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Archive for the ‘Auditor’ Category

The most recent audit (August 2017) of the Foster Care Program of the Department of Children and Family Services (DCFS) found that:

  • DCFS did not conduct proper criminal background checks on non-certified foster care providers;
  • DCFS allowed nine certified providers with prior cases of abuse or neglect to care for foster children during fiscal years 2012-2016 without obtaining required waivers.
  • DCFS does not have a formal process to ensure that caseworkers actually assessed the safety of children placed with 68 non-certified providers.
  • DCFS did not always ensure that children in foster care received services to address physical and behavioral health needs.
  • State regulations require DCFS to expunge certain cases of abuse or neglect from the State Central Registry, which means those records are not available for caseworkers to consider prior to placing children with providers.

(See the DCFS audit summary HERE.)

So, the question now is this: What steps will the state take to protect these children now that the Legislative Auditor has pointed out these serious deficiencies?

If the results of a 2012 audit of the Louisiana Department of Economic Development’s Enterprise Zone Program is any indication, then the answer is nothing.

Under state statute, Louisiana’s Enterprise Zone (EZ) program is designed to award incentives to businesses and industries that locate in areas of high unemployment as a means of encouraging job growth. (The summary of that audit can be viewed HERE.)

That audit found that:

  • Approximately 68 percent of the 930 businesses that received EZ program incentives from the state were located outside of a designated enterprise zone. These businesses received nearly $124 million (61 percent) of the $203 million in total EZ program incentives during calendar years 2008 through 2010.
  • Approximately $3.9 billion (60 percent) of the $6.5 billion in capital investment by businesses receiving EZ incentives was located outside a designated enterprise zone.
  • Approximately 12,570 (75 percent) of the 16,760 net new jobs created by businesses granted EZ incentives were located outside an enterprise zone.
  • Four other states with which Louisiana was compared exclude retail businesses from EZ incentives. Louisiana does not, allowing such businesses as Walmart to take advantage of the incentives.
  • None of the four neighboring states allows businesses to count part-time employees among the new jobs created. Louisiana does.
  • Louisiana state law prohibits disclosure of the amount of incentives received by businesses.

Little, if anything, has been done to rectify these deficiencies in the oversight of the EZ program.

There has been precious little reaction from this year’s audit of the Louisiana Department of Wildlife and Fisheries which found that thousands of dollars in equipment had been stolen, a story LouisianaVoice called attention to last year. Go HERE for a summary of that audit report or HERE for our story.

Some remedial steps have been made in addressing a multitude of problems exposed in a 2016 audit of the Department of Veterans Affairs (See audit summary HERE).

Yet, we can’t help but wonder where the oversight was before a critical audit necessitated changes. Among those findings:

  • Payment of $44,000 to a company for improperly documented work without the required contract.
  • The use of $27,500 in federal funds specifically earmarked for the Southeast Louisiana Veterans Cemetery in Slidell for the purchase of a Ford Expedition for the exclusive use of headquarters staff.
  • The failure to disclose information of potential crimes involving veteran residents at several War Veteran homes.
  • The possible falsifying of former Secretary David Alan LaCerte’s military service as posted on the LDVA website.
  • LaCerte’s engaging in questionable organizational, hiring, and pay practices that led in turn to a lack of accountability.

Likewise, some positive steps have been taken in shaping up the Department of Corrections’ (DOC) trusty oversight programs but that resulted as much from a thorough investigative report by Baton Rouge Advocate reporters as a 2016 audit (see HERE) that found:

Because the Louisiana State Penitentiary at Angola’s trusty policy, 1,547 (an astounding 91 percent) trusties at Angola were not eligible for the program and even after the policy was revised, 400 (24 percent) of 1705 trusties were ineligible. All 400 were considered by DOC to be eligible as a result of having an undocumented, implicit waiver for a sex offense or time served less than 10 years.

