
Waste Watch – New Audit Uncovers “Ghost of State Fund Past”
As this year winds down, it is only appropriate that we have the ultimate wasteful story to help us go out with a bang. Insurance Commissioner Steve Poizner deserves many thanks for providing this story. If it weren’t for his direction of the Department of Insurance, hundreds of millions of dollars may have been squandered without notice. Fear not, “the Ghost of State Fund Past” has now come to haunt former Insurance Commissioner and current Lieutenant Governor John Garamendi in the form of the biggest audit released this year.
According to the Los Angeles Times (December 11, 2007), a hard-hitting state audit reveals that "California’s scandal-plagued government-run workers’ compensation insurance company spent more than half a billion dollars over the last decade for outside marketing help that often provided ‘minimal services’….[T]he report paints a picture of an obscure rogue operation with more than $22 billion in assets, little oversight, minimal public checks and balances, and indiscriminate spending with little attention until… Read More