“Freindly Fire Zone”

It was a December night, late 90’s.  My entire family was in downtown Philadelphia taking in the Christmas attractions.  One of our traditions was marveling at the magnificently decorated, larger-than-life tree in the City Hall courtyard.  But when we arrived, the gates were locked.

Viewing the tree wasn’t going to happen.

Disappointed, we started walking away when none other than the Mayor himself came bounding out of City Hall right next to us, clearly in a hurry.  But he saw us, turned around, and shot the bull for several minutes.  Upon hearing our plight, he immediately summoned a police officer from his detail and instructed him to take us up to his office, which “has the best view of the tree,” for as long as we wanted.

That tree never looked so beautiful.

And through it all, that Mayor never asked us our names or where we lived.  Whether or not we were voting constituents had absolutely no bearing on him.  He instinctively did what he thought was right, in much the same way he operated while an Assistant District Attorney, and later, the City’s DA.  He was one of the good guys.

And after his two relatively successful terms as Mayor, hopes that he would lead Pennsylvania in the right direction were not unfounded.

But after eight disastrous years as Pennsylvania’s Governor, Ed Rendell being viewed as a “good guy” is as likely as the Eagles’ winning this year’s Super Bowl: nonexistent.

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Up to this point, his legacy was known for three things: the introduction of gambling, which did not live up to the promise of tax-relief; huge tax hikes, coupled with a 40 per cent increase in state spending; and a perception of widespread pay-to-play within his Administration. Of lesser note but still sore subjects were his signing an unconstitutional legislative pay raise and not getting a single budget passed on time --- budgets that were full of smoke and mirrors, such as imaginary revenue from the failed I-80 tolling plan.

But now, the image of Rendell that is etched in people’s minds is the Governor blowing his top during one of his final interviews. 

With teeth clenched in a menacing growl, he karate-chops the air and literally screams at 60 Minutes interviewer Lesley Stahl that … “You guys don't get that. You're simpletons. You're idiots if you don't get that."   He was defending his position that gaming was good for Pennsylvania, under the rationale that if gamblers are going to lose their paychecks anyway, it’s better for state coffers if they lose them in Pennsylvania.

Truth be told, Rendell’s anger wasn’t really directed at Stahl.  An intelligent man, the Governor is all too aware that, under his watch, the state earned points in all the wrong categories: some of the highest taxes in the country; the nation’s most hostile legal system, causing doctors and companies to flee; a failing educational product; the country’s worst roads, and a decimated manufacturing base.

Pennsylvania’s biggest export is its children, and that, more than anything, has extinguished the hope for a better tomorrow under Rendell.

But if there is ever to be a turnaround, the time is now. Republican Attorney General Tom Corbett will be the state’s new Governor, a leader who has promised to run Pennsylvania in the mold of New Jersey’s Chris Christie.  And he definitely has the horses to accomplish his agenda: the Senate is solidly Republican, and the State House saw a thirteen seat swing to give the GOP a double-digit majority.

Many analysts postulated that Dan Onorato was defeated in the Governor’s race, and the Democrats lost control of the State House, because of the national Republican tidal wave, with Rendell playing little role in that result.

Nothing could be further from the truth.

In the off-year elections of 1994 and 2010, newly elected Democratic Presidents pushed unpopular policies: Clinton with national health care and gays in the military, and Obama with universal healthcare, cap-and-trade and the stimulus. In both cases, Republicans took advantage of the momentum and captured the U.S. House of Representatives and numerous Governorships, including the gubernatorial victories of Tom Ridge and Tom Corbett in Pennsylvania. 

The State House was a different story. In 1994, the outgoing Governor, Bob Casey, Sr., was a popular conservative Democrat, and his influence helped the Dems maintain their slim majority. But Rendell was an albatross around the neck of Onorato, his protégé, and Democratic incumbents statewide.  Given that Corbett made Rendell’s legacy the focal point of his campaign, the Governor bears the most responsibility for his Party’s shellacking.

It’s legacy time for the Governor, and his approval ratings are downright dismal: twenties throughout much of the state and only thirties in his home base of Southeastern Pennsylvania. Poll numbers don’t lie, so when the vast majority of people say that Rendell’s eight years at the helm were a disaster, the realization of failure sets in, and backlashes occur --- hence the uncontrolled outburst on 60 Minutes.

Perhaps the most surprising aspect of Rendell’s unpopularity is that it occurred despite the media’s cozy relationship with the Governor.  That free pass culminated when Brian Tierney, (former) publisher of the Philadelphia Inquirer and Daily News --- the state’s largest papers --- sought a taxpayer bailout from Rendell himself, who was primed and ready to comply.  Thankfully, this was eventually nixed.

But if you read the glowing editorial in the Inky this past Sunday, you’d have thought Rendell walked on water. Consider these beauties:

“…he is leaving office as one of the most effective and capable governors that Pennsylvania has ever had.”

Nothing like telling 70 percent of Pennsylvanians they are dead wrong. And who says the media is elitist?

“…Rendell has led the state to impressive gains in public education.”

