Auditor reports on a crooked agency

The California State Auditor regularly issues reports on misspending of taxpayer funds, but the office’s latest report hints at something worse than usual.

The California Prison Industry Authority (CalPIA) was found to have given nearly $1.3 million in unlawful gifts to other state agencies. “The executive with direct knowledge of these gifts refused to answer our questions about the reasons for them,” the auditor’s report states, “instead invoking the Fifth Amendment ...”

That’s not good. The auditor also reported that CalPIA “repeatedly circumvented the civil service hiring process.” It was the policy of CalPIA to advise employees “to avoid the hiring of anyone in a relationship that could create conflict between the private interests of the employee and his or her public obligation.”

But CalPIA executives used their influence to “preselect desired candidates, including relatives and friends, for jobs and promotions.” And you guessed it, “When we interviewed a high-ranking executive regarding these unlawful appointments, the executive refused to answer any questions, invoking the Fifth

Amendment...”

Everyone is entitled to exercise their rights, but taxpayers have the right to expect highranking government officials to meet a standard higher than that.

CalPIA was established by the Legislature in 1983 as a self-supporting state agency to operate enterprises that provide work opportunities for incarcerated individuals under the jurisdiction of the Department of Corrections and Rehabilition. The programs produce more than 1,400 goods and services. It takes in about $250 million a year.

The money that comes in is used to pay all of CalPIA’s expenses, and any surplus funds must be transferred to the state’s general fund. However, from 2017 through 2018, CalPIA improperly gave away items — including $80,000 worth of artificial turf, $66,000 in digital cameras and $150,000 in furniture — that the recipient agencies should have bought, if they even wanted them.

In response, CalPIA told the auditor “former employees” were responsible for the improper actions.

Taxpayers are fortunate that at least one government agency is looking out for them.