Probe heads to ethics commission

GREENVILLE, Pa. -- Pennsylvania Auditor General Jack Wagner is referring to the State Ethics Commission the findings of a special investigation into the mismanagement of $2.3 million in commonwealth grant funds by the Greenville Area Leisure Services Association.
A news release by Wagner says the alleged mismanagement contributed to Greenville Borough's designation by the state as a "financially distressed" community.
The investigation was done in conjunction with the Mercer County District Attorney's office.
Wagner said the actions of GALSA's former executive director, who Vindicator files identify as Robert Good, may have violated the Public Official and Employee Ethics Act pertaining to conflicts of interest and the conduct of a public employee.
GALSA is a borough agency created to manage the park system, Wagner's news release says.
"The borough's elected representatives should be commended for trying to assist the community with state resources," said Wagner. "But this person's actions, in disregard of the public trust, helped to plunge an entire community into financial distress, leaving the commonwealth's taxpayers and borough residents to pick up the pieces."
Financed projects
The investigation found that the former executive director had used his positions as both GALSA executive director and director of Greenville Borough's Parks and Recreation board to persuade borough council to finance projects that GALSA wanted to be undertaken, including a sports complex, pedestrian/bike trails, park improvements, renovations to a local pool and a new recreation center.
Wagner recommended that Greenville try to recoup funds from GALSA and that council members be more diligent when entering into projects with GALSA and agreeing to assume financial obligations on GALSA's behalf.
GALSA failed to pay the borough its portion of matching funds needed to get state grants, leaving Greenville responsible for 100 percent of the cost, the report said.
Wagner found that borough council failed to make sufficient inquiry into GALSA's financial condition and fund-raising ability before committing to pay the up-front costs.
Left with debt
When GALSA later failed to raise any significant amount of money, the borough was left with the debt, which it could not afford.
Wagner said these things contributed to the borough's poor financial condition, which made it eligible as a financially distressed municipality under state Act 47 in May 2002.
Wagner sent his report to several other state agencies for review.