Equally troubling, the audit found that 14 of 151 (9 percent) of trusties assigned to work in state buildings in Baton Rouge were not eligible because of crimes of violence, including aggravated battery, manslaughter, and aggravated assault with a firearm. The report further found that if those 151 were required to comply with the requirements in place for Level 1 trusties, 49 (32 percent) would be ineligible.

Indicative of the monumental waste brought about by the proliferation of boards and commissions in state government, a 2017 audit (see HERE) of “Boards, Commissions, and Like Entities) noted that the number of boards and commissions had been reduced from the 492 in 2012 to “only” 458 in 2016. Texas, by comparison, has 173, Mississippi about 200. The appointment of members of those boards and commissions take up a lot of time as the governor’s office supposedly vets each new member.

Four boards did not respond to the auditor’s request for data in 2017 and 2016.

There were 11 inactive boards which were not fulfilling established functions, five of which were also inactive the previous year.

Some of these boards, as illustrated on numerous occasions by LouisianaVoice, often go rogue and there seems to be no one to rein them in. These include the Louisiana State Police Commission, The Louisiana Board of Dentistry, the Auctioneer Licensing Board, the State Board of Cosmetology, and the State Board of Medical Examiners, to name but a few.

Take, for example, the 2016 audit of the Louisiana Motor Vehicle Commission (see HERE):

  • The commission did not have adequate controls over financial reporting to ensure accuracy.
  • The commission did not comply with state procurement laws requiring contracts for personal, professional and consulting services, failing to obtain approval for contracts for two vendors totaling $80,000.

The point of this exercise is to call attention to the one office in state government which, with little fanfare and even less credit, goes about its job each day in attempting to maintain some semblance of order in the manner in which the myriad of state agencies protects the public fisc.

The Legislative Auditor’s Office, headed by Daryl Purpera, performs a Herculean, but thankless job of poring over receipts, contracts, bids, and everything related to expenditures to ensure that the agencies are toeing the line and are in accordance with established requirements and laws regarding the expenditure of public funds.

Thousands of audits have been performed. We pulled up only a few random examples: there are others, like the Recovery School District, the Department of Education, Grambling State University (only because it has so many audits with repeated findings), levee districts and local school boards and parish governments. Untold numbers of irregularities have been uncovered—only to be largely ignored by those in positions to take action against agency heads, who, because of political ambitions, allow attention to be diverted from their responsibilities of running a tight ship.

In cases of egregious findings, the media will jump on the story, only to allow it to fade away and things soon return to normal with no disciplinary action taken against those responsible.

If all elected officials and members of the governor’s cabinet were held accountable for their sloppy work or the outright dishonesty of their agency heads, it would send a message throughout state government and this state might well save hundreds of millions of dollars in wasted expenditures and theft.

It calls to mind the lyrics of a 1958 Johnny Cash song, Big River, recorded when he was still with Sun Records:

“She raised a few eyebrows

And then she went on down alone”

Through it all, Purpera and his staff trudge ever-onward, raising a few eyebrows and then continuing (alone) to do their jobs even as those above them do not.

They—and the taxpayers of Louisiana—deserve better.

 

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The Republican governor of Nevada has done what Bobby Jindal for eight interminable years refused to do and what Gov. John Bel Edwards should have already done.

Gov. Brian Sandoval, saying, “There’s something not right here and it needs to be fixed,” ordered Nevada’s state dental board on Nov.8 to address—and fix—problems of corruption, bullying and extortion rampant in the board’s patient-complaint/resolution process.

A STORY in the Las Vegas Review-Journal sounded eerily familiar to a number of LouisianaVoice stories dating back to March 2014 about abuses perpetrated by the Louisiana State Board of Dentistry through harassment, intimidation, and exorbitant penalties—including ruined careers—for minor infractions and sometimes none at all.

https://louisianavoice.com/2014/03/07/state-board-employs-intimidation-harassment-to-generate-funds-to-pay-for-lucrative-contracts-worth-millions-of-dollars/

https://louisianavoice.com/2016/03/18/like-dental-board-louisiana-board-of-medical-examiners-survives-on-fines-and-incentive-to-punish/

https://louisianavoice.com/2014/03/23/appeal-court-slams-lsdb-tactics-in-reversing-kangaroo-court-license-revocation-board-attorney-rules-on-his-own-objection/

And should Edwards take it upon himself to rein in the rogue dental board, he may well also wish to take a long hard look at a few other boards that have gone off the reservation over the years.

