Bank should turn over bond records

While the city has attempted to obtain the pertinent documents since last summer, Beaumont opted to issue the subpoena to compel the bank to cooperate without having to file a lawsuit. Consulting firm Urban Futures is presently attempting to reconcile the city’s bond records on behalf of the city. “We need a complete set of records for Urban Futures to complete the task,” City Attorney John Pinkney told the City Council.

City officials hope a clear picture of how the money was used could not only help inform the crafting of appropriate policies moving forward, but potentially hold people accountable if funds were improperly used.

As has now been firmly established, at the very least, the city has been plagued for years by unprofessional and negligent handling of taxpayer money. According to financial analyses released in May and July 2015 by accounting firm Macias Gini & O’Connell LLP, the city consistently failed to properly account for the money it had and engaged in inappropriate transfers of money.

With respect to bond funds, the State Controller’s Office reported in November the city failed to provide accounting records recording bond transactions. “We were given access to the former finance director’s computer files,” the report noted. “[H]owever, we were able to find only incomplete spreadsheets and copies of requisitions pertaining to the bond transactions.”

“Based on interviews of current city staff members and documents reviewed, it appears that the former finance director, city manager and public works director had complete control over the bond proceeds and each of them was personally benefiting financially,” the report continued. “In effect, this situation created a conflict of interest that the city failed to address or prevent from occurring.”

In alignment with the recommendations from the state, Beaumont pledged to reconstruct all bond transactions and determine whether unlawful payments were made. It’s all part of a critical effort to find out what went wrong, who was responsible and what can be done to prevent major failings in the future. We hope full cooperation is attained and that the city can sufficiently bring its practices up to the standards taxpayers deserve.