Fumo: "I Am Not Guilty"

February 5, 2007 (WPVI) -- On the eve of an expected federal indictment against him, Pennsylvania State Senator Vince Fumo temporarily stepped aside as Minority Chair of the Senate Appropriations Committee, but he vigorously denied any wrongdoing.

"I am not guilty of these allegations," Fumo, 63, said on the floor of the Senate on Monday afternoon. "This investigation has been marked by threats, intimidations and frequent leaks to the media intended to embarass me... I know in my heart that I have not done anything wrong."

Sources told Action News on Saturday that the six-term state senator will be charged with corruption relating to a South Philadelphia charity called The Citizens' Alliance for Better Neighborhoods.

The 16-year-old charity, which is run by Fumo's aides, does economic development and beautification projects in South Philadelphia, which the senator represents in Harrisburg.

Peco Energy Co. gave the group $17 million as it sought to win state deregulation of the electricity markets. Fumo initially opposed the effort, but later threw his support behind the utility after it agreed to temporary rate caps that continue to hold its prices at 1996 levels. The Delaware River Port Authority, where Fumo served as an alternate board member, donated another $10 million to the nonprofit.

Two Fumo aides were arrested in May for allegedly obstructing the investigation by deleting thousands of e-mails from computers used by Fumo and his staff.

Fumo said on Monday that he expected the indictment would accuse him of using millions of dollars from the charity, as well as his personal staff, for his own personal and political purposes.

"Both claims are simply wrong," said Fumo.

The indictment, which is expected as early as Tuesday, caps a four-year federal investigation of the democratic senator, one of the most powerful politicians in Philadelphia.

Fumo said on Monday that he expected to be indicted this week. He said in one sense he was relieved because he could finally address the charges head-on rather than having to answer questions about countless rumors.

"I am no longer in a fight for my political life, but for everything that I hold dear," he said. Fumo added that he believed the indictment would be "full of falsities, half-truths and baseless legal theories."

Fumo's announcement on the eve of Gov. Rendell's budget address wreaked havoc in Harrisburg.

State Senator Vince Hughes (D) Philadelphia admits, "Losing someone of his experience and the significant contribution that he's made to the City of Philadelphia and State of Pennsylvania is just (kind of) personally devastating for a lot of us."

Congressman and Democratic Party leader Bob Brady, a longtime Fumo political ally and friend says he is not just terribly saddened, he says Fumo's departure from the appropriations committee leadership is a terrible loss for Philadelphia.

"He was a very powerful man for a lot of years and brought back more money and more resources to our city and our region than any other senator we've ever had," Brady said.

Fumo has been a state senator since 1978. He is in his 6th term representing the first district in Philadelphia and serves as chairman of the Senate Appropriations Committee.

He said he will temporarily give up the position on the Senate Appropriations Committee "until I am vindicated."

Fumo is actually required under Senate rules to give up any leadership position as soon as he is indicted.

Sen. Gerald J.LaValle, D-Allegheny, is expected to fill his seat on the panel until the criminal case is resolved. The committee will shift into high gear Tuesday, when Gov. Ed Rendell presents his 2007-08 state budget.

Spokesman Gary Tuma said Fumo's salary also will be reduced, from $98,690 to the $73,613 that other rank-and-file legislators receive.

He also will no longer be entitled to a staff of about 15 aides who are on the committee payroll.

Fumo has faced criminal charges twice before, but he was exonerated both times.

In Harrisburg, Fumo has been a powerful political player, crafting the 2004 law that legalized slot-machine gambling in the state. He is also vice chairman of the state's college loan agency, the Pennsylvania Higher Education Assistance Agency

In addition to his law degree from Temple University, Fumo also earned an MBA from the Wharton School.

(NOTE: Some information supplied by The Associated Press.)

(Copyright 2007 by Action News and 6abc. All Rights Reserved)

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