  • Here are just a few that warrant a closer look:
  • The State Board of Cosmetology;
  • The Auctioneers Licensing Board;
  • The State Board of Medical Examiners;
  • The State Board of Examiners of Psychologists

Each of these boards has been the subject of considerable controversy over the manner in which they investigate complaints and assess penalties without giving their targets the benefit of the same due process to which accused criminals are entitled under 14th Amendment to the U.S. Constitution.

Several dentists and dental hygienists protested a $500,000 increase in the contract for the Nevada dental board’s outside legal counsel, John Hunt and their testimony quickly escalated to shouting a crying by those who said Hunt coerced them to acknowledge wrongdoing and to pay money to the dental board.

Several of them accused Hunt of benefitting from money collected by the board.

As we said earlier, eerily familiar.

https://louisianavoice.com/2015/11/16/dentistry-board-facing-difficult-future-because-of-policies-contracts-with-attorney-private-investigator-are-cancelled/

At least in Nevada, complaints by victims of the dental board led to action.

A legislative audit of the board concluded that the board imposed excessive penalties on those it was investigating and also took issue with the board’s handling of Hunt’s contract. The board’s handling of patient complaints, it said, left targets of investigations with the belief that they either had to accept a settlement agreement or risk steeper punishment if found guilty in a final board hearing.

“That’s where the allegation of extortion comes in,” State Assemblyman Glenn Trowbridge, a member of the subcommittee that conducted the audit, said in June. “Either pay me now or we’ll look into it deeper and you’ll pay me more.”

Again…eerily familiar.

https://louisianavoice.com/2016/07/18/case-of-slidell-dentist-illustrates-unbridled-power-of-dentistry-board-to-destroy-careers-for-sake-of-money/

Sandoval appoints the members of the dental board. He said the time has come for the 11-member board to address the problem. Citing his experience with other state boards during his political career, he said, “I’ve never seen …people as upset as they are.”

The board, following Sandoval’s scolding, postponed action on Hunt’s contract amendment.

1980 U.S. Supreme Court specifically addressed the issue of excessive penalties in the case of U.S. Secretary of Labor v. Jerrico, Inc.

In that case, the Supreme Court reduced a $103,000 penalty to $18,000 in that the higher penalty constituted an unconstitutional risk of bringing “impermissible factors into the prosecutorial decision.”

In an earlier, even more pointed decision, the Supreme Court ruled in 1973 that “board members’ pecuniary interest disqualified them from passing on issues.”

In citing an Alabama case in which the Board of Optometry revoked the licenses of all optometrists employed by corporations such as Lee Optical, the court said, “Because the Board of Optometry was composed solely of optometrists in private practice for their own account, the District Court concluded that success in the board’s efforts would possibly (contribute) to the personal benefit of members of the board, sufficiently so that in the opinion of the District Court, the Board was disqualified from hearing the charges filed against the appellees.

“It is sufficiently clear from our cases,” the court continued, “that those with substantial pecuniary interest in legal proceedings should not adjudicate these disputes.”

As simple to understand as that ruling is, one must wonder why, 43 years later, the Louisiana Board of Dentistry and other licensing boards in the State of Louisiana are still allowed to operate their own respective fiefdoms with carte blanche.

Are their legal counsels not able to read and understand the law?

Is there not a single board member among them with the decency to say, “This isn’t right”?

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Allegations of forged and falsified time sheets, misapplication and/or misappropriation of federal funds, unaccounted for expensive ice chests, a claim of a stolen computer hard drive and an FBI investigation.

