Mayor Malloy of New Hanover Township charged with instructing a witness to lie to grand jury.
By: Eve Collins
NEW HANOVER Patrick G. Malloy, mayor of New Hanover Township for the past 37 years, has been charged with witness tampering in connection with the investigation of a federally funded contract awarded to his brother.
According to officials in the U.S. attorney’s office, Mayor Malloy, 69, instructed a witness to lie to the grand jury in its investigation of the awarding of a contract in 1999 by the New Hanover Board of Education. The witness was cooperating with the FBI and had worn a recording device while talking to the mayor, officials said.
Employees at the New Hanover School said the contract for repairs to the sidewalk in front of the school was awarded to Donal Malloy and Sons. Donal Malloy is the mayor’s brother.
Mayor Malloy was not arrested. Accompanied by his attorney, he turned himself in to FBI officials prior to his court appearance on July 17. He made an initial appearance in court, pleading innocent to the charge. Bail was set at a $300,000 unsecured bond.
An unsecured bond does not require that the accused post any money. If he or she does not appear in court as ordered, the bond is forfeited.
Officials will next seek an indictment from a federal grand jury in Trenton. If convicted, Mayor Malloy faces a maximum penalty of 10 years in federal prison and a $250,000 fine.
"Here we have entrenched, arrogant public officials scheming and self-dealing at the public’s expense," U.S. Attorney Christopher J. Christie said in a prepared statement. "Corruption runs north to south in New Jersey, and we will continue to do our part to stamp it out in all regions of the state."
The charges against Mayor Malloy come one month after former New Hanover Township Clerk James Nash pleaded guilty to his role in the case. Mr. Nash was serving as the school board’s treasurer at the time of the alleged bid rigging.
Officials have said that Mr. Nash, who has cooperated with the investigation, admitted at his plea hearing last month that he and a then-unnamed township official planned with others how to steer the contract to the mayor’s relative.
Mr. Nash pleaded guilty last month to one count of misapplying federal money received by the board. He is scheduled to be sentenced on Sept. 22 and faces a maximum penalty of 10 years in federal prison and a $250,000 fine.
The Township Committee, at its July 8 meeting, passed a resolution in support of Mr. Nash. Mayor Malloy abstained from that vote.
Township Clerk and Administrator Paul Thomas said the township was not releasing a comment on the situation. Township Committee members could not be reached, or did not return calls seeking comment.
According to officials, Mayor Malloy, Mr. Nash, and a member of the board met on April 15, 1999 and confirmed their agreement that the contract would go to the mayor’s relative.
In a brief statement over the phone on Tuesday, Donal Malloy said that he was an unwitting player in the situation, and that his brother was "sucked into this by a wire tap."
Officials have said the board received a quote from the contractor, which priced the sidewalk job at $11,500. Mr. Nash told officials that he, Mayor Malloy and the board member decided they would obtain two fabricated written quotes for higher prices in the names of local vendors, and that those would be submitted to the board as well.
Mr. Nash admitted that he directed another municipal employee to fabricate a quote in the name of a real local vendor, officials said. That vendor then informed FBI agents about the fake quote.
The Board of Education awarded the contract to Donal Malloy for $11,500 on the evening of April 15, 1999 during a regular meeting. The job was completed three months later, and the contractor was paid.
The funds used to pay for the project came from Impact Aid, a federal grant program which aids school districts whose students reside on federal lands. The districts lose property tax revenue because the federal lands are tax exempt.
Fort Dix Army base is located in New Hanover Township.
Mayor Malloy is represented by Lee H. Engelman of Pennington. He did not return a request for comment.
Mayor Malloy is a retired general contractor. Since he took office, the township has gained a police force, a fire department, garbage collection, a senior citizens complex and has expanded to a five-person Township Committee.