How?  By throwing an endless supply of taxpayer money into the black hole we call Philadelphia’s deathtrap schools?  If more funding was the solution, we’d have the best and brightest students.  Instead, we have unacceptable dropout rates, functional illiterates, low SAT scores and unaccountable teachers’ unions. But God forbid we try the only solution proven to work --- school choice.  The unions wouldn’t like that, and far be it for the Governor to offend a big contributor.

Speaking of which, from the bailout of Boscov’s to the millions bestowed upon Ballard Spahr, the Governor’s former law firm, Rendell has, first and foremost, taken care of his political pals and big-dollar contributors.  That, of course, was completely lost on the Inquirer’s editorial board as it opined, “Rendell's push for tax breaks resulted in the construction of Comcast's new corporate headquarters in Center City...”

Tax breaks?  Come on!  Those were blatant cash giveaways of OPM --- Other People’s Money! The Comcast-Rendell High Speed Money Connection was nothing more than corporate welfare to a multi-billion giant whose employees, political action committee, and executives (and spouses) --- including Rendell confidant, former Ballard boss and Chairman of the Philadelphia Chamber of Commerce David Cohen --- just so happened to throw almost $750,000 Rendell’s way. 

 “…The gaming part of Rendell's legacy has yet to play out. The new casino industry is providing jobs, as well as revenue for significant property-tax relief.”

Property-tax relief? Where?  Uranus?

Introducing addictive gambling as the centerpiece of an Administration and thinking it will lead to an economic revival is naïve, at best. But to rabidly defend it despite its obvious failures is deserving of our pity.

“…Overall, this governor was a friend of citizens whose voices don't often get heard in the halls of power. Pennsylvania has benefited as a result.”

Wait.  When did politically-connected law firms, unions and big-time fundraisers stop having their voices heard?

Here’s the sad reality.  If Rendell kept his word by not vetoing the Fair Share Act (limiting liability in lawsuits), if he hadn’t taxed people and businesses to the brink, if he had acted with a even a shred of responsibility when it came to budget spending, if he demanded accountability in our schools instead of being beholden to union interests, and if he instituted transparency and reform in state government, then Pennsylvania wouldn’t be near the bottom in job creation, economic opportunity --- and hope.

That this is lost on the insulated media is not surprising. But it’s certainly not lost on the only ones who matter --- the people. Tom Corbett and his Party would do well to always remember that.

To paraphrase a popular saying, a legacy is a terrible thing to waste.

Chris Freind is an independent columnist, television commentator, and investigative reporter who operates his own news bureau, www.FreindlyFireZone.com
Readers of his column, “Freindly Fire,” hail from six continents, thirty countries and all fifty states. His work has been referenced in numerous publications including The Wall Street Journal, National Review Online, foreign newsApapers, and in Dick Morris' recent bestseller "Catastrophe."
Freind, whose column appears nationally in Newsmax, also serves as a guest commentator on Philadelphia-area talk radio shows, and makes numerous other television and radio appearances, most notably on FOX.  He can be reached at This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Freindly Fire Note:

On February 17, Governor Tom Corbett authorized the $42 million shipyard bailout.   Two ships will now be constructed --- even though there are no buyers, nor any in the foreseeable future --- and hundreds of union jobs will now be subsidized.  So much for the pledge of responsible government and fiscal restraint, especially in light of the $5 billion budget deficit.

The wildly successful model that Gov. Christie has given his colleagues --- popularity will rise if you stick to your campaign promises --- is, incomprehensibly, falling on deaf ears. It is bad enough Corbett is being labeled "Governor MIA" for scarce appearances during his first five weeks in office.  But when his first sign of life  is choosing a bailout associated with politically-connected powerbrokers over the taxpayers who just elected him, the idea that Pennsylvania is on the right track becomes a hard sell.

As of now, the status quo still rules the day...

Column originally published January 6, 2011:

Corbett Can Drop Anchor On Governor’s Taxpayer Boondoggle

In the movie Dave, Kevin Kline plays a presidential lookalike who finds himself running the country after the real President falls into a coma.  Convening a Cabinet meeting, this political novice uses common sense to expose the ludicrous mentality of the entrenched Business As Usual crowd.

Kline asks the Commerce Secretary about an ad campaign his Department has implemented to boost consumer confidence in the American auto industry.  “It’s designed to bolster individual confidence in a previous domestic automotive purchase,” the Secretary proudly explained.

Speechless at first, Kline fires back, “We're spending millions for somebody to feel good about a car they already bought? I don't want to tell an eight-year-old kid he's gotta sleep in the street because we want people to feel better about their car. Do you want to tell him that?”  The shocked Secretary (finally) sees the light, and the program is eliminated.

Incredibly, that mentality isn’t limited to fictional Hollywood scripts, but is a large part of the way our governmental leaders operate. Look at what Pennsylvania’s Ed Rendell is trying to pull off before he walks out of the Governor’s Mansion a few weeks from now.

Shortly before leaving office, Rendell authorized $42 million in taxpayer money to be sent to the Philadelphia Regional Port Authority (PRPA) to help bail out the sinking Aker Shipyard in Philadelphia.

The funding, we are told, would prevent Aker from going under, since it would be building two new tanker ships. 

Of course, there’s one small problem.