Just another ordinary day at the office in another state agency in Louisiana.

Except this state agency, the Louisiana Department of Wildlife and Fisheries (LDWF) normally flies well under the radar, attracting little or no attention from local, state or federal officials.

And, to be truthful, that’s the way LDWF officials would have preferred it.

In fact, according to one former agent who spoke with LouisianaVoice, he was told precisely that by a fellow agent: “Don’t worry, we’re over here in Southwest Louisiana where no one ever looks at us”

Long before it became public knowledge that the FBI was investigating irregularities at LDWF, LouisianaVoice received a cryptic telephone call in mid-June from an FBI special agent from Baton Rouge asking what we might know about the agency.

We had already received an anonymous tip that the feds were looking into illegalities involving misappropriation of federal funds related to the BP Deepwater Horizon Gulf oil spill cleanup. Our source said about $10,000 in fishing equipment was purchased with the federal funds, “along with 40 or 50 Yeti coolers,” of which “only three can be accounted for.”

Yeti coolers are expensive, top-of-the-line coolers, some costing more than $1,200, making them a prime target for theft.

https://www.google.com/webhp?sourceid=chrome-instant&rlz=1C1NHXL_enUS703US706&ion=1&espv=2&ie=UTF-8#q=yeti+coolers&tbm=shop

Professing (truthfully) that we had little information to share, we referred the caller to former LDWF agent Todd Abshire who had contacted us earlier about payroll irregularities—including the forging of his initials on his timesheets to reflect time classifications which he says were inaccurate.

Now it appears official that LDWF is indeed under investigation for misapplication of federal funds from the BP oil spill. http://www.louisianasportsman.com/details.php?id=9895

http://www.theadvocate.com/baton_rouge/news/politics/article_f06a8d82-5e67-11e6-bc45-9b911b0114db.html

At issue is how the agency spent $8.6 million seafood testing grant awarded by BP following the 2010 Deepwater Horizon spill.

Abshire, a Marine Corps veteran, said he was the victim of discrimination because supervisors would not accommodate him for his service-related PTSD. He also said he witnessed supervisors claiming hours that they did not work. In one case, he said the supervisor left him practicing backing a trailer in the supervisor’s driveway while the supervisor worked at his second job.

LDWF receives no state General Fund (direct) money, but the bulk of its funding is via statutory dedications which are state funds and, like all other agencies, its funds have to be appropriated by the state to be spent. Therefore it would be incorrect to say the agency is self-funded, as some in the agency insist. In fact, it receives funding from several federal programs and, says Abshire, that is where the time sheet irregularities come into play.

Agents are required to code their time sheets according to which of the federal programs they work on a particular day. The money for their salaries is charged back to the program listed on the timesheets.

The federal programs include, among others:

  • Boating Safety Enforcement;
  • Boating Accident Investigation;
  • Boating Safety Search and Rescue;
  • Recreational Fishing Federal;
  • Commercial Fishing Federal;
  • Commercial Catch Shares;
  • Federal Game and Waterfowl;
  • Exclusive Economic Zone (EEZ);
  • Maritime SWAT

Abshire said he has witnessed agents remaining in the LDWF offices while coding their timesheets under one of the federally-funded programs.

He even provided copies of his own timesheets which he said showed changes to times he did not work—changes made without his authorization and with his initials forged to the timesheets.

Besides the feds, the agency is also being investigated for contract irregularities and for nepotism by a number of local and state agencies, including the Legislative Auditor, the Louisiana Office of Inspector General and East Baton Rouge District Attorney.

Now, in addition to the missing ice chests, claims of illegal purchases with federal funds, and charges of falsified time sheets, comes the word that a LDWF employee has reported the theft of items from her desk, items that include a computer hard drive and a day planner.

http://www.theadvocate.com/baton_rouge/news/crime_police/article_99bc910a-760f-11e6-9040-bb2dc8e09bb9.html

Wendy Brogdon, listed as a confidential assistant, said the hard drive, day planner and personal souvenirs were taken in a burglary of her office between the evening of Aug. 11 and Aug. 24 during a time the office was shut down because of record flooding, according to her attorney, J. Arthur Smith, III.

