CLEVELAND -- The city of Cleveland is restructuring the department of public utilities after a higher-up failed to properly oversee a lucrative contract awarded to Terry Kordiac, also known as Terry the Plumber.
The city has paid Terry the Plumber nearly $1 million to perform various plumbing work, including the installation of water and sewer lines.
Internal auditors found he was paid for work outside his contract. The original $160,000 contract changed five times without city council approval. Contracts exceeding $50,000 are subject to council auhtorization.
"We are re-training staff," said city finance director Sharon Dumas. She reported to council's public utilities committee that an internal investigation found negligence, but not criminal intent.
Kordiac says he only did the work he was told to do by the city. He believes the city still owes him money, but the city says it's not obligated to pay a contractor for work that is performed outside a contract.
Since auditors found irregularities with the contract last year, council members raised questions about whether the work was actually done. Dumas reported to council that the work was done.