By Nina Mandell
DNAinfo Reporter/Producer
MANHATTAN—A Charles Rangel-backed charity has had city funding cut while the Department of Investigation probes its finances.
Alianza Dominicana, which has received $66 million in city contracts since 1985, has had its cash flow stopped while its accounts are scrutinized, the New York Post reported.
The news came a week after reports that troubled Congressman Rangel had signed off on a publicly-funded $2.6 million grant for the Washington Heights charity.
The Post reported that Alianza Dominicana owed its employees hundreds of thousands of dollars in back pay, and had one executive resign over what he considered questionable accounting practices.
A 2008 audit found "significant deficiencies in internal control over financial reporting," the Post reported.
The Post's research also found the charity, which was founded to help revitalize economically distressed neighborhoods, owes money to the IRS, building suppliers and the state Insurance Fund.
Rangel, a Democrat who represents Harlem and Washington Heights, secured the $2.6 million from the Upper Manhattan Empowerment Zone in June. It was earmarked for a new $19 million headquarters for the charity.
The Rangel-sponsored Upper Manhattan Empowerment Zone also guaranteed two mortgages, totally $5.3 million, taken out by the charity, according to the Post.
