Lending Agency Accuses SPSA of "Blatantly" Hiding Problems

Date: February 6, 2009

Source: News Room

The Southeastern Public Service Authority (SPSA) "blatantly and recklessly misrepresented" its financial troubles according to a scathing letter from the executive director of the Virginia Resources Authority (VRA), a state lending agency owed more than $129 million by the troubled regional waste authority. The VRA, based in Richmond, will dispatch an accounting team "to sort out and get a handle on SPSA's true financial status," the executive director, Sheryl D. Bailey, wrote in her letter to SPSA's executive director, Bucky Taylor. The letter enumerated numerous discrepancies regarding the agency's borrowings and lines of credit, plans to repay them, and disclosures to the VRA, in addition to the misuse of borrowed funds as a source of "daily cash," according to the letter.

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