There are no buyers for the ships.  And the prospect of that changing course anytime soon is virtually nonexistent.

Thousands of ships worldwide are lying at anchor because of the global recession, idled indefinitely because the demand for shipping is dismally low.  It’s gotten so bad that some ship owners are even scrapping their vessels to eliminate harbor costs, receiving pennies on the dollar. But the remaining glut of vessels is still huge, depressing prices for the foreseeable future.

So, let’s be “Dave” for a second and get this straight.

Rendell wants to spend money --- our money, since there’s no such thing as “state” money --- to build ships…that no one is going to buy, ostensibly so some 1,000 workers can keep receiving a subsidized paycheck. And since there aren’t any buyers, the ships obviously wouldn’t be built-to-order, further devaluing them and making their eventual purchase all the more difficult.

Rendell may not care, but I certainly wouldn’t want to tell a mother that her child died in a bridge collapse that resulted from a lack of maintenance --- because $42 million was spent on ghost ships instead of bridge repairs.

But what type of Rendell move would it be if he didn’t take care of his political pals and big-time fundraisers?

The Chairman of the PRPA is none other than John Estey, former Rendell Chief of Staff and a longtime partner at Ballard Spahr, the Guv’s old firm which has received the lion’s share of millions in no-bid legal contracts from the state.  And guess who the outside counsel of PRPA was?  Ballard Spahr.

This is the same John Estey who is also Chairman of the Delaware River Port Authority (DRPA), which is intricately linked to the PRPA, sending millions their way over the years.

The DRPA couldn’t dole out legal contracts fast enough to Ballard when it served as its outside counsel --- over $3.2 million since Rendell was elected in 2002, up from $480 the year prior. And when Chairman Estey voted to approve those legal bills, he was, in fact, approving funds that went directly to Ballard --- his own firm. 

Ballard and its associated entities, by the way, have contributed $1.5 million to Rendell.

The Philadelphia Port Authority is nothing if not politically-connected, too: two Board members alone have donated over $350,000 to the Governor’s campaigns.

It must be nice (and lucrative) to represent both Authorities when all that “Other People’s Money,” to quote the legendary Vince Fumo, is flying around, but that’s another story.

But to make the story even more interesting, enter Manny Stamatakis, Chairman of the nonprofit Philadelphia Shipyard Development Corporation.  That is the entity which will receive the $42 million so it can buy Aker assets and lease them back to the company as part of the bailout.  Some might call that a shell game.

“If they don't build these next two ships, this yard is shutting down," Stamatakis was reported as saying.  Well then, let’s not mess around, Manny.  Let’s make it $420 million and employ 10,000 workers.  Or even $4.2 billion so that Aker can build 200 ships.  No one will buy them, either, but so what?  We’re keeping people employed and the political-elite will be happy.

Ironically, the entity that should be in the best position to throw money Aker’s way would be the DRPA with all the economic development money it controlled.  But it was under Manny’s watch as DRPA Chairman that much of the $500 million in such funds were blown --- pretty much on everything not related to bridges or ports.

And now Stamatakis is Chairman of the Shipyard Development Corporation.  Go figure.

Hope is not lost though.  Attorney General Tom Corbett must still approve the contract.

Sources have told Freindly Fire that the lobbying on Corbett to let this contract sail through before his January 18 gubernatorial inauguration by has been extremely intense.  Given the Rendell Administration’s track record with these types of contracts, that should be red flag enough to put the brakes on this deal until all questions are thoroughly answered.  And clearly, questions abound.

The Rendell legacy has been one of abject failure for all Pennsylvanians not linked at the hip to the Governor, and the attempted Aker bailout is a perfect illustration of how he achieved that dubious status.

Like two ships passing in the night, Corbett and Rendell could not be any more different in their direction. Here’s hoping Corbett drops anchor on Rendell’s last hurrah and charts a course for safer harbors.

Chris Freind is an independent columnist, television commentator, and investigative reporter who operates his own news bureau, www.FreindlyFireZone.com
Readers of his column, “Freindly Fire,” hail from six continents, thirty countries and all fifty states. His work has been referenced in numerous publications including The Wall Street Journal, National Review Online, foreign newspapers, and in Dick Morris' recent bestseller "Catastrophe."
Freind, whose column appears nationally in Newsmax, also serves as a guest commentator on Philadelphia-area talk radio shows, and makes numerous other television and radio appearances, most notably on FOX.  He can be reached at This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Webster’s defines greed as “a selfish and excessive desire for more of something than is needed.”

But there should be another entry: Teamsters Local 628.

You see, these are the guys who destroyed months of work by those trying to resurrect the Philadelphia Inquirer and Daily News papers.  The Teamsters were the ONLY union out of 16 who chose not to negotiate in good faith (READ: common sense) with the papers’ prospective new owners.

In doing so, they have jeopardized thousands of jobs.

The deal is off, and the papers are going back on the auction block. 

Worse still, former publisher Brian Tierney, whom the Teamsters unabashedly supported, is not out of the newspaper business yet. 

In fact, Tierney allies Raymond Perelman, a billionaire who bid with the Tierney group during the last auction, and the Carpenters Union , who lost every penny of its original pension fund investment but mysteriously keeps throwing more money on the table --- have once again submitted a bid.

