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Bloomberg's Biggest Scandal—The Deutsche Bank Fire—Should Be His Downfall. Why Isn't It?

Mike Bloomberg's worst scandal cost two firefighters their lives. If we lived in a media world in which facts and memories mattered, the nonchalance at the highest levels of the Bloomberg administration about the hazards and warnings at the Deutsche Bank building, where Robert Beddia and Joseph Graffagnino died on August 18, 2007, might cost him his re-election.

While underlings were punished, Bloomberg deflected criticism of his man, Fire Commissioner Nick Scoppetta.
AP Photo/Edouard H.R. Gluck
While underlings were punished, Bloomberg deflected criticism of his man, Fire Commissioner Nick Scoppetta.

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With special reporting by Tom Feeney Jr.

Research assistance: Johanna Barr, Georgia Bobley, Lucy Jordan, and Sudip P. Mukherjee

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Our billionaire mayor will never be tarnished by the traditional pay-to-play and influence-peddling schemes that compromise politicians with ordinary bank accounts. Instead, his defining debacle is a failure of leadership, accountability, and transparency, revealed in one law enforcement report or news story after another, ever since Beddia and Graffagnino succumbed to smoke on the 14th floor of the city's most toxic building, just 118 feet from where 343 of their brothers perished six years earlier. Even Bloomberg's Department of Investigations (DOI) found last month, in a report barely noticed by the press, that it was a case of death by official dereliction.

By the time of the fire, city and state officials were so driven by their deal with J.P. Morgan Chase—which had agreed to begin building its new headquarters on the Deutsche site as soon as it was cleared—that they were pushing this unprecedented simultaneous decontamination and demolition project forward as quickly as possible. They did so without proper permits or oversight, determined to complete it before the opt-out 2008 deadlines written into the Morgan contract. Due to the extended delays that followed the fire, however, the deconstruction of the bank building remains unfinished, and Morgan has, for reasons more connected to the economic meltdown than to the Deutsche delays, walked away.

The original $45 million takedown price tag on the Deutsche building has grown by five times. Next year, finally, the blackened 40-story carcass is slated to be gone, nearly a full decade after a 15-floor gash was cut in its side by South Tower debris and it was filled with toxins and remains thrown into the bright morning air on the city's darkest day. Everything about this project and its fire has been bungled—by one city and three state administrations—yet yesterday's headlines have become today's haze, and the role of a mayor celebrated for his competence remains largely unexamined.

Deadly mismanagement cost one mayor his job. Yankel Rosenbaum's murder in a Crown Heights race riot mishandled by the NYPD finished David Dinkins in 1993, when the media refused to give a culpable administration a pass simply because its breakdowns were two-year-old news. But we are now in an era when media moguls get together to reverse two public referendums in an undisguised effort to keep one of their own in office, a time when the mayor may be the biggest new ad buyer in town. The question now is whether the press will hold accountable a mayor who has refused to hold any of his own appointees accountable for an avoidable disaster.

In the monthsbefore August 18, 2007, there were so many fires and accidents at the Deutsche Bank site that a high-powered consultant, URS, reported to state and city officials that the giant construction management firm on the project, Bovis Lend Lease, could "no longer be trusted to ensure building safety," and that the project was "an accident waiting to happen." Fifteen days after that alarm, a cigarette butt discarded on the 17th floor sparked a fire that later consumed nine stories. So many firefighters rushed up steps and elevators that 115 were injured, 46 seriously enough to require medical leave.

The docket of pre-fire municipal malfeasance starts with the collapse of inspectional regimes at the fire and buildings departments, which combined to miss a 42-foot breach in the bank building's water-supplying standpipe for months, leaving firefighters without working hoses for more than an hour in what the Graffagnino family now calls a "death trap."

Though FDNY regulations require inspections of construction or demolition sites every 15 days, the department never inspected the bank building in the six months of work that preceded the fire. The Department of Buildings (DOB) granted the project a commonplace alteration permit, the kind that is only supposed to be approved when a project "does not change" a building's use—precisely the opposite of what was planned at the Deutsche site. According to one subsequent law enforcement report, this unusual choice of permit "allowed the building to undergo concurrent abatement and demolition," a rare and risky venture. Had a demolition permit been required instead, the building would have become the province of the DOB's demolition experts, literally called the B.E.S.T. team. Instead, "inexperienced inspectors who volunteered for the assignment and never traced the standpipe" were the ones regularly on site, with B.E.S.T. inspectors in a secondary role, the same investigative report concluded.

But the record of miscalculation is not limited to inspectional dysfunction. It extends into the upper reaches at City Hall, where the mayor's most trusted deputy, Dan Doctoroff, disregarded warnings from DOI commissioner Rose Gill Hearn in favor of the reckless predilections of Bovis, a company that had built the Lexington Avenue headquarters of Bloomberg's media company and prospered in the Bloomberg administration. Bovis insisted on making a mob-and-accident-scarred firm its prime demolition subcontractor at the Deutsche site, and Doctoroff bowed to the selection over the howls of Gill Hearn. Doctoroff later told the Times that he did it because he was satisfied that sufficient "safeguards" had been put in place to make sure that the controversial subcontractor behaved itself.

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  • peggy 08/21/2010 8:20:00 PM

    doesnt bloomberg know anything more than pleasing the "money"

  • Moogie 08/08/2009 7:42:00 PM

    To Wayne Barrett, I am completely disillusioned with the NY media for not getting the facts regarding the Deutsche Bank fire. I am grateful to you for doing your own investigation and reporting the story accurately. You have accomplished what the major NY papers did not, keep up the good work.

