Judge Clears The Way For City Controller To Audit DWP Trusts

LOS ANGELES (CBSLA.com) — A judge has cleared the way for City Controller Ron Galperin to audit two trusts controlled by the union that represents Department of Water and Power workers.

Galperin will receive financial documents to find out how the International Brotherhood of Electrical Workers, Local 18, and union chief Brian D’Arcy, spent an estimated $40 million in ratepayers’ money.

The Joint Training Institute and the Joint Safety Institute have received about $4 million annually from the DWP’s coffers over the past decade.

The union had argued that the trusts are independent of the city, and therefore, not required to open their books.

City leaders called the judge’s decision a victory.

“Finally, the ratepayers of our city have the transparency that they have long deserved. Mr. Galperin is going to be entitled to get documents that substantiate how that money has been spent,” City Attorney Mike Feuer said.

Los Angeles County District Attorney Jackie Lacey is also investigating the trusts.

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