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(NBC Washington) — The District of Columbia will pay $550,000 to settle a claim by Banneker Ventures, the firm owned by Friend Of Fenty Omar Karim.

The city terminated a contract with Banneker last year as the D.C. Council probed the deal. Banneker had been hired to oversee the building of new ball fields and rec centers, but the Council stepped in last fall after learning that Mayor Adrian Fenty’s administration had moved money through the D.C. Housing Authority for the projects in order to get around a law requiring Council approval on any contracts exceeding $1 million.

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