Controversy looms over Jones Day contract in Detroit

Former Jones Day partner Kevyn Orr, now the emergency manager of the bankrupt city of Detroit, has been accused of making 'lucrative contract amendments' to the deal with Jones Day without disclosing them to the City Clerk.

Emergency manager of Detroit fails to notify City Clerk of contract approvals Linda Parton

The Detroit Free Press says that 'Orr met with City Clerk Janice Winfrey and agreed to notify her office of all contracts he approved.' She would then place the contracts on the council's agenda in order to maintain a promise of transparency that Mr Orr has made. But the paper alleges that there are 'at least' six cases where contracts have been approved without the information being passed along. One of these contracts relates to the appointment of the Pepper Hamilton law firm. And the paper adds: 'Nor has Orr shared information about lucrative contract amendments for the Jones Day law firm…'

'No system is perfect'

A spokesman for Mr Orr, Bill Nowling, said that a six-monthly report would soon be issued giving details of contracts worth US$5,000 or more. He added: 'No system is perfect. We are trying to address these issues as they’re brought to our attention as forthrightly as we can.'

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