Fouts could be in more hot water for fundraising scam

Warren Mayor Jim Fouts’ sneaky move to convert his annual State of the City address into a political fundraiser may have been more unethical than originally believed.

Fouts’ detractors pointed out last month that money raised from the $40 tickets sold for the April 7 event were quietly steered to a political action committee, a pro-Fouts PAC run by one of the mayor’s highest-ranking appointees. Previous State of the City events, always well-attended, were run by the civic-minded Macomb County Chamber of Commerce.

However, this scam goes deeper as it now appears that a promotion for the event was stuffed inside city envelopes containing March water bills mailed to city residents and businesses.

Included with the water bills (about 50,000) was an advertisement for upcoming city events, including the Fouts speech. The ad urged people to call the mayor’s office for tickets, but did not mention that the event had been converted into a political fundraiser.

That would appear to be politicking through the use of taxpayer-funded resources. A recent complaint filed with the Secretary of State’s Office had made the case that city employees were improperly involved in the luncheon fundraiser. Using the water department’s billing process to promote the event would seem to be much more blatant.

Checks for the event, held at Andiamo’s banquet hall in Warren, were paid to Macomb Business United, the PAC run by Gus Ghanam, the city’s assistant public service director.

Macomb Business United had no difficulty selling tickets, according to The Macomb Daily, as Ghanam said businesses came calling, inquiring about the event and wanting to buy tables with a choice of eight or 10 seats. 

Some of those firms do business with the city. Attendance was 472, just below capacity. Only four tables were arranged for walk-in attendees who did not buy tickets in advance. Among the city employees involved in the event were the staff of the city’s cable television access channel, which typically broadcasts community events.