Federal indictments re: city’s finances expected this month
Monday, January 2, 2006
Sources familiar with the investigation say the grand jury is likely to issue between half a dozen to a dozen indictments against middle level city officials. A possible second round of indictments later could include higher-level officials.
A grand jury has been investigating the city's fiscal problems, spurred by a $1.4 billion deficit in its retirement system, for nearly two years.
Part of its probe includes a 2002 deal between the pension board and the city council. In the deal, the board waived a balloon payment by the city into the retirement system. In exchange, the city boosted benefits for employees, six of whom sat on the board.
Panelists are also looking at possible public corruption and practices in the city's water department.
Amita Sharma, KPBS News.
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