The California State Senate Committee on Governance and Finance this week issued a report entitled Misappropriated Bond Proceeds at the Association of Bay Area Governments with reference to the embezzlement of proceeds from a municipal bond issued by the ABAG Finance Authority for Nonprofit Corporations (FAN). It provides a clear summary of how the embezzlement took place and illuminates the complex public policy challenges that this embezzlement presents to policymakers.
Earlier this year, Governance and Finance Committee Chair, Senator Robert Hertzberg, announced plans to undertake this oversight report and the State Treasurer announced creation of a Special Task Force on Bond Accountability to identify best practices for managing bond proceeds and increasing transparency and oversight. This Senate oversight report lays a foundation for the Special Task Forces work.
The report can be found on the State Senate website.