LOS ANGELES (CBSLA.com/AP) — The Los Angeles Department of Water and Power has cut off funding to two affiliated nonprofit institutes after questions surfaced about how they spent more than $40 million in ratepayers' money.
The two entities were established to improve relations between management and labor after a series of department job cuts in the late 1990s.
While the institutes receive as much as $4 million a year, DWP Commissioner Jill Barad Banks told KNX 1070 NEWSRADIO both DWP management and unions have been very slow in providing answers about how that money has been spent.
DWP Commissioner Jill Barad Banks
"It's like they say, where there's smoke, there's fire," Banks said. "Why can't they provide this information, particularly when it's the ratepayers...it's their money."
The Commission on Tuesday asked City Controller Ron Galperin to carry out a full audit of the trust accounts.
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