July
2, 2014
Imperial
Valley Press
By
Heric Rubio
CALEXICO — Calling the report
biased and a distortion of the truth, officials on the Heffernan Memorial
Healthcare District board are refuting many of the investigation findings
published in the 2014-2015 Imperial County Civil Grand Jury regarding the
district and its alleged misuse of funds.
A follow-up on work completed
by the 2012-2013 ICGJ panel, the investigation looked into a complaint concerning
the HMHD, finding that the district was in non-compliance from the previous
year. Also investigated by this year’s panel was a complaint received regarding
the MegaPark LLC land purchase involving HMHD, according to the ICGJ Final
Report of Findings.
ICGJ’s findings following the
investigation include “the appearance of improprieties of handling
tax-generated money” in the district’s dealings with MegaPark LLC, the
expenditure of approximately 94 percent of HMHD’s budget for the past
five years on “administrative costs,” such as board stipends, staffing expenses
legal fees and questionable donations and “no practical present reason for
continuing with the operation of HMHD.”
However, HMHD board officials
call these findings “unprofessional, and in some instances, plain false.”
“We’re very surprised at the
report and surprised that they completely distorted facts,” said Eduardo
Rivera, HMHD general counsel. “It’s such a falsehood that we are amazed at the
temerity of the report writers in making these statements.”
Specifically, Rivera
highlighted one section of the ICGJ report that states, “HMHD had elected to
cover each member with full medical health care. That care averages $17,000.00
per member per year.”
“That’s an absolute falsehood,”
he said. “Where they got that information we don’t know.”
Rivera made note that there
used to be a $17,000 annual payment for board member public liability
insurance, in case an instance such as a lawsuit against the board should
occur, which he believed may be where the ICGJ investigative committee found
that number.
“How can you confuse public
liability insurance with health insurance?” he asked.
Also made public in the
report’s findings was an average legal representation expense of $9,000 per
month, with the jury committee unable to “get a good description of what the
legal rep does for the board.”
“The legal representative’s
bill was as low as $4,000 per month and up to $18,000 for other months,” notes
the ICGJ report.
“My last billing was about
$1,800 per month,” Rivera countered. “For them to take five years and round it
out is wrong, unfair and doesn’t state the facts.”
He went on to defend his
position by pointing out litigation in years past against HMHD, which may have
resulted in higher lawyer fees due to the scope of work necessary at the time.
In regard to HMHD’s dealings
with MegaPark LLC, an “unsecured property purchase ... derived from funds from
the (Joint Powers Association),” the report states HMHD board members explained
they were approached by MegaPark partners who “wined and dined” them, treating
them “like they were on a trip to Disneyland,” which led to the HMHD board
being convinced that the “purchase was perfect for the citizens of the
district,” and using $500,000 of the district’s funds for what was essentially
a non-refundable down payment on the land purchase and a new Environmental
Impact Report.
When deadlines for the EIR went
unmet, HMHD attempted to recoup the monies spent on the project, though not to
the best of their abilities, according to the report.
“The ICGJ committee found no
evidence of any effort from the HMHD to follow up on the ownership of the
property,” notes the report, explaining that the investigating committee was
unable to find evidence that the property was ever intended to be transferred
to from MegaPark LLC to HMHD ownership.
“(HMHD) made no effort other
than one letter (to MegaPark LLC),” said Roy Caldwell, ICGJ foreman. “They were
just letting the money go.”
MegaPark LLC member Larry
Bratton, who was unaware of the ICGJ findings, said his only statement was, “I
thought this was all hashed out a year or two ago. All I know is we’re still
going forward as if it’s still a good deal.”
Other report findings refuted
by Rivera and board member Sylvia Bernal include a $650-per-month landscaping
fee, money being held in multiple bank accounts for “no purpose other than to
cast a shadow of a doubt on the accounting practices of the board” and
donations made to local sports leagues.
“Never have we ever spent or
done something we shouldn’t do,” Bernal said. “I am hurt and disappointed with
the grand jury because they are putting out lies. Why would we put ourselves in
a situation where it’s going to come back and haunt us? This is embarasssing
for me, for people to think we’re stealing money. We would never do anything
that would hurt the city of Calexico.”
Caldwell upheld all statements
and findings published in the grand jury’s report, saying, “We have the backing
of all their accounting books. It’s 19 of us doing these investigations. It’s
not like it was just one person looking.”
He went on to explain that upon
initial investigations, everything seemed fine, but as the committee delved
deeper and spoke to people with knowledge of the district’s workings, more and
more discrepancies began to appear.
“The thing I did get from
everybody I talked to was that they did not feel these people were criminals,”
Caldwell said, “but they did not feel they have the education to run a board
like this. They were just running with it.”
The ICGJ finished its report
with the recommendation that the HMHD board voluntarily dismantle itself and
turn over all records to the Imperial County — California Association of Local
Agency Formation Commissions and freeze all assets for review by the Imperial
County Auditors Office.
Staff Writer Heric Rubio can be
reached at 760-337-3442 or hrubio@ivpressonline.com
No comments:
Post a Comment