, Port Arthur, Texas

June 8, 2012

Audit slams PA Housing Authority practices, more than $5.9 million under scrutiny

Roger Cowles
The Port Arthur News

PORT ARTHUR — An audit by the Regional Inspector General for the U.S. Department of Housing and Urban Development states the management and board of commissioner of the Housing Authority of Port Arthur failed to exercise their fiduciary responsibilities and lists a series of examples of ways the PAHA failed to comply with federal requirements on how funds were handled.

The PAHA, under Executive Director Seledonia Quesada and board chairman the Rev. Ronnie Linden, “failed to ensure that basic controls were in place over the Authority’s financial operations, ensure compliance with procurement requirements, and adequately plan and undertake capital improvements,” the audit, dated June 1, states in its conclusion.

“Meanwhile, they spent lavishly on items that benefited them personally. As a result of their actions, the Authority incurred questioned costs of more than $5.9 million and was in violation of its annual contributions contract. In addition, the Authority’s lack of controls put it at substantial risk for fraud, errors, and improper payments,” the audit states.

Click here to download the full audit report

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