Inexplicably, she was placed on administrative leave after reporting the theft and just as puzzling, LDWF spokesperson Adam Einck would not confirm whether or not she was a LDWF employee even though her name regularly appears in the minutes of the Louisiana Wildlife and Fisheries Commission as the commission secretary.

LDWF officials also said surveillance cameras at agency offices were of no use because they were aimed at the office’s exterior and not the interior. If we had a tendency toward conspiracy theories, that would be just too convenient and it might even prompt us to wonder what might have been on the hard drive and the day planner that was important enough to be taken in the theft.

But this is Louisiana, after all, so it’s only natural that the thief would also take Duck Commander duck calls autographed by Willie Robertson of the reality TV show Duck Dynasty, Duck Commander tea cups signed by Si Robertson and Duck Commander baseball caps signed by Willie and Si Robertson.

At least now we know the real reason for the burglary.

 

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Iraqi oil scams, critical compliance audits, litigation over the misappropriation of public funds, questionable land deals, botched Wal Mart deal involving Bobby Jindal’s father-in-law.

They’re all just another day at the office for Lt. Gov. Billy Nungesser.

When Baton Rouge Advocate reporters Rebekah Allen and Richard Thompson did some good old-fashioned journalistic digging last week to report that hysterical Iraqi oil scam perpetrated by Nungesser and political ally State Republican Party Chairman Roger Villere, it threw LouisianaVoice into a scramble mode. http://theadvocate.com/news/politics/15398751-125/lt-gov-billy-nungesser-gop-chairman-roger-villere-work-to-recruit-unlikely-iraq-to-louisiana-busin

In short order we found that Nungesser and Villere had fallen for a similar con run by the same company (Alexandros, a corporation registered in Delaware), but instead of the State of Louisiana and Nungesser and Villere, the targets were the governor of the U.S. Virgin Islands and former Baton Rouge Metro Council member Darrell Glasper. https://louisianavoice.com/2016/04/12/louisiana-has-a-new-clown-prince-but-its-egg-not-a-pie-all-over-lt-gov-nungessers-face-after-succession-of-blunders/

But by the time the light came on in Nungesser’s head, Krusty had already been cued. https://www.youtube.com/watch?v=SzLHU6S4oic

By then, however, it was too late. He had fired off letters to Secretary of State John Kerry, the U.S. Ambassador to Iraq Stuart Jones and to Iraqi Prime Minister Haider al-Abadi, and even issued a press release to (thankfully) only one news outlet, The Washington Post which (again, thankfully) did not run with the story.

Oh, and he also passed himself off as the one man in state government responsible for economic development (quick: someone let Secretary of Economic Development Secretary Donald Pierson know) and he said he was acting on the directive of Gov. John Bel Edwards (he wasn’t).

Sources tell LouisianaVoice that when Edwards heard about the two-man theater of the absurd, he had two state troopers interrupt Nungesser during an address to a group of businessmen and escort him to the governor’s office where he had a little come-to-Jesus meeting with Edwards. We weren’t able to get a confirmation or denial of that story

Nungesser, of course, did the only logical thing: he first blamed his staff, saying the letters should never have reached his desk. He then tried to throw Villere under the bus by saying the state GOP chairman had requested the letters from him. Finally, in an appearance on the Jim Engster radio show, he said the letters were in the middle of a stack of thank-you notes and he didn’t actually read them.

Did he learn his lesson? Apparently not. Even after the Iraqi letter-writing frenzy blew up in his face, he then told another group that Edwards had put him in charge of coastal restoration.

Nice.