God help us.
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It was under Tierney’s reign that the newspapers were driven into bankruptcy. 

When investors backing Tierney bought the papers in 2006, the “local ownership” angle was spun by the former PR exec as being the saving grace of journalism in the state.  Local ownership of the papers, we were told, would produce the stories that mattered --- the ones the public was thirsting to read. 

Instead, it became the exact opposite.

Thorough “no sacred cows” reporting virtually died, with only two major investigative stories being produced in Tierney’s four years at the helm. 

Given the papers’ vast resources, coverage of Philadelphia’s corruption could have, and should have, produced daily stories. 

But it didn’t happen.

And in the area that provided the lowest-hanging fruit --- the administration of Pennsylvania Governor Ed Rendell, with more conflicts than could be counted --- there was virtually nothing of substance coming from the papers.

Where were the stories on the Delaware River Port Authority’s unchecked conflicts and cronyism?  The Philadelphia Housing Authority and its widespread abuses?  The millions upon millions of secretive no-bid contracts doled out to huge campaign donors --- including Ballard Spahr, the guv’s former firm and a huge beneficiary of the Administration’s largesse?

In fact, Ballard was so cozy with Rendell that it performed $773,000 in legal work for the state --- with NO contract.

And where was the state’s biggest media watchdog, with its vaunted local ownership, for any of these stories?

Nowhere to be found.

Pathetically, it seemed that the most important question the Inky’s reporters asked the Governor was his thoughts on the prospect of an all-Pennsylvania Super Bowl.

The journalistic demise of the once-proud papers should have come as no surprise, however, given Tierney’s close relationship with Rendell.

After all, Tierney sought a taxpayer-funded bailout of his ailing papers from Rendell himself.  Millions were on the table, from “economic development” grants to state pension investments to housing state workers in the Inquirer building.

That’s right.  Publisher Tierney expected the public to believe that the papers would have objectively covered Ed Rendell and state government issues despite the Governor’s saving the company from bankruptcy.

Just as disturbing, though, was that Rendell was ready, willing and able to oblige.

Until the deal was exposed by a media entity not afraid to tackle the tough issues, wherever they led.

A week later, the papers filed for bankruptcy. Following a bitter dispute lasting over a year, the creditors finally took control after winning the bankruptcy auction.

Or so we thought.

Enter the Teamsters.

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More often than not, rank-and-file union members are not to blame when their union does something greedy or idiotic (which, this being Philadelphia, happens a lot). 

Union workers rightfully place faith in their leaders, with the reasonable expectation that Leadership will act in the best interest of the members.

The Teamsters’ rejection of a more-than-fair offer that would have guaranteed members’ employment while improving the health of the company falls into the “idiotic and greedy” category.

Like the one bad apple that spoils the whole bunch, the Teamsters leadership succeeded only in getting the worst of all worlds (short of Tierney regaining control).

They have incurred the wrath of the public (which they clearly don’t care about), but also that of the other unions.

What makes the Teamsters’ greed incomprehensible is that the original auction agreement was in their interest, since it mandated that the owners finalize agreements with all unions prior to the deal closing. But because of the Teamsters’ holdout, the new auction rules will not have that provision.

And Teamsters President John Laigaie calls that progress.

"The way they look at it, they now have another chance to fight another day," he said, speaking of his members.

Sure they do.  And where will they be fighting?  On the unemployment line? It’s a very real possibility.

The Newspaper Guild, whose membership had come to terms with the prospective new owners, was furious at their not-in-solidarity comrades. 

In a statement, Guild President Dan Gross berated the action of a “lone union” whose conduct served to “jeopardize thousands of jobs and the entire company by hijacking and derailing the closing process.”

“Highjacking and derailing”?  This, from one union to another?  So much for solidarity.

And all because the Teamsters didn’t want to switch from their pension fund to either a generous 401K plan offered by the company or a retirement fund jointly administered by the union and the company.

Common sense suggests that the Teamsters’ leadership has been living on another planet, not aware that we are hemorrhaging jobs in a severe recession. 

Or is there a more sinister motive, with the retirement objection being a red-herring designed solely to kill the deal, perhaps so a different ownership could seize the day?

Either way, such intransigence is inexcusable.

Bottom line: the Teamsters’ leadership needs a reality check.

Just as important, the unions who publicly lambasted the Teamsters should be commended for their courage.  Management and Labor will always have their disputes, but as long as the ultimate goal on both sides is continued employment and growth, common-sense agreements can always be reached.

Otherwise, as the old saying goes, the greedy pig gets nothing.

Chris Freind is an independent columnist and investigative reporter who operates his own news bureau, www.FreindlyFireZone.com
Readers of his column, “Freindly Fire,” hail from six continents, thirty countries and all fifty states. His work has been referenced in numerous publications including The Wall Street Journal, National Review Online, foreign newspapers, and in Dick Morris' recent bestseller "Catastrophe."
Freind also serves as a weekly guest commentator on the Philadelphia-area talk radio show, Political Talk (WCHE 1520), and makes numerous other television and radio appearances, most notably on FOX 29.  He can be reached at This e-mail address is being protected from spambots. You need JavaScript enabled to view it

It’s Business As Usual at the DRPA.  And despite all the “reform” rhetoric flying around, don’t expect real changes anytime soon.

