City Council Chairman David A. Clarke yesterday criticized Alphonse G. Hill, the District's deputy mayor for finance, for not taking disciplinary action against D.C. Assistant Treasurer Fred Williams when it was disclosed last spring that Williams had backdated a memo submitted to the council.
At a hearing on Mayor Marion Barry's fiscal 1987 budget, Clarke commended Hill for disciplining senior cash management analyst Alvin C. Frost, a critic of the deputy mayor who recently altered a computer code and withheld it from his superiors, but said he was "concerned" that Hill had not applied the same standards to Williams.
"The discipline that is exercised by your office ought to extend to those members of your office who are noncritical, as well as those who are critical," Clarke said.
Hill replied, "Thank you for your comments, Mr. Chairman," and made no further remarks about Williams.
In testimony before a council committee hearing last spring, Williams apologized for a memo he had offered as justification of the city's investments with a bankrupt New Jersey securities firm. The document bore a Dec. 7, 1984, date, but had been prepared the following April. Hill said later that the memo reflected conversations that occurred in December 1984.
Council member John A. Wilson (D-Ward 2) said yesterday that he has "always thought that Williams should be fired" and added that the Committee on Finance and Revenue, which he chairs, is expected to issue a report this week on last spring's hearings.
Clarke also peppered Hill with questions raised recently by Frost, who was placed on administrative leave last week for insubordination, and in a federal investigation that is examining whether Hill received any financial considerations in exchange for helping the auditing firm of Hill, Taylor & Co., which has received hundreds of thousands of dollars in city auditing contracts since 1981. James Hill, who heads Hill, Taylor & Co., is a longtime friend of the deputy mayor.
"Mr. Chairman, I have never received anything personally from anyone in exchange for contracts with this government," Alphonse Hill said.
He added that he never personally approved any auditing contracts without proper competition and denied a charge, leveled by Frost, that in 1983 Hill ordered subordinates to destroy a staff report recommending that several financial services contracts be awarded to United National Bank of Washington and First American Bank.
The contracts ultimately were given to the National Bank of Washington. Hill said NBW had not received any special consideration.
Also at the hearing, D.C. Controller N. Anthony Calhoun said the city continues to maintain a few of its accounts outside its computerized financial management system. Among them, he said, is a special administrative fund at the Department of Employment Services.
Abuses of that account by former deputy mayor Ivanhoe Donaldson led to Donaldson's conviction in December on federal fraud and coverup charges. At the time of the conviction, Barry noted that the city administration had attempted to bring all accounts into the financial management system.
"If anyone knows of any accounts outside the financial management system , let me know and I'll shut them down," Barry said on Dec. 11.
Annette Samuels, the mayor's press secretary, said yesterday that that she doubted the mayor had said the special administrative account was in the computerized system but, if he had, "It might have been an oversight on his part."