Consultants benefiting from Detroit's cash crisis - My29 WFTC Minneapolis-St. Paul

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>>

  • Child, 3, hospitalized after falling from second-story window

    Child, 3, hospitalized after falling from second-story window

    Monday, September 1 2014 11:31 PM EDT2014-09-02 03:31:18 GMT
    A 3-year-old child is receiving treatment at St. John hospital after falling from a second-story window in Detroit this weekend.
    A 3-year-old child is receiving treatment at St. John hospital after falling from a second-story window in Detroit this weekend.
  • Boy, 5, thrown from father's dirt bike and run over

    Boy, 5, thrown from father's dirt bike and run over

    Monday, September 1 2014 11:18 PM EDT2014-09-02 03:18:50 GMT
    Residents inside Northport Apartments in Macomb Township say that Sunday afternoon they saw a 27-year-old neighbor riding a dirt bike with his 5-year-old son along busy Garfield Road.Neighbors say they've seen him riding before -- but this time he had his child with him."The first thing that caught my eye was he was riding in his dad's lap," neighbor Tim Hale said. "And they were weaving throughout drainage ditches which are pretty steep." Macomb County sheriffs say the small, orange dirt bik...
    Residents inside Northport Apartments in Macomb Township say that Sunday afternoon they saw a 27-year-old neighbor riding a dirt bike with his 5-year-old son along busy Garfield Road.Neighbors say they've seen him riding before -- but this time he had his child with him."The first thing that caught my eye was he was riding in his dad's lap," neighbor Tim Hale said. "And they were weaving throughout drainage ditches which are pretty steep." Macomb County sheriffs say the small, orange dirt bik...
  • Flooding, power outages from latest round of storms

    Flooding, power outages from latest round of storms

    Monday, September 1 2014 10:14 PM EDT2014-09-02 02:14:26 GMT
    More flooding and power outages are being reported after the latest batch of storms.
    More flooding and power outages are being reported after the latest batch of storms.
Powered by WorldNow

WFTC-TV
11358 Viking Drive
Eden Prairie, MN 55344

Phone: (952) 944-9999
Fax: (952) 942-0455

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