Phone exec says Fumo sought $50 million
PHILADELPHIA — The former president of Verizon Pennsylvania testified Monday that a powerful state lawmaker sought $50 million worth of demands during negotiations with the state over phone-industry deregulation.
The demands included $15 million for a small South Philadelphia charity linked to ex-Sen. Vincent Fumo; $10 million for neighborhood redevelopment in Fumo's district; and $10 million in deposits in Pennsylvania Savings Bank, the Philadelphia Democrat's family bank.
"Naive as I was, I asked (lobbyist Stephen) Wojdak what PSB was," Daniel Whelan, the retired Verizon executive, testified Monday, recalling a hand-scrawled item on the demand list Wojdak discussed on Fumo's behalf. Fumo in the late 1990s was opposing the company's deregulation plan.
Whelan's testimony comes as prosecutors move toward the close of their case in Fumo's 139-count corruption trial. Fumo is not charged with any wrongdoing in the Verizon matter, and his lawyers fought to keep Whelan off the stand.
However, prosecutors prevailed and called him to testify about his meetings with Fumo and Fumo delegates as Verizon sought approval of its plan from the state Public Utility Commission.
Peco Energy had agreed to donate $17 million to Citizen's Alliance for Better Neighborhoods, the neighborhood nonprofit run by Fumo loyalists. The 65-year-old Fumo, a millionaire banker and lawyer, is charged with misusing more than $3.5 million from Citizens Alliance, the state Senate and the Independence Seaport Museum.
