Scandal Rocked West Basin Suspends Programs

At the board meeting on August 25, the West Basin Municipal Water District Board of Directors unanimously voted to suspend the use of the directors' outreach and sponsorship funds, pending the results of a combined forensic and financial audit. These funds will be one of several areas evaluated in the independent audit that was approved by the Board as a result of the alleged charges of misuse of public funds against Director Ronald C. Smith.

Smith was charged with using public funds to pay for rent, boat repairs and tuition, dance and tennis lessons for his children, according to the Los Angeles County District Attorney's Office.

Smith, pleaded not guilty in Torrance Superior Court to two felony counts of misusing public funds, one felony count of conflict of interest and four felony counts of filing a false affidavit.

In announcing the changes Director Donald Dear, West Basin Board of Directors President stated, "This is another step to improve our transparency and is a renewed commitment to our communities and ratepayers that our Board will take necessary actions to ensure sound financial resource management now and for the future," said The audit scope of work will include thoroughly reviewing West Basin's Code of Conduct and interviewing key staff and District Counsel to identify any potential areas of concern. Within the Code of Conduct, the audit will evaluate the use of director expenses that include sponsorships, directors' outreach funds and other related programs. The audit will begin next month and conclude in December 2014. The auditing firm will provide the Board of Directors recommendations regarding possible amendments to the current Code of Conduct.

"On August 7, the Board removed Director Ronald C. Smith from all Board committee leadership roles after removing him from the position of Board Treasurer," said Board Vice President Gloria Gray. "We have also directed staff to pursue obtaining a District Transparency Certificate of Excellence. The District Transparency Certificate of Excellence program, created by the Special District Leadership Foundation, is an effort to promote transparency in operations and governance for special districts. I believe these actions will help ensure the public's trust."

While technically still a member of the board, Smith's legal problem have effectively reduced the board to three functioning member with the retirement and subsequent death of longtime board member Ed Little. Board members were deadlocked on a replacement for Litte and opted to leave Little's seat vacant until the November election.