The federal investigation into the affairs of Mayor John Street originated from a government agency probe of a supposed cocaine distribution ring, according to The Philadelphia Inquirer.
As a result of the inquiry into possible political corruption, Street's office was bugged last October, only weeks before the mayoral elections.
The FBI was originally investigating a drug ring led by 29-year-old North Philadelphia resident Kaboni Savage, who was arrested on drug-trafficking charges on Tuesday. During the drug case, FBI agents picked up the name of Imam Shamsud-din Ali in wiretaps. Ali's phones were therefore also tapped, leading to the political corruption investigation.
Ali had discussed obtaining contracts for a company he owns, Keystone Information & Financial Services Inc., with city officials and politicians. Such conversations gave federal authorities the basis for planting additional wiretaps in the phones of lawyer Ronald A. White, a friend of and major political fundraiser for Street.
According to the Inquirer's sources, White often used Street's name in business discussions on the phone. It was for this reason that agencies were granted permission to bug the Mayor's Office.
City officials have repeatedly declined comment on the ongoing investigation and continued to do so yesterday. FBI officials also refused to comment.
The discovery of the bug on Oct. 7, 2003, brought a whole new dimension to the elections. Street and his supporters were quick to raise allegations of racial motivation for the investigation. Political consultants attributed his landslide victory partly to the phone taps.
It quickly became common knowledge that a corruption investigation was under way. The day after the bug in Street's office was discovered, the FBI raided White's and Ali's offices.
Ali has denied all accusations of a link to drug circulation. In an interview with the Inquirer last week, he called the suggestion "ludicrous."
Ali was incarcerated for five and a half years for a murder conviction that was later overturned in the early 1970s. Since his release from prison, Ali has become an important cleric in the city's Muslim community and is a firm supporter of Street and Pennsylvania Gov. Ed Rendell.
In the Savage probe, federal agents overheard drug dealers discussing payments to Ali, according to Inquirer sources. Dealers cooperating with authorities provided similar information.
"He's walking with kings, and we're out here on the streets hustling," said a source in quoting a conversation between a dealer and another person.
According to one dealer's lawyer, his client said these payments were made so Ali would grant permission for dealing to continue.
Ali and his wife claim no knowledge of drug money entering Ali's mosque, Philadelphia Masjid.
Authorities continue to investigate Savage and his possible ties to Ali. Savage will appear at a U.S. District Court hearing today.
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