San Francisco Chronicle

S. F. official Kelly resigns

Administra­tor’s spouse charged in bribe scandal

- By Megan Cassidy and Dominic Fracassa

San Francisco City Administra­tor Naomi Kelly, the city’s highestran­king nonelected official, will resign Feb. 1, she told Mayor London Breed on Tuesday, weeks after federal prosecutor­s implicated her husband in an expanding City Hall corruption scandal.

Kelly started a sixweek leave of absence last month to focus on her family after prosecutor­s charged her husband, former San Francisco Public Utilities Commission chief Harlan Kelly, with accepting bribes from a contractor.

Prosecutor­s have not charged Naomi Kelly with a crime. The criminal complaint against her husband alleges she attended a 2016 family vacation that federal investigat­ors believe was intended as a bribe for Harlan Kelly.

In a letter Tuesday to Breed, Naomi Kelly said she was stepping down “in light of the recent allegation­s, based on the false statements of an admitted liar.”

The statement is a reference to Walter Wong, a construc

tion company executive and permit consultant who has pleaded guilty to his role in a pay-to-play scheme and has since implicated Harlan Kelly, according to federal investigat­ors.

Naomi Kelly said she was “deeply saddened” to resign while her office leads the city’s logistical response efforts to the COVID19 pandemic.

“However, I know that this is the right decision for San Francisco, for my family, and especially for my two children who have been devastated by these allegation­s,” she wrote.

First appointed in 2012 by then Mayor Ed Lee, Naomi Kelly will become the fifth city department head to step down or resign amid an expanding City Hall corruption scandal.

Naomi Kelly oversees 25 department­s, approximat­ely 2,700 employees and an annual budget of nearly $ 750 million.

In her letter, she listed her accomplish­ments, recalling how she climbed the ranks from legislativ­e analyst to city administra­tor and became the first African American and first woman to serve in the role.

Without specifical­ly addressing her husband’s case, Naomi Kelly suggested in her letter that she would deny any wrongdoing.

“Public service is ... a sacred trust and a sacred task, a profound responsibi­lity,” she said. “And make no mistake, I have held up my end of this covenant.”

Harlan Kelly’s attorney has denied the allegation­s and vowed to take the case to trial.

Officials with Breed’s office did not respond to requests for comment on Tuesday evening.

Deputy City Administra­tor Ken Bukowski assumed the role as acting city administra­tor last month when Naomi Kelly took leave and will continue to head the department. Breed will later nominate a successor, who will then need to be confirmed by the Board of Supervisor­s.

Naomi Kelly is the latest person to fall in a multiprong­ed bribery scheme that was first made public last year with the arrest of former San Francisco Public Works Director Mohammed Nuru. Nuru, who resigned in February, was charged with fraud in connection with an alleged attempt to bribe an airport commission­er.

The case touched off what has since been a dizzying web of allegation­s involving topranking city officials and contractor­s bidding for lucrative city work.

Harlan Kelly resigned as the general manager of the San Francisco Public Utilities Commission in November after the FBI raided his and Naomi Kelly’s home, and prosecutor­s charged him with accepting bribes.

Along with the Kellys and Nuru, the scandal has also prompted the departures of Tom Hui, former Department of Building Inspection director accused of accepting gifts and meals from Wong, and Sandra Zuniga, former FixIt director charged with money laundering.

The case against Harlan Kelly centered around Wong, a constructi­on company executive and permit consultant who ran or controlled multiple entities doing business with San Francisco.

Officials said Wong paid for an expensive family vacation to Hong Kong for the Kellys in 2016, a tab that included jewelry, meals, plane tickets and hotel rooms. At the same time, Wong was seeking a multimilli­ondollar contract from the PUC to renovate city streetligh­ts.

While prosecutor­s did not level allegation­s against Naomi Kelly in the complaint against her husband, officials suggested that she may have misled investigat­ors who interviewe­d her about the trip.

Naomi Kelly told FBI agents that she “paid Wong a lot of money for the trip,” a claim not backed up by the Kellys’ bank records, the complaint states.

Harlan Kelly had also tapped Wong for renovation work on the couple’s Inner Sunset property. Brian Getz, Harlan Kelly’s attorney, previously told The Chronicle that his client “paid fair market value for this work — if anything, he may have been overcharge­d by Mr. Wong’s firm.”

Wong has been cooperatin­g with the federal government and has since pleaded guilty to conspiraci­es to commit honest services fraud and money laundering.

Harlan Kelly is free on a $ 200,000 bond while awaiting trial. His next court appearance is scheduled for Feb. 2.

 ?? Jessica Christian / The Chronicle 2020 ?? San Francisco City Administra­tor Naomi Kelly, whose husband has been charged with accepting bribes, officiates a wedding in City Hall in 2020. Kelly notified Mayor London Breed that she would leave her post effective Feb. 1.
Jessica Christian / The Chronicle 2020 San Francisco City Administra­tor Naomi Kelly, whose husband has been charged with accepting bribes, officiates a wedding in City Hall in 2020. Kelly notified Mayor London Breed that she would leave her post effective Feb. 1.

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