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>>

  • Crash in Lincoln Tunnel causes major delays

    Crash in Lincoln Tunnel causes major delays

    Tuesday, September 2 2014 3:06 PM EDT2014-09-02 19:06:51 GMT
    One of the tubes of the Lincoln Tunnel was closed for nearly four hours after a chain-reaction accident involving a New York-bound jitney bus and two other vehicles. Port Authority of New York and New Jersey spokesman Steve Coleman says three people were reported injured in the accident in the center tube at about 8:30 a.m. Tuesday.
    One of the tubes of the Lincoln Tunnel was closed for nearly four hours after a chain-reaction accident involving a New York-bound jitney bus and two other vehicles. Port Authority of New York and New Jersey spokesman Steve Coleman says three people were reported injured in the accident in the center tube at about 8:30 a.m. Tuesday.

  • $1M Powerball ticket sold in NJ set to expire

    $1M Powerball ticket sold in NJ set to expire

    Tuesday, September 2 2014 2:23 PM EDT2014-09-02 18:23:45 GMT
    State lottery officials say a Powerball ticket worth $1 million that was sold at a northern New Jersey convenience store last year will soon expire.
    State lottery officials say a Powerball ticket worth $1 million that was sold at a northern New Jersey convenience store last year will soon expire.
  • Princeton worker told to choose medical pot or job

    Princeton worker told to choose medical pot or job

    Tuesday, September 2 2014 2:19 PM EDT2014-09-02 18:19:48 GMT
    A Princeton University employee says he has been told to choose between medical marijuana and his job.
    A Princeton University employee says he has been told to choose between medical marijuana and his job.
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 | New Terms of Service What's new | Ad Choices