Schuette alleges that Flint, which was under a state-appointed emergency manager at the time, was unable to borrow its share of the money to participate in the $285-million Karegnondi Water Authority pipeline to Lake Huron. The project was being pushed by Genesee County and Flint wanted to leave the Detroit system, which had been supplying it with treated Lake Huron water from Lake Huron, in favor of the new pipeline, which would provide the city with untreated Lake Huron water. By using an ordered environmental cleanup at a sludge lagoon used by the Flint Water Treatment Plant and tying that project to the KWA development, officials were able to use the administrative consent order to keep the KWA debt from counting against Flint's almost non-existent borrowing capacity. Schuette alleges the "sham" administrative consent order, which one of his assistants signed off on, also had the effect of forcing Flint to get its drinking water from the Flint River — with disastrous results — until the KWA project was completed.
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