A statewide investigating grand jury is looking into Harrisburg's finances during the administration of former mayor Stephen Reed, according to abc27 News sources.
Two sources said the focus of the grand jury, empanelled in Pittsburgh by state Attorney General Kathleen Kane, is a forensic audit that looked into how the city's trash incinerator piled up massive debt.
The audit released in 2012 found that the multi-million dollar debt resulted from a series of bad decisions and unheeded red flags during a 2003 upgrade of the incinerator.
The grand jury also is investigating whether any city officials committed perjury when they testified about the incinerator debt before a state Senate committee in October 2012, according to the sources.
The sources said the grand jury is additionally looking into past finances of the Harrisburg School District.
Dauphin County District Attorney Ed Marsico turned the case over to the attorney general's office about a year ago, the sources said.
Harrisburg Mayor Eric Papenfuse confirmed to abc27 News that he testified before the grand jury, but he refused to comment on what he told the jurors.
Papenfuse also confirmed that the city recently turned over documents related to the financing of the incinerator retrofit to the state attorney general's office.
He said the city has been cooperating with the investigation.
A spokesperson for the attorney general's office would neither confirm nor deny an ongoing criminal investigation.