Sheriff probing job training agency

 

THE FLINT JOURNAL FIRST EDITION

Wednesday, August 15, 2007

By Ron Fonger

 

rfonger@flintjournal.com • 810.766.6317

 

FLINT - The Genesee County Sheriff's Department is investigating whether crimes were committed at Career Alliance Inc., the troubled nonprofit agency responsible for local job training programs.

 

Sheriff Robert Pickell confirmed that an investigator from his office visited Career Alliance's Flint headquarters Monday but would not discuss what the probe concerns.

 

"My only comment is that the investigation is ongoing," Pickell said.

 

The Flint Journal could not reach Mike Zelley, chairman of the Genesee-Shiawassee Workforce Development Board, for comment Monday or Tuesday.

 

Craig Coney, interim president and chief executive officer of Career Alliance, referred questions to Zelley, saying he wasn't in the building when police showed up.

"I don't know what questions were asked or what they (took)," Coney said. "I did talk with Mr. Zelley about that last night. He has instructed me to refer all media requests to him."

 

A source familiar with the investigation said the sheriff's office is reviewing documents from Career Alliance and has requested other information from the agency.

 

Although Pickell would not discuss his investigation, a letter to the sheriff from county Board of Commissioners Chairman Archie Bailey, D-Flushing, in early July suggested Pickell has a broad jurisdiction, including the freedom to investigate any activity even tangentially related to Career Alliance.

 

Bailey's letter, obtained by The Journal through the Freedom of Information Act, suggests Career Alliance used a non-competitive process to purchase a telephone system valued at more than $117,000 last year.

 

"A consultant was obtained to evaluate the existing the Career Alliance telephone system and to determine the telephone system the agency may have needed," Bailey's letter says. "A new system was recommended ... from the consultant's company."

 

The letter suggests an executive for one company that benefited from the purchase may be related to a Career Alliance administrator.

Bailey would not comment further on the issue Tuesday.

 

Career Alliance has been scrutinized by state monitors at the Department of Labor & Economic Development for years for its lack of documentation in credit card spending, non-competitive procurement process and other business practices.

 

In June, the director of DLEG said he was "gravely concerned" about the agency's condition. Later that month, the Workforce Development Board put Pam Loving, Career Alliance's president and CEO, on paid administrative leave.

 

Since then, officials from Genesee and Shiawassee counties, the Workforce Development Board and Career Alliance have worked with the state to resolve nine of 27 pending issues with the state.

DLEG also questioned Career Alliance administrators about the purchase of the telephone system without state approval, without a formal bid process and because it used a vendor with an unfair competitive advantage.

 

State officials resolved their issues regarding the phone system after Career Alliance added assurances to its procurement polices that it will obtain prior approval from DLEG for future equipment purchases of $25,000 or more, according to state records.

 

Career Alliance also agreed to use formal procurement procedures when spending $25,000 or more in the future and to exclude vendors or subrecipients of grants that have an unfair competitive advantage. 

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© 2007 Flint Journal. Used with permission

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