Mayor Anthony A. Williams submitted his personal bank records to the D.C. Office of Campaign Finance yesterday during a closed-door hearing where he responded to a charge that he violated city law by not disclosing two consulting contracts that paid him $40,000 during last year's mayoral campaign.
He said he was prepared to pay the $1,000 fine if campaign finance officials determine that he should be penalized for not updating his financial disclosure forms within 30 days after his income changed, as the law requires.
Williams arrived at the campaign finance offices with his personal attorney, Robert M. Krasne, of Williams & Connolly, before entering the two-hour private hearing with Cecily E. Collier-Montgomery, director of campaign finance, and Kathy S. Williams, general counsel.
Collier-Montgomery has charged the mayor with failing to update his sworn financial disclosure statement after he entered a contract with the Arthur Andersen & Co. accounting firm and NationsBank. The two firms paid Williams a total of $40,000 for consulting services that began last summer while he was campaigning for mayor and concluded in December after he became mayor-elect.
Williams signed and filed his first financial disclosure statement on July 17. He signed the contract with Arthur Andersen on July 31 and the one with NationsBank on Aug. 6.
After yesterday's hearing, Williams said that the failure to revise his financial disclosure report was an "oversight, which occurred during the whirlwind of the mayoral campaign," and was "not deliberate on my part." He stressed that he voluntarily disclosed the contracts in this year's personal disclosure statement, which public officials had to file on May 15.
"I handled this myself," Williams said during a news conference after the hearing. "It was a `do-it-yourself job.' " The mayor said he and his wife, Diane Simmons Williams, decided the two consulting contracts were a "private matter."
"I should have updated my form," Williams said. "I should have just done this differently and in a way that was fully, completely on the record. This is a sandwich board that I'll have to walk around with forever."
Williams, who apologized last month for the late disclosure, acknowledged that it has been a personal embarrassment, particularly for a candidate who campaigned as an agent for open government and reform.
"I could be in Death Valley in August, or have a root canal," he said. "It's not a pleasant experience."
Williams, who had to resign his $118,000-a-year post as the city's chief financial officer to run for mayor, has said he accepted the contracts because he needed the money "to put bread on the table." During the campaign, he complained that he was the only candidate forced to quit his job. But Williams never acknowledged during the campaign that officials with the Greater Washington Board of Trade and Arthur Andersen had helped him secure outside employment, starting last June.
The records submitted to the campaign finance office showed that Arthur Andersen paid Williams a lump sum of $30,000 on Aug. 31 but that the money was not deposited into his bank account until Dec. 21. Williams's aides said the mayor did not want to deposit it until he was sure his work was completed.
The Arthur Andersen documents show that Williams was paid for one speech at an annual gathering and 10 more meetings, including one where he taught a course to senior consultants on client relationships. The paperwork also shows that Williams appeared for Arthur Andersen at a chief executive officers' round table for a special edition of Fortune magazine.
Williams has said that he has a social relationship with Arthur Andersen senior partner Ira Goldstein, who helped arrange the contract with his firm. While serving as the District's chief financial officer, Williams authorized 45 contracts with Arthur Andersen for his office worth $4 million.
The documents also show that NationsBank paid Williams $2,000 a month from August through December. The last invoice was dated Jan. 4, two days after Williams was sworn in as mayor. Williams previously has acknowledged that he attended one luncheon meeting and was not required to submit any written reports in his work for the bank.
Electronic mail messages that the mayor turned over to the Office of Campaign Finance confirmed a meeting between Williams and bank officials on Tuesday, Nov. 10, a week after he was elected mayor. One e-mail message referred to Williams as "Mayor-Elect of the District of Columbia" and said that employees attending the meeting with Williams be prepared with questions about economic and community development and banking services to government entities.
CAPTION: An aide helps Mayor Williams with his jacket as he arrives for a private meeting with D.C. campaign finance officials. Williams said of his late financial disclosures: "This is a sandwich board that I'll have to walk around with forever."