• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

New Jersey Attorney General's Office Investigates Port Corp. Contract

Posted on: Wednesday, 31 August 2005, 21:00 CDT

Aug. 31--The New Jersey Attorney General's Office has subpoenaed records from the South Jersey Port Corp. and two public relations companies that have been paid more than $360,000 by that agency over the last three years.

The subpoenas, issued over the last 10 days, are part of an investigation into questionable financial dealings of the Camden-based, state-established corporation, according to law enforcement officials familiar with the probe.

Investigators have asked for all records and documents related to a marketing and public relations contract held jointly by River Front Associates and Phoenix Strategies, firms owned by two former newspaper reporters.

The contract, which calls for a monthly payment of $10,000, was awarded in 2002 and has been renewed annually.

Dennis Culnan, the president of Phoenix, confirmed yesterday that he and Carl Zeitz, the president of River Front, had received subpoenas for records and documents related to the marketing contract.

An official with the port corporation said that a subpoena had been served there for the same information.

Culnan, who said he was speaking for both himself and Zeitz, said they would supply investigators with all the information that has been requested.

"The truth works," said Culnan, a former reporter with the Courier-Post who has built a career as a public affairs consultant over the last 15 years.

Culnan, whose Phoenix Strategies is based in Mount Laurel, is a political ally of Democratic Party power broker George Norcross III. Since leaving his job as a reporter, he has done public relations work and opposition research for the South Jersey Democratic machine.

In addition to the contract with the port corporation, Culnan's company has had a contract with the Republican-controlled Burlington County Bridge Commission and has one with Cooper Health Systems in Camden, where Norcross is vice chairman of the board of trustees.

Zeitz, a former reporter with the Associated Press, served on the New Jersey Casino Control Commission before starting his own marketing and public relations firm, based in Trenton.

Culnan said the thrust of the subpoena was, "How did you get the contract, and what do you do" to earn your money?

He said he and Zeitz jointly submitted a proposal when the contract was put out to bid in 2002. Four companies sought the work, which was awarded to River Front and Phoenix, Culnan said.

The contract has been renewed each year since it was initially awarded, port corporation officials said.

Culnan said that under the contract, River Front and Phoenix have been involved in all aspects of marketing and public relations for the port corporation. These range from producing newsletters, news releases, annual reports, and promotional brochures to developing marketing strategies to attract new tenants and customers for the port.

Questions about the contract were first raised earlier this year in preliminary findings by auditors with the New Jersey Office of Legislative Services. The findings were part of a auditing process in which all government agencies are periodically examined.

Those findings, however, are being reviewed by state auditors after a number of inaccuracies were pointed out by port corporation officials, Michael Angelini, the solicitor for the port corporation, said yesterday.

"We looked at it," Angelini said of a draft of the audit report state officials submitted to the port corporation earlier this month. "We disagreed with much of what it contained."

State auditors confirmed yesterday that they were finishing an audit after receiving responses from the port corporation to some of their initial findings.

Both sides concede there may be some confusion over the regulations that govern the port corporation with regard to financial controls.

The state's preliminary findings also raised questions about fringe benefits, vacation pay, and reimbursements to Joseph Balzano, the $140,500-a-year director of the port corporation, according to individuals familiar with the audit process.

The port corporation controls and promotes the development of port facilities along the Delaware River from Mercer to Cape May Counties. It is based in the former South Jersey Shipyard in Camden.

Balzano has worked for the port corporation for 50 years, serving as executive director since 1988.

He declined to comment yesterday, referring questions to the port corporation board and its solicitor.

The board held its regular monthly meeting yesterday. During an executive session, directors were informed about the flap over the state auditing process, Angelini said.

By George Anastasia and Maureen Graham

-----

To see more of The Philadelphia Inquirer, or to subscribe to the newspaper, go to http://www.philly.com.

Copyright (c) 2005, The Philadelphia Inquirer

Distributed by Knight Ridder/Tribune Business News.

For information on republishing this content, contact us at (800) 661-2511 (U.S.), (213) 237-4914 (worldwide), fax (213) 237-6515, or e-mail reprints@krtinfo.com.

Source: The Philadelphia Inquirer

More News in this Category