City Seeks To Recover Alleged Misused Funds By Empowerment Zone

EL PASO, TX – The city government wants to recover some money from the El Paso Empowerment Zone (EPEZ) amidst allegations of corruption at the agency.

Recently, the city took over operations belonging to the EPEZ after allegations claiming officials at the agency misused grant funds. Empowerment zones are located in six different areas of town, including the West Side, Southside, South Central, Five Points, Lower Valley and El Paso High.

The EPEZ is an economic development initiative designed to revitalize distressed communities. The agency uses public funds and tax incentives to entice private investment and to encourage businesses and organizations to invest in the area. The agency was created after El Paso received ten-year federal designation as a Round II Urban Empowerment Zone.

City officials tell ABC-7 the former EPEZ board was not eligible to spend more than $300,000 from grant funds for the El Paso Festival Association. More than $275,000 were used for excessive and ineligible training, travel and contract labor costs. Almost $177,000 was improperly spent on Festival Association-related costs, including trips and “excessive” restaurant charges, city officials add.

In a letter to Clyde Pines Jr., the attorney for the former Empowerment Zone Board, the city states that the discrepancies were caused by the wrongful acts of EPEZ officers, directors and employees.

Amidst those allegations, city officials are making a claim against the EPEZ for all losses and damages incurred from the misuse of funds, including the costs of investigating this act. “All the research and everything we’re doing, we’re having to pay for out of our own budget…hopefully, we will be reimbursed,” said Mayor John Cook.

Cook tells ABC-7 a series of community meetings will be held to set the agenda for the new empowerment zone. He will also set up anew advisory board that will act as the new EPEZBoard.