim, and current Assemblymember David Chiu, D-San Francisco, both responded to inquiries with statements that left the door open.\u003c/p>\n\u003cp>If recommended by the SFPUC, Herrera would assume the general manager position previously held by Harlan Kelly, \u003ca href=\"https://www.kqed.org/news/11849113/u-s-attorney-charges-san-francisco-department-head-with-fraud-in-connection-to-bribery-scheme\">who stepped down in November after being charged\u003c/a> by the U.S. attorney's office in the city's sprawling corruption scandal. Attorneys alleged Kelly accepted dinners and a lavish trip to China paid for by a city permitting agent — who has since pleaded guilty — in exchange for favorable treatment securing contracts.\u003c/p>\n\u003cp>As head of the agency, Herrera told KQED he'd be ready to clean house.\u003c/p>\n\u003cp>[aside label=\"related coverage\" tag=\"san-francisco-corruption\"]\"There's obviously been a void of leadership at the Public Utilities Commission,\" he said. \"And the mayor and I, in the course of our discussions about the executive leadership of that agency, each came to the conclusion that putting the city's top watchdog in that position would do a great deal to help restore the legacy and the reputation of that agency and at the same time demonstrate our city's commitment to bringing affordable public power to San Francisco.\"\u003c/p>\n\u003cp>In a statement, Breed said she's \"proud\" to nominate Herrera for the role.\u003c/p>\n\u003cp>\"Dennis has been a great champion in San Francisco across a wide range of issues,\" she said.\u003c/p>\n\u003cp>Herrera was initially elected as city attorney in 2001, the first Latino to ever hold that office, and has been subsequently reelected five times. His office played a key role in the U.S. Supreme Court's landmark gay marriage equality case and staunchly defended San Francisco's status as a sanctuary city against relentless attacks by the Trump administration.\u003c/p>\n\u003cp>But it's Herrera's pivotal work investigating City Hall corruption that has some officials concerned about the prospect of him switching roles now.\u003c/p>\n\u003cp>Supervisor Matt Haney, who represents parts of the South of Market and Tenderloin neighborhoods, said he's worried Herrera is leaving the City Attorney's Office as the corruption investigation into Kelly and other city department heads continues.\u003c/p>\n\u003cp>Importantly, Haney noted, Herrera's successor would be appointed by Breed, who had strong political alliances with at least three officials deeply embroiled in the scandal, including Kelly, his wife Naomi Kelly — the former city administrator — and former Public Works Director Mohammed Nuru.\u003c/p>\n\u003cp>\"You're taking somebody who is leading a corruption investigation, moving them, and then having the executive branch, the mayor, which is the body that's under investigation, appointing the replacement,\" Haney said. \"I think that should be of concern to the residents of San Francisco who really want to make sure that we have effective, ethical government with integrity.\"\u003c/p>\n\u003cp>Haney added, \"I respect Dennis Herrera and think he's a strong leader.\" But he called the role change \"highly unusual.\"\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Supervisors Catherine Stefani and Rafael Mandelman, who represent the Marina and Pacific Heights neighborhoods and the Castro, Noe Valley, and Mission neighborhoods, respectively, are also among the growing group rumored to be eyeing the city attorney job. Neither responded to a request for comment.\u003c/p>\n\u003cp>David Campos, now the chair of the San Francisco Democratic Party, told KQED, \"I haven't decided but I'm seriously considering it.\"\u003c/p>\n\u003cp>As for Jane Kim, she responded by text, \"Last I checked, we still have a city attorney!\" When asked if she would run when he leaves, she said, \"Let's chat then.\"\u003c/p>\n\u003cp>Meanwhile, state Sen. Scott Wiener, D-San Francisco, who once worked in the City Attorney's Office under Herrera, is also rumored to be considering the seat, although he told KQED he was not interested.\u003c/p>\n\u003cp>Assemblymember Chiu, meanwhile called Herrera a \"model of public service\" and an inspired choice to lead the SFPUC.\u003c/p>\n\u003cp>Asked about his interest in replacing Herrera, Chiu said, \"I haven't had time to give today's news the consideration it deserves.\"\u003c/p>\n\u003cp>He added, \"Throughout my career, I've always considered where I can best serve the city I love, and will continue to do that.\"\u003c/p>\n\u003cp>As for the ongoing corruption probe, at least one figure who was prominently involved in it isn't too worried about any future city attorney throwing a wrench in the works. Dave Anderson, the former U.S. attorney who led the federal criminal probe into the scandal (as opposed to Herrera's office, which pursued a civil investigation), said he expected the investigation to continue unimpeded.\u003c/p>\n\u003cp>\"I would expect continuity in the public corruption investigation because there is continuity in the team that's actually driving the investigation forward day to day,\" he said, noting that other leading attorneys in Herrera's office who will remain in place even if he steps down.\u003c/p>\n\u003cp>When asked for his response, Herrera sought to calm any fears.\u003c/p>\n\u003cp>Taking a role at the SFPUC \"should actually alleviate people's concerns, that you have the city's top watchdog also going over to head the PUC,\" he said. \"If there's anybody that's going to send a message that unethical or illegal conduct is not going to be tolerated, and is going to show that they're willing to cooperate with investigations and further them, it's me, since I started this public corruption investigation myself.\"\u003c/p>\n\u003cp>\u003cem>KQED's Alex Emslie contributed to this story.\u003c/em>\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>Over the past year, San Francisco City Attorney Dennis Herrera has rooted out wrongdoing in an expansive, still unfolding city corruption scandal.\u003c/p>\n\u003cp>Now, Herrera has been tapped to lead one of the agencies at the center of that scandal — the San Francisco Public Utilities Commission — a move announced Monday by Mayor London Breed.\u003c/p>\n\u003cp>As head of the city's water and power agency, Herrera would be tasked with reducing San Francisco's dependency on PG&E, California's largest utility, which has itself drawn heavy scrutiny in recent years.\u003c/p>\n\u003cp>The move would also leave an empty seat at the helm of the City Attorney's Office, leading to a potential power shuffle in city government. Those rumored to be vying for the seat include two sitting supervisors, the head of the local Democratic Party and a state assemblymember.\u003c/p>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\n\u003cp>While some of those rumored to be potential candidates denied a run outright, former city supervisors David Campos and Jane Kim, and current Assemblymember David Chiu, D-San Francisco, both responded to inquiries with statements that left the door open.\u003c/p>\n\u003cp>If recommended by the SFPUC, Herrera would assume the general manager position previously held by Harlan Kelly, \u003ca href=\"https://www.kqed.org/news/11849113/u-s-attorney-charges-san-francisco-department-head-with-fraud-in-connection-to-bribery-scheme\">who stepped down in November after being charged\u003c/a> by the U.S. attorney's office in the city's sprawling corruption scandal. Attorneys alleged Kelly accepted dinners and a lavish trip to China paid for by a city permitting agent — who has since pleaded guilty — in exchange for favorable treatment securing contracts.\u003c/p>\n\u003cp>As head of the agency, Herrera told KQED he'd be ready to clean house.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\"There's obviously been a void of leadership at the Public Utilities Commission,\" he said. \"And the mayor and I, in the course of our discussions about the executive leadership of that agency, each came to the conclusion that putting the city's top watchdog in that position would do a great deal to help restore the legacy and the reputation of that agency and at the same time demonstrate our city's commitment to bringing affordable public power to San Francisco.\"\u003c/p>\n\u003cp>In a statement, Breed said she's \"proud\" to nominate Herrera for the role.\u003c/p>\n\u003cp>\"Dennis has been a great champion in San Francisco across a wide range of issues,\" she said.\u003c/p>\n\u003cp>Herrera was initially elected as city attorney in 2001, the first Latino to ever hold that office, and has been subsequently reelected five times. His office played a key role in the U.S. Supreme Court's landmark gay marriage equality case and staunchly defended San Francisco's status as a sanctuary city against relentless attacks by the Trump administration.\u003c/p>\n\u003cp>But it's Herrera's pivotal work investigating City Hall corruption that has some officials concerned about the prospect of him switching roles now.\u003c/p>\n\u003cp>Supervisor Matt Haney, who represents parts of the South of Market and Tenderloin neighborhoods, said he's worried Herrera is leaving the City Attorney's Office as the corruption investigation into Kelly and other city department heads continues.\u003c/p>\n\u003cp>Importantly, Haney noted, Herrera's successor would be appointed by Breed, who had strong political alliances with at least three officials deeply embroiled in the scandal, including Kelly, his wife Naomi Kelly — the former city administrator — and former Public Works Director Mohammed Nuru.\u003c/p>\n\u003cp>\"You're taking somebody who is leading a corruption investigation, moving them, and then having the executive branch, the mayor, which is the body that's under investigation, appointing the replacement,\" Haney said. \"I think that should be of concern to the residents of San Francisco who really want to make sure that we have effective, ethical government with integrity.\"\u003c/p>\n\u003cp>Haney added, \"I respect Dennis Herrera and think he's a strong leader.\" But he called the role change \"highly unusual.\"\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Supervisors Catherine Stefani and Rafael Mandelman, who represent the Marina and Pacific Heights neighborhoods and the Castro, Noe Valley, and Mission neighborhoods, respectively, are also among the growing group rumored to be eyeing the city attorney job. Neither responded to a request for comment.\u003c/p>\n\u003cp>David Campos, now the chair of the San Francisco Democratic Party, told KQED, \"I haven't decided but I'm seriously considering it.\"\u003c/p>\n\u003cp>As for Jane Kim, she responded by text, \"Last I checked, we still have a city attorney!\" When asked if she would run when he leaves, she said, \"Let's chat then.\"\u003c/p>\n\u003cp>Meanwhile, state Sen. Scott Wiener, D-San Francisco, who once worked in the City Attorney's Office under Herrera, is also rumored to be considering the seat, although he told KQED he was not interested.\u003c/p>\n\u003cp>Assemblymember Chiu, meanwhile called Herrera a \"model of public service\" and an inspired choice to lead the SFPUC.\u003c/p>\n\u003cp>Asked about his interest in replacing Herrera, Chiu said, \"I haven't had time to give today's news the consideration it deserves.\"\u003c/p>\n\u003cp>He added, \"Throughout my career, I've always considered where I can best serve the city I love, and will continue to do that.\"\u003c/p>\n\u003cp>As for the ongoing corruption probe, at least one figure who was prominently involved in it isn't too worried about any future city attorney throwing a wrench in the works. Dave Anderson, the former U.S. attorney who led the federal criminal probe into the scandal (as opposed to Herrera's office, which pursued a civil investigation), said he expected the investigation to continue unimpeded.\u003c/p>\n\u003cp>\"I would expect continuity in the public corruption investigation because there is continuity in the team that's actually driving the investigation forward day to day,\" he said, noting that other leading attorneys in Herrera's office who will remain in place even if he steps down.\u003c/p>\n\u003cp>When asked for his response, Herrera sought to calm any fears.\u003c/p>\n\u003cp>Taking a role at the SFPUC \"should actually alleviate people's concerns, that you have the city's top watchdog also going over to head the PUC,\" he said. \"If there's anybody that's going to send a message that unethical or illegal conduct is not going to be tolerated, and is going to show that they're willing to cooperate with investigations and further them, it's me, since I started this public corruption investigation myself.\"\u003c/p>\n\u003cp>\u003cem>KQED's Alex Emslie contributed to this story.\u003c/em>\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cp>Since 2017, San Francisco’s garbage company, Recology, has overcharged ratepayers to the tune of $94.5 million.\u003c/p>\n\u003cp>Now they’re going to pay it back — and then some.\u003c/p>\n\u003cp>[pullquote align=\"right\" size=\"medium\" citation=\"San Francisco City Attorney Dennis Herrera\"]‘With this legal action, we are making San Francisco ratepayers whole and sending a clear message that cozying up to regulators won’t be tolerated.’[/pullquote]\u003c/p>\n\u003cp>That’s according to the San Francisco City Attorney’s Office, which on Thursday announced it had reached a settlement agreement with Recology, and will also file a lawsuit against the company in San Francisco Superior Court to make the agreement legally binding. The garbage rate overcharge revelation comes from an ongoing public integrity investigation conducted by the City Attorney’s Office and City Controller Ben Rosenfield.\u003c/p>\n\u003cp>Recology’s rates went up in 2017 under the oversight of former Public Works Director Mohammed Nuru, who federal authorities accused of accepting bribes from the company at roughly the same time the increases occurred. San Francisco City Attorney Dennis Herrera said Recology reported its incorrect accounting rates to Nuru in 2018, but Nuru did not follow up on the report.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>“With this legal action, we are making San Francisco ratepayers whole and sending a clear message that cozying up to regulators won’t be tolerated,” Herrera said in a statement. “Mohammed Nuru may have had his challenges keeping the streets clean, but he clearly excelled at cronyism, slush funds, and indifferent oversight.”\u003c/p>\n\u003cp>Under the settlement agreement, Recology will pay back some $95 million to ratepayers. It will also make a $7 million payment to the city, bumping its total tab to over $100 million.\u003c/p>\n\u003cp>The average residential ratepayer, billed between July 2017 and June 2021, will get back about $190, Herrera said. Some 160,000 San Francisco ratepayers annually were affected by the improper rate increases.\u003c/p>\n\u003cp>Recology will repay its current customers by Sept. 1, the company said in a statement. Payments to former customers will be made on a “rolling basis,” and the company will be required to perform outreach to locate them.\u003c/p>\n\u003cp>The company will also lower its garbage rates by about 6.8% starting April 1, as part of the deal.\u003c/p>\n\u003cp>“The ramifications of our work with the City Attorney on this investigation are not abstract — there are real financial consequences for San Franciscans,” Controller Rosenfield said in a statement. “It’s only right that our residents are repaid for the unjustified rates they were charged, but going forward we need stronger regulations that leave no room for systemic problems to occur.”