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Audit Reveals Former South Gate Officials Approved Improper Contracts; Recalled City Council Members Increased City's Legal Costs By More Than Tenfold.

Business Wire

| January 30, 2004 | COPYRIGHT 2004 Business Wire. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Business Editors/Political Writers

SACRAMENTO, Calif.--(BUSINESS WIRE)--Jan. 30, 2004

State Controller Steve Westly today released an audit showing that former South Gate officials cost the city millions in improper contracts. The City of South Gate requested the audit in March 2003 following a period of political turmoil in which three city council members and the city treasurer were recalled.

The State Controller's Office audit examined city legal costs and compliance with contracting and hiring procedures that led to a significant decrease in the city's reserve funds during the previous city council's administration.

"South Gate's former officials broke their own rules and squandered millions of taxpayer dollars," State Controller Steve Westly said. "The city's legal costs increased tenfold from $403,108 to $4,659,318 in one year."

The Controller's audit ...

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Source: HighBeam Research, Audit Reveals Former South Gate Officials Approved Improper...

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