Has New Jersey Governor Chris Christie just driven his successful Administration off a bridge?

Not yet, but he’s nearing the edge.

By not taking the bull by the horns and doing the right thing about the mega-corrupt Delaware River Port Authority --- press to have CEO John Matheussen immediately fired --- his credibility has started to plummet.

Christie’s performance --- or lack thereof --- last week at the DRPA headquarters left many scratching their heads, wondering if insider back-room political deals finally got to him, or if he was operating in a seat-of-the-pants, rudderless manner.

Either way, Christie needs to right his ship quickly if he is to remain the national model for successful governors.

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Last Thursday morning, Christie called a hastily arranged press conference to vent his frustration over the DRPA’s lack of reform.  Within minutes, media outlets on both sides of the river were reporting that Christie was en route to Camden to fire Matheussen.

With the Port Authority’s incompetence and deceit on public display like never before, and with Matheussen fully immersed in the very conflicts that need reforming, ousting the CEO would be the only move Christie could make, right?

Wrong.

Instead, the Governor inexplicably stood with Matheussen, demanding reforms with more teeth and better accountability at the Authority.

The $64,000 question is how he could have done this with a straight face.

Why would the Governor drive all the way to Camden to say…the same exact thing he’s been saying for months?  And how in the world could he renew his faith in Matheussen as the guy to clean up the DRPA cesspool?

One of two scenarios comes to mind:

1) Christie fell victim to political maneuvering, and is compromised in effectively dealing with the DRPA.

This possibility has merit, as the President of the State Senate, Democrat Steve Sweeney, whose labor-leader brother sits on the Port Authority Board, is a staunch defender of Matheussen.

The Jersey Board is stacked with union officials, so perhaps Christie has felt enough heat from his battles with organized labor that he is backing off replacing Matheussen, a union ally.

2) The Governor called the press conference to fire Matheussen but realized that, technically, he doesn’t have that power. The CEO serves at the pleasure of the DRPA board, and Christie can’t replace any News Jersey Board members until their terms expire.

So perhaps Christie switched to Plan B, and attempted to throw more fire under Matheussen’s feet.

Either way, it’s a failure on Christie’s part, with a two-fold result: his reputation as a law-and-order Governor who isn’t scared to take on the entrenched Business-As-Usual crowd takes a hit, and the cronies at the DRPA grow stronger each day they remain in power.

So what could Christie have done?  The same thing he should do now, and as quickly as possible:  use his office as a bully pulpit and demand that the Board remove Matheussen.

It’s simple, and, at least on this issue, easy.

Chris Christie is incredibly popular precisely because people think he’s fighting for them.  He’s called for cuts across the board to reign in government spending, and, despite even his supporters feeling pain, he remains an iconic figure.  Voters certainly don’t agree with him on all his positions, but they respect his leadership and his willingness to tackle the toughest issues ---and politicians --- head-on.

If tomorrow the Governor forcefully called on the Board to boot Matheussen, and implored his neighboring colleague, Ed Rendell, to do the same, it would be very tough to say no to him.

Every press outlet in both states would report his call-to-arms, as well as the laundry list of reasons why Matheussen must go.

And with so many reasons to dump Matheussen, who’s going to oppose Christie?

Gov. Rendell?  He has admitted major mistakes were committed, and numerous conflicts allowed, under Matheussen’s tenure.

The Board?  Doubtful, mainly because this is the same body that has been kept in the dark by Matheussen on so many issues, including:

* DRPA executives using pool cars while having huge car allowances, and Matheussen’s changing story about HIS pool car use;

* The existence (and use) of DRPA credit cards, a full accounting of which the Board, and the public, are still waiting;

* Conflicts involving DRPA Vice Chairman Jeff Nash, in which Matheussen himself signed three contracts to Live Nation --- the company that employs Nash’s wife;

* The changing story of a DRPA bridge manager who took toll money in clear violation of the rules. Matheussen had the individual transferred to the DRPA cruise terminal office, still making six figures a year --- despite there being no cruises. Board Commissioner John Dougherty stated that Matheussen lied to him from the start about the situation, with the CEO originally saying the story had “no basis in fact.”

