STATEMENT FROM MAYOR BILL WHITE ON MAYOR PRO TEM OFFICE INVESTIGATION
March 6, 2006 -- Today there are a couple of actions underway to prevent abuses like those which occurred by staff in the Mayor Pro Tem's office and make accountable those employees who took advantage of the public's trust.
The OIG report reveals a pattern of misconduct by four employees of the Mayor Pro Tem's office. Culpability appears to vary greatly, with the lowest paid two employees, who worked for the others, more in the position of follower. There is some evidence of attempts to conceal these activities. Employees in that office improperly used the delegation of signature authority by the Mayor Pro Tem to authorize and document certain actions concerning their own compensation. I found in the report no credible evidence that Mayor Pro Tem Alvarado was involved in any aspect of these payments or the scheme. There was no evidence of kickbacks to any person or collusion with anyone in the Payroll Division or any other personnel outside the staff of the Mayor Pro Tem.
The OIG report finds violations of City laws by four employees. The report has been turned over to the District Attorney's Office for further action. The City's Code of Ordinances prohibits employees from using one's official position . . . to secure special advantage . . . for the employee or others." That Ordinance, as well as a written Mayor's policy concerning Falsifying Records, appears to have been violated.
Beyond these facts, which are necessary to explain personnel actions, I will avoid commenting about specific statements by witnesses to avoid compromising any investigation.
Hearings have been scheduled for tomorrow to consider the employment status of the four City employees who received improper payments. The City's Chief Administrative Officer, Anthony Hall, will be conducting the hearings and is expected to make a quick decision. Those hearings are necessary under civil service law to terminate the employment of a civil service employee.
By the end of the day I expect to circulate to City Council members an explanation of current City procedures for compensation adjustments and certain changes affecting the Mayor Pro Tem's office. The Administrative functions of that office will be reduced. Some responsibilities now handled by that office will be assumed by the individual Council offices and the Department of Human Resources.
I have talked to the City Controller and Director of Finance and Administration. They have undertaken to review procedures in their offices to determine if there need to be changes in procedures and controls in light of the circumstances of this case. But please remember that no organization with over 20,000 employees can eliminate all risk of violations of existing laws against self-dealing. Swift and severe actions such as those described by me today constitute the most significant deterrent to future misconduct.
There has been much discussion of the status of Mayor Pro Tem Alvarado. She has served effectively as a representative of her district and as a leader on Council. Those roles, and her effectiveness in those roles, are independent of the limited functions of the Mayor Pro Tem in law, which consist of presiding in the Mayor's absence and some administrative functions for Council. Council Member Alvarado has taken responsibility for the Mayor Pro Tem's office. Senior officials in the public and private sector routinely delegate authorizations. We have laws to prevent misuse of this trust and I will ask the District Attorney to enforce those laws. I will ask the City Attorney to attempt to recover amounts overpaid to the employees. Council Member Alvarado has been cooperative and supports these actions.
