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The Miami Herald
Miami International Airport deals
tarnish image of Mr. Clean
BY CARL HIAASEN
The feud between U.S. Attorney
Marcos Jiménez and Miami-Dade Police Director Carlos
Alvarez couldn't have blown up at a worse time for
Mayor Alex Penelas.
Penelas is running as Mr. Squeaky
Clean for the U.S. Senate, and the last thing he
wants to be asked about is the never-ending scandal
at Miami International Airport.
An investigation of contract
shenanigans at MIA is the latest friction point
between federal prosecutors and local police -- and
in the middle of the mess is the mayor's top fund-raiser
and political guru.
His name is Chris Korge, and his
long tutelage of Penelas has made him a wealthy
fellow. Much of that wealth has come from deal-making
at the airport, and much of that deal-making was not
disclosed to the public.
More than a year ago, The Herald
reported that Host Marriott Services Corp., which
won the lucrative food and beverage contract at MIA,
had funneled more than $1.7 million to lobbyists and
political insiders, preeminently Korge and friends.
Even before that, the U.S.
Attorney's Office, FBI and Miami-Dade Police had
jointly launched a corruption probe. To date, nobody
has been indicted.
Two months ago, police chief Alvarez
yanked his detectives off the case. He said that
federal prosecutors were dragging their heels, and
that they seemed reluctant to pursue individuals
with heavy political connections.
U.S. Attorney Jiménez angrily denied
it. He said that corruption investigations are often
complex and time-consuming, and called it ''indefensible''
for Alvarez to pull out.
Korge's central role
To appreciate how sensitive the MIA
case is, it's important to understand Korge's
central role in the Host Marriott deal, and his
clout with the mayor and the Miami-Dade Commission.
One of South Florida's top
Democratic fund-raisers, Korge is also a lobbyist
whose connection with Penelas has brought him a
windfall of business. Of all the dubious airport
contracts, the Host deal in 1998 was the big
enchilada.
For starters, the company privately
agreed to give Korge 10 percent of its profits at
MIA -- a laughably obscene fee for ''political
consulting.'' But that wasn't all. To help Host win
the concessions ontract, a bunch of Korge's buddies
formed a ''disadvantaged business enterprise''
called World Wide Concessions, ostensibly to be
minority participants.
The group was supposed to open and
manage eight restaurants, and during the first year
MIA reported an impressive $12.3 million in sales.
As it turned out, the reports were bogus. Not a
single restaurant had yet opened.
Later, it was revealed that Host
quietly agreed to pay $33,225 a month to the so-called
minority group, so that Host itself could keep
running the food concessions.
It gets worse: World Wide was paying
Korge 10 percent of its airport earnings, too. It
paid an additional 10 percent to Rodney Barreto,
nother lobbyist with ties to Penelas and several
county ommissioners.
Meanwhile, Host was sliding yet
another 10 percent of its airport booty to a person
named Paula Gómez, the wife of BellSouth vice
president Tito Gómez.
Presence not required?
Mrs. Gómez was initially supposed to
operate Burger Kings at MIA, but her duties quickly
evolved into something less specific -- meaning her
presence at MIA was seldom required.
You probably wouldn't be stunned to
learn that her hubbie is also a pollster, fundraiser
and pal of Penelas. Get the picture?
It's illegal to create a sham
minority firm for the purpose of securing public
contracts. Investigators have been trying to figure
out what services, if any, were provided by Korge's
friends who presented themselves as ''disadvantaged''
partners.
In reality, no prospective vendors
could have had a greater advantage than Korge's
personal blessing.
When this whole stink surfaced 13
months ago, Penelas responded with his customary
mock surprise and feigned indignation. He claimed to
know nothing of the Host Marriott debacle, or of the
outlandish fee arrangements that enriched so many of
his cronies.
`The voice of integrity'
Penelas pointed out that, as mayor,
he has no vote on county contracts. He also restated
his support for an independent airport
authority that would take
contractapproval away from the commissioners (and,
theoretically, the lobbyists who manipulate them).
In the meantime, though, Penelas has
made no move to sever ties with his lobbyist pals
who have turned MIA into a suckhole of avarice,
favoritism and waste. Korge, in fact, is a key
player behind the mayor's Senate bid.
Neither of them wanted voters to be
reminded of what's happened to the airport. The
squabble between Miami-Dade police and U.S.
prosecutors over the Host case is bad news indeed
for the Penelas campaign.
It's not easy to sell yourself as
the voice of integrity, when so many slime trails
lead straight to your door.
- The Miami Herald
Posted on Sunday,
Jan. 18, 2004 |