in Houston, Texas

City using Bracewell & Giuliani law firm to examine airport spinoff; mayor's aide still overseeing probe, city says

files/2009/07/airplane1.jpg
Saturday, Jul 25, 2009, 12:59AM CST
By Steve Miller
The city has brought on international law firm Bracewell & Giuliani to examine the financial records of the city-approved nonprofit arm of the Houston Airport System, a spokesman from the mayor's office said Friday.

The scrutiny is part of the city's continuing review of the airport nonprofit -- HAS Development Corp. -- which may have spawned as many as nine spinoffs, some of which are incorporated off-shore.

The choice of Houston-based Bracewell gives the city a solid investigative body. It's a firm that has a background in, among other things, international law, internal investigations and white collar crime.

The firm will analyze audited statements and tax forms of HASDC, and the review is still scheduled to be completed by the end of the summer. The mayor called for the investigation in May after the abrupt resignation of airport chief Richard Vacar.

The audited statements were turned over to the mayor's office June 26, although the mayor's office asserted until last week that it did not have them.

Also on Friday, Mayor White spokesman Pat Trahan said the city's Chief Administrative Officer Anthony Hall is "still over the review," a change from previous information he provided.

Trahan told Texas Watchdog Wednesday: "For Mr. Hall to do this would be a conflict of interest," Trahan said. "Anthony is not doing the review."

In an interview Friday, however, Trahan said "if I misspoke... then there was a miscommunication" when he related the status of Hall.

Trahan said that when he spoke to Texas Watchdog of a conflict of interest he was referring to a May 24 column in The Houston Chronicle in which reader posted a comment and used the term "conflict of interest" when describing the sharing of employees between the city's airport system and the HASDC.

The Texas Watchdog reporter taking notes during this interview does not recall the Chronicle even being mentioned at all during the interview. Texas Watchdog stands by its reporting.

Hall had signed off on the Houston airport CEO taking at least one trip on the taxpayer's dime that appears to have aided HASDC.

Questions? Comments? Call Texas Watchdog editor Trent Seibert at 615-289-9549 or 713-9809-9776 or e-mail him at trent@texaswatchdog.org.

Photo of an airplane by flickr user davipt, used via a Creative Commons license.
Comments
g
Sunday, 07/26/2009 - 09:48AM

These are very interesting articles on this airport business. This Trahan fellow seems to either be totally misinformed and making things up as he goes along, or lying to you on purpose. Why is the Mayor, who loves to talk, not granting you an interview on this matter? Is Mr. Hall? The Interim HAS Director? The City Attorney? Why are none of these public officials directly speaking on this matter?

First Trahan says the Mayor can't get the financial records. Then it turns out that the Mayor, or some reviewers have them. Maybe the Mayor really couldn't get them. Then after making the Mayor look like their b***h, HASDC relented to the pressure, and in the letter to the City Controller they say that the records were provided to the Mayor on June 26. Bill White came to office claiming businessman cred and wants to be senator, but in this case either his underlings totally played him, or he knew and approved or ignored the actions of HASDC's little enterprisers. Neither one of these options put him in a positive light.

Then there's Hall. First he is reviewing HASDC, then he's not, then he's in again, then... This stinks more and more each passing day. Congratulations on being the last real journalists left standing in Houston. All other media outlets, particularly the Houston Chronicle, seem to be in la-la land. I guess they are waiting for you to do all the work, then come in with breaking news if any heads roll.

Jennifer Peebles
Sunday, 07/26/2009 - 11:30AM

G,

Welcome to our site. Thanks for reading us and for taking time to write in. :)

Take care,

Jennifer P.

jennifer@texaswatchdog.org

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