  • Henry Reardon 07/29/2009 6:51:00 PM

    Focus on the true cover up and thats the fleecing of the tax payers. This project has no contaminated materials and only a small amount of asbestos that could have been removed in about a week. The cost over runs and the deaths should be blamed on the EPA, DOL, DEC, OSHA and the LMDC. All of these parties are well aware that out of the hundreds of thousands of air samples taken at the site there have been only a few that would be considered a little dangerous and only for someone that was in direct contact with the sample for a prolonged period of time. The original bid to demolish this building was $15 million total and could have been completed by the 1 year anniversary of 9/11. Then the 2 fireman would still be alive and the tax payers would have an extra 300 million dollars to spend on something worth while. Anyone who thinks that this site is toxic should use the freedom of information act and request a copy of the air samples from the project for the past 5 years. What you will see is a building that contains nothing hazardous. You could collect soil samples along the west side highway and find more toxins.

  • eastsideNY 07/26/2009 12:28:00 PM

    Bless you, Wayne Barrett. Real journalism is not dead in this town as long as you're around, and I thank you and your co-workers for your efforts.

  • Dee Alpert 07/24/2009 11:08:00 AM

    Fabulous investigative reporting. Kudos. Pulitzers, too! I'm not surprised by anything you write. I chair a rental bldg. tenants assoc. and we're dealing with the most incredible DOB corruption - well documented - you can imagine. A number of the same players as at Deutsche Bank have been involved. We've already been illegally exposed to asbestos due to grossly inadequate containment at adjacent townhouses due for demolition - permits for which said "Alteration 3" instead of "demolition" until we complained - and our experts (and even some from DOB) say the demolition may cause our builing to collapse. DOB pretends none of the documentation exists and has invented a new construction phase - "pre-demolition" to conceal it allowing illegal work. The Bloomberg Blanket of p.r. control keeps the story out of sight. Which is why we've put a Collapse Cam on our web site, www.736tenants.org, so the whole world can watch when/if our building is damaged due to extremelydangerous and illegal, DOB-permitted demolition work. The Bloomberg p.r blanket may try to keep it covered up, but the whole world will be watching. Or can, if it wants to. Come on down! Dee Alpert, Chair 736 West End Ave. Tenants Assoc.

  • crash 07/24/2009 5:58:00 AM

    This story of brave firefighters being thrown under the bus to protect high level Bloomberg appointees screams for coverage by the NY newspapers. The once mighty fourth estate should be hanging their collective heads in shame. This story would seem to provide a natural lead into the shameful world of no-bid contracts that seems the hallmark of the Bloomberg Gang. If Bill Thompson refuses to mount a campaign, he should witdraw and let an aggressive candidate emerge. Four more years of the dictator Bloomberg and his plurocrats, will leave no room for working people in our wonderful City.

  • Jo Ann 07/23/2009 8:22:00 PM

    Who did Bloomberg pay off. My Dad was right a long time ago but talks B.S. walks. If the people vote for him again they are real A.H. He did nothing for the city of New York, he blocked the 9/11 help for the first responders and they he changed his mind. what a powerful example of stupidity. He should be dismissed out to pasture with the so called president of my United States.

  • Paul 07/23/2009 8:07:00 PM

    Just when I thought that with today�s �ifo-tainment� and �agenda journalism� that any real objective investigative journalism was dead in NYC. Mr. Barret (along with your researchers) have put together a summation that even the NY Times decided to ignored. This article nicely puts the pieces together and shows the real reasons behind the deaths of the firefighters from E-24 & L-5. As in all firefighter fatalities, it rarely is just one thing that causes a death, but a string of events. The article shows where that string was first tied off and by whom (yes that would be you Mr. Doctoroff). Lower level civil servants are the scapegoats that give politicians and connected sufficient cover. Well done Mr. Barrett

  • Arnie 07/23/2009 5:01:00 PM

    Thought this would be of interest to readers. Since September 2001 I have maintained a free and confidential "9/11 list-serv". The "9/11 list-serv" distributes daily e-mails containing newspaper articles and other relevant information re: 9/11 issues of interest to 9/11 families, 9/11 organizations and interested individuals. The 9/11 List-serv archives can be accessed at http://groups.google.com/group/911-list-serv If you would like to 'subscribe' to this free news service - send an e-mail to amkorotkin@aol.com with the word "subscribe" in the subject box. Arnie

  • a 07/23/2009 1:57:00 PM

    The fact that the Fire Department would allow their Officers to be scapegoated by a City Hall administration with a suspect ethical compass is sad. Until City Hall provides building inspection training for Firefighters, the FDNY should not be allowed to continue the charade of "inspecting" buildings. The sense of security provoded when the citizens watch the well dressed firefighting force enter buildings, clipboards in hand, is only an illusion. Illusions may be the hallmark of this tired crowd in City Hall.

  • pork 07/23/2009 9:27:00 AM

    thank you, mr. barrett. but will anyone listen? will anyone care?

  • Deep Throat 07/23/2009 5:36:00 AM

    15 day inspections of buildings under construction and demolition was a dormant FDNY procedure. It slept on FDNY's books like Rip Van Winkle. Do you think that the seven fire officers reprimanded were the only ones who didn't inspect buildings under construction or demolition every 15 days? FDNY simply did not do 15 day inspections. Scoppetta never roused the Rip Van Winkle procedure from where it slept within the pages of FDNY's manual. What is most galling is that if Scoppetta had awakened the Rip Van Winkle procedure, these seven reprimanded officers would have executed it. That's the canard. To save his own skin, Scoppetta sacrificed seven of his troops. That's vile. And the little guy, Scoppetta's boss, stood idly by while Scoppetta rammed a dormant procedure up seven innocent fire officer's you know whats.

 

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