Calif. Controller Orders City Of Cudahy To Repay $22.7M In Taxpayer Funds

CBS Los Angeles

CUDAHY (CBSLA.com) — Officials in the city of Cudahy had virtually no oversight in place to prevent the misuse of taxpayer dollars when it spent nearly $23 million in redevelopment funds, according to state audits released Tuesday.

The assessment from California Controller John Chiang was outlined in several audits examining the city’s internal controls and fiscal management practices, as well as its compliance with state laws governing the use of transportation and redevelopment funds.

During the period between July 2010 and June 2012, auditors found questionable leave pay, violations of the city’s contract code, uncontrolled credit card spending and mismanaged state grant funds. Chiang also reviewed redevelopment asset transfers and ordered $22.7 million in redevelopment assets to be returned to the agency.

« They used their credit cards improperly, they misspent, they wasted good state tax dollars that had to be returned back to the state, » Chiang told KNX 1070 NEWSRADIO.[cbs-audio-player…

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