\u003c/p>\n\u003cp>Recology will also be barred, under the agreement, from making any gifts to any city employees or any contribution to nonprofits if directed by a city employee, according to the city attorney.\u003c/p>\n\u003cp>“We value our customers, and making them whole for this mistake is our top priority,” Recology CEO Sal Coniglio said in a statement Thursday. “As soon as we learned of the mistake, we took immediate action.”\u003c/p>\n\u003cp>Herrera’s office also alleges that Recology and its affiliated companies — Sunset Scavenger Company and Golden Gate Disposal & Recycling Company — regularly gave gifts of money, meals and accommodations to city employees to influence decisions.\u003c/p>\n\u003cp>Also on Thursday, Supervisor Aaron Peskin announced plans to form a task force to determine next steps for Recology, which may include recommendations for the city to eventually take over the company and perform its own garbage collection. Peskin said he plans to officially start the process of forming the group — to be composed of labor leaders, public officials and other experts — at the San Francisco Board of Supervisors meeting next Tuesday.\u003c/p>\n\u003cp>“We all owe the city attorney a debt of gratitude for doing his job rooting out fraud and corruption,” Peskin said. “But it still leaves a big public policy question” of how to regulate Recology to prevent further rate fiascos.\u003c/p>\n\u003cp>“This is not like, ‘Uh shit, we just realized we had a problem in our billing system that was inadvertently charging people $100 million over four years.’ They knew it, and we now know they knew it,” he said.\u003c/p>\n\u003cp>Running Recology like a local utility could help the city better coordinate across departments to meet its zero-waste goals, Peskin added.\u003c/p>\n\u003cp>“There’s one thing you could say about Recology — their service is actually pretty darn good,” he said.\u003c/p>\n\u003cp>Any changes to the relationship between Recology and the city may need to be approved by voters, but Peskin said he’s prepared to introduce a ballot measure next year should the task force recommend it.\u003c/p>\n\u003cp>This is the latest fallout in the \u003ca href=\"https://www.kqed.org/news/11855352/sf-mayor-breed-names-replacement-for-city-administrator-marred-by-scandal\">ever-expanding San Francisco public corruption scandal\u003c/a>, which now spans a civil investigation by the city attorney and a criminal investigation by the FBI and U.S. attorney’s office. Four city department heads have either been removed or stepped down in the ensuing scandal, including Nuru.\u003c/p>\n\u003cp>And last year, San Francisco Mayor London Breed threw herself into the fray \u003ca href=\"https://www.kqed.org/news/11801734/sf-mayor-breed-reveals-she-once-dated-mohammed-nuru-received-gift-from-him\">after publicly admitting\u003c/a> she had let Nuru — who she once dated — repair her old car as a gift, a job valued at about $5,600.\u003c/p>\n\u003ch3>How It Happened\u003c/h3>\n\u003cp>So how did Recology’s overcharges happen in the first place?[aside label=\"related coverage\" tag=\"san-francisco-corruption\"]\u003c/p>\n\u003cp>Garbage rates are set through a rate-making process originally established in the city’s 1932 charter. It gives the city the right to determine how much Recology can charge.\u003c/p>\n\u003cp>Until his downfall, Nuru was the man tasked with recommending garbage rates to the city, but his recommendations were also garbage, the city essentially said on Thursday. Nuru was \u003ca href=\"https://www.kqed.org/news/11798447/sf-public-works-director-mohammed-nuru-arrested-by-fbi\">arrested by federal authorities \u003c/a>in January 2020 on corruption charges. Among the many allegations against him, he was accused of accepting bribes from Recology through a baseball charity: Lefty O’Doul’s Foundation for Kids.\u003c/p>\n\u003cp>According to federal charging documents, Recology sent a $5,000 “holiday donation” on Dec. 5, 2016 to the foundation, whose purported goal was to provide equipment to youth baseball teams. But, in a scheme\u003ca href=\"https://www.sfexaminer.com/news-columnists/lefty-odouls-charity-used-city-contractor-donations-to-pay-for-public-works-party/\"> first revealed by the San Francisco Examiner\u003c/a>, and later referenced by the U.S. attorney’s office, that money was allegedly spent throwing lavish holiday parties for San Francisco government officials under the direction of Nuru.\u003c/p>\n\u003cp>That same month, Recology submitted its 2017 rate application increase to Nuru.\u003c/p>\n\u003cp>By May 2017, Nuru recommended raising San Francisco’s garbage rates by 14%.\u003c/p>\n\u003cp>“I believe that the costs submitted by Recology and adjusted by The City accurately reflect the cost of providing refuse collection and disposal services to San Francisco ratepayers,” Nuru said in a statement that year.\u003c/p>\n\u003cp>That rate increase can be appealed, per the 1932 agreement with Recology, to a three-person Refuse Rate Board. Two of the members of the Refuse Rate Board are Harlan Kelly and Naomi Kelly, a husband and wife who were formerly the city’s Public Utilities Commission general manager and city administrator. Both Kelly’s stepped down from their roles after becoming embroiled in the city’s corruption scandal, with Harlan Kelly facing corruption-related charges by the U.S. attorney’s office.\u003c/p>\n\u003cp>Fast forward to the 2017 holiday party for city officials, when Recology donated $15,000 to Lefty O’Doul’s Foundation for Kids, upping the number from 2016.\u003c/p>\n\u003cp>By 2018, at roughly the same time of year, that donation increased to $20,000. That same year, Recology disclosed a “revenue error” to the city — an omission of revenues, that if used in the rate-making process would have led to a 7% increase, rather than 14% increase. But Nuru never corrected the error.\u003c/p>\n\u003cp>Those garbage rates shocked San Franciscans.\u003c/p>\n\u003cp>“My first reaction was, ‘Oh, my gosh!’ ” Chris Faust, a middle school science teacher, \u003ca href=\"https://www.sfchronicle.com/bayarea/article/Jump-in-SF-garbage-bills-shocks-multiunit-11824832.php\">told the San Francisco Chronicle\u003c/a> at the time, after learning that his garbage bill had increased from $42.40 a month to $61.30. Other residents called new fees associated with the rate increase “ludicrous.”\u003c/p>\n\u003cp>The donations from Recology to the Lefty O’Doul’s charity were requested by Paul Fredrick Giusti, a former Recology executive, \u003ca href=\"https://www.justice.gov/usao-ndca/pr/san-francisco-trash-company-executive-charged-bribing-company-s-chief-san-francisco\">the U.S. attorney’s office alleged\u003c/a> in November last year.\u003c/p>\n\u003cp>Federal authorities ultimately charged Giusti with laundering $1 million in bribes to nonprofits at the behest of Nuru.\u003c/p>\n\u003cp>“This is an appalling case for our residents and businesses who have been overpaying their trash rates for years,” Mayor Breed said in a statement Thursday. “The good news is that thanks to the City Attorney, they will be getting that money back now. Not only will this make a difference for people who are struggling in this moment, but also it sends a message to everyone — from the corporations and city contractors doing business with the City to the individuals working on the City’s behalf — that we will hold everyone accountable.”\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n\u003cp>\u003cem>Bay City News contributed to this report. \u003c/em>\u003c/p>\n\n",
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"excerpt": "The San Francisco City Attorney’s Office on Thursday announced it had reached a settlement agreement with the company to repay the overcharges, and will also file a subsequent lawsuit against the company in San Francisco Superior Court.\r\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>Since 2017, San Francisco’s garbage company, Recology, has overcharged ratepayers to the tune of $94.5 million.\u003c/p>\n\u003cp>Now they’re going to pay it back — and then some.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>That’s according to the San Francisco City Attorney’s Office, which on Thursday announced it had reached a settlement agreement with Recology, and will also file a lawsuit against the company in San Francisco Superior Court to make the agreement legally binding. The garbage rate overcharge revelation comes from an ongoing public integrity investigation conducted by the City Attorney’s Office and City Controller Ben Rosenfield.\u003c/p>\n\u003cp>Recology’s rates went up in 2017 under the oversight of former Public Works Director Mohammed Nuru, who federal authorities accused of accepting bribes from the company at roughly the same time the increases occurred. San Francisco City Attorney Dennis Herrera said Recology reported its incorrect accounting rates to Nuru in 2018, but Nuru did not follow up on the report.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>“With this legal action, we are making San Francisco ratepayers whole and sending a clear message that cozying up to regulators won’t be tolerated,” Herrera said in a statement. “Mohammed Nuru may have had his challenges keeping the streets clean, but he clearly excelled at cronyism, slush funds, and indifferent oversight.”\u003c/p>\n\u003cp>Under the settlement agreement, Recology will pay back some $95 million to ratepayers. It will also make a $7 million payment to the city, bumping its total tab to over $100 million.\u003c/p>\n\u003cp>The average residential ratepayer, billed between July 2017 and June 2021, will get back about $190, Herrera said. Some 160,000 San Francisco ratepayers annually were affected by the improper rate increases.\u003c/p>\n\u003cp>Recology will repay its current customers by Sept. 1, the company said in a statement. Payments to former customers will be made on a “rolling basis,” and the company will be required to perform outreach to locate them.\u003c/p>\n\u003cp>The company will also lower its garbage rates by about 6.8% starting April 1, as part of the deal.\u003c/p>\n\u003cp>“The ramifications of our work with the City Attorney on this investigation are not abstract — there are real financial consequences for San Franciscans,” Controller Rosenfield said in a statement. “It’s only right that our residents are repaid for the unjustified rates they were charged, but going forward we need stronger regulations that leave no room for systemic problems to occur.”\u003c/p>\n\u003cp>Recology will also be barred, under the agreement, from making any gifts to any city employees or any contribution to nonprofits if directed by a city employee, according to the city attorney.\u003c/p>\n\u003cp>“We value our customers, and making them whole for this mistake is our top priority,” Recology CEO Sal Coniglio said in a statement Thursday. “As soon as we learned of the mistake, we took immediate action.”\u003c/p>\n\u003cp>Herrera’s office also alleges that Recology and its affiliated companies — Sunset Scavenger Company and Golden Gate Disposal & Recycling Company — regularly gave gifts of money, meals and accommodations to city employees to influence decisions.\u003c/p>\n\u003cp>Also on Thursday, Supervisor Aaron Peskin announced plans to form a task force to determine next steps for Recology, which may include recommendations for the city to eventually take over the company and perform its own garbage collection. Peskin said he plans to officially start the process of forming the group — to be composed of labor leaders, public officials and other experts — at the San Francisco Board of Supervisors meeting next Tuesday.\u003c/p>\n\u003cp>“We all owe the city attorney a debt of gratitude for doing his job rooting out fraud and corruption,” Peskin said. “But it still leaves a big public policy question” of how to regulate Recology to prevent further rate fiascos.\u003c/p>\n\u003cp>“This is not like, ‘Uh shit, we just realized we had a problem in our billing system that was inadvertently charging people $100 million over four years.’ They knew it, and we now know they knew it,” he said.\u003c/p>\n\u003cp>Running Recology like a local utility could help the city better coordinate across departments to meet its zero-waste goals, Peskin added.\u003c/p>\n\u003cp>“There’s one thing you could say about Recology — their service is actually pretty darn good,” he said.\u003c/p>\n\u003cp>Any changes to the relationship between Recology and the city may need to be approved by voters, but Peskin said he’s prepared to introduce a ballot measure next year should the task force recommend it.\u003c/p>\n\u003cp>This is the latest fallout in the \u003ca href=\"https://www.kqed.org/news/11855352/sf-mayor-breed-names-replacement-for-city-administrator-marred-by-scandal\">ever-expanding San Francisco public corruption scandal\u003c/a>, which now spans a civil investigation by the city attorney and a criminal investigation by the FBI and U.S. attorney’s office. Four city department heads have either been removed or stepped down in the ensuing scandal, including Nuru.\u003c/p>\n\u003cp>And last year, San Francisco Mayor London Breed threw herself into the fray \u003ca href=\"https://www.kqed.org/news/11801734/sf-mayor-breed-reveals-she-once-dated-mohammed-nuru-received-gift-from-him\">after publicly admitting\u003c/a> she had let Nuru — who she once dated — repair her old car as a gift, a job valued at about $5,600.\u003c/p>\n\u003ch3>How It Happened\u003c/h3>\n\u003cp>So how did Recology’s overcharges happen in the first place?\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Garbage rates are set through a rate-making process originally established in the city’s 1932 charter. It gives the city the right to determine how much Recology can charge.\u003c/p>\n\u003cp>Until his downfall, Nuru was the man tasked with recommending garbage rates to the city, but his recommendations were also garbage, the city essentially said on Thursday. Nuru was \u003ca href=\"https://www.kqed.org/news/11798447/sf-public-works-director-mohammed-nuru-arrested-by-fbi\">arrested by federal authorities \u003c/a>in January 2020 on corruption charges. Among the many allegations against him, he was accused of accepting bribes from Recology through a baseball charity: Lefty O’Doul’s Foundation for Kids.\u003c/p>\n\u003cp>According to federal charging documents, Recology sent a $5,000 “holiday donation” on Dec. 5, 2016 to the foundation, whose purported goal was to provide equipment to youth baseball teams. But, in a scheme\u003ca href=\"https://www.sfexaminer.com/news-columnists/lefty-odouls-charity-used-city-contractor-donations-to-pay-for-public-works-party/\"> first revealed by the San Francisco Examiner\u003c/a>, and later referenced by the U.S. attorney’s office, that money was allegedly spent throwing lavish holiday parties for San Francisco government officials under the direction of Nuru.\u003c/p>\n\u003cp>That same month, Recology submitted its 2017 rate application increase to Nuru.\u003c/p>\n\u003cp>By May 2017, Nuru recommended raising San Francisco’s garbage rates by 14%.\u003c/p>\n\u003cp>“I believe that the costs submitted by Recology and adjusted by The City accurately reflect the cost of providing refuse collection and disposal services to San Francisco ratepayers,” Nuru said in a statement that year.