After more than 15 years and millions in donations, nothing has come of the National Museum of Industrial History here on the Southside. Suspicious of its activities following a number of media reports over the years, Northampton County District Attorney John Morganelli initiated a Grand Jury investigation in 2012 to determine if the operation was aboveboard.

Morganelli filed the Notice of Submission of Investigation with the Honorable Edward Smith, Supervising Judge of the Northampton County Investigating Grand Jury Dec. 5.

The 40-page finding report, released Jan. 30, details monies gained and spent as NMIH President Stephen G. Donches announced opening dates in 2005, 2010, 2011 and 2013. During that time, at least until 2010, it was reported $8 million had been spent, yet only $2.8 million had gone to construction. According to investigating accountant Dennis Houser, $2.4 million had been used to pay Donches between 2002 and 2011, and $182,000 in 2012 and 2013.

Houser said NMIH board member Theodore W. Harlan had since 1999 been paid more than $750,000. He also reported many hundreds of thousands of dollars spent on artifact storage and consultants – some of whom were never approved by the board of directors.

The report also indicated conflicts of interest from board members and inconsistent of lack of formal processes in board decision making.

Morganelli's report calls the NMIH a rest home for former Bethlehem Steel Corp. executives and accuses Donches and the board of severe mismanagement.

Though unwilling to speak to The Bethlehem Press directly, Steel Museum CEO Steve Donches and Board member L. Charles Marcon have issued written statements, taking strong exception to the Grand Jury report.

Donches accuses Morganelli of personal antagonism. He stated his compensation, deemed excessive by the Grand Jury, is based on a study prepared by a compensation expert. He indicates that museum construction has been hampered by 9/11, a "severe economic recession" in 2004, and yet another in 2008.

Donchez also denies the conflict of interest allegations presented against board member Lee Butz. Though his construction firm received more than $2.8 million in payments, there was full disclosure. He also reminds everyone that the Grand Jury made no finding of criminal behavior.

Echoing that reminder, board member L. Charles Marcon called the museum a "prime motivating force" in the revitalization of the brownfield once known as Bethlehem Steel. He denied that the Museum is "shrouded in secrecy," noting that it files an annual tax return that us available for public inspection. Marcon did not address his own conflict of interest in bidding on projects, nor did he respond to the conflict of interest allegations made against Lee Butz. He promised a more complete response from the board itself, after it meets in the next week.

Mayor Bob Donchez's only comment is, "I believe the board needs to evaluate its goals and mission to determine if their original goals are still relevant."