This Dan Feldstein/Houston Chronicle article reports on the cozy relationship between two prominent Houston businessmen and Monique McGilbra, former head of Houston’s Building Services Department, who pleaded guilty earlier this month to federal bribery charges. Local political weblog blogHouston.net has been discussing this corruption story about officials from former Mayor Lee Brown‘s administration for some time, and it appears that Mr. Feldstein is bearing down on a story that could shake up Houston City Hall.
The Chronicle article reports that prosecutors claim in court documents that Keystone Group, through its principals Alan Schatte and Michael Surface, paid Garland Hardeman — who was McGilbra’s boyfriend at the time — $3,000 a month as a “consultant” when Keystone was seeking deals from the City of Houston through McGilbra.
Mr. Schatte is a well-connected local businessman with Democratic Party ties who has specialized in making deals with the City of Houston and made a small fortune from dealings with local governments that occasionally court controversy. He was one of the founders of BSL Golf, which renovated and now manages the municipal Hermann Park Golf Course for the City of Houston. Mr. Surface is chairman of the Harris County Sports & Convention Corp. that runs Reliant Park for the county. He and Mr. Schatte were the original owners in Keystone Group, which specializes in government-leased real estate projects.
The Chronicle reports that, through a spokesman, Mr. Schatte disclosed that federal authorities have not advised him that he is a target of a criminal investigation and that he denies any wrongdoing with regard to the McGilbra affair. The Chronicle could not reach Mr. Surface for comment.