LOS ANGELES — An audit of Cudahy, Calif. by State Controller John Chiang found misuse of taxpayer dollars, use of city credit cards for excessive travel, vacation and meals, contract violations, and mismanaged state grant funds forcing the city to return some money.
The controller also reviewed redevelopment asset transfers and ordered $22.7 million in redevelopment assets to be returned to the successor agency of Cudahy's former redevelopment agency.
"These audits found that the city's prior leaders displayed little regard for fundamental accounting and fiscal management practices necessary to promote transparency and protect taxpayer dollars," said Chiang. "Very few controls or checks and balances existed to guard against corruption, abuse, and fiscal mismanagement. The few rules that did exist were not followed, and questionable spending was rampant."
The audit of the Los Angeles County city was completed at the request of city officials elected to replace those swept out of office in 2012 in the wake of state and federal corruption investigations into the city of 23,000.
"Cudahy leaders deserve credit for wanting an independent review of their internal controls and for moving quickly to address the major gaps in the prior administration's accounting and management practices," Chiang said.
Cudahy was one of several eastern Los Angeles County cities that include Bell and Vernon that have faced state and federal investigations for allegations that city leaders were pilfering from city coffers.
Former Mayor Jack Guerrero and Chris Garcia, who was vice mayor at the time and is now mayor, requested the audit after a federal bribery investigation in June 2012 resulted in the arrest of three city officials on charges of extortion and bribery.
The controller provided the city with a draft report on Feb. 6.
Steven Dobrenen, the city's finance director responded by email on March 5 that the" city did not dispute the findings and is in the process of implementing our recommendations."
