Consultants benefiting from Detroit's cash crisis - New York News

Consultants benefiting from Detroit's cash crisis

Posted: Updated:
City of Detroit City of Detroit
DETROIT (WJBK) -

While the emergency manager scrambles to keep Detroit out of bankruptcy, there are others who are cashing in on the city's money crisis.

"We have approved over $17 million worth of restructuring contracts," said Detroit City Council Member Brenda Jones.

That is something Ed McNeil with AFSCME said is a serious problem, especially considering his workers could be forced to make tough concessions.

"You've got all these consulting contracts that continue to triple while the city is being crippled in a financial state," he said.

Even some Detroit City Council members are asking tough questions.

"We've constantly asked show us some work product, give us an update on what the consultants are doing. We don't know what the consultants are doing right now," said Saunteel Jenkins.

"You're saying that this is a broke city. I have not seen any work that the restructuring companies have done," Jones said.

However, others say consultants like Ernst and Young and Conway MacKenzie are doing a lot of work guiding Detroit through a financial crisis unlike any the city has ever faced.

"We need to make sure that we have the best attorneys in the world and the best accountants in the world that are working for the City of Detroit to make sure that we protect our assets and that we're represented in this process. Otherwise, they're going to clean our clock," said Bill Nowling, the emergency manager's spokesperson.

"Just think about it. If they can shave off a billion dollars in debt, I don't think anyone's going to ask about how much we paid for the consultants," said Council President Pro Tem Gary Brown.

"If you talk to the city employees and you talk to the folks who actually on the ground who do the work, I think that you could minimize your expenditures. They have not done that," McNeil said.

"Let's wait and see what the final results are before we judge the outcomes of what the consultants are doing," Brown said.

  • Local NewsLocal NewsMore>>

  • Outdoor basketball courts losing popularity

    Outdoor basketball courts losing popularity

    Friday, July 25 2014 8:35 AM EDT2014-07-25 12:35:16 GMT
    Believe it or not this, some say New York's outdoor basketball courts are a dying entity. Even Rucker Park in Harlem -- where Dr. J and countless others honed their skills -- used to be standing room only all times of the day. Now there's plenty of room to stand on most days.Basketball programs like one at Chelsea Piers are gaining popularity. That means the place to hoop it up for many appears to be indoors.
    Believe it or not this, some say New York's outdoor basketball courts are a dying entity. Even Rucker Park in Harlem -- where Dr. J and countless others honed their skills -- used to be standing room only all times of the day. Now there's plenty of room to stand on most days.Basketball programs like one at Chelsea Piers are gaining popularity. That means the place to hoop it up for many appears to be indoors.
  • Hot air balloon festival in New Jersey

    Hot air balloon festival in New Jersey

    Friday, July 25 2014 7:55 AM EDT2014-07-25 11:55:32 GMT

    The largest summertime hot air balloon and music festival in North America is taking place in New Jersey.  The 32nd annual QuickChek New Jersey Festival takes place from Friday, July 25th to Sunday, July 27th in Readington. The festival features more than 100 hot air balloons from around the world.

    The largest summertime hot air balloon and music festival in North America is taking place in New Jersey.  The 32nd annual QuickChek New Jersey Festival takes place from Friday, July 25th to Sunday, July 27th in Readington. The festival features more than 100 hot air balloons from around the world.

  • Manhattan nursery school uses sanitizing machine to keep air clean

    Manhattan nursery school uses sanitizing machine to keep air clean

    Friday, July 25 2014 7:50 AM EDT2014-07-25 11:50:43 GMT
    All of us feel the same way about "cooties": Eww. At the Goddard School on the Upper West Side, a high-tech machine is keeping "cooties" out of the classroom. "This is the latest and then most effective sanitization method available today," says Bill Swan, the owner of the Goddard School. He purchased the ZONO Sanitech for his school about six months ago. The machine is the size of a double refrigerator and uses oxygen to kill viruses and bacteria.
    All of us feel the same way about "cooties": Eww. At the Goddard School on the Upper West Side, a high-tech machine is keeping "cooties" out of the classroom. "This is the latest and then most effective sanitization method available today," says Bill Swan, the owner of the Goddard School. He purchased the ZONO Sanitech for his school about six months ago. The machine is the size of a double refrigerator and uses oxygen to kill viruses and bacteria.
Powered by WorldNow
Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | Terms of Service | Ad Choices