\u003c/p>\n\u003cp>That rate increase can be appealed, per the 1932 agreement with Recology, to a three-person Refuse Rate Board. Two of the members of the Refuse Rate Board are Harlan Kelly and Naomi Kelly, a husband and wife who were formerly the city’s Public Utilities Commission general manager and city administrator. Both Kelly’s stepped down from their roles after becoming embroiled in the city’s corruption scandal, with Harlan Kelly facing corruption-related charges by the U.S. attorney’s office.\u003c/p>\n\u003cp>Fast forward to the 2017 holiday party for city officials, when Recology donated $15,000 to Lefty O’Doul’s Foundation for Kids, upping the number from 2016.\u003c/p>\n\u003cp>By 2018, at roughly the same time of year, that donation increased to $20,000. That same year, Recology disclosed a “revenue error” to the city — an omission of revenues, that if used in the rate-making process would have led to a 7% increase, rather than 14% increase. But Nuru never corrected the error.\u003c/p>\n\u003cp>Those garbage rates shocked San Franciscans.\u003c/p>\n\u003cp>“My first reaction was, ‘Oh, my gosh!’ ” Chris Faust, a middle school science teacher, \u003ca href=\"https://www.sfchronicle.com/bayarea/article/Jump-in-SF-garbage-bills-shocks-multiunit-11824832.php\">told the San Francisco Chronicle\u003c/a> at the time, after learning that his garbage bill had increased from $42.40 a month to $61.30. Other residents called new fees associated with the rate increase “ludicrous.”\u003c/p>\n\u003cp>The donations from Recology to the Lefty O’Doul’s charity were requested by Paul Fredrick Giusti, a former Recology executive, \u003ca href=\"https://www.justice.gov/usao-ndca/pr/san-francisco-trash-company-executive-charged-bribing-company-s-chief-san-francisco\">the U.S. attorney’s office alleged\u003c/a> in November last year.\u003c/p>\n\u003cp>Federal authorities ultimately charged Giusti with laundering $1 million in bribes to nonprofits at the behest of Nuru.\u003c/p>\n\u003cp>“This is an appalling case for our residents and businesses who have been overpaying their trash rates for years,” Mayor Breed said in a statement Thursday. “The good news is that thanks to the City Attorney, they will be getting that money back now. Not only will this make a difference for people who are struggling in this moment, but also it sends a message to everyone — from the corporations and city contractors doing business with the City to the individuals working on the City’s behalf — that we will hold everyone accountable.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>\u003cem>Bay City News contributed to this report. \u003c/em>\u003c/p>\n\n\u003c/div>\u003c/p>",
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"title": "Q&A: Outgoing US Attorney Who Oversaw SF Corruption Case on the Philosophy of Scandal",
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"headTitle": "Q&A: Outgoing US Attorney Who Oversaw SF Corruption Case on the Philosophy of Scandal | KQED",
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"content": "\u003cp>San Francisco’s ever-unfolding corruption scandal has toppled the careers of four sitting city officials. After the investigation was first announced early last year, like dominoes, they fell from grace.\u003c/p>\n\u003cp>First, Mohammed Nuru, former director of San Francisco Public Works, was \u003ca href=\"https://www.kqed.org/news/11798447/sf-public-works-director-mohammed-nuru-arrested-by-fbi\">arrested on corruption charges\u003c/a> in January 2020, and lost his job. Less than two months later, Tom Hui, the former director of the Department of Building Inspection, \u003ca href=\"https://www.sfchronicle.com/bayarea/philmatier/article/SF-s-building-chief-Tom-Hui-pulls-the-plug-on-15148650.php\">faced allegations of breaching ethics laws\u003c/a> by the City Attorney’s Office and resigned before being dismissed. And in November, Harlan Kelly, the former general manager of the city’s Public Utilities Commission, faced similar charges, and stepped down from his position. His wife, Naomi Kelly, similarly abandoned her post as city administrator after being implicated in the charges against her husband, despite not being charged herself.[aside postID=\"news_11826653\" label=\"A look at policies that paved the way for the scandal\"]And the case continues to unfold. Just this week, City Attorney Dennis Herrera \u003ca href=\"https://www.sfcityattorney.org/2021/03/01/herrera-suspends-five-nuru-linked-executives-and-their-companies-from-receiving-sf-funds/\">issued first-of-its-kind orders to suspend city contracts\u003c/a> with companies and their executives who were found connected to the bribery and corruption scandal, pausing their business with San Francisco while justice takes its course.\u003c/p>\n\u003cp>Those corruption charges stemmed\u003ca href=\"https://www.kqed.org/news/11839531/report-corrupt-sf-official-directed-nonprofit-to-pay-60k-to-organizations-under-fbi-investigation\"> from a case\u003c/a> spearheaded by the U.S. Attorney’s Office for the Northern District of California, led by former U.S. Attorney David Anderson — appointed by the Trump administration — whose last day on the job was Friday, Feb. 26. President Biden has yet to appoint his successor.\u003c/p>\n\u003cp>On his way out the door, Anderson, who hails from San Jose, took time to speak with KQED reporter Joe Fitzgerald Rodriguez about his perspective leading public corruption investigations.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Anderson was quick to firmly address what is perhaps the top-of-mind question for many San Franciscans: He does not believe any incoming replacement for his job will in any way divert resources from the ongoing corruption case.\u003c/p>\n\u003cp>At any one time, about six assistant U.S. attorneys have been working on the corruption investigation, when some cases may only have one or two attorneys, he said, a commitment of resources that demonstrates the importance of the case.\u003c/p>\n\u003cp>“Is anybody among this field of candidates going to turn away from a promising investigation? It’s hard to believe,” he said.[pullquote size=\"medium\" align=\"right\" citation=\"David Anderson, former U.S. attorney for the Northern District of California\"]‘I do think that a city like San Francisco is best served not just by honest leaders, but also by an active citizenry. And I do wonder about the level of engagement that I see in San Francisco.’[/pullquote]One important caveat hung over the conversation — as an attorney, Anderson cannot comment \u003cem>directly \u003c/em>on any active case. In lieu of specifics, we asked Anderson to engage in a more philosophical conversation about corruption in general, and how his views have evolved over the course of this investigation.\u003c/p>\n\u003cp>\u003cem>This conversation has been edited for clarity and length. \u003c/em>\u003c/p>\n\u003cp>\u003cstrong>Joe Fitzgerald Rodriguez: A lot of our readers and listeners, when they first heard the news and \u003ca href=\"https://www.kqed.org/news/11838356/bribery-and-fraud-two-contractors-plead-guilty-in-sf-corruption-case\">then watched it unfold with every other official\u003c/a> over the last year, they felt it in almost all the different classic stages — anguish, anger, disappointment. When you first understood the totality of this, how did you emotionally react to that knowledge? \u003c/strong>\u003c/p>\n\u003cp>\u003cstrong>U.S. Attorney David Anderson:\u003c/strong> One of the things they try to do to you in law school is to drub the emotion out of you. You just spend so much time right from the very beginning of your training as a lawyer thinking about things with your head more than your heart. So that’s one piece of context. And the other piece of context is that I’ve been doing this job in one form or other for more than 30 years. I’ve seen a few things in every different kind of case that we do in federal court that could be held up as the source of, to use your words, anguish, anger, disappointment. And you could add a long list of adjectives to it — fear and frustration.\u003c/p>\n\u003cp>The thing that’s unique and powerful about the public corruption cases is the breach of public trust. And the idea that we are a sovereign people and the people who lead us are our public servants. And so it’s outrageous when you come to the conclusion that those who have been hired to serve the public are instead serving themselves.\u003c/p>\n\u003cp>[aside postID=\"news_11849113\" label=\"more on the expansion of the corruption scandal\"]Now, I’m talking and going with you along this philosophical line. Obviously, in the context of any particular case, defendants who’ve been charged but have not been adjudicated are presumed innocent. And I have a profound respect for that presumption of innocence. So I want to just close by emphasizing that I am reacting to general questions and not talking about any particular case.\u003c/p>\n\u003cp>\u003cstrong>And that’s totally fair. You make the point that you’ve seen a lot in your years of service. So for people who are like, ‘Oh, my God, I can’t believe my government is doing this,’ where would you put this in the context of corruption in other cities? Where would you put it on the scale?\u003cbr>\n\u003c/strong>\u003c/p>\n\u003cp>I’m not able to compare what is happening in San Francisco to other cities. I just don’t have the competency to do that.\u003c/p>\n\u003cp>The one thing that I would say that I think connects fairly to your question is that early on when I returned to the office as a U.S. attorney, I identified 25 people in my office and put each one of them in charge of one particular aspect of the myriad of different kinds of cases that we handle. And one of those 25 is an assistant U.S. attorney who I put in charge of public corruption.\u003c/p>\n\u003cp>And I said, ‘OK, what I want you to do is I want you to find the people in Chicago and in New York and in the other offices that you identify that have greater experience with public corruption cases than historically this office in San Francisco has had. Find them, talk to them, come back and tell me what it is that we should be thinking about when we do these cases. And he did that. And I think that that has been a contributor to the work that we’ve done.\u003c/p>\n\u003cp>\u003cstrong>What would you say to the people who ask, ‘Should this \u003ca href=\"https://www.kqed.org/news/11821145/months-after-sf-public-works-boss-nurus-arrest-staff-push-for-corruption-cleanup\">shake my faith\u003c/a> in my local government?’\u003c/strong>\u003c/p>\n\u003cp>I do think that a city like San Francisco is best served not just by honest leaders, but also by an active citizenry. And I do wonder about the level of engagement that I see in San Francisco.\u003c/p>\n\u003cp>Just generally speaking, with our political process, what I see is a small number of people who are highly actively engaged. And I see a larger number of people who are enjoying all the other things that San Francisco has to offer.\u003c/p>\n\u003cp>So, to the extent that looking at the cases that we have charged serves as a wake-up call for someone who is in San Francisco — maybe I should be paying more attention to this — I welcome that.\u003c/p>\n\u003cp>\u003cstrong>At this point, several people connected to the scandal have pleaded guilty and cooperated with investigators, including restaurateur Nick Bovis and Walter Wong, a permit expediter. What’s their motivation for doing so? Did they go, ‘I can’t do this anymore!’ Or was it something where, in a practical matter, fancy lawyering and whatnot, they didn’t really have much of an option in front of them?\u003c/strong>\u003c/p>\n\u003cp>I’m trying to have the conversation that you want to have and certainly can talk generally about the process by which defendants come to cooperate. That’s something that I’ve seen on both sides of the courtroom going back for four decades.\u003c/p>\n\u003cp>I think probably the easiest way to look at that is from the perspective of the client-counsel interaction and again, not talking about any particular case and certainly not intruding on any particular attorney-client privilege, but just positing sort of the hypothetical conversation. It usually goes something like this:\u003c/p>\n\u003cp>You’re confronting these charges. You’re confronting this evidence. What’s going to be your answer? And oftentimes there’s sort of a moment where the client is saying, ‘Well, you know, how come I got to answer? You’re the lawyer.’\u003c/p>\n\u003cp>But, of course, the lawyer doesn’t know the facts. The lawyer can only learn those from the client, maybe from the discovery that’s provided by the prosecutor. So eventually the conversation will move in the direction of, ‘Do we have an answer to this or don’t we?’ And if we do, then let’s get out there and provide that answer, and if we don’t, well, then let’s start planning for our day of reckoning.\u003c/p>\n\u003cp>[aside postID=\"news_11849988\" label=\"Willie Brown gives his opinion on the scandal\"]And again, looking at this from that defense perspective, looking at it from the perspective of client and counsel, you can mount a variety of non-factual defenses. If a defendant’s profound constitutional rights have been violated, you may have defenses to the charges even if the charges are true. So there’s a lot of different directions from the defense perspective that you can go. One of the things you can do is, you can cooperate.\u003c/p>\n\u003cp>And each client has to decide, is this the right move for me? And clients will do that for a variety of reasons. They’ll do it because they want to mitigate exposure. They’ll do it because they feel remorse. They want to try and make things better.\u003c/p>\n\u003cp>It does happen that you have cooperators that come to you, they come to you either in public or they come to you in secret. And then those cooperators can become an important part of taking the next step or the next half step in an investigation.\u003c/p>\n\u003cp>\u003cstrong>You touched on this a bit \u003ca href=\"https://www.kqed.org/forum/2010101882168/u-s-attorney-david-anderson-leaves-office\">on KQED’s Forum\u003c/a>, but I’m interested in the rationale. Is there a possibility your successor might decide to shift resources and say, ‘I want fewer eyes on this case and more eyes on another case?’ \u003c/strong>\u003c/p>\n\u003cp>The names I’ve heard in the public sphere of candidates to take over the U.S. attorney’s job are experienced, capable. All of them are alums of the U.S. attorney’s office. I’m thinking about this now. All of them are people with whom I’ve served previously. And so this is a strong field of candidates.\u003c/p>\n\u003cp>In some hypothetical sense, could a new U.S. attorney redirect resources? Yeah.\u003c/p>\n\u003cp>Is anybody among this field of candidates going to turn away from a promising investigation? It’s hard to believe.[pullquote size=\"medium\" align=\"right\" citation=\"David Anderson\"]‘It’s outrageous when you come to the conclusion that those who have been hired to serve the public are instead serving themselves.’[/pullquote]\u003cstrong>In looking back at this major corruption case that has shaken the city, how do you feel about what you and your officers were able to accomplish? \u003c/strong>\u003c/p>\n\u003cp>In a sense, the business of a prosecutor is always unfinished. There’s never a point where you wake up and you’re like, ‘Oh, good news, no crime today!’ So every day you drive your docket is a day that you’re pushing back on the evils of our community.\u003c/p>\n\u003cp>And so whether I served for two weeks or two years or two decades, that idea of unfinished business would still be true.\u003c/p>\n\u003cp>\u003cstrong>So what will you do now? Is this a John Elway, ‘I’m going to Disneyland,’ moment for you?’