Bell eliminates loan program

New officials learn city had given out $900,000 in loans to former city administrator, two current council members and other employees.

Bell Mayor Oscar Hernandez is one of several council members and other city employees to take advantage of a loan program that was apparently started by former City Manager Robert Rizzo. The new city administration Tuesday announced it was terminating the loan program. (Photo by Gary McCarthy)

By WAVE STAFF AND WIRE SERVICES

Story Created: Aug 19, 2010 at 12:31 PM PST

Story Updated: Aug 19, 2010 at 12:31 PM PST

Tools

BELL — The city has announced it has ended a loan program devised by former City Administrator Robert Rizzo, interim City Administrative Officer Pedro Carrillo said Tuesday.

The city gave nearly $900,000 in loans to Rizzo, city employees and at least two City Council members, the Los Angeles Times reported in a story posted on its website Tuesday.

“Since learning of the loan program, it was immediately terminated,” Carrillo said. “We are in the midst of determining who benefited from the program and how much money remains to be paid back to the city of Bell.

“Once that determination has been made, payment will be immediately requested.”

Documents reviewed by The Times show that former assistant city manager Angela Spaccia received two loans of at least $100,000 each and City Council members Oscar Hernandez and Luis Artiga received $20,000 loans.

Former City Councilman George Bass also received a $20,000 loan.

Rizzo received two loans for $80,000 each, city officials told The Times.

At least 50 people received loans in the last eight years, Carrillo told The Times.
Some loans were repaid over years, others were open-ended, Carrillo told The Times. The collateral appeared to be unused vacation time, sick leave and pensions.

The interest rate was tied to a fund managed by the state treasurer, The Times reported.

Rizzo’s attorney, James Spertus, told The Times nothing about the loans “strikes me as unlawful” and Rizzo has become “the target of a witch hunt” simply for being rewarded for his performance at Bell as an administrator who guided the city to solvency from the brink of bankruptcy.

Public finance experts told The Times it is highly unusual for cities to have loan programs for employees.

Former Inglewood Mayor Roosevelt Dorn in January pleaded guilty to a misdemeanor conflict of interest charge that involved him taking advantage of a city loan program that was originally intended for city administrators.

Add a comment

Name:

Comment: 1000 Characters Left

Los Angeles Wave and its affiliated companies are not responsible for the content of comments posted or for anything arising out of use of the above comments or other interaction among the users. We reserve the right to screen, refuse to post, remove or edit user-generated content at any time and for any or no reason in our absolute and sole discretion without prior notice, although we have no duty to do so or to monitor any Public Forum.

On Demand

This content requires the latest Adobe Flash Player and a browser with JavaScript enabled. Click here for a free download of the latest Adobe Flash Player.