Philadelphia: FBI Seeks Records on Airport Contract

Philadelphia: FBI Seeks Records on Airport Contract

Monday, November 10, 2003

By The Associated Press


PHILADELPHIA -- Federal agents investigating possible city corruption have
sought records about the dealings of a Missouri telecommunications company
granted an airport contract with a business run by a West Philadelphia
Muslim leader and supporter of Mayor John Street, a newspaper reported.

Investigators have sought documents from AAT Communications Corp. of St.
Louis, Mo., about its dealings with Keystone Information & Financial
Services, run by Muslim leader Shamsud-din Ali, The Philadelphia Inquirer
reported yesterday.

AAT Communications, which won a no-bid contract to manage the airport's
wireless system in 2001, confirmed Friday that it had been served with a
subpoena in connection with the investigation last week, the newspaper
said.

The wide-ranging federal probe came to light after a bug was discovered in
the mayor's office on Oct. 7. Federal authorities have refused to discuss
the investigation.

Agents have sought interviews and records from several people and
companies who contributed money to Street's campaigns and received
lucrative city contracts. On Oct. 8, FBI agents raided Ali's home and the
Keystone office, and took files.

The Inquirer said Ali didn't respond to requests for comment Friday. A
recorded message said yesterday that a number listed for Keystone had been
temporarily disconnected. An AAT spokesman, Pete Abel, told the Inquirer:
"As far as we know, we've followed the letter of the law."

According to city documents, AAT teamed with Keystone to find area
properties on which to install telecommunications equipment to serve the
airport, the paper said. In recent years, Keystone, a minority-owned
company, has done business with several city agencies, including the
airport. Most of its other contracts involve debt collection.

The city pays no money to AAT or Keystone under the contract. AAT receives
fees from wireless carriers using its towers and equipment and pays up to
20 percent of its profits to Keystone. The airport and property owners
also get a portion. For example, if the tower system generated $500,000 in
revenues, AAT would get $200,000, Keystone $50,000 and the Philadelphia
airport $250,000, the Inquirer said.

Supporters of Street, who handily won last week's election for a second
term as mayor, have alleged that the probe was an attempt by a
Republican-controlled Justice Department to disrupt the election.

A federal official, speaking on condition of anonymity, has told The
Associated Press that Street is a "subject" in an FBI probe. The legal
term is used to describe people whose conduct is within the scope of a
criminal probe, although they themselves may not be suspected of breaking
the law.

Authorities have declined to say what they are investigating, but in
recent weeks, federal agents have subpoenaed city agencies and banks for
thousands of pages of records having to do with various city contracts.
The FBI also raided the offices of Ronald A. White, an attorney who is
among Street's closest advisers and who has received millions of dollars
in legal fees from the city since Street took office.


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