Senator Proposes Clawback Provision in All State Grants
Citing reports of doling out $1 million in bonuses to event organizers and staffers after the Democratic National Convention in Philadelphia, a state senator says Pennsylvania needs a required clawback provision in all contracts for future grants issued by the state.
November 30, 2017 at 05:07 PM
1 minute read
Citing reports of doling out $1 million in bonuses to event organizers and staffers after the Democratic National Convention in Philadelphia, a state senator says Pennsylvania needs a required clawback provision in all contracts for future grants issued by the state.
Sen. Scott Wagner, R-York, issued a memo proposing a clawback provision in all contracts funded by state grants in Pennsylvania. Wagner said his legislation would “require that the state be the payer of last resort, that any surplus grant funds be returned to the state, and that private funds resulting in a surplus for any specific project will be used to repay the state grant funds.”
Wagner's memo comes out after state Auditor General Eugene DePasquale revealed in his audit of the DNC Philadelphia 2016 Host Committee's finances that former Gov. Ed Rendell—who chaired the committee—didn't obtain board approval before paying $1.037 million in bonuses to staffers and interns in November 2016. DePasquale said the spending was allowed according to the grant agreement.
—V.H.
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