It’s Time for a Clean Start : Orange County post should be filled with someone with no ties to crisis

Among the key concerns raised by the bankruptcy of Orange County is accountability. Now disturbing new disclosures prompt even more questions about who oversaw the county treasurer’s office, and how well.

Over the weekend, auditors announced that interest earnings that should have gone into the accounts of public agencies investing with Orange County had been diverted into two funds allegedly controlled by Robert L. Citron, the treasurer who resigned last month just before the county declared bankruptcy. Auditors said the money had not been embezzled and would be returned to investors. Top county officials said they were unaware of the diversion and even of the existence of one of the funds--a troubling statement that again raised the issue of who was keeping tabs on Citron.

The supervisors met in closed session Monday to discuss firing the county administrative officer, Ernie Schneider, but wound up demoting him and announcing a nationwide search for a new top county administrator. Schneider--who said he, too, was surprised by the news of the diversion--has been the target of criticism for his response to the bankruptcy and his plans for cutting the budget by at least $170 million over six months.

The supervisors must beware of making Schneider the scapegoat for this largest municipal fiscal failure in U.S. history, a loss estimated at $1.69 billion. Nor should he be punished merely to satisfy any supervisor with whom he disagreed over other issues.

The Board of Supervisors has been denounced for not reining in Citron. Although he was an elected official, the supervisors appropriated the money needed for him to run the treasurer’s office and had the power to approve his investment practices.

In their search for Schneider’s replacement, the supervisors would do well to rule out any candidate who was involved in the voluntary deposit of any agency’s funds in the county’s investment pool. The board can opt for a fresh start with a new administrator whom they will hold accountable for cleaning up the mess.