Swaps and more swaps
Nov 20th, 2009 by Randy Toman
The Easton Press carried this article November 19, 2009 by Sara K. Satullo “Pennsylvania Auditor General calls for ban of swaps after investigation in BASD financial dealings”.
I’ll be quoting and numbering the short paragraphs from the above stated article.
1. “To end the districts four outstanding swaps would cost taxpayers $25.6 million before fees as of Friday.” (I assume they mean 11/20/09)
2. “Terminating immediately would be an incredible burden. Leeson president of the Bethlehem school board said, It would break the back of the school board.”
3. “Auditor General’s office and Rob Teplitz chief counsel for Jack Wagner’s office, said the office is concerned the swaps could continue to lose money.”
4. “There is a whole line of responsibility but ultimately and finally it rests with the board,” Wagner said.
5. “The district’s former financial adviser, Les Bear, seemed to have apparent conflicts of interest during the swap transactions since he also represented the interests of counter-parties.” Wagner said.
Quoting from the same paper another article “Report Highlights” Nov. 19th, 2009 we have this.
6. “A past and current board member each said they felt someone, although they did not name anyone, may be financially benefiting from the district’s long-term relationship with its financial adviser, Les Bear.”
I have quoted and numbered the 6 short paragraphs from the Easton Express, I wish to make two points with regards to these quotes.
If Ms. Leeson knows these swaps, if terminated, would be an incredible burden now, (#2) how can she look into the future and tell us they (BASD) would not be in a worse position in the future, costing the taxpayers even more money when terminating them. Certainly Rob Teplitz and the AG’s office feel that way and say exactly that.(#3)
My second point has to do with the fact that the school board and administration really has no mechanism at which the taxpayer can force them to respond. If in fact quote number #4 is true and the responsibility ultimately lies with the school board, that board has no way of responding to a written grievances such as put forth by the Concerned Citizens of Bethlehem Area School District (CC-BASD). CC-BASD has been forced to wait for a single board member who volunteered their time and effort in attempting to get CC-BASD answers. CC-BASD and their members were continually told we must come to the meetings to hear the answer to there concerns, all the while getting, at best, bits and pieces and/or no answer at all.
With nothing being done, and the new superintendent making the statement to me he didn’t know whom CC-BASD was. It was stonewalling of the 10th magnitude on all sides. Even letters too both county DA’s offices has netted at best a return letter from Northampton saying they have received our letter, with Lehigh saying nothing.
I would like to call both DA’s offices attention to the Easton Express’s quotes in their article “Report Highlights” my item #6 from above.
“A past and current board member each said they felt someone, although they did not name anyone, may be financially benefiting from the district’s long-term relationship with it’s financial adviser, Les Bear.”
Let me also quote additional material from Ms. Satullo article.
“The district paid ‘excessive fees’”.
“The district former financial adviser, Les Bear, seemed to have apparent conflicts of interest—-.”
“The report found Bear failed the district, Leeson said.”
Somewhere there is something wrong Mr. DA, if there isn’t then the poor taxpayers have no protection and they had better start thinking about throwing the TEA into the harbor. (Lehigh River)
We Shall See and Shortly