The reason is simple.

The people charged with implementing the reforms are the very same ones who have been, and still are, completely immersed in the conflicts, nepotism and cronyism that need reforming.

That’s like criminals running the prison, inmates taking charge of the asylum.

Given their legacy of abject failure, from accumulating massive debt to spewing outright lies, The DRPA’s Big Four executive braintrust simply has no credibility.  (It was The Big Five, but Jon Corzine was given the boot last year).

Pennsylvania Governor Ed Rendell has been virtually silent during the recent brouhaha, and, as the person in charge of the DRPA since 2002, that tells you all you need to know.

Rendell feigning indignation that corruption occurred on his watch as DRPA Chairman is like throwing ballast off a sinking ship.  It just doesn’t cut it.

His awful reform spin aside, Rendell is gone in months.  Two down.

That leaves CEO John Matheussen, Chairman John Estey, and Vice Chairman Jeff Nash, with their new-found piety and wounded vanity.  Despite PR tours and crisis management spin, their attempts at reforming the DRPA have fallen woefully short of the mark. 

You simply cannot lead when your followers have lost faith in your abilities.

The only viable solution is to wipe the DRPA clean, and Flush The Johns ---and Jeff too.

Need more ammunition for why they need to go?  Consider these recent beauties:

Estey’s Insulting FOX 29 Interview

During a recent interview on FOX’s Good Day Philadelphia, Estey, a partner at Ballard Spahr, was asked about possible DRPA conflicts with his law firm.  His response: “The truth is, I don’t know where that came from….my firm doesn’t do any work for the DRPA.”

Oh really, John? How utterly disingenuous can he be?

Ballard Spahr billed over $80,000 in 2010 alone, and $186,000 in 2009!  When did the firm stop its DRPA business dealings?  Five minutes prior to the show? 

And even if some of that billing was carried over from other years, that absolutely should have been disclosed by Estey. But it wasn’t.

What Estey also conveniently failed to mention was that Ballard performed almost $3 million in legal work for the Authority since Gov. Ed Rendell appointed himself DRPA Chairman in 2002. 

Which is interesting, given that Rendell worked at Ballard for the three years prior to his election.

Oh, and just to be clear: Ballard, its attorneys, and the Philadelphia Future political action committee --- which is registered at the Ballard offices, and whose Treasurer is Rendell confidante, political powerbroker and former Ballard Chairman David Cohen ---  donated nearly $1.5 million to Rendell’s campaigns. 

And Rendell’s Governor committee is registered at the Ballard Spahr offices!

For comparison, Ballard billed a total of only $480 in 2001 ---the year BEFORE Rendell was elected.  Quite a jump by any standard.

And despite Rendell’s claims that he had no influence in how Ballard was selected, Ballard Chairman Arthur Makadon was quoted in a 2009 news article, stating that the choice is "effectively up to the Pennsylvania governor."

Call me slow, but those two statements seem contradictory, and raise a whole lot of other questions that need to be scrutinized in great detail.

Are Rendell and Estey Really Clueless On Audits?

One of the reforms Estey has championed is allowing the Pennsylvania Auditor General to conduct an audit of the DRPA. 

In fact, the stated purpose of Estey’s upcoming resolution is to “…permit the Pennsylvania Auditor General’s Office…to audit the performance of the Authority.”

Sounds great as a 30-second sound bite.  But the reality is an entirely different animal.

As in….that audit CAN’T occur.  Not now, not ever.

The Pennsylvania Auditor General (currently Jack Wagner, who has been one of the only consistent voices of reform) has an automatic seat on the DRPA Board.  As such, it violates government auditing standards for Wagner to conduct a forensic audit on an agency on which he sits.

Estey and Rendell either don’t know this, making them incompetent, or they do, making them complicit in deliberately misleading the Board, the public, and the media.

And it isn’t like the DRPA is being audited regularly, anyway.  The governing rules of the Authority, known as the Compact, REQUIRES a management audit every five years. 

But this being the DRPA, where rules are for other people, they just released the audit THAT WAS DUE IN 2006!  Since the Authority footed the $500,000 bill, the audit’s independence was immediately nullified.  In fact, one Board member called it a complete waste.

To use a phrase made famous by former DRPA Board member Vince Fumo, now vacationing in federal prison, it’s Other People’s Money.

Typical DRPA.

The only way to ensure an audit is conducted independently is to utilize an auditor as far removed from the New Jersey and Pennsylvania political scene as possible. 

The United States Government Accounting Office or Inspector General’s Office are the most viable options --- but neither are being recommended by the DRPA.

DRPA Salary Increases: Yes Or No?  Ask Dick Brown

According to the DRPA, there have been no recent salary increases for employees.  Yet Richard Brown, longtime General Counsel, had his $9,000 car allowance shifted to his salary.

Despite car allowances being eliminated last month as a “reform” measure, Brown’s $9,000 car allowance-turned-salary increase will NOT be retracted. 

In other words, he received a pay raise. His salary stands at $189,081.

