Tuesday, December 13, 2011

L.A. City Controller Releases FULL AUDIT Revealing DETAILS of L.A. Housing Authority (HACLA) FEDERAL MONEY SCAM -- MARIA DEL ANGLE=NAMED IN REPORT (Read FULL REPORT HERE - iRadioLIVE.com)

THIS EXPOSES WHAT I HAVE BEEN SCREAMING ABOUT...AND RUNNING FOR OFFICE, ABOUT: FAKE NON-PROFITS, SET UP TO FUNNEL IN FEDERAL MONEY, WHERE IT IS WASHED, THEN THEY USE IT FOR WHATEVER THEY WANT!" But, that is only to quote the L.A. City Councilmember who said that, today, during the council agenda item on this matter. MORE TO COME at iRadioLIVE.com

FOR IMMEDIATE RELEASE                                         
December 13, 2011                                                                           

L.A. City Controller Releases Housing Authority Audit;
Councilmembers Join in Calling for Swift Reforms

LOS ANGELES -- The L.A. City Controller released the first phase of her investigation of the Housing Authority of the City of Los Angeles (HACLA) and declared that reckless spending and lax travel policies allowed for thousands of dollars to be wasted on lavish meals. Greuel also uncovered instances of double and triple dipping and inappropriate reimbursements and charges for hotel rooms that went unused.

“Los Angeles taxpayers are being duped by Housing Authority officials who claim to serve the poor but instead recklessly waste public money to support their lavish lifestyles,” said the City Controller. “Angelenos deserve better. There must be zero tolerance for this type of out-of-control spending and fraudulent activity.”

The first phase of the Controller's audit uncovered numerous unallowable expenses and excess costs. Examples of thousands of dollars of questionable or unsupported travel expenses include:

  • Public safety representative Scott Butler was approved to drive an agency vehicle to San Diego but instead paid airfare exceeding gas cost and left the conference early to take a flight to Chicago, unnecessarily charging a night in a hotel that was not used;
  • HACLA board member M. Del Angel paid costs for other travelers who were not HACLA staff and for whom executive approvals were not provided;
  • Planning representative John King had meals paid in excess of $1,000, which is above the allowed per diem. The charges did not identify the names of individuals served, what was consumed to rule out the purchase of alcohol, and the business transacted at the group meal;
  • Planning representative John King had excess meal costs for triple-dipping relative to meals for which subsistence was claimed while meals were also charged to HACLA’s P-card while meals were also provided at the conference. The audit also questioned a “no show” hotel charge in Chicago because King was in Philadelphia for another conference; and
  • HACLA board member B. Stotzer did not prepare appropriate forms and only provided minimal receipts for hotel and baggage fees. Stotzer seldom provided receipts and instead signed a certification stating expenses were for HACLA business.
 The City Controller had released preliminary audit findings a few weeks ago which revealed Agency officials spent $300,000 per year on travel in 2009 and 2010. At that time, it highlighted irregular travel expenditures, including staff reimbursements for sight-seeing tours.

The Controller said, whistle-blower complaints about questionable spending practices in other parts of HACLA make it clear that the Agency leadership created an environment for wasteful spending and fraudulent activity.

“These findings, combined with the golden parachute for the recently ousted Chief Executive Officer, demonstrate that taxpayer funds have been misappropriated and the Agency has been mismanaged,” said the Controller. “What’s more alarming is that these findings are just the tip of the iceberg.”

Since initiating the audit last Spring, Agency officials created numerous obstacles and a hostile audit environment.

“My concerns continued to grow as HACLA leadership kept delaying, making it extremely difficult for my auditors to obtain information needed for this audit. Many employees expressed fear to come forward with information, exemplifying the culture of the Agency. Employee intimidation tactics cannot and will not be tolerated,” added the L.A. City Controller, who did nothing about any  of this, and never does, until a TV investigative reporter exposes it first, along with the FBI investigations, as reported in the news media..

During the course of the audit, many red flags were exposed not just regarding HACLA’s travel policies, but also regarding its P-Card program and its LOMOD program, HACLA’s non-profit corporation thatfunctions as a Contract Administrator for project-based Housing Assistance Payments contracts.

“It is unfathomable that an Agency dedicated to creating and maintaining affordable housing for the poorest families in Los Angeles spent taxpayer money so irresponsibly when funds are insufficient to provide desperately needed housing in the City of Los Angeles,” said Greuel. “I appreciate the City Council and Mayor for supporting my efforts for a comprehensive top-to-bottom financial review of the Agency, which includes both of these programs. Reforms are critically needed and the second phase of my investigation will serve as a roadmap for rehabilitating the beleaguered Agency.”

The Controllers comments were made just prior to a City Council presentation in which she discussed the problems that have plagued the Agency including news that taxpayers footed a $1.2 million golden parachute to ousted Agency official Rudy Montiel.

Other concilmembers gave support to the Controller's call for action, after they let it all happen, and did nothing till exposed by the media and gadflies.

“The Housing Authority of the City of Los Angeles is responsible for serving the needs of our most vulnerable residents – I don’t understand how these questionable expenses fall in line with the core responsibilities of this Agency. As an elected official and steward of the public’s money, I intend to ask the tough questions that will get us answers,” said a Councilmember, in front of cameras, referring to the City Council presentation. “Once we’ve gotten our answers though, our work is not done. We also need to make sure that this doesn't happen again, in this Agency or any other, and we must push for serious consequences for everyone involved in wrong doing.”

The Controller audit is attached. Controller Greuel has conducted more than 40 audits and uncovered nearly $100 million that the City has lost to waste, fraud, and abuse over the last two years. [THANKS FOR TELLING US. That's only what's uncovered in your occasional audits. IMAGINE HOW MUCH THE REAL TOTAL IS. No WONDER the city is cutting services at record, unsafe levels in 2012 and 2013.

To view the entire report, please click here.

FOR THE RECORD: Do you have ANY IDEA how many times the Controller managed to work her name into the sentences? I think it was a press release for HER. It was inserted EVERYWHERE!

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