New mayor leads crackdown in New Orleans

NEW ORLEANS, July 22 (UPI) -- Mayor Ray Nagin fired the first round in his battle against corruption in New Orleans city government Monday, sending police to arrest 84 city workers and others on charges ranging from bribery to malfeasance.

Nagin launched an investigation into complaints of rampant bribery in city government shortly after he was sworn into office May 6, succeeding longtime Mayor Marc Morial. Nagin said the corruption could reach into the highest ranks of city government.

"We are in a battle for the soul of New Orleans," he said. "We are committed to fighting and rooting out all corruption in City Hall."

The first warrants focused on alleged bribery and malfeasance in the city's regulation of taxicabs and vehicle inspections. Twenty-five suspects were arrested early Monday on charges that could bring five-year prison sentences.

Utilities Department Director Lilliam Regan, whose office includes the taxicab bureau, was fired. An arrest warrant was issued for the department's deputy director, Brian Cain, who is also the taxicab bureau administrator, the mayor's office said.

All three New Orleans vehicle inspection stations were temporarily closed because of the corruption investigation.

Investigators reportedly found city inspectors routinely approved substandard cars after accepting bribes. One employee was allegedly found selling the stickers out of her home. Taxicab driver licenses were illegally sold for $200 to $1,000.

Nagin's staff also found an anonymous tape recording alleging that $1.8 million in bond proceeds were misspent. The tape, which was apparently made by a City Hall insider, was turned over to the FBI, according to the mayor's staff.

Nagin and Kimberly Williamson, his chief administrative assistant, also received other reports of alleged corruption, and they took the evidence to police. Local and federal agencies are conducting the investigation that began about two months ago.

Nagin said the investigation could implicate key officials in the Morial administration.

In a statement, Moral defended his adminstration.

"In my eight years as mayor, it was my practice to refer to the Office of Municipal Investigation information that was brought to my personal attention regarding violations of the law," he said. "I did this on many occasions and I also demanded city department heads follow protocol and refer all information regarding violations of the public trust directly to OMI. At no time did a Director of Safety and Permits nor a Director of Utlities bring any information regarding wrong doing (sic) to me directly."