The issue arose because both officials have indirect connections with the cable companies seeking franchise renewals from the Board of Estimate.

Under the new City Charter, the board will have no authority over franchise renewals after June 30.

That was the date the estimate body voted, in a surprise move, to preliminarily deny franchise renewals to the Manhattan systems.

The Federal legislation passed by Congress in 1984 also extended franchise renewals, which previously came up for review within three years.

"Of course I'm worried about the negative reports," Karches said when asked how the raids might affect the franchise renewal.

Following the 2010 general election the funding for planned works was withdrawn and the 2011 franchise renewal delayed until 2013.

Executives said some questions were irrelevant to the transfer and had more to do with franchise renewal.

The sessions "politely embarrassed them by holding their franchise renewals over their heads," he said.

"And I'm not saying it couldn't become an issue in another franchise renewal."

Furthermore, it failed to deliver proposals that year for franchise renewal due in 1998.