Consultants benefiting from Detroit's cash crisis - FOX 35 News Orlando

Consultants benefiting from Detroit's cash crisis

Posted: Updated:
City of Detroit City of Detroit
DETROIT (WJBK) -

While the emergency manager scrambles to keep Detroit out of bankruptcy, there are others who are cashing in on the city's money crisis.

"We have approved over $17 million worth of restructuring contracts," said Detroit City Council Member Brenda Jones.

That is something Ed McNeil with AFSCME said is a serious problem, especially considering his workers could be forced to make tough concessions.

"You've got all these consulting contracts that continue to triple while the city is being crippled in a financial state," he said.

Even some Detroit City Council members are asking tough questions.

"We've constantly asked show us some work product, give us an update on what the consultants are doing. We don't know what the consultants are doing right now," said Saunteel Jenkins.

"You're saying that this is a broke city. I have not seen any work that the restructuring companies have done," Jones said.

However, others say consultants like Ernst and Young and Conway MacKenzie are doing a lot of work guiding Detroit through a financial crisis unlike any the city has ever faced.

"We need to make sure that we have the best attorneys in the world and the best accountants in the world that are working for the City of Detroit to make sure that we protect our assets and that we're represented in this process. Otherwise, they're going to clean our clock," said Bill Nowling, the emergency manager's spokesperson.

"Just think about it. If they can shave off a billion dollars in debt, I don't think anyone's going to ask about how much we paid for the consultants," said Council President Pro Tem Gary Brown.

"If you talk to the city employees and you talk to the folks who actually on the ground who do the work, I think that you could minimize your expenditures. They have not done that," McNeil said.

"Let's wait and see what the final results are before we judge the outcomes of what the consultants are doing," Brown said.

  • Local NewsLocal NewsMore>>

  • Dealing with parental separation anxiety

    Dealing with parental separation anxiety

    Monday, September 1 2014 8:53 PM EDT2014-09-02 00:53:27 GMT
    While many think of children when it comes to separation anxiety, it can be as bad or worse for parents.In particular, separation anxiety hits hardest for parents sending their kids off to college.
    While many think of children when it comes to separation anxiety, it can be as bad or worse for parents.In particular, separation anxiety hits hardest for parents sending their kids off to college.
  • Victims shot and killed on Detroit's west side identified

    Victims shot and killed on Detroit's west side identified

    Monday, September 1 2014 7:42 PM EDT2014-09-01 23:42:19 GMT
    Two families are grieving after the bodies of a young man and woman were found in the street Sunday morning on Detroit's west side. Both were shot and killed.
    Two families are grieving after the bodies of a young man and woman were found in the street Sunday morning on Detroit's west side. Both were shot and killed.
  • Two hospitalized after crashing stolen Corvette in police chase

    Two hospitalized after crashing stolen Corvette in police chase

    Monday, September 1 2014 6:50 PM EDT2014-09-01 22:50:55 GMT
    Two men are sent to the hospital after crashing their corvette in Hamtramck. In addition to their injuries, they may be facing serious charges including grand theft auto.
    Two men are sent to the hospital after crashing their corvette in Hamtramck. In addition to their injuries, they may be facing serious charges including grand theft auto.
Powered by WorldNow

35 Skyline Drive
Lake Mary, FL 32746

Phone: (407) 644-3535
News Tips: (866) 55-FOX35

Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | New Terms of Service What's new | Ad Choices