ORANGE COUNTY IN BANKRUPTCY : BOND TICKER : No More Diversions Found
A Price Waterhouse audit of financial records found no more instances of the county diverting interest payments due cities and school districts in the county investment pool, officials said Tuesday.
The Creditors Committee, which represents agencies that invested in the collapsed county pool, ordered the audit after county officials revealed last month that $85 million in interest due investors was diverted into two special accounts. The diversion began in August, 1993, and continued until the county declared bankruptcy in December, according to county officials.
Price Waterhouse combed through thousands of pages of county financial documents dating back to 1991 to see if any other funds due investors had been diverted.
“At this time, we know of no other instances out there,” said Irvine City Manager Paul O. Brady Jr., who represents cities on the Creditors Committee.
--Complied by Shelby Grad, with Matt Lait and Eric Bailey.
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