Grant Capital Management was awarded a $13 million contract from the city against the backdrop of allegedly illicit campaign contributions made by the company’s founder to former Mayor Catherine Pugh’s mayoral campaign Wednesday.
The five-person Board of Estimates on Wednesday approved the contract to fund new Motorola radio equipment for the Baltimore Police Department and other city agencies. City Council President Brandon Scott and Comptroller Joan Pratt abstained.
In a Wednesday news conference with Mayor Bernard C. “Jack” Young, City Solicitor Andre Davis said the city was aware of allegations that the firm’s founder, J.P. Grant, had bought in excess of $150,000 worth of Pugh’s “Healthy Holly” children’s books, knowing she was skimming some of the money to pay for her personal home and campaign for mayor.
Pugh pleaded guilty to four federal charges–conspiracy to defraud the United States, conspiracy to commit wire fraud and two counts of tax evasion–in November. She was originally indicted on 11 charges.
Davis, who also sits on the board, said the city was “closely monitoring” its contracts, but also stressed that allegations were not cause enough to bar the city from doing business with Grant.
“At this point, they’re just allegations,” Davis said. “I don’t think the mayor or council want to run city business on the basis of allegations.”
Last week Scott called for an investigation into Grant’s contract work with the city. To date, the city has done approximately $135 million dollars worth of business with the firm—mostly vehicle financing, Director of Finance Henry Raymond said at the news conference.
The company, effectively, helps structure leases for the city. Grant Capital Management helps connects the city with banks for the purposes of financing projects, Raymond explained at the news-conference.
“So they line up the financing, we obtain the best favorable interest rates… and we execute the deal,” he said.
Raymond also clarified that the city’s dealings with the company were the result of competitive bidding—a process by which firms compete head-to-head for the city’s business. The city awarded contracts to the company offering the lowest interest rate.
Formerly, another company, GE Capital, competed with Grant for city contracts, but they were bought by another organization and left the industry, Raymond said.
Police Commissioner Michael Harrison said he hopes the radios will be updated by early next year. When completed, the radios will strengthen ties between Baltimore police and state and federal law enforcement
“All of our officers for the very first time in a long time will be able to communicate with all of our public safety partners in the local state and federal areas,” Harrison said.
Young said the finance, police and law departments were consulted before the contract was decided.
“We need to make sure our radios are in good working order,” he said.
Davis also noted that the city can terminate contracts that are “the product of illegality.”
“So the law department has no concerns in that regard,” he said.