Car allowances are taxed as income, but that money does NOT count toward one’s pension.  Could it be that the DRPA made this salary-increase arrangement for Brown, who is at or near retirement age, so that his pension could be padded--- a hefty increase that toll payers will be paying for the rest of Brown’s life?

Legal or not, such a move is a slap in the face to those who will be paying $5 to cross the bridges next year --- bridges that remain overdue for capital improvement projects due to a lack of money.

Board Has Been Kept In The Dark

On numerous occasions, including some in the DRPA’s recent “Age of Reform,” the Port Authority’s Board Of Commissioners have been kept in the dark regarding resolutions, conflicts, personnel matters and the overall direction of the DRPA.

Consider just a few:

-The Board wasn’t informed of Vice Chairman Nash’s conflict when the DRPA shelled out three $50,000 marketing contracts to his (now) ex-wife’s company, Live Nation. 

-The Board wasn’t informed when Corporate Secretary John Lawless --- a self-described whistleblower --- was escorted from the building by Matheussen for non-disciplinary reasons in April, despite the fact that Lawless doesn’t work for the CEO, but for the Board itself. 

-The Board hasn’t been consulted on the reform resolutions being offered at the August Board meeting.

- Several Board members were unaware that DRPA executives had Authority-issued credit cards, and still have no idea how much was spent, and on what.

This veil of secrecy has become so commonplace that several Board Members are openly calling for a change in DRPA leadership.

If the Authority’s own Board doesn’t even know what the leadership is doing, how can the public ever feel confident that they are getting straight answers, let alone the truth?

So much for openness, transparency and accountability.

Attitude reflects leadership

The attitudes of Matheussen, Estey and Nash have consistently exuded nothing but contempt for toll payers, the media, law-and-order politicians and the truth.  No amount of reform will change that fact, so the only answer is their removal.

Likewise, the leadership of Gov. Chris Christie will be forever damaged if he reappoints or endorses any of the current DRPA leadership.

After decades of abuse and scandal, Business As Usual at the DRPA must come to an end.

Governor Christie, the people are waiting.

Chris Freind is an independent columnist and investigative reporter who operates his own news bureau, www.FreindlyFireZone.com
Readers of his column, “Freindly Fire,” hail from six continents, thirty countries and all fifty states. His work has been referenced in numerous publications including The Wall Street Journal, National Review Online, foreign newspapers, and in Dick Morris' recent bestseller "Catastrophe."
Freind also serves as a weekly guest commentator on the Philadelphia-area talk radio show, Political Talk (WCHE 1520), and makes numerous other television and radio appearances, most notably on FOX 29 in Philadelphia. 

He can be reached at This e-mail address is being protected from spambots. You need JavaScript enabled to view it

FREIND On FOX 29 hammers Delaware River Port Authority CEO John Matheussen on his legacy of failure, and criticizes the sham punishment he handed down to Chief Public Safety Officer Mike Joyce after Joyce ---the TOP law enforcement official at the Authority --- gave his daughter the EZ Pass of another DRPA Executive for her personal use--- possibly a criminal act:

http://www.myfoxphilly.com/dpp/good_day_philadelphia/DRPA_Chris_Freind_Reacts_072310

Note: This column first appeared in Philadelphia Magazine's Philly Post.  Read all of Freind's Philly Post's columns:

http://blogs.phillymag.com/the_philly_post/author/cfreind/

“The Greater Philadelphia Chamber of Commerce is dedicated to promoting regional economic growth…and advancing business-friendly public policies.”

So says the Mission Statement of Philadelphia’s Chamber of Commerce.

It further states that it is, “dedicated to supporting and encouraging the continued growth” of its members by striving “to influence business-friendly legislation in all levels of government, participate in initiatives to improve education and the community.”

And its Public Policy department is supposed “…to address pro-business legislation directly with the policy-makers who can make a difference.”

Wow.

If only the Chamber put just a small fraction of that mission into reality, maybe Philadelphia wouldn’t be such a dismal place to live and work.
But the city Chamber is not alone in selling out its members.

Last month, the Montgomery County Chamber, in an act that defies belief, issued a “Lifetime Achievement Award” to Governor Ed Rendell at a “Celebration of Excellence” event. 

It’s no small point that Rendell, more than anyone, is responsible for the carnage that is Pennsylvania’s economy.                                                                  

In 2007, Ballard Spahr, Gov. Ed Rendell’s former law firm, performed $773,000 of state legal work without a contract.

In 1999, after serving eight years as Mayor of Philadelphia, Ed Rendell joined the Ballard Spahr law firm, headquartered in Center City. Two years later, during his campaign for governor, Mr. Rendell said, "I have, for the last two years, done practically nothing for [Ballard]," according to numerous press reports.

Upon assuming office, he appointed himself Chairman of the Delaware River Port Authority (DPRA), the entity overseeing the four major bridges in Philadelphia. One of the major beneficiaries of Gov. Rendell's being DRPA chairman has been his former firm.

In the three years preceding Mr. Rendell's election, Ballard received $25,000 in legal fees from the Port Authority, including only $480 in 2001. From 2002 until the present, Ballard has received over $2.7 million.

