"Emergency Manager Kevyn Orr launched a probe of the city’s pension funds Thursday amid concerns about corruption, spending and management while union officials signaled they would fight proposed benefit cuts in bankruptcy court. The developments set up a showdown among Orr, pension officials and union leaders, all of whom can influence how quickly the city restructures as much as $20 billion in debt or files the largest municipal bankruptcy in U.S. history.
The pension investigation, first revealed by The News on Tuesday, could end with Orr freezing pensions and ousting trustees who oversee the city’s two retirement funds, which are underfunded, embroiled in a federal criminal probe and fending off complaints about investments and lavish travel."
http://www.detroitnews.com/article/2...text|FRONTPAGEThe investigation is a possible precursor to Orr taking control of the pension funds. It also is a response to failed investments involved in a bribery and kickback scandal that has led to federal indictments of five businessmen and former pension officials, including Kwame Kilpatrick's fraternity brother, Jeffrey Beasley, the ex-Detroit treasurer.
The city's pension funds have lost more than $84 million on corrupt investments given to companies during Kilpatrick's tenure, according to federal prosecutors.
"We're concerned about some of the investments not receiving proper vetting and those are investments the pension funds have made into non-traditional securities,” Nowling said. “[[The investments) really have not shown any return since they have been made."
The investigation is expected to conclude in 60 days with a report from the auditor and inspector general. At that time, Orr will know whether he needs to remove the pension funds’ trustees and have state Treasurer Andy Dillon appoint a sole trustee.
Dude is kicking ass and taking names. Between Orr and the US Attorneys Office, Detroit is finally getting cleaned up [[to the extent you can clean it up).
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