\u003c/strong>\u003c/p>\n\u003cp>I’ll take some time and then head back to private practice. I’ve done basically three things in my professional life: I’ve clerked, I’ve prosecuted and I’ve defended. So I’ll head back to private practice — I’ve enjoyed that as well.\u003c/p>\n\u003cp>It has been interesting to take part in the public life of San Francisco as I’ve been able to do as U.S. attorney, and I would say that I’m describing that as an interesting experience, sort of in the same way that my dad might say, ‘This was an interesting new dish that we got for dinner tonight.’ It’s pluses and minuses.\u003c/p>\n\u003cp>Being U.S. attorney is a great job. You are not tethered in your work to the demands of your clients. Instead, you’re given a broad mandate directly from the president, from the Senate, from the attorney general, to effectuate justice as effectively as you possibly can in your district. You’re given incredible talent to act upon that in the sense of 135 [assistant attorneys], hundreds of staff, and then the partnership of all of the law enforcement agencies with which we team. So it’s an amazing position in all those ways. And then also, you know, you get an opportunity like I’m talking to you, to speak in a public way. So all those things are fabulous.\u003c/p>\n\u003cp>But at the same time, in private practice, you’re just obsessing over your clients, over their problems. And then that can be pretty great, too.\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>San Francisco’s ever-unfolding corruption scandal has toppled the careers of four sitting city officials. After the investigation was first announced early last year, like dominoes, they fell from grace.\u003c/p>\n\u003cp>First, Mohammed Nuru, former director of San Francisco Public Works, was \u003ca href=\"https://www.kqed.org/news/11798447/sf-public-works-director-mohammed-nuru-arrested-by-fbi\">arrested on corruption charges\u003c/a> in January 2020, and lost his job. Less than two months later, Tom Hui, the former director of the Department of Building Inspection, \u003ca href=\"https://www.sfchronicle.com/bayarea/philmatier/article/SF-s-building-chief-Tom-Hui-pulls-the-plug-on-15148650.php\">faced allegations of breaching ethics laws\u003c/a> by the City Attorney’s Office and resigned before being dismissed. And in November, Harlan Kelly, the former general manager of the city’s Public Utilities Commission, faced similar charges, and stepped down from his position. His wife, Naomi Kelly, similarly abandoned her post as city administrator after being implicated in the charges against her husband, despite not being charged herself.\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>And the case continues to unfold. Just this week, City Attorney Dennis Herrera \u003ca href=\"https://www.sfcityattorney.org/2021/03/01/herrera-suspends-five-nuru-linked-executives-and-their-companies-from-receiving-sf-funds/\">issued first-of-its-kind orders to suspend city contracts\u003c/a> with companies and their executives who were found connected to the bribery and corruption scandal, pausing their business with San Francisco while justice takes its course.\u003c/p>\n\u003cp>Those corruption charges stemmed\u003ca href=\"https://www.kqed.org/news/11839531/report-corrupt-sf-official-directed-nonprofit-to-pay-60k-to-organizations-under-fbi-investigation\"> from a case\u003c/a> spearheaded by the U.S. Attorney’s Office for the Northern District of California, led by former U.S. Attorney David Anderson — appointed by the Trump administration — whose last day on the job was Friday, Feb. 26. President Biden has yet to appoint his successor.\u003c/p>\n\u003cp>On his way out the door, Anderson, who hails from San Jose, took time to speak with KQED reporter Joe Fitzgerald Rodriguez about his perspective leading public corruption investigations.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Anderson was quick to firmly address what is perhaps the top-of-mind question for many San Franciscans: He does not believe any incoming replacement for his job will in any way divert resources from the ongoing corruption case.\u003c/p>\n\u003cp>At any one time, about six assistant U.S. attorneys have been working on the corruption investigation, when some cases may only have one or two attorneys, he said, a commitment of resources that demonstrates the importance of the case.\u003c/p>\n\u003cp>“Is anybody among this field of candidates going to turn away from a promising investigation? It’s hard to believe,” he said.\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>One important caveat hung over the conversation — as an attorney, Anderson cannot comment \u003cem>directly \u003c/em>on any active case. In lieu of specifics, we asked Anderson to engage in a more philosophical conversation about corruption in general, and how his views have evolved over the course of this investigation.\u003c/p>\n\u003cp>\u003cem>This conversation has been edited for clarity and length. \u003c/em>\u003c/p>\n\u003cp>\u003cstrong>Joe Fitzgerald Rodriguez: A lot of our readers and listeners, when they first heard the news and \u003ca href=\"https://www.kqed.org/news/11838356/bribery-and-fraud-two-contractors-plead-guilty-in-sf-corruption-case\">then watched it unfold with every other official\u003c/a> over the last year, they felt it in almost all the different classic stages — anguish, anger, disappointment. When you first understood the totality of this, how did you emotionally react to that knowledge? \u003c/strong>\u003c/p>\n\u003cp>\u003cstrong>U.S. Attorney David Anderson:\u003c/strong> One of the things they try to do to you in law school is to drub the emotion out of you. You just spend so much time right from the very beginning of your training as a lawyer thinking about things with your head more than your heart. So that’s one piece of context. And the other piece of context is that I’ve been doing this job in one form or other for more than 30 years. I’ve seen a few things in every different kind of case that we do in federal court that could be held up as the source of, to use your words, anguish, anger, disappointment. And you could add a long list of adjectives to it — fear and frustration.\u003c/p>\n\u003cp>The thing that’s unique and powerful about the public corruption cases is the breach of public trust. And the idea that we are a sovereign people and the people who lead us are our public servants. And so it’s outrageous when you come to the conclusion that those who have been hired to serve the public are instead serving themselves.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>Now, I’m talking and going with you along this philosophical line. Obviously, in the context of any particular case, defendants who’ve been charged but have not been adjudicated are presumed innocent. And I have a profound respect for that presumption of innocence. So I want to just close by emphasizing that I am reacting to general questions and not talking about any particular case.\u003c/p>\n\u003cp>\u003cstrong>And that’s totally fair. You make the point that you’ve seen a lot in your years of service. So for people who are like, ‘Oh, my God, I can’t believe my government is doing this,’ where would you put this in the context of corruption in other cities? Where would you put it on the scale?\u003cbr>\n\u003c/strong>\u003c/p>\n\u003cp>I’m not able to compare what is happening in San Francisco to other cities. I just don’t have the competency to do that.\u003c/p>\n\u003cp>The one thing that I would say that I think connects fairly to your question is that early on when I returned to the office as a U.S. attorney, I identified 25 people in my office and put each one of them in charge of one particular aspect of the myriad of different kinds of cases that we handle. And one of those 25 is an assistant U.S. attorney who I put in charge of public corruption.\u003c/p>\n\u003cp>And I said, ‘OK, what I want you to do is I want you to find the people in Chicago and in New York and in the other offices that you identify that have greater experience with public corruption cases than historically this office in San Francisco has had. Find them, talk to them, come back and tell me what it is that we should be thinking about when we do these cases. And he did that. And I think that that has been a contributor to the work that we’ve done.\u003c/p>\n\u003cp>\u003cstrong>What would you say to the people who ask, ‘Should this \u003ca href=\"https://www.kqed.org/news/11821145/months-after-sf-public-works-boss-nurus-arrest-staff-push-for-corruption-cleanup\">shake my faith\u003c/a> in my local government?’\u003c/strong>\u003c/p>\n\u003cp>I do think that a city like San Francisco is best served not just by honest leaders, but also by an active citizenry. And I do wonder about the level of engagement that I see in San Francisco.\u003c/p>\n\u003cp>Just generally speaking, with our political process, what I see is a small number of people who are highly actively engaged. And I see a larger number of people who are enjoying all the other things that San Francisco has to offer.\u003c/p>\n\u003cp>So, to the extent that looking at the cases that we have charged serves as a wake-up call for someone who is in San Francisco — maybe I should be paying more attention to this — I welcome that.\u003c/p>\n\u003cp>\u003cstrong>At this point, several people connected to the scandal have pleaded guilty and cooperated with investigators, including restaurateur Nick Bovis and Walter Wong, a permit expediter. What’s their motivation for doing so? Did they go, ‘I can’t do this anymore!’ Or was it something where, in a practical matter, fancy lawyering and whatnot, they didn’t really have much of an option in front of them?\u003c/strong>\u003c/p>\n\u003cp>I’m trying to have the conversation that you want to have and certainly can talk generally about the process by which defendants come to cooperate. That’s something that I’ve seen on both sides of the courtroom going back for four decades.\u003c/p>\n\u003cp>I think probably the easiest way to look at that is from the perspective of the client-counsel interaction and again, not talking about any particular case and certainly not intruding on any particular attorney-client privilege, but just positing sort of the hypothetical conversation. It usually goes something like this:\u003c/p>\n\u003cp>You’re confronting these charges. You’re confronting this evidence. What’s going to be your answer? And oftentimes there’s sort of a moment where the client is saying, ‘Well, you know, how come I got to answer? You’re the lawyer.’\u003c/p>\n\u003cp>But, of course, the lawyer doesn’t know the facts. The lawyer can only learn those from the client, maybe from the discovery that’s provided by the prosecutor. So eventually the conversation will move in the direction of, ‘Do we have an answer to this or don’t we?’ And if we do, then let’s get out there and provide that answer, and if we don’t, well, then let’s start planning for our day of reckoning.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>And again, looking at this from that defense perspective, looking at it from the perspective of client and counsel, you can mount a variety of non-factual defenses. If a defendant’s profound constitutional rights have been violated, you may have defenses to the charges even if the charges are true. So there’s a lot of different directions from the defense perspective that you can go. One of the things you can do is, you can cooperate.\u003c/p>\n\u003cp>And each client has to decide, is this the right move for me? And clients will do that for a variety of reasons. They’ll do it because they want to mitigate exposure. They’ll do it because they feel remorse. They want to try and make things better.\u003c/p>\n\u003cp>It does happen that you have cooperators that come to you, they come to you either in public or they come to you in secret. And then those cooperators can become an important part of taking the next step or the next half step in an investigation.\u003c/p>\n\u003cp>\u003cstrong>You touched on this a bit \u003ca href=\"https://www.kqed.org/forum/2010101882168/u-s-attorney-david-anderson-leaves-office\">on KQED’s Forum\u003c/a>, but I’m interested in the rationale. Is there a possibility your successor might decide to shift resources and say, ‘I want fewer eyes on this case and more eyes on another case?’ \u003c/strong>\u003c/p>\n\u003cp>The names I’ve heard in the public sphere of candidates to take over the U.S. attorney’s job are experienced, capable. All of them are alums of the U.S. attorney’s office. I’m thinking about this now. All of them are people with whom I’ve served previously. And so this is a strong field of candidates.\u003c/p>\n\u003cp>In some hypothetical sense, could a new U.S. attorney redirect resources? Yeah.\u003c/p>\n\u003cp>Is anybody among this field of candidates going to turn away from a promising investigation? It’s hard to believe.\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cstrong>In looking back at this major corruption case that has shaken the city, how do you feel about what you and your officers were able to accomplish? \u003c/strong>\u003c/p>\n\u003cp>In a sense, the business of a prosecutor is always unfinished. There’s never a point where you wake up and you’re like, ‘Oh, good news, no crime today!’ So every day you drive your docket is a day that you’re pushing back on the evils of our community.\u003c/p>\n\u003cp>And so whether I served for two weeks or two years or two decades, that idea of unfinished business would still be true.\u003c/p>\n\u003cp>\u003cstrong>So what will you do now? Is this a John Elway, ‘I’m going to Disneyland,’ moment for you?’\u003c/strong>\u003c/p>\n\u003cp>I’ll take some time and then head back to private practice. I’ve done basically three things in my professional life: I’ve clerked, I’ve prosecuted and I’ve defended. So I’ll head back to private practice — I’ve enjoyed that as well.\u003c/p>\n\u003cp>It has been interesting to take part in the public life of San Francisco as I’ve been able to do as U.S. attorney, and I would say that I’m describing that as an interesting experience, sort of in the same way that my dad might say, ‘This was an interesting new dish that we got for dinner tonight.’ It’s pluses and minuses.\u003c/p>\n\u003cp>Being U.S. attorney is a great job. You are not tethered in your work to the demands of your clients. Instead, you’re given a broad mandate directly from the president, from the Senate, from the attorney general, to effectuate justice as effectively as you possibly can in your district. You’re given incredible talent to act upon that in the sense of 135 [assistant attorneys], hundreds of staff, and then the partnership of all of the law enforcement agencies with which we team. So it’s an amazing position in all those ways. And then also, you know, you get an opportunity like I’m talking to you, to speak in a public way. So all those things are fabulous.\u003c/p>\n\u003cp>But at the same time, in private practice, you’re just obsessing over your clients, over their problems. And then that can be pretty great, too.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cp>San Francisco Mayor London Breed on Thursday nominated Carmen Chu to serve as the new city administrator, replacing Naomi Kelly who resigned earlier this week amid an unfolding corruption scandal.\u003c/p>\n\u003cp>Chu, who is now the city’s tax assessor and recorder, still needs to be confirmed by the Board of Supervisors.