Bennett Report

Confidential

Council of the District of ColumbiaContracts and Grants

Report of InvestigationPursuant to D.C. Council Resolution 18-217

Submitted bySpecial CounselRobert S. BennettHogan & Hartson LLPDeputy Special CounselAmy R. SabrinSkadden, Arps, Slate, Meagher & Flom LLP

February 16, 2010

i

TABLE OF CONTENTSPage

I. INTRODUCTION...........................................................................................................1A. Genesis of Investigation.......................................................................................1B. The D.C. Council Acts: Resolution 18-217..........................................................3II. SCOPE OF INVESTIGATION .......................................................................................5A. Methodology........................................................................................................5B. Depositions and Interviews ..................................................................................7C. Document Collection and Review........................................................................7III. SUMMARY OF KEY FINDINGS, CONCLUSIONS, ANDRECOMMENDATIONS.................................................................................................8A. Personal Services Contract to Donna Watts-Brighthaupt ......................................81. Factual Findings.......................................................................................92. Conclusions............................................................................................103. Recommendations Regarding Personal Services Contracts.....................10B. Council Earmark Grants.....................................................................................111. Factual Findings.....................................................................................112. Conclusions............................................................................................123. Recommendations..................................................................................13C. Mr. Barry’s Efforts to Impede Special Counsel’s Investigation...........................13IV. LAWS AND RULES OF CONDUCT AFFECTING D.C. COUNCILMEMBERS...................................................................................................................14A. Conflict of Interest Laws and Standards of Conduct...........................................141. D.C. Statutes and Regulations.................................................................142. Council Rules.........................................................................................19B. Statutes and Regulations Governing Citizen-Service Programs ..........................20V. PERSONAL SERVICES CONTRACTS.......................................................................21A. Overview of Council Personal Services Contracts..............................................21B. District Laws and Council Rules, Policies, and Procedures Relevant toPersonal Services Contracts ...............................................................................23C. Factual Findings and Conclusions Regarding Council Member Barry’sUse of Personal Services Contracts....................................................................241. Donna Watts-Brighthaupt’s Personal Services Contract..........................26(a) Factual Findings..........................................................................27(b) Conclusions ................................................................................392. Brenda Richardson’s Personal Services Contracts...................................403. The Bowen Group, LLC’s Personal Services Contract............................42D. Other Personal Services Contracts......................................................................44VI. COUNCIL EARMARK GRANTS ................................................................................45A. Overview of Council Earmark Grants.................................................................45B. Council Earmark Funding for FY 2009..............................................................46C. Earmark Grants Sponsored by Council Member Barry.......................................501. Factual Findings.....................................................................................51

ii(a) The Ward Eight Councils Were Conceived by CouncilMember Barry.............................................................................51(b) Corporate Documents for the Ward Eight Councils WereFalsified, and Funds from an Unrelated ScholarshipAccount Were Used to Pay Their Corporate Filing Fees..............53(c) Council Member Barry Directed Certain Actions of theCouncils......................................................................................59(d) A Handful of Barry Supporters Benefited Financially fromthe Councils and Other Grantees.................................................61(i) Brenda Richardson..........................................................62(ii) Sharon Wise and Darryl Colbert......................................64(iii) Rev. Anthony Motley......................................................68(iv) Tanya Blue......................................................................72D. Conclusions .......................................................................................................74E. Oversight of Earmark Grants..............................................................................751. Lack of Consultation Prior to Grant Award.............................................772. Robust Oversight Was Inhibited by the Fact of Council MemberSponsorship............................................................................................783. The Agencies Often Did Not Have a View Across Multiple Grants........794. The Agencies Did Not Apply Uniform Standards to Grantees.................795. Office of Partnerships and Grant Services Sourcebook...........................80VII. COUNCIL MEMBER BARRY FAILED TO COOPERATE FULLY WITH THECOUNCIL’S INVESTIGATION AND ATTEMPTED TO IMPEDE THATINQUIRY......................................................................................................................81A. Factual Findings.................................................................................................821. Council Member Barry Declined to Answer Questions SeekingInformation Relevant and Material to the Subject Matter of theCouncil’s Inquiry....................................................................................822. Council Member Barry Attempted to Dissuade a Material Witnessfrom Providing Relevant and Material Information to SpecialCounsel..................................................................................................84B. Conclusions .......................................................................................................93VIII. SPECIAL COUNSEL’S RECOMMENDATIONS........................................................93A. Recommendations Regarding the Conduct of Council Member Barry................93B. Reforms to Procedures Governing Personal Services Contracts..........................96C. Recommendations Regarding Council Earmark Grants......................................97D. Enhancements to the Council’s Ethics Regime.................................................100