PITTSBURGH — Following the fallout of Pittsburgh Mayor Bill Peduto’s appearance on an episode of “Undercover Boss,” the $25,000 donation that VisitPittsburgh contributed may now be returned.
Peduto pledged $155,000 to four city employees on the reality television show last month, but Allegheny County Controller Chelsa Wagner is concerned taxpayer money was used.
"I think it’s the first time that any politician has ever been accused for lining someone else's pocket,” said Peduto Friday.
Peduto continues to stand by his decision to promote Pittsburgh using “Undercover Boss,” and awarding what he called a “$25,000 charitable gift” - not a bonus - to hard-working, low-paid city employees.
The $25,000 earmarked for a city Urban Redevelopment Authority employee came from VisitPittsburgh, which gets much of its money from hotel tax dollars. VisitPittsburgh said it thought the money was to promote Pittsburgh, not to give to a city employee.
"It was completely a transaction based upon a marketing opportunity for the city,” said Craig Davis, with VisitPittsburgh.
However, Wagner called foul and withheld nearly $700,000 in taxpayer funding to VisitPittsburgh until she was certain the “Undercover Boss” money payout for private employee use was legal.
Wagner appeared to make some headway Friday in a fight that likely isn’t over.
"The response from the mayor that they will realize that those funds should be returned, and they should use or rather use private money as they intended and said all along,” she said.
Wagner said she will release the $700,000 in funding to VisitPittsburgh, as they agreed to never again transfer tax dollars.
Peduto insists that city ethics code does allow taxpayer gifts.
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WPXI
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