California's Red Ink Problems

" As are red -- watch week continues we turn out of the state levels are our individual states combating waste fraud abuse. Our case study today California. The state is receiving an estimated 55. Billions dollars in stimulus major huge -- here's a breakdown health and human services nineteen point five billion education eleven point eight. Labor five point two billion transportation. Four point seven billion energy. Three billion and there was more water environment two point five science and tech two point four housing two point one. Public safety 700 million and a mysterious. Other category again we get these other categories we don't know what's in him that according the administration's stimulus tracking website. The other category gets three point three billion by the -- 55. Billion dollars total potential that five to 10% of that may fall operated crooks criminals cheats. And just about five billion dollars worth of waste and fraud that our tax dollars could be stolen on or wasted on joining me now is the woman -- trusted to prevent stimulus corruption in the Golden State in Sacramento we welcome Laura chick she is the first and only inspector general. Dedicated to stimulus spending in the United States thanks so much for joining us appreciate it. Happy to be here now you've been on the job for about five months -- so what have you found."

" Haven't found any glaring problems yet but. When you know that's not just wishful hopeful thinking I think that's to be expected because the money is just starting to flow. Not -- huge amounts of that out on the street for a very long period of time. And I've been mostly in what I'm calling the preventative stage you know getting. The word out on the street down what not to do what to do. And I guess the best way for me to describe it is busy putting the fear of god begin to. I had counties sell local jurisdiction community based organizations. Really putting them on notice and saying you know we're watching don't --"

" Well particularly now that you have the Acorn modeled to -- to -- in front of say look you know you can lose everything I -- have a model in mind though argues that a prosecutorial. Model is it like Liz Warren the who's who's the overseer of the TARP program. You have a specific model."

" No I don't think cash you would say have a specific model I mean I am creating this job as I go. And very much looking to join hands with what I'm calling the oversight family so I've been very busy in those earliest months. Forming connections and the teen lived for instance the US attorneys in California. The federal inspectors general who have gotten and nice chunk of change to -- you know beef up their operations. This state wide dead district attorney's. Local auditors. And I would tell you that the prosecutors. Are rubbing their hands ready. I'm very serious about. Going after anything that spot to their attention now who if I fly -- And forgive me for interrupting if you find something who actually goes out and makes the arrest. It would be a variety of folks who could be the FBI is part of this clue I'm describing to you. Or would be US attorney or it could be the local district attorney. And trust me we are really a tight -- everybody is. Holding hands ready to work together. In what ever is the best way nobody's going to be bumping into each other on this. We're all part of vigilante team I would say."

" Now it yet you have some areas of concern that work investment board's summer youth programs. Whether -- is Asian subcontractors. And transportation projects. Here they all are exactly how are you going to monitor these programs."

" Well you know when I when the governor hired me for this job I made a commitment to him that I wasn't an empire build I mean we all know. The economy here in California is she is tight you know -- state workers have been furloughed so. I don't have a lot of running room to be going out and hiring auditors I am working. Whidbey auditing an investigative team that already is hard at work in state departments that are receiving. We -- three dollars and we have been sitting down putting together an oversight plan. Some of this is staff the State's already been doing because you're used to handing out federal dollars but we've tightened up. So for instance some departments. Have already put some of their community based organizations in the high risk category. Based on their past track record some of those agencies have even been decertified they'd been deemed not worthy of getting further federal dollars -- And the state is looking for agencies can do a better job for instance of home insulation -- work and weather station -- But -- you know we've got high risk factors that are. Bringing certain agencies to our attention."

" I have a little advice for your lower shake it why don't you actually hired those kids that did the the acorns things. I mean boy they they got evidence that led to a congressional action unlike any I've never seen before if you. If there -- a lot of young people young budding journals would love to go out healthier is that someplace you might go."

" Well you know as a set I'm not looking to be hiring a whole bunch of people I'm trying to use. Some of the auditors investigators that the state already has some board as well as. That rested at oversight family the FB IX better but. You know one of the things we've been busy doing is doing fraud prevention training and trying to raise the awareness. People who are making these grants what to watch out for whether the red flags you know how to detect. Companies that are shell companies. Companies that are padding their bills six -- because one of the things I learned is. Former city controller for the city of Los Angeles. Is government is pretty good at handing the money out we haven't always been so good about making sure that we're giving it to those who just."

" value we -- and share. And the gas and the western watch or listen fraud is going to be rental we gotta we gotta go but please let this be the first of many interviews we have. Use the scoreboard is a vehicle to get the message out thank you for being your best selecting it. Thank deal well with --"