Trying to imagine Nungesser sitting at his desk feverishly signing all those thank-you notes, it’s difficult not to visualize Gov. William J. Lepetomane signing a succession of documents handed him by aide Hedley Lamarr in the movie Blazing Saddles. https://www.youtube.com/watch?v=sm1Jyusyoqk

Back during those heady days as Plaquemines Parish President, Nungesser decided he’d like to bring a brand spanking new Wal Mart to the lot at the corner of LA. 23 and LA. 406 in Belle Chasse.

The only problem was there was a moratorium on big box stores on the books that the parish council had passed and by the time it expired about a year later, the tide of opinion on the council had turned against Nungesser’s proposal.

The land in question was—and is—owned by several former employees of Freeport McMoRan, one of whom is Jatinder (Jay) Jolly.

Jolly is the father of Supriya Jindal, wife of former Gov. Bobby Jindal.

After the deal collapsed, only a small building owned by Freeport McMoRan sat on the property but now it has been torn down and only a concrete slab remains, leading to speculation that the Wal Mart proposal may be resurrected.

A 2010 compliance AUDIT conducted by the Legislative Auditor’s Office while Nungesser still served as parish president is especially telling.

A compliance audit is different from a routine annual audit in that a compliance audit is an audit for compliance of laws, regulations and other guidelines that a governmental entity is required to follow.

In short, the compliance audit found that:

  • The Parish may have violated the parish Charter and a local ordinance by entering into two contracts pertaining to recovery operations.
  • The Parish Administration may have violated the Local Government Budget Act by not including Federal Emergency Management Agency (FEMA) grants within the Parish budget.
  • The Parish’s attorney may not be properly approved by the Council as required in the Parish Charter.
  • The Parish President (Nungesser) may have violated the Louisiana Code of Governmental Ethics through real estate transactions between his trust and the owners of two Parish vendors.

In that last finding, auditors said in January 2008, the owners of two companies doing business with the parish “were also involved in a private real estate transaction with a trust whose beneficiary is Parish President William Nungesser. These transactions may constitute a violation of the Louisiana Code of Governmental Ethics and therefore will be referred to the Board of Ethics for its consideration.”

Since Nungesser was a political ally of Jindal and the Board of Ethics members are appointed by Jindal, nothing came of that referral.

Nungesser, in typical fashion, saw no fault in his actions and fired off a defiant 12-page letter of response to the state auditor in which he painted himself as the savior of a parish devastated by hurricanes and the BP Deepwater Horizon oil spill. He even managed to tell auditors what their job was in his response, saying they had “no authority” to second-guess his decision as to when a state of emergency was ended.

If he could find no fault, members of the Plaquemines Parish Council certainly could (with the exception of Council Chairman Kirk Lepine.)

On Oct. 15, just nine days before the Oct. 24 primary election last fall, the Plaquemines Parish Government filed suit against Nungesser in 25th Judicial District Court in Plaquemines Parish.

The lawsuit accuses Nungesser of causing “the misappropriation of public property and public services” by having Plaquemines Parish employees perform work on private property.

The suit says he ordered parish employees of the Heavy Equipment Department to transport limestone, sand aggregate and asphalt belonging to the parish to two private roads in the parish and to cut trees and dig out a drainage ditch prior to installing a drain pipe with an 8-by-20-foot culvert and then backfill on private property on LA. 23 in Belle Chasse.

Now Lepine has offered up a motion for the parish to drop the lawsuit.

Perhaps it’s only coincidence that Lepine’s stepdaughter works for Nungesser.

CLOWN IN CHIEF

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The past is prologue

                                    —William Shakespeare (The Tempest)

In 1936, Mississippi Gov. Hugh White successfully pushed through the state legislature his answer to President Franklin Roosevelt’s New Deal so despised by southern states.