\u003c/p>\n\u003cp>Kelly, the former administrator, resigned after her husband, former San Francisco Public Utilities Commission General Manager Harlan Kelly, was charged by the U.S. attorney’s office in November with wire service fraud, in connection with \u003ca href=\"https://www.kqed.org/news/11826653/bad-policies-and-practices-report-highlights-weak-sf-laws-that-enable-public-corruption\">a probe\u003c/a> that has brought down several high-ranking city officials.\u003c/p>\n\u003cp>The city administrator post is San Francisco’s highest-ranking, non-elected office, overseeing more than 20 departments and a $700 million annual budget.\u003c/p>\n\u003cp>[aside label=\"related coverage\" tag=\"san-francisco-corruption\"]Chu is no stranger to taking the reins of a new position amid scandal. In 2007, she was appointed to the city’s Board of Supervisors by then-Mayor Gavin Newsom \u003ca href=\"https://www.sfgate.com/news/article/Mayor-suspends-Ed-Jew-from-board-opening-doors-2538624.php\">after former District 4 Supervisor Ed Jew was accused of extortion\u003c/a> in a wholly separate scandal.\u003c/p>\n\u003cp>Responding to KQED in a Thursday morning press conference, Chu said she would work to ensure that the departments she oversees are clear of corruption.\u003c/p>\n\u003cp>“One of the things that all of us will be doing is looking very, very closely to make sure that we have the systems in place to ensure that there’s transparency in how we’re delivering our public service and how it is that we run our organization,” Chu said. “It’s a fundamental piece of the picture that we have public trust and that we can tap into.”\u003c/p>\n\u003cp>Breed lauded Chu’s leadership as “valuable,” citing her record of reversing a backlog of cases in the assessor’s office that boosted the city’s available budget.\u003c/p>\n\u003cp>Following the death of Mayor Ed Lee in 2017, some of San Francisco’s Asian American groups have lamented the lack of leaders from their community represented in San Francisco government. Malcolm Yeung, executive director of the Chinatown Community Development Center, and an airport commissioner, lauded Chu’s nomination as a step in the right direction for Asian American representation in the city.\u003c/p>\n\u003cp>“This announcement surprises me, but in a very good way,” Yeung said. “I deeply appreciate the ongoing commitment to diversity, equity and inclusion in how the mayor is picking our city leaders.”\u003c/p>\n\u003cp>https://twitter.com/lihanlihan/status/1349802621683437568\u003c/p>\n\u003cp>Kelly, who resigned Tuesday, is the latest city official to step down after being implicated — though not charged — in the wide-ranging corruption scandal that has already ensnared her husband, as well as former Public Works Director Mohammed Nuru and former Department of Building Inspection Director Tom Hui.\u003c/p>\n\u003cp>When asked by KQED if she had pushed Kelly to resign, Breed declined to answer.\u003c/p>\n\u003cp>“Well, many of you know better than to ask about personnel issues,” she said. “The fact is we cannot discuss them.”\u003c/p>\n\u003cp>[ad fullwidth]Notably, several of the officials charged in the scandal have been the mayor’s long-time \u003ca href=\"https://www.kqed.org/news/11849988/nuru-scandal-former-mayor-willie-brown-reflects-on-long-time-allies-charged-by-fbi\">allies and friends\u003c/a>, including both Naomi and Harlan Kelly, and Nuru, who she was once romantically involved with.\u003c/p>\n\u003cp>And while personnel matters are sometimes legally touchy areas for discussion by city mayors, Lee \u003ca href=\"https://www.npr.org/sections/thetwo-way/2016/05/20/478797789/san-francisco-police-chief-greg-suhrs-resigns-at-mayor-ed-lees-request\">did publicly ask for the resignation\u003c/a> of former San Francisco Police Chief Greg Suhr following the shooting deaths of Black and brown suspects by police and the public outcry that followed.\u003c/p>\n\u003cp>Breed’s office would not elaborate on why Kelly’s resignation warranted less transparency.\u003c/p>\n\u003cp>\u003c/p>\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>San Francisco Mayor London Breed on Thursday nominated Carmen Chu to serve as the new city administrator, replacing Naomi Kelly who resigned earlier this week amid an unfolding corruption scandal.\u003c/p>\n\u003cp>Chu, who is now the city’s tax assessor and recorder, still needs to be confirmed by the Board of Supervisors.\u003c/p>\n\u003cp>Kelly, the former administrator, resigned after her husband, former San Francisco Public Utilities Commission General Manager Harlan Kelly, was charged by the U.S. attorney’s office in November with wire service fraud, in connection with \u003ca href=\"https://www.kqed.org/news/11826653/bad-policies-and-practices-report-highlights-weak-sf-laws-that-enable-public-corruption\">a probe\u003c/a> that has brought down several high-ranking city officials.\u003c/p>\n\u003cp>The city administrator post is San Francisco’s highest-ranking, non-elected office, overseeing more than 20 departments and a $700 million annual budget.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>Chu is no stranger to taking the reins of a new position amid scandal. In 2007, she was appointed to the city’s Board of Supervisors by then-Mayor Gavin Newsom \u003ca href=\"https://www.sfgate.com/news/article/Mayor-suspends-Ed-Jew-from-board-opening-doors-2538624.php\">after former District 4 Supervisor Ed Jew was accused of extortion\u003c/a> in a wholly separate scandal.\u003c/p>\n\u003cp>Responding to KQED in a Thursday morning press conference, Chu said she would work to ensure that the departments she oversees are clear of corruption.\u003c/p>\n\u003cp>“One of the things that all of us will be doing is looking very, very closely to make sure that we have the systems in place to ensure that there’s transparency in how we’re delivering our public service and how it is that we run our organization,” Chu said. “It’s a fundamental piece of the picture that we have public trust and that we can tap into.”\u003c/p>\n\u003cp>Breed lauded Chu’s leadership as “valuable,” citing her record of reversing a backlog of cases in the assessor’s office that boosted the city’s available budget.\u003c/p>\n\u003cp>Following the death of Mayor Ed Lee in 2017, some of San Francisco’s Asian American groups have lamented the lack of leaders from their community represented in San Francisco government. Malcolm Yeung, executive director of the Chinatown Community Development Center, and an airport commissioner, lauded Chu’s nomination as a step in the right direction for Asian American representation in the city.\u003c/p>\n\u003cp>“This announcement surprises me, but in a very good way,” Yeung said. “I deeply appreciate the ongoing commitment to diversity, equity and inclusion in how the mayor is picking our city leaders.”\u003c/p>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\n\u003cp>Kelly, who resigned Tuesday, is the latest city official to step down after being implicated — though not charged — in the wide-ranging corruption scandal that has already ensnared her husband, as well as former Public Works Director Mohammed Nuru and former Department of Building Inspection Director Tom Hui.\u003c/p>\n\u003cp>When asked by KQED if she had pushed Kelly to resign, Breed declined to answer.\u003c/p>\n\u003cp>“Well, many of you know better than to ask about personnel issues,” she said. “The fact is we cannot discuss them.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>Notably, several of the officials charged in the scandal have been the mayor’s long-time \u003ca href=\"https://www.kqed.org/news/11849988/nuru-scandal-former-mayor-willie-brown-reflects-on-long-time-allies-charged-by-fbi\">allies and friends\u003c/a>, including both Naomi and Harlan Kelly, and Nuru, who she was once romantically involved with.\u003c/p>\n\u003cp>And while personnel matters are sometimes legally touchy areas for discussion by city mayors, Lee \u003ca href=\"https://www.npr.org/sections/thetwo-way/2016/05/20/478797789/san-francisco-police-chief-greg-suhrs-resigns-at-mayor-ed-lees-request\">did publicly ask for the resignation\u003c/a> of former San Francisco Police Chief Greg Suhr following the shooting deaths of Black and brown suspects by police and the public outcry that followed.\u003c/p>\n\u003cp>Breed’s office would not elaborate on why Kelly’s resignation warranted less transparency.\u003c/p>\n\u003cp>\u003c/p>\n\u003c/div>\u003c/p>",
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"disqusTitle": "Nuru Scandal: Former Mayor Willie Brown Reflects on Long-Time Allies Charged by FBI",
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"content": "\u003cp>The news hit last week — the U.S. attorney's office charged yet another San Francisco official in connection to a bribery scheme. Yes, again.\u003c/p>\n\u003cp>The corruption probe in San Francisco, it seems, is ever-expanding.\u003c/p>\n\u003cp>\u003ca href=\"https://www.kqed.org/news/11849113/u-s-attorney-charges-san-francisco-department-head-with-fraud-in-connection-to-bribery-scheme\">Harlan Kelly resigned\u003c/a> as the San Francisco Public Utility Commission's general manager just last week after denying charges made by the FBI and U.S. attorney's office. He is the third San Francisco department head to resign or otherwise lose his office in the wake of this corruption scandal: First was former Public Works Director Mohammed Nuru, in late January, who was charged in connection with a bribery scheme, and then the Department of Building Inspection's former director, Tom Hui, \u003ca href=\"https://www.kqed.org/news/11826653/bad-policies-and-practices-report-highlights-weak-sf-laws-that-enable-public-corruption\">who resigned after it was revealed\u003c/a> he breached ethics laws by dining with billionaire developers seeking to curry his favor in a project's approval.\u003c/p>\n\u003cp>Harlan Kelly's wife, City Administrator Naomi Kelly, is also implicated in this affair, having taken trips to China and allegedly taking cash to community figure Rose Pak, according to the FBI. Naomi Kelly is now on a leave of absence.\u003c/p>\n\u003cp>The scandal has even ensnared Mayor London Breed, at least tangentially, after she \u003ca href=\"https://www.kqed.org/news/11801734/sf-mayor-breed-reveals-she-once-dated-mohammed-nuru-received-gift-from-him\">publicly admitted \u003c/a>she had accepted $5,600 in car repairs from Nuru in 2019, a gift she did not initially report despite a legal requirement to do so.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>All of these figures saw their careers in city service begin under Mayor Willie Brown. He appointed Harlan Kelly city engineer in 1996, Naomi Kelly was executive \u003ca href=\"https://onesanfrancisco.org/team/naomi-kelly\">director of the Taxicab Commission under Brown\u003c/a> and Nuru \u003ca href=\"https://www.sfgate.com/politics/article/Cleanup-wizard-in-a-messy-scandal-DPW-aide-has-2795062.php\">was first brought into City Hall by Brown in various roles. \u003c/a>Even Breed served at the Treasure Island Development Authority after working on Brown's mayoral campaign.\u003c/p>\n\u003cp>Brown, now a San Francisco Chronicle columnist, is funding Nuru's defense, according to \u003ca href=\"https://nobhillgazette.com/the-interview-willie-brown-uncensored/\">an interview he gave to the Nob Hill Gazette\u003c/a>. He spoke with KQED the day allegations against Harlan Kelly were released to reflect on the ever-expanding scandal around his many former staffers.\u003cbr>\n\u003cem>\u003cbr>\nThis interview has been edited for space and clarity.\u003c/em>\u003c/p>\n\u003cp>\u003cstrong>Joe Fitzgerald Rodriguez: You've known these people — Nuru, Harlan, and Naomi, in particular — for years. Are these allegations a surprise to you? Are the reactions from the public a surprise to you?\u003c/strong>\u003c/p>\n\u003cp>\u003cstrong>Willie Brown: \u003c/strong>I don't understand what the object (of people's ire) happens to be, frankly, because the kind of thing they're talking about, and the kind of thing they're doing, doesn't seem to have a whole lot of implications for the operation of city government.\u003c/p>\n\u003cp>It's not like someone built a bridge and used inferior products to build the bridge, and therefore risked the lives of lots of people. Or built a rail line and built equipment that risked the lives of people.\u003c/p>\n\u003cp>It sounds like these people have been entertained and have been more tolerant of those entertaining them.\u003c/p>\n\u003cp>\u003cstrong>Well isn't this something where people are angry that people may have been given an upper hand in winning contracts after wining and dining public officials?\u003c/strong>\u003c/p>\n\u003cp>Under the law, it says the lowest eligible qualified bidder is what we (approve), and I think we potentially get the worst (contractors) and ignore the best.\u003c/p>\n\u003cp>I have always thought the quality of the structure should be what determines it, not the price (of the bid).\u003c/p>\n\u003cp>\u003cstrong>How this affects the public is one thing, but how have you reacted to these allegations personally? \u003c/strong>\u003c/p>\n\u003cp>It affects people personally because it's always sad when any friend or relative has a serious illness or problem of any sort, and that includes a serious problem with law enforcement people. Yes, you're always concerned.\u003c/p>\n\u003cp>I'm always sorry to see that any of my friends, my supporters, become the object of any actions that would disrupt their career paths, period.\u003c/p>\n\u003cp>And I would hope that it would never happen to any of them.\u003c/p>\n\u003cp>\u003cstrong>These aren't just your friends, though, right? People have described Nuru and the Kellys as your proteges. Didn't they learn from you? Did you not have a mentor/mentee relationship with these public officials, and take them under your wing, so to speak?\u003c/strong>\u003c/p>\n\u003cp>The news organization writes down that everyone is a protege of mine, period. They never say they're a protege of everyone else that might exist.\u003c/p>\n\u003cp>I must have the most awesome influence of anyone alive. The story doesn't work unless they're a \"protege of Willie Brown.\"\u003c/p>\n\u003cp>Are they someone who supported my candidacy for mayor? Yes.\u003c/p>\n\u003cp>Did they in many cases have some promotions? Yes.\u003c/p>\n\u003cp>Did they earn them? Yes.\u003c/p>\n\u003cp>I don't think anyone goes under anybody's \"wing.\" I think people observe how you operate. They will ask you questions or learn from you.\u003c/p>\n\u003cp>But unless you learn from them every day, or talk to them like I'm talking to you — is that a protege?\u003c/p>\n\u003cp>I don't recall ever doing anything except trying to convince people to do good work in public service, at all levels.\u003c/p>\n\u003cp>If that translates to people being proteges, then I accept it.\u003c/p>\n\u003cp>\u003cstrong>You've seen city and state government from almost every angle. How rampant are schemes like the ones the FBI and U.S. Attorney's Office have alleged here?\u003c/strong>\u003c/p>\n\u003cp>There are very few people I know who would seek that kind of help, that might create that kind of problem for them on the integrity side.\u003c/p>\n\u003cp>All the people I've dealt with in 40 or more years, and when I served as speaker of the Assembly, I had 79 members of the Legislature, and all of them spent six or more years in the halls of the Legislature. They would develop friendships and et cetera. They'd develop informational sources. They voted for bills or against bills.\u003c/p>\n\u003cp>The counsel has always been: \"Make sure the result is in the best interest of the public.