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george-steinbrenner — Part 12
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The biggest racket going on in Ohio is in the Transportation Department,
and is the oldest game of all. That game is "kiting" federal highway funds.
The highway department is charging work to the Federal Government that the
Federal Government is not responsible for. The federal funds thus secured are
paying for projects in the state, counties and cities in which the federal high-
way programs are not supposed to participate. On some of the 50% - 50z partici-
pation projects of federal-state construction, the preliminary work is charged
to 70z - 30% projects or 90% -- 10% projects, and thus the Federal Bureau of
Roads is being defrauded of federal funds.
'We in the Department know these are illegal transactions, but we do not want
to get fired. They swear us to secrecy. We know of the shakedown of contractors,
suppliers, consultants, etc. going on under your noses with nothing happening to
stop it. You had better move in before there is a taxpayer's suit in Federal
Court to protect the federal funds. Then you face will be red. The suit' may be
fiied July 1, 1974.*
...n. --:
Since it is common'knowledge that the State Transportation Dept. is illegally
"Kiting" federal funds"the department is' starting a secret investigation of' its
own this week. This is for a cover up and to make some person a fall guy. The
Highway people in Ohio do not want the Federal Highway funds looked at too closely
yet. They want to get their house in order.
For example, the Columbus Olentangy Freeway Federal-State project is paying
for State Route 16l repairs etc..
In Cleveland presently the state is negotiating to purchase 13 acres from
the City on the I-90 project west in Westlake. This is part of tha City's
filtration plant. The l3 acres does not disturb the filtration plant. The 13
acres is appraised at $260,000. This could be high. The state is also going to
purchase from friends 16 acres from Rock-West Developing Co. for the price of
b 731207071Q3NY]
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