Two of the governor's former top aides, John Estey, his former chief of staff and Adrian King, his former deputy chief of staff, are currently partners at Ballard, and both hold influential positions related to DRPA. Mr. Estey chairs the board meetings and maintains full voting rights on behalf of the governor, and Mr. King serves as the authority's outside counsel. Mr. Estey and Mr. King are brothers-in-law, and together they have contributed over $35,000 to Mr. Rendell's political coffers.

Additionally, a Rendell appointee, Pennsylvania Treasurer Robin Wiessmann, sits on the DRPA board. Her husband, Ken Jarin, also a partner at Ballard, serves as DRPA outside counsel and occasionally chairs board meetings. He contributed $90,000 to the governor's campaigns. Ballard attorneys have contributed nearly a half-million dollars to Gov. Rendell. Hundreds of thousands of dollars of "in-kind" contributions were also donated.

The Philadelphia Future Political Action Committee, registered at the Ballard Spahr offices, contributed $471,000 to Mr. Rendell. The PAC's treasurer is David Cohen, former chief of staff under then-Mayor Rendell, former chairman of Ballard Spahr and the current executive vice president of Comcast Corporation. Mr. Cohen contributed $80,000 to the governor.

According to Pennsylvania Department of State campaign filings, the address of Gov. Rendell's campaign treasurer is the 51st Floor of 1735 Market Street in Philadelphia. Ballard Spahr occupies the entire floor.

While many believe this arrangement is a blatant conflict of interest, it not unusual. In fact, such relationships are commonplace in how business is conducted in Pennsylvania.

Despite the questionable nature of such practice, it is not officially considered "pay-to-play," which generally relates to the illegal practice of giving political contributions in return for government contracts. In the absence of a quid pro quo arrangement, the rewarding of former firms with lucrative contracts is legal and continues unimpeded.

What has raised the ire of both the public and the state legislature, however, is the frequency of these contracts, the huge contract amounts and the secrecy surrounding no-bid contracts. That is especially true when they are doled out to firms, such as Ballard Spahr, which maintain a close relationship with the governor. When pressed for answers about the decision-making in hiring Ballard Spahr, Gov. Rendell's spokespeople routinely deflect all responsibility away from him, issuing statements that the governor had no role in the selection process.

Consequently, there has been a renewed push in the state House to enact reforms in how contracts are awarded and to prohibit campaign contributions by companies and individuals who contract with the commonwealth or its political subdivisions. Four bills addressing these issues have been introduced as a legislative package by state Reps. Robert W. Godshall, R-Montgomery County; Douglas Reichley, R-Berks and Lehigh counties; Glen R. Grell, R-Cumberland County; and Mike Turzai, R-Allegheny County, and all remain pending in the Democratic-controlled committee (see Legislators Introduce Bills To Reform Contracts).

There are numerous firms that have benefited from political connections, but none navigate the political landscape so adroitly as Ballard. Many of its partners are consummate political insiders, so much so that according to press reports, Gov. Rendell chose not to utilize his Philadelphia office in The Bellevue for an August meeting regarding city casinos, preferring the cozy confines of Ballard Spahr instead.

Zack Stalberg, president of the nonpartisan watchdog organization Committee of Seventy, was quoted as saying, "It seemed like an odd place to have it. There's got to be a lot of other neutral territory around town other than a highly influential, connected law firm."

According to state records, more than $1 billion in no-bid contracts have been issued during Gov. Rendell's tenure. While the vast majority of state contracts require a bidding process, the governor has the discretion to award contracts on a no-bid basis when it is in the "best interest of the commonwealth." It is not known whether the Rendell administration has exploited this loophole more than the previous administrations, since comparative state records were "lost," according to the Department of General Services, who has, to date, been unable to locate the records.

Ballard Spahr ranks near the top of law firms receiving state work since Gov. Rendell became the state's chief executive, totaling more than $10 million, not including DRPA fees. That is in large part because no other firm comes close to having the intimate connections with the governor himself. Enough eyebrows have been raised by watchdog groups and in the General Assembly that Barbara Adams, general counsel to the commonwealth, and Rendell appointee, made a special presentation during a recent state-sponsored Continuing Legal Education (CLE) course to stress that law firms are not chosen because of their political connections. According to a source, many attorneys "rolled their eyes and smirked" at that comment. CLE courses are mandated for all Pennsylvania attorneys in order to keep their law licenses current.

In addition to the millions in DRPA legal fees, Ballard Spahr's connections have allowed it to be selected as counsel for the following entities:

The Pennsylvania Turnpike Commission

For several years, the Rendell administration has proposed privatizing the turnpike in order to raise revenue. Despite the Pennsylvania Department of Transportation having a large in-house legal staff, numbering more than 70 attorneys, Ballard was selected as counsel for this project, being awarded a $1.8 million no-bid contract.

Ken Jarin billed the state $25,000, which was ultimately paid for by the state treasurer - and Mr. Jarin's wife - Robin Wiessmann. Ballard Chairman Arthur Makadon billed the state at a rate of $637 per hour. Additionally, Ballard performed $773,000 worth of legal work without a contract. In order for those legal fees to be paid, a special arrangement, known as a "Compromise, Settlement and Release" agreement, was executed between the state and Ballard. These actions have infuriated state legislators, prompting the proposed reform legislation.

