Activist claims emails he obtained regarding Emergency Manager Kevyn Orr shows a conspiracy
WXYZ.com Web Staff
1:21 PM, Jul 22, 2013
9:47 PM, Jul 22, 2013
DETROIT (WXYZ) - Labor activist Robert Davis says emails he obtained in a lawsuit challenging the Emergency Manager show a conspiracy.
He held a news conference Monday afternoon.
7 Action News has read the email and they show how discussions about a bankruptcy and Kevyn Orr being the Emergency Manager started in January and continued until Orr's appointment on March 14.
Mayor Dave Bing was also brought into the behind the scenes discussions and he agreed to make the process "legitimate" to the community in exchange for promises from the Governor.
Bing released a statement responding to the allegations Monday afternoon. It reads as follows:
I did not cut any type of secret deal with Lansing. Throughout this process, I have been very vocal about being against an Emergency Manager.
When it became obvious that Lansing had made the decision to bring in an Emergency Manager, I thought the best choice was for the City to work in partnership with Lansing to protect the interests of the citizens of Detroit.
To that end, I thought it very important to keep my Executive Team in place to carry out the day-to-day operations and continue to implement our restructuring initiatives.
I wanted to maintain my key executives at their existing salaries, since they, along with other city employees, already had taken a 20-percent pay reduction.
Our intent was to develop an understanding for a working partnership between the City, State and EM. There was never any intent to create a formal, signed agreement.
To underscore the fact that this was not a formal agreement, note that the State has not kept my executive team intact; they did not support maintaining the federal transit funding for DDOT; there is no lease deal for Belle Isle; and the State has not released the necessary funding to move our initiatives forward, as outlined in the e-mail document.
Orr was also told in an email that Orr would be able to "make up for lost time there" leaving his law firm Jones Day in Washington, D. C. to be Detroit's Emergency Manager.
Orr's office released the following statement, responding to what it calls "Robert Davis' latest baseless, rambling allegations":
The emails mentioned by Mr. Davis show nothing more than the proper due diligence between the city, a potential vendor and a candidate for emergency manager. The notion that a Chapter 9 filing was a forgone conclusion is absurd. Kevyn Orr held more than 100 meetings with creditors, stakeholders and unions in the last three months before deciding that the best course for restructuring the city was to seek federal bankruptcy protection.
Jones Day has been hired by Detroit as a consultant to the bankruptcy and stands to make millions of dollars in the case.