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What Now?! June 23, 2004 Dear Governor Schwarzenegger: Subject: Gross inefficiency and Bad Management at California Public Utilities Commission. The Concerned Staff Committee would like to draw your attention to the following incidents of bad management and incompetent leadership at the California Public Utilities Commission. The State Audi to r's Report 2003-121, May 2004, reports (pages attached) that the Rail Safety Program Funds were mismanaged by CPUC MANAGEMENT The State Audi to r concluded that CPUC Management “cannot ensure that it spends Rail Road Safety Program Fees in Accordance with State Law.” This means the unlawful use of state funds. The state Audi to r described the findings as “gross misconduct” and noted that such conduct should not be condoned. In light of the Audi to r's findings, it is highly appropriate and necessary that those responsible should be disciplined -- DEMOTED OR FIRED. The State Audi to r's Report paints a picture of CPUC managers lacking in competence. However, the Concerned Staff Committee holds the view that the funds' diversion was not due to mere incompetence but the result of a conscious decision by management. It should be emphasized that CPUC management does not have the authority or power to override the legislatively mandated use of the Rail Program Safety fees. Thus, the actions of management were definitely illegal. Please note that the findings of this Audit report are similar to others Performance Review Audits of special funds in CPUC. However, those responsible for incompetent and unlawful performance not only have kept their jobs but in many instances have also been promoted to higher positions. Is this the kind of Governance one should come to expect from the State? Sincerely, Yaya
Fanusie , Ph.D |