\"\u003c/p>\n\u003cp>\u003cstrong>I'm trying to understand what you said earlier, that this scandal has had no impact on services rendered by city government. That structures weren't necessarily falling apart. Do you mean to say, as long as the city doesn't collapse on itself, and services are delivered, the occasional bout of alleged graft is OK?\u003c/strong>\u003c/p>\n\u003cp>I don't think people even think that way, frankly. If people viewed it as something that would embarrass them, people wouldn't do it.\u003c/p>\n\u003cp>There are people who are thieves. And there are people who seek money benefits.\u003c/p>\n\u003cp>But people do not think, I don't think, in terms of someone buying you a drink, or buying you dinner, or anything of that nature, that there's anything that caused them to influence or give up their responsibility to public service for the benefit of the public.\u003c/p>\n\u003cp>\u003cstrong>If this isn't a failure of government, then, how should the public look at these accusations?\u003c/strong>\u003c/p>\n\u003cp>I think transparency is really important. I think they should know everything. And be entitled to have one explain everything if this calls to a person's attention their belief is that they've done something inconsistent with the best interest (of the people).\u003c/p>\n\u003cp>People should be able to prove they know what the relationships were, that everything done was in the best interest, the highest quality of the public service, and let the world know that you did that — let that be the judge of your conduct.\u003c/p>\n\u003cp>\u003cstrong>You're one of the few folks who would have real insight into how Mayor London Breed's administration must be reacting to this unfolding scandal. That's three department heads stepping down in a single year related to corruption allegations. What's going on in the mayor's office right now, would you say?\u003c/strong>\u003c/p>\n\u003cp>When I served as mayor of San Francisco, every time any department ran afoul in any fashion, on the conduct side, it was always attributed in some fashion to my inability to spot that person as a potential problem, and therefore it was my responsibility.\u003c/p>\n\u003cp>As mayor, you have the responsibility for all things, ultimately. You don't have the blame, but you do have to exercise good judgment.\u003c/p>\n\u003cp>Just as I thought (former mayors) Ed Lee did, and Art Agnos did, and Frank Jordan did, even though I defeated Frank Jordan.\u003c/p>\n\u003cp>\u003cstrong>It was so many department heads, though. Does that mean there might be a broader problem? \u003c/strong>\u003c/p>\n\u003cp>Please don't draw any conclusion based on raw numbers. Jesus. You do that and you really impose on the head person an enormous burden.\u003c/p>\n\u003cp>For instance, (during my administration) the (district attorney) \u003ca href=\"https://www.newyorker.com/magazine/2003/07/14/after-fajitagate\">indicted my whole command structure\u003c/a> of the police department. He indicted everybody, period.\u003c/p>\n\u003cp>I had to literally tolerate that. Ultimately, the courts ruled he never should have done that, and the courts gave them all back their lives for career purposes, without them having to ever answer that they were indicted. They all walked into my office and placed down their guns and badges. Except for the chief, he came in by himself.\u003c/p>\n\u003cp>\u003cstrong>So what does that say about what Mayor London Breed is going through?\u003c/strong>\u003c/p>\n\u003cp>I have no idea, I'm not that connected to the current mayor's operation, I can tell you about \u003cem>my\u003c/em> operation.\u003c/p>\n\u003cp>I don't think I could speculate, frankly, how my operation would be. But I know any time a department head was confronted, or a member of law enforcement, we moved as quickly as we could to protect the public interest, period.\u003c/p>\n\u003cp>\u003cstrong>I think the big question here, given the wide reach of the scandal, for people who live and work in the city, is probably pretty simple — should people still have confidence in San Francisco government?\u003c/strong>\u003c/p>\n\u003cp>I think people should never lose confidence in government, period. I don't think government rises or falls based on the conduct of a few. Trump proves that today.\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n\u003cp>\u003cem>Dec. 8: This story has been updated to clarify that Mayor London Breed did not report she had accepted $5,600 in car repairs from Mohammed Nuru in 2019, \"initially.\" She has since reported it. \u003c/em>\u003c/p>\n\n",
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"excerpt": "As the Nuru scandal continues to sweep through San Francisco, KQED spoke to former Mayor Willie Brown on his reaction to the allegations. ",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>The news hit last week — the U.S. attorney's office charged yet another San Francisco official in connection to a bribery scheme. Yes, again.\u003c/p>\n\u003cp>The corruption probe in San Francisco, it seems, is ever-expanding.\u003c/p>\n\u003cp>\u003ca href=\"https://www.kqed.org/news/11849113/u-s-attorney-charges-san-francisco-department-head-with-fraud-in-connection-to-bribery-scheme\">Harlan Kelly resigned\u003c/a> as the San Francisco Public Utility Commission's general manager just last week after denying charges made by the FBI and U.S. attorney's office. He is the third San Francisco department head to resign or otherwise lose his office in the wake of this corruption scandal: First was former Public Works Director Mohammed Nuru, in late January, who was charged in connection with a bribery scheme, and then the Department of Building Inspection's former director, Tom Hui, \u003ca href=\"https://www.kqed.org/news/11826653/bad-policies-and-practices-report-highlights-weak-sf-laws-that-enable-public-corruption\">who resigned after it was revealed\u003c/a> he breached ethics laws by dining with billionaire developers seeking to curry his favor in a project's approval.\u003c/p>\n\u003cp>Harlan Kelly's wife, City Administrator Naomi Kelly, is also implicated in this affair, having taken trips to China and allegedly taking cash to community figure Rose Pak, according to the FBI. Naomi Kelly is now on a leave of absence.\u003c/p>\n\u003cp>The scandal has even ensnared Mayor London Breed, at least tangentially, after she \u003ca href=\"https://www.kqed.org/news/11801734/sf-mayor-breed-reveals-she-once-dated-mohammed-nuru-received-gift-from-him\">publicly admitted \u003c/a>she had accepted $5,600 in car repairs from Nuru in 2019, a gift she did not initially report despite a legal requirement to do so.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>All of these figures saw their careers in city service begin under Mayor Willie Brown. He appointed Harlan Kelly city engineer in 1996, Naomi Kelly was executive \u003ca href=\"https://onesanfrancisco.org/team/naomi-kelly\">director of the Taxicab Commission under Brown\u003c/a> and Nuru \u003ca href=\"https://www.sfgate.com/politics/article/Cleanup-wizard-in-a-messy-scandal-DPW-aide-has-2795062.php\">was first brought into City Hall by Brown in various roles. \u003c/a>Even Breed served at the Treasure Island Development Authority after working on Brown's mayoral campaign.\u003c/p>\n\u003cp>Brown, now a San Francisco Chronicle columnist, is funding Nuru's defense, according to \u003ca href=\"https://nobhillgazette.com/the-interview-willie-brown-uncensored/\">an interview he gave to the Nob Hill Gazette\u003c/a>. He spoke with KQED the day allegations against Harlan Kelly were released to reflect on the ever-expanding scandal around his many former staffers.\u003cbr>\n\u003cem>\u003cbr>\nThis interview has been edited for space and clarity.\u003c/em>\u003c/p>\n\u003cp>\u003cstrong>Joe Fitzgerald Rodriguez: You've known these people — Nuru, Harlan, and Naomi, in particular — for years. Are these allegations a surprise to you? Are the reactions from the public a surprise to you?\u003c/strong>\u003c/p>\n\u003cp>\u003cstrong>Willie Brown: \u003c/strong>I don't understand what the object (of people's ire) happens to be, frankly, because the kind of thing they're talking about, and the kind of thing they're doing, doesn't seem to have a whole lot of implications for the operation of city government.\u003c/p>\n\u003cp>It's not like someone built a bridge and used inferior products to build the bridge, and therefore risked the lives of lots of people. Or built a rail line and built equipment that risked the lives of people.\u003c/p>\n\u003cp>It sounds like these people have been entertained and have been more tolerant of those entertaining them.\u003c/p>\n\u003cp>\u003cstrong>Well isn't this something where people are angry that people may have been given an upper hand in winning contracts after wining and dining public officials?\u003c/strong>\u003c/p>\n\u003cp>Under the law, it says the lowest eligible qualified bidder is what we (approve), and I think we potentially get the worst (contractors) and ignore the best.\u003c/p>\n\u003cp>I have always thought the quality of the structure should be what determines it, not the price (of the bid).\u003c/p>\n\u003cp>\u003cstrong>How this affects the public is one thing, but how have you reacted to these allegations personally? \u003c/strong>\u003c/p>\n\u003cp>It affects people personally because it's always sad when any friend or relative has a serious illness or problem of any sort, and that includes a serious problem with law enforcement people. Yes, you're always concerned.\u003c/p>\n\u003cp>I'm always sorry to see that any of my friends, my supporters, become the object of any actions that would disrupt their career paths, period.\u003c/p>\n\u003cp>And I would hope that it would never happen to any of them.\u003c/p>\n\u003cp>\u003cstrong>These aren't just your friends, though, right? People have described Nuru and the Kellys as your proteges. Didn't they learn from you? Did you not have a mentor/mentee relationship with these public officials, and take them under your wing, so to speak?\u003c/strong>\u003c/p>\n\u003cp>The news organization writes down that everyone is a protege of mine, period. They never say they're a protege of everyone else that might exist.\u003c/p>\n\u003cp>I must have the most awesome influence of anyone alive. The story doesn't work unless they're a \"protege of Willie Brown.\"\u003c/p>\n\u003cp>Are they someone who supported my candidacy for mayor? Yes.\u003c/p>\n\u003cp>Did they in many cases have some promotions? Yes.\u003c/p>\n\u003cp>Did they earn them? Yes.\u003c/p>\n\u003cp>I don't think anyone goes under anybody's \"wing.\" I think people observe how you operate. They will ask you questions or learn from you.\u003c/p>\n\u003cp>But unless you learn from them every day, or talk to them like I'm talking to you — is that a protege?\u003c/p>\n\u003cp>I don't recall ever doing anything except trying to convince people to do good work in public service, at all levels.\u003c/p>\n\u003cp>If that translates to people being proteges, then I accept it.\u003c/p>\n\u003cp>\u003cstrong>You've seen city and state government from almost every angle. How rampant are schemes like the ones the FBI and U.S. Attorney's Office have alleged here?\u003c/strong>\u003c/p>\n\u003cp>There are very few people I know who would seek that kind of help, that might create that kind of problem for them on the integrity side.\u003c/p>\n\u003cp>All the people I've dealt with in 40 or more years, and when I served as speaker of the Assembly, I had 79 members of the Legislature, and all of them spent six or more years in the halls of the Legislature. They would develop friendships and et cetera. They'd develop informational sources. They voted for bills or against bills.\u003c/p>\n\u003cp>The counsel has always been: \"Make sure the result is in the best interest of the public.\"\u003c/p>\n\u003cp>\u003cstrong>I'm trying to understand what you said earlier, that this scandal has had no impact on services rendered by city government. That structures weren't necessarily falling apart. Do you mean to say, as long as the city doesn't collapse on itself, and services are delivered, the occasional bout of alleged graft is OK?\u003c/strong>\u003c/p>\n\u003cp>I don't think people even think that way, frankly. If people viewed it as something that would embarrass them, people wouldn't do it.\u003c/p>\n\u003cp>There are people who are thieves. And there are people who seek money benefits.\u003c/p>\n\u003cp>But people do not think, I don't think, in terms of someone buying you a drink, or buying you dinner, or anything of that nature, that there's anything that caused them to influence or give up their responsibility to public service for the benefit of the public.\u003c/p>\n\u003cp>\u003cstrong>If this isn't a failure of government, then, how should the public look at these accusations?\u003c/strong>\u003c/p>\n\u003cp>I think transparency is really important. I think they should know everything. And be entitled to have one explain everything if this calls to a person's attention their belief is that they've done something inconsistent with the best interest (of the people).\u003c/p>\n\u003cp>People should be able to prove they know what the relationships were, that everything done was in the best interest, the highest quality of the public service, and let the world know that you did that — let that be the judge of your conduct.\u003c/p>\n\u003cp>\u003cstrong>You're one of the few folks who would have real insight into how Mayor London Breed's administration must be reacting to this unfolding scandal. That's three department heads stepping down in a single year related to corruption allegations. What's going on in the mayor's office right now, would you say?\u003c/strong>\u003c/p>\n\u003cp>When I served as mayor of San Francisco, every time any department ran afoul in any fashion, on the conduct side, it was always attributed in some fashion to my inability to spot that person as a potential problem, and therefore it was my responsibility.\u003c/p>\n\u003cp>As mayor, you have the responsibility for all things, ultimately. You don't have the blame, but you do have to exercise good judgment.\u003c/p>\n\u003cp>Just as I thought (former mayors) Ed Lee did, and Art Agnos did, and Frank Jordan did, even though I defeated Frank Jordan.\u003c/p>\n\u003cp>\u003cstrong>It was so many department heads, though. Does that mean there might be a broader problem? \u003c/strong>\u003c/p>\n\u003cp>Please don't draw any conclusion based on raw numbers. Jesus. You do that and you really impose on the head person an enormous burden.\u003c/p>\n\u003cp>For instance, (during my administration) the (district attorney) \u003ca href=\"https://www.newyorker.com/magazine/2003/07/14/after-fajitagate\">indicted my whole command structure\u003c/a> of the police department. He indicted everybody, period.\u003c/p>\n\u003cp>I had to literally tolerate that. Ultimately, the courts ruled he never should have done that, and the courts gave them all back their lives for career purposes, without them having to ever answer that they were indicted. They all walked into my office and placed down their guns and badges. Except for the chief, he came in by himself.\u003c/p>\n\u003cp>\u003cstrong>So what does that say about what Mayor London Breed is going through?\u003c/strong>\u003c/p>\n\u003cp>I have no idea, I'm not that connected to the current mayor's operation, I can tell you about \u003cem>my\u003c/em> operation.\u003c/p>\n\u003cp>I don't think I could speculate, frankly, how my operation would be. But I know any time a department head was confronted, or a member of law enforcement, we moved as quickly as we could to protect the public interest, period.\u003c/p>\n\u003cp>\u003cstrong>I think the big question here, given the wide reach of the scandal, for people who live and work in the city, is probably pretty simple — should people still have confidence in San Francisco government?\u003c/strong>\u003c/p>\n\u003cp>I think people should never lose confidence in government, period. I don't think government rises or falls based on the conduct of a few. Trump proves that today.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>\u003cem>Dec. 8: This story has been updated to clarify that Mayor London Breed did not report she had accepted $5,600 in car repairs from Mohammed Nuru in 2019, \"initially.\" She has since reported it. \u003c/em>\u003c/p>\n\n\u003c/div>\u003c/p>",