* The timeline and details surrounding a suspect arrangement of large-dollar commissions paid by the DRPA to insurance companies in both Pennsylvania and New Jersey.

* Removing John Lawless, a Board employee, from the DRPA building under armed guard in April, and not permitting him to return to work, despite no authority to fire him. So for nearly five months, the toll payers footed the salary for a Board employee who, by Matheussen’s own accord, wasn’t relieved for disciplinary reasons.  Attempts for answers were met with silence.

Not only did Matheussen keep many of his decisions from the Board, but when they did come to light, he failed to provide adequate explanations for his actions.

Bottom line: John Matheussen’s legacy at the DRPA has been one of abject failure, as he presides over a nearly bankrupt agency that can’t even complete its most core mission --- the maintenance and safety of just four bridges and a small train line.

Additionally, he has broken new ground in his rush to make the Authority the most generous piggybank possible for politicians and insiders, while forsaking the people who pay the bills.

Never before has there been an issue where virtually 100% of the public is in agreement. Taxpayers have reached their breaking point with the DRPA, and stand shoulder-to-shoulder with non-corrupted politicians, citizen activists, and the media in calling for King John to be flushed away, wiping the slate clean for new leadership.

But each day Gov. Christie doesn’t pound this point home, his enemy becomes stronger.  That chink in his armor will expand until it becomes a gaping hole, and the successful Christie agenda will be in jeopardy of failure.

The opportunity to ram a stake through the heart of Business As Usual comes but once in a lifetime. It’s having the courage to take that action which makes legendary leaders.

Governor Christie, that time is now.

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

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)

(This column first appeared in Philadelphia Magazine)

In a February, 2008 media report, Delaware River Port Authority (DRPA) Vice Chairman Jeff Nash, also an elected Camden County Freeholder, ominously warned that “…the deck of the Walt Whitman (Bridge) HAD a 50-year life span….We’re at 50 years, two months.”

Two and a half years later, the decking project of the Walt Whitman has not yet begun. 

Why?  Lack of money, we are told, which is in part why the Port Authority just went further into debt by borrowing $320 million.

Of course, as with all things DRPA, that’s not the whole story.

The money was there.  They just chose to ignore the bridges, instead channeling huge bucks to perks and political patronage deals.

The DRPA has squandered nearly $400 million in so-called “economic development” projects that have nothing to do with the bridges, and now finds itself more than $1.5 billion in debt.

Due to intense media scrutiny, a series of reforms have been suggested by Ed Rendell, who, as Pennsylvania Governor, appoints the DRPA Chairman.  After his election in 2002, Rendell appointed himself Chairman, and last year made his former Chief of Staff and longtime political fundraiser and confidante John Estey ---a partner at Ballard Spahr, the Governor’s former firm --- the Chairman.

The reforms, while noteworthy, do not resolve the immense conflicts of interest which have gone unchecked for years and still permeate the entire Authority.

Like the fox being given oversight to “guard” the henhouse, Rendell and the DRPA audaciously expect the forgotten tollpayers --- on whose back the DRPA has trodden --- to believe that the reforms will be effectively implemented by the very people who are knee deep in all the conflicts.

For an example, let’s look at a conflict involving Vice Chairman Nash.

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In 2008, the DRPA signed a contract with Live Nation, the largest live entertainment company in the world, for marketing and advertising. Significantly, the amount was exactly $50,000.  In 2009, two more contracts were signed, both for $25,000.  And in 2010, services have been provided and payment is pending, for a contract in the amount of an additional $50,000.

It just so happens that Nash’s wife, Jodi, is the Director of Sales and Sponsorship at Live Nation, Inc. in Camden.

Freindly Fire spoke with Nash about the contract, who stated the purpose was to help alleviate traffic congestion at the Susquehanna Center, which, incidentally, is owned and operated by Live Nation. DRPA’s advertising dollars marketed the Authority’s PATCO trains and River Link Ferry as means of transportation to and from the Center.

It must be questioned why DRPA is involved with that issue in the first place.  By definition, for anyone using the Ferry, and for many using PATCO, they have to pay a toll one way or another: bridge, train or boat. 

