DETROIT -

RECAP: Three witnesses testified this morning to the potential misuse of state funds on two grants requested in 2000 by then Michigan state representative Kwame Kilpatrick.

Dan DeGrow, former Michigan state senator and majority leader for the Republican Party, and Mary Lannoye, former State Budget Director, were both asked to stretch their memories back 12 years to their time interacting with a young Kwame Kilpatrick when he was minority floor leader for the Michigan Democratic Party.

Both witnesses were questioned about the funding of 2 grants requested by Mr. Kilpatrick- one for the Detroit 3 Dimensional Community Development Corporation and the other for Vanguard Community Development corporation.

Several hundreds of thousands, close to half a million, were granted to the organizations.

During DeGrow's testimony on how Mr. Kilpatrick made pitches for funding of the grants for the 2 Detroit organizations, jurors heard that some of that money may have gone towards the refurbishment of contractor Bobby Ferguson's offices.

Lannoye, visibly irritated when cross-examined by Kwame defense lawyer Jim Thomas, revealed that she was angry when she found out Kwame's wife Carlita Kilpatrick's conflict resolution organization U.N.I.T.E. had received some of the grant money.

Jurors were on the edge of their seats as they listened to witness Donna Williams, former Executive Director at Vanguard, testify how Carlita Kilpatrick was paid $37,500- half of an invoiced $75,000- for services ultimately not rendered. Upon returning from her honeymoon in 2000, Williams was informed by now Bishop Edgar Vann of the Second Ebeneezer Church that they would be employing Carlita's U.N.I.T.E. Though she liked Carlita as a person, Williams felt she fell short on performing services promised.

Williams also told how an angry Kwame called to tell her she had "messed up" in submitting Carlita's invoice to the State Budget Office. The Budget Office initially cancelled a second installment of $150,000 to Vanguard for alleged misuse of funds. The funding was then re-instated but with the stipulation that there would be no more architect and U.N.I.T.E fees.

Witness testimony continues tomorrow at 9AM.

12:53PM Bullotta ends

Williams says she doesn't know what Carlita was thinking when they spoke about additional work.

Thomas asks if Williams knows that Carlita did free work during Kwame's administration.

Thomas then asks "Ms Williams as you sit there today are you clairvoyant?"

Judge Edmunds interrupts "Really Mr. Thomas?"

Thomas ends.

Judge reminds jurors not to read anything to do with the case.

Court reconvenes at 9AM tomorrow.

12:44PM Bullotta redirects for government

He asks Williams if not Carlita's fault, then whose.

Thomas objects. The judge overrules.

Williams says that she feels there were aspects of the contract Carlita could have fulfilled better. But there were also some difficulties in working with the Sherrard School.

Williams doesn't think Carlita could have had access to kids during school hours as a result. But could have accessed them after school.

Vanguard didn't make second payment to Carlita because it had been several months since they had last worked with her and because of stipulation on the re-instatement of the grant funding.

Exhibit D SG 6- the handout Carlita gave on her program. Bullotta says it does not mention the Sherrard School specifically.

Bullotta asks Williams if she thinks a single child in the school was helped by Carlita. Williams says no.