Mississippi could grow and prosper through his landmark “Balance Agriculture with Industry” program, according to Mississippi native Joseph B. Atkins, author of the little-known but important book Covering for the Bosses. The book is an examination of how newspapers in the South refused to give fair coverage to labor unions in their attempt to gain equitable working conditions for workers first in the textile mills and later the automobile industry.

https://books.google.com/books?id=o6AfWT79t2MC&pg=PA237&lpg=PA237&dq=shadows+in+the+sunbelt+1986&source=bl&ots=7Wb_bKCn48&sig=FIjJetyw-Li-lCk0c3zN_muV3MA&hl=en&sa=X&ved=0ahUKEwjL-Ob4k4_LAhWFPiYKHchPD50Q6AEIUDAJ#v=onepage&q=shadows%20in%20the%20sunbelt%201986&f=false

According to Atkins, White figured he could attract industry to Mississippi through the then-radical concept of offering attractive tax incentives and promises of low wages—and, of course, no unions.

The program, Atkins writes, eventually became a model for the entire South and today, Mississippi, in the latest rankings of the best states for business, can be found sitting firmly in….47th place among the 50 states, ranked ahead of only (in order) Kentucky, Louisiana, and West Virginia. In fact, the South can lay claim to six of the bottom 10 spots in the national rankings. They also include Arkansas (42nd) and Alabama (45th). Tennessee was only slightly better at 38th. Virginia (10th) and North Carolina (15th) were the only southern state in the top 20. http://247wallst.com/special-report/2016/02/17/the-best-and-worst-states-for-business-2/

So what went wrong with White’s grand scheme for Mississippi? Simply put, the same thing that doomed Louisiana, Alabama, Arkansas and Tennessee to the bottom one-fourth of the heap. They gave away their tax bases while at the same time condemning their citizens to lives of low wages and poor benefits. And Wal-Mart was first in line to fully exploit the plethora of incentives, be they the 10-year property tax exemptions, Enterprise Zone initiatives or some other inducement.

Wal-Mart, described by Wall Street Journal writer Bob Ortega in his book In Sam We Trust as “an amoral construct with one imperative: the profit motive.”

In October 2005, Atkins writes in Covering for the Bosses, that an internal Wal-Mart memo was leaked which revealed the true, impersonal attitude of the corporate office toward its 1.3 million American workers, 30 percent of whom are part-time workers.

In her memo to Wal-Mart executive vice president M. Susan Chambers complained of the costs of long-term workers. The company, she said, spent 55 percent more on them than on one-year workers even though “there is no difference in (the employee’s) productivity.” She said because Wal-Mart pays an associate “more in salary and benefits as his or her tenure increases, we are pricing that associate out of the labor market, increasing the likelihood that he or she will stay with Wal-Mart….The least health, least productive associates are more satisfied with their benefits than other segments and are interested in longer careers with Wal-Mart,” she said.

In plain language, she was advocating throwing older workers to the curb in favor of newer, lower-salaried workers.

Yet Wal-Mart has shoved its way to the public trough, securing some $100 million in economic development subsidies from the state in 20 cities from Abbeville ($1.67 million) to Vidalia ($1.65 million), from Shreveport ($6.3 million) to New Orleans ($7 million), from Monroe ($3.9 million) to Sulphur ($1.8 million).

Nationally, estimated annual subsidies and tax breaks to Wal-Mart and the Walton family total $7.8 billion per year. This for six Walton heirs whose collective net worth of $148.8 billion is more than 49 million American families combined. http://www.americansfortaxfairness.org/files/Walmart-on-Tax-Day-Americans-for-Tax-Fairness-1.pdf

A congressional report estimated that each Wal-Mart store in America generated an average of $421,000 in Medicaid, SNAP and public housing costs to taxpayers. That’s in addition to the estimated $1 billion taxpayers anted up in local and state government subsidies to have a Wal-Mart in their communities. Wal-Mart workers, who earn less than $10 an hour (about $18,000 per year), are offered a family health care plan with a $1,000 deductible costing $141 per month.

