



DeFede Report: Conflict Of Interest In City Hall Business Deal |3/8/06 6pm | Jim DeFede | Miami city hall is once again buffeted by scandal and allegations of incompetence. First came the debacle over the city's fire rescue fee, whereby city manager Joe Arriola and mayor Manny Diaz negotiated a $7 million settlement that benefited only 7 people. Now we learn about a private, multi million dollar land deal in which Diaz, Arriola and city commissioner Johnny Winton are all partners. How cozy. And how very wrong. The manager, the mayor and a city commissioner should not be business partners - there is an inherent conflict of interest. A short time ago Arriola called me to argue there is no conflict. I think people are just jealous, he said, because I’m going to make a lot of money. I tried telling Arriola its not jealousy, its a matter of transparency. You can't have the manager and the mayor and a commissioner in business together. How do we know if the mayor is keeping the manager around for the god of the city or because he doesn't want to alienate a business partner. How will we know when city business collides with personal business. A case in point, the mayor's surprise raise. Did Winton and Arriola conspire to give the mayor a $53,000 raise a couple of months ago because of his job as mayor or because of their private business dealings. That's just stupid, Arriola huffed when I pointed this out. No, Joe, what's stupid is allowing yourself and the city to be in this position in the first place. On Joe Carrollo and Xavier Suarez’s worst days as mayor, they weren't as shady and as untrustworthy as the current city administration. According to several sources, Arriola intended to resign as manager two months ago. But when the manager's bungling of the fire rescue fee settlement started grabbing headlines, Arriola changed his mind and is now refusing to go. In my conversation with him, Arriola sharply denied this. I'm not leaving, he shouted into the phone. Actually, his comments were a bit more profane, but the basic gist remained. According to my sources, Arriola does not want it perceived that he was forced out. My sources says Arriola doesn't want to give his critics the satisfaction of a resignation. He wants to leave on his own terms and in his own way. They argue he's pretty much remaining on the job out of spite because his ego will not allow him to be run out of city hall. It's not about ego, he countered. I came here to do a job. He blamed the unions and malcontents for the reports about his plans to resign During last year's state of the city address Diaz noted that in the past, Miami’s city government was often a laughingstock. City hall, he said, came to be known as silly hall. And he compared it to a circus. Well, Mr. Mayor, it would appear the circus is back in town. And like days of old, it's still the greatest show on earth.
