AG Orders NYPA Head To Stop Improper Gifts

The head of the New York Power Authority has been ordered by Attorney General Eric Schniederman to immediately cease using NYPA funds to make charitable contributions which appear do not directly relate to the agency’s powers, duties or purposes.

The Attorney General directed a letter dated March 21 to NYPA president and CEO Richard Kessel, the former chairman of the Long Island Power Authority after he said it had come to the attention of the Attorney General’s office via published press reports that NYPA might be making improper donations including contributions to chambers of commerces in communities which NYPA may have no physical or service-related presence.

“If NYPA is currently making these or similar contributions, please terminate them immediately”, Schniederman told Kessel whose office is in White Plains.

Schniederman wrote “This is to advise you that on Oct. 9, 2007, this office issued a formal opinion at the request of your successor at the Long Island Power Authority, Kevin Law, concerning the payment of financial contributions to local not-for-profit organizations and civic and business entities. The opinion is available at the Office of the Attorney General’s website at the following web address LINK.

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