EDITORIAL KEEPING BAD COMPANY QUESTIONABLE LOAN TO SCOOTER COMPANY TURNS ROTTEN.BACK in early 2003, everyone could see that it was a bad idea for the Los Angeles Department of Water and Power The Los Angeles Department of Water and Power (LADWP) is the largest municipal utility in the United States, serving 3.9 million residents in 2006. It was founded in 1902 to deliver water and electricity supplies to residents and businesses in Los Angeles. to make a nearly $2 million loan without security to a Hawaiian company to build electric scooters List of scooter models per manufacturer Aprilia
Everyone, that is, except the top officials at the DWP DWP Department of Work and Pensions (UK) DWP Drinking Water Program DWP Dynamic Weapon Pricing (gamin, Counter-Strike: Source) DWP Department of Water & Power DWP Drinking Water Protection and then-Mayor James Hahn For the Iowa politician, see . James Kenneth "Jim" Hahn (born July 3, 1950) is an American politician from the Democratic Party. He was the Deputy City Attorney (1975-1979), City Controller (1981-1985), City Attorney (1985-2001) and Mayor of Los Angeles, California . In fact, they ignored the many warning signs that such a move was risky, not to mention a blatant waste of taxpayer money. They did so at the urging of a political supporter, the International Brotherhood of Electrical Workers The International Brotherhood of Electrical Workers (IBEW) is a labor union which represents workers in the electrical industry in the United States and Canada, particularly electricians, or Inside Wiremen, in the construction industry and linemen and other employees of public , Local 18, which represents many DWP workers. So this unknown and untried company suddenly received a windfall in the form of an unsecured loan Unsecured Loan A loan that is issued and supported only by the borrower's creditworthiness, rather than by some sort of collateral. Notes: Generally, a borrower must have a high credit rating to receive an unsecured loan. . Why not, they must have reasoned. After all, this was a time when the DWP was shelling out millions to a public-relations company (much of which later turned out to be part of an overbilling scheme) and even more to prop up the city's sagging general fund. Surprise, surprise. Personal Electric Transports Inc. is delinquent on the $1.88 million repayment that was due this week, and it's making noise like it's a victim of the DWP and it's ready to sue. To his credit, DWP chief Ron Deaton, who joined the utility after the loan was issued, never thought the scooter company was a good risk when he was the City Council's chief legislative analyst. He is now trying to recoup the lost funds with legal action. Angelenos can only hope that bad ideas such as the scooter investment will be a thing of the past now that the city has new management at the DWP, a new mayor and new DWP commissioners. |
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