No matter which option, DRPA gets its money, without having to spend $150,000 with the billion-dollar, publicly-traded Live Nation corporation that employs Nash’s spouse.

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What is particularly irritating to tollpayers, who will soon pay $5 to cross the bridges, is seeing Nash now clothe himself in the garments of a reformer. He recently stated how appalled he was that conflicts and nepotism exist at the Authority. 

Why the new-found piety, since the conflicts have been so prevalent for years?  Is it because the DRPA just got caught with its hand in the cookie-jar and is under the microscope?  Is this now a full-blown “cover-your-derriere” strategy to make the scrutiny disappear?

Not a bad assumption.

(Read about DRPA Conflicts:)

http://www.freindlyfirezone.com/index.php/national-news/item/76-open-letter-to-gov-christie-five-reasons-to-dump-drpa-chief-matheussen

http://www.freindlyfirezone.com/index.php/component/k2/itemlist/date/2008/11

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Why Is A Monopoly Advertising?

Let’s call a spade a spade.

DRPA is a monopoly. By its nature, it doesn’t have to market itself or advertise. Since there is no competition, there's never a need to wine and dine clients, nor does it have to worry about pitching business proposals.

The Authority’s guaranteed revenue source --- we the tollpayers --- precludes it from having perks often found in the private sector.

Therefore, questions come to mind regarding the Live Nation contracts:

1) Why are DRPA’s executives engaging in business dealings with companies that employ Port Authority family members in executive positions?  Did Jodi Nash receive any commissions or financial benefit from the contracts?

2) Expenditures over $100,000 need Board approval; those from $50,001 to $100,000 need the signature of the CEO, Chairman and Vice Chairman, and any $50,000 and under need only CEO John Matheussen’s approval.

Based on the DRPA’s record of stonewalling and lack of openness, is it just coincidence that all of the contracts from 2008-1010 are UNDER $50,001?

Put another way, if the contacts were $1 dollar more, Nash would have been required to sign off with his approval.  It defies belief that that Mr. Nash didn’t know of the Live Nation contracts, not just because he is the Vice Chairman, but because his wife would almost certainly be aware of the transactions.

Were the just-under-the-threshold contracts designed to fly under the radar? Given the Authority’s history, one could certainly make that case.

3) Why is the DRPA pumping advertising and marketing dollars  into an entertainment company’s coffers when it is mired in staggering debt ---nearly 80 cents of every dollar is allocated to salary, benefits and debt ---, and the bridges are in disrepair and potentially unsafe? (The Authority has refused to release its safety inspection reports).

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The DRPA seems more interested in stadiums than bridges.

Using economic development funds, it has donated toll payer monies to the Camden Riversharks’ baseball stadium (Campbell Field), the Chester soccer stadium (PPL Park), and Lincoln Financial Field.

This raises more interesting questions.

First, what do stadiums have to do with bridges and the safety of those who use them?

Second, why the generosity to multi-million dollar entertainment and sports complexes?

Freindly Fire has requested information as to whether the DRPA has received any tickets from any of the aforementioned stadiums and/or teams who play there. 

If so, how many tickets were received from each entity, how were they allocated (specifically how they were distributed and by whom --- CEO, Chairman and Vice Chairman---), and to whom were they given?

Also, have any DRPA executives used the tickets? 

Nash Must Go

The Port Authority has come under intense fire recently for its outlandish executive perks and irresponsible management, all the while going deeper in debt and not properly maintaining the bridges.

While wasting hundreds of millions of taxpayer dollars, the DRPA has written a primer on conflicts of interest. The latest such revelation is the funneling of DRPA dollars to the company that employs the Vice Chairman’s wife.

Mr. Nash, who must live in a house without mirrors, recently spoke out against conflicts and nepotism. To be precise, he told the Philadelphia Inquirer, “This is an opportunity to make changes at the Authority so there is more transparency, no suggestion of conflicts or nepotism or political dealing."

Exactly.  And a good start is to show Mr. Nash, and his cronies, the door.

Governors Christie and Rendell, the ball’s in your court.

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

                      Push for Criminal Investigation Into Port Authority To Continue

http://www.myfoxphilly.com/dpp/news/local_news/vereb,-friend-on-the-drpa-mess

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