There must be hidden halls within the labyrinth of government where city, state and federal officials ask themselves, “Why don’t they like us? Why don’t they trust us?” Yet too often we find a lack of ethics in local government. It’s no wonder that local and state governments are calling often to inquire about effective ethics training. Too many times the lack of ethics in local government has terrible consequences.
Notwithstanding the perception among many that our nation has developed a “political class,” is the notion that given the chance, our elected and appointed officials will find a way to take advantage of us. When there is a foul-up, others in government will point to those “fouling up” and say, “Well, that’s an isolated case.” Is it really so isolated?
According to a September 2015 Gallup Poll, 75% of us, regardless of political affiliation feel there is widespread government corruption. If you live in Beaumont, California, I would hazard the number is closer to 100%. Here there is a clear lack of ethics in local government.
In a USA Today article entitled: “DA: Corrupt officials siphoned $43 million from Calif. City,” we learn that the former Beaumont city manager, finance director and other officials ripped off the city to the tune of $43 million over 30 years. It wasn’t just one official, it was seven officials in a gluttonous free-for-all where the officials, ranging from attorneys and economic development directors to city planners and finance directors, found ways to steal money and put it into their private corporate accounts.
“’The bottom line is, they victimized the entire city,’” said FBI agent Colin Schmitt, who oversees a task force that raided Beaumont City Hall last year. The same team raided Palm Springs City Hall in September.”
The $43 million in stolen funds includes a $6 million loan given to a business without any expectation of payback. Ethics? I don’t think so. The lack of ethics in local government is impossible to miss in Beaumont.
When Ethical Checks and Balances are Non-existent
The scam in Beaumont has been going on since the early 1990s when the city established a relationship with a company that issued bonds and when funds for transportation were supposed to be sent to Western Riverside Council of Governments, and instead the suspects allegedly kept the money, and awarded the funds to their own companies for other projects.
According to the article, when the audit of the corruption was concluded it was found:
“None of this should have gotten past the City Council, but somehow it did. It is difficult to understand why the City Council would ever approve or condone having the city’s executive management team’s personal business enter into such agreements with the city. Basically, the city management and the City Council failed to exercise its fiduciary responsibilities in protecting taxpayer dollars.”
Three officials of the city had second jobs as executives in consulting firms that did business with the city allowing them to approve payments to their own companies. Sometimes the officials were so brazen, they didn’t filter their ill-gotten funds through their own companies, and they just paid themselves directly from the city coffers. Again a lack of ethics in local government.
Now, of course, the City Council is angry at the DA for dragging his feet in prosecuting the officials because they want to restore taxpayer confidence! After 30 years of neglect, the City Council should be the last group of people to be critical of anyone dragging their feet. A fish stinks from the head down – so the City Council should ask themselves what did they do to promote ethics. Their inaction contributed to a lack of ethics in local government.
This case is a prime example of what occurs in an environment devoid of ethics, checks and balances, oversight and a complete lack of control. It is also a disregard for those of us whose interests are supposed to be protected.
The City Council is in the process of hiring interim managers. Why, I wonder, aren’t they hiring experts on training their people ethical behavior? While I understand it may appear self-serving for me to recommend an ongoing ethical training program, what could be “less serving” than robbing the very same taxpayers who trusted you of $43 million? While you can’t force someone to be ethical you can train to reduce a lack of ethics in local government.
The seven officials made choices that resulted in terrible consequences not only for themselves but for the entire city. In the very latest developments, it appears as though these defendants were also active in scamming other California cities as well. I have no doubt of this fact, for ethics programs within government are few and far between. They are ripe and set-up for such scandal.
It all comes around to underscore the fact that 75% of us believe government is corrupt. Frankly, I am amazed it is not higher.
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