By Associated Press - Thursday, February 6, 2014

PITTSBURGH (AP) - A management consultant appointed to a $96,000-a-year job as director of Pittsburgh’s new Office of Management and Budget owes the Internal Revenue Service $83,000 in back taxes.

Edward Kiely was appointed to the newly created office Wednesday by newly elected Mayor Bill Peduto.

Kevin Acklin, Peduto’s chief of staff, says the mayor was aware of Kiely’s tax problems, which stem from a former client of Kiely’s consulting business. Kiely has arranged to repay the money to the IRS and has already satisfied related city, school and state income tax liens totaling about $6,300.

Acklin says Kiely’s tax problems aren’t a “statement of his integrity or his character or his capability.” Instead, the chief of staff says the 68-year-old consultant “has substantial experience as someone who focuses on performance-based budgeting.”

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