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Mike Washowich

Team 4 Investigates Spending Policies At Westmoreland Housing Authority

POSTED: 4:44 pm EDT May 23, 2008
UPDATED: 6:25 pm EDT May 23, 2008

The following is a transcript of a report by Team 4's Jim Parsons that first aired May 23, 2008, on WTAE Channel 4 Action News at 5 p.m.


A Team 4 investigation uncovered local public officials using your money to take frequent trips to places like Las Vegas, South Beach and Boca Raton. But that's not all.

Credit card purchases for sportswear, Christmas gifts that cost hundreds of dollars, flowers and balloons, even overnight hotel stays in Pittsburgh. And all of it was on your dime.

At the Westmoreland County Housing Authority, board members and executives have traveled to the Boca Raton Resort and Club at a hotel room rate of $415 a night.

And how about six nights at the posh Ritz Carlton in South Beach, Miami? The room rate there was $379 a night, each for two board members and two executives attending a national conference.

"I have to tell you that over the years, when I've traveled to Miami and other locations, I am alarmed and amazed at the cost of living and the cost of the hotels," said Westmoreland County Housing Authority executive director Mike Washowich.

But when officials from Allegheny County's Housing Authority traveled to Miami around the same time for a conference, they spent just $149 a night at the Miami Beach Luxury Resort and Spa.

And federal employees get a maximum of $157 for a hotel room in Miami.

Westmoreland County Housing Authority officials spent more than twice that amount.

And yet, Washowich told WTAE Channel 4's news partners at the Tribune-Review last October, "We're getting to bare bones at this point in time. There's only so much cutting you can do."

On the same day that quote was published, Washowich's Housing Authority credit card was used at Olive Garden Restaurant in Greensburg to pay a tab of $122.64. The day before that, it was used at Delallo Italian Market for purchases totaling $66.73.

And the day before that, a purchase at Joseph Thomas Flowers cost the Housing Authority $69.95.

And then there is the monthly charge for Washowich to have OnStar cellular service in his take-home agency vehicle, a Yukon.

Team 4's Jim Parsons asked Washowich why he needs OnStar in his car.

"Why do I need OnStar? To be honest with you, I don't even know if it's connected," he said.

Whether or not it's connected, records show the agency is paying $18 a month for OnStar service.

Washowich defends the credit card bills that total between $5 and $15,000 a month, like the large screen plasma TV he bought at Sam's Club that's now in the community room at the senior high rise in Jeanette.

But an invoice from last December is for 21 fleece vests purchased online. The explanation was Christmas gifts for the total tab of $1,398.

Parsons: "I'm seeing purchases at Michael's, Joanne Fabrics, Dollar Trees, Delallo's, Shop 'N Save, McDonald's. What's that about?"

Washowich: "All purchases that again go into supporting the various programs that this $28 million agency continues to operate."

Washowich said many of the credit card purchases support the Hope in Life drug prevention programs at the authority's public housing projects.

Washowich also signs off on employees staying overnight at hotels in Pittsburgh. Last August, four employees stayed three nights at Sheraton Station Square where a conference was going on. And Washowich himself stayed two nights at the Omni William Penn in September.

Parsons: "You live 20, 30 miles from Pittsburgh. Why did you need to stay overnight at the William Penn?"

Washowich: "Well, I would say those types of situations are few and far between, Jim."

Team 4 took our findings about spending at the housing authority to Westmoreland County Commissioner Kim Ward.

"It does not appear to be proper," said Ward. "It's just not the proper way to do business. We're not a private business."

But Team 4 discovered that Washowich does have his own private business. He formed his own training company last year. Allegheny County Housing Authority hired Washowich to train its employees how to treat residents with respect and paid him $2,700 for a half a day.

"I think it was $75 per person, if I'm not mistaken," said Allegheny County Housing Authority executive director Frank Agazzio.

Washowich is a board member at the Pennsylvania Association of Housing and Redevelopment Agencies and admits he sells his company's services at the association's conferences, even though his expenses for those conferences are paid by the Westmoreland County Housing Authority.

"I have the opportunity to speak to my colleagues who I have been dealing with in this industry for the past 20 years," he said.

Parsons: "So, when you go to these conferences, you never have a discussion about, by the way, I have this company where I do training?"

Washowich: "Oh, absolutely. I mean, those things happen. I mean, that's human nature."

"There is certainly a conflict of interest concern ... because of who's paying him while he's out drumming up business for himself," said Ward.

Washowich said he did get approval from the board of directors at the Westmoreland Housing Authority to operate his private business. He also told Team 4 he got the OK from local officials with the U.S. Department of Housing and Urban Development. Parsons spoke with officials at the HUD offices in Pittsburgh and Philadelphia. They said they had no knowledge of Washowich's private company.

Team 4 tried reaching Washowich again over the past two days to get a clarification from him, but he has not returned our messages.


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