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# Secretive DWP Nonprofits: Nichols’ Word Not Worth a Dime
December 19 2013
Written by Paul Hatfield.
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***PERSPECTIVE***-Brian D’Arcy is refusing to turn over the records of the Joint Training Institute and the Joint Safety Institute, two stealth nonprofits operated by D’Arcy and his IBEW Local 18, along with Ron Nichols and the DWP. Together, the two organizations have spent over $40 million in ten years without so much as sharing a scrap of documentation concerning their operations. The public funds them; we deserve a full accounting.
I almost laughed when I read that [Nichols was hiring an outside law firm](http://www.latimes.com/local/lanow/la-me-ln-dwp--financial-records-20131217,0,4835923.story#axzz2nmGY6eWz) to resolve the impasse over the lack of transparency clouding the nonprofits.
Nichols is part of the problem. He has been the DWP’s general manager for three years and has never expressed any concern over the secretive nature of the institutes despite serving on their boards. [His silence was the subject of an earlier CityWatch article I wrote](http://phinvv.wordpress.com/2013/11/20/the-silence-of-ron-nichols/).
Silent Ron is too close to the core of the scandal to be perceived as independent.
Nothing short of a truly independent investigation headed by the District Attorney needs to be in play.
Nichols and D’Arcy should be subpoenaed along with their colleagues on the boards, the management and the public accounting firm responsible for auditing the nonprofits’ financial statements. Although CPAs are required to maintain confidentiality when it comes to their clients’ affairs, court subpoenas and IRS audits are two major exceptions to the rule.
The refusal to hand over records amounts to brazen disrespect to the residents of the city and to the investors who purchase the DWP’s bonds.
What is D’Arcy thinking?
He has to believe this will not play well in the next round of labor negotiations four years from now. The members of the local should be concerned, too.
Ron Nichols should also be thinking about his reputation and demanding an investigation by the DA. Is he hiding anything?
This is no time to play nice.
***(Paul Hatfield is a CPA and serves as Treasurer for the Neighborhood Council Valley Village. He blogs at Village to Village, contributes to CityWatch and can be reached at: )* –cw**
**CityWatch**
**Vol 11 Issue 102**
**Pub: Dec 20, 2013**
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