And remember that warm fuzzy “Made in USA” advertising campaign of Wal-Mart in which Wal-Mart in 2013 said it was starting a 10-year plan to increase spending on U.S. made products by $250 billion? Well fuggeboutit. It didn’t happen and last October, the company removed the “Made in the USA” logos from all product listings on its Web site after the Federal Trade Commission caught the company (gasp) lying. http://fortune.com/2015/10/20/walmart-made-in-the-usa/

Instead, much of its merchandise, clothing in particular, comes from third-world sweatshops where workers are paid pennies per hour in wages and children work up to 20 hours per day to make the clothing we purchase from Wal-Mart. https://www.dosomething.org/us/facts/11-facts-about-sweatshops

And here’s a real eye-opener.

In her book Cheap, author Ellen Ruppel Shell reveals a dirty little secret most consumers are unaware of: name-brand clothing sold at Wal-Mart aren’t quite what consumers think they are. “Discounting dilutes brands, making it less certain that they are a mark of quality,” Shell writes. http://www.nytimes.com/2009/07/19/books/review/Shapiro-t.html?_r=0

Hundreds of brands “slice and dice their offerings for various markets, selling different products in different types of stores for different prices under the same brand,” she said. “Chains such as Wal-Mart, Best Buy, Target and Home Depot have items manufactured ‘to their specifications,’ meaning that the brand name is almost devoid of meaning.”

That means a television with a model number available only at Wal-Mart is not really a Sony or a Samsung, for example, but a Wal-Mart television.

“Brands have become an end in themselves,” she writes. “…It is not the brand alone that entices discount shoppers; it is the high value we link to the brand versus the low price we pay that is so seductive.”

In recent years, Louisiana taxpayers have subsidized the construction of Wal-Mart stores in two affluent suburbs to the tune of a $700,000 tax credit. A tax credit is a dollar for dollar reduction of a tax liability meaning a $1 tax credit reduces one’s taxes by a full dollar. Bear in mind, these subsidies were Enterprise Zone projects. The Enterprise Zone program is designed specifically to lure business and industry into areas of high unemployment in order to help economically depressed areas. Instead, one of these stores were built in St. Tammany, one of the most affluent communities in the state.

Likewise, $330,000 in Enterprise Zone tax credits were awarded in 2013 to Lakeview Regional Medical Center in St. Tammany Parish for an upgrade to its facilities which created a grand total of five new jobs.

As far back as 2012, then-Secretary of the Department of Economic Development Stephen Moret said the Enterprise Zone program no longer fulfilled its purpose. http://www.nola.com/politics/index.ssf/2012/12/louisiana_economic_development_1.html

A Legislative Auditor’s report agreed, saying that 75 percent of new jobs, 68 percent of new businesses and 60 percent of capital investments were made outside the EZs. http://app1.lla.state.la.us/PublicReports.nsf/92629A33AAE8C55F862579EB0072ACEB/$FILE/00029DFA.pdf

That’s because unlike other states, Louisiana’s Enterprise Zone program allows the generous five-year tax breaks for retail establishments, businesses whose salaries traditionally are at the low end of the pay scale. Those include, besides Wal-Mart, chain stores like Walgreens and Raising Cane’s chicken outlets.

“Most of the projects are larger companies investing in relative affluent areas in Louisiana today,” Moret said in something of an understatement. He said that fact alone underscored the importance of making changes to the program.

Were changes made? No. In fact, in 2013, the year after his comments, the state awarded EZ tax credits totaling $19.6 million for projects that produced 4,857 new jobs which in turn generated about $10 million in state income taxes, or a net loss of more than $9 million to the state.

Meanwhile, Atkins quotes author Bill Quinn as saying Wal-Mart “has done more to stomp out Middle-class America than all other discount houses put together.”

Yet, the official policy of Louisiana has been to continue to give generous tax breaks to a company that underpays its employees, deceives customers into thinking they are “buying American” when in reality, they are propping up third-world sweatshops whose workers churn out second line brand names under slave-like working conditions.

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