Pa. Official: Corruption Led to Harrisburg's Money Woes

Thursday, 22 Mar 2012 05:10 AM

By Sandy Fitzgerald

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
Harrisburg’s financial crisis is the result of years of schemes, scams, and corruption, said a state-appointed receiver David Unkovich, who is working to implement a plan to pay down the Pennsylvania capital’s multi-million dollar debt, according to the Patriot-News.
 
“The city has been mismanaged for 20 years,” said Unkovich, testifying Wednesday at a hearing to answer a lawsuit filed over the plan. “It’s all a house of cards, and now the house of cards is coming down.”
 
The state is handling Harrisburg’s finances, after city leaders last October filed for bankruptcy protection when Harrisburg failed to pay its debts on an unprofitable trash-to-energy incinerator conversion.
 
A commonwealth court judge approved the state’s plan for reducing the incinerator debt and balancing the capital’s budget on March 9, over Harrisburg officials’ protests.
 
Meanwhile, three community activists, hoping to block the plan, named Unkovich and Gov. Tom Corbett in a lawsuit, claiming Unkovich’s appointment itself is unconstitutional and the state’s recovery proposal works against Harrisburg’s black residents. 
 
According to its bankruptcy filing, Harrisburg needs $310 million to make bond payments, restructure debt, and repay its home county and Hamilton, Bermuda-based insurer Assured Guaranty Municipal Corp., which made the payments the city stopped making on the waste-to-energy facility.

© 2014 Newsmax. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Buffalo Residents Urged to Prepare for Flooding

Sunday, 23 Nov 2014 08:58 AM

Buffalo is making significant progress clearing streets still clogged from an epic storm left more than 7 feet of snow e . . .

Obama, Jeter Tee off on Exclusive Vegas Course

Sunday, 23 Nov 2014 07:47 AM

President Barack Obama is playing golf at an exclusive Las Vegas-area course with a retired shortstop, a Democratic Part . . .

Shifting Attitudes at Play in Cosby Allegations

Sunday, 23 Nov 2014 07:10 AM

Tamra Wade struggled mightily over whether to go to the police more than a decade ago, when, she says, a trusted profess . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved