City of Industry Claims State Audit Critical of Its Financial Oversight Was Political Attack Meant to Help Developer

The City of Industry is seen in this undated photo. (Credit: Luis Sinco / Los Angeles Times)

The City of Industry is seen in this undated photo. (Credit: Luis Sinco / Los Angeles Times)

A state controller’s audit that sharply criticized the City of Industry for having lax financial oversight was a “politically motivated attack” designed to help a developer who was embroiled in a legal battle with the wealthy San Gabriel Valley municipality, the city has alleged.

The claim was made in response to a review by the controller that found the city remained plagued by poor oversight nearly three years after an earlier state report came to similar conclusions.

The state audit, a draft of which was reviewed last month by The Times, called into question hundreds of thousands of dollars in ATM transactions involving a city venue, dozens of voided checks, nearly $2 million paid to housing contractors “without question or scrutiny,” and massively discounted rents at city-owned homes for city leaders and commissioners.

On Wednesday, the state controller’s office released its final version of the report and a statement from Controller Betty Yee, who said she found it “deeply disturbing” that the city demonstrated an “unwillingness to admit certain failures and to provide documentation to prove proper use of public dollars.”

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