Oakland Mayor Thao questions motives behind FBI raid

( KRON ) — Two weeks after federal agents executed a raid on the home of Oakland Mayor Sheng Thao, residents of the East Bay’s biggest city are left with more questions than answers.

Why is the FBI investigating the powerful Duong family, and how is Thao connected to them?

Who exactly are the billionaires that she claims are trying to boot her out of office?

Will the sale of the Oakland Coliseum, which has massive implications for the city’s budget, go through?

But as Oaklanders wonder about their mayor’s involvement in the potential scandal, how she plans to manage a tricky budget situation, or whether she will even be in office next year, Thao still has some questions herself.

In an interview with KRON4 on Wednesday (above), Thao provided an update on the many critical issues facing herself and the city and claimed that she also doesn’t have the answers to questions many are asking.

FBI Raid

FBI agents arrived at Thao’s home on the 100 block of Maiden Lane early in the morning of June 20. Thao’s partner answered the door, and agents were in the house for hours before leaving with bags and boxes.

KRON4 has reported that the raid is related to alleged campaign finance violations. The FBI has been tight-lipped about what it is investigating, and Thao said she has questions just like everyone else.

“Any questions in regards to the investigation should be asked to the FBI and the U.S. Attorney’s Office. Again, just like I stated in my statement, I have many questions as well,” she said.

Thao maintained her innocence in her interview with KRON4 on Wednesday and shared that she is not the subject of the federal investigation.

The mayor’s home was one of four addresses that were raided that day. The other three locations were connected to the Duong family , which owns Cal Waste Solutions.

The recycling company has provided Oakland’s recycling services since 1992. David Duong is also the CEO of Cal Waste Solutions and chairman of the Vietnamese American Business Association, which sponsored Thao’s first official overseas trip to Vietnam last year.

When asked about her relationship with the Duong family on Wednesday, Thao downplayed any close connection.

“As mayor, I meet with a lot of community members and business owners,” she said. “As you know, the Duong family owns a business that operates here in the City of Oakland. Like with any other elected official, we take pictures with them and we explore ways that we can work together to help the city move forward.

“But if you have questions in regards to the Duongs and the investigation, again, I would implore you to ask the U.S. Attorney’s Office.”

Recall Election

In her first time addressing the public since the raid, Thao delivered a spirited monologue where she claimed "a handful of billionaires" in San Francisco and Piedmont were "hellbent" on getting her out of office.

The mayor is the subject of a potential recall election. More than 40,000 people signed a petition for a recall measure to be added to the November ballot, which was submitted two days before the raid. The Oakland City Council will meet on July 16 to determine whether the recall will be on the ballot.

Thao told KRON4 she is “concerned” about the timing of the two events, saying the raid “created the suggestion of wrongdoing in the face of an election.”

“I’ll say it again. I have questions as well about the circumstances around the search warrant,” she said. “And the media should have the same questions.”

Thao is also wondering who is funding the recall effort. She said the Public Ethics Commission is suing the group behind the recall effort, titled Oakland United to Recall Sheng Thao (OUST), over failing to disclose who its donors are.

“I believe that Oaklanders deserve to know the truth about who is funding this recall,” Thao said. “It is extremely troubling that recall organizers are refusing to cooperate with law enforcement, and we should all be concerned and question the why. Why are they hiding information about who their top donors are?”

In her speech last week, Thao brought up billionaires in neighboring cities being behind the recall effort, but when she was twice pressed for specifics on who these people are, she said that was a question she herself still has.

“This is a question we should all be asking,” she said. “This is a question that I have, is like, who is it that is trying to get me out of office, but at the same time trying to withhold their identity?”

Thao also mentioned “right-wing forces” working against her in her speech, which has been mocked on social media by her detractors. She did not bring up the right-wing forces in her interview with KRON4.

Balancing the Budget

As all of this was going down, Thao and the city council were attempting to work out a budget that was fiscally responsible but did not cut public safety services for a city that just saw a mass shooting and several homicides . The city is facing a deficit that one city council member said is as high as $177 million.

The city council voted 5-3 in favor of a budget proposed by Thao, which will use $63 million from a not-yet-finalized sale of the city’s ownership stake in the Oakland Coliseum. The influx in cash would prevent slashing funds from the Oakland Police Department and Fire Department.

“You need a leader to be able to think outside of the box,” Thao told KRON4, “and that is exactly what we’re doing. This budget will enable us to maintain the steady and significant progress we’ve made in reducing crimes, cleaning our street.”

However, the Coliseum sale remains up in the air. Oakland Police Officers Association President Vice President Tim Dolan called it “ controversial and doubtful ,” and Thao has a backup budget in place if it does not go through.

If the sale falls apart or the first payment from the buyers is not in by Sept 1, the city will fall back on a “contingency plan” featuring $63 million in cuts to city services. Not all of the city council members were on board with Thao’s plan. Treva Reid, Noel Gallo and Janani Ramachandran all voted against it.

"I am not only deeply disappointed but frankly shocked by the wildly irresponsible choice made today by the Oakland City Council to close this budget deficit with money we do not yet have," Ramachandran said. "With the sale of the Coliseum nowhere near being finalized, incorporating $63 million into this year's budget from a future Coliseum sale is an ill-considered risk."

The budget plan supported by Reid, Gallo and Ramachandran would have temporarily closed four fire stations, eliminated two police academies and provided funding for just 610 police officers — Thao’s plan has funding for 678 officers, still fewer than the current number of 712.

In her interview with KRON4, the mayor had harsh words for the three council members who did not vote for her plan.

“I want to be clear, there were three council members who supported having 610 officers… that is actually reckless, and it’s abhorrent. We know that people will be dying if that’s the case,” Thao said.

The budget in place would at least solve some of the city’s financial issues, but the question of whether the Coliseum sale goes through looms over the city.

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