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ORANGE COUNTY IN BANKRUPTCY : Auditor General No Stranger to Trouble : State: Kurt Sjoberg has investigated several fiscal scandals on public’s behalf. But some question the clout his office can bring to the Orange County situation.

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TIMES STAFF WRITER

In enlisting State Auditor Kurt Sjoberg to help unravel the riddle of Orange County’s fiscal crisis, Gov. Pete Wilson tapped a veteran numbers-cruncher whose findings command respect in state government.

But that did not stop some from grumbling that the auditor has no follow-through or enforcement powers of his own--or from wondering when state officials might take strong action in response to Orange County’s debacle.

Sjoberg has been the eyes and ears of the public in numerous financial scandals since his appointment 16 months ago, the governor’s office points out. His investigations have uncovered financial irregularities or sloppiness in the state lottery, the Department of Motor Vehicles, the Education Department and more.

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Sjoberg is being brought into the Orange County flap by a man who knows well the skills that are needed: county financial adviser Thomas Hayes, who was the state auditor general before becoming state treasurer in 1988.

“This is something that Tom recommended to the governor,” said H.D. Palmer, assistant director of the state Department of Finance. “Tom wants to cover all the bases diligently.”

Sjoberg could not be reached for comment Sunday. But Palmer said he “wouldn’t concur with any assessment” of Sjoberg that underscores his lack of authority to enforce recommendations.

“Kurt is very respected, and the Legislature has responded well to his past findings,” Palmer said. “I think a great deal of attention would be paid to Kurt’s work and the findings by his team.”

Likewise, Wilson spokesman Sean Walsh dismissed questions about Sjoberg’s clout.

“He’s going in to assess the situation and to give Orange County a hand,” Walsh said. “These are expert accountants and, political criticisms aside, their assistance is a valuable resource.”

Specifically, Sjoberg and his crew will examine Orange County’s income to see whether it matches what the county needs to pay its bills. But his role will not necessarily be limited to that. He may also be relied upon to determine how to protect incoming receipts and future revenues from raids by creditors.

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In December, 1992, Sjoberg nearly saw his office shut down because of government coffers emptied in the wake of Proposition 140’s budget-slashing provisions.

But the governor and Legislature moved in to restore funding after determining that the auditor’s office saved taxpayers $6 for every $1 spent on its audits.

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