Audit Finds Bell Faces ‘Fiscal Crisis’ After Corruption Scandal

LOS ANGELES (CBS/AP) — An audit by the California state controller’s office reveals that the city of Bell is still reeling financially three years after it was discovered the working-class suburb’s municipal leaders had looted millions of dollars from its treasury.

State Controller John Chiang released the audit Wednesday.

He says it shows Bell’s general fund balance has a shortfall of more than $1 million. Bell also owes its residents more than $3 million in taxes and fees that were collected illegally.

Chiang praised the city’s new leaders for conducting business honestly and taking other steps to turn Bell around since residents voted the entire City Council out of office two years ago.

But he says if these and other financial woes aren’t addressed the city faces a “fiscal crisis.”

(© Copyright 2013 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)


Leave a Reply

Fill in your details below or click an icon to log in:

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More From CBS Los Angeles

KNX 1070 Newsradio

Listen Live