FBI probe digging up Detroit sludge

DETROIT, July 2 (UPI) -- An FBI investigation of a sludge disposal contract is digging up dirt on members of the Detroit City Council and others, sources say.

The widening investigation may become the city's biggest public corruption scandal in decades and involves surveillance audio and videotapes of payoffs, the Detroit Free Press reported Wednesday.

Two sources alleged James Rosendall, an official with Houston's Synagro Technologies, a waste-management company that received the $47 million per year contract, was caught on tape giving money for votes. After being confronted about payoffs, he allegedly cooperated with the FBI in continued investigations and sting operations.

Council President Ken Cockrel Jr. acknowledged the seriousness of the FBI investigation.

"It's not surprising, but it's very disappointing and very disturbing," he said, adding he got a hint of the inquiry's scope last week in talking to the FBI.

Among those allegedly taped by the FBI was John Clark, Cockrel's chief of staff. Sources said he allegedly accepted two payments of $2,000 from Rosendall earlier this year although Cockrel voted against the Synagro deal.

The sources told the Free Press at least four councilmen are under investigation.