New Revelations Elicit Bad Feelings of Deja Vu : Reaction: Officials and activists left in disbelief at grand jury transcripts--just as they were last December.

For civic and political leaders following the county bankruptcy, revelations contained in grand jury transcripts obtained by the media this week provided an unsettling reminder of a year ago when the unfolding financial crisis dominated the holiday season.

County leaders, city officials and activists used words such as “stunning” and “unbelievable” to describe the transcripts--much the same reactions they registered 12 months ago when details of the nation’s worst municipal bankruptcy were just beginning to emerge.

“It’s been a year, and we are still hashing this out. It’s disappointing,” County Clerk-Recorder Gary L. Granville said. “I wish we had come farther by now. It seems like we are still at the starting line, looking at who is to blame.”

The hundreds of hours of grand jury testimony indicated that at least two dozen county officials knew about problems at the treasurer’s office months before the Dec. 6, 1994, bankruptcy but either did nothing or in some cases covered up the irregularities.

Moreover, some officials testified that former Treasurer-Tax Collector Robert L. Citron used an astrologer and psychic to help make risky investment decisions, which led to a $1.64-billion loss.

The transcripts also revealed that some top county leaders repeatedly tried to lay blame for the fiasco on others.

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The details left many observers shaking their heads.

“It’s distressing to see how this government really works,” said Jean Askham, a leader of the League of Women Voters. “You get the picture of a lot of people knowing things but not wanting to ask the questions that would make this house of cards fall down.”

Mayor Algird Leiga of the east Los Angeles County town of Claremont, which invested money with Orange County, said: “It’s both shocking and tragic that someone in a high political position would sink down to the point of using an astrologer. It confirms our worst suspicions about what was going on.”

Current Treasurer-Tax Collector John M.W. Moorlach, who raised concerns about investment policies in his unsuccessful run against Citron in June 1994, said the transcripts describe a clear lack of “accountability and responsibility” on the part of some officials.

“All I see is concealment and cover-up,” Moorlach said. “It’s really disturbing.”

The testimony detailed how many county leaders chose not to challenge Citron about his financial practices because they considered such a move politically risky or beyond the scope of their jobs.

“Why be in a position of power and leadership if you are afraid to use [the power]?” Moorlach asked. “It’s spineless.”

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County officials expressed the hope Friday that this week’s revelations would not sidetrack efforts to recover from bankruptcy and restore the county government’s tattered credibility.

Supervisor Marian Bergeson, who joined the board a month after the bankruptcy filing, said the grand jury testimony underscores the need for decisive government reform.

“I think there needs to be strong leadership from the county to show that we are not on autopilot and that we moving forward,” Bergeson said. “These accusations don’t help. There are significant challenges we need to overcome.”

In March, voters will decide the fate of a proposed charter designed to restructure county government. Bruce Sumner, chairman of the commission that drafted the charter, said the proposal addresses many of the problems highlighted in the transcripts.

The charter would place day-to-day operations squarely in the hands of a strong chief executive officer--a change that Sumner said would fill the leadership gap he said opened in the months leading up to the bankruptcy filing.

The charter would also convert the treasurer and auditor jobs from elective to appointive positions. Sumner said the change would result in the selection of the most qualified candidates.

“There are lessons to be learned” from the transcripts, he said. “It really dramatizes the need for clearly delineated lines of responsibility. The charter provides that.”