Thursday, November 18, 2004

L.A. Ratepayers paid for Political Advice

Did ratepayers of Los Angeles Department and Water and Power pay for political consulting on behalf of Mayor Hahn?

Public relations firm Fleishman-Hillard — which has been accused of overcharging the Los Angeles Department of Water and Power by $4.2 million — was in regular contact with Mayor James K. Hahn's office as it was allegedly bilking the department.

City Controller Laura Chick, who issued an audit critical of Fleishman, released billing records Wednesday showing that the firm's employees held lengthy meetings with the mayor's deputies while the DWP was charged thousands of dollars for those consultations.

Fleishman also worked with the mayor's office to plan news conferences that featured Hahn, the records showed.

And the firm wrote speeches and news releases for the mayor about DWP announcements and other media events, including Hahn's much-publicized 2002 trip to Asia.

"Were they doing work for DWP and getting paid by DWP? Or were they doing work for the mayor and getting paid by DWP?" Chick asked Wednesday.

At a time when LADWP is asking fo an 11% rate increase and struggling to invest further in clean-burning natural gas generation and green power, such abuses of power are unacceptable.