ORANGE COUNTY IN BANKRUPTCY : DAILY DEVELOPMENTS

SUPERVISORS STRIKE BACK

Federal investigators were well aware of the county’s financial slide and did nothing to stop it, some Orange County supervisors said. “We asked them for help and they said, ‘No, hands off, we’re not going to do anything,” said Supervisor Roger R. Stanton. “Now the only thing they have done, from the lips of the chairman, is to start throwing rocks.” On Thursday the chairman of the Securities and Exchange Commission, which has subpoenaed supervisors’ documents, suggested that voters should oust officials who are so lax in oversight.

AUDITS TURNED UP LITTLE

An outside auditing firm in 1993 found only one small problem in the office of county Treasurer-Tax Collector Robert L. Citron and repeatedly issued all-clears on the county’s investment fund. The firm, KPMG Peat Marwick, has contributed more than $9,000 to supervisors and candidates for those jobs over the past 15 years. Now county officials and lawyers for fund investors see the firm as a target to blame for the county’s financial mess.

SOME CASH GOING OUT

Orange County supervisors approved a plan to distribute cash to schools, cities and agencies in danger of not meeting payrolls or missing other crucial payments. The action would release up to $153 million from the now-frozen fund. A bankruptcy judge must still approve the action.

SAN DIEGO ANNOUNCES LOSS

San Diego County has lost $357 million in risky investments, the county treasurer announced, terming the shortfall “paper losses.” He asked fund investors not to pull money out for fear of sparking a run on the account.

PORTFOLIO SALE GOES ON

The liquidation of Orange Count’s portfolio continued, with Salomon Bros. auctioning off another $1 billion in securities.