Thursday, 11 September 2008

Detroit in a Dark Comedy

Back in February, the city council asked the city auditor to conduct a complete audit of the mayor and his operations. This week, after the mayor handed over his resignation, as part of a plea deal....the auditor reappeared and said that the entire case to check out the mayor is pretty much stuck. It will not be resolved, because the mayor has left.

Adding to this comedy.....the auditor (a private company), has asked for $1 million in payment for its services. The state demanded that the city conduct a complete audit before they'd hand over $200-odd million. So the council kinda stood up in the beginning and agreed to a price of roughly $450k, more or less....and this latest demand has the council shaking their heads.

Here's where things get interesting with this auditor agency....the guy who owns it....had declared bankruptcy. He owes around $230k in funds to several folks....including the IRS. So on top of the $450k they already paid....another million will be necessary to finish up this deal.....to make the state happy and hopefully the city gets their fingers on the $200-odd million that the state is holding.

If you had to pick the most screwed city in America....it'd be tough to beat Detroit. I have little confidence in this city's managers fixing and improving things.