Accountability Remains an Issue

While Orange County has slowly rebounded from the shock of its municipal bankruptcy in late 1994, the search to assign blame has been a central part of a long-running story. The conviction on Friday of former Assistant Treasurer Matthew R. Raabe on five felony counts has brought that process full circle, back once again to the office that had been celebrated for the investment returns it delivered for fiscally squeezed public agencies.

The search for blame has extended far and wide over that period. Raabe’s boss, former Treasurer Robert L. Citron, pleaded guilty to the same crimes that Raabe was charged with and is serving a one-year jail sentence in a work-release program. By the time he was sentenced late last year, Citron was a pathetic figure, described as mentally impaired. Former Budget Director Ronald S. Rubino pleaded no contest to a misdemeanor and was sentenced to probation and community service. Misconduct charges were dismissed against former Supervisor Roger R. Stanton and current Board Chairman William G. Steiner. An appeals court said that the district attorney could not fairly prosecute Auditor-Controller Steve E. Lewis.

Others have fallen by the wayside--the former chief administrator, Ernie Schneider and former Supervisor Gaddi H. Vasquez, for example. The fallout from the bankruptcy blame game has affected many other careers in county government.

But while many dodged accountability in the process and said they were not adequately informed, there was no doubt about what Raabe knew. In his case, the issue of deliberate deception was squarely on the table. His felony charges included lying to the outside investors about the safety of their deposits and illegally skimming earnings.

Steps have been taken since the bankruptcy to ensure that there is better oversight of county investments. A lot of people are feeling better about Orange County in general because of its economic resilience. But a serious violation cannot be forgotten easily, nor should it be. The Raabe case demonstrates yet again why we need to have in place safeguards for fiscal accountability and why there is a premium on public trust.