Nagin dining on taxpayer money

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Mayor Ray Nagin
Mayor Ray Nagin

12 June 2008 Critics of Mayor Ray Nagin have finally received some insight into his use of city credit cards - during the period of September 2007 - January 2008, Nagin charged $6,628 in meals to the taxpayers of New Orleans. The records, however, remain grossly incomplete as their is little to no documentation on who attended the 70 meals and for what purpose. The few details to emerge have come mostly by matching up receipts with Nagin's planner. This has shown the Mayor to have taken his wife out at least three times using his card - once on their wedding anniversary.[1]

Contents

(Some) Charges Explained

In a six month period, total city credit card debt reached nearly $180,000. Of this total, about two-thirds can be attributed to Nagin and two of his aides, Ceeon Quiett and Kenya Smith.

With criticism rising, the administration released documentation for the charges - except for Nagin, Quiett, and Smith. The documents released, however, still fail to paint a complete picture of just where exactly taxpayer money is going. Records vary greatly, from Finance Director Reggie Zeno, who itemized everyone at meals and what they ordered, to former executive council Becca O'Brien who only once listed a meal as having a business purpose, and never documented who attended.

Nagin and Quiett have not responded about documentation of their charges, while Smith continues to defend his charges as legitimate business expenses, but still has not provided proof of that.

City Credit Card Rules

New Orleans does not have clear cut rules outlining the proper usage of city credit cards. Quiett had previously referenced policy memos from the late 1990s, but they mostly deal with employee travel and entertainment expenses. The memo does clearly state the necessity of documentation though, "Bills, receipts and other documents must be checked for accuracy before payment or acceptance...Reimbursement should be requested only for reasonable and necessary official expenses."[2]

The city credit card charges include $1,420 for a "holiday brunch," $2,376 from Martin's Wine Cellar, and a party at Ray's Over the River nightclub for $2,800.

Transparency?

Criticism far and wide has not yet pushed the administration to release all of their records. As Kevin Kane of the government watchdog group The Pelican Institute stated, "It certainly raises eyebrows when this information comes out. Taking his wife out to lunch or dinner. What's the answer to this?"[3]

Fieklow asks for Review

In response to the news, Arnie Fielkow, Vice President of the New Orleans City Council, asked that Inspector General Robert Cerasoli's office review the city's current policy expense and reimbursement policy. Cerasoli said that this would be placed on a growing list of requests for his office, stating, "I don't know when I'm going to get to it but when I do I'll make a recommendation of policies that should be in place to the council. There are so many things like this going on in the city. This is one small thing...There are other issues that are much more important."[4]

Nagin to reimburse one lunch

During a scheduled appearance on Fox 8 on June 26, Nagin said he would reimburse the city for the anniversary lunch he shared with his wife Seletha. Referring to her as "a close advisor," he said it is nearly impossible for them to be in public without discussing city issues with someone. To that end, the anniversary lunch was "an oversight," while the other lunches contained "city business" discussions, which he says are justified expenses.[5]


References

  1. The Times-Picayune , Lunch is on Us, June 12, 2008
  2. The Times-Picayune , Lunch is on Us, June 12, 2008
  3. WDSU New Orleans, Nagin Scrutinized for Spending, June 12, 2008
  4. New Orleans City Business, Fielkow asks IG to review city credit card policy, June 23, 2008
  5. Rush Radio 99.5FM, Nagin Will Reimburse City For 1 of 3 Lunches With Wife, June 26, 2008