NEW YORK, NY April 23, 2008 —Dozens of grants to non-profit groups all over the city are being held up, as the fallout from the City Council's phoney group scandal continues. We get more from WNYC's Bob Hennelly.

REPORTER: City Comptroller Bill Thompson has put the brakes on about a hundred grants to non-profits that the City Council already signed-off on. Thompson is trying to determine weather the money for them had been held in one of the dozens of phony groups used as cover.

THOMPSON: I think the biggest thing here we have had phantom organizations where dollars where held against those. If there are dollars that are attached to these contracts that came from those organizations we honestly believe that is an issue and we are not going to move forward on those.

REPORTER: It will be up to the city's Department of Investigation to sorting out which grants are tainted. Last week DOI and federal prosecutors charged two former City Council staffers for embezzling tens-of-thousands of dollars from a Council-funded non-profit. For WNYC, I am Bob Hennelly.