BOGUS GRANTS OK: COMMISH
By DAVID SEIFMAN, NY Post
The city's finance commissioner yesterday defended phantom grants as no big deal.
Commissioner Martha Stark said using bogus accounts to reserve millions of dollars in government grants was nothing to be concerned about because all the money earmarked by the City Council eventually landed at legitimate organizations.
"It never seemed that a check was cut to a false organization," Stark said in a radio interview.
"This is discretionary money. This is exactly what our budget and our system is set up to do."
As The Post first reported, the council, since fiscal 2002, has set aside $17 million for fictitious community groups for disbursement to real groups after the budget is adopted.