Kwame Kilpatrick directly appealed to the state’s budget director for money that ultimately went to his pal Bobby Ferguson’s nonprofit group.
Kilpatrick wrote a letter in June 2000 to then-state Budget Director Mary Lannoye urging her for state grant money. He asked for the money to go to two groups, including the nonprofit entity Detroit 3D, which was formed by Ferguson, and another group that included Kilpatrick’s wife, Carlita.
Lannoye was concerned after learning about Carlita Kilpatrick’s involvement and asked for more documentation about how the first part of the grant was spent. Carlita Kilpatrick pocketed $91,000 and her husband also received some of the money, prosecutors allege.
“I thought these grants were supposed to be for community grants to help nonprofits and not for a legislator’s relatives or personal gain,” Lannoye testified.
Kilpatrick complained when Lannoye asked for more documentation about how the money was spent.
From the indictment:
“In or about the Spring of 2001, KWAME KILPATRICK complained to a representative of the State Budget Office that the State wanted too much detail from Detroit 3D and Nonprofit V about how they spent the State grant money.”
She believed it was wrong for Carlita Kilpatrick to receive state grant money requested by her husband.
“It’s his wife,” Lannoye testified. “It just gives the appearance of impropriety.”
Lannoye is the former state Budget director under Gov. John Engler and Gov. Jennifer Granholm’s former chief of staff.
Under cross examination, Lannoye said there were no rules or procedures for providing state grants in the late 1990s and 2000.
Kilpatrick defense lawyer James C. Thomas quizzed Lannoye about her objections to Carlita Kilpatrick receiving state grant money.
“It raised a question for you, but that was an ethical consideration not a legal consideration, isn’t that correct?” Thomas asked her.
“Yes,” Lannoye said.