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"disqusTitle": "Corrupt SF Official Used Nonprofits to Funnel 'Pay to Play' Cash",
"title": "Corrupt SF Official Used Nonprofits to Funnel 'Pay to Play' Cash",
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"content": "\u003cp>It often pays to have friends in high places. In San Francisco, that goes double for nonprofits that call themselves \"friends.\"\u003c/p>\n\u003cp>A new \u003ca href=\"https://sfcontroller.org/sites/default/files/Documents/Auditing/Public%20Integrity%20Review%20-%20Non-City%20Organizations%2009.24.20.pdf\">report\u003c/a> from the San Francisco City Controller's Office, in conjunction with the City Attorney's Office, skewers a system where city departments — like Public Works — form relationships with nonprofit organizations that raise philanthropic dollars for issues related to that department, saying it's rife with opportunity for corruption.\u003c/p>\n\u003cp>Often these organizations are called \"friends\" organizations, like Friends of the Library, or Friends of City Planning. All told, the report found that 33 out of 56 San Francisco city departments benefit from these kinds of nonprofit organizations, which between them have 588 accounts spent on city activities.\u003c/p>\n\u003cp>[pullquote size=\"medium\" align=\"right\" citation=\"Dennis Herrera, San Francisco city attorney\"]'This report makes it clear that pay-to-play has been happening in our city.'[/pullquote]\u003c/p>\n\u003cp>Those nonprofits have looser transparency requirements, creating a \"pay-to-play\" environment where city department heads could potentially ask city contractors they oversee to donate to the nonprofit, creating a risk that department head would be influenced by that spending when deciding to award multi-million-dollar city contracts.\u003c/p>\n\u003cp>The nonprofit could then disburse those funds to be used for city staff appreciation parties in ways that would have otherwise violated city law — if done transparently — or on pet projects of that department head.\u003c/p>\n\u003cp>That may have already happened.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>The Controller's Office found at least one of these organizations, the San Francisco Parks Alliance, took roughly $1 million in donations from a number of city contractors which were under investigation by the City Attorney's Office for funneling money to the Public Works department for lavish parties, at the behest of former Public Works Director \u003ca href=\"https://www.kqed.org/news/tag/mohammed-nuru/\">Mohammed Nuru\u003c/a>, who was arrested by the FBI in January on corruption charges.\u003c/p>\n\u003cp>Those city contractors include the SF Clean City Coalition, Recology, PG&E, Clark Construction, Webcor Construction and Pankow Construction. They collectively donated $966,000 to the Parks Alliance into a Public Works-specific account — funds Nuru was able to freely direct, and sometimes himself was paid from — according to the report. Those same contractors were awarded more than $570 million in city contracts by the Public Works Department, according to the report.\u003c/p>\n\u003cp>City Attorney Dennis Herrera \u003ca href=\"https://www.sfcityattorney.org/2020/02/12/city-attorney-subpoenas-8-organizations-in-widening-public-corruption-investigation/\">issued subpoenas\u003c/a> investigating those same city contractors in February, in connection with the ongoing corruption scandal that first ensnared Nuru, but has only grown in the following months.\u003c/p>\n\u003cp>Nuru and others would direct staff to pay for goods and services for staff appreciation, volunteer programs, merchandise, community support and events from specific vendors, \"circumventing city purchasing controls,\" the report found. These purchases would then be reimbursed through Public Works accounts held by the Parks Alliance \"outside of city purchasing rules.\" Nuru would solicit those funds from contractors whose city contracts Nuru oversaw.\u003c/p>\n\u003cp>“This report makes it clear that pay-to-play has been happening in our city. We are putting a stop to it,” City Attorney Dennis Herrera said, in a statement. “City officials cannot work behind the scenes with City contractors to benefit their departments and use other entities to cloak those efforts.\"\u003c/p>\n\u003cp>Drew Becher, CEO of the San Francisco Parks Alliance, expressed shock at the city's findings.\u003c/p>\n\u003cp>\"Like everyone, we were outraged to learn of the public corruption in our local government,” Becher said, in a statement. “We did not benefit in any way nor had any control over the donations that Nuru and Public Works solicited and directed to the sub-account, as the report states. We are a trusted partner to many community groups and city departments and welcome any and all actions that bring more transparency and oversight to ensure the public’s trust.”\u003c/p>\n\u003cp>Nuru was arrested by the FBI in January and accused of attempting to bribe an airport official. Just last week, two city contractors pleaded guilty to bribing Nuru with the construction of his vacation home and a $36,000 gold Rolex watch in exchange for help in obtaining city contracts.\u003c/p>\n\u003cp>[aside label='Related Coverage' tag='mohammed-nuru']At the behest of Nuru, the Parks Alliance also directed $66,000 to entities whose figureheads were also arrested by the FBI in connection with Nuru's corruption scandal, permit expediter Walter Wong and Nick Bovis, the owner of Lefty O'Doul's.\u003c/p>\n\u003cp>When they're working as they're supposed to, these \"friends of\" organizations may help put on an outdoor movie night for the public or help build park trails.\u003c/p>\n\u003cp>But they're also rife with opportunity for abuse, the report found.\u003c/p>\n\u003cp>“While philanthropic organizations provide tangible benefits to all of our residents, abuses in these relationships undermine the important role they play,\" said Controller Ben Rosenfield, in a statement. \"When gifts are solicited from those that do business with the City, it creates a risk to fair and transparent public processes. We have put forward actionable recommendations to correct loopholes that seemingly normalize unethical practices that undermine faith in public actions.”\u003c/p>\n\u003cp>Following the release of the report, Mayor London Breed announced an executive order to address the recommendations in the report.\u003c/p>\n\u003cp>City department heads will now be required to reveal when they solicit donations to nonprofits — like the \"friends of\" organizations — and for city departments to formalize their relationships with these nonprofits, which would legally require those groups to boast greater transparency.\u003c/p>\n\u003cp>Breed's order also requires more transparency from city officers in accepting gifts.\u003c/p>\n\u003cp>Supervisor Matt Haney also plans to introduce legislation next week that will go further than the mayor's order, explicitly banning department heads from asking any person or party doing business with their department for donations, among other changes.\u003c/p>\n\u003cp>Haney called Public Works actions \"inappropriate behavior\" and said the department \"is clearly out of control.\" Haney argued this also showed a clear need for his ballot measure Proposition B in San Francisco, which would create an oversight body for Public Works, and place some of its street maintenance duties with a new Department of Sanitation and Streets.\u003c/p>\n\u003cp>The city's corruption scandal investigation is ongoing. The City Controller's Office and City Attorney's Office report into city ethics \u003ca href=\"https://www.kqed.org/news/11826653/bad-policies-and-practices-report-highlights-weak-sf-laws-that-enable-public-corruption\">is the second to be released this year\u003c/a>.\u003c/p>\n\u003cp>\u003cem>This story has been updated to include a statement provided by the San Francisco Parks Alliance on Sept. 25.\u003c/em>\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>It often pays to have friends in high places. In San Francisco, that goes double for nonprofits that call themselves \"friends.\"\u003c/p>\n\u003cp>A new \u003ca href=\"https://sfcontroller.org/sites/default/files/Documents/Auditing/Public%20Integrity%20Review%20-%20Non-City%20Organizations%2009.24.20.pdf\">report\u003c/a> from the San Francisco City Controller's Office, in conjunction with the City Attorney's Office, skewers a system where city departments — like Public Works — form relationships with nonprofit organizations that raise philanthropic dollars for issues related to that department, saying it's rife with opportunity for corruption.\u003c/p>\n\u003cp>Often these organizations are called \"friends\" organizations, like Friends of the Library, or Friends of City Planning. All told, the report found that 33 out of 56 San Francisco city departments benefit from these kinds of nonprofit organizations, which between them have 588 accounts spent on city activities.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Those nonprofits have looser transparency requirements, creating a \"pay-to-play\" environment where city department heads could potentially ask city contractors they oversee to donate to the nonprofit, creating a risk that department head would be influenced by that spending when deciding to award multi-million-dollar city contracts.\u003c/p>\n\u003cp>The nonprofit could then disburse those funds to be used for city staff appreciation parties in ways that would have otherwise violated city law — if done transparently — or on pet projects of that department head.\u003c/p>\n\u003cp>That may have already happened.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>The Controller's Office found at least one of these organizations, the San Francisco Parks Alliance, took roughly $1 million in donations from a number of city contractors which were under investigation by the City Attorney's Office for funneling money to the Public Works department for lavish parties, at the behest of former Public Works Director \u003ca href=\"https://www.kqed.org/news/tag/mohammed-nuru/\">Mohammed Nuru\u003c/a>, who was arrested by the FBI in January on corruption charges.\u003c/p>\n\u003cp>Those city contractors include the SF Clean City Coalition, Recology, PG&E, Clark Construction, Webcor Construction and Pankow Construction. They collectively donated $966,000 to the Parks Alliance into a Public Works-specific account — funds Nuru was able to freely direct, and sometimes himself was paid from — according to the report. Those same contractors were awarded more than $570 million in city contracts by the Public Works Department, according to the report.\u003c/p>\n\u003cp>City Attorney Dennis Herrera \u003ca href=\"https://www.sfcityattorney.org/2020/02/12/city-attorney-subpoenas-8-organizations-in-widening-public-corruption-investigation/\">issued subpoenas\u003c/a> investigating those same city contractors in February, in connection with the ongoing corruption scandal that first ensnared Nuru, but has only grown in the following months.\u003c/p>\n\u003cp>Nuru and others would direct staff to pay for goods and services for staff appreciation, volunteer programs, merchandise, community support and events from specific vendors, \"circumventing city purchasing controls,\" the report found. These purchases would then be reimbursed through Public Works accounts held by the Parks Alliance \"outside of city purchasing rules.\" Nuru would solicit those funds from contractors whose city contracts Nuru oversaw.\u003c/p>\n\u003cp>“This report makes it clear that pay-to-play has been happening in our city. We are putting a stop to it,” City Attorney Dennis Herrera said, in a statement. “City officials cannot work behind the scenes with City contractors to benefit their departments and use other entities to cloak those efforts.\"\u003c/p>\n\u003cp>Drew Becher, CEO of the San Francisco Parks Alliance, expressed shock at the city's findings.\u003c/p>\n\u003cp>\"Like everyone, we were outraged to learn of the public corruption in our local government,” Becher said, in a statement. “We did not benefit in any way nor had any control over the donations that Nuru and Public Works solicited and directed to the sub-account, as the report states. We are a trusted partner to many community groups and city departments and welcome any and all actions that bring more transparency and oversight to ensure the public’s trust.”\u003c/p>\n\u003cp>Nuru was arrested by the FBI in January and accused of attempting to bribe an airport official. Just last week, two city contractors pleaded guilty to bribing Nuru with the construction of his vacation home and a $36,000 gold Rolex watch in exchange for help in obtaining city contracts.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>At the behest of Nuru, the Parks Alliance also directed $66,000 to entities whose figureheads were also arrested by the FBI in connection with Nuru's corruption scandal, permit expediter Walter Wong and Nick Bovis, the owner of Lefty O'Doul's.\u003c/p>\n\u003cp>When they're working as they're supposed to, these \"friends of\" organizations may help put on an outdoor movie night for the public or help build park trails.\u003c/p>\n\u003cp>But they're also rife with opportunity for abuse, the report found.\u003c/p>\n\u003cp>“While philanthropic organizations provide tangible benefits to all of our residents, abuses in these relationships undermine the important role they play,\" said Controller Ben Rosenfield, in a statement. \"When gifts are solicited from those that do business with the City, it creates a risk to fair and transparent public processes. We have put forward actionable recommendations to correct loopholes that seemingly normalize unethical practices that undermine faith in public actions.”\u003c/p>\n\u003cp>Following the release of the report, Mayor London Breed announced an executive order to address the recommendations in the report.\u003c/p>\n\u003cp>City department heads will now be required to reveal when they solicit donations to nonprofits — like the \"friends of\" organizations — and for city departments to formalize their relationships with these nonprofits, which would legally require those groups to boast greater transparency.\u003c/p>\n\u003cp>Breed's order also requires more transparency from city officers in accepting gifts.\u003c/p>\n\u003cp>Supervisor Matt Haney also plans to introduce legislation next week that will go further than the mayor's order, explicitly banning department heads from asking any person or party doing business with their department for donations, among other changes.\u003c/p>\n\u003cp>Haney called Public Works actions \"inappropriate behavior\" and said the department \"is clearly out of control.