
Waste Watch – Board’s “Unhappy Family” Leads to Audit
The recent unfavorable audit of the Department of Insurance under the direction of former Insurance Commissioner John Garamendi must have sent aftershocks throughout California state agencies. Among the strange effects, a state board has asked to be audited.
Audits are generally not something agencies want. They are expensive and result in lost jobs, funding, and autonomy. So why would an agency inflict such scrutiny upon itself? According to The Sacramento Bee (December 12, 2007), "The California Unemployment Insurance Appeals Board [asked for an] audit to get to the bottom of allegations of criminal wrongdoing and possible favoritism and nepotism." The board-commissioned investigator and attorney "found that familial connections were common at the board. All but one of the board’s four or five senior staff, for example, had relatives working at the board." The new Appeals Board chairman told the Bee "that one senior staff member… has five family members who have been… Read More