Invest Newark Cuts Ties With Councilman After Bribery Accusation

NEWARK, NJ — Newark city councilman Joseph McCallum has been removed from the board of a local nonprofit investment group, the group announced Wednesday.

Earlier this week, federal prosecutors announced that McCallum, a councilman in Newark's West Ward, has been accused of taking part in a "bribery and kickback" scheme involving local construction and development projects.

At the time of the announcement, McCallum, 65, was on the board of directors of Invest Newark, formerly known as the Newark Community Economic Development Corporation.

• See related article: Newark Councilman Should Resign If Bribery Charge Is True, Mayor Says

A spokesperson for Invest Newark confirmed that McCallum has since been removed from the board, and the group is “prepared to fully cooperate” with the U.S. Attorney’s Office on their investigation.

Invest Newark offered Patch the following statement on Wednesday:

“To be clear, Mr. McCallum did not have direct roles in the day-to-day operations and the allegations do not involve any present employee or board member of Invest Newark. Since our relaunch as Invest Newark in 2019, we have strengthened our policies and procedures to prevent conflicts of interest and protect against fraud. From overseeing a COVID-19 small business grant program, piloting a Section 8 Homeownership Conversion program, launching Newark’s first cooperatively owned company, and more, we take great pride in the future of Newark and we are committed to transparency and accountability.”

WHAT DOES INVEST NEWARK DO?

Invest Newark is a nonprofit organization that collaborates with the city on real estate and business development projects.

Over the past few years, the group has had a hand in several key projects in Newark, a spokesperson said. They include:

• Newark Paper Company: Invest Newark established the first cooperative business in the City of Newark with four future employee-owners. An example of equitable economic growth, Newark Paper Company is an employee share ownership cooperative that distributes office supplies and janitorial products. The ribbon cutting was held on August 26.
• Through grants awarded through the Newark Small Business program, more than 423 Newark businesses have received some type of monetary assistance, totaling more than $2.7 million. Invest Newark has also organized a series of COVID-19 assistance webinars with key partners to help small businesses navigate this challenging time.
• Newark Land Bank: The Newark Land Bank, New Jersey's first land bank, became official on April 7. The Land Bank will foster equitable economic growth through homeownership and development opportunities for Newark residents and developers. Policies, programs, and processes outlining the opportunities for residents, community partners, M/W/DBE contractors, and real estate investors alike are being finalized, and will be available on the Newark Land Bank website. The Newark Land Bank will officially launch in fall 2020.
• Invest Newark partnered with the City of Newark and Newark Housing Authority to implement a pilot Section 8 Homeownership Conversion that launched on July 17, 2020. In partnership with the City of Newark, LISC Newark, Urban League of Essex County, Newark Housing Authority and NACA, the program will convert 100 Section 8 renters into homeowners over the next 12 months.
• Invest Newark is leading a collaborative of Newark entrepreneurs and small business owners to launch ‘Our Business Newark Saturday,’ a marketing campaign to attract shoppers and visitors to Newark. The collaborative developed as a solution to the economic crisis faced by their own small business community due to the COVID-19 pandemic. Newark Our Business Saturday programming will include digital campaigns, digital convenings, activations, pop-up experiences aligned with the widespread promotion of Newark’s small business owners/ entrepreneurs. Activations will represent each neighborhood of our city in a series of in person and digital experiences that will highlight the diversity of our small businesses and economically empower them all.
• Newark Fiber delivers 10G high-speed, low-cost internet service to parts of Newark. Newark Fiber is prioritizing extending service to support public housing and public school properties. Not only is Newark Fiber bridging the city’s digital divide, it is also creating a national model for providing high-speed internet to communities in need. Offering state-of-the-art internet service is also essential in attracting industry-leading firms to invest in our city.

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