\" Haney argued this also showed a clear need for his ballot measure Proposition B in San Francisco, which would create an oversight body for Public Works, and place some of its street maintenance duties with a new Department of Sanitation and Streets.\u003c/p>\n\u003cp>The city's corruption scandal investigation is ongoing. The City Controller's Office and City Attorney's Office report into city ethics \u003ca href=\"https://www.kqed.org/news/11826653/bad-policies-and-practices-report-highlights-weak-sf-laws-that-enable-public-corruption\">is the second to be released this year\u003c/a>.\u003c/p>\n\u003cp>\u003cem>This story has been updated to include a statement provided by the San Francisco Parks Alliance on Sept. 25.\u003c/em>\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cp>Two city contractors have pleaded guilty in an ongoing San Francisco government corruption scandal.\u003c/p>\n\u003cp>Balmore Hernandez pleaded guilty to one count of conspiring to commit fraud, and Florence Kong pleaded guilty to one count of bribery and one count of making false statements for lying to the FBI, according to plea agreements filed in federal court Thursday.\u003c/p>\n\u003cp>Both contractors committed those acts in connection with former San Francisco Public Works Director Mohammed Nuru, who was arrested by the FBI in January on corruption charges.\u003c/p>\n\u003cp>Two additional contractors, Alan Varela and William Gilmartin III have also been indicted by the FBI, alleging they also conspired with Hernandez to bribe Nuru.\u003c/p>\n\u003cp>Hernandez, CEO of contracting company AzulWorks, Inc., allegedly also performed more than $250,000 worth of work, labor and materials to build a vacation home on the then-Public Works director’s ranch in Colusa County. The gifts allegedly helped secure a multimillion-dollar contract for Hernandez to operate an asphalt plant, according to the federal \u003ca href=\"https://www.justice.gov/usao-ndca/pr/san-francisco-public-official-and-contractors-charged-crimes-related-public-corruption\">charging documents released in June\u003c/a>.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>The U.S. Attorney’s Office filed the specifics of the crimes Hernandez admitted under seal. Hernandez faces a maximum sentence of 20 years and a $250,000 fine. However, should he cooperate “fully and truthfully” with the ongoing corruption investigation, U.S. attorneys may seek a lesser sentence for Hernandez, they wrote.\u003c/p>\n\u003cp>Kong bribed Nuru with a Rolex watch worth roughly $36,000 that she bought in Hong Kong, and also helped install a gate on his vacation home, according to charging documents, which also detail intercepted phone calls demonstrating Nuru helped her obtain construction contracts for city facilities.\u003c/p>\n\u003cp>[documentcloud url=\"http://www.documentcloud.org/documents/7212861-USA-v-Florence-Kong-Plea-Agreement-9-17-2020.html\" responsive=true sidebar=false]\u003c/p>\n\u003cp>Kong gave Nuru the watch “as a reward for Nuru’s influence” directing contracts from Public Works to dispose of construction debris at her recycling business, SFR Recovery, Inc., according to the plea agreement filed Thursday. Unlike Hernandez, Kong’s plea agreement includes details of the crimes she admitted.\u003c/p>\n\u003cp>The bribery charge against Kong carries a maximum 10-year sentence and a $250,000 fine. A separate charge for lying to the FBI — she told them she had no communications with Nuru about her city contract — carries a maximum sentence of five years and a $250,000 fine.\u003c/p>\n\u003cp>Kong will face a sentence of “no more than” 18 months if she takes full responsibility for her crimes, cooperates with the investigation, pays full restitution for her ill-gotten gains, and agrees to not contact or intimidate victims or witnesses in the case, according to the plea agreement.\u003c/p>\n\u003cp>The filing also raises the possibility of deportation from the United States for Kong’s crimes.\u003c/p>\n\u003cp>https://www.youtube.com/watch?v=J1EJRrM0k3g&feature=youtu.be\u003c/p>\n\u003cp>\u003cem>Above, U.S. Attorney David Anderson discusses the new charges and Thursday’s guilty pleas.\u003c/em>\u003c/p>\n\u003cp>In pleading guilty, Kong signed the following statement: “I believed Nuru to be one of the most powerful public officials in the city, and I believed that he wielded tremendous power and influence over city business, permitting and other city government approvals.”\u003c/p>\n\u003cp>Kong initially lied to the FBI, according to court filings, telling them he did not help her with contracts, did not extend any contract application deadlines on her behalf, that she never gave him money or goods, and that she and Nuru did not talk about the debris contracts.[pullquote size=\"medium\" align=\"right\" citation=\"Florence Kong, city contractor charged with bribery\"]‘I believed Nuru to be one of the most powerful public officials in the city, and I believed that he wielded tremendous power and influence over city business, permitting and other city government approvals.’[/pullquote]\u003c/p>\n\u003cp>Since Nuru was first arrested, the unfolding San Francisco corruption scandal has expanded, touching on multiple departments throughout city government, including the Department of Building Inspection and the San Francisco Public Utilities Commission.\u003c/p>\n\u003cp>“The federal investigation into City Hall corruption has not been sidetracked by Covid-19 or other recent traumatic events,” U.S. Attorney David Anderson said in a June statement announcing charges against Hernandez and Kong. “Today’s criminal complaints will not be the last. To everyone with a piece of this corruption, again I urge you to help make things right for San Francisco. Run, don’t walk to the FBI, before it is too late for you to cooperate.”\u003c/p>\n\u003cp>Nuru was arrested by the FBI in January on public fraud charges. Lefty O’Doul’s restaurant owner Nick Bovis was also arrested in January on related charges.\u003c/p>\n\u003cp>New indictments also revealed Thursday accuse Varela, founder of construction firm ProVen Management, and Gilmartin, the firm’s vice president, of working with Hernandez to obtain a contract through Public Works to operate an asphalt plant on land owned by the Port of San Francisco.\u003c/p>\n\u003cp>The contractors allegedly bribed Nuru with a tractor worth $40,000 for preferential treatment in obtaining city contracts, according to the U.S. Attorney’s Office. Mission Local \u003ca href=\"https://missionlocal.org/2020/09/tractor-mohammed-nuru-fbi-doj/\">first reported the alleged bribery\u003c/a>. Hernandez also participated in the delivery of the tractor.\u003c/p>\n\u003cp>[aside tag=\"corruption\" label=\"More corruption coverage\"]\u003c/p>\n\u003cp>Gilmartin allegedly paid for “extravagant dinners” in excess of $20,000 for Nuru and Hernandez, according to court filings. Hernandez was the “primary contact” between Valera, Gilmartin and Nuru.\u003c/p>\n\u003cp>Gilmartin even expressed appreciation to Hernandez for his efforts to make a deal with Nuru — in writing.\u003c/p>\n\u003cp>“I have used you to help negotiate this deal because of your ability to understand and present our proposal without making the other side nervous. For this you are entitled to ownership,” Gilmartin wrote in an email.\u003c/p>\n\u003cp>Hernandez told the FBI agent he’s known Nuru for 20 years, and that they talk several times a month. The scheme dates back to 2013, according to court filings.\u003c/p>\n\u003cp>Since Nuru’s arrest, a cascade of subpoenas have been filed by City Attorney Dennis Herrera and the U.S. Attorney’s Office in a widening investigation of corruption in San Francisco government.\u003c/p>\n\u003cp>The Department of Building Inspection’s former director, Tom Hui, stepped down from his position in March after it was revealed he accepted gifts from a housing developer, among other accusations.\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n\u003cp>City officials have tried to make forward-facing changes to prevent further corruption, including the City Controller’s Office, Supervisor Aaron Peskin and Supervisor Matt Haney, \u003ca href=\"https://www.kqed.org/news/11821145/months-after-sf-public-works-boss-nurus-arrest-staff-push-for-corruption-cleanup\">who are reworking city ethics laws to prevent city officials and contractors from gaming the system\u003c/a>.\u003c/p>\n\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>Two city contractors have pleaded guilty in an ongoing San Francisco government corruption scandal.\u003c/p>\n\u003cp>Balmore Hernandez pleaded guilty to one count of conspiring to commit fraud, and Florence Kong pleaded guilty to one count of bribery and one count of making false statements for lying to the FBI, according to plea agreements filed in federal court Thursday.\u003c/p>\n\u003cp>Both contractors committed those acts in connection with former San Francisco Public Works Director Mohammed Nuru, who was arrested by the FBI in January on corruption charges.\u003c/p>\n\u003cp>Two additional contractors, Alan Varela and William Gilmartin III have also been indicted by the FBI, alleging they also conspired with Hernandez to bribe Nuru.\u003c/p>\n\u003cp>Hernandez, CEO of contracting company AzulWorks, Inc., allegedly also performed more than $250,000 worth of work, labor and materials to build a vacation home on the then-Public Works director’s ranch in Colusa County. The gifts allegedly helped secure a multimillion-dollar contract for Hernandez to operate an asphalt plant, according to the federal \u003ca href=\"https://www.justice.gov/usao-ndca/pr/san-francisco-public-official-and-contractors-charged-crimes-related-public-corruption\">charging documents released in June\u003c/a>.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Kong gave Nuru the watch “as a reward for Nuru’s influence” directing contracts from Public Works to dispose of construction debris at her recycling business, SFR Recovery, Inc., according to the plea agreement filed Thursday. Unlike Hernandez, Kong’s plea agreement includes details of the crimes she admitted.\u003c/p>\n\u003cp>The bribery charge against Kong carries a maximum 10-year sentence and a $250,000 fine. A separate charge for lying to the FBI — she told them she had no communications with Nuru about her city contract — carries a maximum sentence of five years and a $250,000 fine.\u003c/p>\n\u003cp>Kong will face a sentence of “no more than” 18 months if she takes full responsibility for her crimes, cooperates with the investigation, pays full restitution for her ill-gotten gains, and agrees to not contact or intimidate victims or witnesses in the case, according to the plea agreement.\u003c/p>\n\u003cp>The filing also raises the possibility of deportation from the United States for Kong’s crimes.\u003c/p>\u003c/p>\u003cp>\u003cspan class='utils-parseShortcode-shortcodes-__youtubeShortcode__embedYoutube'>\n \u003cspan class='utils-parseShortcode-shortcodes-__youtubeShortcode__embedYoutubeInside'>\n \u003ciframe\n loading='lazy'\n class='utils-parseShortcode-shortcodes-__youtubeShortcode__youtubePlayer'\n type='text/html'\n src='//www.youtube.com/embed/J1EJRrM0k3g'\n title='//www.youtube.com/embed/J1EJRrM0k3g'\n allowfullscreen='true'\n style='border:0;'>\u003c/iframe>\n \u003c/span>\n \u003c/span>\u003c/p>\u003cp>\u003cp>\u003cem>Above, U.S. Attorney David Anderson discusses the new charges and Thursday’s guilty pleas.\u003c/em>\u003c/p>\n\u003cp>In pleading guilty, Kong signed the following statement: “I believed Nuru to be one of the most powerful public officials in the city, and I believed that he wielded tremendous power and influence over city business, permitting and other city government approvals.”\u003c/p>\n\u003cp>Kong initially lied to the FBI, according to court filings, telling them he did not help her with contracts, did not extend any contract application deadlines on her behalf, that she never gave him money or goods, and that she and Nuru did not talk about the debris contracts.\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Since Nuru was first arrested, the unfolding San Francisco corruption scandal has expanded, touching on multiple departments throughout city government, including the Department of Building Inspection and the San Francisco Public Utilities Commission.\u003c/p>\n\u003cp>“The federal investigation into City Hall corruption has not been sidetracked by Covid-19 or other recent traumatic events,” U.S. Attorney David Anderson said in a June statement announcing charges against Hernandez and Kong. “Today’s criminal complaints will not be the last. To everyone with a piece of this corruption, again I urge you to help make things right for San Francisco. Run, don’t walk to the FBI, before it is too late for you to cooperate.”\u003c/p>\n\u003cp>Nuru was arrested by the FBI in January on public fraud charges. Lefty O’Doul’s restaurant owner Nick Bovis was also arrested in January on related charges.\u003c/p>\n\u003cp>New indictments also revealed Thursday accuse Varela, founder of construction firm ProVen Management, and Gilmartin, the firm’s vice president, of working with Hernandez to obtain a contract through Public Works to operate an asphalt plant on land owned by the Port of San Francisco.\u003c/p>\n\u003cp>The contractors allegedly bribed Nuru with a tractor worth $40,000 for preferential treatment in obtaining city contracts, according to the U.S. Attorney’s Office. Mission Local \u003ca href=\"https://missionlocal.org/2020/09/tractor-mohammed-nuru-fbi-doj/\">first reported the alleged bribery\u003c/a>. Hernandez also participated in the delivery of the tractor.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Gilmartin allegedly paid for “extravagant dinners” in excess of $20,000 for Nuru and Hernandez, according to court filings. Hernandez was the “primary contact” between Valera, Gilmartin and Nuru.\u003c/p>\n\u003cp>Gilmartin even expressed appreciation to Hernandez for his efforts to make a deal with Nuru — in writing.\u003c/p>\n\u003cp>“I have used you to help negotiate this deal because of your ability to understand and present our proposal without making the other side nervous. For this you are entitled to ownership,” Gilmartin wrote in an email.\u003c/p>\n\u003cp>Hernandez told the FBI agent he’s known Nuru for 20 years, and that they talk several times a month. The scheme dates back to 2013, according to court filings.\u003c/p>\n\u003cp>Since Nuru’s arrest, a cascade of subpoenas have been filed by City Attorney Dennis Herrera and the U.S. Attorney’s Office in a widening investigation of corruption in San Francisco government.\u003c/p>\n\u003cp>The Department of Building Inspection’s former director, Tom Hui, stepped down from his position in March after it was revealed he accepted gifts from a housing developer, among other accusations.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"info": "Possible is hosted by entrepreneur Reid Hoffman and writer Aria Finger. Together in Possible, Hoffman and Finger lead enlightening discussions about building a brighter collective future. The show features interviews with visionary guests like Trevor Noah, Sam Altman and Janette Sadik-Khan. Possible paints an optimistic portrait of the world we can create through science, policy, business, art and our shared humanity. It asks: What if everything goes right for once? How can we get there? Each episode also includes a short fiction story generated by advanced AI GPT-4, serving as a thought-provoking springboard to speculate how humanity could leverage technology for good.",
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