NEWS

From the County of San Bernardino

FOR IMMEDIATE RELEASE

April 3, 2000

For more information, contact

County Public Information Officer David Wert

(909) 387-4082

dwert@cao.co.san-bernardino.ca.us

Bribery figure ordered to pay $10,000 in restitution

LOS ANGELES -- A federal judge today ordered Ronald Canham to pay San Bernardino County $10,000 in restitution for bribing a now-former county official to secure a consulting contract with the county.

Canham today became the first of seven people snared in a federal bribery probe to be sentenced, and county officials took the restitution order as a good sign that San Bernardino County taxpayers may eventually recover a significant portion of what was lost through these criminal acts.

Judge Stephen Wilson ordered Canham to spend three months in federal prison, three months in a half-way house, three years on supervised release, perform 750 hours of community service, pay a $4,000 fine and pay San Bernardino County $10,000 in restitution.

The restitution came as the result of a request made by San Bernardino County to the U.S. Probation Office based on a county-funded investigation by the Arthur Andersen business consulting firm and the law firm of Gumport, Reitman and Montgomery.

“We’re pleased our taxpayers will recover some of their losses and that Canham will have to give up some of his ill-gotten gains,” said County Administrative Officer William H. Randolph. “We hope to recover much more from the six people yet to be sentenced.”

The $10,000 represents the bribe Canham admitted paying to then-County Administrative Officer James J. Hlawek.

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Hlawek, who retired in 1998 after being placed on leave by the Board of Supervisors, has admitted to accepting at least 28 bribes from various sources totaling up to $69,200. He is scheduled to be sentenced in July, and the county plans to seek an as-of-yet-undetermined amount of restitution from him.

The county had also asked the U.S. Probation Office to recommend to the judge that Canham be ordered to pay back the $98,300 he was paid by the county to conduct seminars for county employees. The county also sought reimbursement for the $19,437.66 that was paid to the Arthur Andersen firm to investigate Canham’s role in the scandal.

The county is now exploring whether to seek the $117,737.66 through civil action.

Besides Hlawek, five other figures in the probe are awaiting sentencing – former county Treasurer-Tax Collector Thomas F. O’Donnell, former county investment officer Sol Levin, former county consultant Richard Tisdale, former Norcal Waste Systems vice president Kenneth James Walsh and former Norcal consultant Harry M. Mays. Mays preceded Hlawek as county administrative officer.

The Arthur Andersen firm is continuing to investigate the county’s relationship with Norcal and other contractors to determine how much restitution county taxpayers are owed by those implicated in the bribery scheme. Restitution requests are being made for the other six people who entered guilty pleas in the bribery scandal.

The Arthur Andersen firm has also been charged with examining other county contracts to determine if they are proper.

The Andersen and Gumport contracts are among several actions the Board of Supervisors and Randolph have taken to ensure the county’s business dealings are in order and to restore the public’s trust in county government. Those actions include:

· Applicants for top positions in the county are subjected to an unprecedented level of background investigation. Through an RFP process the county has hired two background investigation firms to assist the county in hiring the best people to serve the people of this county.

· This past July the Board passed an ordinance requiring county departments to seek the Board’s approval whenever they spend more than $25,000 with an individual

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vendor over the course of a year. The Board this month reaffirmed its support for this ordinance. This tightening of county spending policies has been an effective tool in keeping the public abreast of how the county is expending its resources.

· Immediately after learning of Norcal Waste Systems Inc.'s involvement in the incidents of wrongdoing, the county began the process of severing the county's current relationship with the company. The county has committed itself to securing a new landfill management contract that is the product of a fair, honest and open bidding process.

· The County Administrative Officer last year established a Working Group led by the Auditor/Controller-Recorder to examine the county's procurement policies. This thorough review resulted in the Board’s adoption this month of a procurement code of ethics, and many more recommendations are expected soon to ensure proper public review of purchases and safeguards against unregulated spending.

· The County Administrative Officer also established a Real Estate Working Group to closely review the methods by which the county leases building space. In the coming weeks this effort will lead to a group of proposals designed to guarantee that proper procedures are followed to the letter and that safeguards exist to ensure that the taxpayers are getting the best deals for their money.

· Over the past two years more than a dozen county department heads and administrators have retired or otherwise left their positions, giving the voters, the Board and the County Administrative Officer an opportunity to substantially rebuild county government on a foundation of new ideas, responsibility and accountability.

· Last August and again earlier this month, the Board approved sweeping changes within the county’s organizational structure to emphasize economic development and job creation, the compassionate and efficient delivery of social and medical services, and increased oversight in the use of county resources.

· Last year the county adopted the ICMA Code of Ethics, which dedicates the county to the highest ideals of honor and integrity. It also reminds county employees that they exist to serve the public and to keep the citizens informed.

· The Auditor/Controller-Recorder has undertaken an exhaustive review of the dental and medical benefit programs offered to county employees. The dental portion of the audit, submitted to the Board last month, was explicit in its findings and recommendations. The results of the examination of the medical programs are expected soon.

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· The Treasurer-Tax Collector is conducting a thorough review of the county’s investment practices and has already severed the county’s relationship with one investment firm because of some suspicious commissions, which are now under investigation.

· County departments have gone to great lengths to add more detail to recommendations and reports submitted to the Board so that proposals, costs and projected benefits are clear to Board members and the public.

· During the past two years the Board has increased its attention to details and more thoroughly questions county staff on items submitted for the Board’s approval. There has also been a dramatic increase the number of public meeting agenda items discussed in detail during Board meetings and a reduction in the number of items passed without discussion on consent.

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