Whitmire calls for audits in wake of development zone corruption case

Houston City Council News

Whitmire calls for audits in wake of development zone corruption case
Midtown Redevelopment AuthorityOffice Of Inspector GeneralTodd Edwards

Houston Mayor Whitmire is 'making good' on campaign promises to clean up corruption after arrest of Midtown Redevelopment Authority official, spokeswoman says.

Houston City Council this week will consider delving more deeply into the spending of its controversial network of development zones after an official at one of the agencies was charged last summer with misusing $8.

5 million in public funds. The agenda item calls for more than doubling the cost of an ongoing audit that the council hired Ernst & Young to conduct in May, bringing the total to about $1.3 million. The additional cash would, over the next six to eight weeks, fund an analysis comparing the spending of Houston’s two dozen tax increment reinvestment zones, and target some zones for additional scrutiny via forensic audits. In a TIRZ, a portion of city property taxes generated each year are set aside to be spent only within the zone. NEIGHBORHOOD WATCHDOGS: Houston official ousted after Third Ward sleuths spark inquiry Council agenda documents don’t detail which zones would get forensic audits, and Mayor John Whitmire's administration would say only that there is a “priority list.” But the proposal comes after a former Midtown Redevelopment Authority official was charged with four felonies in June. The effort is intended to “identify efficiencies” and “eliminate waste and duplication,” said mayoral spokesperson Mary Benton. “Mayor Whitmire views this as making good on his campaign commitment to clean up conflicts of interest and corruption.” Todd Edwards, Midtown’s former real estate manager, is accused of misusing some $8.5 million in public funds meant to build affordable housing in Third Ward. Also charged with first-degree felonies were agency vendors Kenneth Jones and Veronica Ugorji. None of the defendants' attorneys could be immediately reached for comment Tuesday. For decades, Midtown has spent millions of tax dollars acquiring almost 500 lots in and around Third Ward, hoping to slow gentrification in the historic Black neighborhood and build affordable housing on the land. Residents have long complained that hundreds of the agency’s still-vacant lots have become overgrown. Yet Midtown, through Edwards, was paying companies millions of dollars to maintain them. One of the companies, it turned out, was owned by Edwards, according to court documents filed by prosecutors in his criminal case. Prosecutors allege he also helped Ugorji start a landscaping company, then helped her submit invoices that he approved for payment. From 2011 into 2021, the three defendants’ companies were paid more than $9 million directly, Midtown records show, and prosecutors said Edwards’ and Jones’ firms also served as subcontractors to Ugorji for years. Edwards appeared to be dating Ugorji; charging documents describe numerous romantic messages, some intimate images and apparent vacation planning emails between them. Midtown fired Edwards in May 2023. Last October, the city’s Office of Inspector General determined that Edwards used his position to benefit himself and Ugorji. Midtown Executive Director Matt Thibodeaux, in a statement issued Monday, said the agency has “enhanced accounting practices” to strengthen oversight and pledged to work with “the mayor, his administration, and the Midtown community to support initiatives that enhance transparency and accountability.” The proposed council agenda item says TIRZs will cover the cost of the proposed audits; Thibodeaux confirmed Midtown is prepared to chip in. Meeting minutes show Midtown’s board in June had discussed whether to pursue its own forensic audit in the wake of the corruption charges. “Midtown not only fully supports the city of Houston’s efforts but has also provided a significant amount of data to assist in these initiatives,” Thibodeaux said. “We look forward to any opportunities that further enhance our ability to serve the community.'

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Midtown Redevelopment Authority Office Of Inspector General Todd Edwards John Whitmire Veronica Ugorji Mary Benton Matt Thibodeaux Third Ward Kenneth Jones Ernst &Amp Young Black Tirzs Midtown Houston TIRZ Third Ward

 

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