Wed August 18, 2010
RI officials "dumbfounded" by Central Falls receiver fee
By Alex Nunes with AP wire reports
Providence, R.I. – State officials are criticizing the size of a bill to the city of Central Falls from a former court appointed receiver.
Attorney Jonathan Savage was picked to oversee city-finances for the cash strapped city, which he did from mid-May to mid-July. Now savage's law firm is charging the state more than 300-thousand dollars for the work.
Governor Carcieri's spokeswoman Amy Kempe says she is "dumbfounded" by the figure.
"It's stunning," Kempe says. "When we saw the breakdown, we were dumbfounded and outraged at the extent of the cost for two months of work for a city that is on the financial brink of disaster."
A spokeswoman for Savage says less than $200,000thousand was charged for work done by the law firm. The remainder is for people with needed and substantial expertise.
Savage was recently replaced by a state-appointed receiver named Mark Pfeifer. The change was possible because of a newly passed state law.