The Register Citizen (Torrington, CT)
Big N.J. water agency failed in scandal when Booker was mayor
Months after Cory Booker took office as mayor of Newark, New Jersey, he cleared the way for his former campaign treasurer and law partner Elnardo Webster to wield influence at the nonprofit that supplied water to the city.
Over the next seven years, Booker’s allies and others squandered millions of dollars in public money at the nonprofit through kickbacks and embezzlement, bogus contracts, risky investments and excessive pay, according to investigations, criminal trials and federal testimony. The organization ultimately went under, nine employees and contractors were indicted and city money was wasted that could have helped fix some of Newark’s aging water infrastructure.
By his account, Booker, then the nonprofit’s exofficio chairman, was in the dark as the corruption went on, the organization’s budget rapidly escalated and concerned citizens started sounding alarms about questionable contracts that went to the mayor’s supporters. He has expressed outrage at the wrongdoing and largely placed the blame on a small group of employees and contractors. But critics say Booker, who never attended any of its board meetings, missed red flags.
As a Democratic presidential candidate, Booker has leaned heavily on his record as Newark mayor, saying he helped deliver more jobs, housing and fresh food to its lowincome residents. He has painted himself as a reformer who worked to limit the influence of money in politics. But the watershed scandal still burns some of his critics in New Jersey, who say it shows that Booker can be an inattentive manager and that at times he relied on machine politics that had long made Newark a hotbed for corruption.
“He may be gone, but it’s not forgotten,” says Guy Sterling, a local historian who called the scandal the biggest in Newark in the last 50 years.
It’s coming back into focus as Newark officials address a growing crisis involving high levels of lead in drinking water and as Booker seeks to break into the top tier of presidential candidates. The lead problems developed after he left office, but critics say the corruption that happened on his watch contributed to neglect of the water system.
A lawsuit and a criminal case stemming from the nonprofit’s demise are still unfolding. They could renew questions about whether Booker knew or should have known about the problems at the nonprofit, which was contracted to operate the city’s water treatment and distribution system and manage its fresh water reservoirs in northern New Jersey.
Booker’s campaign spokeswoman Sabrina Singh defended his record.
“Despite portrayals by critics to the contrary, Cory Booker faithfully executed his duties as they related to the Watershed, where a small group of employees and contractors conspired to conceal their criminal enterprise so effectively that accountants and even independent auditors didn’t discover the fraud,” she said.
A state investigation blasted Booker and his administration for failing to exercise oversight over the group’s operations.
There is no evidence Booker received any personal financial benefit, but he and his city council allies received tens of thousands of dollars in campaign donations from the group’s employees and contractors. Booker’s former law firm — which was paying him under a stillconfidential buyout agreement — was paid by the nonprofit for services that would later be criticized as inadequate.
Soon after Booker became mayor, Webster, his former campaign aide and law partner, authored a November 2006 memo recommending new watershed board members. The memo, written on law firm letterhead that still listed Booker as a partner, advised the mayor to appoint a businessman who had played college football with Webster. Also, the son of a campaign adviser and others.
Booker’s appointments followed many of Webster’s recommendations. The new board hired Webster and the Trenk DiPasquale law firm to serve as the watershed’s general counsel. The arrangement paid Webster $225 per hour and generated more than $1 million in legal fees over five years.
Booker had left the law firm months before its hiring, saying he wanted to avoid any conflicts as mayor. But he was still paid up to $150,000 annually under the buyout agreement.