CCTA WATCHDOG REPORT: Eastern Council of Governments

CCTA Members and Friends,


There is an 800 pound gorilla in area government that we should all be concerned about.

EASTERN CAROLINA COUNCIL OF GOVERNMENTS

The county website states that Commissioner Tyson is on the Executive Committee of the Eastern Carolina Council of Governments, and that James Walker (I believe that is JR Walker) is on the General Membership Board. The county website states that the functions of the General Membership Board include approval of the agency's annual budget and work plan, approval of amendments to the Bylaws, and the election of officers. There is no description of the functions or purpose of the Executive Committee on the website.

Well, let me tell you some things about this organization that you might not know. One of their stated activities is to help counties in their planning (toward a UN Agenda 21 designed future, I'm sure, since, as we know, regional organizations are their favorite venue). They also help government entities, and others, apply for grants. I think if I hear that word again, I might throw up. They have also "managed" (I use the term loosely) the Department of Agriculture's Revolving Loan Fund. The very existence of these Councils of Government has been called into question by a number of people recently. I don't wonder.

First, there was the removal of the President of the Eastern Carolina Council of Governments, Sondra Riggs, in early 2011. She has been quoted as saying, "Audits for 2009 and 2010 highlight major issues with the board's oversight of the loan program, and a financial report showed more than $659,000 of back payments owed has been written off. The Eastern Carolina Council of Governments is now liable to the federal government for that money. When you lose that kind of money, it just makes me sick all over. You do not rock the boat or you will be taken off."

Next, the treasurer of the Eastern Carolina Council of Governments, Robert Masters, resigned. He is quoted as saying, "On a professional level, I cannot and will not be associated with any government organization that is so totally unaccountable for taxpayers' funds."


Robert Masters owns a non-profit organization that specializes in writing grants, and he is personally involved in "revolving loans."

The Sun Journal reported on 25 July that the Eastern Carolina Council of Governments director, Larry Moolenaar, had also resigned.

LET ME MAKE IT CLEAR; I HAVE NO KNOWLEDGE OF ANY WRONGDOING ON THE PART OF MR. MASTERS OR ANYONE ELSE CONNECTED WITH THE EASTERN CAROLINA COUNCIL OF GOVERNMENTS. However, this situation bears a marked similarity to the situation in Kinston where state Representative Stephen LaRoque was indicted for fraud. LaRoque was indicted because of a scheme to defraud the taxpayers by forming "non-profits" to manage federal Department of Agriculture loans to businesses, and then contracting with his own corporation to manage the non-profit. The amount "allegedly" misappropriated totals $557,582 according to an extensive article in the Sun Journal on 19 July 2012.

Many of the details outlined in that article remind me of the Eastern Carolina Council of Governments with its former Treasurer who was in the "revolving funds" loan business and with it's $659,000 of defaulted loans written off. Did Robert Masters, or any other person associated with the Eastern Carolina Council of Governments, or any organizations with whom they were associated, make money off making these Department of Agriculture loans? A more recent article in the Sun Journal stated that the "Eastern Carolina Council worked with the Economic Development Administration (EDA) to end the revolving loan program." Councilman Tyson told me that he and some others determined that it was unsuccessful and should be halted. The last I heard at a Board of Commissioners meeting, the Eastern Carolina Council of Governments had hired a lawyer to help straighten out the Revolving Loan Program. How much was he paid? Did he accomplish anything?

The Jacksonville Daily News reported that since 2007, the Economic Development Administration suspended the operations of the Eastern Carolina Council of Government's Revolving Loan Fund and sequestered its money three times. There were also scathing audit reports. What were the "previously noted procedural discrepancies" in the 2007 audit?

A Sun Journal newspaper article on 25 July stated that the Economic Development Administration requested that the Eastern Council of Governments make a repayment of $128,643 with the termination of the revolving loan program. Why was this? Was that an administrative fee for managing the loan? If so, to whom was that paid? And what about the remainder of the $659,000 Ms. Riggs, Past President of Eastern Carolina Council of Governments, said would be liable for repayment? Was that just forgiven? After all, it's just taxpayer money!

I want to again state my belief that Craven County should withdraw from the Eastern Council of Governments. There is way too much opportunity for abuse in handling huge sums of taxpayer money for the federal government and too many foxes in the hen house.

Commissioner Tyson also told me that this board has a budget of around $6,000,000 (yes, Million) a year, and it mostly is spent on the elderly. I'm 75 and haven't seen a cent of it! Have you? And why should taxpayers' money be spent on the elderly anyway?

Respectfully Submitted.

Hal James

CCTA Watchdog Committee Chairman

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