The Philadelphia Regional Port Authority (PRPA)

As an "independent agency of the commonwealth," the PRPA depends on and takes direction from the state. John Estey serves as Chairman of the PRPA. During a June 18, 2008 board meeting, Ballard Spahr was selected to be counsel to the authority.

GTECH

This Rhode Island company, which specializes in casino-related operations, hired Ken Jarin for assistance in contract negotiations while it was attempting to win a contract for a computer system that monitors slots gaming in Pennsylvania. GTECH received a five-year contract worth millions per year.

Additionally, the state Department of Revenue awarded a five year contract to GTECH earlier this year "to supply terminal-based game services to the Pennsylvania Lottery," potentially worth $25 million a year.

Chris Freind is an independent columnist and investigative reporter who operates his own news bureau, www.FreindlyFireZone.com

Readers of his column, “Freindly Fire,” hail from six continents, thirty countries and all fifty states. His work has been referenced in numerous publications including The Wall Street Journal, National Review Online, foreign newspapers, and in Dick Morris' recent bestseller "Catastrophe."

Freind also serves as a weekly guest commentator on the Philadelphia-area talk radio show, Political Talk (WCHE 1520), and makes numerous other television and radio appearances.  He can be reached at This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Dear Governors Rendell and Corzine:

It is no secret that the Delaware River Port Authority has recently come under intense criticism. The organization is $1.2 billion in debt and cannot sufficiently fund major capital projects, such as re-decking the Walt Whitman Bridge. As a result, the Board of Directors today authorized a substantial toll increase at its board meeting.

However, there are a number of unanswered questions that extend well beyond the scope of a toll hike. In the hopes of shedding some light on these issues, The Bulletin herewith asks the DRPA to address four questions that can no longer remain under the bridge:

1)Why is Pennsylvania State Treasurer Robin Wiessmann, who has a seat on the DRPA Board, authorizing expenditures to the law firm of Ballard Spahr Andrews & Ingersoll, (Gov. Rendell's former firm), the firm in which her husband, Ken Jarin, is a partner? And why are partners in that firm chairing DRPA board meetings when their firm represents the board?

Since Governor Rendell, the DRPA chairman, rarely attends board meetings, he appointed John Estey as his chairman-designate. What makes this particularly interesting is that Ballard Spahr represents the DRPA Board, and both Mr. Jarin and Mr. Estey are partners in that firm. Since the chairman-designate has the same voting power as the chairman, Mr. Estey is, in point of fact, authorizing payments to his own firm. And when Treasurer Wiessmann doesn't think that DRPA's in-house general counsel and staff attorneys are equipped to handle a legal matter, and authorizes outside counsel, she too is putting money into her husband's pocket - and ultimately her own.

2)Why does the DRPA's Director of Labor Contract Compliance, John Rogale, list two employers on New Jersey state election records, illustrating a potentially huge conflict of interest?

Election law requires that political contributors disclose their employer under the "Occupation and Employer Information" section. Pursuant to a May 17, 2006 contribution, Mr. Rogale listed the DRPA as his employer. However, on a contribution nine months later, he listed "Remington and Vernick Engineers" of Haddonfield, New Jersey as his employer - at a time when he was (and still is) employed by the DRPA. Given that Remington and Vernick is a general engineering contractor for the DRPA, it is a gross conflict of interest if Mr. Rogale's is employed by that firm. If he does not work for them, and since this is not an "easy" mistake to make, why did Mr. Rogale list them as his employer?

3) Why does Marc Woolley hold positions at both the Ballard Spahr law firm and the DRPA?

According to the DRPA, Mr. Woolley serves as Assistant to the Chairman as well as Director of Claims Administration. But he can also be reached at the Ballard Spahr office in Philadelphia, where he started working last week. Working for both entities would be an obvious conflict of interest. If he is "transitioning" from one organization to another, Mr. Woolley's employment during this time should be kept to one organization, never overlapping.

Given that the DRPA's public image is extremely negative, Mr. Woolley's situation, with no explanation from the DRPA, is unacceptable. At this point, even the appearance of impropriety should be avoided at all costs. Immediate clarification on this matter is requested.

4)  Why does John Matheussen, Chief Executive Officer of DRPA, refuse to commit the $35 million of economic development funds for either debt retirement or the Walt Whitman Bridge re-decking project?

Given the DRPA's economic woes, and the fact that 76 percent of its revenues are utilized for salaries, benefits and debt service, common sense dictates that it should eliminate the economic development grant program, instead using the remaining money on bridge maintenance (which would be approximately 20 percent of the re-decking cost) or to retire a portion of its paralyzing debt. Mr. Matheussen's refusal to do indicates that the DRPA's will resume its "business as usual" operations as soon as the current controversy subsides.

These are but a few of the many outstanding questions swirling around the Port Authority. The Bulletin respectfully asks for immediate clarification on these questions. This letter has also been addressed to each member of the DRPA Board and Mr. Matheussen.

Sincerely,

The Philadelphia Bulletin (Chris Freind)