AP Exclusive: Water giant gave $1.4M loan to official
Source: Associated Press
AP Exclusive: Water giant gave $1.4M loan to official
Ellen Knickmeyer, Associated Press Writer
Updated 6:37 pm, Thursday, June 9, 2016
SAN FRANCISCO (AP) — A California public water district that earned a rare federal penalty over what it described as "a little Enron accounting" loaned one of its executives $1.4 million to buy a riverfront home, and the loan remains unpaid nine years later although the official has left the agency, according to records and interviews.
Westlands Water District says its 2007 loan to deputy general manager Jason Peltier — now at $1.57 million with a 0.84 percent annual interest rate — is allowed under agency rules on salary.
But experts in governance say the deal raises red flags, not just over the unpaid loan and its generous terms but over whether Peltier and Westlands complied with laws mandating disclosure of the use of public funds.
"Show me the statute that allows this," said Peter Detwiler, long the top consultant, now retired, to the California Senate on local government finance.
Read more: http://www.chron.com/news/us/article/AP-Exclusive-Water-giant-gave-1-4M-loan-to-7972212.php
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general manager Jason Peltier[/center]
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