Los Angeles Business Journal

City Seeks Receiver for DWP Institutes

By James Rufus Koren Wednesday, July 9, 2014

Los Angeles City Attorney Mike Feuer has asked a court to appoint a receiver to oversee the actions of two organizations run by the Department of Water and Power and a local union.

In a suit filed today, Feuer says the Joint Training Institute and Joint Safety Institute are dysfunctional and require court supervision. The two institutes, run by trustees appointed by the DWP and the International Brotherhood of Electrical Workers, have been under scrutiny since last year, when the Los Angeles Times reported that the organizations could not account for about $40 million.

The battle between the city and the union has escalated as union leaders have refused to release detailed financial information about the trusts.

Mayor Eric Garcetti said in a statement that he urged the court to “restore oversight and transparency” to the trusts.